Unless the context otherwise requires, capitalized terms defined in the Terms and Conditions for General Investment Services (as amended or varied from time to time) Investment Terms shall have the same meaning when used herein.
In relation to the following service(s) under General Investment Services selected by the Customer, the Customer hereby makes the following declarations:

Risk of Securities Trading
(i) In relation to securities generally, the Customer is fully aware of and understands that:
(a) Investment involves risk, and the offering document should be read for further details.
(Where past performance is quoted) The past performance figures shown are not an indication of future performance.
(b) Transactions conducted through the securities account may involve high-risk investment instruments, customers should prudently consider before making any investment decision, the prices of securities fluctuate, sometimes dramatically. The price of a securities may move up or down, and may become valueless. It is as likely that losses will be incurred rather than profit made as a result of buying and selling securities;
(c) There may be risks in leaving securities in the Bank’s safekeeping. For example, if the Bank is holding the Customer’s securities and the Bank becomes insolvent, the Customer may experience significant delay in recovering the securities. These are risks that the Customer is prepared to accept.

Risk of Trading Growth Enterprise Market Stocks
(ii) In relation to securities traded on the Growth Enterprise Market of The Stock Exchange of Hong Kong Limited ("GEM"), the Customer acknowledges and fully understands that:
(a) GEM securities involve a high investment risk. In particular, companies may list on GEM with neither a track record of profitability nor any obligation to forecast future profitability. The Customer appreciates that GEM securities may be very volatile and illiquid;
(b) the Customer should make the decision to invest only after due and careful consideration. The Customer understands the greater risk profile and other characteristics of GEM mean that it is a market more suited to professional and other sophisticated investors;
(c) current information on GEM securities may only be found on the Internet website operated by The Stock Exchange of Hong Kong Limited. GEM companies are usually not required to issue paid announcements in gazetted newspapers. Accordingly, the Customer appreciates that the Customer needs to have access to up-to-date information on GEM companies as published on the GEM website;
(d) the Customer should seek independent professional advice if the Customer is uncertain of or has not understood any aspect of this paragraph (ii) or the nature and risk involved in trading of GEM securities.

Risk of Warrants and Callable Bull/Bear Contracts (CBBCs) traded at The Stock Exchange of Hong Kong Limited
(iii) In relation to Warrants and Callable Bull/Bear Contracts (CBBCs) traded at The Stock Exchange of Hong Kong Limited, the Customer acknowledges and fully understands that:
(a) The price of the warrants and CBBCs may fall in value as rapidly as it may rise and customers may sustain a total loss of their investment. Past performance of the underlying asset is not an indication of future performance. Customers should ensure that they understand the nature of the warrants and CBBCs and carefully study the risk factors set out in the relevant listing documents of the warrants and CBBCs and, where necessary, seek professional advice. Warrants that are not exercised will have no value upon expiry.
(b) Issuer default risk - In the event that a structured product issuer becomes insolvent and defaults on their listed securities, customers will be considered as unsecured creditors and will have no preferential claims to any assets held by the issuer. Customers should therefore pay close attention to the financial strength and credit worthiness of structured product issuers. (Note:“Issuers Credit Rating” showing the credit ratings of individual issuers is now available under the Issuer and Liquidity Provider Information sub-section under Derivative Warrants and under CBBCs section on the HKEx corporate website)
(c) Uncollateralised product risk - Uncollateralised structured products are not asset backed. In the event of issuer bankruptcy, customers can lose their entire investment. Customers should read the listing documents to determine if a product is uncollateralised.
(d) Gearing risk - Structured products such as derivative warrants and callable bull/bear contracts (CBBCs) are leveraged and can change in value rapidly according to the gearing ratio relative to the underlying assets. Customers should be aware that the value of a structured product may fall to zero resulting in a total loss of the initial investment.
(e) Time decay risk – All things being equal, the value of a derivative warrant will decay over time as it approaches its expiry date. Derivative warrants should therefore not be viewed as long term investments.
(f) Volatility risk - Prices of derivative warrants can increase or decrease in line with the implied volatility of underlying asset price. Customers should be aware of the underlying asset volatility.
(g) Expiry considerations - Structured products have an expiry date after which the issue may become worthless. Customers should be aware of the expiry time horizon and choose a product with an appropriate lifespan for their trading strategy.
(h) Extraordinary price movements - The price of a structured product may not match its theoretical price due to outside influences such as market supply and demand factors. As a result, actual traded prices can be higher or lower than the theoretical price.
(i) Foreign exchange risk – Customers trading structured products with underlying assets not denominated in Hong Kong dollars are also exposed to exchange rate risk. Currency rate fluctuations can adversely affect the underlying asset value, also affecting the structured product price.
(j) Liquidity risk - The Exchange requires all structured product issuers to appoint a liquidity provider for each individual issue. The role of liquidity providers is to provide two way quotes to facilitate trading of their products. In the event that a liquidity provider defaults or ceases to fulfill its role, customers may not be able to buy or sell the product until a new liquidity provider has been assigned.
(k) Mandatory call risk – Customers trading CBBCs should be aware of their intraday “knockout” or mandatory call feature. A CBBC will cease trading when the underlying asset value equals the mandatory call price/level as stated in the listing documents. Customers will only be entitled to the residual value of the terminated CBBC as calculated by the product issuer in accordance with the listing documents. Customers should also note that the residual value can be zero.
(l) Funding costs - The issue price of a CBBC includes funding costs. Funding costs are gradually reduced over time as the CBBC moves towards expiry. The longer the duration of the CBBC, the higher the total funding costs. In the event that a CBBC is called, customers will lose the funding costs for the entire lifespan of the CBBC. The formula for calculating the funding costs are stated in the listing documents.

