THIS BRIEF STATEMENT CANNOT DISCLOSE ALL THE RISKS AND OTHER SIGNIFICANT ASPECTS OF THE FUTURES AND COMMODITY MARKETS. THE RISK OF LOSS IN TRADING FUTURES AND COMMODITIES CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR EXPERIENCE, OBJECTIVES, FINANCIAL CONDITION, AND OTHER CIRCUMSTANCES. YOU SHOULD BE AWARE OF THE FOLLOWING:

Futures:

Speculative trading of futures and commodity interests is a high-risk endeavor. Investment should only be made by persons and entities able to assume the risk of losing their entire investment, and only after consulting with independent, experienced sources of investment and tax advice. Among the risks that prospective investors should consider are the following:

(1) Futures Trading is Speculative and Volatile. Futures contract prices are highly volatile. Price movements for futures contracts may be influenced by, among other things, changing supply and demand relationships, weather, agricultural, trade, fiscal, monetary, and exchange control programs and policies of governments, domestic and foreign political and economic events, changes in domestic and foreign interest rates and rates of inflation, currency devaluations and re-valuations, and emotions of the marketplace. In addition, governments from time to time intervene directly and by regulation in certain markets, particularly those in currencies, interest rate instruments, and gold. Such intervention is often intended to influence prices directly. These events are usually unforeseeable and none of these factors can be controlled.

(2) Futures Trading Can Be Highly Leveraged. The low margin deposits normally required in Futures trading permit an extremely high degree of leverage. Accordingly, a relatively small price movement in a Futures contract may result in immediate and substantial loss or gain to the Customer. For example, if at the time of purchase 10% of the price of a Futures contract is deposited as margin, a 10% decrease in the price of the Futures contract would, if the contract were then closed out, result in a total loss of the margin deposit before any deduction for brokerage commissions. Thus, like other leveraged investments, any Futures trade may result in losses in excess of the amount invested. Any increase in the amount of leverage applied in trading an account will increase the risk of loss to the Customer equal to the amount of additional leverage applied.

(3) Stop Losses. Stop-loss orders are intended to limit losses and to protect profits. However, stop loss orders, by their nature, are not guaranteed to limit losses to the stop-loss price. Changes in volatility, overnight market movement, slippage in trade execution and exchange price limits may lead to losses that are in excess of the stop-loss limit and, accordingly, are higher than contemplated.

Risks Associated with Futures and Options:

(1) Investment and Trading Risks In General. All trades are subject to the risk the loss of capital. No assurance can be given that a Customer will realize a profit on its account or that it will not lose some or all of its account equity. In addition, the Customer will be subject to margin calls in the event that the assets of its account on deposit with the FCM are insufficient to satisfy margin requirements. Because of the nature of the trading activities, the results of trading activities may fluctuate from month to month and from period to period. Accordingly, investors should understand that the results of a particular period would not necessarily be indicative of results in future periods.

(2) Futures and Options Trading May be Illiquid. Most United States commodity exchanges limit fluctuations in futures contract prices during a single day by regulations referred to as “daily limits.” During a single trading day, no trades may be executed at prices beyond the daily limit. Once the price of a particular futures contract has increased or decreased to the limit point, positions in the futures contract can be neither taken nor liquidated unless traders are willing to effect trades at or within the limit. Futures prices have occasionally moved the daily limit for several consecutive days allowing little or no trading. In addition, even if prices have not moved the daily limit or no such limits are in effect for the contracts traded, the investor may not be able to execute trades at favorable prices if little trading in the contracts involved is taking place. Under some circumstances, a Customer might be required to make or take delivery of the commodity underlying a particular contract if the position cannot be liquidated prior to its expiration date. It is also possible that an exchange, or the CFTC, may suspend trading in a particular contract, order immediate settlement of a particular contract, or order that trading in a particular contract be conducted for liquidation only. Options trading may be restricted in the event that the underlying futures contract becomes restricted, and options trading may itself be illiquid at times, irrespective of the condition of the market of the underlying futures, making it difficult to offset option positions in order to realize gains thereon, limit losses, or change positions in the market.

(3) Commissions and Other Charges. Before authorizing any trading activity, Customers should obtain a thorough explanation of all associated commissions, fees, and charges, which will affect any net profits or increase any losses.

(4) Failure of Brokers. Customers’ assets are held by a Futures Commission Merchant ("FCM"). Although the Commodity Exchange Act requires a FCM to segregate the funds of its Customers, if an FCM fails to properly segregate Customer funds, Customers’ may be subject to a risk of loss of funds on deposit with the FCM in the event of the FCM's bankruptcy or insolvency. In addition, under certain circumstances Customers’ may be subject to a risk of loss of its funds on deposit with the FCM, even if such funds are properly segregated. In the case of any such bankruptcy or Customer loss, the Customer might recover, even in respect of property specifically traceable to the Customer, only a pro rata share of all property available for distribution to all Customers.

(5) Institutional Risks. Institutions, such as a Future Commission Merchant and banks, maintain custody of Customers’ assets. These firms may encounter financial difficulties that impair the operating capabilities or the capital position of the Customer or broker.

(6) Lack of communication. Due to possible communication problems (down telephone lines, etc.), protective stop losses may not reach the trading floor on time and substantial losses may result as a consequence.