OFF-EXCHANGE FOREIGN CURRENCY TRANSACTIONS involve the leveraged trading of contracts denominated in foreign currency conducted with a futures commission merchant or a retail foreign exchange dealer as your counterparty. Because of the leverage and other risks disclosed here, you can rapidly lose all of the funds you deposit for such trading and you may lose more than you deposit.

You should carefully consider the following points before determining whether such trading is appropriate for you:

1. Trading is Not on a Regulated Market or Exchange – Your Dealer is Your Trading Partner

This creates a direct conflict of interest.
The off-exchange foreign currency trading you are entering into is not conducted on an interbank market, nor is it on a regulated futures exchange subject to oversight by the Commodity Futures Trading Commission (CFTC).

• When you sell, the dealer is the buyer.
• When you buy, the dealer is the seller.

As a result, when you lose money trading, your dealer may make money on such trades, in addition to any fees, commissions, or spreads charged.

Before engaging in retail foreign exchange trading, confirm the registration status of your counterparty.

2. Electronic Trading Platform is Not an Exchange

Any electronic trading platform you use to access retail forex transactions is not an exchange, but merely an electronic connection to your dealer.

• You are transacting only with your dealer, not with other traders or entities.
• The availability and functionality of the platform are governed only by your account agreement with the dealer.
• If the platform becomes unavailable, the terms of your account agreement dictate the outcome.

3. Your Deposits Have No Regulatory Protections

Funds you deposit with a futures commission merchant or retail foreign exchange dealer are not protected by CFTC customer fund protections.

• These funds may be commingled with the dealer’s own operating funds or used for other purposes.
• If the dealer becomes bankrupt or insolvent, your funds may be treated as an unsecured creditor’s claim, meaning you may not recover them in full.

4. Limited Ability to Offset or Liquidate Positions

Since these transactions are not made on a regulated exchange:

• Your ability to close or offset positions depends entirely on what your dealer offers.
• The dealer sets its own prices, which may or may not reflect external market prices.
• Prices may differ between customers at the dealer’s discretion.

5. Paid Solicitors May Have Undisclosed Conflicts

Some dealers may compensate introducing brokers or solicitors for bringing in accounts.
These individuals:

• May lack trading expertise.
• May have conflicts of interest based on their compensation methods.

You should verify their registration status and request written confirmation of any information you rely upon when making decisions.

Warning on Misleading Statements

Be cautious of any statements by dealers or sales representatives that minimize the risks or contradict this disclosure.
Such statements may indicate potential fraud.

Acknowledgment of Understanding

This brief statement cannot disclose all risks of trading off-exchange foreign currency contracts.

I hereby acknowledge that I have received and understood this risk disclosure statement.

Date: _______________________
Signature of Customer: _______________________

PERFORMANCE OF NON-DISCRETIONARY RETAIL FOREX CUSTOMER ACCOUNTS AT BFT

Past performance is not necessarily indicative of future results.

Additional Risk Disclosures

Weekend Trading

BFT’s trading hours follow the global financial markets: Sunday 5:00 p.m. to Friday 5:00 p.m. (New York time).

During weekends:

• You cannot open or close positions.
• Spreads (difference between bid and ask prices) often widen on Friday at 4:15 p.m., reflecting decreased liquidity.
• Market prices can change significantly (“gap”) when trading resumes Sunday.

To avoid margin closeouts:

• Maintain sufficient margin at all times.
• Reduce positions, add funds, or adjust stop-loss/take-profit levels before the weekend.

Slippage

The BFT trading system provides live forex prices.
However, in fast-moving markets or due to order delays, the price shown may change by the time your order executes.

• The difference between the displayed and executed price is slippage.
• BFT does not re-quote prices — trades are executed at the prevailing rate when received.
• Slippage can work in your favor or against you.
• To control slippage, you can set price bounds on market or entry orders.

High-Risk Accounts

Trading may be too risky if you meet one or more of these conditions:

• Unemployed, a student, or on a fixed income/pension.
• Undergoing bankruptcy proceedings or experiencing financial hardship.
• Annual income or net worth below $25,000 USD.
• Limited experience in foreign currency trading or investments.
• Planning to trade more than 10% of your net worth.

Warning:
Trading leveraged foreign currency contracts is extremely risky and may result in total loss of funds.
Only invest money you can afford to lose entirely.

Leveraged Trading

Trading on leverage means that small market movements can have a large impact, potentially causing you to lose more than your initial deposit.

We Do Not Provide Investment Advice

BFT does not act as your financial advisor.
We only execute your trading instructions.

• It is your responsibility to determine whether a trade aligns with your financial goals.
• Any information, strategy, or communication from BFT should not be considered investment advice.

Customer Funds

Funds deposited with BFT:

• Are commingled with other customer funds and held in banks.
• Are not segregated into individual protected accounts.
• May be invested by BFT in permitted investments under CFTC Regulation 1.25.
• Are not insured by the Securities Investor Protection Corporation or any other entity.

In the event of BFT’s bankruptcy or insolvency, your funds will be handled under U.S. bankruptcy law and may be at risk of partial or total loss.