RISK DISCLOSURES FOR FINANCIAL INSTRUMENTS

1. Introduction

1.1. Tradexfin Limited, operating under the trading name XMTrading is a Securities Dealer Licensee
regulated and authorised by the Financial Services Authority (“FSA”) in Seychelles under the License
Number: SD010 (hereinafter called the “Company”).

1.2. The Company is operating under the Securities Act 2007 (the “Act”), Securities (Conduct of Business)
Regulations 2008, Securities (Forms and Fees) Regulations 2008, Securities (Prospectus) Regulations
2008, Securities (Takeovers) Regulations 2008, Securities (Takeovers) Regulations 2008, and the
Securities (Advertisements) Regulations 2008 (collectively the “Act and the Applicable Regulations”).

1.3. This notice is provided to you, in accordance with the above Applicable Regulations, because you are
considering dealing with the Company in the investment products provided by the Company
(hereinafter called “Securities”). Each investment product and service has its own distinct risks. This
notice cannot and does not disclose or explain all of the risks and other significant aspects involved in
these products or how such risks relate to your personal circumstances. This notice is solely designed
to explain in general terms the nature of the risks particular to dealing in the Securities offered by the
Company and to help you to take investment decisions on an informed basis.

1.4. Prior to applying for an account, you should consider carefully whether trading in derivative Securities
provided by the Company is suitable for you in light of your needs, circumstances and financial
situation. Trading in derivative Securities entails the use of “gearing” or “leverage”. If you are in any
doubt about the risks involved with your Account, you should seek professional advice. In considering
whether to engage in this form of trading, you should be aware of the following:

2. Risk associated with transactions in derivative securities

2.1. The Company offers its services on an ‘execution-only basis’. It does not provide you with investment
advice relating to its services, Securities and other leveraged products and does not make investment
recommendations of any kind. We sometimes provide factual information or research
recommendations about a market, information about transaction procedures and information about the
potential risks involved and how those risks may be minimised. However, any decision to use our
investment products or services is solely made by you.

2.2. The Company does not and cannot guarantee the initial capital of your portfolio or its value at any time
or any money invested in any Security. You acknowledge and accept that, regardless of any information
which may be offered by the Company, the value of the Securities provided by the Company may
fluctuate downwards or upwards and it is even probable that the investment may become of no value.

2.3. You acknowledge and accept that you run a great risk of incurring losses and damages as a result of
the dealing in Securities, as such transactions undertaken through the dealing services of the Company
may be of a speculative nature. Large losses may occur in a short period of time, equaling the total of
your funds deposited with the Company. You should not enter into a transaction with the Company
unless you are willing to undertake the risk of losing entirely all the funds which you have invested.

2.4. A derivative Security is a ‘non-deliverable’ spot transaction giving an opportunity to make profit on
changes in currency rates, changes in prices of commodity, stock market indices or share prices (called
the “underlying instrument”).

2.5. Investing in derivative Securities entails the use of “gearing” or “leverage”. In considering whether to
engage in this form of investment, you should be aware that the high degree of “gearing” or “leverage”
is a particular feature of derivative Securities. This stems from the margining system applicable to such
trades, which generally involves a comparatively modest deposit or margin in terms of the overall
contract value, so that a relatively small movement in the underlying market can have a
disproportionately dramatic effect on your trade. If the underlying market movement is in your favor,
you may achieve a good profit, but an equally small adverse market movement may quickly result in

Email: info@[Link] | Web: [Link] | Address: F20, 1st Floor, Eden Plaza, Eden Island, Seychelles
 the loss of your entire deposit. You must not purchase derivative Securities unless you are willing to
undertake the risks of losing all the money which you have invested.

3. Volatility of price and limitation on the available market

3.1. The Securities provided by the Company are derivative Securities, where their price is derived from the
price of the underlying reference Securities in which the Securities refer to. Placing ‘Stop Loss’ orders
serves to limit your losses. However, derivative markets can be highly volatile and the value of
derivative Securities and their underlying instrument may fluctuate rapidly under certain market
conditions, which cannot be controlled either by the Client or the Company. Under such conditions it
may be impossible to execute any type of Clients order at a declared price. Therefore ‘Stop Loss’ order
cannot guarantee the limit of loss.

3.2. Movements in the price of underlying markets can be volatile and unpredictable. This will have a direct
impact on your profits and losses; thus, knowing the volatility of an underlying market will assist you in
evaluating whether any ‘Stop orders’ should be placed.

3.3. The prices of derivative Securities will be influenced by, amongst other things, changing supply and
demand relationships, governmental, agricultural, commercial and trade programs and policies,
national and international political and economic events and the prevailing psychological characteristics
of the relevant marketplace.

3.4. ‘Gapping’ is a sudden shift in the price of an underlying market from one level to another and can occur
when the underlying market is either open or even closed due to various factors/events (e.g., release
of important news announcements, economic events, etc.). When such factors/events occur and the
underlying market is closed, the price of the underlying market when it re-opens (and consequently our
derived price) may be different from the closing price with no opportunity to sell the instrument(s) before
the market opens.

