Common use of Options Clause in Contracts

Options. 3 Variable Degree of Risk Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize themselves with the type of option (i.e., put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the option to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a future, the purchaser will acquire a futures position with associated liabilities for margin (see the section on Futures above). If the purchased option is out-of-the-money when it expires, you will suffer a total loss of your investment, which will consist of the option premium plus transaction costs. If you are contemplating purchasing out-of-the money options, you should be aware that the chance of such options becoming profitable ordinarily is remote. 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 be liable for additional margin to maintain the position if the market moves unfavourably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a future, the seller will acquire a position in a future with associated liabilities for margin (see the section on Futures above). If the option is "covered" by the seller holding a corresponding position in the underlying asset, in a future or in another option, the risk may be reduced. In case the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.

Options. 3 Variable Degree degree of Risk risk Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize familiarise themselves with the type of option options (i.e., i.e. put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the option options to expire. The exercise of an option options results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a future, the purchaser will acquire a futures position with associated liabilities for margin (see the section Section on Futures above). If the purchased option is out-of-the-money when it expiresoptions expire worthless, you will suffer a total loss of your investment, investment which will consist of the option premium plus transaction costs. If you are contemplating purchasing deep-out-of-the the-money options, you should be aware that the chance of such options becoming profitable ordinarily is remote. 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 be liable for additional margin to maintain the position if the market moves unfavourably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a future, the seller will acquire a position in a future with associated liabilities for margin (see the section Section on Futures above). If the option is "“covered" ” by the seller holding a corresponding position in the underlying asset, in interest or a future or in another option, the risk may be reduced. In case If the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time. Additional Risks Common to Futures and Options Terms and conditions of contracts You should ask the firm with which you deal about the terms and conditions of the specific futures or options with which you are trading and associated obligations (e.g. the circumstances with which you may become obligated to make or take delivery of the underlying interest of a futures contract and, in respect of options, expiration dates and restrictions on the time for exercise). Under certain circumstances the specifications of outstanding contracts (including the exercise price of an option) may be modified by the exchange or clearing house to reflect changes in the underlying interest. Suspension or restriction of trading and pricing relationships Market conditions (e.g. liquidity) and / or the operation of the rules of certain markets (e.g. the suspension of trading in any contract month because of price limits or “circuit breakers”) may increase the risk of loss by making it difficult or impossible to effect transactions or liquidate / offset positions. If you have sold options, this may increase the loss. Further, normal pricing relationships between the underlying interest and the future, and the underlying interest and the option may not exist. This can occur when, for example, the futures contract underlying the option is subject to price limits while the option is not. The absence of an underlying reference price may make it difficult to judge “fair” value. Deposited cash and property You should familiarise yourself with the protections accorded money or other property you deposit for domestic and foreign transactions, particularly in the event of insolvency or bankruptcy of a firm. The extent to which you may recover your money or property may be governed by specific legislation or local rules. In some jurisdictions, property which had 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. 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. Transactions in other jurisdictions Transactions on markets in other jurisdictions, including markets formally linked to a domestic market, may expose you to additional risks. Such markets may be subject to regulation which may offer you different or diminished investor protection. Before you trade you should enquire about any rules relevant to your particular transactions. 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 ask the firm with which you deal for details about the types of redress available in both your home jurisdiction and other relevant jurisdictions before you start to trade. 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. 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; you should ask the firm with which you deal for details in this respect. Off-exchange transactions In some jurisdictions, and only then in restricted circumstances, firms are permitted to effect off-exchange transactions. The firm with which you deal may be acting as your counterparty to the transaction. 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 may be less regulated or subject to a separate regulatory regime. Before you undertake such transactions, you should familiarise yourself with applicable rules and attendant risks.

Options. 3 3. Variable Degree degrees of Risk risk Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize themselves with the type of option options (i.e., i.e. put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the option options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option options is on a futurefutures, the purchaser will acquire a futures position with associated liabilities for margin (see the section on Futures above). If the purchased option is out-of-the-money when it expiresoptions expire worthless, you will suffer a total loss of your investment, investment which will consist of the option options premium plus transaction costs. If you are contemplating purchasing deep-out-of-the the-money options, you should be aware that the chance of such options becoming profitable ordinarily is remote. Selling ("'writing" ' or "'granting"') an option options generally entails entail 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 be liable for additional margin to maintain the position if the market moves unfavourablyunfavorably against him. The seller will also be exposed to the risk of the purchaser exercising the option options and the seller will be obligated to either settle the option options in cash or to acquire or deliver the underlying interest. If the option options is on a futurefutures, the seller will acquire a position in a future futures with associated liabilities for margin (see the section on Futures above). If the option options is "'covered" ' by the seller holding a corresponding position in the underlying asset, in interest or a future futures or in another optionoptions, the risk may be reduced. In case If the option options is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option options premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option options is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.

Options. 3 1.1. Variable Degree of Risk Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize themselves with the type of option (i.e., put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the option to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a future, the purchaser will acquire a futures position with associated liabilities for margin (see the section on Futures above). If the purchased option is out-of-of- the-money when it expires, you will suffer a total loss of your investment, which will consist of the option premium plus transaction costs. If you are contemplating purchasing out-of-the the- money options, you should be aware that the chance of such options becoming profitable ordinarily is remote. 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 be liable for additional margin to maintain the position if the market moves unfavourablyunfavorably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a future, the seller will acquire a position in a future with associated liabilities for margin (see the section on Futures above). If the option is "covered" by the seller holding a corresponding position in the underlying asset, in a future or in another option, the risk may be reduced. In case the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.

Options. 3 Variable Degree of Risk Transactions in options carry a high degree of risk. Purchasers and sellers There are many different types of options should familiarize themselves with different characteristics subject to the type of option (i.e.following condition. Buying options: Buying options involves less risk than selling options because, put or call) which they contemplate trading and if the associated risks. You should calculate the extent to which the value price of the options must increase for your position to become profitableunderlying asset moves against you, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or you can simply allow the option to expirelapse. The exercise of an maximum loss is limited to the premium, plus any commission or other transaction charges. However, if you buy a call option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a future, futures contract and you later exercise the purchaser will acquire a futures position with associated liabilities for margin (see the section on Futures above). If the purchased option is out-of-the-money when it expiresoption, you will suffer a total loss of your investment, which acquire the futures. This will consist of expose you to the option premium plus transaction costs. risks described under "futures" and "contingent liability investment transactions." Writing options: If you are contemplating purchasing out-of-write an option, the money options, you should be aware that the chance of such options becoming profitable ordinarily risk involved is remote. Selling ("writing" or "granting") an option generally entails considerably greater risk than purchasing buying options. Although the premium received by the seller is fixed, the seller You may sustain be liable for margin to maintain your position and a loss may be sustained well in excess of that amountthe premium received. The seller will be liable for additional margin By writing an option, you accept a legal obligation to maintain the position if the market moves unfavourably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash purchase or to acquire or deliver sell the underlying interest. If asset if the option is on a futureexercised against you, however far the seller will acquire a position in a future with associated liabilities for margin (see market price has moved away from the section on Futures above)exercise price. If the option is "covered" by the seller holding a corresponding position in you already own the underlying asset, in a future or in another option, asset which you have contracted to sell (when the options will be known as "covered call options") the risk may be is reduced. In case If you do not own the option is not covered, underlying asset ("uncovered call options") the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment Only experienced persons should contemplate writing uncovered options, and then only after securing full details of the applicable conditions and potential risk exposure. Traditional options: Certain London Stock Exchange member firms under special exchange rules write a particular type of option premiumcalled a "traditional option." These may involve greater risk than other options. Two- way prices are not usually quoted and there is no exchange market on which to close out an open position or to effect an equal and opposite transaction to reverse an open position. It may be difficult to assess its value or for the seller of such an option to manage his exposure to risk. Certain options markets operate on a margined basis, exposing under which buyers do not pay the purchaser full premium on their option at the time they purchase it. In this situation you may subsequently be called upon to liability for pay margin payments not exceeding on the amount option up to the level of the your premium. The purchaser is still subject If you fail to do so as required, your position may be closed or liquidated in the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that timesame way as a futures position.

Options. 3 Variable Degree An option is a contractual agreement between two parties to give the holder the right, but not the obligation, to buy or sell a specific amount of Risk stock, commodity, currency, index or debt at a specified price during a specific period of time. Transactions in options carry a high degree of risk, are subject to margin requirements and bring about financial commitments and liabilities additional to the cost of acquisition. Purchasers and sellers of options should familiarize familiarise themselves with the type of option (i.e., i.e. put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the option options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a future, the purchaser will acquire a futures position with associated liabilities for margin (see the section on Futures above). If You should be aware that options typically have a limited life, and therefore purchased options may expire worthless if the purchased option is out-of-the-money when it expiresunderlying asset does not perform as expected, in which case you will suffer a total loss of your investment, investment which will consist of the option premium plus transaction costs. If you are contemplating purchasing deep-out-of-the the-money options, you should be aware that the chance of such options becoming profitable ordinarily is remote. Selling ("“writing" ” or "“granting"”) an on 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 may be liable for additional margin to maintain the position if the market moves unfavourablyunfavorably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a future, the seller will acquire a position in a future with associated liabilities for or margin (see the section on Futures above). If the option is "“covered" ” by the seller holding a corresponding position in the underlying asset, in interest or a future or in another option, the risk may be reduced. In case If the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at the time. Covered Warrants Covered warrants have similar characteristics to an option and they give the investor the right but not the obligation to buy (in the case of a call warrant) or to sell (in the case of a put warrant) an underlying asset at a predetermined price (known as the strike or exercise price) on or before a predetermined date (known as the expiry or exercise date). The cost of a warrant is the premium plus transaction costs. A covered warrant which has no leverage is often referred to as a certificate. You should be aware that timeif a covered warrant does not perform as expected you could lose the whole of your investment. Investors can be subject to large / potentially unlimited liability depending on the type of warrant transaction they enter into. This may require the investor to make margin payments. General risks in relation to financial products Market Availability Market conditions (e.g. illiquidity) and/or the operation of the rules of certain markets may increase the risk of loss by making it difficult or impossible to effect transactions. Transactions in other jurisdictions Transactions on markets in other 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. Before you trade you should enquire about any rules relevant to your particular transactions. 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 ask the firm with which you deal for details about the types of redress available in both your home jurisdiction and other relevant jurisdictions before your start to trade.

