This brief statement does not disclose all of the risks and other significant aspects of trading foreign exchange products on margin. In light of the risks, you should undertake such transactions only if you understand the nature of the contracts (and contractual relationships) into which you are entering and the extent of your exposure to risk. Trading of foreign exchange on margin is not suitable for many members of the public. You should carefully consider whether trading is appropriate for you in light of your experience, objectives, financial resources and other relevant circumstances.

Foreign Exchange Trading is highly speculative and is suitable only for those Clients who (a) understand and are willing to assume the economic, legal and other risks involved, and (b) are financially able to assume losses significantly in excess of Margin or deposits. Foreign Exchange is not an appropriate investment for retirement funds. Client represents warrants and agrees that client understands these risks; that Client is willing and able, financially and otherwise, to assume the risks of Foreign Exchange Trading and that loss of Client's entire Account Balance will not change Client's life style.

The high leverage and low Margin associated with Foreign Exchange Trading can result in significant losses due to price changes in Foreign Exchange Contracts.

Transactions in margined foreign exchange contracts carry a high degree of risk. The amount of initial margin is small relative to the value of the contract so that transactions are 'leveraged'. A relatively small market movement will have a proportionately larger impact on the funds you have deposited or will have to deposit: this may work against you as well as for you. You may sustain a total loss of initial margin funds and any additional funds deposited with the firm to maintain your position. If the market moves against your position or margin levels are increased, your position may be liquidated at a loss and you will be liable for any resulting deficit.

There are no guarantees of profit or freedom from loss in Foreign Exchange Trading. Client has received no such guarantees from UGM or from any of its employees or representatives. Client is aware of the risks inherent in Foreign Exchange Trading and is financially able to bear such risks and withstand any losses incurred.

Due to market conditions or other circumstances, UGM may be unable to close out Client's position at the level specified by Client, and Client agrees UGM will bear no liability for failure to do so. The placing of certain orders (e.g., "stop-loss" orders, where permitted under local law, or "stop-limit" orders), which are intended to limit losses to certain amounts, may not be effective because market conditions may make it difficult or impossible to execute such orders and/or liquidate/offset positions.

In the event that Client grants trading authority or control over Client's Account to a third party (the "Trading Agent"), whether on a discretionary or non-discretionary basis, UGM shall in no way be responsible for reviewing Client's choice of such Trading Agent or for making any recommendations with respect thereto. UGM makes no representations or warranties concerning any Trading Agent; UGM shall not be responsible for any loss to Client occasioned by the actions of the Trading Agent; and UGM does not, by implication or otherwise, endorse or approve of the operating methods of the Trading Agent. If Client gives the Trading Agent authority to exercise any of its rights over its Account, Client does so at Client's risk.

Since UGM does not control signal power, its reception or routing via Internet, configuration of Client's equipment or reliability of its connection, UGM shall not be liable for any claims, losses, damages, costs or expenses, including attorneys' fees, caused, directly or indirectly, by any breakdown or failure of any transmission or communication system or computer facility, whether belonging to UGM, , Client, any market, or any settlement or clearing system when Client trades online (via Internet).

Should a quoting error occur due to a mistype of a quote or a misquote given by telephone (including responses to Client requests), UGM is not liable for any resulting errors in Account Balances and reserves the right to make necessary corrections or adjustments on the Account involved. Any dispute arising from such quoting errors will be resolved on the basis of the fair market value, as determined by UGM, in its sole discretion, of the relevant Currency at the time such an error occurred.

UGM shall not be liable to Client for any claims, losses, damages, costs or expenses, including attorneys' fees, caused, directly or indirectly, by any events, actions or omissions, without limitation, claims, losses, damages, costs and expenses, including attorneys' fees, resulting from civil unrest, war, insurrection, international intervention, governmental action (including, without limitation, exchange controls, forfeitures, nationalizations, devaluations), natural disasters, acts of God, market conditions, inability to communicate with any relevant person or any delay, disruption, failure or malfunction of any transmission or communication system or computer facility, whether belonging to UGM, Client, any market, or any settlement or clearing system.

Before Client begins to trade, Client should obtain a clear explanation of all commission, fees and other charges for which Client will be liable. These charges will affect Client's net profit (if any) or increase Client's loss.

Transactions on markets in other jurisdictions, including markets formally linked to a domestic market, may expose Client to additional risk. Such markets may be subject to regulation, which may offer different or diminished investor protection. Before Client trades, Client should enquire about any rules relevant to particular transactions. The local regulatory authority will be unable to compel the enforcement of the rules of regulatory authorities or markets in other jurisdictions where Client's transactions have been effected. Client should ask the firm with which Client deals for details about the types of redress available in both Client's home jurisdiction and other relevant jurisdictions before Client starts to trade.

The profit or loss in transactions in foreign currency-denominated contracts (whether they are traded in Client's own or another jurisdiction) will be affected by fluctuations in currency rates where there is a need to convert from the currency denomination of the contract to another currency.

Most open-outcry and electronic 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 systems, these component systems are vulnerable to temporary disruption or failure. Client's ability to recover certain losses may be subject to limits on liability imposed by the system provider, the market, the clearinghouse and/or member firms. Such limits may vary: Client should ask the firm with which Client deals for details in this respect.

Trading on a specific electronic trading system may differ not only from trading in an open-outcry market but also from trading on other electronic trading systems. If Client undertakes transactions on an electronic trading system, Client will be exposed to risks associated with the system including the failure of hardware and software. The result of any system failure may be that Client's order is either not executed according to Client's instructions or is not executed at all.

In some jurisdictions, and only then in restricted circumstances, firms are permitted to effect off-exchange transactions. The firm with which Client deals may be acting as Client's counterparty to the transaction. It may be difficult or impossible to liquidate an existing position, to assess the value, to determine a fair price or to assess the exposure to risk. For these reasons, these transactions may involve increased risks. Off-exchange transactions may be less regulated or subject to a separate regulatory regime. Before Client undertakes such transactions, Client should familiarize himself with applicable rules and attendant risks.

UGM's automated order entry system provides immediate transmission of Client's order once Client enters the notional amount and clicks "Buy/Sell." There is no "second look" before transmission, and Market Orders cannot be cancelled. This feature may be different from other trading systems. Client should be come familiar with the Demo Trading System order entry process before trading online with UGM. Client agrees that by using UGM's order-entry system, Client agrees to the one-click system and accepts the risk of this immediate transmission feature.

UGM does not guarantee any entry orders (stop orders, limit orders, or trailing stops) used by UGM clients, however, that it will be possible under all market conditions to execute the order at the price specified. In an active, volatile market, the market price may be declining (or rising) so rapidly that there is no opportunity for UGM to liquidate your position at the entry order price you have designated. Under these circumstances, UGM dealers only obligation is to execute your order at the best price that is available.