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Risk Disclosure Statement

  Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. But, more importantly, you should not invest money that you cannot afford to lose.

  Trading foreign exchange carries a high level of risk. Any foreign exchange transaction is associated with risk, as any change in political and economic situation can have a great impact on liquidity, exchange rate, etc.

  Furthermore, foreign exchange transactions are "leveraged", that is a relatively small market movement will have a proportionally larger impact on the account. Thus, the leverage can work against you as well as for you. The possibility exists that you may sustain a loss of initial margin funds and any additional funds deposited with the firm to maintain your position. If you fail to meet the maintenance requirement in time, your position will be closed and you will be liable for any resulting deficit. Investors can reduce the degree of exposure by placing certain orders, such as "stop-loss" orders and "stop-limit" orders.

  There are also risks associated with utilizing an Internet-based deal execution trading system including, but not limited to, the failure of hardware, software, and Internet connection. Sarantal Investments Ltd. employs back-up systems and contingency plans to minimize the possibility of system failure, and trading via telephone is available.