Options. 3 2.1 Variable Degree degree of Risk risk Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize themselves with the type of option (i.e., i.e. put or call) which they contemplate trading and the associated risks. You The Client should calculate the extent to which the value of the options must increase for your its position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the option options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a futurefutures contract, the purchaser will acquire a futures position with associated liabilities for margin (see the section on Futures above). If the purchased option is out-of-the-money when it expiresoptions expire worthless, you the Client will suffer a total loss of your investment, its investment which will consist of the option premium plus transaction costs. If you are the Client is contemplating purchasing deep-out-of-the money options, you it should be aware that the chance of such options becoming profitable ordinarily is remote. 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 be liable for additional margin to maintain the position if the market moves unfavourably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a futurefutures contract, the seller will acquire a position in a future futures contract with associated liabilities for margin (see the section on Futures above). If the option is "“covered" ” by the seller holding a corresponding position in the underlying asset, in interest or a future futures contract or in another option, the risk may be reduced. In case If the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.

Options. 3 1.3 Variable Degree of Risk Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize themselves with the type of option (i.e., put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the option to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a future, the purchaser will acquire a futures position with associated liabilities for margin (see the section on Futures above). If the purchased option is out-of-the-money when it expires, you will suffer a total loss of your investment, which will consist of the option premium plus transaction costs. If you are contemplating purchasing out-of-the the- money options, you should be aware that the chance of such options becoming profitable ordinarily is remote. 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 be liable for additional margin to maintain the position if the market moves unfavourably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a future, the seller will acquire a position in a future with associated liabilities for margin (see the section on Futures above). If the option is "covered" by the seller holding a corresponding position in the underlying asset, in a future or in another option, the risk may be reduced. In case the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.

Options. 3 Variable Degree degree of Risk risk Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize familiarise themselves with the type of option (i.e., i.e. put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the option options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a futurefutures contract, the purchaser will acquire a futures position with associated liabilities for margin (see the section on Futures above). If the purchased option is out-of-the-money when it expiresoptions expire worthless, you will suffer a total loss of your investment, investment which will consist of the option premium plus transaction costs. If you are contemplating purchasing deep-out-of-the the-money options, you should be aware that the chance of such options becoming profitable ordinarily is remote. 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 be liable for additional margin to maintain the position if the market moves unfavourably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a futurefutures contract, the seller will acquire a position in a future futures contract with associated liabilities for margin (see the section on Futures above). If the option is "“covered" ” by the seller holding a corresponding position in the underlying asset, in interest or a future futures contract or in another option, the risk may be reduced. In case If the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.

Options. 3 3. Variable Degree of Risk Risk: Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize themselves with the type of option (i.e., i.e. put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the option options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interestinterest with associated liabilities for margin. If the option contract is on a futurefutures contract, the purchaser will acquire a futures position with associated liabilities for margin (see the section on Futures above). If the purchased option is out-of-the-money when it expiresoptions expire worthless, you will suffer a total loss of your investment, investment which will consist of the option premium plus transaction costs. If you are contemplating purchasing deep out-of-the the-money options, you should be aware that the chance of such options becoming profitable ordinarily is remote. 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 be liable for additional margin to maintain the position if the market moves unfavourably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated either to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a future, the seller will acquire a position in a future with associated liabilities for margin (see the section on Futures above). If the option is "“covered" ” by the seller holding a corresponding position in the underlying asset, in a future or in another optionposition, the risk may be reduced. In case If the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, premium exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.

Options. 3 Variable Degree An option gives the buyer the right but not the obligation to acquire an underlying security or other asset at a future date and at a price that has already been agreed or that is determinable in accordance with a pre-agreed mechanism. Buying options involves less risk than selling options because, if the price of Risk Transactions the underlying asset moves against you, you can simply allow the option to lapse. The maximum Loss is limited to the premium, plus any commission or other transaction charges. Certain options markets operate on a margined basis, under which buyers do not pay the full premium on their option at the time they purchase it. In this situation you may subsequently be called upon to pay Xxxxxx on the option up to the level of your premium. If you fail to do so as required, your position may be closed or liquidated in options carry the same way as a high degree futures position. The insolvency or default of riskthe counterparty or any of the brokers involved with your option transaction may lead to positions being liquidated or closed out without your consent. Purchasers In certain circumstances, you may not get back the actual assets which you lodged as collateral and sellers of options should familiarize themselves with you may have to accept any available payments in cash. If you write an option, the type of option (i.e., put or call) which they contemplate trading and the associated risksrisk involved is considerably greater than buying options. You should calculate may be liable for Margin to maintain your position and a loss may be sustained well in excess of the extent premium received. By writing an option, you accept a legal obligation to purchase or sell the underlying asset if the option is exercised against you, however far the market price has moved away from the exercise price. If you already own the underlying asset which you have contracted to sell (when the options will be known as 'covered call options') the risk is reduced. If you do not own the underlying asset ('uncovered call options') the risk can be unlimited. By writing a put option, you accept a legal obligation to purchase or sell the underlying asset if the option is exercised against you, however far the market price has moved away from the exercise price. The price at which the option is exercised might be significantly higher than the prevailing market price. This could lead to substantial losses. Losses can arise quickly and can exceed your initial deposit amount. If the market moves against your position you might be required to provide additional funds to keep your position open. The position might be closed at a loss if calls for funds are not met. The performance of an option that you have written depends primarily on how the underlying asset performs during the life of the option. The value of the option can therefore be affected by any risk factors that can affect the price of the underlying asset to which the option relates. A relatively small movement in the price of the underlying asset can result in a disproportionately large movement, unfavourable or favourable, in the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costsoption. The purchaser prices of options may offset or exercise the options or allow the option to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interestcan therefore be volatile. If the price of the underlying asset moves against you the option will lapse without value. In this case you will incur a loss equal to your premium plus any transaction charges. Even if a written option transaction is not margined, it may still carry an obligation to make further payments in certain circumstances over and above any amount paid when we (on your behalf) entered into the contract. Certain London Stock Exchange member firms under special exchange rules write a future, particular type of option called a 'traditional option'. These may involve greater risk than other options. Two-way prices are not usually quoted and there is no exchange market on which to close out an open position or to effect an equal and opposite transaction to reverse an open position. It may be difficult to assess its value or for the purchaser will acquire a futures position with associated liabilities for margin (see the section seller of such an option to manage its exposure to risk. Options may be executed on Futures above). If the purchased option is out-ofan investment exchange or on an over-the-money when it expirescounter (“OTC”) basis. While some OTC markets are highly liquid, you will suffer a total loss of your investment, which will consist of the option premium plus transaction costs. If you are contemplating purchasing out-of-the money options, you should be aware that the chance of such options becoming profitable ordinarily is remote. Selling ("writing" or "granting") an option generally entails considerably transactions in OTC derivatives may involve greater risk than purchasing optionsinvesting in on-exchange derivatives because there is no exchange market on which to close out an open position. Although It may be impossible to liquidate an existing position, to assess the premium received by value of the seller is fixedposition arising from an OTC transaction or to assess the exposure to risk. Bid prices and offer prices need not be quoted, the seller may sustain a loss well in excess of that amount. The seller and, even where they are, they will be liable for additional margin to maintain the position if the market moves unfavourably. The seller will also be exposed to the risk of the purchaser exercising the option established by dealers in these instruments and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a future, the seller will acquire a position in a future with associated liabilities for margin (see the section on Futures above). If the option is "covered" by the seller holding a corresponding position in the underlying asset, in a future or in another option, the risk consequently it may be reduced. In case the option difficult to establish what is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that timea fair price.

Options. 3 (i) Variable Degree of Risk Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize familiarise themselves with the type of option options (i.e., i.e. put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must would have to increase for your position to become profitable, taking into account the premium paid and all transaction costs. The purchaser of options may offset its position by trading in the market or exercise the options or allow the option options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a futurefutures contract or leveraged foreign exchange transaction, the purchaser will have to acquire a futures position or leveraged foreign exchange position, as the case may be, with associated liabilities for margin (see the section on Futures and Leveraged Foreign Exchange Trading above). If the purchased option is out-of-the-money when it expiresoptions expire worthless, you will suffer a total loss of your investment, investment which will consist of the option premium paid plus transaction costs. If you are contemplating purchasing deep-out-of-the the-money options, you should be aware that that, ordinarily, the chance of such options becoming profitable ordinarily is remote. 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 amountthe amount of premium received. The seller will be liable for to deposit additional margin to maintain the position if the market moves unfavourably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a futurefutures contract or a leveraged foreign exchange transaction, the seller will acquire a position in a future futures or leveraged foreign exchange position, as the case may be, with associated liabilities for margin (see the section on Futures and Leveraged Foreign Exchange Trading above). If the option is "‘covered" ’ by the seller holding a corresponding position in the underlying assetfutures contract, in a future leveraged foreign exchange transaction or in another option, the risk may be reduced. In case If the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing limiting the liability of the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.

