1

Off-exchange transaction and limited liquidity

Futures, leveraged foreign currencies exchange, stock indices, CFD's and commodities transaction are conducted, not on a regulated futures or commodities exchange, but through an over the counter (OTC) "spot market" or "futures market" that is often referred as the "inter-bank system". This system consist of a large network bank, clearinghouses and other institutional participants that futures, leveraged foreign currencies exchange, stock indices, CFD's and commodities positions with other members of the network. In an inherently unregulated environment of this sort, there can be no guarantees of the creditworthiness of the counter party to any particular futures, leveraged foreign currencies exchange, stock indices, CFD's and commodities transaction executed on your behalf by United Global Asset Management. Every reasonable attempt will, however, be made by United Global Asset Management to deal exclusively with reputable and creditworthy banks, clearinghouses and other institutional network participants in executing and hedging your futures, leveraged foreign currencies exchange, stock indices, CFD's and commodities transaction. Also, there may be truly rare cases in which trading liquidity in a futures, leveraged foreign currencies exchange, stock indices, CFD's and commodities may cease entirely, thereby precluding the liquidation position in that futures, leveraged foreign currencies exchange, stock indices, CFD's and commodities held by you, which may result in a substantial financial loss in your Account.

2

Trading on Margin is very risky

Futures, leveraged foreign currencies exchange, stock indices, CFD's and commodities trading is highly speculative and is suitable only for those who (i) understand and are willing to assume the economic, legal and other risks involved, and (ii) are financially able to assume losses significantly in excess of margin or deposits. Foreign currency prices are highly volatile. Price movements of futures, leveraged foreign currencies exchange, stock indices, CFD's and commodities are influenced by, among other things, interest rates, changes in balance of payments and trade, domestic and international rates of inflation, international trade restrictions and currency devaluations and revaluations. For example, there can be serious market disruptions if economic or political events locally or overseas affect the market. It is not possible to foresee all risks in advance. You represent, warrant and agree that you understand these risks; that you are willing and able, financially and otherwise, to assume the risks of futures, leveraged foreign currencies exchange, stock indices, CFD's and commodities trading and that the loss of your entire Account balance will not change your life style. You recognize that guarantees of profit or freedom from loss are impossible of performance in OTC trading. You acknowledge that you have received no such guarantees from United Global Asset Management or from any of its representatives or any introducing agent or other entity with whom you are conducting your United Global Asset Management account and have not entered into this customer trading agreement in consideration of or in reliance upon any such guarantees or similar representations.

3

Effect of "Leverage" or "Gearing"

Effects of 'Leverage' or 'Gearing' Transactions in futures, leveraged foreign currencies exchange, stock indices, CFD's and commodities carry a high degree of risk. The amount of initial margin is small relative to the value of the futures, leveraged foreign currencies exchange, stock indices, CFD's and contract so that transactions are "leveraged" or "geared". The high leverage and low margin can result in significant losses due to price changes in futures, leveraged foreign currencies exchange, stock indices, CFD's and commodities market. A relatively small market movement will have a proportionately larger impact on the funds that you have deposited or will have to deposit; this may work against you as well as for you. You may sustain a total loss of initial margin funds and any additional funds deposited with United Global Asset Management to maintain their position. If the market moves against your position or margin levels are increased, you may be called upon to pay substantial additional funds on short notice to maintain your position. If you fail to comply with a request for additional funds within the time prescribed, your position may be liquidated at a loss and you will be liable for any resulting deficit.

4

Risk-reducing orders or strategies

The placing of certain orders (e.g., "stop-loss" orders or "stop-limit" orders) that are intended to limit losses to certain amounts may not be effective because market conditions may make it impossible to execute such orders. At times, it is also difficult or impossible to liquidate a position without incurring substantial losses. Strategies using combinations of positions, such as "spread" and "straddle" positions may be as risky as taking simple "long" or "short" positions.

5

Terms and conditions of contracts

The placing of certain orders (e.g., "stop-loss" orders or "stop-limit" orders) that are intended to limit losses to certain amounts may not be effective because market conditions may make it impossible to execute such orders. At times, it is also difficult or impossible to liquidate a position without incurring substantial losses. Strategies using combinations of positions, such as "spread" and "straddle" positions may be as risky as taking simple "long" or "short" positions.

Deposited cash and property