Risk Disclosure & Warning Notice

1. Introduction and Purpose

1.1. This Risk Disclosure and Warning Notice (the "Notice") is provided by ST Global Markets (Mauritius) Limited (the "Company", "we", "us" or "our") to inform you of the principal risks involved in trading foreign exchange ("FX") and Contracts for Difference ("CFDs") with the Company.

1.2. This Notice forms part of, and should be read together with, the Company's Terms of Business. Capitalised terms used but not defined in this Notice have the meaning given to them in the Terms of Business.

1.3. This Notice does not disclose every risk involved in trading FX and CFDs. It is intended to give you a fair understanding of the nature of the products and the risks involved. You should not trade in these products unless you understand them and the extent of your exposure to risk. If you are in any doubt, you should seek independent professional advice.

1.4. You should not trade with money you cannot afford to lose.

2. No Advice and No Assessment of Suitability

2.1. The Company provides an execution-only service. It does not provide investment advice, personal recommendations or discretionary management, and nothing the Company provides should be taken as advice on the merits or suitability of any Transaction.

2.2. The Company is under no obligation to assess whether trading in FX or CFDs is suitable or appropriate for you. You alone are responsible for your trading decisions.

3. High-Risk Nature of FX and CFDs

3.1. FX and CFDs are complex, leveraged products that carry a high level of risk and can result in the loss of all of the funds you deposit. They are not suitable for all investors.

3.2. Because of the effect of leverage, relatively small market movements can have a proportionately much larger effect on the funds you have deposited. A movement against you may result in the loss of your entire deposit in a short period of time.

3.3. You should be aware that a high proportion of retail clients who trade leveraged products lose money. You should consider carefully whether trading in these products is appropriate for you in light of your financial circumstances.

4. Leverage and Margin

4.1. Trading on margin means you can open positions that are larger than the funds you deposit. The ratio between the size of a position and the margin required to open it is the leverage. Higher leverage increases both potential gains and potential losses.

4.2. You must maintain sufficient margin on your Trading Account at all times. Margin requirements may change, including with little or no notice in volatile markets or in a Force Majeure or Market Disruption Event.

5. Margin Calls and Automatic Close-Out (Stop-Out)

5.1. If the funds on your Trading Account fall below the required margin level, some or all of your open positions may be closed out automatically and without prior notice to you.

5.2. The Trading Platform monitors your Equity-to-Margin ratio in real time. Where that ratio falls to or below the stop-out level of 30%, open positions are closed automatically, starting with the position showing the greatest loss, until the ratio is restored. You may not be able to choose which positions are closed or when.

5.3. The Company may, but is not obliged to, make a margin call. You should not rely on the Company contacting you before a close-out occurs.

6. Negative Balance Protection and Professional Clients

6.1. The Company provides negative balance protection to Retail Clients: in the ordinary course, a Retail Client cannot lose more than the funds deposited in their Trading Account, because a resulting negative balance arising from trading will be reset to zero. This does not apply where the negative balance arises from Abusive Trading, fraud, a Manifest Error or any breach of the Terms of Business.

6.2. Negative balance protection does not apply to Professional Clients. If you are a Professional Client, you may lose more than the funds you have deposited and you remain liable to the Company for any negative balance on your Trading Account.

7. Market Risks

7.1. Volatility. Prices can move rapidly and unpredictably, reflecting events that cannot be foreseen or controlled. In volatile conditions, the price at which your Order is executed may differ significantly from the price displayed when you placed it.

7.2. Slippage. Your Order may be executed at a price different from the one expected. Slippage may be positive (in your favour) or negative (against you).

7.3. Gapping. Prices may "gap" — move sharply from one level to another without trading at the levels in between — particularly at market open or during major news events. As a result, a Stop Loss Order or other pending Order may be executed at a price materially worse than the level you specified. A Stop Loss Order does not guarantee that your loss will be limited to the level set.

7.4. Liquidity. In certain conditions it may be difficult or impossible to execute an Order, or to close a position, at the price you want or at all.

7.5. Trading hours. Instruments trade only during specified hours. Events occurring outside those hours may cause prices to open at levels significantly different from the previous close.

8. Nature of CFDs

8.1. When you trade FX and CFDs you are speculating on price movements. You do not own, acquire or take delivery of the underlying asset, and you have no rights (such as voting or dividend rights) in any underlying asset.

8.2. All Transactions are over-the-counter (OTC) and are entered into between you and the Company as counterparty. They are not traded on a regulated exchange. The price of a CFD is set by the Company by reference to the underlying and may not be identical to the underlying price.

9. Specific Instrument Risks

9.1. FX. Currency markets are highly liquid but can be extremely volatile, and are sensitive to economic data, interest-rate decisions, geopolitical events and central-bank action.

9.2. Commodities and metals. Prices can be highly volatile and affected by supply and demand, weather, geopolitical events and changes in production.

9.3. Indices. Index CFDs are exposed to the combined movements of their constituent assets and to broad market sentiment.

