This brief statement does not disclose all of the risks and other significant aspects of trading foreign exchange contracts. In light of these 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 foreign exchange contracts is not suitable for some customers. You should carefully consider whether trading is appropriate for you in light of your experience, objectives, financial resources and other relevant circumstances.

1. Effect of "Leverage" or "Gearing".
Foreign exchange contracts carry a high degree of risk. The amount of initial margin is small relative to the value of the foreign exchange 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. For example, an account with Rich Victor Trading permits you to trade foreign exchange contracts on a highly leveraged basis (up to approximately 400 times your account equity). The funds in an account trading at maximum leverage can be completely lost if the positions held in the account have a one-half percent adverse swing in market move.

2. Risk-reducing orders or strategies.
Placing contingent orders, such as “stop-loss” or “stop-limit” orders, will not necessarily limit your losses to the intended amounts, since market conditions on the exchange where the order is placed 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.

3. Charges.
Before you begin to trade, you should obtain a clear understanding of all charges for which you will be liable. These charges will affect your net profit (if any) or increase your loss.

4. 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 not executed at all. Since Rich Victor Trading does not control signal power, its reception or routing via Internet, configuration of your equipment or reliability of its connection, we cannot be responsible for communication failures, distortions or delays when trading online (via Internet). In no event shall Rich Victor Trading be liable for speculative or expectancy damages for potential future lost profits.

5. Margin.
Rich Victor Trading margin policies require that your account be properly margined at all times. In order to do so, it may be necessary to deposit substantial additional funds. Failure to meet margin requirements may result in the liquidation of any open positions with a resultant loss. Rich Victor Trading reserves the right to liquidate all positions, without notice or margin call, if an account falls below our minimum equity level.

6. Password protection.
You are obligated to keep passwords secret and ensure that third parties do not obtain access to the trading facilities. You will be liable to Rich Victor Trading for trades executed by means of your password even if such use may be wrongful.

7. Quoting errors.
Should quoting errors occur, which may include, but are not limited to, a mistype of a quote by Rich Victor Trading, a quote which is not representative of fair market prices, an erroneous price quote from an Rich Victor Trading employee, such as but not limited to a wrong big figure quote or an erroneous quote due to failure of hardware, software or communication lines or systems and/or inaccurate external data feeds provided by third-party vendors, Rich Victor Trading will not be liable for the resulting errors in account balances. The foregoing list is not meant to be exhaustive and in the event of a quoting error, Rich Victor Trading reserves the right to make the necessary corrections or adjustments on the account involved. Any dispute arising from such quoting errors will be resolved on a basis of a fair market value of a currency at the time such an error occurred. In the event of a system error where interest is not charged as scheduled, Rich Victor Trading reserves the right to apply the missed interest to the account at any time.

8. Third-Party Authority.
In the event that you grant trading authority or control over your account to a third-party (Trading Agent), whether on a discretionary or non-discretionary basis, Rich Victor Trading shall in no way be responsible for reviewing your choice of such Trading Agent or for making any recommendations with respect thereto. Rich Victor Trading makes no representations or warranties concerning any Trading Agent; Rich Victor Trading shall not be responsible for any loss to you occasioned by the actions of the Trading Agent; and Rich Victor Trading does not, by implication or otherwise, endorse or approve of the operating methods of any Trading Agent. If you give a Trading Agent authority to exercise any rights over your account, you do so at your own risk.