This brief statement does not disclose all the risks and other significant aspects of trading over-the-counter CFDs. In light of these risks, you should undertake such transactions only if you understand the nature of the contracts (and contractual relationships) into which you are entering and extent of your exposure to risk. Trading over-the-counter CFDs is not suitable for many members of the public. You should carefully consider whether trading is appropriate for you in light of your experience, objectives, financial resources and other relevant circumstances.

1. Effect of “Leverage” or “Gearing”. Trading over-the-counter Contracts for Difference (CFD) carries a high degree of risk. The amount of initial margin funding required is small relative to the value of the CFD so that transactions may result in a proportionately larger impact on the funds you have deposited or may deposit. This factor may work against you as well as for you. You may sustain a total loss of initial margin funds deposited and any additional funds you may have deposited with the firm in order to maintain your open positions. The possibility exists that you may lose some or all of your initial investment - be sure to invest only "risk capital", and not money you cannot afford to lose. For an example, an account with Bacera International permits you to trade over-the-counter CFDs on a highly leveraged basis. The funds in an account trading at maximum leverage can be completely lost if the positions held in the account experience 30 percent adverse swing in price movement. You should be educated on all the risks associated with over-the-counter trading, and seek counsel from an independent financial advisor if necessary.

2. Charges. Before you begin to trade, you should obtain a clear understanding of all charges for which you will be liable. These charges will affect your net profit (if any) or increase your net loss.

3. Electronic trading. Trading on an electronic trading system and/or an Internet-based deal execution trading system may differ not only from trading in an open-outcry market but also from trading on other electronic trading systems. There are risks associated with utilizing an electronic trading system and/or an Internet-based deal execution trading system. If you undertake transactions on an electronic trading system and/or an Internet-based deal execution trading system, you will be exposed to risk associated with the system, including but not limited to the failure of hardware, software and Internet connectivity. The result of any system failure may be that your order is either not executed according to your instructions or not executed at all. Since Bacera International does not control signal power, its reception or routing via Internet, configuration of your equipment or reliability of its connection, we cannot be responsible for communication failures, distortions or delays when trading on-line (via internet). Furthermore, Market conditions (e.g. liquidity) and/or the operation of the rules of certain markets (e.g. suspension of trading in any currency because of price limits, government intervention or “circuit breakers”) may increase the risk of loss by making it difficult or impossible to effect transactions or liquidate/offset positions.

4. Margin. Bacera International margin policies require that your account be properly margined at all times. In order to do so, it may be necessary to deposit additional funds. Failure to meet margin requirements may result in the liquidation of any open positions with a resultant loss. Bacera International reserves the right to liquidate all positions, without notice or margin call, if an account fails below our minimum equity level/requirement(s).

5. Password protection. You are obligated to keep any/all passwords provided to you by Bacera International or its affiliates secret, ensuring that third parties do not obtain access to the trading facilities. You will be liable to Bacera International for trades executed by means of your password even if such use may have been affected by someone other then you.

6. Quotation errors. Should quotation errors occur, which may include, but are not limited to, a mistype of a quote by Bacera International, a quote which is not representative of fair market prices, and erroneous price quote from a Bacera International employee, such as, but not limited to, a wrong big figure quote or an erroneous quote due to failure of hardware, software or communication lines or systems and/or inaccurate external data feeds provided by third-party vendors, Bacera International will not be liable for the resulting errors in an account’s balance. The foregoing list is not meant to be exhaustive and in the event of a quoting error, Bacera International reserves the right to make the necessary corrections or adjustments to the account(s) involved. Any dispute arising from such quoting errors will be resolved on a basis of a fair market value of a currency at the time such an error occurred. CFD business is not traded on a regulated market and therefore does not require open-outcry. Even though quotations or prices are afforded by many computer-based component systems, the quotations and prices may vary due to market liquidity. Many electronic trading facilities are supported by computer-based component systems for the order-routing, execution or matching of trades. As with all facilities and systems, they are vulnerable to temporary disruption or failure. Your ability to recover certain losses may be subject to limits on liability imposed by the system provider, the market, the bank and/or financial institution. Such limits may vary; you should ask the firm with which you deal for details in this respect.

7. Placing of certain risk reducing strategies (e.g. stop-loss/stop-limit) which are intended to limit losses to certain amounts may not be effective because market conditions may make it impossible to execute such order(s); Strategies using combinations of positions may involve as much or more risk as normal long/short transactions.

8. Third-Party Authority. In the event that you grant trading authority or control over your account to a third-party (Trading Agent), whether on a discretionary or non-discretionary basis, Bacera International shall in no way be responsible for reviewing your choice of such Trading Agent or for making any recommendations with respect thereto. Bacera International makes no representations or warranties concerning any Trading Agent; Bacera International shall not responsible for any loss to you occasioned by the actions of the Trading Agent; and Bacera International does not, by implication or otherwise, endorses or approve of the operating methods of any Trading Agent. If you give a Trading Agent authority to exercise any rights over your account, you do so at your own risk.

9. Transactions in other jurisdictions. Transactions on currencies of other countries in other jurisdictions, including markets formally linked to a domestic market, may expose you to additional risk. Such markets may be subject to regulation, which may offer different or diminished investor protection. Before you trade you should inquire about any rules relevant to your particular transactions. Your local regulatory authority will be unable to compel the enforcement of the rules of regulatory authorities or markets in other jurisdictions where your transactions have been effected. You should ask the firm with which you deal for details about the types of redress available in both your home jurisdiction and other relevant jurisdictions before you start to trade.

10. The CFD trading you are entering into is not conducted on an exchange.  Bacera International is actins as counter-party in these transactions and acts as the buyer when you sell and the seller when you buy.  As a result, Bacera International’s interests may be in conflict with yours.  Unless otherwise specified in your written agreement or other written documents Bacera International establishes the prices at which it offers to trade with you.  The prices Bacera International offers might not be the best prices available and Bacera International may offer different prices to different customers.  If Bacera International elects not to cover its own trading exposure, then you should be aware that Bacera International might make more money if the market goes against you.  Additionally, since Bacera International acts as the buyer or seller in transactions, you should carefully evaluate any trade recommendations you received from Bacera International or any of its solicitors.