Global Futures Additional Risk Disclosure: Forex

Please review our additional risk disclosure below and follow the on-screen instructions to electronically sign this document.

1. You acknowledge that trading in forex speculative and involves a high degree of risk, and that no promises or representations regarding profits or limitation of losses have been made by Global Futures Exchange & Trading Company, Inc. or its employees or agents (collectively, “GFETC”). Because of the complexity, only genuine risk capital should be used for trading.
2. No representation is made that taking educational forex courses, paper trading or online simulated trading will increase your chances of success in trading forex. Simply because a subscriber of the educational publication follows its methodologies does not mean that the customer’s trading will be profitable or losses will be limited. As a result, customer acknowledges that the high degree of risk involved in forex trading is not lessened by having subscribed to materials of any educational service or paper traded and does not guarantee or assure that the customer will make a profit or limit his losses.
3. You acknowledge that you may receive trading recommendations by GFETC or its agents and employees, and that any trading recommendations received shall not be relied upon by you for accuracy. You must make your own independent determination as to the advisability of a particular trade, or rely on the independent advice of a CTA or other account manager not affiliated with GFETC. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under- or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses. There have been no promises, guarantees or warranties suggesting that any trading will result in a profit or will not result in a loss.
4. It has been widely reported that most forex traders lose money. GFETC, its agents and employees have no reason to believe that individuals who subscribe to educational forex courses, attend seminars, and/or workshops perform any better than other forex traders.
5. You acknowledge that you have exercised independent judgment in selecting a forex brokerage firm, and that opening an account with GFETC is purely optional and voluntary.
6. This additional risk disclosure document is supplemental to all other risk disclosure documents provided to you by GFETC, but does not replace any other risk disclosures given to you when opening your account. In the event of a conflict of terms between this disclosure and your Customer Agreement or Risk Disclosure, the Customer Agreement or Risk Disclosure offered by your counterparty controls.
7. GFETC encourages you to check your equity runs daily to determine its accuracy or report any errors. You are limited to 24-hours in which you can report errors contained in the equity run. If you do not understand how to read your equity run, please contact your broker or our Customer Service Department for assistance. If your account is being traded by someone other than yourself, it is imperative that you check your equity runs as soon as possible to correct any errors; otherwise, we will assume you have correctly received it.
8. Accounts in which you have assigned someone else power of attorney to trade your account (“POA”), that account must only be traded by the POA and not by both you and your POA at the same time. This is to avoid confusion and mistakes between the two parties. If the Customer wants to trade his own account, he should open a second account and allow the POA to continue trading the first account, or remove the POA as having authority to trade the account. GFETC is not responsible for trading errors or entries as a result of both parties trading the same account. POAs must be revoked by the account owner(s) in writing in order to be effective.
9. By your signature below, you agree that in any action brought by you against GFETC, its agents and employees, or its counterparty, with which it has contractual and indemnification responsibilities, in which GFETC or its counterparty prevails, to reimburse GFETC for all legal fees and costs, including attorneys’ fees, expended in conjunction with such matter, including indemnification cost between GFETC and its counterparty(s). By your signature below you are hereby waiving your right to contest this provision.
10. This brief statement does not disclose all of the risks associated with trading in futures and options. Customers should undertake forex trading only if they fully understand the nature of the contract and contractual relationship into which they are entering and the extent of their capital exposure risk. Trading in forex is not suitable for everyone. Customers are advised to carefully consider whether trading is appropriate for them in light of their experience, objectives, financial resources and other relevant circumstances.
11. You acknowledge that you shall be liable for all losses in your account(s) whether or not your account(s) is liquidated for any debts and deficiencies, including, but not limited to, interest, costs, expenses, maintenance fees, exchange rates, margin call fees, liquidation fees, and attorneys’ fees, including all debts and deficiencies resulting from a liquidation of your account(s).
12. Special Risk Disclosure Document for System Traders: [CFTC Rule 4.41(b)(1)(I)] Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under or over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses. There have been no promises, guarantees or warranties suggesting that any trading will result in a profit or will not result in a loss.
13. All actions, disputes, claims or proceedings, including but not limited to any arbitration proceeding, including National Futures Association ("NFA") arbitrations, arising directly or indirectly in connection with, out of, or related to or from the Customer Agreement, any other agreement between the Customer, Global Futures and the FCM, or any orders entered or transactions effect for your account(s), whether or not initiated by Global Futures shall be adjudicated only in courts or other dispute resolution forums whose situs is within the City of Los Angeles, State of California, and Customer hereby specifically consents and submits to the jurisdiction of any state or federal court or arbitration proceedings located within the City of Los Angeles, State of California.

Disclosure last revised 3/2011