SCHEDULE 1:

SECURITIES AND FUTURES ACT 2001

SECURITIES AND FUTURES (LICENSING AND CONDUCT OF BUSINESS) REGULATIONS (Rg 10)

RISK DISCLOSURE STATEMENT REQUIRED TO BE FURNISHED UNDER REGULATION 47E(1) AND TO BE KEPT UNDER REGULATION 39(2)(c) BY THE HOLDER OF A CAPITAL MARKETS SERVICE LICENCE TO DEAL IN CAPITAL MARKETS PRODUCTS IN RESPECT OF FUTURES AND CERTAIN OVER-THE-COUNTER DERIVATIVES CONTRACTS

• 1.
  This statement is provided to you in accordance with regulation 47E(1) of the Securities and Futures (Licensing and Conduct of Business) Regulations (Rg 10).
• 2.
  This statement does not disclose all the risks and other significant aspects of trading in futures, options, over-the-counter derivatives contracts where the underlying is a currency or currency index (“OTCD currency contracts”) and spot foreign exchange contracts for the purposes of leveraged foreign exchange trading (“Spot LFX trading contracts”). 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 the risks. Trading in futures, options, OTCD currency contracts and Spot LFX trading contracts may not be suitable for many members of the public. You should carefully consider whether such trading is appropriate for you in the light of your experience, objectives, financial resources and other relevant circumstances. In considering whether to trade, you should be aware of the following:

(a) Futures, OTCD currency contracts and Spot LFX trading contracts

• (i) Effect of ‘Leverage’ or ‘Gearing’
• Transactions in futures, OTCD currency contracts and Spot LFX trading contracts carry a high degree of risk. The amount of initial margin is small relative to the value of the futures contract, OTCD currency contract or Spot LFX trading contract transaction so that the transaction is highly ‘leveraged’ or ‘geared’. 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 the 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, you may be called upon to pay substantial additional funds on short notice in order to maintain your position. If you fail to comply with a request for additional funds within the specified time, your position may be liquidated at a loss and you will be liable for any resulting deficit in your account.
• (ii) Risk-Reducing Orders or Strategies
• 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 impossible to execute such orders. At times, it is also difficult or impossible to liquidate a position without incurring substantial losses. Strategies using combinations of positions, such as ‘spread’ and ‘straddle’ positions may be as risky as taking simple ‘long’ or ‘short’ positions.

(b) Options

• (i) Variable Degree of Risk
• Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarise themselves with the type of options (i.e. put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options would have to increase for your position to become profitable, taking into account the premium paid and all transaction costs. The purchaser of options may offset its position by trading in the market or exercise the options or allow the options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a futures contract, OTCD currency contract or Spot LFX trading contract, the purchaser will have to acquire a position in the futures contract, OTCD currency contract or Spot LFX trading contract, as the case may be, with associated liabilities for margin (see the section on Futures, OTCD currency contracts and Spot LFX trading contracts above). If the purchased options expire worthless, you will suffer a total loss of your investment which will consist of the option premium paid plus transaction costs. If you are contemplating purchasing deep-out-of-the-money options, you should be aware that, ordinarily, the chance of such options becoming profitable is remote.
• Selling (‘writing’ or ‘granting’) an option generally entails considerably greater risk than purchasing options. Although the premium received by the seller is fixed, the seller may sustain a loss well in excess of the amount of premium received. The seller will be liable to deposit additional margin to maintain the position if the market moves unfavourably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a futures contract, OTCD currency contract or spot LFX trading contract, the seller will acquire a position in the futures contract, OTCD currency contract or spot LFX trading contract, as the case may be, with associated liabilities for margin (see the section on Futures, OTCD currency contracts and Spot LFX trading contracts above). If the option is ‘covered’ by the seller holding a corresponding position in the underlying futures contract, OTCD currency contract, spot LFX trading contract or another option, the risk may be reduced. If the option is not covered, the risk of loss can be unlimited.
• Certain exchanges in some jurisdictions permit deferred payment of the option premium, limiting the liability of the purchaser to margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.