Risk of Exchange-Traded Fund (ETF) traded at The Stock Exchange of Hong Kong Limited
(iv) In relation to Exchange-Traded Fund (ETF) traded at The Stock Exchange of Hong Kong Limited, the Customer acknowledges and fully understands that:
(a) An ETF is meant to track the performance of a specific market or sector. Some ETFs may invest in over-the counter derivatives issued by counterparties. Thus when customers invest in these ETFs, customers will bear both the risks in the securities that make up the index and the credit risk of the issuers of derivative instruments that replicate the performance of those securities. If the derivative counterparty defaults, these ETFs may suffer losses potentially equal to the full value of the derivatives issued by the counterparty. Customers have to understand the investment and index replication strategy of the ETF. Important information is provided in the offering document.
(b) Market Risk – Customers are exposed to the political, economic, currency and other risks related to the synthetic ETF’s underlying index.
(c) Counterparty risk – Where a synthetic ETF invests in derivatives to replicate the index performance, customers are exposed to the credit risk of the counterparties who issued the derivatives, in addition to the risks relating to the index. Further, potential contagion and concentration risks of the derivative issuers should be taken into account (e.g Since the issuers of these derivatives are predominantly international financial institutions if one of the derivative counterparties of an ETF closed down, it is possible that the failure of one derivative counterparty of an ETF has a "knock-on" effect on other derivative counterparties of the ETF..) Some synthetic ETFs have collateral to reduce the counterparty risk, but there may be a risk that the market value of the collateral has fallen substantially when the synthetic ETF seeks to realize the collateral.
(d) Liquidity risk – A higher liquidity risk is involved if a synthetic ETF involves derivatives which do not have an active secondary market. Wider bid-offer spreads in the price of the derivatives may result in the losses.
(e) Tracking error – There may be disparity between the performance of the synthetic ETF and the performance of the underlying index due to , for instance, failure of the tracking strategy, currency differences, fees and expenses.
(f) Trading at a discount or premium – Where the index/market that the synthetic ETF tracks is subject to restricted access, the efficiency in unit creation or redemption to keep the price of the synthetic ETF in line with its net asset value may be disrupted, causing the synthetic ETF to trade at a higher premium or discount to it net asset value. Customers who buy a synthetic ETF at a premium may not be able to recover the premium in the event of termination.
(g) Foreign exchange risk - Customers trading ETFs with underlying assets not denominated in Hong Kong dollars are also exposed to exchange rate risk. Currency rate fluctuations can adversely affect the underlying asset value, also affecting the ETF price.

