Common use of Risk Disclosure Statement Clause in Contracts

Risk Disclosure Statement. I/WE ACKNOWLEDGE THAT DUE TO THE VOLATILE NATURE OF COMMODITIES MARKETS, THE PURCHASE AND WRITING OF OPTIONS OVER COMMODITIES INVOLVES A HIGH DEGREE OF RISK. WARNING TO OPTION HOLDERS SOME OPTIONS MAY ONLY BE EXERCISED ON ITS EXPIRY DAY (EUROPEAN-STYLE EXERCISE) AND OTHER OPTIONS MAY BE EXERCISED AT ANY TIME BEFORE EXPIRATION (AMERICAN-STYLE EXERCISE). I/WE UNDERSTAND THAT UPON EXERCISE SOME OPTIONS REQUIRE DELIVERY AND RECEIPT OF THE UNDERLYING COMMODITIES AND THAT OTHER OPTIONS REQUIRE A CASH PAYMENT. AN OPTION IS A WASTING ASSET AND THERE IS A POSSIBILITY THAT AS AN OPTION HOLDER I/WE MAY SUFFER THE LOSS OF THE TOTAL PREMIUM PAID FOR THE OPTION. I/WE ACKNOWLEDGE THAT, AS AN OPTION HOLDER, IN ORDER TO REALISE A PROFIT IT WILL BE NECESSARY TO EITHER EXERCISE THE OPTION OR CLOSE THE LONG OPTION POSITION IN THE MARKET. UNDER SOME CIRCUMSTANCES IT MAY BE DIFFICULT TO TRADE THE OPTION DUE TO LACK OF LIQUIDITY IN THE MARKET. I/WE ACKNOWLEDGE THAT YOU HAVE NO OBLIGATION EITHER TO EXERCISE A VALUABLE OPTION IN THE ABSENCE OF MY/OUR INSTRUCTION OR TO GIVE TO ME/US PRIOR NOTICE OF THE EXPIRATION DATE OF THE OPTION. WARNING TO OPTION WRITERS AS A WRITER OF AN OPTION I/WE MAY BE REQUIRED TO PAY ADDITIONAL MARGIN AT ANY TIME. I/WE ACKNOWLEDGE THAT AS AN OPTION WRITER, UNLIKE AN OPTION HOLDER, I/WE MAY BE LIABLE FOR UNLIMITED LOSSES BASED ON THE RISE OR FALL OF THE PRICE OF THE UNDERLYING COMMODITIES AND MY/OURS GAINS ARE LIMITED TO THE OPTION PREMIUM. ADDITIONALLY, WRITERS OF AMERICAN-STYLE CALL (PUT) OPTIONS MAY BE REQUIRED AT ANY TIME BEFORE EXPIRY TO DELIVER (PAY FOR) THE UNDERLYING SECURITIES TO THE FULL VALUE OF THE STRIKE PRICE MULTIPLIED BY THE NUMBER OF UNDERLYING COMMODITIES. I/WE RECOGNISE THAT THIS OBLIGATION MAY BE WHOLLY DISPROPORTIONATE TO THE VALUE OF PREMIUM RECEIVED AT THE TIME THE OPTIONS WERE WRITTEN AND MAY BE REQUIRED AT SHORT NOTICE.

