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Risk Disclosure Agreement

Required agreement related to investment security risk and the platform.

General Marketplace Risks

Options Trading

Options trading generally is not appropriate for someone of limited resources and/or limited investment or trading experience or someone with low-risk tolerance. The risk of loss in trading options and other securities can be substantial. Consider all relevant risk factors, including your own personal financial situation, before engaging in any options trading. The possibility exists that you could sustain a substantial loss which could total more than your initial investment in a short period of time. Therefore you should not invest money that you cannot afford to lose. In particular, you should not fund options trading activities with retirement savings, student loans, second mortgages, emergency funds, or funds required to meet your living expenses. If you have any questions or concerns regarding the risks associated with trading, you should confer with a trusted and reliable, independent financial advisor. None of the Information or the Website provided by the Company constitutes a solicitation to trade any option or any investment or security of any kind.

Options

Options are widely considered a volatile investment class and are priced according to complex factors involving (among other factors) price, the volatility of the underlying asset, time until expiration, and interest rates. By their nature, therefore, options involve a high degree of financial risk. Risks associated with acquiring options include (without limitation): (i) the risk of losing your entire investment increases as the option goes out of the money and as expiration approaches; (ii) the risk that certain options do not have secondary markets on which to sell them, meaning that their value can only be realized upon expiration; (iii) the risk that a particular option contract may have specific exercise provisions that create additional risk; (iv) U.S. or other regulatory agencies may impose regulations or rules that impair your ability to realize value from options; and (v) the risk of losing your entire investment in a relatively short period of time. You should familiarize yourself with the type of Options (i.e. put or call) that you contemplate trading and the risks associated with them (not all of which are captured in this disclosure statement). In addition, options (unlike several other classes of securities) expire, thereby losing any value they might have if not sold or exercised prior to that expiration. This imposes a particular obligation on an options trader to ensure that his or her options are traded or exercised in a timely fashion.

Claims about Options Trading

Be wary of advertisements or other claims of large profits in options trading. While options trading can offer opportunities for potential gains, it is essential to approach any promises of substantial profits with caution and skepticism. Advertisements or claims of large profits in options trading often highlight exceptional scenarios which may not be representative of typical or average results. It is crucial to understand that trading involves inherent risks, and there are no guarantees of consistent or extraordinary profits. Furthermore, the performance of options trades can be influenced by various factors, including market conditions, volatility, economic events, and individual trader decisions. The potential for profits also comes with an inherent risk of losses. It is important to carefully assess the risk-reward ratio, as well as other potential factors, of each trade and establish appropriate risk management strategies. It is crucial to exercise due diligence and critically evaluate any investment opportunity or trading strategy before making decisions. Independent research and analysis are essential to understand the risks associated with options trading fully. Remember, trading involves uncertainties, and the outcome of any trade cannot be guaranteed. The potential for profits in options trading is always accompanied by the risk of losses. It is important to only trade with funds that you can afford to lose and to establish a diversified portfolio that aligns with your financial goals, risk tolerance, and investment horizon.

Option Contracts

Options, and the trading of options, are typically governed by a series of complex contracts. The intent of the legal documents and contracts might be unclear, and even clear drafting could be misconstrued by counterparties or by judges and arbitrators. A dispute over the interpretation of any of these documents or contracts could arise, which may result in unenforceability of the contract or other outcome that is adverse to you.

Underlying Securities

Options relate to underlying securities whose identifying characteristics, such as ticker symbols or other attributes, may change with little warning. A company might undergo a stock split, reverse stock split, spin-off, consolidation, or other corporate transaction that could affect the value of its equity interests independently of market trading. This, in turn, might have an effect on the effectiveness of your option positions. The Company is not obligated to provide you information regarding any change to the capital structure or other change to underlying issuers, and you are responsible for performing your own research in connection with the issuers to which your options relate.

General Economic and Market Conditions

The options market will be affected by general economic and market conditions, as well as by changes in laws, currency exchange controls, and international, national, and regional political and socio-economic circumstances. The options market may be sensitive to general swings in the overall economy or particular industries or geographies. Factors affecting economic conditions, including, for example, inflation rates, currency devaluation, exchange rate fluctuations, industry conditions, competition, technological developments, domestic and worldwide political, military and diplomatic events and trends, and innumerable other factors outside of your control and that of the Company, which can materially and adversely affect the availability or desirability of segments of the options market.

Regulators of Options and the Options Market

The courts, the Securities and Exchange Commission, another regulatory agency (whether the U.S. or otherwise), or the options markets themselves may, in the future impose additional restrictions on option trading. This could have an adverse effect on your existing portfolio of options or your options-trading generally.

Taxation

The trading of options can impose tax burdens and tax filing obligations on trade participants. Such considerations are complex and highly personal. You are urged to consult with your tax advisors with respect to your tax situation and the effect of engaging in options trading.

Counterparty Risk

The trading of options will leave you exposed to the risk that third parties that owe you money, securities, or other assets will not perform their obligations. These parties include trading counterparties, brokers, clearing agents, exchanges, clearinghouses, custodians, and other financial intermediaries. These parties may default on their obligations to you or to another third party due to bankruptcy, lack of liquidity, internal failure, or other reasons. Even outside these risks, certain counterparties (such as brokers, exchanges, and other intermediaries) may charge you commissions or impose other transaction expenses on you, which will be payable even if the associated transaction is not profitable. Accordingly, when trading options, you should determine the extent to which the value of the options must increase for your position to become profitable, taking into account all transaction costs.