Common use of Counterparty Risks Clause in Contracts

Counterparty Risks. 29.1. Where CGS-CIMB is the counterparty to the Transactions (without prejudice to CGS- CIMB’s right to hedge its risks with another counterparty), the Client must note that CGS-CIMB deals with the Client at arm’s length as his counterparty in relation to the said Transaction. In such a case, unless CGS-CIMB agrees in writing or unless otherwise required by law, CGS-CIMB is not the Client’s fiduciary, nor is it willing to accept any fiduciary obligations to the Client. Any dealing, trading or engagement or transaction with CGS-CIMB by the Client could result in a loss to the Client and a gain to CGS-CIMB. CGS-CIMB does not and will not give the Client any advice whether written or oral other than any representations expressly set forth in any relevant agreement and any confirmation which may be signed or executed by the Client after negotiations with CGS-CIMB as the counterparty. The Client’s net returns from a transaction would also be affected by the transaction costs (which include, but which are not limited to, commission, fees and other charges) charged by CGS-CIMB. The Client should consider these costs in any risk assessment made by the Client. The Client should be aware that CGS-CIMB is engaged in customer-driven and proprietary activities in many markets. These general activities, as well as CGS-CIMB’s hedging activities which are related to certain Transactions entered into with the Client, may adversely affect the value of such Transactions.