Common use of Counterparty Risks Clause in Contracts

Counterparty Risks. Please ensure that you are aware of the identity of the contractual counterparty you are or may be matched with. Often, you will be purchasing an unsecured obligation of such counterparty (as opposed to an obligation of a central clearing corporation as would be the case with exchange traded futures and options) and you should evaluate the comparative credit risk. If your counterparty is the Company, you must note that the Company deals with you at arms length as your counterparty. Unless it agrees in writing or unless otherwise required by law, the Company is not your fiduciary or financial adviser, nor is it willing to accept any fiduciary obligations to you. Any dealing, trading or engagement or transaction with the Company by you could result in a loss to you and a gain to the Company. The Company does not and will not give you any advice whether written or oral other than the representations which will be expressly set forth in the relevant agreement, and any confirmation which may be signed or executed by you after negotiations with the Company as your counterparty. Your net returns from a transaction would also be affected by the transaction costs (i.e. commission, fees and other charges) charged by the Company. These costs must be considered in any risk assessment made by you. You should be aware that the Company and/or its affiliates may from time to time take proprietary positions and/or make markets in instruments identical or economically related to the transactions entered into with you, or may have an investment banking or other commercial relationship with and access to information from the issuer(s) of securities, financial instruments or other interests underlying transactions entered into with you. The Company and/or its affiliates may also undertake proprietary activities, including hedging transactions related to the initiation or termination of a transaction with you, that may affect the market price, rate or other market factor(s) underlying a transaction entered into with you and consequently the value of such transactions.