Risk Disclosure Statement for Futures and Options

This brief statement does not disclose all of the risks and other significant aspects of trading in futures and options. In light of the risks, you should undertake such transactions only if you understand the nature of the contracts (and contractual relationships) into which you are entering and the extent of your exposure to risk. Trading in futures and options is not suitable for many members of the public. You should carefully consider whether trading is appropriate for you in light of your experience, objectives, financial resources and other relevant circumstances.

Futures

Effect of "Leverage" or "Gearing"
Transactions in futures carry a high degree of risk. The amount of Initial margin is small relative to the value of the futures contract so that transactions are 'leveraged' or 'geared'. A relatively small market movement will have a proportionately larger impact on the funds you have deposited or will have to deposit: this may work against you as well as for you. You may sustain a total loss of initial margin funds and any additional funds deposited with the firm to maintain your position. If the market moves against your position or margin levels are increased, you may be called upon to pay substantial additional funds on short notice to maintain your position. If you fail to comply with a request for additional funds within the time prescribed, your position may be liquidated at a loss and you will be liable for any resulting deficit.

Risk-reducing orders or strategies
The placing of certain orders (e.g., "stop-loss" orders, where permitted under local law, or "stop-limit" orders) which are intended to limit losses to certain amounts may not be effective because market conditions may make it Impossible to execute such orders. Strategies using combinations of positions, such as "spread" and "straddle" positions, may be as risky as taking simple "long" or "short" positions.

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Options

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 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 options 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-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 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 unfavorably. 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 interest or a future or another option, the risk may be reduced. 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 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
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.

Deposited cash and property
You should familiarize yourself with the protections accorded money or other property you deposit for domestic and foreign transactions, particularly in the event of a firm insolvency or bankruptcy. 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 has 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 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 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.

Electronic trading
Trading on an electronic trading system may differ not only from trading in an open-outcry market but also from trading on other electronic trading systems. If you undertake transactions on an electronic trading system, you will be exposed to risks associated with the system including the failure of hardware and software. The result of any system failure may be that your order is either not executed according to your instructions or is not executed at all.

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 familiarize yourself with applicable rules and attendant risks.

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FX Risk Disclosure

Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your Investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your Investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

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CFD’s Risk Disclosure

Suitability of CFDs
CFDs are leveraged transactions, so profits and losses can be substantial and sudden. Consequently, they are only suitable for experienced or professional investors. CFDs are traded principal to principal with no centralized market quote. As such they are deemed to be off-exchange or over-the-counter (OTC) products and are not specifically covered by any stock exchange rules.
CFDs are very flexible, geared instruments and to be used successfully, an investor must have a clear view of an expected price movement and a well developed sense of the risk he is taking. He should monitor his positions and use stop loss and limit orders as risk management tools.
CFDs are regulated in the UK by the Financial Services Authority (FSA) in accordance with the Financial Services and Markets Act 2000. All CFD transactions are reported daily to the FSA and regulated firms must have sufficient financial resources to support the volume of their CFD trading at all times. Transactions with clients outside the UK but within the European Union are approved under the EU ISD passport scheme by local regulators.

Beneficial Ownership
The agreement reached between the two trading parties to a CFD is to exchange the profit or loss on a stated transaction and does not involve any exchange of ownership of the underlying asset. As such the owner of the 'long' side of the transaction based on an underlying equity has no voting rights or any right to instruct the seller to act in any particular manner, as in a takeover situation.

Transaction Costs
The price at which an equity CFD trades is normally that of the underlying equity and is subject to the normal market conditions at the time of trade. For example, the price may be different when dealing in 1,000 as opposed to 100,000 shares. Clients should normally expect to pay a commission to IFX in line with the charge that would have been applicable had the transaction taken place in the underlying asset.

Securing the Transaction
With the majority of derivative transactions the settlement period can be several weeks from the time of trade and in order to protect the integrity of the market, clients are required to secure their positions by posting margin. CFDs do not have predetermined settlement dates and require a collateral deposit to cover potential liabilities.