Risk of Leveraged and Inverse Products (L&I Products) traded at The Stock Exchange of Hong Kong Limited
(v) In relation to Leveraged and Inverse Products (L&I Products) traded at The Stock Exchange of Hong Kong Limited, the Customer acknowledges and fully understands that:
(a) Leveraged and Inverse Products (L&I Products) are derivative products traded on the stock exchange. L&I Products are structured as funds, but unlike conventional funds, they are not intended for holding longer than one day and are designed for short term trading or hedging. Leveraged products aim to deliver a daily return equivalent to a multiple of the underlying index return e.g. two times of what the underlying index does. Inverse products aim to deliver the opposite of the daily return of the underlying index. The inverse product goes down when the underlying index moves upwards, and the inverse product goes up when the underlying index moves downwards. In Hong Kong, the leverage factor of L&I Products is subject to a cap, L&I Products are not intended for holding longer than one day as their return over a longer period may deviate from and may be uncorrelated to the multiple (in the case of leveraged products) or the opposite (in the case of inverse products) of the return of the underlying index over the period. The L&I Products are designed to be used for short term trading or hedging purposes, and are not intended for long term investment. The L&I Products only target sophisticated trading oriented investors who constantly monitor the performance for their holdings on a daily basis.
(b) Investment risk: Trading L&I Products involves investment risk and are not intended for all investors. There is no guarantee of repaying the principal amount.
(c) Volatility risk: Prices of L&I Products may be more volatile than conventional exchange traded funds (ETFs) because of using leverage and the rebalancing activities.
(d) Unlike conventional ETFs: L&I Products are different from conventional ETFs. They do not share the same characteristics and risks as conventional ETFs.
(e) Long-term holding risk: L&I Products are not intended for holding longer than the rebalancing interval, typically one day. Daily rebalancing and the compounding effect will make the L&I Product's performance over a period longer than one day deviate in amount and possibly direction from the leveraged/inverse performance of the underlying index over the same period. The deviation becomes more pronounced in a volatile market. As a result of daily rebalancing, the underlying index's volatility and the effects of compounding of each day's return over time, it is possible that the leveraged product will lose money over time while the underlying index increases or is flat. Likewise, it is possible that the inverse product will lose money over time while the underlying index decreases or is flat.
(f) Risk of rebalancing activities: There is no assurance that L&I Products can rebalance their portfolios on a daily basis to achieve their investment objectives. Market disruption, regulatory restrictions or extreme market volatility may adversely affect the rebalancing activities.
(g) Liquidity risk: Rebalancing typically takes place near the end of a trading day (shortly before the close of the underlying market) to minimise tracking difference. The short interval of rebalancing may expose L&I Products more to market volatility and higher liquidity risk.
(h) Intraday investment risk: Leverage factor of L&I Products may change during a trading day when the market moves but it will not be rebalanced until day end. The L&I Product's return during a trading day may be greater or less than the leveraged/opposite return of the underlying index.
(i) Portfolio turnover risk: Daily rebalancing causes a higher levels of portfolio transaction when compared to conventional ETFs, and thus increases brokerage and other transaction costs.