(c) Additional Risks Common to Futures, Options and Leveraged Foreign Exchange Trading

• (i) Terms and Conditions of Contracts
• You should ask the corporation with which you conduct your transactions for the terms and conditions of the specific futures contract, option, OTCD currency contract or spot LFX trading contract which you are trading and the associated obligations (e.g. the circumstances under which you may become obligated to make or take delivery of the underlying interest of a futures contract, OTCD currency contract or spot LFX trading contract transaction and, in respect of options, expiration dates and restrictions on the time for exercise). Under certain circumstances, the specifications of outstanding contracts (including the exercise price of an option) may be modified by the exchange or clearing house to reflect changes in the underlying interest.
• (ii) Suspension or Restriction of Trading and Pricing Relationships
• Market conditions (e.g. illiquidity) or the operation of the rules of certain markets (e.g. the suspension of trading in any contract or contract month because of price limits or ‘circuit breakers’) may increase the risk of loss by making it difficult or impossible to effect transactions or liquidate/offset positions. If you have sold options, this may increase the risk of loss.
• Further, normal pricing relationships between the underlying interest and the futures contract, and the underlying interest and the option may not exist. This can occur when, e.g., the futures contract underlying the option is subject to price limits while the option is not. The absence of an underlying reference price may make it difficult to judge ‘fair’ value.
• (iii) Deposited Cash and Property
• You should familiarise yourself with the protection accorded to any money or other property which you deposit for domestic and foreign transactions, particularly in a firm’s insolvency or bankruptcy. The extent to which you may recover your money or property may be governed by specific legislation or local rules. In some jurisdictions, property which had been specifically identifiable as your own will be pro-rated in the same manner as cash for purposes of distribution in the event of a shortfall.

(d) Commission and Other Charges

• Before you begin to trade, you should obtain a clear explanation of all commissions, fees and other charges for which you will be liable. These charges will affect your net profit (if any) or increase your loss.

(e) Transactions in Other Jurisdictions

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

(f) Currency Risks

• The profit or loss in transactions in foreign currency-denominated futures and options contracts (whether they are traded in your 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.

(g) Trading Facilities

• 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, they are vulnerable to temporary disruption or failure. Your ability to recover certain losses may be subject to limits on liability imposed by the one or more parties, namely the system provider, the market, the clearing house or member firms. Such limits may vary. You should ask the firm with which you conduct your transactions for details in this respect.

(h) Electronic Trading

• Trading on an electronic trading system may differ not only from trading in an open-outcry market but also from trading on other electronic trading systems. If you undertake transactions on an electronic trading system, you 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 your order is either not executed according to your instructions or not executed at all.

(i) Off-Exchange Transactions

• In some jurisdictions, firms are permitted to effect off-exchange transactions. The firm with which you conduct your transactions may be acting as your 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 you undertake such transactions, you should familiarise yourself with the applicable rules and attendant risks.
• Note: “Margin” means an amount of money, securities, property or other collateral, representing a part of the value of the contract or agreement to be entered into, which is deposited by the buyer or the seller of a transaction in a futures contract, OTCD currency contract or spot LFX trading contract to ensure performance of the terms of the transaction in the futures contract, OTCD currency contract or spot LFX trading contract.

SCHEDULE 2:

