Transactions in spot foreign exchange, spot metals and other off-exchange derivative contracts carry a high degree of risk. The amount of initial margin is small relative to the value of the contract, so that transactions are “leveraged”. A relatively small market movement will have aproportionately larger impact on the funds lodged by the Customer. This may work against you as well as for the Customer. You may sustain a total loss of initial margin funds and any additional funds deposited with the firm to maintain your position. If the market moves against your position or margin levels are increased, you may be called upon to pay substantial additional funds on short notice to maintain your position. If you fail to comply with a request for additional funds within the time prescribed, your position may be liquidated at a loss and you will be liable for any resulting deficit. Placing of certain orders (e.g., ‘stop-loss’ or ‘stop-limit’ orders) that are intended to limit losses may not always be effective due to hectic market conditions or technological limitations that may make it impossible to execute such orders. Strategies using combinations of positions, such as hedging strategies, may be as risky as taking ‘long’ or ‘short’ vanilla positions. Illiquid Market conditions, changes in government regulation or trading restrictions with respect to certain markets may increase the risk of loss by making it difficult or impossible to effect transactions or liquidate/offset positions. SKYLINE TRADER will bear no liability for any failure to effect any such transactions should such events arise. Off-exchange transactions (over thecounter) may be less regulated or subject to a separate regulatory regime. Before you undertake such transactions, you should familiarize yourself with applicable rules and attendant risks.

The markets are generally closed for trading during week-ends when various news events anddevelopments may arise causing the markets to open at a significantly different price from wherethey closed on Friday. Customers will not be able to use the SKYLINE Trader online trading software to place orders when the markets are closed. There is a substantial risk when no stop-loss orders are left to protect open positions held over weekends, especially when the markets open at levels significantly worse than their specified price.

In case of system failure or other interruption, orders may not be executed according to Customer’s instructions or Customer may not be able to place or change orders.

SKYLINE TRADER
shall not be liable for any such failure of hardware or software, system downtime or communications interruption. Further, SKYLINE TRADER does not warrant that Customer will be able to maintain a continuous and uninterrupted link with the internet and shall have no liability for any such failure.

Unlike the regulated exchanges, there are no limits on daily price movements when trading OTC instruments and other off-exchange derivatives. Therefore not all of the Customer protections generally found in the regulated exchange markets are present in the OTC instruments and offexchange derivatives. OTC and off-exchange transactions may be less regulated or subject to a separate regulatory regime. Before undertaking such transactions, Customer should familiarize itself with applicable rules and risks.

Customer enters a trade and opens a position with SKYLINE Trader in its capacity as a counter party.

SKYLINE TRADER online trading software is not a marketplace or an exchange. There are no guarantees to the credit worthiness of SKYLINE Trader SKYLINE TRADER has the right, in its sole discretion, to cease trading in any OTC and off-exchange derivative instrument at any time, and in such event Customer will be prevented from liquidating an adverse position. Such actions may result in a substantial loss to Customer

Customer may be introduced to SKYLINE TRADER by an Introducing Broker. It is
important to note that SKYLINE Trader and Introducing Broker are separate and independent from one another without an employee, agency or partner relationship.