Contractual Terms

1. The terms as to price, term, expiration dates, restrictions or exercising an option and other terms material to a transaction.
2. Any terms describing risk factors, such as volatility, liquidity, etc.
3. The circumstances under which you may become obliged to make or take delivery of the underlying interest of a transaction.
4. The legal risk surrounding the transaction, including but not limited to the circumstances under which the transaction may be illegal, resulting in it g void and unenforceable.

Payment Tokens Related Products (“PTPs”)

1. Trading in PTPs, such as cryptocurrency funds, ETFs, debentures, or any other products referencing payment tokens, involves substantial risk and may not be suitable for all investors. Before engaging in trading or investing in PTPs, it is important that you carefully consider the product's features, risk factors, fees, and expenses. Additionally, consider whether such trading aligns with your risk tolerance, investment objectives, experience, financial condition, personal circumstances, and other relevant factors. You should keep yourself informed of trading risks in general, and specifically, be aware of the following risks associated with trading in PTPs. Note that this list is not exhaustive and may not encompass all potential risks arising from trading in PTPs:
   1. Cryptocurrencies, being non-legal tender and lacking government backing, are inherently different from traditional currencies.
   2. Customers may be affected by undesired price slippages, especially during high market volatility and/or low market liquidity. As a relatively new asset class, regulatory developments, or the absence thereof, may result in customers trading in the PTPs not receiving the same level of regulatory safeguards or protections from the Monetary Authority of Singapore (“MAS”) that typically apply to traditional capital market products.
   3. Cryptocurrencies have little or no intrinsic value and exhibit high volatility. Investment in these PTPs carries a heightened risk due to unpredictable price swings influenced by unforeseen events, changes in market sentiments, and a lack of price transparency.
   4. Cryptocurrency exchanges, where these assets are bought and traded, may be susceptible to cyber security threats. The absence of regulatory oversight for PTPs adds to the vulnerability of these exchanges. A cyberattack leading to the theft of cryptocurrencies can result in significant adverse price movements.
2. Trading in PTPs is highly risky and suitable only for clients with a high-risk tolerance and the financial capacity to withstand losses if PTP-related positions turn unprofitable. You may lose more than you invest. If you lack familiarity with PTPs, you should not trade in them.

Risk of Margin Trading

1. The use of margin involves a high degree of leverage and risk which can lead to losses as well as gains which are of a larger magnitude as compared to the movement of a security or market.
2. While the amount of initial margin may be small relative to the value of the transactions made on margin, a relatively small movement of a security or market will result in a proportionally larger impact on the initial margin placed with iFAST, which could work for or against you.
3. If the market moves against you, you may not only sustain a total loss of your initial margin and any additional funds deposited with iFAST to maintain your position, but you may also incur further liability to iFAST or sustain further or additional losses. You may be called upon at short notice to make additional margin deposits or interest payments to maintain your position. If the required margin deposits or interest payments are not made within the prescribed time, iFAST has the right, at its discretion, to close any or all positions that you may have and liquidate your collateral without your consent or prior notice. Moreover, you will remain liable for any resulting deficit in your account and interest charged on your account.
4. Under certain market conditions, such as but not limited to a "limit move" of a market or security and the suspension of trading by the relevant exchange, it may be difficult or impossible to liquidate a position. There may also not be a ready market for certain investments to facilitate the liquidation of a position. As such, it may be impossible for contingent orders, such as but not limited to "stop-loss" or "stop-limit" orders, to be executed and limit your losses to the intended amounts.
5. You should therefore carefully consider whether such a financing arrangement is suitable for you in light of your own financial position, experience, objectives, ability to bear risks and other relevant circumstances.

Market Forces

1. Your payments or receipts under a transaction will be linked to changes in the particular financial market or markets which the transaction is linked, and you will be exposed to price, currency exchange, interest rate or other volatility in that market or markets. You may sustain substantial losses on the contract, trade, product or financial investment if the market conditions move against your positions. It is in your interest to fully understand the impact of market movements, in particular the extent of profit/loss you would be exposed to when there is an upward or downward movement in the relevant rates, and the extent of loss if you have to liquidate a position if market conditions move against you. Your position may be liquidated at a loss, and you will be liable for any resulting deficit in your Account with iFAST.
2. The price and value of any investment in securities and the income, if any, from them, can fluctuate and may fall against your interest. An individual security may experience downward price movements and may under some circumstance even become valueless. An inherent risk of trading Securities is that losses may be incurred, rather than profits made, as a result of buying and selling Securities. Any representation of part performance is not necessarily a guide to future performance.
3. Under certain market conditions you may find it difficult or impossible to liquidate a position, to assess a fair price or assess risk exposure. This can happen, for example, where the market for a transaction is illiquid or where there is a failure in electronic or telecommunications systems, and where there is occurrence of a Force Majeure Event (which shall include without limitation, any form of restriction, moratorium or suspension on trading imposed by an exchange, market or other authority regulating trading in the transactions). This could also happen for unlisted Securities where there is no formal market for such Securities and are often thinly traded. In addition there can be no certainty that market traders will be prepared to deal in Securities, in particular in relation to unlisted Securities.
4. Transactions on markets in other jurisdictions may expose you to additional risk. Such markets may be subject to regulation that may offer different or diminished investor protection. Transactions related to emerging countries may carry high investment risks such as political risks, risks of economic instability, greater prevalence of illegitimate market practices and laws and regulations which afford inadequate protection and safeguards to investors. You may be exposed to operational risks and other risks associated with the market infrastructure in that jurisdiction. The concept of beneficial ownership may not exist or be fully developed in the foreign jurisdiction and it is possible that its law will not recognize your beneficial ownership of Securities held by a sub-custodian in that jurisdiction.