Options. 3 Variable Degree degree of Risk risk Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize familiarise themselves with the type of option (i.e., i.e. put or call) which they contemplate trading and the associated risks. Some options may only be exercised on an expiry day (European-Style Exercise) and other options may be exercised at any time before expiration (American-Style Exercise). You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the option options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a futurefutures contract, the purchaser will acquire a futures position with associated liabilities for margin (see the section on Futures above)margin. If the purchased option is out-of-the-money when it expiresoptions expire worthless, you understand that you will suffer a total loss of your investment, investment which will consist of the option premium plus transaction costs. If you are contemplating purchasing deep-out-of-the the-money options, you should be aware that the chance of such options becoming profitable ordinarily is remote. Under some circumstances it may be difficult to trade the option due to lack of liquidity in the market. You acknowledge that SHKFX has no obligation either to exercise a valuable option in the absence of your instruction, or to give to you prior notice of the expiration date of the option. 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 be liable for additional margin to maintain the position if the market moves unfavourablyunfavorably. The seller will also be exposed to the risk of the purchaser exercising the option option, and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a futurefutures contract, the seller will acquire a position in a future futures contract with associated liabilities for margin (see the section on Futures above)margin. If the option is "“covered" ” by the seller holding a corresponding position in the underlying asset, in interest or a future futures contract or in another option, the risk may be reduced. In case If the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.

Options. 3 (i) Variable Degree of Risk Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize familiarise themselves with the type of option options (i.e., i.e. put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must would have to increase for your position to become profitable, taking into account the premium paid and all transaction costs. The purchaser of options may offset its position by trading in the market or exercise the options or allow the option options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a futurefutures contract or leveraged foreign exchange transaction, the purchaser will have to acquire a futures position or leveraged foreign exchange position, as the case may be, with associated liabilities for margin (see the section on Futures and Leveraged Foreign Exchange Trading above). If the purchased option is out-of-the-money when it expiresoptions expire worthless, you will suffer a total loss of your investment, investment which will consist of the option premium paid plus transaction costs. If you are contemplating purchasing deep-out-of-the the-money options, you should be aware that that, ordinarily, the chance of such options becoming profitable ordinarily is remote. 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 amountthe amount of premium received. The seller will be liable for to deposit additional margin to maintain the position if the market moves unfavourably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a futurefutures contract or a leveraged foreign exchange transaction, the seller will acquire a position in a future futures or leveraged foreign exchange position, as the case may be, with associated liabilities for margin (see the section on Futures and Leveraged Foreign Exchange Trading above). If the option is "‘covered" ’ by the seller holding a corresponding position in the underlying assetfutures contract, in a future leveraged foreign exchange transaction or in another option, the risk may be reduced. In case If the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing limiting the liability of the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.

Options. 3 Variable Degree of Risk VARIABLE DEGREE OF RISK Transactions in options Options carry a high degree of risk. Purchasers and sellers of options Options should familiarize themselves with the type of option Option (i.e., i.e. put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options Options must increase for your position to become profitable, taking into account Account the premium and all transaction costs. The purchaser of options Options may offset or exercise the options Options or allow the option Options to expire. The exercise of an option Option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option Option is on a futureFuture, the purchaser will acquire a futures Futures position with associated liabilities for margin Margin (see the section on Futures above). If the purchased option is out-of-the-money when it expiresOptions expire worthless, you will suffer a total loss of your investment, investment which will consist of the option Option premium plus transaction costs. If you are contemplating purchasing deep-out-of-the the-money optionsOptions, you should be aware that the chance of such options Options becoming profitable ordinarily is remote. Selling ("“writing" ” or "“granting"”) an option Option generally entails considerably greater risk than purchasing optionsOptions. Although the premium received by the seller is fixed, the seller may sustain a loss well in excess of that amount. The seller will be liable for additional margin Margin to maintain the position if the market moves unfavourably. The seller will also be exposed to the risk of the purchaser exercising the option Option and the seller will be obligated to either settle the option Option in cash or to acquire or deliver the underlying interest. If the option Option is on a futureFuture, the seller will acquire a position in a future Future with associated liabilities for margin Xxxxxx (see the section on Futures above). If the option Option is "“covered" ” by the seller holding a corresponding position in the underlying asset, in interest or a future Future or in another optionOption, the risk may be reduced. In case If the option Option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option Option premium, exposing the purchaser to liability for margin Margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option Option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.

Options. 3 Variable Degree of Risk 3. VARIABLE DEGREE OF RISK Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize themselves with the type of option (i.e., Le. put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the option options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a future, the purchaser will acquire a futures position with associated liabilities for margin (see the section on Futures above). If the purchased option is out-of-the-money when it expiresoptions expire worthless, you will suffer a total loss of your investment, investment which will consist of the option premium plus transaction costs. If you are contemplating purchasing deep out-of-the the-money options, you should be aware that the chance of such options becoming profitable ordinarily is remote. Selling ("writing" 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 be liable for additional margin to maintain the position if the market moves unfavourablyunfavorably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a future, the seller will acquire a position in a future with associated liabilities for margin (see the section on Futures above). If the option position is "covered" covered by the seller holding a corresponding position in the underlying asset, in interest or a future or in another option, the risk may be reduced. In case If the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.. Additional risks common to futures and options

Options. 3 1. Variable Degree degree of Risk risk Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize familiarise themselves with the type of option (i.e., i.e. put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the option options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a futurefutures contract, the purchaser will acquire a futures position with associated liabilities for margin (see the section on Futures above). If the purchased option is out-of-the-money when it expiresoptions expire worthless, you will suffer a total loss of your investment, investment which will consist of the option premium plus transaction costs. If you are contemplating purchasing deep-out-of-the the-money options, you should be aware that the chance of such options becoming profitable ordinarily is remote. 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 be liable for additional margin to maintain the position if the market moves unfavourably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a futurefutures contract, the seller will acquire a position in a future futures contract with associated liabilities for margin (see the section on Futures above). If the option is "covered" covered by the seller holding a corresponding position in the underlying asset, in interest or a future futures contract or in another option, the risk may be reduced. In case If the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.

Options. 3 Variable Degree degree of Risk risk Transactions in options carry a high degree of risk. Purchasers Purchases and sellers of options should familiarize themselves with the type of option (i.e., i.e. put or call) which they contemplate trading and the associated risks. You The Customer should calculate the extent to which the value of the options must increase for your the Customer's position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the option options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a futurefutures contract, the purchaser will acquire a futures position with associated liabilities for margin (see the section paragraph on Futures above). If the purchased option is out-of-the-money when it expiresoptions expire worthless, you the Customer will suffer a total loss of your investment, the Customer's investment which will consist of the option premium plus transaction costs. If you are the Customer is not contemplating purchasing deep-out-of-the money options, you the Customer should be aware that the chance of such options becoming profitable ordinarily is remote. 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 be liable for additional margin to maintain the position if the market moves unfavourably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a futurefutures contract, the seller will acquire a position in a future futures contract with associated liabilities for margin (see the section paragraph on Futures above). If the option is "covered" by the seller holding a corresponding position in the underlying asset, in interest or a future futures contract or in another option, the risk may be reduced. In case If the option is not covered, the risk of loss can be unlimited. Certain exchanges exchange in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.

Options. 3 Variable Degree degree of Risk risk Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize familiarise themselves with the type of option (i.e., i.e. put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the option options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a futurefutures contract, the purchaser will acquire a futures position with associated liabilities for margin (see the section on Futures above). If the purchased option is out-of-the-money when it expiresoptions expire worthless, you will suffer a total loss of your investment, investment which will consist of the option premium plus transaction costs. If you are contemplating purchasing deep-out-of-the the-money options, you should be aware that the chance of such options becoming profitable ordinarily is remote. 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 be liable for additional margin to maintain the position if the market moves unfavourably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a futurefutures contract, the seller will acquire a position in a future futures contract with associated liabilities for margin (see the section on Futures above). If the option is "“covered" ” by the seller holding a corresponding position in the underlying asset, in interest or a future futures contract or in another option, the risk may be reduced. In case If the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time. RISKS COMMON to FUTURES and OPTIONS 4 Terms and conditions of contracts You should ask the firm with which you deal about the terms and conditions of the specific futures or options which you are trading and associated obligations (e.g. the circumstances under which you may become obliged to make or take delivery of the underlying interest of a futures contract and, in respect of options, expiration dates and restrictions on the time for exercise). Under certain circumstances the specifications of outstanding contracts (including the exercise price of an option) may be modified by the exchange or clearing house to reflect changes in the underlying interest.

