Risk Disclosure Statement

Risk Disclosure Statement

This brief statement does not disclose all of the risks and other significant aspects of trading in financial markets. In light of the risks, you should undertake such transactions only if you ("Trader" or "Client") fully understand the nature of the contracts (and contractual relationships) into which you are entering and the extent of your exposure to risk. Trading is not suitable for many members of the public. You should carefully consider whether trading is appropriate for you in light of your experience, objectives, financial resources and other relevant circumstances.

1. COMMON RISKS

1.1. General Investment Risk: All investments come with the risk of losing money. Investing involves substantial risks, including complete possible loss of principal plus other losses and may not be suitable for many members of the public. Investments, unlike savings and checking accounts at a bank, are not insured by the government to protect against market losses. Different market instruments carry different types and degrees of risk and you should familiarize yourself with the risks involved in the particular market instruments you intend to invest in.

1.2. Electronic Trading: Trading on an electronic trading system may differ not only from trading in an open-outcry market but also from trading on other electronic trading systems. If you undertake transactions on an electronic trading system, you will be exposed to risks associated with the system including the failure of hardware and software. The result of any system failure may be that your order is either not executed according to your instructions or is not executed at all.

1.3. Suspension or Restriction of Trading and Pricing Relationships: Market conditions (e.g. liquidity) and / or the operation of the rules of certain markets and market makers (e.g. market hours, dealing hours, suspension of trading, etc.) may increase the risk of loss by making it difficult or impossible to effect transactions or liquidate / offset positions.

1.4. Off-Exchange Transactions: Company that you are effecting off-exchange transactions with may often act as your counterparty. It may be difficult or impossible to liquidate an existing position, to assess the value, to determine a fair price or to assess the exposure to risk. For these reasons, these transactions may involve increased risks. Off-exchange transactions are generally less regulated and / or subject to a separate regulatory regime. Before you undertake such transactions, you should familiarize yourself with applicable rules and attendant risks.

1.5. Transactions in Foreign Jurisdictions: Transactions on markets in foreign jurisdictions, including markets formally linked to a domestic market, may expose you to additional risk. Such markets may be subject to regulation, which may offer different or diminished investor protection. Your local regulatory authority will be unable to compel the enforcement of the rules of regulatory authorities or markets in other jurisdictions where your transactions have been effected. You should obtain details about the types of redress available and rules applicable in both your home jurisdiction and other relevant jurisdictions before you start to trade.

1.6. Deposited Cash and Property: You should familiarize yourself with the protections accorded money or other property you deposit for domestic and foreign transactions, particularly in the event of insolvency or bankruptcy. The extent to which you may recover your money or property may be governed by specific foreign legislation or other non-domestic rules. In some jurisdictions, property, which has been specifically identifiable as your own, will be pro-rated in the same manner as cash for purposes of distribution in the event of a shortfall.

1.7. Terms and Conditions of Contracts: You should obtain details about the terms and conditions of the specific market instruments which you are trading and associated obligations (e.g. the margin requirements and the terms of their change, order execution limitations, circumstances under which you may become obligated to make or take delivery, expiration dates and restrictions on the time for exercise, etc.).

1.8. Commission and Other Charges: Before you begin to trade, you should obtain a clear explanation of all commission, fees and other charges for which you will be liable. These charges will affect your net profit (if any) or increase your loss.

1.9. Currency Risks: The profit or loss in transactions in foreign currency-denominated contracts (whether they are traded in your own or another jurisdiction) will be affected by fluctuations in currency rates where there is a need to convert from the currency denomination of the contract to another currency.

1.10. Trading Facilities: Most open-outcry and electronic trading facilities are supported by computer-based component systems for the order-routing, execution, matching, registration or clearing of trades. As with all facilities and systems, they are vulnerable to temporary disruption or failure. Your ability to recover certain losses may be subject to limits on liability imposed by the system provider, the market, the clearing house and / or member firms. Such limits may vary. Therefore, you should obtain a clear explanation of all details in this respect.

1.11. Trading Strategies and Signals: Positive trading signal performance in the past does not guarantee the trading signal will be profitable in the future. There are various reasons why your trading performance is unlikely to be the same as trading performance results presented by a trading signal provider, including but not limited to: varying levels of market liquidity; varying sizes of market spreads; discontinuation of credit lines and trading lines; the imposition of regulatory or governmental authority over buy-side and sell-side market participants including your counterparty; human error; dealing error; varying levels and speeds of connectivity; delays in generating, transmitting, routing, and accepting orders; a lack of following every single trading signal as it is generated; the effects of other positions that you maintain that were not placed in accordance with signals or strategies offered by the trading signal provider; varying margin requirements; varying stop-loss, limit acceptance, and margining-out provisions; public or market holidays; one-time or infrequent exogenous market events; temporary inability of the trading signal provider to generate or transmit trading signals or strategies; lack of trading experience, etc.

