OTS
Risk

Risk

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The risk of loss in trading commodity interests can be substantial. You should, therefore, carefully consider whether such trading is suitable for you considering your financial condition. In considering whether to trade or to authorize someone else to trade for you, you should be aware of the following:

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• - If you purchase a commodity option, you may sustain a total loss of the premium and of all transaction costs.

• - If you purchase or sell a commodity futures contract or sell a commodity option or engage in off-exchange foreign currency trading, you may sustain a total loss of the initial margin funds or security deposit and any additional funds that you deposit with your broker to establish or maintain your position. If the market moves against your position, you may be called upon by your broker to deposit a substantial amount of additional margin funds, on short notice, to maintain your position.

• - If you do not provide the requested funds within the prescribed time, your position may be liquidated at a loss, and you will be liable for any resulting deficit in your account. Under certain market conditions, you may find it difficult or impossible to liquidate a position. This can occur, for example, when the market makes a "limit move."

• - The placement of contingent orders by you or your trading advisor, such as a "stop-loss" or "stop-limit" order, will not necessarily limit your losses to the intended amounts, since market conditions may make it impossible to execute such orders.

• - A "spread" position may not be less risky than a simple "long" or "short" position.

• - The high degree of leverage that is often obtainable in commodity interest trading can work against you as well as for you. The use of leverage can lead to large losses as well as gains.

• - In some cases, managed commodity accounts are subject to substantial charges for management and advisory fees.

• This disclosure document contains important information, but this brief statement cannot disclose all the risks and other significant aspects of the commodity interest markets. You should, therefore, carefully study this disclosure document and commodity interest trading before you trade, including the description of the principal risk factors of this investment.

• This commodity trading advisor is prohibited by law from accepting funds in the trading advisor's name from a client for trading commodity interests. You must place all funds for trading in this trading program directly with a futures commission merchant or retail foreign exchange dealer, as applicable.

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Risk Disclosure Statement - Futures, Forex, and Options Trading

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The following statement is furnished pursuant to Commodity Futures Trading Commission ("CFTC") Regulation 1.55(c). This brief statement does not disclose all of the risks and other significant aspects of trading in futures, Forex, 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, Forex, 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.

The risk of loss in trading commodity futures contracts and foreign currency can be substantial. You should, therefore, carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should be aware of the following points:

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• - You may sustain a total loss of the funds that you deposit with your broker to establish or maintain a position in the commodity futures market or foreign exchange market, and you may incur losses beyond these amounts.

• - If the market moves against your position, you may be called upon by your broker to deposit a substantial amount of additional margin funds, on short notice, in order to maintain your position. If you do not provide the required funds within the time required by your broker, your position may be liquidated at a loss, and you will be liable for any resulting deficit in your account.

• - The funds you deposit with a futures commission merchant for trading futures and forex positions are not protected by insurance in the event of the bankruptcy or insolvency of the futures commission merchant, or in the event your funds are misappropriated.

• - The funds you deposit with a futures commission merchant for trading futures or forex positions are not protected by the Securities Investor Protection Corporation even if the futures commission merchant is registered with the Securities and Exchange Commission as a broker or dealer.

• - The funds you deposit with a futures commission merchant are generally not guaranteed or insured by a derivatives clearing organization in the event of the bankruptcy or insolvency of the futures commission merchant, or if the futures commission merchant is otherwise unable to refund your funds. Certain derivatives clearing organizations, however, may have programs that provide limited insurance to customers. You should inquire of your futures commission merchant whether your funds will be insured by a derivatives clearing organization and you should understand the benefits and limitations of such insurance programs.

• - The funds you deposit with a futures commission merchant are not held by the futures commission merchant in a separate account for your benefit. Futures commission merchants commingle the funds received from customers in one or more accounts, and you may be exposed to losses incurred by other customers if the futures commission merchant does not have sufficient capital to cover such other customers' trading losses.

• - The funds you deposit with a futures commission merchant may be invested by the futures commission merchant in certain types of financial instruments that have been approved by the Commission for such investments. Permitted investments are listed in Commission Regulation 1.25 and include U.S. government securities; municipal securities; money market mutual funds; and certain corporate notes and bonds. The futures commission merchant may retain the interest and other earnings realized from its investment of customer funds. You should be familiar with the types of financial instruments that a futures commission merchant may invest customer funds in.

• - Futures commission merchants are permitted to deposit customer funds with affiliated entities, such as affiliated banks, securities brokers or dealers, or foreign brokers. You should inquire as to whether your futures commission merchant deposits funds with affiliates and assess whether such deposits by the futures commission merchant with its affiliates increase the risks to your funds.

• - You should consult your futures commission merchant concerning the nature of the protections available to safeguard funds or property deposited for your account.

• - Under certain market conditions, you may find it difficult or impossible to liquidate a position. This can occur, for example, when the market reaches a daily price fluctuation limit ("limit move").

• - All futures, Forex, and options positions involve risk, and a "spread" position may not be less risky than an outright "long" or "short" position.

• - The high degree of leverage (gearing) that is often obtainable in futures and forex trading because of the small margin requirements can work against you as well as for you. Leverage (gearing) can lead to large losses as well as gains.

• - In addition to the risks noted in the paragraphs enumerated above, you should be familiar with the futures commission merchant you select to entrust your funds for trading futures positions. As of July 12, 2014, the Commodity Futures Trading Commission requires each futures commission merchant to make publicly available on its Web site firm-specific disclosures and financial information to assist you with your assessment and selection of a futures commission merchant.

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Additional Risks for Foreign Futures and Options Trading

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ALL OF THE POINTS NOTED ABOVE APPLY TO ALL FUTURES AND FOREX TRADING WHETHER FOREIGN OR DOMESTIC. IN ADDITION, IF YOU ARE CONTEMPLATING TRADING FOREIGN FUTURES OR OPTIONS