Options. 3 Variable Degree degree of Risk risk Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize familiarise themselves with the type of option (i.e., i.e. put or call) which they contemplate trading and the associated risks. Some options may only be exercised on an expiry day (European-Style Exercise) and other options may be exercised at any time before expiration (American-Style Exercise). You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the option options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a futurefutures contract, the purchaser will acquire a futures position with associated liabilities for margin (please see the section on Futures “Futures” above). If the purchased option is out-of-the-money when it expiresoptions expire worthless, you understand that you will suffer a total loss of your investment, investment which will consist of the option premium plus transaction costs. If you are contemplating purchasing deep-out-of-the the-money options, you should be aware that the chance of such options becoming profitable ordinarily is remote. Under some circumstances it may be difficult to trade the option due to lack of liquidity in the market. You acknowledge that SHKCOM has no obligation either to exercise a valuable option in the absence of your instruction, or to give to you prior notice of the expiration date of the option. 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 be liable for additional margin to maintain the position if the market moves unfavourablyunfavorably. The seller will also be exposed to the risk of the purchaser exercising the option option, and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a futurefutures contract, the seller will acquire a position in a future futures contract with associated liabilities for margin (please see the section on Futures “Futures” above). If the option is "“covered" ” by the seller holding a corresponding position in the underlying asset, in interest or a future futures contract or in another option, the risk may be reduced. In case If the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.

Options. 3 Variable Degree An option is a contractual agreement between two parties to give the holder the right, but not the obligation, to buy or sell a specific amount of Risk stock, commodity, currency, index or debt at a specified price during a specific period of time. Transactions in options carry a high degree of risk, are subject to margin requirements and bring about financial commitments and liabilities additional to the cost of acquisition. Purchasers and sellers of options should familiarize familiarise themselves with the type of option (i.e., i.e. put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the option options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a future, the purchaser will acquire a futures position with associated liabilities for margin (see the section on Futures above). If You should be aware that options typically have a limited life, and therefore purchased options may expire worthless if the purchased option is out-of-the-money when it expiresunderlying asset does not perform as expected, in which case you will suffer a total loss of your investment, investment which will consist of the option premium plus transaction costs. If you are contemplating purchasing deep-out-of-the the-money options, you should be aware that the chance of such options becoming profitable ordinarily is remote. Selling ("“writing" ” or "“granting"”) an on 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 may be liable for additional margin to maintain the position if the market moves unfavourablyunfavorably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a future, the seller will acquire a position in a future with associated liabilities for or margin (see the section on Futures above). If the option is "“covered" ” by the seller holding a corresponding position in the underlying asset, in interest or a future or in another option, the risk may be reduced. In case If the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at the time. Covered Warrants Covered warrants have similar characteristics to an option and they give the investor the right but not the obligation to buy (in the case of a call warrant) or to sell (in the case of a put warrant) an underlying asset at a predetermined price (known as the strike or exercise price) on or before a predetermined date (known as the expiry or exercise date). The cost of a warrant is the premium plus transaction costs. A covered warrant which has no leverage is often referred to as a certificate. You should be aware that timeif a covered warrant does not perform as expected you could lose the whole of your investment. Investors can be subject to large / potentially unlimited liability depending on the type of warrant transaction they enter into. This may require the investor to make margin payments. Additional Futures and Options risks: Terms and conditions of contracts – Futures and Options You should ask the firm with which you deal about the terms and conditions of the specific futures or options which you are trading and associated obligations (e.g. the circumstances under which you may become obligated to make or take delivery of the underlying interest of a futures contract and, in respect of options, expiration dates and restrictions on the time for exercise). Under certain circumstances the specifications of outstanding contracts (including the exercise price of an option) may be modified by the exchange or clearing house to reflect changes in the underlying interest. Suspension or restriction of trading and pricing relationships – Futures and Options Market conditions (e.g. illiquidity) and/or the operation of the rules of certain markets (e.g. the suspension of trading in any contract or contract month because of price limits or “circuit breakers”) may increase the risk of loss by making it difficult or impossible to effect transactions or liquidate/offset positions. If you have sold options, this may increase the risk of loss. Further normal pricing relationships between the underlying interest and the future and the underlying interest and the option may not exist. This can occur when, for example, the futures contract underlying the option is subject to price limits while the option is not. The absence of an underlying reference price may make it difficult to judge “fair” value. Pershing Bank Details All clients must quote their account number with Xxxxxx Xxxxxxxxxx Ireland Ltd along with their name. Euro Bank Name: Ulster Bank Swift Code: XXXXXX0X Sort Code: 98-50-10 A/C No: 31911845 IBAN: XX00XXXX00000000000000 A/C Name: Pershing Securities International Limited S52 Hub Account GBP Bank Name: Royal Bank of Scotland Swift Code: XXXXXX0X Sort Code: 16-04-00 A/C No: 20223091 IBAN: XX00XXXX00000000000000 A/C Name: Pershing Securities International Limited Client Hub Account USD Bank Name: Citibank New York Swift Code: XXXXXX00 ABA No 000000000 A/C No: 36828053 A/C Name: Pershing Securities International Limited Client Account R DUBLIN: 75 St. Stephen’s Green, Dublin 2, Ireland. Tel : +000 0 000 0000. Fax : +000 0 000 0000/+000 0 000 0000 CORK: 00 Xxxxx Xxxx, Xxxx. Tel: +000 00 000 0000. LIMERICK: Theatre Court, Lower Mallow Street, Limerick. Tel: +000 00 000000. email : xxxxxxx@xxxxxx.xxx web : xxx.xxxxxxxxxxxxxxxx.xx Cantor Xxxxxxxxxx Ireland Ltd is regulated by the Central Bank of Ireland. Cantor Xxxxxxxxxx Ireland Ltd is a member firm of the Irish Stock Exchange and the London Stock Exchange.

Options. 3 (a) Variable Degree Degrees of Risk Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize themselves with the type of option (i.e., put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account Account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the option options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a future, the purchaser will acquire a futures position with associated liabilities for margin (see the section on Futures above). If the purchased option is out-of-the-money when it expiresoptions expire worthless, you will suffer a total loss of your investment, investment which will consist of the option premium plus transaction costs. If you are contemplating purchasing deep-out-of-the the-money options, you should be aware that the chance of such options becoming profitable ordinarily profitable, ordinarily, is remote. 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 be liable for additional margin to maintain the position if the market moves unfavourablyunfavorably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a future, the seller will acquire a position in a future with associated liabilities for margin (see the section on Futures above). If the option is "covered" by the seller holding a corresponding position in the underlying asset, in interest or a future or in another option, the risk may be reduced. In case If the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.

Options. 3 3. Variable Degree degree of Risk risk Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize familiarise themselves with the type of option (i.e., i.e. put or call) which they contemplate trading and the associated risks. risk s. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options opt ions or allow the option options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a futurefutures contract, the purchaser will acquire a futures position with associated liabilities for margin (see the section on Futures above). If the purchased option is out-of-the-money when it expiresoptions expire worthless, you will suffer a total loss of your investment, investment which will consist of the option premium plus transaction costs. If you are contemplating purchasing deep-out-of-the the-money options, you should be aware that the chance of such options becoming profitable ordinarily is remote. 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 be liable for additional margin to maintain the position if the market moves unfavourably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a futurefutures contract, the seller will acquire a position in a future futures contract with associated liabilities for margin (see the section on Futures above). If lf the option is "“covered" ” by the seller holding a corresponding position in the underlying asset, in interest or a future futures contract or in another option, the risk may be reduced. In case If the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.

Options. 3 (i) Variable Degree of Risk Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize familiarise themselves with the type of option (i.e., i.e. put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must would have to increase for your position to become profitable, taking into account the premium paid and all transaction costs. The purchaser of options may offset its position by trading in the market or exercise the options or allow the option options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a futurefutures contract or leveraged foreign exchange transaction, the purchaser will have to acquire a futures position or a leveraged foreign exchange position, as the case may be, with associated liabilities for margin (see the section on Futures and Leveraged Foreign Exchange Trading above). If the purchased option is out-of-the-money when it expiresoptions expire worthless, you will suffer a total loss of your investment, investment which will consist of the option premium paid plus transaction costs. If you are contemplating purchasing deep-out-of-the the-money options, you should be aware that that, ordinarily, the chance change of such options becoming profitable ordinarily is remote. 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 amountthe amount of premium received. The seller will be liable for to deposit additional margin to maintain the position if the market moves unfavourably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a futurefutures contract or a leveraged foreign exchange transaction, the seller will acquire a position in futures or a future leverage foreign exchange position, as the case may be, with associated liabilities for margin (see the section on Futures and Leveraged Foreign Exchange Trading above). If the option is "‘covered" ’ by the seller holding a corresponding position in the underlying assetfutures contract, in a future leveraged foreign exchange transaction or in another option, the risk may be reduced. In case If the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing limiting the liability of the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.

Options. 3 3. Variable Degree degree of Risk risk Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize themselves with the type of option (i.e., put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the option options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a future, the purchaser will acquire a futures position with associated liabilities for margin (see the section on Futures above). If the purchased option is out-of-the-money when it expiresoptions expire worthless, you will suffer a total loss of your investment, which will consist of the option premium plus transaction costs. If you are contemplating purchasing deep-out-of-the the-money options, you should be aware that the chance of such options becoming profitable ordinarily is remote. 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 be liable for additional margin to maintain the position if the market moves unfavourablyunfavorably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a future, the seller will acquire a position in a future with associated liabilities for margin (see the section on Futures above). If the option position is "‘covered" ’ by the seller holding a corresponding position in the underlying asset, in interest or a future or in another option, the risk may be reduced. In case If the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.. Additional risks common to futures and options

Options. 3 4. Variable Degree degree of Risk risk Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize familiarise themselves with the type of option (i.e., i.e. put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the option options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a futurefutures contract, the purchaser will acquire a futures position with associated liabilities for margin (see the section on Futures above). If the purchased option is out-of-the-money when it expiresoptions expire worthless, you will suffer a total loss of your investment, investment which will consist of the option premium plus transaction costs. If you are contemplating purchasing deep-out-of-the the-money options, you should be aware that the chance of such options becoming profitable ordinarily is remote. 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 be liable for additional margin to maintain the position if the market moves unfavourably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a futurefutures contract, the seller will acquire a position in a future futures contract with associated liabilities for margin (see the section on Futures above). If the option is "covered" by the seller holding a corresponding position in the underlying asset, in interest or a future futures contract or in another option, the risk may be reduced. In case If the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.

