RISK DISCLOSURE STATEMENT

YOU SHOULD BE AWARE OF AND CAREFULLY CONSIDER THE FOLLOWING POINTS BEFORE DETERMINING WHETHER SUCH TRADING IS APPROPRIATE FOR YOU.

YOUR USE OF THE PIPHUT.COM, LLC (“PIPHUT”) WEBSITE AND ITS ENTIRE CONTENTS, INCLUDING BUT NOT LIMITED TO,  CHAT ROOMS, DISCUSSION AREAS, THE PRO ACCESS AREA, CONTENT, ARTICLES, ANALYSIS, COMMENTARY, NEWS, ANALYSIS TOOLS, RESEARCH TOOLS, CHARTING TOOLS, CANDLEPRO, EMAILS, NOTIFICATIONS,  TEXT, DATA, INFORMATION, MATERIALS, SOFTWARE, AND GRAPHICS CONTAINED OR PROVIDED THROUGH IT IN ANY FORM OR MEDIA AND ALL SERVICES THAT MAY BE PROVIDED IN CONJUNCTION WITH IT (ALL SUCH INFORMATION AND SERVICES, COLLECTIVELY, THE “WEBSITE”) IS SUBJECT TO THE TERMS AND CONDITIONS OF RISK DISCLOSURE STATEMENT (“RISK DISCLOSURE STATEMENT”). BY USING THE WEBSITE, REGISTERING AS A SUBSCRIBER WITH PIPHUT, EITHER HAVING FREE OR PRO ACCESS TO THE WEBSITE OR ACCEPTING ANY RELATED SERVICES FROM PIPHUT, YOU AGREE THAT YOU (1) HAVE READ AND UNDERSTAND THIS RISK DISCLOSURE STATEMENT; AND (2) ARE BOUND BY THIS RISK DISCLOSURE STATEMENT.

In consideration of Piphut agreeing to allow you to use the Website, you acknowledge, understand and agree to the following:

1.            TRADING IS VERY SPECULATIVE AND IS RISKY. Foreign currency exchange trading is highly speculative and is suitable only for those users who (a) understand and are willing to assume the economic, legal and other risks involved, and (b) are financially able to assume losses significantly in excess of margin or deposits.  Foreign currency exchange is not an appropriate investment for retirement funds. You represent, warrant and agree that you understand these risks; that you are willing and able, financially and otherwise, to assume the risks of foreign currency exchange trading and that loss of your entire account balance will not change your life style.  Before deciding to trade foreign currency exchange contracts, you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign currency exchange trading, and seek advice from an independent financial advisor if you have any doubts.

2.            HIGH LEVERAGE AND LOW MARGIN CAN LEAD TO QUICK LOSSES. The high leverage and low margin associated with foreign currency exchange trading can result in significant losses due to price changes in foreign currency exchange contracts and cross currency contracts.  It is your responsibility to monitor your own account balance as none of the products or services Piphut offers do so, or intend to do so. Increasing leverage and margin increases risk to you.

3.            TRADING ANALYSIS INFORMATIONAL ONLY. Piphut is not, and does not intend to register as, an investment adviser as defined in the Investment Advisers Act of 1940.  Piphut is therefore not an adviser or fiduciary to you or any other user of the Website.  Any analysis provided by Piphut do not constitute an offer to buy or sell, or the solicitation of an offer to buy or sell, any foreign currency exchange contract or cross currency contract. Each and every decision to enter into a contract or other transaction and each decision whether a contract or other transaction is appropriate or proper for you is an independent decision made by you. You agree that Piphut has no fiduciary duty to you and no liability in connection with and is not responsible for any liabilities, claims, damages, costs and expenses, including attorneys’ fees, incurred in connection with you following Piphut’s trading analysis or taking or not taking any action based upon any analysis or information provided by Piphut.

4.           ANALYSIS IS BASED ON PERSONAL JUDGMENTS AND IS NOT GUARANTEED. The market analysis provided by Piphut is based solely on the personal judgment of Piphut’s personnel. This analysis may or may not be consistent with the market positions or intentions of Piphut, its affiliates and employees. The analysis provided by Piphut is based upon information believed to be reliable, but Piphut cannot and does not guarantee the accuracy or completeness thereof or represent that following such recommendations will reduce or eliminate the risk inherent in foreign currency exchange trading.

