Disclaimer

The purpose of this overview is making the Client aware of the basic risks that are related to investments in securities, currencies or other financial instruments, as well as to the operations with standard contracts or other financial instruments.

This overview does not contain a comprehensive list and description of all the risks which the Client may be exposed to when making operations with financial instruments.

The Client shall take account of this circumstance and make its own analysis and assessment of both the risks mentioned herein and any other risks when making any decision.

Country risk / political risk

A possibility that in the country where the securities are registered or kept, or where circulate the financial instruments will occur the events which will affect the political and/or economic stability of this country, as a result of which the Client will lose all or some of its investments in this country or bear significant losses from the investment that he/she/it made.

Currency risk

A possibility that the currency rates will change in such a way that the value of securities, the prices of which are determined in another country’s currency, as expressed in the national currency, will change in a way that is disadvantageous for the Client.

Liquidity risk

A possibility that it will be impossible at a certain time to sell the securities or other financial instruments at a price that would be insignificantly different from the prices of the last market transactions with those securities.

Price risk

A possibility that the prices of the financial instruments will change in a way that is disadvantageous for the Client. A consequence of this possibility coming true may be lesser return on investments or loss of all or some of the funds that were invested in the financial instruments.

Credit risk

A possibility that the issuer of the debt liability purchased by the Client will not perform its liabilities to repay the debt and to pay interest when due or at all.

Interest rate risk

A possibility that the interest rates or the difference between the interest rates, to which the Client’s financial instruments are related, or the shape of the return curve will change in such a way that it will cause insufficient receipt of earnings by the Client or losses for the Client.

Depository / custodian risk

The Client understands and accepts the risks arising when the Client's property is combined with funds of other Clients of the Investment firm and their use is vested by the Investment firm in its interests. A possibility that all or some of the Client’s securities, for the custody of which the Investment firm uses the services of an external depository and/or (sub)custodian, will be lost due to the insolvency, negligence or fraud from the part of that depository and/or (sub)custodian.

Tax risk

A possibility that amendments to normative legal regulations and application of normative legal regulations by persons who are responsible for charging tax on the income (withholding agent), e.g. by security issuers, will cause deduction of some income earned by the Client from the transactions with financial instruments, and a possibility that the Client will not be able to use the privileges arising out of contracts for avoidance of double taxation between his/her/its country of residence and the countries of the contracts for the reason that the Client’s financial instruments will be regarded by the tax authorities (withholding agents) as belonging to the Investment firm.

Legal risk

A possibility that because of not knowing the valid and/or coming into effect in future legal regulations that are applicable to transactions with financial instruments the Client will bear extra costs, suffer unexpected liabilities after purchase of financial instruments, or will not be able to use his/her/its rights or perform his/her/its liabilities as an owner of the financial instruments, including the securities.

Read more in Appendix nr. 1 Overview of Risks