ADDITIONAL RISK DISCLOSURES

The additional risks set forth below are not meant to be all-inclusive. Rather, we have highlighted certain significant risks related to foreign exchange trading.

General Risk

Customer understands and acknowledges that buying and selling securities, options, futures and other financial products that are denominated in foreign currencies or traded on foreign markets is inherently risky and requires substantial knowledge and expertise. Customers applying for OMEGA FINEX INCORPORATED Multi-Currency enabled accounts represent that they are aware of and understand the risks involved in trading foreign securities, options, futures, and currencies and that they have sufficient financial resources to bear such risks.

Customer Responsibility for Investment Decisions

Customer acknowledges that OF representatives are not authorized to provide investment, trading or tax advice and therefore will not provide advice or guidance on trading or hedging strategies in the Multi-Currency enabled account. Customers must evaluate carefully whether any particular transaction is appropriate for them in light of their investment experience, financial objectives and needs, financial resources, and other relevant circumstances and whether they have the operational resources in place to monitor the associated risks and contractual obligations over the term of the transaction. In making these assessments, OF strongly recommends that Customers obtain independent business, legal, and accounting advice before entering into any transactions.

Omega Finex Incorporated Account Disclosures

The margin policies of Omega Finex Incorporated require you to maintain margin in your Forex account at all times and for all open positions. Customers must have available in their Forex accounts the margin required for a particular Forex contract prior executing an order for such Forex contract. If your account is under margined, Omega Finex Incorporated may in its sole discretion and without prior notice to you, liquidate any and all of your open positions in Forex contracts, and you shall remain liable to Omega Finex Incorporated for any resultant loss or debit balance. Omega Finex Incorporated reserves the right to increase margin requirements at any time, without notice, and in its sole discretion.

Omega Finex Incorporated reserves the right to limit Forex position sizes at any time, without notice, and in its sole discretion. Omega Finex Incorporated reserves the right to (but is not obligated to) close out any Forex position, if at any time, Omega Finex Incorporated in its sole discretion deems necessary. If, under any circumstance, Omega Finex Incorporated deems it necessary to close out (in part or in whole) a Forex position, you hereby agree to accept full responsibility for any losses incurred and indemnify and hold harmless Omega Finex Incorporated.

Customer acknowledges that holding a Forex contract can subject Customer to significant risks including but not limited to availability of markets, trading systems, and inherent market risk.

Customer acknowledges and understands that trading Forex involves a high degree of risk and Customer is prepared to lose all funds utilized for trading. Customer acknowledges and understands that such trading could result in losses beyond Customer’s total investment.

Electronic Trading and Order Routing Systems Disclosure Statements

Most foreign exchange transactions occur outside of exchanges and electronic communication networks. Trading through an electronic trading or order routing system exposes you to risks associated with system or component failure. In the event of system or component failure, it is possible that, for a certain time period, you may not be able to enter new orders, execute existing orders, or modify or cancel orders that were previously entered. System or component failure may also result in loss of orders. Under no circumstances shall Omega Finex Incorporated or its liquidity providers have any responsibility or liability to you in the event that, whether because of electronic or other mechanical failure, system failure or delay, acts of God or terrorism, or any other reason, (a) You are unable to access or use the website or trading software, whether to place an order, receive account related information, or otherwise engage in any Forex-related activities, or (b) any liquidity provider sustains any mechanical, electrical or other failure, delay, interruption, or congestion, whether or not such results in a failure to maintain an orderly market, failure or delay in the execution, clearance, or confirmation of Forex transactions.

Forex trading exposes you to risk including, but not limited to, market volatility, volume, congestion, and system or component failures, which may delay account access and/or Forex trade executions. Prices can change quickly and there is no guarantee that the execution price of your order will be at or near the quote displayed at order entry (“slippage”). Account access delays and slippage can occur at any time but are most prevalent during periods of higher volatility, at market open or close, or due to the size and type of order.

Slippage

Slippage is a term referring to a market situation in which an order for a particular currency pair is filled at a price which is different from the requested price of the order because the price requested is no longer available. Slippage is possible on all order types. Slippage can occur at any time and under any market condition. The possibility of slippage increases during fundamental announcements, at illiquid times, at times of extreme market volatility, and at times of banking settlement date changes.

Customer acknowledges and agrees that increased volatility in the market can occur at any time, including, without limitation, prior to and/or during the release of fundamental data and newsworthy events. When economic data or world events are announced, the market may “gap” in a particular direction. This means that there are no tradable prices between the actual price at which the market was trading prior to the “gap” in a particular direction. Prices at any time can move very quickly and orders are filled in some cases at prices very far away from the order price. In addition, orders can be filled at prices outside of what is displayed on Omega Finex Incorporated’s trading system.

All orders at any time in Omega Finex Incorporated’s or Omega Finex Incorporated’s liquidity providers discretion may be withheld for manual review. You understand and acknowledge that orders held for manual review by Omega Finex Incorporated or Omega Finex Incorporated’s liquidity providers will significantly delay the execution of an order and may result in the order being rejected or canceled.

Trading Hours

Omega Finex Incorporated’s hours generally coincide with the global financial markets. The Forex market is open from 6:00 PM ET to 5:00 PM ET daily, Sunday through Friday. Beginning at 6:00 PM ET, Forex pairs may be opened at various intervals to ensure market liquidity. As part of routine daily maintenance, generally conducted between 1:00 AM ET – 3:00 AM ET, the trading platform may not be available.

You will not be able to close existing positions or open new positions when the market is closed during the week and over the weekends. Spreads (the difference between the bid price and ask price) typically widen around the open and close of trading, around fundamental announcements, when markets are volatile, and around banking settlement date changes, to reflect decreased liquidity in the global markets. It is possible for market prices to significantly change or “gap” when trading resumes during the week and on Sundays. Therefore, you must ensure that you maintain sufficient margin in your account at all times to avoid any liquidations. To reduce the risk of a liquidation, reduce or close your overall positions or add more funds to your account. To prevent unwanted order execution, consider widening your limit, stop, trailing stop, or any other order type prior to the market close.

If you wish to move money from your linked securities brokerage account to your Forex account, you must do so manually. Money movement restrictions apply during evening hours and on the weekend. If your Forex equity falls below your Forex margin requirement, you may not have the opportunity to add funds or close positions in order to avoid liquidation.

Other Risks

There are other risks that relate to trading foreign investment products and trading foreign currencies that cannot be described in detail in this document. Generally, however, foreign securities, options, futures and currency transactions involve exposure to a combination of the following risk factors: market risk, credit risk, settlement risk, liquidity risk, operational risk and legal risk. For example, there can be serious market disruptions if economic or political or other unforeseen events locally or overseas affect the market. Also, the settlement date of foreign exchange trades can vary due to time zone differences and bank holidays. When trading across foreign exchange markets, this may necessitate borrowing funds to settle foreign exchange trades. The interest rate on borrowed funds must be considered when computing the cost of trades across multiple markets. In addition to these types of risk there may be other factors such as accounting and tax treatment issues that Customers should consider.