NFA DISCLOSURE

THE COMMODITY FUTURES TRADING COMMISSION HAS NOT PASSED UPON THE
MERITS OF PARTICIPATING IN THIS TRADING PROGRAM NOR HAS THE
COMMISSION PASSED ON THE ADEQUACY OR ACCURACY OF THIS DISCLOSURE
DOCUMENT.

 

ROYSHAN ASSET MANAGEMENT IS A MEMBER OF NFA AND IS SUBJECT TO NFA'S
REGULATORY OVERSIGHT AND EXAMINATIONS. ROYSHAN ASSET MANAGEMENT HAS
ENGAGED OR MAY ENGAGE IN UNDERLYING OR SPOT VIRTUAL CURRENCY
TRANSACTIONS IN A MANAGED ACCOUNT PROGRAM. ALTHOUGH NFA HAS
JURISDICTION OVER  ROYSHAN ASSETS MANAGEMENT AND ITS MANAGED ACCOUNT
PROGRAM, YOU SHOULD BE AWARE THAT NFA DOES NOT HAVE REGULATORY
OVERSIGHT AUTHORITY FOR UNDERLYING OR SPOT MARKET VIRTUAL
CURRENCY PRODUCTS OR TRANSACTIONS OR VIRTUAL CURRENCY
EXCHANGES, CUSTODIANS OR MARKETS. YOU SHOULD ALSO BE AWARE THAT
GIVEN CERTAIN MATERIAL CHARACTERISTICS OF THESE PRODUCTS,
INCLUDING LACK OF A CENTRALIZED PRICING SOURCE AND THE OPAQUE
NATURE OF THE VIRTUAL CURRENCY MARKET, THERE CURRENTLY IS NO
SOUND OR ACCEPTABLE PRACTICE FOR NFA TO ADEQUATELY VERIFY THE
OWNERSHIP AND CONTROL OF A VIRTUAL CURRENCY OR THE VALUATION
ATTRIBUTED TO A VIRTUAL CURRENCY BY ROYSHAN ASSET MANAGEMENT

Risk Disclosure Statement

RISK DISCLOSURE STATEMENT

THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL.
YOU SHOULD THEREFORE CAREFULLY CONSIDER WHETHER SUCH TRADING IS
SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION. IN CONSIDERING
WHETHER TO TRADE OR TO AUTHORIZE SOMEONE ELSE TO TRADE FOR YOU,
YOU SHOULD BE AWARE OF THE FOLLOWING:
IF YOU PURCHASE A COMMODITY OPTION YOU MAY SUSTAIN A TOTAL LOSS OF
THE PREMIUM AND OF ALL TRANSACTION COSTS.
IF YOU PURCHASE OR SELL A COMMODITY FUTURES CONTRACT OR SELL A
COMMODITY OPTION OR ENGAGE IN OFF-EXCHANGE FOREIGN CURRENCY
TRADING YOU MAY SUSTAIN A TOTAL LOSS OF THE INITIAL MARGIN FUNDS OR
SECURITY DEPOSIT AND ANY ADDITIONAL FUNDS THAT YOU DEPOSIT WITH
YOUR BROKER TO ESTABLISH OR MAINTAIN YOUR POSITION. IF THE MARKET
MOVES AGAINST YOUR POSITION, YOU MAY BE CALLED UPON BY YOUR
BROKER TO DEPOSIT A SUBSTANTIAL AMOUNT OF ADDITIONAL MARGIN
FUNDS, ON SHORT NOTICE, IN ORDER TO MAINTAIN YOUR POSITION. IF YOU DO
NOT PROVIDE THE REQUESTED FUNDS WITHIN THE PRESCRIBED TIME, YOUR
POSITION MAY BE LIQUIDATED AT A LOSS, AND YOU WILL BE LIABLE FOR ANY
RESULTING DEFICIT IN YOUR ACCOUNT.
UNDER CERTAIN MARKET CONDITIONS, YOU MAY FIND IT DIFFICULT OR
IMPOSSIBLE TO LIQUIDATE A POSITION. THIS CAN OCCUR, FOR EXAMPLE,
WHEN THE MARKET MAKES A ‘‘LIMIT MOVE.’’
THE PLACEMENT OF CONTINGENT ORDERS BY YOU OR YOUR TRADING
ADVISOR, SUCH AS A ‘‘STOP-LOSS’’

