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.