FGI - FinTech Global Incorporated

Fees and Risks

When entering a transaction involving financial products, you, the client, may be required to pay a predetermined commission fee or other costs on specific instruments (for example, in the case of stock transactions, a brokerage commission based on a pre-agreed rate plus consumption tax are applied to the trade, and in the case of investment trusts, sales commission fees predetermined by the individual product and general fees, such as trust fees). You must also realize that all financial products carry risks specific to the individual product, and you, as a holder of such products, could incur significant losses or payment obligations arising from changes in political, economic and financial conditions at home and abroad, market conditions, such as foreign exchange rates, stock prices, commodity prices, real estate prices and interest rate levels, the creditworthiness of issuers and underlying assets used for benchmarking purposes.

Financial products, such as real estate trust beneficiary rights and silent partnership investment units, carry the risk of loss on invested principal (proceeds from sale or contributed amount), and losses could potentially exceed the amount of invested principal primarily due to changes in value caused by such events as a downturn in rents and land prices on the underlying asset properties of the investment, faltering occupancy rates in the target properties, defects, damage or age-related deterioration of the target properties, and acts of God.

Furthermore, in the case of transactions involving derivatives, FGI will require you, the client, to deposit an agreed-upon sum as a security deposit, and may require additional security deposits, and the amount of the transaction may exceed the amount of the security deposit. (The proportion of the security deposit relative to the notional amount of the transaction cannot be calculated at this point in time because the terms and conditions of the transaction have not been determined.) In addition, changes in the underlying assets used for benchmarking purposes, as mentioned above, may result in losses or payment obligations in excess of the security deposit. Moreover, depending on the type of transaction, a difference may arise between the equivalent of bid price and offer price described under Article 6, Paragraph 1, Item 6 of the Enforcement Order for the Financial Instruments and Exchange Law.

Please note that inherent risks and commission fees differ for each financial product. It is incumbent upon you, the client, to read thoroughly the pre-trade documentation provided to you, the prospectus or customer information. Some instruments carry rights that may be exercised during a specific period. Please be aware that exercise periods have end dates.

In the case of instruments with early cancellation, automatic or other early termination clauses, the transaction may terminate before the original maturity date.

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