(j) Correlation risk: Fees, expenses, transactions cost as well as costs of using financial derivatives may reduce the correlation between the performance of the L&I Product and the leveraged/inverse performance of the underlying index on a daily basis.
(k) Termination risk: L&I Products must be terminated when all the market makers resign. Termination of the L&I Product should take place at about the same time when the resignation of the last market maker becomes effective.
(l) Leverage risk (for leveraged products only): The use of leverage will magnify both gains and losses of leveraged products resulting from changes in the underlying index or, where the underlying index is denominated in a currency other than the leveraged product's base currency, from fluctuations in exchange rates.
(m) Unconventional return pattern (for inverse products only): Inverse products aim to deliver the opposite of the daily return of the underlying index. If the value of the underlying index increases for extended periods, or where the exchange rate of the underlying index denominated in a currency other than the inverse product's base currency rises for an extended period, inverse products can lose most or all of their value.
(n) Inverse products vs short selling (for inverse products only): Investing in inverse products is different from taking a short position. Because of rebalancing, the performance of inverse products may deviate from a short position in particular in a volatile market with frequent directional swings.
(o) Credit and default risks (for swap-based L&I Products): The L&I Product pays the swap counterparties a fee, and the swap counterparties deliver to the L&I Product a multiple or the opposite of the return of the underlying index on a daily basis. Investing in swap-based L&I Products are exposed to counterparty risk and default risk of the swap counterparty and may suffer significant losses if a swap counterparty fails to perform its obligations.
(p) Futures contract risks (for futures-based L&I Products): Investing in futures-based L&I Products involve specific risks such as high volatility, leverage, rollover and margin risks, and are exposed to the risk that the performance of the futures contracts may deviate from the L&I Products’ investment objective.

Risk of Trading Nasdaq-Amex Securities at The Stock Exchange of Hong Kong Limited
(vi) In relation to Nasdaq-Amex Securities traded at The Stock Exchange of Hong Kong Limited, the Customer acknowledges and fully understands that the securities under the Nasdaq-Amex Pilot Program ("PP") are aimed at sophisticated investors and the Customer should consult the Bank and become familiarised with the PP before trading in the PP securities. The Customer appreciates that the PP securities are not regulated as a primary or secondary listing on the Main Board or the GEM of The Stock Exchange of Hong Kong Limited.

Risk of Securities Deposited with the Bank
(vii) The Customer acknowledges that, by virtue of the Investment Terms, the Customer has given the Bank the Customer's written authority to sell or otherwise dispose of the Customer's securities deposited with the Bank (whether for safe custody or as collateral) for all or any of the purposes permitted by applicable laws and regulations including rules made by relevant regulatory authorities.

Risk of Providing an Authority to Repledge the Customer’s Securities Collateral etc.
(viii) The Customer is fully aware of and understands that
(a) There is risk if the Customer provides the Bank with an authority that allows the Bank to apply the Customer’s securities or securities collateral pursuant to a securities borrowing and lending agreement, repledge the Customer’s securities collateral for financial accommodation or deposit the Customer’s securities collateral as collateral for the discharge and satisfaction of the Bank’s settlement obligations and liabilities.
(b) If the Customer’s securities or securities collateral are received or held by the Bank in Hong Kong, the above arrangement is allowed only if the Customer consents in writing. Moreover, unless the Customer is a professional investor, the Customer’s authority must specify the period for which it is current and be limited to not more than 12 months. If the Customer is a professional investor, these restrictions do not apply.
(c) Additionally, the Customer’s authority may be deemed to be renewed (i.e. without the Customer’s written consent) if the Bank issues to the Customer a reminder at least 14 days prior to the expiry of the authority, and the Customer does not object to such deemed renewal before the expiry date of the then existing authority.
(d) The Customer is not required by any law to sign such authority. But an authority may be required by the Bank, for example, to facilitate margin lending to the Customer to allow the Customer’s securities or securities collateral to be lent to or deposited as collateral with third parties. The Bank would explain to the Customer the purposes for which such authority is to be used.
(e) If the Customer signs such authority and the Customer's securities or securities collateral are lent to or deposited with third parties, those third parties will have a lien or charge on the Customer’s securities or securities collateral. Although the Bank is responsible to the Customer for securities or securities collateral lent or deposited under the Customer’s authority, a default by the Bank could result in the loss of the Customer’s securities or securities collateral.
(f) The Customer understands that a cash account not involving securities borrowing and lending is available from most licensed or registered persons (including the Bank). If the Customer does not require margin facilities or does not wish its securities or securities collateral to be lent or pledged, the Customer should not give such authority and should ask to open this type of cash account.