5.            PAST PERFORMANCE NOT INDICATIVE OF FUTURE RESULTS. All contents or information displayed on or contained in the Website related in any way to trading or analysis, including without trading performance, analysis, discussion, commentary, or trading results, are hypothetical and based on a number of assumptions which may not be fully disclosed or explained.  PAST PERFORMANCE CANNOT GUARANTEE OR INDICATE FUTURE RESULTS. The past performance of any investment or trading strategy cannot guarantee the performance or effectiveness of such strategy in the future.  Users of the Website must exercise independent judgment when making investment or trading decisions and expressly assume all of the risk of any losses.

6.            THERE IS NO CENTRAL MARKET OR CLEARINGHOUSE TO GUARANTEE PAYMENT. Foreign currency exchange trading is not conducted on a regulated market or exchange. Each contract is a contract directly you and a third party. There is no clearinghouse and no guarantee by any other party of any payment obligation to you.

7.            NO GUARANTEES OF PROFIT. There are no guarantees of profit or freedom from loss in foreign currency exchange trading. You have received no such guarantees from Piphut or from any of its agents, employees or affiliates. You are aware of the risks inherent in foreign currency exchange trading and are financially able to bear such risks and withstand any losses incurred.

8.            TECHNOLOGY RISK. Since Piphut does not control signal power, its reception or routing via Internet, configuration of your equipment or reliability of its connection, Piphut shall not be liable for any claims, losses, damages, costs or expenses, including attorneys’ fees, caused, directly or indirectly, by any breakdown or failure of any transmission or communication system or computer facility or trading software, whether belonging to Piphut, you, any market, or any settlement or clearing system when you trades online (via Internet).

9.            QUOTING ERRORS. Should a quoting error occur due to a mistype of a quote or a misquote given by electronic means (including responses to your requests), Piphut is not liable for any resulting errors and reserves the right, in its sole discretion, to make necessary corrections or adjustments. Any dispute arising from such quoting errors will be resolved on the basis of the fair market value, as determined by Piphut, in its sole discretion, of the relevant currency at the time such an error occurred.

10.         CREDITOR PRIORITY IN BANKRUPTCY. The transactions you are entering into with third parties are not traded on an exchange. Therefore, under the U.S. Bankruptcy Code, your funds may not receive the same protections as funds used to margin or guarantee exchange-traded futures and options contracts, which receive a priority in bankruptcy. Since that same priority has not been given to funds used for off-exchange foreign currency exchange trading, if your trading partner becomes insolvent and you have a claim for amounts deposited or profits earned on transactions with such trading partner, your claim may not receive a priority. Without a priority, you are a general creditor and your claim will be paid, along with the claims of other general creditors, from any monies still available after priority claims are paid.

11.         CONFLICTS OF INTEREST. PIPHUT’S INTERESTS MAY BE IN CONFLICT WITH YOURS.  SINCE PIPHUT MAY NOT BE ACTING AS A BUYER OR SELLER IN ANY TRANSACTION YOU ARE EVALUATING, YOU SHOULD CAREFULLY EVALUATE ANY ANALYSIS YOU RECEIVE FROM PIPHUT.

12.        USE OF LEVERAGE. 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 CURRENCY EXCHANGEDEALER AS YOUR COUNTERPARTY.  BECAUSE OF THE LEVERAGE AND THE 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.

13.         TRADING IS NOT ON A REGULATED MARKET OR EXCHANGE. YOUR DEALER IS YOUR TRADING PARTNER WHICH IS A DIRECT CONFLICT OF INTEREST.  BEFORE YOU ENGAGE IN ANY RETAIL FOREIGN CURRENCY EXCHANGE TRADING, YOU SHOULD CONFIRM THE REGISTRATION STATUS OF YOUR COUNTERPARTY. The off-exchange foreign currency trading you may enter into is not conducted on an interbank market, nor is it conducted on a futures exchange subject to regulation as a designated contract market by the Commodity Futures Trading Commission (“CFTC”). The foreign currency trades you transact are trades with the futures commission merchant or retail foreign currency exchange dealer as your counterparty. 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 is making money on such trades, in addition to any fees, commissions, or spreads the dealer may charge.