2. FOREX-SPECIFIC RISKS

2.1. Sophisticated High-Risk Trading: Because the risk factor is high in Forex trading, only genuine "risk" funds should be used in such trading. If you do not have the extra capital you can afford to lose, you should not trade in the Forex markets. Trading in Forex is suitable only for those sophisticated institutions or sophisticated participants financially able to withstand losses that may substantially exceed the value of margins or deposits.

2.2. Effect of "Leverage" or "Gearing": Transactions in Forex carry a high degree of risk. The amount of initial margin is small relative to the value of the Forex contract so that transactions are "leveraged" or "geared". A relatively small market movement will have a proportionately larger impact on the funds you have deposited or will have to deposit: this may work against you as well as for you. You may sustain a total loss of initial margin funds and any additional funds deposited to maintain your position. If the market moves against your position or margin levels are increased, you may be called upon to pay substantial additional funds immediately or on a very short notice to maintain your position. If you fail to comply with a request for additional funds within the time prescribed, your position may be liquidated at a loss and you will be liable for any resulting deficit.

2.3. Risk-Reducing Orders or Strategies: The placing of certain orders (e.g. "exit-stop", "stop-loss", etc.) which are intended to limit losses to certain amounts may not be effective because market conditions may make it impossible to execute such orders. Strategies using combinations of positions, such as "hedged" and "straddle" positions, may be as risky as taking simple "long" or "short" positions.

3. FUNDS-SPECIFIC RISKS

3.1. Fund May Lose Value: There can be no assurance that a Fund will achieve its investment objectives and past performance should not be seen as a guide to future returns. The value of investments and the income derived may fall as well as rise and investors may not recoup the original amount invested in a Fund. An investment in a Fund may also be affected by any changes in exchange control regulation, tax laws, withholding taxes, international, political and economic developments, and government, economic or monetary policies.

3.2. Interest Rate Risk: A Fund that invests in bonds and other fixed income securities may fall in value if interest rates change. Generally, the prices of debt securities rise when interest rates fall, whilst their prices fall when interest rates rise. Longer term debt securities are usually more sensitive to interest rate changes.

3.3. Credit Risk: A Fund which invests in bonds and other fixed income securities is subject to the risk that issuers may not make payments on such securities. An issuer suffering an adverse change in its financial condition could lower the credit quality of a security, leading to greater price volatility of the security. A lowering of the credit rating of a security may also offset the security's liquidity, making it more difficult to sell. Funds investing in lower quality debt securities are more susceptible to these problems and their value may be more volatile.

3.4. Foreign Exchange Risk and Hedging: Because a Fund's assets and liabilities may be denominated in currencies different to its base currency, the Fund may be affected favorably or unfavorably by exchange control regulations or changes in the exchange rates between the base currency and other currencies. Changes in currency exchange rates may influence the value of a Fund's shares, the dividends or interest earned and the gains and losses realized. Exchange rates between currencies are determined by supply and demand in the currency exchange markets, the international balance of payments, governmental intervention, speculation and other economic and political conditions. If the currency in which a security is denominated appreciates against the base currency, the value of the security will increase. Conversely, a decline in the exchange rate of the currency would adversely affect the value of the security. A Fund may engage in foreign currency transactions in order to hedge against currency exchange risk; however there is no guarantee that hedging or protection will be achieved. This strategy may also limit the Fund from benefiting from the performance of a Fund's securities if the currency in which the securities held by the Fund are denominated rises against the base currency.

3.5. Futures and Options in Funds: Funds may invest in options and futures on securities, indices and interest rates for the purpose of efficient portfolio management. Also, Funds may invest in futures, options or forward foreign exchange contracts to hedge market and currency risks. Transactions in futures carry a high degree of risk. The amount of the initial margin is small relative to the value of the futures contract so that transactions are "leveraged" or "geared". A relatively small market movement will have a proportionately larger impact which may work for or against the investor. The placing of certain orders which are intended to limit losses to certain amounts may not be effective because market conditions may make it impossible to execute such orders. Transactions in options also carry a high degree of risk. Selling ("writing" or "granting") an option generally entails considerably greater risk than purchasing options. Although the premium received by the seller is fixed, the seller may sustain a loss well in excess of that amount. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obliged either to settle the option in cash or to acquire or deliver the underlying investment. If the option is "covered" by the seller holding a corresponding position in the underlying investment or a future on another option, the risk may be reduced.