Risk of China Connect Securities Trading Services
(ix) In relation to China Connect Securities Trading Services, the Customer acknowledges and fully understands that:
(a) The Customer's investment in China Connect securities may be affected by PRC and Hong Kong laws and regulations, and the rules of the PRC and Hong Kong stock exchanges, clearing houses and regulators.
(b) The trading of China Connect securities is subject to restrictions which may be changed from time to time without notice including trading days, pre-trade checking, China Connect Securities for sale only, maximum cross-boundary investment quota, daily quota (if the aggregate quota balance for Northbound trading is less than the daily quota, Northbound buy orders will be suspended on the next trading day until the aggregate quota balance returns to the daily balance level. If the daily quota is used up, unless otherwise determined, buy orders will not be accepted. Unless otherwise determined, sell orders will continue to be accepted). Northbound trading will only be available on the days when both the Hong Kong and the relevant China markets are open for trading and clearing, and banking services are available in both markets. When placing sell orders, the Customer must ensure that sufficient shares are kept in its securities account with the Bank. If the shares are kept outside such securities account, the Customer must transfer the shares to such securities account before the market opens on the selling day (T day); otherwise the Customer may not sell the shares on T day.
(c) The Customer's China Connect securities may be subject to forced-sale arrangements as required by the stock exchange or clearing house. There is no guarantee that any China Connect securities may be bought or sold at all or at any time.
(d) The Customer's instructions to trade in China Connect securities may not be accepted, the Customer may be liable to regulatory investigations, the Customer’s information may have to be disclosed and the Customer will have to assume the legal consequences if it is in breach of or fails to comply with the rules of the relevant PRC stock exchange and applicable laws and regulations.
(e) Settlement of Northbound trades (i.e., trades in securities on a PRC stock exchange) will be in RMB only, which is currently not freely convertible at present and is subject to the regulations of the government of the PRC. The fluctuation of the exchange rate of RMB against HKD or the Customer's local currency will affect the value of the Customer's investment even if the price of the RMB investment remains unchanged.
(f) Northbound trading is not subject to the protection of the Investor Compensation Fund of Hong Kong (similar to the situation where investors trade in other foreign stocks through Hong Kong brokers) or the China Securities Investor Protection Fund and the rationale behind.

(g) The Bank's obligations will be limited to accounting to the Customer for its share of any securities or payment in any currency actually credited to its broker's account with the Hong Kong clearing house. If the PRC clearing house defaults, the Hong Kong clearing house's liabilities will be limited to assisting in seeking recovery of the outstanding stocks and monies from the PRC clearing house through available legal channels and the PRC clearing house's liquidation process, if applicable.
(h) The Customer will bear all taxes, fees, charges and levies payable in RMB and in HKD, in the PRC and in Hong Kong, including PRC stamp duty, income tax and/or withholding tax. (i) The Customer's information may be disclosed to the relevant brokers, agents, exchanges, clearing houses, regulators and tax or other authorities in the PRC and in Hong Kong.

Risk of Trading in Leveraged Precious Metals And Foreign Exchange Contracts
(x) In relation to precious metals and foreign exchange margin trading, the Customer is fully aware of and understands that the risk of loss in leveraged precious metals and foreign exchange trading is substantial. The Customer may sustain losses in excess of the Customer's initial margin funds. Placing contingent orders, such as "stop-loss" or "stop-limit" orders, will not necessarily limit losses to the intended amounts. Market conditions may make it impossible to execute such orders. The Customer may be called upon at short notice to deposit additional margin funds. If the required funds are not provided within the prescribed time, the Customer’s position may be liquidated. The Customer shall remain liable for any resulting deficit in the Customer's account. The Customer confirms the Customer's understanding that the Bank’s demand for additional deposit is not a precondition or in any way limiting the Bank’s right to liquidate the Customer’s open positions in circumstances set out in the Investment Terms. The Customer has carefully considered whether such trading is suitable in light of the Customer's own financial position and investment objectives.

