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Risk Statement

Risk Disclosure for Commodity Interest Trading


This document outlines the significant risks associated with trading commodity interests. It's crucial to assess if such trading aligns with your financial circumstances.

Key Risks to Consider

  1. Commodity Options: Total loss of premium and transaction costs is possible.

  2. Trading in Futures and Foreign Currency: Risks include total loss of initial margin funds and additional funds for position maintenance.

  3. Margin Calls: Adverse market movements may necessitate quick additional margin funds. Failure to comply can lead to position liquidation and account deficits.

  4. Liquidity Risks: Under certain market conditions, it may be challenging to liquidate positions.

  5. Contingent Orders: Tools like "stop-loss" or "stop-limit" orders may not effectively limit losses.

  6. Spread Positions: These can have risks akin to "long" or "short" positions.

  7. Leverage Effects: High leverage can result in significant losses or gains.

  8. Managed Account Fees: Be aware of potential substantial management and advisory fees.


Before trading, thoroughly review the disclosure document and understand principal risk factors. Trade funds should be directly placed with a futures commission merchant or retail foreign exchange dealer.

Risk Disclosure Statement - Futures, Forex, and Options Trading

Compliance Note

This statement complies with CFTC Regulation 1.55(c) but does not encompass all possible risks in futures, Forex, and options trading.

Essential Risk Points

  1. Substantial Risk: Futures, Forex, and options trading involve significant risk and aren't suitable for everyone.

  2. Loss Potential: You may lose all funds deposited for trading, with potential for additional losses.

  3. No Insurance Protection: Funds are not insured against bankruptcy or misappropriation.

  4. No SIPC Protection: These funds don't have Securities Investor Protection Corporation protection.

  5. No Clearing Organization Guarantees: There's no guarantee or insurance from a derivatives clearing organization in case of merchant issues.

  6. Commingling of Funds: Your funds might be mixed with others', increasing risk.

  7. Merchant Investments: Understand the risks of financial instruments where merchants might invest your funds.

  8. Deposits with Affiliates: Increased risks due to merchants depositing funds with affiliates.

  9. Consultation Recommended: Discuss fund protections with your merchant.

  10. Market Conditions: Certain conditions can make it difficult to liquidate positions.

  11. Leverage Impacts: High leverage in futures and Forex can result in significant losses or gains.

Final Advice

Fully understand the inherent risks before participating in futures, Forex, and options trading.

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