Common use of Concentration Risk Clause in Contracts

Concentration Risk. The value of a Transaction is highly volatile and may be affected by the market, currency, economic, and political conditions of the country to which the currency(ies) of the Transaction relate. This may result in an increased amount of volatility, liquidity, price and foreign exchange risk associated with investments in respect of the currency of one or more countries. If there are any economic and financial difficulties in such country, or if the measures taken by the relevant government or authorities to solve such economic and financial difficulties did not work, this may have significant adverse consequences on your investments in the Transaction and thus adversely affect the overall value of the Transaction. If you have invested all or a substantial amount of your assets in Transactions that are exposed to a small number of currencies, your investment return may be subject to a high concentration risk and you may lose some or all of your investment in the Transactions if the market goes against your view.

Appears in 4 contracts

Samples: Client Agreement for Foreign, Client Agreement for Foreign, Client Agreement for Foreign

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