Risk Disclosure Statement. I/WE ACKNOWLEDGE THAT The Client confirms and acknowledges that the OTM has fully explained the Risk Disclosure Statement and warnings as set out below to the Client and the Client accepts such risks. RISK DISCLOSURE STATEMENT DUE TO THE VOLATILE NATURE OF COMMODITIES SECURITIES MARKETS, THE PURCHASE AND WRITING OF OPTIONS OVER COMMODITIES SECURITIES INVOLVES A HIGH DEGREE OF RISKRISK P.9 RISK OF TRADING OPTIONS THE RISK OF LOSS IN TRADING OPTIONS IS SUBSTANTIAL. IN SOME CIRCUMSTANCES, YOU MAY SUSTAIN LOSSES IN EXCESS OF YOUR INITIAL MARGIN FUNDS. PLACING CONTINGENT ORDERS SUCH AS "STOP-LOSS" OR "STOP-LIMIT" ORDERS, WILL NOT NECESSARILY AVOID LOSS. MARKET CONDITIONS MAY MAKE IT IMPOSSIBLE TO EXECUTE SUCH ORDERS. YOU MAY BE CALLED UPON AT SHORT NOTICE TO DEPOSIT ADDITIONAL MARGIN FUNDS. IF THE REQUIRED FUNDS ARE NOT PROVIDED WITHIN THE PRESCRIBED TIME, YOUR POSITION MAY BE LIQUIDATED. YOU WILL REMAIN LIABLE FOR ANY RESULTING DEFICIT IN YOUR ACCOUNT. YOU SHOULD THEREFORE STUDY AND UNDERSTAND OPTIONS BEFORE YOU TRADE AND CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE IN THE LIGHT OF YOUR OWN FINANCIAL POSITION AND INVESTMENT OBJECTIVES. IF YOU TRADE OPTIONS YOU SHOULD INFORM YOURSELF OF EXERCISE AND EXPIRATION PROCEDURES AND YOUR RIGHTS AND OBLIGATIONS UPON EXERCISE OR EXPIRY. WARNING TO OPTION HOLDERS SOME OPTIONS MAY ONLY BE EXERCISED ON ITS AN EXPIRY DAY (EUROPEAN-EUROPEAN STYLE EXERCISE) AND THAT OTHER OPTIONS MAY BE EXERCISED AT ANY TIME BEFORE EXPIRATION (AMERICAN-AMERICAN STYLE EXERCISE). I/WE UNDERSTAND THAT UPON EXERCISE SOME OPTIONS REQUIRE DELIVERY AND RECEIPT OF THE UNDERLYING COMMODITIES SECURITIES AND THAT OTHER OPTIONS REQUIRE A CASH PAYMENT. AN OPTION IS A WASTING ASSET AND THERE IS A POSSIBILITY THAT AS AN OPTION HOLDER I/WE MAY SUFFER THE LOSS OF THE TOTAL PREMIUM PAID FOR THE OPTION. I/WE ACKNOWLEDGE THAT, AS AN OPTION HOLDER, IN ORDER TO REALISE A PROFIT IT WILL BE NECESSARY TO EITHER EXERCISE THE OPTION OR CLOSE THE LONG OPTION POSITION IN THE MARKET. UNDER SOME CIRCUMSTANCES IT MAY BE DIFFICULT TO TRADE THE OPTION DUE TO LACK OF LIQUIDITY IN THE MARKET. I/WE ACKNOWLEDGE THAT YOU HAVE NO OBLIGATION EITHER TO EXERCISE A VALUABLE OPTION IN THE ABSENCE OF MY/OUR INSTRUCTION OR TO GIVE TO ME/US PRIOR NOTICE OF THE EXPIRATION DATE OF THE OPTION. WARNING TO OPTION WRITERS AS A WRITER OF AN OPTION I/WE MAY BE REQUIRED TO PAY ADDITIONAL MARGIN AT ANY TIME. I/WE ACKNOWLEDGE THAT AS AN OPTION WRITER, UNLIKE AN OPTION HOLDER, I/WE MAY BE LIABLE FOR UNLIMITED LOSSES BASED ON THE RISE OR FALL OF THE PRICE OF THE UNDERLYING COMMODITIES AND MY/OURS GAINS ARE LIMITED TO THE OPTION PREMIUM. ADDITIONALLY, WRITERS OF AMERICAN-STYLE CALL (PUT) OPTIONS MAY BE REQUIRED AT ANY TIME BEFORE EXPIRY TO DELIVER (PAY FOR) THE UNDERLYING SECURITIES TO THE FULL VALUE OF THE STRIKE PRICE MULTIPLIED BY THE NUMBER OF UNDERLYING COMMODITIES. I/WE RECOGNISE THAT THIS OBLIGATION MAY BE WHOLLY DISPROPORTIONATE TO THE VALUE OF PREMIUM RECEIVED AT THE TIME THE OPTIONS WERE WRITTEN AND MAY BE REQUIRED AT SHORT NOTICE16.

Risk Disclosure Statement. I/WE ACKNOWLEDGE THAT DUE TO THE VOLATILE NATURE OF COMMODITIES MARKETS, THE PURCHASE AND WRITING OF OPTIONS OVER COMMODITIES INVOLVES A HIGH DEGREE OF RISK. WARNING TO OPTION HOLDERS SOME OPTIONS MAY ONLY BE EXERCISED ON ITS EXPIRY DAY (EUROPEAN-STYLE EXERCISE) AND OTHER OPTIONS MAY BE EXERCISED AT ANY TIME BEFORE EXPIRATION (AMERICAN-STYLE EXERCISE). I/WE UNDERSTAND THAT UPON EXERCISE SOME OPTIONS REQUIRE DELIVERY AND RECEIPT OF THE UNDERLYING COMMODITIES AND THAT OTHER OPTIONS REQUIRE A CASH PAYMENT. AN OPTION IS A WASTING ASSET AND THERE IS A POSSIBILITY THAT AS AN OPTION HOLDER I/WE MAY SUFFER THE LOSS OF THE TOTAL PREMIUM PAID FOR THE OPTION. I/WE ACKNOWLEDGE THAT, . AS AN OPTION HOLDER, IN ORDER TO REALISE A PROFIT IT WILL BE NECESSARY TO EITHER EXERCISE THE OPTION OR CLOSE THE LONG OPTION POSITION IN THE MARKET. UNDER SOME CIRCUMSTANCES IT MAY BE DIFFICULT TO TRADE THE OPTION DUE TO LACK OF LIQUIDITY IN THE MARKET. I/WE ACKNOWLEDGE THAT YOU HAVE NO OBLIGATION EITHER TO EXERCISE A VALUABLE OPTION IN THE ABSENCE OF MY/OUR INSTRUCTION OR TO GIVE TO ME/US PRIOR NOTICE OF THE EXPIRATION DATE OF THE OPTION. WARNING TO OPTION WRITERS AS A WRITER OF AN OPTION I/WE MAY BE REQUIRED TO PAY ADDITIONAL MARGIN AT ANY TIME. I/WE ACKNOWLEDGE THAT AS AN OPTION WRITER, UNLIKE AN OPTION HOLDER, I/WE MAY BE LIABLE FOR UNLIMITED LOSSES BASED ON THE RISE OR FALL OF THE PRICE OF THE UNDERLYING COMMODITIES AND MY/OURS GAINS ARE LIMITED TO THE OPTION PREMIUM. ADDITIONALLY, WRITERS OF AMERICAN-STYLE CALL (PUT) OPTIONS MAY BE REQUIRED AT ANY TIME BEFORE EXPIRY TO DELIVER (PAY FOR) THE UNDERLYING SECURITIES TO THE FULL VALUE OF THE STRIKE PRICE MULTIPLIED BY THE NUMBER OF UNDERLYING COMMODITIES. I/WE RECOGNISE THAT THIS OBLIGATION MAY BE WHOLLY DISPROPORTIONATE TO THE VALUE OF PREMIUM RECEIVED AT THE TIME THE OPTIONS WERE WRITTEN AND MAY BE REQUIRED AT SHORT NOTICE.