Series 3: 7.5.2.2. Risk Disclosure Statement

7.5.2.2. Risk Disclosure Statement

The risk disclosure must be prominently displayed immediately following any disclosures required to appear on the cover page of the disclosure document:

The risk of loss in trading commodity interests can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. In considering whether to trade or to authorize someone else to trade for you, you should be aware of the following:

If you purchase a commodity option you may sustain a total loss of the premium and of all transaction costs.

If you purchase or sell a commodity futures contract or sell a commodity option you may sustain a total loss of the initial margin and any additional funds that you deposit with your broker to establish or maintain your position. If the market moves against your position, you may be called upon by your broker to deposit a substantial amount of additional margin funds, on short notice, in order to maintain your position. If you do not provide the requested funds within the prescribed time, your posit