Electronic Trading

1. iFAST's trading facilities are supported by computer-based component systems for the order-routing, execution, matching, registration or clearing of trades. As with all facilities and computer systems, you will be exposed to risks associated with the systems including the failure of hardware and software, risks of any defect, deficiency or malfunction in, and /or any breakdown, disruption or failure of any telecommunications, computer or other electronic equipment or system associated with such electronic system, loss of data or information that may occur due to any cause whatsoever. The result of any system failure may be that your Order is either not executed according to instructions or is not executed at all.
2. You should also be aware that the Internet is not a completely reliable transmission medium and there may be delays in service provisions.

Overseas-Listed Investment Products

An overseas-listed investment product is subject to the laws and regulations of the jurisdiction it is listed in. Before you trade in an overseas-listed investment product, you should be aware of:

1. The level of investor protection and safeguards that you are afforded in the relevant foreign jurisdiction, as the overseas-listed investment product would operate under a different regulatory regime.
2. The differences between the legal systems in the foreign jurisdiction and Singapore that may affect your ability to recover your funds. The local regulatory authority may be unable to compel the enforcement of the rules of regulatory authorities or markets in other jurisdictions where your transaction has been effected.
3. The tax implications, currency risks and additional transaction costs that you may have to incur.
4. The counterparty and correspondent broker risks that you are exposed to.
5. The political, economic and social developments that influence the overseas markets you are investing in.
6. There are also certain stock exchanges which have been established as markets designed to accommodate companies to which a high investment risk may be attached, such as Growth Enterprise Market in Hong Kong and Catalist in Singapore. In particular, companies may list on these stock exchanges with neither a track record of profitability nor any obligation to forecast future profitability. There may be risks arising out of the emerging nature of companies listed on these exchanges and the business sectors or countries in which the companies operate. Further there is a risk that companies traded on such exchanges may be susceptible to market volatility and there is no assurance that there will be a liquid market in the securities of such companies.

Warrant

A warrant is a time-limited right to purchase and/or subscribe for securities and is exercisable against the original issuer of the underlying securities. A relatively small movement in the price of the underlying security results in a disproportionately large movement, favourable or unfavourable, in the price of the warrant. The prices of warrants can therefore be volatile. It is essential for anyone who is considering purchasing warrants to understand that the right to purchase and/or subscribe which a warrant confers is invariably limited in time with the consequence that if the investor fail to exercise this right within the predetermined time-scale then the investment becomes worthless.

Currency Risk

The fluctuations in foreign currency rates have an impact on the profit/loss and the financial investment where the transaction is denominated or settled in a different currency from the currency where you carry on your ordinary business or keep your accounts.

Credit Risk

1. As iFAST may not always be your contractual counterparty, your contractual counterparty or a third party issuer, will be liable to you under the transaction. Therefore, you should take into account all risks associated with such counterparty or third party issuer, including the counterparty’s or issuer’s financial standing.
2. In the event of insolvency of the issuer of a Security or the counterparty to a transaction, you may experience delay in liquidating your investment and may suffer losses, including a decline in the value of your investment. Furthermore, the insolvency of the issuer of a Security or the counterparty to a transaction may lead to positions being liquidated or closed out without your consent.

Counterparty Risks

You need to be aware of the identity of the contractual counterparty you are or may be matched with. Often, you will be purchasing an unsecured obligation of such counterparty and you should evaluate the comparative credit risk.

Tax Risk

You should understand the tax implications prior to entering into any transactions. Different transactions may have different tax implications. Therefore, you should consult your tax adviser to understand the relevant tax considerations.