RISK WARNING STATEMENT FOR OVERSEAS-LISTED INVESTMENT PRODUCTS

• 1.
  This statement is provided to you in accordance with paragraph 29D of the Notice on the Sale of Investment Products [SFA04-N12].
• 2.
  This statement does not disclose all the risks and other significant aspects of trading in an overseas-listed investment product. You should undertake such transactions only if you understand and are comfortable with the extent of your exposure to the risks.
• 3.
  You should carefully consider whether such trading is suitable for you in light of your experience, objectives, risk appetite, financial resources and other relevant circumstances. In considering whether to trade or to authorise someone else to trade for you, you should be aware of the following:
• Differences in Regulatory Regimes
• (a) Overseas markets may be subject to different regulations, and may operate differently from approved exchanges in Singapore. For example, there may be different rules providing for the safekeeping of securities and monies held by custodian banks or depositories. This may affect the level of safeguards in place to ensure proper segregation and safekeeping of your investment products or monies held overseas. There is also the risk of your investment products or monies not being protected if the custodian has credit problems or fails. Overseas markets may also have different periods for clearing and settling transactions. These may affect the information available to you regarding transaction prices and the time you have to settle your trade on such overseas markets.
• (b) Overseas markets may be subject to rules which may offer different investor protection as compared to Singapore. Before you start to trade, you should be fully aware of the types of redress available to you in Singapore and other relevant jurisdictions, if any.
• (c) Overseas-listed investment products may not be subject to the same disclosure standards that apply to investment products listed for quotation or quoted on an approved exchange in Singapore. Where disclosure is made, differences in accounting, auditing and financial reporting standards may also affect the quality and comparability of information provided. It may also be more difficult to locate up-to-date information, and the information published may only be available in a foreign language.
• Differences in Legal Systems
• (a) In some countries, legal concepts which are practiced in mature legal systems may not be in place or may have yet to be tested in courts. This would make it more difficult to predict with a degree of certainty the outcome of judicial proceedings or even the quantum of damages which may be awarded following a successful claim.
• (b) The Monetary Authority of Singapore will be unable to compel the enforcement of the rules of the regulatory authorities or markets in other jurisdictions where your transactions will be effected.
• (c) The laws of some jurisdictions may prohibit or restrict the repatriation of funds from such jurisdictions including capital, divestment proceeds, profits, dividends and interest arising from investment in such countries. Therefore, there is no guarantee that the funds you have invested and the funds arising from your investment will be capable of being remitted.
• (d) Some jurisdictions may also restrict the amount or type of investment products that foreign investors may trade. This can affect the liquidity and prices of the overseas-listed investment products that you invest in.
• Different Costs Involved
• (a) There may be tax implications of investing in an overseas-listed investment product. For example, sale proceeds or the receipt of any dividends and other income may be subject to tax levies, duties or charges in the foreign country, in Singapore, or in both countries.
• (b) Your investment return on foreign currency-denominated investment products will be affected by exchange rate fluctuations where there is a need to convert from the currency of denomination of the investment products to another currency, or may be affected by exchange controls.
• (c) You may have to pay additional costs such as fees and broker’s commissions for transactions in overseas exchanges. In some jurisdictions, you may also have to pay a premium to trade certain listed investment products. Therefore, before you begin to trade, you should obtain a clear explanation of all commissions, fees and other charges for which you will be liable. These charges will affect your net profit (if any) or increase your loss.
• Counterparty and Correspondent Broker Risks
• (a) Transactions on overseas exchanges or overseas markets are generally effected by your Singapore broker through the use of foreign brokers who have trading and/or clearing rights on those exchanges. All transactions that are executed upon your instructions with such counterparties and correspondent brokers are dependent on their respective due performance of their obligations. The insolvency or default of such counterparties and correspondent brokers may lead to positions being liquidated or closed out without your consent and/or may result in difficulties in recovering your monies and assets held overseas.
• Political, Economic and Social Developments
• (a) Overseas markets are influenced by the political, economic and social developments in the foreign jurisdiction, which may be uncertain and may increase the risk of investing in overseas-listed investment products.

SCHEDULE 3:

MARGIN TRADING RISK DISCLOSURE

• Margin trading is a form of borrowing that allows you to leverage the funds and investment products you already own to purchase additional investment products. With a margin account, you can borrow funds from Webull Securities (Singapore) Pte. Ltd. (the “Company”). This provides an opportunity for you to leverage your investment and increase your return. However, margin trading is risky, and your losses can be magnified.
• Before applying for margin, you should have a clear understanding of the rules and potential risks associated with margin, such as the pattern day trading rule, day-trading buying power versus overnight buying power, and margin calls. Margin trading increases the risk of loss and includes the possibility of a forced sale if the account equity drops below required levels.
• Leverage may not be applicable for volatile stocks. Higher margin requirements may also be imposed on volatile stocks. Information on leverage functionality on a particular stock is available during order placement.
• Initial and Maintenance Requirements
• Please note that the initial and maintenance requirements on any security or exact security can change without prior notice and can be effected immediately.  Furthermore, if the account equity falls below the required maintenance level, the account can be liquidated without prior notice. To prevent forced liquidations, we advise clients to keep a buffer above the minimum equity requirement. 
• For short positions, the margin requirements will vary depending on the type of security. Margin requirements for specific stocks can change without prior notice and can be effected immediately.
• Margin Call
• A required margin call occurs when an account's margin equity drops below the margin maintenance requirement. If the call is not met before the due date (normally 2 business days), we will liquidate enough holdings to satisfy the call. You are still liable for any losses incurred after the liquidation.
• How To Satisfy A Margin Call?
• A margin call can be met through one of the following methods:
• 1)
  Deposit enough money to raise your net account value to the required level.
• 2)
  Sell off some of your holdings.
• The call will be removed one business day after the required action. You are not entitled to an extension of time to a margin call.
• Risk Associated With Margin Financing:
• 1) You can lose more than what you have deposited in the margin account. A decline in the value of investment products that are purchased on margin may require you to provide additional funds to the Company to avoid the forced sale of your investment products or assets in your account.
• 2) The Company can force the sale of investment products or other assets in your account. If the valuation in your account falls below the maintenance margin requirements or the Company’s internal requirements, the Company can sell the investment products or other assets held at the Company to cover the margin deficiency. You are still responsible for any shortfall in the account after such a sale.
• 3) The Company can sell your holdings or other assets without having to contact you successfully. While we attempt to notify our customers to our best ability, we may not always be able to do so. The Company will immediately sell off if the customer does not meet the requirements on due date.
• 4) You are not entitled to choose which investment products or other assets in your account are liquidated or sold to meet a margin call It is at the Company’s sole discretion to decide which security to sell to protect its interests.
• 5) The Company can increase its in-house maintenance margin requirements at any time and is not required to provide you with advance written notice. Such changes will take effect immediately and may result in the issuance of a margin call. Failure to satisfy the margin call may cause a forced sale of your investment holdings.
• 6) You are not entitled to an extension of time on a margin call. In many jurisdictions, a margin call must be performed within a certain number of days, as required by the local financial services regulator. We are unable to grant any extension in such scenarios.

SCHEDULE 4:

Risk Associated with Specified Products Comprising of Digital Payment Tokens (“DPT Products”):

• This Risk Disclosure Statement does not disclose all the risks and other significant aspects of trading in DPT Products. You should carefully consider whether such trading is appropriate for you in the light of your experience, objectives, financial resources, and other relevant circumstances. In considering whether to trade, you should be aware of the following:
• Trading in DPT Products involves inherent risks due to the dynamic nature of the cryptocurrency market. The risk of loss in trading of DPT Products can be substantial and principal is not guaranteed.
• It is essential to consider the following factors before engaging in any transactions:
• 1. Market Volatility: DPT Products exhibit significant price volatility. Prices can fluctuate rapidly and unpredictably, leading to potential financial losses. Investors should be prepared for sudden and substantial changes in values.
• 2. Regulatory Risks: The regulatory environment for DPT Products is evolving. Changes in regulations or government policies may impact the legality, use, and value of DPT Products. Investors should stay informed about regulatory developments in their jurisdiction.
• 3. Cyber Security Risks: DPT Products are susceptible to cyber threats, hacking, and other security breaches. Investors should be aware of such risks as it could affect the price of the DPT Products.
• 4. Liquidity Risks: Some DPT Products may face challenges in terms of liquidity, making it difficult to buy or sell assets at desired prices. Illiquid markets can result in delays and increased vulnerability to price manipulation.
• 5. Technology Risks: The underlying technology of DPT Products, such as blockchain, may face technical issues, bugs, or vulnerabilities. Smart contract execution, network congestion, or other technological challenges can impact the functionality and security of the DPT Products.
• 6. Market Perception: The perception of DPT Products by the public and mainstream financial institutions can influence market dynamics. Negative sentiment or external factors may lead to sudden and drastic price movements.
• 7. Operational Risks: Downtime, technical glitches, or disruptions in services could affect the ability to execute transactions.
• 8. Speculative Nature: Many DPT Products are speculative investments. Investors should carefully assess their risk tolerance and financial situation before engaging in trading activities and consider the possibility of losing their entire investment.
• 9. Information Accuracy: Market information and pricing obtained from various sources may not always be accurate or reliable. Investors should exercise due diligence when researching and verifying information related to DPT Products.
• It is crucial for investors to seek professional advice, conduct thorough research, and stay informed about market developments before trading in DPT Products. The risks associated with DPT Products should be carefully weighed against potential rewards.