AN ELECTRONIC TRADING PLATFORM FOR RETAIL FOREIGN CURRENCY TRANSACTIONS IS NOT AN EXCHANGE. IT IS AN ELECTRONIC CONNECTION FOR ACCESSING YOUR DEALER. THE TERMS OF AVAILABILITY OF SUCH A PLATFORM ARE GOVERNED ONLY BY YOUR CONTRACT WITH YOUR DEALER.

Any trading platform that you may use to enter off-exchange foreign currency transactions is only connected to your futures commission merchant or retail foreign currency exchange dealer. You are accessing that trading platform only to transact with your dealer. You are not trading with any other entities or users of the dealer by accessing such platform. The availability and operation of any such platform, including the consequences of the unavailability of the trading platform for any reason, is governed only by the terms of your account agreement with the dealer.

14.         YOUR DEPOSITS HAVE NO REGULATORY PROTECTIONS. All of your rights associated with your retail foreign currency exchange trading, including the manner and denomination of any payments made to you, are governed by the contract terms established in your account agreement with the futures commission merchant or retail foreign currency exchange dealer. Funds deposited by you with a futures commission merchant or retail foreign currency exchange dealer for trading off-exchange foreign currency transactions are not subject to the funds protections provided to users trading on a contract market that is designated by the CFTC. Your dealer may commingle your funds with its own operating funds or use them for other purposes.  In the event your dealer becomes bankrupt, any funds the dealer is holding for you in addition to any amounts owed to you resulting from trading, whether or not any assets are maintained in separate deposit accounts by the dealer, may be treated as an unsecured creditor’s claim.

YOU ARE LIMITED TO YOUR DEALER TO OFFSET OR LIQUIDATE ANY TRADING POSITIONS SINCE THE TRANSACTIONS ARE NOT MADE ON AN EXCHANGE OR MARKET, AND YOUR DEALER MAY SET ITS OWN PRICES.

Your ability to close your transactions or offset positions is limited to what your dealer will offer to you, as there is no other market for these transactions. Your dealer may offer any prices it wishes, and it may offer prices derived from outside sources or not in its discretion. Your dealer may establish its prices by offering spreads from third party prices, but it is under no obligation to do so or to continue to do so. Your dealer may offer different prices to different users at any point in time on its own terms. The terms of your account agreement alone govern the obligations your dealer has to you to offer prices and offer offset or liquidating transactions in your account and make any payments to you. The prices offered by your dealer may or may not reflect prices available elsewhere at any exchange, interbank, or other market for foreign currency.

15.         PAID SOLICITORS MAY HAVE UNDISCLOSED CONFLICTS. The futures commission merchant or retail foreign currency exchange dealer may compensate introducing brokers for introducing your account in ways which are not disclosed to you. Such paid solicitors are not required to have, and may not have, any special expertise in trading, and may have conflicts of interest based on the method by which they are compensated. Solicitors working on behalf of futures commission merchants and retail foreign currency exchange dealers are required to register. You should confirm that they are, in fact registered. You should thoroughly investigate the manner in which all such solicitors are compensated and be very cautious in granting any person or entity authority to trade on your behalf. You should always consider obtaining dated written confirmation of any information you are relying on from your dealer or a solicitor in making any trading or account decisions.

THIS BRIEF STATEMENT CANNOT, OF COURSE, DISCLOSE ALL THE RISKS AND OTHER ASPECTS OF TRADING FOREIGN CURRENCY TRANSACTIONS. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.

BY USING THE WEBSITE IN ANY WAY, YOU HEREBY ACKNOWLEDGE THAT YOU HAVE RECEIVED, READ, UNDERSTOOD AND AGREE TO BE BOUND BY THIS RISK DISCLOSURE STATEMENT.