Risk of Investments Generally
(xi) In relation to investments generally, the Customer is fully aware of and understands that the Customer must read the constitutive document, prospectus, explanatory memorandum and offering document of the relevant investments for details before investing in them.

Risk of Investment Funds
(xii) In relation to investment funds, the Customer is fully aware of and understands that the price of units or shares in investment funds and the income from them (if applicable) may move up or down. Investment in investment funds involves risk.

Risk of Non-Exchange Traded Equity Linked Structured Product
(xiii) This following are the risks involved in investing in non-exchange traded equity-linked structured products (“Equity-Linked Structured Products”), including but not limited to Equity-Linked Investment, Equity-Linked Notes and Equity-Linked Investment Products.
Equity-Linked Structured Products are not suitable for everyone, especially those inexperienced investors, the Customer should consider if the Customer can afford the risks involved and is conversant in investing in the stock market in which the underlying stocks are traded.
The Customer should carefully consider:

The Customer should be aware that Equity-Linked Structured Products may have various product features which may result in different risk levels. The Customer is advised to exercise caution in relation to any offer. If the Customer is in doubt about any of the contents of this document, and/or any document in relation to the transaction of the Equity-Linked Structured Products, the Customer should obtain independent professional advice. The Customer should read the relevant offering document and understand how the Equity-Linked Structured Products, work and the risks involved before purchasing, subscribing or entering into any Equity-Linked Structured Products.
Investment in Equity-Linked Structured Products may involve substantial risks and is suitable only for investors who have the knowledge and experience in financial and business matters necessary for them to evaluate the risks and merits of an investment in Equity-Linked Structured Products. Before investing in Equity-Linked Structured Products, the Customer should consider carefully, in light of his own financial circumstances, including but not limited to investment experience, investment horizon, risk tolerance and investment objectives, all of the information set out in the documents in relation to the transaction and in particular the product risks set out below. If the Customer has any concerns or doubts regarding this document or the Equity-Linked Structured Products, he should consult his professional financial advisor.

The following product risks are not a comprehensive list of all considerations relevant to decision to invest in Equity-Linked Structured Products.
(a) Not a normal time deposit - Equity-Linked Structured Products are different from normal time deposit and thus should not be considered as normal time deposit or its alternative.
(b) Not protected deposit - Equity-Linked Structured Products are not protected deposits and are not protected by the Deposit Protection Scheme in Hong Kong. The repayments of Equity-Linked Structured Products are not guaranteed by the Hong Kong SAR Government’s Exchange Fund.

