CHRISTFUND Futures

Risk Disclosure

RISK DISCLOSURE STATEMENT FOR FUTURES AND OPTIONS

This brief statement does not disclose all of the risks and other significant aspects of trading in futures and options. 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 in futures and options 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.

General

1. RISK OF SECURITIES TRADING
The prices of securities fluctuate, sometimes dramatically. The price of a security may move up or down, and may become valueless. It is as likely that losses will be incurred rather than profit made as a result of buying and selling securities.

2. RISK OF TRADING FUTURES AND OPTIONS
The risk of loss in trading futures contracts or options is substantial. In some circumstances, you may sustain losses in excess of your initial margin funds. Placing contingent orders, such as "stop-loss" or "stop-limit" orders, will not necessarily avoid loss. Market conditions may make it impossible to execute such orders. You may be called upon at short notice to deposit additional margin funds. If the required funds are not provided within the prescribed time, your position(s) may be liquidated. You will remain liable for any resulting deficit in your account. You therefore agree to study and understand futures contracts and options before you trade and carefully consider whether such trading is suitable in the light of your financial position and investment objectives. You will trade in options only if you understand the exercise and expiration procedures and the rights and obligations upon exercise or expiry.

3. RISK OF MARGIN TRADING
The risk of loss in financing a transaction by deposit of collateral is significant. You may sustain losses in excess of your cash and any other assets deposited as collateral with the Broker. Market conditions may make it impossible to execute contingent orders, such as "stop-limit" orders. You may be called upon at short notice to make additional margin deposits or interest payments. If the required margin deposits or interest payments are not made within the prescribed time, your collateral may be liquidated without your consent. Moreover, you will remain liable for any resulting deficit in your account and interest charged on your account. You will therefore carefully consider whether such a financing arrangement is suitable in light of your own financial position and investment objectives.

Futures

4. EFFECT OF  'LEVERAGE' OR  'GEARING'
Transactions in futures carry a high degree of risk. The amount of initial margin is small relative to the value of the Futures Contract so that transactions are '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 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 to maintain your position. If you fail to comply with a request for additional funds within the time prescribed, your position may be liquidated at a loss and you will be liable for any resulting deficit.

5. RISK-REDUCING ORDERS OR STRATEGIES
The placing of certain orders (e.g. 'stop-loss' orders, 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. Strategies using combinations of positions, such as 'spread' and 'straddle' positions may be as risky as taking simple 'long ' or 'short' positions.

6. RISKS OF CLIENT ASSETS RECEIVED OR HELD OUTSIDE HONG KONG_
Your assets received or held by Christfund Futures Ltd or its nominee(s) outside Hong Kong are subject to the applicable laws and regulations of the relevant overseas jurisdiction which may be different from the Securities and Futures Ordinance (Cap. 571) and the rules made thereunder. Consequently, such your assets may not enjoy the same protection as that conferred on your assets received or held on Hong Kong.

Options

7. VARIABLE DEGREE OF RISK
Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize themselves with the type of option (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 must increase for your position to become profitable, taking into account the premium and all transaction costs.

The purchaser of options may offset 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 future, the purchaser will acquire a futures position with associated liabilities for margin (see the section on Futures above). If the purchased options expire worthless, you will suffer a total loss of your investment which will consist of the option premium plus transaction costs. If you are contemplating purchasing deep-out-of-the-money options, you should be aware that the chance of such options becoming profitable ordinarily 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 that amount. The seller will be liable for 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 future, the seller will acquire a position in a future with associated liabilities for margin (see the section on Futures above). If the option is 'covered' by the seller holding a corresponding position in the underlying interest or a future 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, exposing the purchaser to liability for 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.

Privacy

Privacy Statement
 
 
Supply of data

You may from time to time supply to Christfund Futures Limited, their holding company, subsidiaries or affiliates and/or any subsidiaries or affiliates of their holding company data in connection with the opening or maintenance of accounts with any Christfund Futures Limited Company or the provision of services to you by any Christfund Futures Limited Company.

