Margin cut or cut-off level (Cash Equity < 10%) - if the cash equity equal or below 10% of the required maintenance margin. UGAM has the right (but not the obligation) to fully or partially reduce the client's exposure by closing existing positions. Usually the system automatically reduces exposure so that the use of margin is brought to approximately 100%.

SETTLEMENT PROCEDURE

Settlement activities are conducted on a daily basis and include all post-trade operations such as trade settlements, rollovers, volume commissions and daily P&L conversions and other end-of-day amendments (please refer to overnight policy for related information on value date and overnights). Settlement procedure is applied on the market closing at the trading day, except for the currencies trading is applied on 04.00 Singapore time (GMT +8) in the summer time or 05.00 Singapore (GMT +8) in the winter time. Account balance is updated on a daily basis after settlement procedure. Customers are able to track balance history in various reports through the trading platform.

RISK DISCLOSURE

The Customer(s) requires be aware of the risks involved in trading Over The Counter (OTC) market on margin carries a high level of risk, and may not be suitable for all investors. It is highly recommended to maintain the use of margin and leverage at normal levels. The customer(s) must always keep in mind that margin trading increases potential loss, as well as potential profit, and invested funds can quickly suffer losses in situations where the market prices exhibit strong volatility, potentially creating an adverse environment for the highly leveraged participant. The customer(s) shall be solely responsible for maintaining sufficient margin in relation to the existing positions.

OVERNIGHT POLICY

UGAM's Overnight Policy basically describes the process of rollover of any existing exposure to the next spot settlement. Each day at the end-of-day settlement time, all open exposures are swapped to the next spot settlement date. The process consists of simultaneously closing the existing exposure at the daily close rate, and opening the same for the next settlement date at the cost of carry price. Customers are able to see the impact of the cost of carry process in the reports. While cost of carry points are readily shown in the position report, both near and far legs of the swap transaction are shown in intraday and daily statement.