(c) Principal loss risk
(1) For non-principal protected equity-linked structured products
For non-principal protected Equity-Linked Structured Products, there is no guarantee on the repayment of principal amount at maturity. Upon the maturity of non-principal protected Equity-Linked Structured Products, the Customer may receive, in place of the principal amount, the underlying stock(s) of the Equity-Linked Structured Products, the market value of which may be significantly lower than the Customer’s original investment amount, or an amount in cash which is substantially less than the Customer’s original investment amount (for Equity-Linked Structured Products with cash settlement or Equity-Linked Structured Products linked to index(ices)). Fluctuations in the stock prices or index levels can be substantial and investors must be willing to receive the relevant quantity of the underlying stock or an underlying stock in the stock basket or take a substantial loss in the principal amount (as the case may be).
(2) For principal protected equity-linked structured products For principal protected Equity-Linked Structured Products, it offers principal protection only if the Equity-Linked Structured Product is held to maturity. If the Equity-Linked Structured Product is terminated by the Customer before maturity, the Customer may suffer loss in investment amount.
(d) Market risk - The value of the Equity-Linked Structured Product will increase or decrease according to the performance / movement of the underlying stock(s) / index(ices). Changes in the price or value of the underlying stock(s) / index(ices) can be unpredictable, sudden and substantial. Such changes may negatively impact the return on and/or payoff at maturity of the Equity-Linked Structured Products. In the worst scenario, investors will lose all their investment amount in the Equity-Linked Structured Product. Investors should also note that the value of investments can go down as well as up and past performance is not necessarily indicative of future performance.
(e) Risk associated with returns - Unless otherwise specified in the product documents, the Customer is not guaranteed to make a profit from investing in Equity- Linked Structured Products. The return payable on Equity-Linked Structured Products may not be fixed and may depend on the performance of the underlying stock(s)/ index(ices). Such returns (if any) may go up or down or may only be payable upon satisfying the conditions specified in the relevant product documents. If the price movement of the underlying stock(s) / index(ices) is against the Customer's view, no return may be payable on the Equity-Linked Structured Products. The upside gain of Equity-Linked Structured Products may be capped. Factors affecting the performance of equity markets are numerous, including but are not limited to changes in global and local investment sentiments, interest rate policies, fund flows, political environment, economic environment, business and social condition in the local marketplace.
(f) Credit risk of the issuer or counterparty - Investing in Equity-Linked Structured Products is exposed to the credit risk of the issuer of the product or the Customer's counterparty (which may be the Bank if the Bank is the issuer of the product or the counterparty of the Customer). There is no assurance of protection against a default by the issuer of the product or the Customer's counterparty in respect of its payment or repayment obligations. There is a risk that any failure by the issuer of the product or the Customer's counterparty to perform its obligations when due may result in the loss of all or part of the Customer's investment.
(g) Risk of early termination or unwinding - The Customer should be prepared to hold the Equity-Linked Structured Products for the whole tenor and cannot early terminate, unwind or transfer the Equity-Linked Structured Product without the product issuer's or the counterparty's prior consent. If the product issuer or the Customer's counterparty decides to allow the Customer to early terminate or unwind an Equity-Linked Structured Product, the product issuer or the Customer’s counterparty may suffer break costs and the Customer must compensate the product issuer or the Customer's counterparty for the break costs which it suffers. Those break costs will be determined by the product issuer or the Customer's counterparty and may be significant.
(h) Event adjustments - The Customer should note that the issuer of the Equity-Linked Structured Products or the Customer's counterparty may make adjustments to the terms of the Equity-Linked Structured Products if any event which affects an underlying stock / index requires it. This include but not limited to any event which has or may have a concentrating or diluting effect on the theoretical value of an underlying stock / index, index adjustment events, extraordinary events (including but not limited to merger event, stock suspension, tender offer, nationalization, insolvency, delisting, hedging disruption, change in law, insolvency filing etc.), ETF adjustment events. If any of such event occurs, the issuer of the Equity-Linked Structured Products or the Customer’s counterparty may make any adjustment as it deems appropriate to the terms of the Equity-Linked Structured Products to account for such event and determine the date from which any such adjustment shall take effect. Adjustment may include adjustment to the relevant prices and levels, share / index substitution and / or termination of the Equity-Linked Structured Products.
(i) Concentration risk - The Customer should avoid excessive investment (in terms of its proportion of the overall portfolio) in any single type of investment, so as to avoid the investment portfolio being over-exposed to any particular investment risk.
(j) Exchange rate risk - The Customer should be aware of the risks associated with foreign exchange: if the transaction currency of the Equity-Linked Structured Products is not the Customer’s home currency, and the Customer chooses to convert it back to the Customer’s home currency or if the Equity-Linked Structured Product is denominated in a different currency to the underlying stock(s) / index(ices), the Customer may make a gain or loss due to exchange rate fluctuations.
(k) Not exchange traded product and not covered by investor compensation fund in Hong Kong - The Equity-Linked Structured Products are not traded on any markets operated by Hong Kong Exchanges and Clearing Limited or any other stock exchanges. As the Equity-Linked Structured Products are not exchange-traded products in the Hong Kong, the Customer is not covered by the Investor Compensation Fund in Hong Kong if the Customer’s intermediary defaults.
(l) Commitment to purchase upon application - The Customer should ensure that it understands the nature of and the risk factors associated with the Equity-Linked Structured Products, and carefully study the matters set out in the documents in relation to the Equity-Lined Structured Products and their offers. The Customer is warned that in giving application, purchase or subscription instructions, the Customer will be deemed to have agreed to pay in full the purchase price or investment amount of the Equity-Linked Structured Products.
(m) No rights in the underlying stock(s) - Owning the Equity-Linked Structured Products are not the same as owning the underlying stock. Accordingly, the market value of the Equity-Linked Structured Products may not have a direct linear relationship with the prevailing stock prices of the underlying stock(s). As a holder of the Equity-Linked Structured Products, the Customer will not have any voting rights, rights to receive dividends or any other rights that holders of the underlying stock(s) would have.
(n) (Applicable to Basket equity-linked products) The potential payout under Basket equity-linked product is linked to the performance of the worst performing asset in the basket on each scheduled trading day (determined by issuer based on the closing price of each reference asset in the basket on such day). The worst performing asset on each scheduled trading day can be different. It will not matter how well the other reference assets in the basket perform: the potential payout on Basket equity-linked product is always determined by the reference asset which performs worst out of all the reference assets in the basket.