Options. 3 3. Variable Degree degree of Risk risk Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize themselves with the type of option (i.e., i.e. put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the option options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a future, the purchaser will acquire a futures position with associated liabilities for margin (see the section on Futures above). If the purchased option is out-of-the-money when it expiresoptions expire worthless, you will suffer a total loss of your investment, investment which will consist of the option premium plus transaction costs. If you are contemplating purchasing deep-out-of-the the-money options, you should be aware that the chance of such options becoming profitable ordinarily is remote. 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 be liable for additional margin to maintain the position if the market moves unfavourablyunfavorably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a future, the seller will acquire a position in a future with associated liabilities for margin (see the section on Futures above). If the option is "“covered" ” by the seller holding a corresponding position in the underlying asset, in interest or a future or in another option, the risk may be reduced. In case If the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.

Options. 3 3. Variable Degree of Risk Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize familiarise themselves with the type of option (i.e., i.e. put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the option options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a futurefutures contract, the purchaser will acquire a futures position with associated liabilities for margin (see the section on Futures above). If the purchased option is out-of-the-money when it expiresoptions expire worthless, you will suffer a total loss of your investment, investment which will consist of the option premium plus transaction costs. If you are contemplating purchasing deep-out-of-the the-money options, you should be aware that the chance of such options becoming profitable ordinarily is remote. 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 the amount. The seller will be liable for additional margin to maintain the position if the market moves unfavourably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a futurefutures, the seller will acquire a position in a future futures with associated liabilities for margin (see the section on Futures above). If the option is "“covered" ” by the seller holding a corresponding position in the underlying asset, in interest or a future futures or in another option, the risk may be reduced. In case If the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.. ADDITIONAL RISKS COMMON TO FUTURES AND OPTIONS

Options. 3 Variable Degree of Risk Transactions An option gives the buyer the right but not the obligation to acquire an underlying security or other asset at a future date and at a price that has already been agreed or that is determinable in accordance with a pre-agreed mechanism. Buying options carry a high degree of risk. Purchasers and sellers of involves less risk than selling options should familiarize themselves with because, if the type of option (i.e., put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value price of the options must increase for your position to become profitableunderlying asset moves against you, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or you can simply allow the option to expirelapse. The exercise maximum Loss is limited to the premium, plus any commission or other transaction charges. Certain options markets operate on a margined basis, under which buyers do not pay the full premium on their option at the time they purchase it. In this situation you may subsequently be called upon to pay Margin on the option up to the level of an option results either in a cash settlement your premium. If you fail to do so as required, your position may be closed or liquidated in the purchaser acquiring same way as a futures position. The insolvency or delivering default of the counterparty or any of the brokers involved with your option transaction may lead to positions being liquidated or closed out without your consent. In certain circumstances, you may not get back the actual assets which you lodged as collateral and you may have to accept any available payments in cash. If you write an option, the risk involved is considerably greater than buying options. You may be liable for Margin to maintain your position and a loss may be sustained well in excess of the premium received. By writing an option, you accept a legal obligation to purchase or sell the underlying interestasset if the option is exercised against you, however far the market price has moved away from the exercise price. If you already own the underlying asset which you have contracted to sell (when the options will be known as 'covered call options') the risk is reduced. If you do not own the underlying asset ('uncovered call options') the risk can be unlimited. By writing a covered call option, you accept a legal obligation to sell the underlying asset if the option is exercised against you.If the option is exercised against you, you will be obliged to transact at a rate that is less favourable for you compared to the prevailing market price. By writing a put option, you accept a legal obligation to buy the underlying asset if the option is exercised against you. If the option is exercised against you, you will be obliged to transact at a rate that is less favourable for you compared to the prevailing market price. This could lead to substantial losses. Losses can arise quickly and can exceed your initial deposit amount; you might be required to provide additional funds to keep your position open. The position might be closed at a loss if calls for funds are not met. The performance of an option that you have written depends primarily on how the underlying asset performs during the life of the option. The value of the option can therefore be affected by any risk factors that can affect the price of the underlying asset to which the option relates. A relatively small movement in the price of the underlying asset can result in a futuredisproportionately large movement, unfavourable or favourable, in the purchaser will acquire a futures position with associated liabilities for margin (see value of the section on Futures above)option. The prices of options can therefore be volatile. If the purchased price of the underlying asset moves against you the option will lapse without value. In this case you will incur a loss equal to your premium plus any transaction charges. Even if a written option transaction is outnot margined, it may still carry an obligation to make further payments in certain circumstances over and above any amount paid when we (on your behalf) entered into the contract. Certain London Stock Exchange member firms under special exchange rules write a particular type of option called a 'traditional option'. These may involve greater risk than other options. Two-ofway prices are not usually quoted and there is no exchange market on which to close out an open position or to effect an equal and opposite transaction to reverse an open position. It may be difficult to assess its value or for the seller of such an option to manage its exposure to risk. Options may be executed on an investment exchange or on an over-the-money when it expirescounter (“OTC”) basis. While some OTC markets are highly liquid, you will suffer a total loss of your investment, which will consist of the option premium plus transaction costs. If you are contemplating purchasing out-of-the money options, you should be aware that the chance of such options becoming profitable ordinarily is remote. Selling ("writing" or "granting") an option generally entails considerably transactions in OTC derivatives may involve greater risk than purchasing optionsinvesting in on-exchange derivatives because there is no exchange market on which to close out an open position. Although It may be impossible to liquidate an existing position, to assess the premium received by value of the seller is fixedposition arising from an OTC transaction or to assess the exposure to risk. Bid prices and offer prices need not be quoted, the seller may sustain a loss well in excess of that amount. The seller and, even where they are, they will be liable for additional margin to maintain the position if the market moves unfavourably. The seller will also be exposed to the risk of the purchaser exercising the option established by dealers in these instruments and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a future, the seller will acquire a position in a future with associated liabilities for margin (see the section on Futures above). If the option is "covered" by the seller holding a corresponding position in the underlying asset, in a future or in another option, the risk consequently it may be reduced. In case the option difficult to establish what is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that timea fair price.

Options. 3 3. Variable Degree degree of Risk risk. Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize themselves with the type of option (i.e., i.e. put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the option options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a future, the purchaser will acquire a futures position with associated liabilities for margin (see the section on Futures above). If the purchased option is out-of-the-money when it expiresoptions expire worthless, you will suffer a total loss of your investment, investment which will consist of the option premium plus transaction costs. If you are contemplating purchasing deep-out-of-the the-money options, you should be aware that the chance of such options becoming profitable ordinarily is remote. 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 be liable for additional margin to maintain the position if the market moves unfavourablyunfavorably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a future, the seller will acquire a position in a future with associated liabilities for margin (see the section on Futures above). If the option is "'covered" ' by the seller holding a corresponding position in the underlying asset, in interest or a future or in another option, the risk may be reduced. In case If the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the Revised 071205 2 ________________________________ MERRILL LYNCH _______________________________ purchaser to liability for margin liabilxxx xxx xxxxxn payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.. Additional risks common to futures and options