3.5. Transactions in derivative Securities provided by the Company are not undertaken on a recognized
exchange (i.e., undertaken through the Company’s Trading Platform) and, as such, they may expose
the Client to greater risks than regulated exchange transactions. The terms and conditions and trading
rules are established solely by the counterparty, which in this case is the Company. You may be able
to close any position with the same counterparty with whom it was originally entered into.

4. Marging requirements

4.1. Clients are required to deposit a Margin with the Company in order to open a position. The Margin
requirement will depend on the underlying instrument of the derivative Securities, level of leverage
chosen and the value of position to be established. The Company will not notify the Client for any
Margin Call to sustain a loss making position. The Company has the discretionary right to start closing
positions when Margin Level decreases to about 50%, and automatically close all positions at market
prices if Margin Level drops below 20%. The Company guarantees that there will be no negative
balance in the account when trading Securities provided by the Company.

4.2. Investing in derivative Securities entails the use of “gearing” or “leverage”. In considering whether to
engage in this form of investment, you should be aware that the high degree of “gearing” or “leverage”
is a particular feature of derivative Securities. This stems from the margining system applicable to such
trades, which generally involves a comparatively modest deposit or margin in terms of the overall
contract value, so that a relatively small movement in the underlying market can have a
disproportionately dramatic effect on the Client’s trade. If the underlying market movement is in your
favor, you may achieve a good profit, but an equally small adverse market movement may quickly result
in the loss of your entire deposit. You must not purchase derivative Securities unless you are willing to
undertake the risks of losing all the money which you have invested.

4.3. Should the Equity in your trading account be insufficient to hold current positions open, you will be
required to deposit additional funds at short notice or reduce exposure (i.e., Margin Call). Failure to do
so within the time required may result in the liquidation of positions at a loss (i.e., Stop-Out). The Client

Email: info@[Link] | Web: [Link] | Address: F20, 1st Floor, Eden Plaza, Eden Island, Seychelles
 is always responsible for any losses incurred as a result.

5. Other additional obligations

5.1. Before you begin to trade, you should obtain details of all commissions and other charges for which
you will be liable and which may be found on the Company’s website. If any charges are not expressed
in money terms (but for example as a dealing spread), you should obtain a clear written explanation,
including appropriate examples, to establish what such charges are likely to mean in specific money
terms. You acknowledge and understand that commissions and other charges may change at any time
and that it is your sole responsibility to remain up to date by visiting the Company’s website.

5.2. Before you begin to trade, you should also obtain details regarding the financial instrument you wish to
trade in, such as the margin requirements, position and/or volume limits, swaps, etc. This information
is available on the Company’s website. You acknowledge and understand that the said information
may change at any time and that it is your sole responsibility to remain up to date by visiting the
Company’s website.

5.3. The value of open positions in the Securities provided by the Company is subject to financing fees (or
“swaps”). The swaps are deducted (i.e., charged) from or added (i.e., credited) in the Client’s account
regarding derivative Securities which are held overnight throughout the life of the contract. For more
information regarding swap rates and the respective calculations, please visit the Company’s website
at [Link]

5.4. You are responsible for any taxes and/or any other duty or legal affairs (i.e., regulatory filings and
payments) in order to ensure that you comply with applicable laws and regulations. The Company does
not warrant that no tax and/or any other stamp duty will be payable. The Company does not provide
any regulatory, tax or legal advice and as such, you may wish to seek independent advice.

5.5. Although electronic communication is often a reliable way to communicate with Clients, no electronic
communication is entirely reliable or always available. The Client should be aware that electronic
communications may fail, may be delayed, may not be secure and/or may not reach the intended
destination.

5.6. A Bank or Broker through whom the Company deals or the Company itself may act in the same market
as the Client, as such its own account involvement may be contrary to Client’s interests.

5.7. Trading online, no matter how convenient or efficient, does not necessarily reduce risks associated
with currency trading.

5.8. The Company is be required to hold Client Money in an account that is segregated from the Company’s
money in accordance with the Act and Applicable Regulations, but this may not afford a complete
protection.

5.9. A change in laws or regulations made by the government or a regulatory body may increase the costs
of operating a business, reduce the attractiveness of investment and/or change the competitive
landscape and as such alter the profit potential of an investment.

5.10. The insolvency or default of the Company, a Bank, Broker or any other relevant counterparty used by
the Company to effect transactions may lead to your positions being closed out without your consent.

The Company reserves the right to review and/or amend its Risk Disclosure notices, at its sole discretion,
whenever it deems fit or appropriate.

Our Risk Disclosure notices are not part of our Terms and Conditions of Business and are not intended to
be contractually binding or impose or seek to impose any obligations on us which we would not otherwise
have, but for the Act and Applicable Regulations.

Email: info@[Link] | Web: [Link] | Address: F20, 1st Floor, Eden Plaza, Eden Island, Seychelles