You are not required to provide any data to any Christfund Futures Limited Company unless you choose to do so. However, if you fail to supply any such data, the Christfund Futures Limited Company may not be able to open or maintain an account for you or provide you with any services.

Christfund Futures Limited may collect personal data through its website by using cookies, clicktrails or other methods of monitoring web usage. If you do not want to receive a cookie from Christfund Futures Limited website, you may set your browser to refuse cookies or to notify you when you receive a cookie, which you may then refuse upon such notice.

Use of the data

All data relating to you held by Christfund Futures Limited, whether supplied by you or a third party and whether before or after any Christfund Futures Limited Company opens any account for you, may be used for the following purposes:

(a) ongoing account administration and the provision of any securities trading and related services to you;

(b) compliance with internal control or verification procedures;

(d) collection of any sums due or enforcement of any charge or security in favour of any Christfund Futures Limited Company;

(e) designing and/or marketing securities trading and other services or products of any Christfund Futures Limited Company;

(f) forming part of the records of the recipient of the data as to the business carried on by it;

(g) observing any legal, governmental or regulatory requirements of Hong Kong or other relevant jurisdiction including any disclosure or notification requirements; or

(h) any other purpose relating to the business and dealings of Christfund Futures Limited.

The personal data will be retained by Christfund Futures Limited Company for such period as it may in its discretion determine.

Transfer of data

All data relating to you may be provided by the recipient to the following persons whether or not they are in Hong Kong:

(a) any Christfund Futures Limited Company;

(b) any agent, contractor or third party service provider who provides administrative, telecommunications, computer, payment or securities clearing, nominee, custodian or other services to any member of Christfund Futures Limited;

(c) where data is collected by a Christfund Futures Limited Company as agent of any other person or for forwarding to or otherwise for the purpose of making any application or request to any other person for any facility or service; any such person who may not be in Hong Kong and may not be subject to the Personal Data (Privacy) Ordinance and not restricted in the use of the data; any trustee, registrar or custodian of any relevant unit trust or other collective investment scheme or any insurance company in connection with any service provided or to be provided to you by Christfund Futures Limited or any centralised securities depositary or registrar of securities held for you;

(d) credit reference agencies and, in the event of default, debt collection agencies;

(e) any person to whom Christfund Futures Limited Company transfers or proposes to transfer its interests and/or obligations in respect of (f) any of your accounts with Christfund Futures Limited Company or any services provided to you; or

(g) any person to whom Christfund Futures Limited Company is required by law, regulation, court order or request from any governmental or regulatory body to provide such data.

Without prejudice to the foregoing, all data relating to you may be transferred to any place outside Hong Kong, whether for the processing, holding or use of such data outside Hong Kong, and also to service providers which offer services to any Christfund Futures Limited Company in connection with the operation of its business.

Access to and correction of data

In accordance with the Personal Data (Privacy) Ordinance, you have the right to:

(a) check whether Christfund Futures Limited Company holds data about you;

(b) request access to and the correction of any such data held by Christfund Futures Limited Company;

(c) ascertain Christfund Futures Limited Company‘s policies and practices in relation to data and to be informed of the kind of data held by Christfund Futures Limited Company; and

(d) in relation to customer credit, request to be informed which items of data are routinely disclosed to credit reference agencies or debt collection agencies, be provided with further information to enable the making of access and correction request to the relevant credit reference agency or debt collection agency.

Christfund Futures Limited Company may charge a reasonable fee for processing any data access request.

You may direct any request for access to or correction of data or for information regarding policies and practices and kinds of data held by Christfund Futures Limited Company to:

Christfund Futures Limited
Tel: 2147 9898

To the extent permitted by law, Christfund Futures Limited Company shall not be under any obligation of confidentiality to you regarding any information or materials which you submit using this website.

Nothing in this notice shall limit the rights of clients under the Personal Data (Privacy) Ordinance.

Disclaimer

RISK DISCLOSURE STATEMENT FOR FUTURES AND OPTIONS

General

Futures

Options

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