Options. 3 Variable Degree An option is a contractual agreement between two parties to give the holder the right, but not the obligation, to buy or sell a specific amount of Risk stock, commodity, currency, index or debt at a specified price during a specific period of time. Transactions in options carry a high degree of risk, are subject to margin requirements and bring about financial commitments and liabilities additional to the cost of acquisition. Purchasers and sellers of options should familiarize familiarise themselves with the type of option (i.e., i.e. put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the option options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a future, the purchaser will acquire a futures position with associated liabilities for margin (see the section on Futures above). If You should be aware that options typically have a limited life, and therefore purchased options may expire worthless if the purchased option is out-of-the-money when it expiresunderlying asset does not perform as expected, in which case you will suffer a total loss of your investment, investment which will consist of the option premium plus transaction costs. If you are contemplating purchasing deep-out-of-the the-money options, you should be aware that the chance of such options becoming profitable ordinarily is remote. Selling ("“writing" ” or "“granting"”) an on 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 may be liable for additional margin to maintain the position if the market moves unfavourablyunfavorably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a future, the seller will acquire a position in a future with associated liabilities for or margin (see the section on Futures above). If the option is "“covered" ” by the seller holding a corresponding position in the underlying asset, in interest or a future or in another option, the risk may be reduced. In case If the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at the time. Covered Warrants Covered warrants have similar characteristics to an option and they give the investor the right but not the obligation to buy (in the case of a call warrant) or to sell (in the case of a put warrant) an underlying asset at a predetermined price (known as the strike or exercise price) on or before a predetermined date (known as the expiry or exercise date). The cost of a warrant is the premium plus transaction costs. A covered warrant which has no leverage is often referred to as a certificate. You should be aware that timeif a covered warrant does not perform as expected you could lose the whole of your investment. Investors can be subject to large / potentially unlimited liability depending on the type of warrant transaction they enter into. This may require the investor to make margin payments. Additional Futures and Options risks: Terms and conditions of contracts – Futures and Options You should ask the firm with which you deal about the terms and conditions of the specific futures or options which you are trading and associated obligations (e.g. the circumstances under which you may become obligated to make or take delivery of the underlying interest of a futures contract and, in respect of options, expiration dates and restrictions on the time for exercise). Under certain circumstances the specifications of outstanding contracts (including the exercise price of an option) may be modified by the exchange or clearing house to reflect changes in the underlying interest. Suspension or restriction of trading and pricing relationships – Futures and Options Market conditions (e.g. illiquidity) and/or the operation of the rules of certain markets (e.g. the suspension of trading in any contract or contract month because of price limits or “circuit breakers”) may increase the risk of loss by making it difficult or impossible to effect transactions or liquidate/offset positions. If you have sold options, this may increase the risk of loss. Further normal pricing relationships between the underlying interest and the future and the underlying interest and the option may not exist. This can occur when, for example, the futures contract underlying the option is subject to price limits while the option is not. The absence of an underlying reference price may make it difficult to judge “fair” value. Pershing Bank Details All clients must quote their account number with Xxxxxx Xxxxxxxxxx Ireland Ltd along with their name. Euro Bank Name: Ulster Bank Swift Code: XXXXXX0X Sort Code: 98-50-10 A/C No: 31911845 IBAN: XX00XXXX00000000000000 A/C Name: Pershing Securities International Limited Client Hub Account GBP Bank Name: Royal Bank of Scotland Swift Code: XXXXXX0X Sort Code: 16-04-00 A/C No: 20223091 IBAN: XX00XXXX00000000000000 A/C Name: Pershing Securities International Limited Client Hub Account USD Bank Name: Citibank New York Swift Code: XXXXXX00 ABA No 000000000 A/C No: 36828053 A/C Name: Pershing Securities International Limited Client Account R DUBLIN: 75 St. Stephen’s Green, Dublin 2, Ireland. Tel : +000 0 000 0000. Fax : +000 0 000 0000/+000 0 000 0000 CORK: 00 Xxxxx Xxxx, Xxxx. Tel: +000 00 000 0000. LIMERICK: Theatre Court, Lower Mallow Street, Limerick. Tel: +000 00 000000. email : xxxxxxx@xxxxxx.xxx web : xxx.xxxxxxxxxxxxxxxx.xx Cantor Xxxxxxxxxx Ireland Ltd is regulated by the Central Bank of Ireland. Cantor Xxxxxxxxxx Ireland Ltd is a member firm of the Irish Stock Exchange and the London Stock Exchange.

Options. 3 1. Variable Degree of Risk Risks Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize familiarise themselves with the type of option (i.e., i.e. put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the option options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a futurefutures contract, the purchaser will acquire a futures position with the associated liabilities for margin the Margin (see the section on Futures Contracts above). If the purchased option is out-of-the-money when it expiresoptions expire and become worthless, you will suffer a total loss of Loss from your investment, investment which will consist of the option premium plus the transaction costs. If you are contemplating on purchasing deep-out-of-the the-money options, you should be aware that the chance of such options becoming profitable ordinarily is remote. Selling ("“writing" ” or "“granting"”) an option generally entails considerably greater risk risks than purchasing options. Although the premium received by the seller is fixed, the seller may sustain a loss Loss well in excess of that amount. The seller will be liable for additional margin Margin to maintain the position if the market moves unfavourably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a futurefutures contract, the seller will acquire a position in a future Futures Contract with associated liabilities for margin Margin (see the section on Futures Contracts above). If the option is "“covered" ” by the seller holding a corresponding position in the underlying asset, in interest or a future Futures Contract or in another option, the risk risks may be reduced. In case If the option is not covered, the risk of loss Loss can be unlimited. Certain exchanges Exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin Margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.. Additional risks common to Futures and Options

Options. 3 Variable Degree degree of Risk risk Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize familiarise themselves with the type of option (i.e., i.e. put or call) which they contemplate trading and the associated risks. You I/We should calculate the extent to which the value of the options must increase for your my/our position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the option options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a futurefutures contract, the purchaser will acquire a futures position with associated liabilities for margin (see the section on Futures above). If the purchased option is out-of-the-money when it expiresoptions expire worthless, you I/we will suffer a total loss of your investment, my/our investment which will consist of the option premium plus transaction costs. If you I am/ we are contemplating purchasing deep-out-of-the the-money options, you I/we should be aware that the chance of such options becoming profitable ordinarily is remote. 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 be liable for additional margin to maintain the position if the market moves unfavourably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a futurefutures contract, the seller will acquire a position in a future futures contract with associated liabilities for margin (see the section on Futures above). If the option is "“covered" ” by the seller holding a corresponding position in the underlying asset, in interest or a future futures contract or in another option, the risk may be reduced. In case If the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.

Options. 3 3. Variable Degree degree of Risk risk Transactions in options carry a high degree of risk. Purchasers The Client acknowledges and accepts that purchasers and sellers of options should familiarize familiarise themselves with the type of option (i.e., i.e. put or call) which they contemplate trading and the associated risks. You The Client should calculate the extent to which the value of the options must increase for your the Client’s position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the option options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a futurefutures contract, the purchaser will acquire a futures position with associated liabilities for margin (see the section on Futures above)margin. If the purchased option is out-of-the-money when options expire worthless, the Client acknowledges that it expires, you will suffer a total loss of your investment, the Client’s investment which will consist of the option premium plus transaction costs. If you are the Client is contemplating purchasing deep-out-of-the the-money options, you it should be aware that the chance of such options becoming profitable ordinarily is remote. Selling The Client acknowledges and accepts that 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 be liable for additional margin to maintain the position if the market moves unfavourably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated obliged to either settle the option in cash or to acquire or deliver the underlying interest. F. If the option is on a futurefutures contract, the seller will acquire a position in a future futures contract with associated liabilities for margin (see the section on Futures above)margin. If the option is "“covered" ” by the seller holding a corresponding position in the underlying asset, in interest or a future futures contract or in another option, the risk may be reduced. In case If the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.

Options. 3 Variable Degree degree of Risk risk Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize themselves with the type of option (i.e., i.e. put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the option options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a futurefutures contract, the purchaser will acquire a futures position with associated liabilities for margin (see the section on Futures above). If the purchased option is out-of-the-money when it expiresoptions expire worthless, you will suffer a total loss of your investment, which will consist of the option premium plus transaction costs. If you are contemplating purchasing deep-out-of-the the-money options, you should be aware that the chance of such options becoming profitable ordinarily is remote. 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 be liable for additional margin to maintain the position if the market moves unfavourablyunfavorably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interestinterests. If the option is on a futurefutures contract, the seller will acquire a position in a future contract with associated liabilities for margin (see the section on Futures above). If the option is "covered" by the seller holding a corresponding position in the underlying asset, in interest or a future futures contract or in another option, the risk may be reduced. In case If the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.

Options. 3 Variable Degree of Risk 3. VARIABLE DEGREE OF RISK Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize themselves with the type of option (i.e., i.e. put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the option options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a future, the purchaser will acquire a futures position with associated liabilities for margin (see the section on Futures above). If the purchased option is out-of-the-money when it expiresoptions expire worthless, you will suffer a total loss of your investment, investment which will consist of the option premium plus transaction costs. If you are contemplating purchasing deep-out-of-the the-money options, you should be aware that the chance of such options becoming profitable ordinarily is remote. 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 be liable for additional margin to maintain the position if the market moves unfavourablyunfavorably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a future, the seller will acquire a position in a future with associated liabilities for margin (see the section on Futures above). If the option position is "‘covered" ’ by the seller holding a corresponding position in the underlying asset, in interest or a future or in another option, the risk may be reduced. In case If the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.. ADDITIONAL RISKS COMMON TO FUTURES AND OPTIONS

Options. 3 3. Variable Degree degree of Risk risk. Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize themselves with the type of option (i.e., i.e. put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the option options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a future, the purchaser will acquire a futures position with associated liabilities for margin (see the section on Futures above). If the purchased option is out-of-the-money when it expiresoptions expire worthless, you will suffer a total loss of your investment, investment which will consist of the option premium plus transaction costs. If you are contemplating purchasing deep-out-of-the the-money options, you should be aware that the chance of such options becoming profitable ordinarily is remote. 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 be liable for additional margin to maintain the position if the market moves unfavourablyunfavorably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a future, the seller will acquire a position in a future with associated liabilities for margin (see the section on Futures above). If the option is "`covered" ' by the seller holding a corresponding position in the underlying asset, in interest or a future or in another option, the risk may be reduced. In case If the option is not covered, the risk of loss can be unlimited. ________________________________MERRILL LYNCH_________________________________ Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.. Additional risks common to futures and options

Options. 3 1.1 Variable Degree of Risk < Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize themselves with the type of option (i.e., put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the option to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a future, the purchaser will acquire a futures position with associated liabilities for margin (see the section on Futures above). If the purchased option is out-of-the-money when it expires, you will suffer a total loss of your investment, which will consist of the option premium plus transaction costs. If you are contemplating purchasing out-of-the the- money options, you should be aware that the chance of such options becoming profitable ordinarily is remote. xxx.xxxxxxxxxxxxxx.xxx | xxxx@xxxxxxxxxxxxxx.xxx | Xxxx X00, Xxxxxx Xxxxxxxx, Xx Xxxxxx Xx La Fraternite, Ile Du Port, Seychelles 49 GEMFOREX LIMITED / Client service Agreement 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 be liable for additional margin to maintain the position if the market moves unfavourablyunfavorably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a future, the seller will acquire a position in a future with associated liabilities for margin (see the section on Futures above). If the option is "“covered" ” by the seller holding a corresponding position in the underlying asset, in a future or in another option, the risk may be reduced. In case the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.