9.4. Cryptocurrency CFDs. CFDs on cryptocurrencies are exceptionally volatile and high-risk. Cryptocurrency markets can move dramatically over very short periods, including outside normal market hours, may suffer from low liquidity, and are subject to significant regulatory, technological and operational uncertainty. Losses can occur extremely quickly. You should treat cryptocurrency CFDs as suitable only if you fully understand and can bear these heightened risks.

10. Currency Risk

10.1. Where you trade in an Instrument denominated in a currency other than your Trading Account currency, or deposit or withdraw in a different currency, your profit or loss may be affected by exchange-rate movements. All foreign-exchange risk is borne by you.

11. Costs and Charges

11.1. Before you begin to trade, you should obtain details of all spreads, commissions, financing/swap charges and other costs for which you will be liable, as set out in the Trading Conditions and Contract Specifications on the Website. These costs reduce your net profit or increase your net loss. Holding positions overnight may incur swap/financing charges, and inactive accounts may incur an inactivity fee.

12. Funds Held on Your Behalf — Client Money Risks

12.1. The Company holds Client money in accordance with the Securities Act 2005, the FSC Rules and its Client Money Policy. Client money may be held in more than one way, and you should understand the risks attaching to each:

• Segregated client bank accounts. The majority of Client money is held in segregated client bank accounts with approved banks, separate from the Company's own money. This money is held for Clients and, in the event of the Company's insolvency, does not form part of the Company's estate.

• Funds held with a payment service provider. A portion of Client money may be held in US Dollars with a third-party payment service provider used to process deposits and withdrawals. Such funds are exposed to the operational, custody, credit and insolvency risk of that provider, and the protections applying to segregated client bank accounts may not apply in the same way.

• Funds posted to liquidity providers as margin. Because the Company operates a 100% straight-through-processing model, a portion of Client money is transferred to the Company's liquidity provider(s) as margin to maintain the offsetting positions that correspond to Client Transactions. Such funds are held by the relevant liquidity provider subject to that provider's terms and to its credit and insolvency risk. The Company remains responsible to you for these amounts, but the protections applying to segregated client bank accounts may not apply.

12.2. You acknowledge that, despite the safeguards the Company applies, the failure or insolvency of a bank, payment service provider or liquidity provider holding funds could result in the loss of some or all of the affected funds.

13. Cryptocurrency Deposits and Withdrawals

13.1. Where you fund your Trading Account using cryptocurrency, you should be aware that cryptocurrency transfers are generally irreversible, that you bear the risk of sending funds to an incorrect address or network, that the value credited depends on the exchange rate applied at the time of receipt or conversion, and that network and processing fees may apply. Withdrawals are returned, so far as practicable, to the same source.

14. Counterparty Risk

14.1. Your Transactions are entered into with the Company as counterparty, and you are therefore exposed to the Company's ability to meet its obligations to you.

14.2. The Company in turn relies on its liquidity provider(s) to hedge Client positions. The failure of a liquidity provider could affect the Company's ability to provide prices, execute Orders or return funds.

15. Technology and Execution Risks

15.1. Platform and connectivity. Trading through an electronic platform exposes you to risks including hardware or software failure, interruption or loss of connectivity, and latency. Any of these may prevent or delay the placing, execution or closing of Orders.

15.2. Mobile trading. Trading via mobile devices carries additional risk of latency, duplicated instructions and connectivity issues.

15.3. Automated and third-party tools. If you use Expert Advisors, automated strategies, signal providers, copy/social trading or virtual private networks, you do so at your own risk. The Company is not responsible for losses arising from such tools or third parties.

16. Conflicts of Interest

16.1. The Company, or a connected person, may have an interest, relationship or arrangement that is material in relation to a Transaction. The Company identifies, manages and, where necessary, discloses such conflicts in accordance with its Conflicts of Interest Policy, which is available on the Website.

17. Taxation

17.1. Your trading may have tax consequences depending on your personal circumstances and the jurisdiction in which you are subject to tax. The Company does not provide tax advice. You are responsible for obtaining your own tax advice and for meeting your tax obligations.

18. Force Majeure and Market Disruption

18.1. In a Force Majeure Event or Market Disruption Event, the Company may take the steps set out in the Terms of Business, which may include changing spreads or margin requirements, closing positions, or suspending trading. Such events may occur suddenly and may adversely affect your positions.

19. No Guarantee of Profit; Past Performance

19.1. The Company gives no guarantee, representation or assurance of any profit, or of freedom from loss. Past performance is not a reliable indicator of future results. Any market information, commentary or examples provided by the Company are general in nature and are not a promise of any particular outcome.

20. Your Acknowledgement

20.1. By accepting this Notice, you confirm that you have read and understood it, that you understand the high-risk nature of trading in FX and CFDs (including cryptocurrency CFDs), that you accept the risks described, and that you are willing and able to bear the loss of all funds you deposit with the Company.

Capitalised terms used in this Notice have the meaning given to them in the Company's Terms of Business. In the event of any conflict between this Notice and the Terms of Business, the Terms of Business prevail.