Risk of Electronic Trading Service
(xiv) In relation to electronic trading service, the Customer acknowledges that the Internet or other electronic or telecommunications media are, due to unpredictable traffic congestion and other reasons, inherently unreliable media of communication and that transactions conducted over the Internet or via other electronic or telecommunications media are subject to
(a) possible failure or delays in the transmission and receipt of instructions for any or all transactions or other information, and
(b) possible failure or delays of execution or execution at prices different from those prevailing at the time when the Customer’s instructions were given.
The Customer acknowledges that there are risks associated with the system, including the failure of hardware and/or software, and that the result of any such system failure may be that the Customer’s instruction for any or all transactions is not executed. The Customer acknowledges that there are risks of transmission interruption, distortion, omission or blackout, interception of instructions for any or all transactions as well as of misunderstanding or errors in any communication. The Customer acknowledges that it is not usually possible to cancel an instruction for any or all transactions after it has been given. The Customer accepts all the above risks and all other risks associated with conducting transactions over the Internet or via other electronic or telecommunications media.

Risk of Automated IVR Telephone Securities Trading Service and Stock Quote Service
(xv) The Bank, HKEX Information Services Limited, its holding companies and any subsidiaries of such holding companies endeavour to ensure the accuracy and reliability of the information provided but do not guarantee its accuracy or reliability and accept no liability (whether in tort or contract or otherwise) for loss or damage arising from any inaccuracies or omissions.

Risk of Not Receiving Trade Execution Notification
(xvi) If the Customer disagrees to receive trade execution notification, the Customer may not be able to detect hacker attack or unauthorized transaction in Internet Banking account, hence no immediate and necessary action is taken and loss in asset is resulted.

Risk of Providing an Authority to Hold Mail or Direct Mail to Third Parties
(xvii) (Applicable if the Customer has provided the Bank with an authority to hold mail or to direct mail to third parties) In relation to risk of providing an authority to hold mail or to direct mail to third parties, the Customer acknowledges and fully understands that it is important for the Customer to promptly collect in person all contract notes and statements of the Customer's account and review them in detail to ensure that any anomalies or mistakes can be detected in a timely fashion.

Risk of Client Assets Received or Held Outside Hong Kong
(xviii) The Customer is fully aware of and understands that client assets received or held by the Bank outside Hong Kong are subject to the applicable laws and regulations of the relevant overseas jurisdiction which may be different from the Securities and Futures Ordinance and the rules made thereunder. Consequently, such client assets may not enjoy the same protection as that conferred on client assets received or held in Hong Kong.

General Risk
(xviv) The Customer acknowledges that this Risk Disclosure Statement does not purport to disclose all the risks involved in connection with all the transactions contemplated by this Agreement. The Customer understands that the Customer should seek independent professional advice and undertake own research and study before entering into any such transaction as the Customer considers appropriate