Options. 3 3. Variable Degree degree of Risk risk Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize themselves with the type of option (i.e., i.e. put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the option options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a future, the purchaser will acquire a futures position with associated liabilities for margin (see the section on Futures above). If the purchased option is out-of-the-money when it expiresoptions expire worthless, you will suffer a total loss of your investment, investment which will consist of the option premium plus transaction costs. If you are contemplating purchasing deep-out-of-the the-money options, you your should be aware that the chance of such options becoming profitable ordinarily is remote. 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 be liable for additional margin to maintain the position if the market moves unfavourablyunfavorably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a future, the seller will acquire a position in a future with associated liabilities for margin (see the section on Futures above). If the option is "“covered" ” by the seller holding a corresponding position in the underlying asset, in interest or a future or in another option, the risk may be reduced. In case If the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser purchase is responsible for any unpaid premium outstanding at that time.. Additional risks common to futures and options

Options. 3 Variable Degree of Risk Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize themselves with the type of option (i.e., put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the option to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a future, the purchaser will acquire a futures position with associated liabilities for margin (see the section on Futures above). If the purchased option is out-of-the-money when it expires, you will suffer a total loss of your investment, which will consist of the option premium plus transaction costs. If you are contemplating purchasing out-of-the the- money options, you should be aware that the chance of such options becoming profitable ordinarily is remote. 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 be liable for additional margin to maintain the position if the market moves unfavourably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a future, the seller will acquire a position in a future with associated liabilities for margin (see the section on Futures above). If the option is "covered" by the seller holding a corresponding position in the underlying asset, in a future or in another option, the risk may be reduced. In case the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.

Options. 3 Variable Degree of Risk 3. VARIABLE DEGREE OF RISK Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize themselves with the type of option (i.e., put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the option options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a future, the purchaser will acquire a futures future position with associated liabilities for margin (see the section on Futures above). If the purchased option is out-of-the-money when it expiresoptions expire worthless, you will suffer a total loss of your investment, which will consist of the option premium plus transaction costs. If you are contemplating purchasing deep-out-of-the the-money options, you should be aware that the chance of such options becoming profitable ordinarily is usually remote. 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 be liable for additional margin to maintain the position if the market moves unfavourably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a future, the seller will acquire a position in a future with associated liabilities for margin (see the section on Futures above). If the option is "covered" covered by the seller holding a corresponding position in the underlying asset, in interest or a future or in another option, the risk may be reduced. In case If the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.. ADDITIONAL RISKS COMMON TO FUTURES AND OPTIONS

Options. 3 3. Variable Degree degree of Risk risk Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize familiarise themselves with the type of option (i.e., i.e. put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the option options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a futurefutures contract, the purchaser will acquire a futures position with associated liabilities for margin (see the section on Futures above). If the purchased option is out-of-the-money when it expiresoptions expire worthless, you will suffer a total loss of your investment, investment which will consist of the option premium plus transaction costs. If you are contemplating purchasing deep-out-of-the money options, you should be aware that the chance of such options becoming profitable ordinarily is remote. 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 be liable for additional margin to maintain the position if the market moves unfavourably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a futurefutures contract, the seller will acquire a position in a future futures contract with associated liabilities for margin (see the section on Futures above). If the option is "“covered" ” by the seller holding a corresponding position in the underlying asset, in interest or a future futures contract or in another option, the risk may be reduced. In case If the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.

Options. 3 Variable Degree degree of Risk risk Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize themselves with the type of option (i.e., i.e. put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the option options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a future, the purchaser will acquire a futures position with associated liabilities for margin (see the section on Futures above). If the purchased option is out-of-the-money when it expiresoptions expire worthless, you will suffer a total loss of your investment, investment which will consist of the option premium plus transaction costs. If you are contemplating purchasing deep- out-of-the the-money options, you should be aware that the chance of such options becoming profitable ordinarily is remote. 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 be liable for additional margin to maintain the position if the market moves unfavourablyunfavorably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a future, the seller will acquire a position in a future with associated liabilities for margin (see the section on Futures above). If the option is "“covered" ” by the seller holding a corresponding position in the underlying asset, in interest or a future futures contract or in another option, the risk may be reduced. In case If the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.

Options. 3 1.3. Variable Degree of Risk Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize themselves with the type of option (i.e., put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the option to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a future, the purchaser will acquire a futures position with associated liabilities for margin (see the section on Futures above). If the purchased option is out-of-the-money when it expires, you will suffer a total loss of your investment, which will consist of the option premium plus transaction costs. If you are contemplating purchasing out-of-the the- money options, you should be aware that the chance of such options becoming profitable ordinarily is remote. 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 be liable for additional margin to maintain the position if the market moves unfavourably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a future, the seller will acquire a position in a future with associated liabilities for margin (see the section on Futures above). If the option is "covered" by the seller holding a corresponding position in the underlying asset, in a future or in another option, the risk may be reduced. In case the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.. Appendix

Options. 3 Variable Degree of Risk degree Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize themselves with the type of option (i.e., i.e. put or call) which they contemplate con- template trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the option options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a futurefutures contract, the purchaser will acquire a futures position pos i- tion with associated liabilities for margin (see the section on Futures above). If the purchased option is out-of-the-money when it expiresoptions expire worthless, you will suffer a total loss of your investment, investment which will consist of the option premium plus transaction costs. If you are contemplating purchasing deep-out-of-the the-money options, you should be aware that the chance of such options becoming profitable ordinarily is remote. Selling Telling ("“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 be liable for additional margin to maintain the position if the market moves unfavourablyunfavorably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or of deliver the underlying interest. If the option is on a futurefutures contract, the seller will acquire a position in a future futures contract with associated liabilities for margin (see the section on Futures above). If the option is "“covered" ” by the seller holding a corresponding position in the underlying asset, in interest or a future futures contact or in another option, the risk may be reduced. In case If the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.

Options. 3 3. Variable Degree degree of Risk risk Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize themselves with the type of option (i.e., i.e. put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the option options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a future, the purchaser will acquire a futures position with associated liabilities for margin (see the section on Futures above). If the purchased option is out-of-the-money when it expiresoptions expire worthless, you will suffer a total loss of your investment, investment which will consist of the option premium plus transaction costs. If you are contemplating purchasing deep-out-of-the of the- money options, you should be aware that the chance of such options becoming profitable ordinarily is remote. 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 be liable for additional margin to maintain the position if the market moves unfavourablyunfavorably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a future, the seller will acquire a position in a future with associated liabilities for margin (see the section on Futures above). If the option is "covered" by the seller holding a corresponding position in the underlying asset, in interest or a future or in another option, the risk may be reduced. In case If the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.. Additional risks common to futures and options

Options. 3 3. Variable Degree degree of Risk risk Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize themselves with the type of option (i.e., i.e. put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the option options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a futurefutures, the purchaser will acquire a futures position with associated liabilities for margin (see the section on Futures above). If the purchased option is out-of-the-money when it expiresoptions expire worthless, you will suffer a total loss of your investment, which investment that will consist of the option premium plus transaction costs. If you are contemplating purchasing deep-out-of-the the-money options, you should be aware that the chance of such options becoming profitable ordinarily is remote. 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 be liable for additional margin to maintain the position if the market moves unfavourablyunfavorably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a futurefutures contract, the seller will acquire a position in a future futures contract with associated liabilities for margin (see the section on Futures above). If the option is "'covered" ' by the seller holding a corresponding position in the underlying asset, in interest or a future futures contract or in another option, the risk may be reduced. In case If the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and the transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.

Options. 3 3. Variable Degree degree of Risk risk Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize themselves with the type of option (i.e., put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the option options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a future, the purchaser will acquire a futures position with associated liabilities for margin (see the section on Futures above). If the purchased option is out-of-the-money when it expiresoptions expire worthless, you will suffer a total loss of your investment, investment which will consist of the option premium plus transaction costs. If you are contemplating purchasing deep-out-of-the the-money options, you should be aware that the chance of such options becoming profitable ordinarily is remote. Selling ("writing" or "granting") an option generally entails considerably greater risk than then 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 be liable for additional margin to maintain the position if the market moves unfavourablyunfavorably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a future, the seller will acquire a position in a future with associated liabilities for margin (see the section on Futures above). If the option is "covered" by the seller holding a corresponding position in the underlying asset, in interest or a future or in another option, the risk may be reduced. In case If the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.. Additional risks common to futures and options

Options. 3 Variable Degree of Risk Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize themselves with the type of option (i.e., put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the option to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a future, the purchaser will acquire a futures position with associated liabilities for margin (see the section on Futures above). If the purchased option is out-of-the-money when it expires, you will suffer a total loss of your investment, which will consist of the option premium plus transaction costs. If you are contemplating purchasing out-of-the money themoney options, you should be aware that the chance of such options becoming profitable ordinarily is remote. 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 be liable for additional margin to maintain the position if the market moves unfavourably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a future, the seller will acquire a position in a future with associated liabilities for margin (see the section on Futures above). If the option is "covered" by the seller holding a corresponding position in the underlying asset, in a future or in another option, the risk may be reduced. In case the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction transa ction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.