Margin
In order to protect the integrity of the market, clients are required to post margin to cover potential liabilities arising from price movement. Margin is calculated on the underlying asset value for equity CFDs; it is expressed as a percentage of the value and the rate varies according to the volatility of the market or the individual asset. Margin for index future CFDs is quoted as a multiple of the stake. As a guideline only, equity CFD will typically require a margin of 10% - 20%, while index future CFDs tend to require less, due to their lower volatility. Cleared funds in excess of the margin requirement are usually required prior to dealing.

Marking to market
Marking to market is a daily adjuaspent to the margin requirement based on the movement in the value of the underlying asset. Any shortfalls in margin must be covered immediately. If they are not the position may be closed irrespective of the client's wishes. Margin deposits are required in cleared funds, but mark-to-market excesses or deficits are not credited or debited to the ledger account until closure of the position.

Dividends
Following a purchase of an equity holding, an investor is entitled to receive any dividends paid by that company. Although not the beneficial owner of the shares, a holder of a long CFD is entitled to receive a cash sum similar to any dividend declared by the company while the position is held (less any tax or administration charges). Conversely, the holder of a short CFD is required to pay a sum equal to the gross dividend, irrespective of whether he holds the underlying position. The deciding date for the entitlement to a dividend is the same as the ex-dividend date declared by the underlying company.
Clients are advised to check the dates of any impending dividends before entering into CFD positions.

Capital Adjuaspents
As a CFD position reflects the exposure of either a purchaser or seller of shares in an underlying company it will also reflect any capital adjuaspents or benefits announced by the company. Applying the same formula used by the relevant exchange, CFD terms will be altered to reflect any capital adjuaspent. Any alteration will be on such terms as deemed to be fair and equitable to both parties to the transaction. Capital adjuaspents covered include bonus, rights and warrant issues, and amalgamation and sub-divisions of share capital. With regard to takeover situations please refer to the comments under the section headed Compulsory Closing of Positions.

Closing Positions
Any financial transaction is subject to the prevailing market conditions at the time of trade. Any derivative will relate to underlying market sentiment in general and to a specific underlying instrument in particular.
If a client has an open CFD position he can expect to be able to close it at his discretion. The price obtained will be governed by the circumstances detailed above, but at the time of trade the price should be broadly the same as that of the underlying instrument.

Compulsory Closing of Positions Normally, an equity CFD will remain open until the holder decides to close the position. However, there are certain circumstances under which the position will be closed, irrespective of the client's wishes.

Takeover of the company underlying the CFD. At times, companies on which CFDs are open will be subject to takeover bids, either agreed or hostile. Positions in CFDs may remain open or be opened during this time. However, any open position will be closed out at the prevailing market price one day prior to the last day the shares are quoted in their existing form.
The client's failure to meet any Margin requirements. As previously explained, Margin is calculated daily on a mark-to-market basis. If there is any shortfall it must be covered on the same day as the margin call. Failure to do so may result in the position being closed at the prevailing market price, irrespective of the client's view. Any shortfall will be deducted from the Initial Margin deposit and any resulting balance will be credited to the client's account.

Settlement Services
Clear and concise account valuations are produced on a daily basis or on demand intra-day as required. We calculate a client's margin requirement on the net value of the open positions on the account. Daily account valuations in English are prepared and transmitted to clients, by email or fax, from approximately 7.00am central European time.
We offer our clients the full benefits of a 24-hour back office, so wherever you are in the world, whatever your time zone, you can contact us. Whether you wish to check your account balance, order statements or transfer funds, we are here to help 24 hours a day.
Our Back Office and Settlements Department can be contacted continuously from 7.00am central European time on Monday to 7.00am each Saturday.

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Single Stock Futures (SSF) Risk Disclosure

Trading security futures contracts may not be suitable for all investors. You may lose a substantial amount of money in a very short period of time. The amount you may lose is potentially unlimited and can exceed the amount you originally deposit with your broker. This is because futures trading is highly leveraged, with a relatively small amount of money used to establish a position in assets having a much greater value. If you are uncomfortable with this level of risk, you should not trade security futures contracts.

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