RISK DISCLOSURE

RISK DISCLOSURE STATEMENT:

ROSTRUM INVESTMENT AND SECURITIES LIMITED (“hereinafter referred to as RISL”) is a Trading License holder of Nigerian Exchange Limited (NGX), participating institution of NASD PLC, registered with the Securities and Exchange Commission to carry on business as a Broker Dealer.


As a Client of RISL i/we am/are aware that there are always significant risks involved when investing in securities in the Capital Market. Many unforeseen events such as various government policies, domestics and international political and economic event and other events of force majeure (including but not limited to Act of God, war, riot, urban unrest, pandemic terrorism), may cause sudden market and price fluctuations.


In general, securities investments are only suitable for clients who fully understand and appreciate the risks involved. It is highly speculative. It involves a high degree of risk and may result in loss of the entire investment. Before deciding to trade equities, debt securities, exchange traded funds, or engages in securities borrowing or lending and/or other related ancillary or capital market operations, as a client of RISL i/we should carefully consider my/our objectives and risk involved and must decide whether, in the light of the risks, investment is appropriate.


By executing the RISL Risk Disclosure Statement, I/we hereby acknowledge and accept that each of the risk listed hereunder can be associated with my/our securities investment. I/we also acknowledge and accept that these risks could lead to the loss of the entire value of my/our investments under this Agreement:


1. Risk Associated with Securities Trading.

a. Overall Investment Risk.

All securities investment risks the loss of capital. Many unforeseeable events, including actions by various government agencies and domestic and international political and economic events beyond reasonable control (e.g. war, riot, urban unrest, pandemic, terrorism), may cause sharp market and price fluctuations

b. Market Liquidity

Some of the listed securities may be traded in very low volumes. There is, therefore, the risk that investment may not be easily liquidated.

c. Currency Risks

The potential for profit or loss from transaction in foreign currency denominated securities (traded locally or in other jurisdictions) will be affected by fluctuations in foreign exchange rates.

d. Executive Risk.

RISL, acting as a broker- dealer for the purchase sales and/or investment in securities, may, on certain occasions, not be able to execute the purchase or sale or to undertake any action relating to the securities in accordance with the client’s instructions. These occasions include, but not limited to a situation where the market conditions are not favorable, the order cannot be matched, limitations imposed by Regulators etc.

e. Commission, Fees Interest and Other Charges

All regulatory fees, commissions, charges are as approved by the Regulatory Authorities. As a Client of RISL, I/we have obtained a clear explanation of all commissions, fees, interest and charges, and understand that these charges may affect my/our net profit (if any) or increase my/our loss (if any). I/went agree that I/we will be liable for these charges (as may be amended from time to time).

f. Settlement Risks.

The procedure for settlement, clearing and registration of security transactions can give rise to technical and political problems. In other cases, Inefficient system may result in delayed delivery of securities.

2. Risk associated with Debt Securities

Debt Securities and Debt-linked investments offer fixed return over a defined period and are intended to be held to maturity. These instruments carry a significant amount of risk such as credit currency and liquidity risks. Credit risk in debt securities arises from default events that may result in the inability of the issuer to pay interest or principal. Default risk in debt securities is high when credit rating is non-investment grade or non-rated. In a default situation, the investor may loss both interest and principal Currency risk in debt securities arise from holding debt securities that are issued in foreign currency, hence exposing the buyer to fluctuations in exchange rate. There is a high chance that if the currency moves adversely, the investor may lose more than his original interest and principal.


3. Risk of Margin Trading (e.g. share margin financing).

The risk of loss in financing a transaction by deposit of collateral may be significant. I/we may sustain losses in excess of my/our cash and any other assets deposited as collateral. I/went may be called upon at short notice to make additional margin deposit or interest payment is not made within the prescribed time, my/our collateral or positions may be liquidated at a loss without prior notification to me/us. I/we should therefore carefully consider whether such a financing arrangement with RISL is suitable in light of my/our financial position and investment objectives.


4. Securities Borrowing and lending

When I/we borrow securities from RISL, I/went will be required to deposit a required level of collateral, I/we may be called upon at short notice to place additional deposit deposits if the level of collateral inadequate in relation to the market value of borrowed securities. If the required deposit is not made within the prescribed time, the firm may buy-back the borrowed securities without prior notification to me/us. When I/we lend securities to RISL I/we temporarily lose legal ownership right to the securities but in place, has a right to claim equivalent securities and dividends.

5. Risk relating to the Client's own investment

My/our decision to invest in the securities is my/own independent decision. RISL is not acting as an advisor. In making a decision to invest, I/we have confirmed that I/we have carefully studied and considered all information relating to the status, business, financial constitution and operation of the company/entity using the securities, including the underlying assets of or other information relating to the securities in which I/we will invest, and other relevant factors relating to the investment such as political, economic, legal and regulatory conditions. As well as market conditions, demand, supply and price of the underlying goods of the securities. As a result, I/we bear all risk from the investment and

RISL has no fiduciary duty to me/us and is not responsible for any liabilities, claims, damages, losses, costs and expenses arising from such investment.

6. Regulatory Risk.

RISL is subject to the various laws and /or regulations of the competent relevant regulatory authorities. Any Legislative or Regulatory changes may impact the functions of the Broker/dealer. All transactions performed by RISL will be executed in accordance with all relevant Rules and Regulation and RISL’s Core Values

Confirmation

I/we hereby confirm that I/we have we read and agree to be bound by the above terms and conditions, risk disclosure and data privacy.

Client Name:

Signature & Date: