FORMAX

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Trading in margined foreign exchange involves a high degree of risk including the risk of loss of the Customer's entire Risk Capital deposited with FORMAX. Losses, in some cases, have the potential to extend beyond the Customer's Account Value. In consideration of FORMAX agreeing to enter into Foreign Exchange Contracts with its Customer(s) for this Account, FORMAX requires all the undersigned Customer(s) to analyze their financial objectives, financial status, investment constraints and tax situation to determine whether OTC Foreign Exchange trading is suitable. In addition, we require our Customers to carefully read and acknowledge the FORMAX Risk Disclosure Statement that outlines without limitation the risks associated with trading margined foreign exchange through FORMAX. By signing this Agreement the Customer understands and agrees that:

1. OTC Margined Foreign Exchange Trading involves a high amount of risk and is highly speculative:
By signing the Risk Disclosure Statement, the Customer(s)agrees that they are in full understanding and willing to assume the legal, economic, and other risks associated with the trading in margined OTC Foreign Exchange, and are willing and able to assume the loss of their entire Risk Capital, defined as those funds, that if lost, would not change your lifestyle or your family's lifestyle. As such, they further agree that margined OTC Foreign Exchange trading is not suitable for Retirement Funds. We encourage customers to closely manage outstanding open positions and to use prudent money management precautions such as, but not limited to, Stop Loss Orders.

2. Excessive leverage available with Margined OTC Foreign Exchange can lead to quick losses:
By signing the Risk Disclosure Statement, the Customer(s) agrees that using a high degree of leverage, defined as the use of a small amount of capital to control a larger amount of an Open Position, can result in large losses due to a price change(s) of open Foreign Currency Contract(s) with FORMAX. We provide leverage on most Currency Pairs for most customers of 100:1. With 100:1 leverage the Customer has the potential to control $1,000,000 position with $10,000 in an Account. FORMAX encourages its Customers to use only that portion of leverage that the Customer is most comfortable with and to use money management precautions such as, but not limited to, Stop Loss Orders for the purpose of limiting risk. FORMAX reserves, at its sole discretion, the right to reduce or increase the amount of leverage given on any Currency Pair at any time and without notice.

3. OTC Margined Foreign Exchange trading experience periods of liquidity risk:
By signing the FORMAX Risk Disclosure Statement, the Customer acknowledges that Liquidity Risk, resulting from decreased liquidity of a currency pair, is usually due to unanticipated changes in economic and/or political conditions. Customer also acknowledges that Liquidity Risk can affect the general market in that all participants experience the same lack of buyers and/or sellers.The Customer also understands that liquidity risk can be FORMAX specific due to changes in liquidity available to FORMAX from a FORMAX Custodian of funds interbank liquidity providers or specific to retail foreign exchange market makers due to a perception that the risks of the market segment has increased. When liquidity decreases, Customers can expect, at the minimum, to have wider bid to ask spreads as the supply of available bid/ask prices, outstrips the demand. Decreases in liquidity can also result in "Fast Market" conditions where the price of a currency pair moves sharply higher or lower or in a volatile up/down pattern without trading in an ordinary step-like fashion. In some instances, there may exist the possibility that a trading bid and/or ask price for a foreign exchange pair or pairs are not available (a situation where there is no liquidity). Although there may be instances when the aggregate OTC foreign exchange market enters a "Fast Market"; situation or periods where liquidity is in short or no supply, it is important to note that, FORMAX Pro's prices, bid/ask spreads and liquidity will reflect the prevailing interbank market liquidity for FORMAX. FORMAX can Liquidate Positions of the Customer that do not have adequate margin: Because of the leverage available with OTC Margined Foreign Exchange Trading and the potential for extreme volatility, an FORMAX Custodian of funds reserves the sole discretionary right to liquidate Customer's Account(s) should the Margin in the Account not be sufficient to cover the potential risk of loss. FORMAX graphically shows the Customer's Liquidation Level on the Customers FORMAX Margin Monitor. Should the Customer's Account value go below the free of programming bugs that can cause trading, position keeping or any other required functionality of the FORMAX Internet Trading Platform and other relevant software applications associated with FORMAX including but limited to clearing, market making and escrow account software, from becoming inoperable or without errors.

4. There is a Communication Risk that the Customer assumes:
Although FORMAX will have qualified representatives available on the telephone during business hours to accept and execute Customer Market Orders, there exists the risk that the Customer will not be able to contact or make contact with the FORMAX representative due to but not limited to, communication malfunction, an overabundance of telephone orders, or any other malfunction or negligence. The Customer acknowledges and agrees that they will hold harmless FORMAX for any loss or missed trading opportunity resulting from any communication problems the Customer may encounter.

5. FORMAX does not take responsibility for Third Party Account Managers:
Should a Customer grant a Third Party Account Manager trading discretionary trading authority or control over a Customer's Account, the Customer acknowledges that FORMAX does not take any responsibility for any action done by that Third Party on the Customer's behalf. The Customer grants Third Party trading authority for the Customers Account at it sole, and full risk. FORMAX reserves the right to correct any deals executed on misquoting errors: In the case when a quoting error occurs that results in a Customer deal done at an off-market price, FORMAX reserves the sole discretionary right to make the necessary corrections and adjustments to the Customer's Account whether it be in the favour of the Customer or not in the Customer's favour. Any change will be reported to the Customer either verbally or via an electronic method such as but not limited to email.

6. All Market Recommendations made by FORMAX or any representative of FORMAX are for informational purposes only:
Any decision by the Customer to buy or sell a Foreign Currency pair is an independent decision by the Customer. Market recommendations made by FORMAX or a representative of FORMAX do not constitute an offer to sell or buy any Foreign Currency pair from FORMAX or from any other source that may provide dealing prices to the Customer. FORMAX and its employees are not investment advisor(s) and have no fiduciary duty to Customer and therefore is not liable for any losses incurred by the Customer as a result of information or any recommendations made by FORMAX or representative of FORMAX. Customer is at Risk if FORMAX should go out of Business: There is no guarantee that FORMAX as a business will be profitable. Consequently, there exists a credit risk that FORMAX may be subject to losses, which could, in turn, jeopardize the capital that the Customers have in their Accounts. Customer acknowledges that in the event of insolvency, the Customer can only look to FORMAX for performance and return of all Collateral and Margin that the Customer may have at FORMAX.

7. FORMAX may decide to exit the OTC Margined Foreign Exchange Business:
As a result, the Customer agrees and acknowledges that FORMAX may liquidate all Customer positions, and return margined funds to the Customer at the sole discretion of FORMAX, at any time and for any reason. FORMAX Customers do not hold FORMAX liable for any loss as a result of liquidation of the Customers position either on an actual basis or as a result of missed profit opportunities.

8. Customers are responsible for any reporting errors:
Any reporting and confirmation errors of omission, and/or errors in details of transactions including but not limited to the price contracts were executed, the currency pair traded, the market direction (i.e.'buy' or 'sell') of order, the type of order and/or any errors in fees, charges or credits to the Customer's Account including but not limited to charges for executing a transaction, wiring funds, rolling over position, and sweeping foreign currency balances into the home currency, require that the customer notify FORMAX immediately upon discovery for review. In addition, the Customer is responsible to submit any errors in writing to FORMAX and send the complete details to Attn: Customer Objections, PO Box 3170 Nemours Chambers Road Town, Tortola British Virgin Islands VG1110. Notice shall be deemed received only if actually delivered or mailed by registered mail to, return receipt requested.

