Risk disclosure

Description of main investment-related risks:

• Country risk / political risk:

  The risk that events may occur in a country where the Financial Instruments were registered or kept affecting the political and/or economic stability of the country and resulting in the Client’s complete or partial loss of investments in the country or significant damage of the investments made.

• Currency risk:

  The risk that the currency exchange rates fluctuate so that the price in the home currency of the Financial Instruments nominated in foreign currency will suffer adverse changes for the Client.

• Liquidity risk:

  The risk that at any specific moment of time the Client’s Financial Instruments could not be sold at the price that does not substantially differ from price of the the latest market transactions made with these Financial Instruments.

• Price risk:

  The risk of unfavourable for the Client Financial Instrument price fluctuations. This may result in smaller yield for the invested money, damage or complete loss of the invested money.

• Credit risk:

  The risk that the issuer of the debt security purchased by the Client fails to fulfil in due time or completely the assumed obligations of payment of the debt and the interest thereof.

• Interest rate risk;

  The risk of adverse for the Client fluctuation of interest rates or the difference between the interest rates related to the Client’s Financial Instruments, causing the Client’s losses or smaller than expected return.

• Depository / sub-custodian risk:

  The risk that the Client’s Financial Instruments deposited by the Renesource Capital with a third party depositary agent and/or sub-custodian will be partially or completely lost due to the depositary agent and/or sub-custodian default, negligence or fraud.

• Taxation risk:

  The risk that due to amendments to the regulations a part of the income received by the Client from the Financial Instrument trading may be withheld and/or the risk that the Client will not be able to take advantage of the double taxation agreements between the country of his residency and the country of keeping Financial Instruments because the tax authorities will treat the Financial Instruments as belonging to the Renesource Capital or to a person without residency.

• Legal risk:

  The risk that due to the ignorance of the current and/or newly adopted laws applicable to Financial Instruments trading the Client may bear additional expenses, assume additional liabilities or will not be able to use his rights and/or fulfil liabilities of the Securities owner.

The list of the risks described above is not complete. The information provided here is to help our customers to understand the risks involved in trading financial instruments.

Given the risks that arise when trading in volatile markets, customers may want to consider using different types of orders to limit risk and manage there investment strategies such as:

• Market order;
• Limit order;
• Stop order;
• Trailing Stop Order;
• Stop Limit;
• If done (IFD);
• One Cancels Other (OCO);
• Good till (GT);
• Good till Cancel (GTC);
• Immediate or cancel (IOC).