Over-The-Counter (OTC) Products

Because the prices and characteristics of over-the-counter transactions are individually negotiated and there is no central source for obtaining prices, there are inefficiencies in transaction pricing. As a result, the Customer is exposed to credit risk of the counterparty in which they enter into a bilateral agreement with. The Customer may also be exposed to liquidity risk and iFAST cannot and does not warrant that there is an active trading market and the price iFAST secures for the Customer will at any time be the best price available to the Customer. In entering an OTC transaction, iFAST may make a profit despite the Customer incurring a loss.

Exchange traded Funds (ETF)

ETFs are closed ended collective investment schemes, traded as shares on stock exchanges, and typically replicate a stock market index, market sector, commodity or basket of assets. ETFs can be broadly grouped into two types. Traditional ETCs track, replicate and correspond to the performance of an underlying index. Synthetic ETFs mimics the behavior of traditional ETFs through the use of derivatives such as swaps and performance-linked notes.

1. ETFs are subject to tracking error risk, namely the disparity between the performance of the ETF as measured by its net asset value and the performance of the underlying index. Tracking error may arise due to various factors. These include, failure of the ETFs tracking strategy, the impact of fees and expenses, foreign exchange differences between the base currency or trading currency of an ETF and currencies of the underlying investments, or corporate actions such as rights and bonus issues by the issuers of the ETFs underlying securities.
2. Trading on an exchange does not, in and of itself guarantee that a liquid market exists for an ETF. A higher liquidity risk is also involved if an ETF invests in financial derivative instruments that are not actively traded in the secondary market and where price transparency is not as easily accessible as physical securities. This may result in a bigger bid and offer spread.
3. Further, an ETF is exposed to the economic, political, currency, legal and other risks of a specific sector or market related to the underlying equity, commodity, asset or index that the ETF is designated to track.
4. Synthetic ETFs typically invest in over-the-counter derivatives issued by counterparties. Such a synthetic ETF may suffer losses potentially equal to the full value of the derivatives issued by the counterparty upon its default. Synthetic ETFs are thus exposed to both the risks of the securities that constitute the index as well as the credit risk of the counterparty that issues the financial derivative instruments for replicating the performance of the index.

Risk related to Bonds

Bonds are debt securities that offer fixed returns over a defined period and are intended to be held to maturity. These instruments carry a number of risks such as credit, default, interest, currency and liquidity risks.

1. Credit risk arises from default events that may result in the inability of the issuer to pay interest or principal.
2. Default risk is high when credit rating is non-investment grade or nonrated. In a default situation, the buyer may lose both interest and principal.
3. Interest risk arises as bond prices generally move inversely with interest rates.
4. Currency risk arises from holding debt securities that are issued in a foreign currency, hence exposing the buyer to fluctuations in exchange rate. There is a chance that if the currency moves adversely, the buyer may also suffer a loss.
5. Liquidity risk refers to the availability of prices for buying and selling in a market. It is common for most debt securities to suffer from poor liquidity because they are quoted over-the-counter (OTC). OTC products are not listed or available on a securities exchange, but traded directly between two parties. Thus, one is exposed to the credit risk of the counterparty in which they enter into a bilateral agreement with. iFAST does not warrant that there is an active trading market and that the price iFAST secures for the customer will at any time be the best price we procure.
6. Fluctuations and volatility in the market price of the bonds.

Risk related to Investment in Debt Securities

1. The value of the investments will depend on market interest rates, the credit quality of the issuer and liquidity considerations.
2. Some may be invested in high yielding debt instruments where the level of income may be relatively high (compared to investment grade debt instruments). However the risk of depreciation and realisation of capital losses on such instruments will be significantly higher than on lower yielding debt instruments.
3. Some may invest in investment grade debt securities, which like other types of debt securities, involve credit risk of the debt security issuer and may be subject to ratings downgrades by the rating agencies.
4. Some may invest in a relatively small number of investments or may be concentrated in a specific industry sector and are subject to higher concentration risk.
5. Some may invest in part or in whole in emerging markets which may be more volatile and subject to greater political and economic risks.

Non-Advisory Nature of Relationship

You should note and accept that our relationship with you in relation to your Securities and Securities-related transactions is purely as execution-only broker/dealer or as counterparty to you. In either case, while you are entitled to expect us or our employees or representatives to answer your queries, the obligation in so answering is only to be honest. Such answers should not be assumed to be backed by any prior reasonable due diligence or research or specifically suitable for reliance by you without you first independently confirming that the answer is intended as specific advice to and is suitable for or to your specific financial needs and objectives or you verifying the same with your independent advisers on our specific suitability for your specific financial needs and objectives.

The above statements do not purport to disclose or discuss all of the risks and other significant aspects of any transaction. In light of the risks, the Customer should undertake such transaction only if he/she understands the nature of securities, including derivatives and the contracts which he/she is entering into and the extent of his/her exposure to risk. The Customer should therefore consult with his/her own legal, tax and financial advisers before entering into any particular transaction.