OR ‘‘STOP-LIMIT’’ ORDER, WILL NOT NECESSARILY LIMIT YOUR LOSSES TO THE
INTENDED AMOUNTS, SINCE MARKET CONDITIONS MAY MAKE IT IMPOSSIBLE
TO EXECUTE SUCH ORDERS.
A ‘‘SPREAD’’ POSITION MAY NOT BE LESS RISKY THAN A SIMPLE ‘‘LONG’’ OR
‘‘SHORT’’ POSITION.
THE HIGH DEGREE OF LEVERAGE THAT IS OFTEN OBTAINABLE IN COMMODITY
INTEREST TRADING CAN WORK AGAINST YOU AS WELL AS FOR YOU. THE USE
OF LEVERAGE CAN LEAD TO LARGE LOSSES AS WELL AS GAINS.
IN SOME CASES, MANAGED COMMODITY ACCOUNTS ARE SUBJECT TO
SUBSTANTIAL CHARGES FOR MANAGEMENT AND ADVISORY FEES. IT MAY BE
NECESSARY FOR THOSE ACCOUNTS THAT ARE SUBJECT TO THESE CHARGES
TO MAKE SUBSTANTIAL TRADING PROFITS TO AVOID DEPLETION OR
EXHAUSTION OF THEIR ASSETS. THIS DISCLOSURE DOCUMENT CONTAINS, AT
PAGE (insert page number), A COMPLETE DESCRIPTION OF EACH FEE TO BE
CHARGED TO YOUR ACCOUNT BY THE COMMODITY TRADING ADVISOR.
THIS BRIEF STATEMENT CANNOT DISCLOSE ALL THE RISKS AND OTHER
SIGNIFICANT ASPECTS OF THE COMMODITY INTEREST MARKETS. YOU SHOULD
THEREFORE CAREFULLY STUDY THIS DISCLOSURE DOCUMENT AND
COMMODITY INTEREST TRADING BEFORE YOU TRADE, INCLUDING THE
DESCRIPTION OF THE PRINCIPAL RISK FACTORS OF THIS INVESTMENT, AT PAGE ( Not Available).

YOU SHOULD ALSO BE AWARE THAT THIS COMMODITY TRADING ADVISOR MAY
ENGAGE IN TRADING FOREIGN FUTURES OR OPTIONS CONTRACTS.
TRANSACTIONS ON MARKETS LOCATED OUTSIDE THE UNITED STATES,
INCLUDING MARKETS FORMALLY LINKED TO A UNITED STATES MARKET MAY
BE SUBJECT TO REGULATIONS WHICH OFFER DIFFERENT OR DIMINISHED
PROTECTION. FURTHER, UNITED STATES REGULATORY AUTHORITIES MAY BE
UNABLE TO COMPEL THE ENFORCEMENT OF THE RULES OF REGULATORY
AUTHORITIES OR MARKETS IN NON-UNITED STATES JURISDICTIONS WHERE
YOUR TRANSACTIONS MAY BE EFFECTED. BEFORE YOU TRADE YOU SHOULD
INQUIRE ABOUT ANY RULES RELEVANT TO YOUR PARTICULAR
CONTEMPLATED TRANSACTIONS AND ASK THE FIRM WITH WHICH YOU INTEND
TO TRADE FOR DETAILS ABOUT THE TYPES OF REDRESS AVAILABLE IN BOTH
YOUR LOCAL AND OTHER RELEVANT JURISDICTIONS.
If the CTA may engage in retail forex transactions in the offered trading program(s), the

Risk

YOU SHOULD ALSO BE AWARE THAT THIS COMMODITY TRADING ADVISOR MAY
ENGAGE IN OFF-EXCHANGE FOREIGN CURRENCY TRADING. SUCH TRADING IS 
NOT CONDUCTED IN THE INTERBANK MARKET. THE FUNDS DEPOSITED WITH A
COUNTERPARTY FOR SUCH TRANSACTIONS WILL NOT RECEIVE THE SAME
PROTECTIONS AS FUNDS USED TO MARGIN OR GUARANTEE EXCHANGETRADED

FUTURES AND OPTION CONTRACTS. IF THE COUNTERPARTY
BECOMES INSOLVENT AND YOU HAVE A CLAIM FOR AMOUNTS DEPOSITED OR
PROFITS EARNED ON TRANSACTIONS WITH THE COUNTERPARTY, YOUR CLAIM
MAY NOT BE TREATED AS A COMMODITY CUSTOMER CLAIM FOR PURPOSES OF
SUBCHAPTER IV OF CHAPTER 7 OF THE BANKRUPTCY CODE AND
REGULATIONS THEREUNDER. YOU MAY BE A GENERAL CREDITOR AND YOUR
CLAIM MAY BE PAID, ALONG WITH THE CLAIMS OF OTHER GENERAL
CREDITORS, FROM ANY MONIES STILL AVAILABLE AFTER PRIORITY CLAIMS
ARE PAID. EVEN FUNDS THAT THE COUNTERPARTY KEEPS SEPARATE FROM
ITS OWN FUNDS MAY NOT BE SAFE FROM THE CLAIMS OF PRIORITY AND OTHER
GENERAL CREDITORS.

FURTHER, YOU SHOULD CAREFULLY REVIEW THE INFORMATION CONTAINED IN
THE RISK DISCLOSURE STATEMENT OF THE FUTURES COMMISSION MERCHANT
OR RETAIL FOREIGN EXCHANGE DEALER THAT YOU SELECT TO CARRY YOUR
ACCOUNT.

SWAPS TRANSACTIONS,

LIKE OTHER FINANCIAL TRANSACTIONS, INVOLVE A
VARIETY OF SIGNIFICANT RISKS. THE SPECIFIC RISKS PRESENTED BY A
PARTICULAR SWAP TRANSACTION NECESSARILY DEPEND UPON THE TERMS
OF THE TRANSACTION AND YOUR CIRCUMSTANCES. IN GENERAL, HOWEVER,
ALL SWAPS TRANSACTIONS INVOLVE SOME COMBINATION OF MARKET RISK,
CREDIT RISK, FUNDING RISK, AND OPERATIONAL RISK.
HIGHLY CUSTOMIZED SWAPS TRANSACTIONS IN PARTICULAR MAY INCREASE
LIQUIDITY RISK, WHICH MAY RESULT IN YOUR ABILITY TO WITHDRAW YOUR
FUNDS BEING LIMITED. HIGHLY LEVERAGED TRANSACTIONS MAY EXPERIENCE
SUBSTANTIAL GAINS OR LOSSES IN VALUE AS A RESULT OF RELATIVELY
SMALL CHANGES

IN THE VALUE OR LEVEL OF AN UNDERLYING OR RELATED
MARKET FACTOR.IN EVALUATING THE RISKS AND CONTRACTUAL OBLIGATIONS ASSOCIATED
WITH A PARTICULAR SWAP TRANSACTION, IT IS IMPORTANT TO CONSIDER
THAT A SWAP TRANSACTION MAY BE MODIFIED OR TERMINATED ONLY BY
MUTUAL CONSENT OF THE ORIGINAL PARTIES AND SUBJECT TO AGREEMENT
ON INDIVIDUALLY NEGOTIATED TERMS. THEREFORE, IT MAY NOT BE POSSIBLE
TO MODIFY, TERMINATE, OR OFFSET YOUR OBLIGATIONS OR YOUR EXPOSURE
TO THE RISKS ASSOCIATED WITH A TRANSACTION PRIOR TO ITS SCHEDULED
TERMINATION DATE.

THIS COMMODITY TRADING ADVISOR IS PROHIBITED BY LAW FROM ACCEPTING
FUNDS IN THE TRADING ADVISOR’S NAME FROM A CLIENT FOR TRADING
COMMODITY INTERESTS. YOU MUST PLACE ALL FUNDS FOR TRADING IN THIS
TRADING PROGRAM DIRECTLY WITH A FUTURES COMMISSION MERCHANT OR
RETAIL FOREIGN EXCHANGE DEALER, AS APPLICABLE.