Additional Risk Disclosure Credit Risk of uSMART SG. Where we have borrowed, pledged, re-pledge, hypothecated, re-hypothecated or created security interest over assets in Client’s Account to the extent permitted by law, Client will not retain any proprietary interest in such assets. In the event that uSMART SG suffers an Insolvency Event, Client will become one of uSMART SG’s unsecured creditors with only an unsecured contractual claim against uSMART SG to claim the value of the asset. What the Client will receive in respect of any debt owed to the Client by uSMART SG will depend on the assets available to the creditors of uSMART SG after any insolvency procedures have been completed, and the debt may not be repaid in full, or at all. Credit Risk of uSMART SG’s executing broker/ custodian In respect of Options Contracts traded in overseas markets, uSMART SG may engage third party executing brokers and custodians, which may or may not be a uSmart Group Company, to execute and clear the Trades. uSMART SG will exercise due care in the selection of such brokers and custodians but will not be responsible for any Losses that may be sustained or incurred, whether directly or indirectly, as a result of or in connection with any default (including insolvency) of such executing brokers or custodians. The uSmart Group including uSMART SG shall in no event be liable for any Losses that may be sustained or incurred, whether directly or indirectly, as a result of or in connection with the Agreement or anything whatsoever which may be suffered as a result of any default, insolvency, act or omission of such executing brokers and custodians or any person, firm or company through or with whom transactions are effected for the Account.