Options. 3 3. Variable Degree degree of Risk risk Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize familiarise themselves with the type of option (i.e., i.e. put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the option options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a futurefutures contract, the purchaser will acquire a futures position with associated liabilities for margin (see the section on Futures above). If the purchased option is out-of-the-money when it expiresoptions expire worthless, you will suffer a total loss of your investment, investment which will consist of the option premium plus transaction costs. If you are contemplating purchasing deep-out-of-the the-money options, you should be aware that the chance of such options becoming profitable ordinarily is remote. 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 be liable for additional margin to maintain the position if the market moves unfavourably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a futurefutures contract, the seller will acquire a position in a future futures contract with associated liabilities for margin (see the section on Futures above). If the option is "covered" by the seller holding a corresponding position in the underlying asset, in interest or a future futures contract or in another option, the risk may be reduced. In case If the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.. Additional risks common to futures and options

Options. 3 Variable Degree An option is a contractual agreement between two parties to give the holder the right, but not the obligation, to buy or sell a specific amount of Risk stock, commodity, currency, index or debt at a specified price during a specific period of time. Transactions in options carry a high degree of risk, are subject to margin requirements and bring about financial commitments and liabilities additional to the cost of acquisition. Purchasers and sellers of options should familiarize familiarise themselves with the type of option (i.e., i.e. put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the option options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a future, the purchaser will acquire a futures position with associated liabilities for margin (see the section on Futures above). If You should be aware that options typically have a limited life, and therefore purchased options may expire worthless if the purchased option is out-of-the-money when it expiresunderlying asset does not perform as expected, in which case you will suffer a total loss of your investment, investment which will consist of the option premium plus transaction costs. If you are contemplating purchasing deep-out-of-the the-money options, you should be aware that the chance of such options becoming profitable ordinarily is remote. Selling ("“writing" ” or "“granting"”) an on 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 may be liable for additional margin to maintain the position if the market moves unfavourablyunfavorably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a future, the seller will acquire a position in a future with associated liabilities for or margin (see the section on Futures above). If the option is "“covered" ” by the seller holding a corresponding position in the underlying asset, in interest or a future or in another option, the risk may be reduced. In case If the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at the time. Covered Warrants Covered warrants have similar characteristics to an option and they give the investor the right but not the obligation to buy (in the case of a call warrant) or to sell (in the case of a put warrant) an underlying asset at a predetermined price (known as the strike or exercise price) on or before a predetermined date (known as the expiry or exercise date). The cost of a warrant is the premium plus transaction costs. A covered warrant which has no leverage is often referred to as a certificate. You should be aware that timeif a covered warrant does not perform as expected you could lose the whole of your investment. Investors can be subject to large / potentially unlimited liability depending on the type of warrant transaction they enter into. This may require the investor to make margin payments. Additional Futures and Options risks: Terms and conditions of contracts – Futures and Options You should ask the firm with which you deal about the terms and conditions of the specific futures or options which you are trading and associated obligations (e.g. the circumstances under which you may become obligated to make or take delivery of the underlying interest of a futures contract and, in respect of options, expiration dates and restrictions on the time for exercise). Under certain circumstances the specifications of outstanding contracts (including the exercise price of an option) may be modified by the exchange or clearing house to reflect changes in the underlying interest. Suspension or restriction of trading and pricing relationships – Futures and Options Market conditions (e.g. illiquidity) and/or the operation of the rules of certain markets (e.g. the suspension of trading in any contract or contract month because of price limits or “circuit breakers”) may increase the risk of loss by making it difficult or impossible to effect transactions or liquidate/offset positions. If you have sold options, this may increase the risk of loss. Further normal pricing relationships between the underlying interest and the future and the underlying interest and the option may not exist. This can occur when, for example, the futures contract underlying the option is subject to price limits while the option is not. The absence of an underlying reference price may make it difficult to judge “fair” value. Pershing Bank Details All clients must quote their account number with Xxxxxx Xxxxxxxxxx Ireland Ltd along with their name. Euro Bank Name: Ulster Bank Swift Code: XXXXXX0X Sort Code: 98-50-10 A/C No: 31911845 IBAN: XX00XXXX00000000000000 A/C Name: Pershing Securities International Limited Client Asset Account - Hub Account GBP Bank Name: Royal Bank of Scotland Swift Code: XXXXXX0X Sort Code: 16-04-00 A/C No: 20223091 IBAN: XX00XXXX00000000000000 A/C Name: Pershing Securities International Limited Client Asset Account - Hub Account USD Bank Name: Citibank New York Swift Code: XXXXXX00 ABA No 000000000 A/C No: 36828053 A/C Name: Pershing Securities International Limited Client Asset Account - Hub Account R DUBLIN: 75 St. Stephen’s Green, Dublin 2, Ireland. Tel : +000 0 000 0000. Fax : +000 0 000 0000/+000 0 000 0000 CORK: 00 Xxxxx Xxxx, Xxxx. Tel: +000 00 000 0000. LIMERICK: Theatre Court, Lower Mallow Street, Limerick. Tel: +000 00 000000. email : xxxxxxx@xxxxxx.xxx web : xxx.xxxxxxxxxxxxxxxx.xx Cantor Xxxxxxxxxx Ireland Ltd is regulated by the Central Bank of Ireland. Cantor Xxxxxxxxxx Ireland Ltd is a member firm of the Irish Stock Exchange and the London Stock Exchange.

Options. 3 3. Variable Degree degree of Risk risk Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize familiarise themselves with the type of option (i.e., i.e. put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the option options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a futurefutures contract, the purchaser will acquire a futures position with associated liabilities for margin (see the section on Futures above). If the purchased option is out-of-the-money when it expiresoptions expire worthless, you will suffer a total loss of your investment, investment which will consist of the option premium plus transaction costs. If you are contemplating purchasing deep-out-ofof- the-the money options, you should be aware that the chance of such options becoming profitable ordinarily is remote. 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 be liable for additional margin to maintain the position if the market moves unfavourably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a futurefutures contract, the seller will acquire a position in a future futures contract with associated liabilities for margin (see the section on Futures above). If the option is "covered" by the seller holding a corresponding position in the underlying asset, in interest or a future futures contract or in another option, the risk may be reduced. In case If the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.. Additional risks common to futures and options

Options. 3 Variable Degree of Risk VARIABLE DEGREE OF RISK Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize themselves with the type of option (i.e., i.e. put or call) which that they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the option options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a futurefutures contract, the purchaser will acquire a futures position with associated liabilities for margin (see the section on Futures Contracts above). If the purchased option is out-of-the-money when it expiresoptions expire worthless, you will suffer a total loss of your investment, investment which will consist of the option premium plus transaction costs. If you are contemplating purchasing deep-out-of-the the-money options, you should be aware that the chance of such options becoming profitable ordinarily is remote. 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 be liable for additional margin to maintain the position if the market moves unfavourably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a futurefutures contract, the seller will acquire a position in a future with associated liabilities for margin (see the section on Futures Contracts above). If the option is "‘covered" ’ by the seller holding a corresponding position in the underlying asset, in interest or a future futures contract or in another option, the risk may be reduced. In case If the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.

Options. 3 Variable Degree degree of Risk risk Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize themselves with the type of option (i.e., i.e. put or call) which they contemplate trading and the associated risks. Some options may only be exercised on an expiry day (European-Style Exercise) and other options may be exercised at any time before expiration (American-Style Exercise). You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the option options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a futurefutures contract, the purchaser will acquire a futures position with associated liabilities for margin (please see the section on Futures “Futures” above). If the purchased option is out-of-the-money when it expiresoptions expire worthless, you understand that you will suffer a total loss of your investment, investment which will consist of the option premium plus transaction costs. If you are contemplating purchasing deep-out-of-the the-money options, you should be aware that the chance of such options becoming profitable ordinarily is remote. Under some circumstances it may be difficult to trade the option due to lack of liquidity in the market. You acknowledge that GIHKL has no obligation either to exercise a valuable option in the absence of your instruction, or to give to you prior notice of the expiration date of the option. 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 be liable for additional margin to maintain the position if the market moves unfavourablyunfavorably. The seller will also be exposed to the risk of the purchaser exercising the option option, and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a futurefutures contract, the seller will acquire a position in a future futures contract with associated liabilities for margin (please see the section on Futures “Futures” above). If the option is "“covered" ” by the seller holding a corresponding position in the underlying asset, in interest or a future futures contract or in another option, the risk may be reduced. In case If the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.

Options. 3 3. Variable Degree degree of Risk risk. Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize themselves with the type of option (i.e., i.e. put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the option options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a future, the purchaser will acquire a futures position with associated liabilities for margin (see the section on Futures above). If the purchased option is out-of-the-money when it expiresoptions expire worthless, you will suffer a total loss of your investment, investment which will consist of the option premium plus transaction costs. If you are contemplating purchasing deep-out-of-the the-money options, you should be aware that the chance of such options becoming profitable ordinarily is remote. 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 be liable for additional margin to maintain the position if the market moves unfavourablyunfavorably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a future, the seller will acquire a position in a future with associated liabilities for margin (see the section on Futures above). If the option is "'covered" ' by the seller holding a corresponding position in the underlying asset, in interest or a future or in another option, the risk may be reduced. In case If the option is not covered, the risk of loss can be unlimited. -------------------------------- MERRILL LYNCH -------------------------------- Certain exchanges in some jurisdictions xxxx xuxxxxxctions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.. Additional risks common to futures and options