9. Risks from deals done over telephone:
FORMAX will only accept Market Orders for deals done over the telephone. Telephone deals are considered executed when the FORMAX representative says, 'done'; and relays the complete deal details. Any given price by a FORMAX representative over the telephone prior to execution is considered indicative. FORMAX reserves the right to change the indicative price given over the phone if the actual dealing price is different due to market conditions, misquote or volatility. FORMAX is not responsible for Customer telephone orders if the Customer cannot be heard or understood by the FORMAX representative due to, without limitation, accent, speech defect, faulty connection, or excessive background noise at the Customers location or at FORMAX. To better insure execution, FORMAX requires that Customers communicate in English when giving orders. FORMAX cannot guarantee that telephone orders given in a foreign language will be executed. For best results and fast execution, the following procedure will be used:

9.1 The Customer will first be asked by the FORMAX representative the following Account Information:

Only after the FORMAX representative confirms the Customer's identity, the Customer should relay the following order information:

9.2 The execution direction to Buy or Sell, the number of lots, and the desired currency pair.

9.3 The FORMAX representative will then repeat the order information for the Customer to confirm. For example the FORMAX Representative may say the following, 'Buy 2 lots of EUR vs USD at the Market. Confirmed?'; By saying, 'Yes'; the order will be executed at the Market and the details immediately given to the Customer after execution. The FORMAX representative will enter the deal into the Customer's Account. The details and effects of the deal will be reflected in the Customer's Online Reports. FORMAX does not warrant that deals done over the telephone will be done at prices that mirror the prices displayed electronically at that time over the FORMAX Internet Trading Platform. FORMAX reserves the right to charge a commission for deals done over the telephone. Should FORMAX charge a commission for telephone deals, it will be reported on the FORMAX Website and be reflected as a line item debit in your FORMAX Account Reports. All deals and charges done via the phone are final. FORMAX reserves the right to tape all telephone calls without knowledge of the Customer. FORMAX is not responsible or liable if the tapes of the telephone calls are erased or never recorded because of error, omission or any reason. FORMAX is also not liable should User Name and Account information be obtained knowingly or unknowingly by a Third Party and as a result, deals done in the name of the Customer without his or her knowledge or authorization.

9.4 FORMAX has limited liability:
The Customer agrees and acknowledges that FORMAX shall not be liable to the Customer for any claims, losses, damages, costs or expenses, including attorneys' fees caused directly or indirectly by any events, actions or omissions, without limitation, claims, losses, damages, costs and expenses, including attorney's fees, resulting from civil unrest, war, insurrection, international intervention, governmental action) including, without limits, exchange controls, forfeitures, devaluations and nationalizations), natural disasters, acts of God, market conditions, communication problems or any delay, disruption, failure of any transmission or communication system or computer hardware or software application whether supplied and belonging to FORMAX or from a third party vendor that the Customer and FORMAX relies on to conduct execution and reporting services.

ANTI-MONEY LAUNDERING PROCEDURES.

Customer agrees to and acknowledges that FORMAX may conduct the following procedures at the time of the opening and throughout the existence of the Account: a. Identity Verification. To help the government fight the funding of terrorism and money laundering activities, FORMAX is required to obtain, verify, and record information that identifies each person who opens an Account with FORMAX. When Customer opens an Account, FORMAX is required to collect information such as the following:

a) Customers name; Date of birth; Permanent address; and Identification number. FORMAX may verify Customer's identifying information by performing a credit check, or requiring Customer to provide a driver's license or other identifying documents.

b) Monitoring; FORMAX may monitor the trading activity in Accounts to investigate or identify potential money laundering.

c) Prohibited Banks Verification; FORMAX is prohibited from conducting business with the following entities (Section 311 entities ): Banco Delta Asia; VEF Banka; Commercial Bank of Syria; Syrian Lebanese Commercial Bank; Myanmar Mayflower Bank; Asia Wealth Bank; Any Burmese banking institution, including foreign branches; And any subsidiaries of the above entities. The Customer may not, directly or indirectly, deposit money into the FORMAX trading Account from a Section 311 entity. Nor may the Customer, directly or indirectly, withdraw money from the FORMAX trading Account to any Section 311 entity. If we become aware that any Section 311 entity is associated with a Customer's FORMAX trading Account, we will take appropriate steps to prevent such access, including, where necessary, terminating the Account.