Risks statement

Risk statement of investment activity on the financial markets and deals execution using the tools Forex and CFD

Investment results, received during the last periods, can’t be a guarantee for profits receiving in the future. Fulfillment of trade operations on the financial markets with marginal financial tools open wide possibilities and allow the investors , ready to take risks, to receive high profit, but at the same time it carries potentially high risk of losses. That’ s why before starting trading it is necessary with full responsibility solve the question of investment strategy taking into consideration available resources.

This brief notification doesn’t inform about all risks connected with realization of investment into financial tools using marginal insurance. In case of any additional questions arise contact, please, the advisors of Ester Holdings Inc.

NOTING OF RISKS

The purpose of this Notification – to present to wide circle of the parties in interest the common, but possibly the more full information about risks which can arise by concluding the deals on market Forex and on other financial markets ,as well as to prevent possible losses (damages) by executing the operations with the financial tools Forex and CFD.

We’d like to draw your attention to that because of the variety of situations which can arise on financial markets, including market Forex, the list of risks in this Notification is not full and doesn’t disclosure the information about all risks, connected with investment into financial tools of the Market Forex and CFD. Investment activity with the financial tools of the market Forex and CFD differs by increased level of risk, because foresees deals fulfillment using credit shoulder and can lead to loss not only of expected profit from invested funds, but also to losses of invested funds. For purposes of this Notification under risk by executing operations with financial tools of the Market Forex and CFD we understand the possibility of arising the event, which has caused or may cause profit underpayment by the Client or loss of investment assets.

This Notification doesn’t have any purpose to make the Client refuse of the operations fulfillment with financial tools Forex and CFD, it is meant to help the Client to understand and evaluate risks, connected with investing in these financial tools and reasonably approach for making balanced investment decisions.

Trading on the markets Forex and other financial markets is connected with definite risks, trading in not full capacity.

Risks classification can be realized by different means, in particular, by this one, given below:

BY SOURCES OF ARISING:

System risk — risk, connected with the system functioning in total and not connected with definite financial tool. To the main system risks the following ones are related: political risk, risk of unfavorable (from the point of view of business realization) changes in legislation, macro economical risks (sharp devaluation of the national currency, crisis on the market because of the state debt obligations, banking crisis, currency crisis, etc.). To system risks the risks of arising force majeure circumstances are related. Non system (individual) risk — risk of the definite participant of the financial market: investor, forex-company, beneficial owner, trade system and others.

BY FACTORS OF RISK:

Economic risk — risk of arising of not favorable events of economic character. Probability of economic risks arise is usually higher then system risks arise. The following types of economic risks are defined:

Price risk — risk of losses because of not favorable changes of price. The whole line of tools has considerable intraday ranges of prices changes, which implies a high probability of receiving by trade operations both profits and losses;

Currency risk — risk of losses from not favorable changes of currency exchange rates;

Interest risk — risk of losses from not favorable changes of interest rates;

Inflation risk — risk of loss of purchasing power of money;

Liquidity risk — potential possibility of difficulties arise with sale or purchase of financial tool at the definite moment, which can also lead to the amount increase of spread. High spread considerably makes difficult usage of limit stop orders, presented for limiting the range of losses by opening the position (stop-loss). To avoid serious losses the Client will have to follow the situation on the market continuously and exercise considerable activity by managing his positions;

Legal risk — risk of legislative changes (legislative risk) — probability of losses by entering new or change (cancelling) of current legislative acts, including tax ones. Legal risk also includes possibility of losses because of the absence of normative-legal acts, regulation the activity on the financial market, in particular on the market Forex;

Social and political risk — risk of radical change of political and economic situation , risk of sociable non stability, including strikes, risk of the beginning of military actions;

Criminal risk – risk connected with illegal acts by third parties , for example :fraud, non sanctioned access to computer systems and confidential information, etc.

Operational (technical, technological, staff) — risk of direct and implied losses because of failure of informational, communication, electronic, electrical and other systems, or because of mistakes connected with imperfection of the market infrastructure, including of the technology of operations fulfillment, procedures of management, accounting and controlling or because of the staff activity. Thus, by working with the client’s terminal failures can arise because of faulty operation of apparatus means, software failures, not correct adjustments, old version of software or poor quality of connection on the side of the client. At the moment of peak loads (for example, by translation of the economic news) the Client should recognize the possibility of overloading of the channel of connection and limiting in contacting by telephone with forex-company.

Nature risk — risk, which doesn’t depend on an individual activity (risks of acts of the God: earthquakes, floods, hurricanes, typhoons, lightning, etc.).

Technology related risk — risk as a result of a person economic activity: emergencies, fires, etc.

BY ECONOMIC EFFECTS ON THE PERSON:

Risks of profit losses — probability of the event arise, which involves partial or full loss of expected income from the investment;

Risks of losses of invested funds — probability of the event arise, which involves partial of full loss of invested funds;

BY CONNECTION OF THE CLIENT WITH THE SOURCE OF RISK:

Direct risk — source of risk is directly connected with any relations with the Client;

Implied risk — probability of arise of not favorable for the Client event by the source, not connected directly with the Client, but involving the line of events, which as a result bring losses to the Client.

By deals fulfilment by the Client the following additional specific types of risks arise:

Operations with financial instruments of the Forex and CFD market, characterized by increased level of risk, because of the effect of the lack of credit shoulder comparatively not high change of the course of the tool can have considerable influence of the state of trade account of the Client.

In case if there is a situation on the financial market, not favorable for take by the Client position on the market, there is a probability in comparatively short term get losses in amount of the initial deposit and any additional funds, deposited by the Client for supporting open positions, concluding Contracts and

Deals fulfillment under the Contract.

By not favorable for the Client prices movement, in cases, foreseen by the Contract and Regulations of the Interaction between the Client and the Company, the Client’ position can be liquidated forcibly, which can lead to the risk realization of income loss and risk of loss of invested funds. The Client will bear the responsibility for any formed by this event losses.

Due to the conditions formed on the Forex market it may become difficult or impossible to close the opened before position of the Client by desired by him price. Rise of such situation is possible, for example, by rapid prices change.

Stop-orders, directed for losses limitation, don’t always limit losses for calculated beforehand level, because by rapid change of prices on the market the price of deal fulfillment can considerably differ from stop-price in worse direction.

The Company hereby notifies you that the Company enters similar Agreements with the third parties, and also takes orders from the third parties under other agreements and fulfills deals and other operations with the financial tools of Forex and CFD markets in interests of the third parties and its own interests.

The Company hereby notifies the Client that deals and other operations with financial tools of Forex and CFD markets in interests of the third parties and in own interests of the Company can become the reason of conflict between property and other interests of the Company and You.

As well the Client is notified that the Company doesn’t give any guarantee for profit and doesn’t give any warranties relating profits from the operations , conducted by it under the Contract with the Client. The Client on his own takes decision on fulfillment on the financial market operation with the financial tools, and defines financial strategy also on his own.

Operations on markets Forex and other financial markets can involve financial losses, the last experience doesn’t define the financial result in future. Any financial success of other parties doesn’t guarantee receiving of the same results for the Client.

Taking into consideration all above mentioned, the Client should investigate with great attention the question, either he will be able to accept risks connected with the fulfillment of the operations with the financial tools on the Forex and CFD markets, taking into account his own investment purposes and financial possibilities.

All above mentioned is not goaled to make the Customer refuse from deals fulfillment, it has only the purpose to help the Client to understand risks for such type of business activity, define their acceptability, evaluate his own financial purposes and possibilities and reasonably come to solving the issue about selection of correspondent investment strategy.