3.6. Emerging Markets: Economies in Emerging Markets generally are heavily dependent upon international trade and, accordingly, have been and may continue to be affected adversely by trade barriers, exchange controls, managed adjustments in relative currency values and other protectionist measures imposed or negotiated by the countries with which they trade. These economies also have been and may continue to be affected adversely by economic conditions in the countries in which they trade. Because of the special risks associated with investing in Emerging Markets, Funds which invest in such securities should be considered speculative. Investors in such Funds are advised to consider carefully the special risks of investing in emerging market securities. Brokerage commissions, custodial services and other costs relating to investment in Emerging Markets generally are more expensive than those relating to investment in more developed markets. Lack of adequate custodial systems in some markets may prevent investment in a given country or may require a Fund to accept greater custodial risks in order to invest, although the custodian will endeavor to minimize such risks through the appointment of correspondents that are international, reputable and creditworthy financial institutions. In addition, such markets have different settlement and clearance procedures. In certain markets there have been times when settlements have been unable to keep pace with the volume of securities transactions, making it difficult to conduct such transactions. The inability of a Fund to make intended securities purchases due to settlement problems could cause the Fund to miss attractive investment opportunities. Inability to dispose of a portfolio security caused by settlement problems could result either in losses to a Fund due to subsequent declines in value of the portfolio security or, if a Fund has entered into a contract to sell the security, could result in potential liability to the purchaser. The risk also exists that an emergency situation may arise in one or more developing markets as a result of which trading of securities may cease or may be substantially curtailed and prices for a Fund's securities in such markets may not be readily available. Investors should note that changes in the political climate in Emerging Markets may result in significant shifts in the attitude to the taxation of foreign investors. Such changes may result in changes to legislation, the interpretation of legislation, or the granting of foreign investors the benefit of tax exemptions or international tax treaties. The effect of such changes can be retrospective and can (if they occur) have an adverse impact on the investment return of shareholders in any Fund so affected.

3.7. Sector Risk: Funds which concentrate their portfolio in a specific sector may carry a higher degree of risk due to lower diversification and sector-specific risks (e.g. companies in the technology sector are at risk from new technologies and face a high risk of obsolescence as a result of technological advances, etc.). Because these investments are limited to a relatively narrow segment of the economy, the Funds' investments are not as diversified as most funds. This means that these Funds tend to be more volatile than other funds and their portfolio values can increase or decrease more rapidly. The performance of each Fund may differ in direction and degree from that of the overall stock market.

3.8. Small Capitalization: Funds which include smaller capitalization companies, may involve greater risk than Funds investing in larger, more established companies. For example, small capitalization companies may have limited product lines, markets and financial or managerial resources. As a result, price movements in securities of smaller capitalization companies may be more volatile. Transaction costs in securities of smaller capitalization companies can be higher than those of larger capitalization companies and there may be less liquidity.

3.9. Non-Investment Grade Debt: Credit risk is more pronounced for investments in fixed-income securities that are rated below Investment Grade or which are of comparable quality. The risk of default may be greater and the market for these securities may be less active, making it more difficult to sell the securities at reasonable prices, and also making valuation of the securities more difficult. A Fund may incur additional expenses if an issuer defaults and the Fund tries to recover some of its losses in bankruptcy or other similar proceedings.

4. INDEXES AND COMMODITIES-SPECIFIC RISKS

4.1. High-Risk, Leverage and Risk-Reducing: Because the risk factor is high in spot Index and Commodity trading, only genuine "risk" funds should be used in such trading. If you do not have the extra capital you can afford to lose, you should not trade in the spot Index and Commodity markets. Trading in spot Index and Commodity markets is suitable only for those sophisticated institutions or sophisticated participants financially able to withstand losses that may substantially exceed the value of margins or deposits. Transactions in spot Index and Commodity markets carry a high degree of risk. The amount of initial margin is small relative to the value of the spot Index or Commodity contract so that transactions are "leveraged" or "geared". A relatively small market movement will have a proportionately larger impact on the funds you have deposited or will have to deposit: this may work against you as well as for you. You may sustain a total loss of initial margin funds and any additional funds deposited to maintain your position. If the market moves against your position or margin levels are increased, you may be called upon to pay substantial additional funds immediately or on a very short notice to maintain your position. If you fail to comply with a request for additional funds within the time prescribed, your position may be liquidated at a loss and you will be liable for any resulting deficit. The placing of certain orders (e.g. "exit-stop", "stop-loss", etc.) which are intended to limit losses to certain amounts may not be effective because market conditions may make it impossible to execute such orders. Strategies using combinations of positions, such as "hedged" and "straddle" positions, may be as risky as taking simple "long" or "short" positions.

4.2. After-Hours Trading: During regular trading hours, buyers and sellers can trade readily. During after-hours trading, there may be less trading volume, making it more difficult to execute some of your trades. Less trading activity could also mean wider spreads between the bid and ask prices. As a result, you may find it more difficult to get your order executed or to get as favorable a price as you could have during regular market hours. You may also find greater price fluctuations than you would have seen during regular trading hours. News stories announced after-hours may have greater impacts on prices. Prices quoted during after-hours sessions may not reflect the prices quoted during regular hours, either at the end of the regular trading session or upon the opening of regular trading the next business day.

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