FOREX RISK DISCLOSURE:

Before deciding to participate in Forex trading, you should carefully consider your investment objectives, level of experience and risk appetite. There is a significant learning curve to trading successfully in Forex. Most importantly, do not invest money you cannot afford to lose. Forex investing is not ideally suited for investment of retirement (IRA) accounts.

There is considerable exposure to risk in any foreign exchange transaction. The market remains open 24 hours a day for 5 ½ days. This means that unexpected events may affect your investment while you are resting. Any transaction involving currencies involves risks including, but not limited to, the potential for changing political and/or economic conditions that may substantially affect the price, spread, or liquidity of a currency.  The most enticing aspect of trading currencies is the high degree of leverage used. Leverage seems very attractive to those who are expecting to turn small amounts of money into large amounts in a short period of time. However, a high leverage refers to the speed at which an account gains or loses money. One cannot hope to make extraordinary gains without taking extraordinary risks. Leverage should be gradually

increased, as trading performance improves.  There also additional risks that affect your Forex investments, such as, but not limited to: losing internet connectivity for various reasons (your machine, your ISP provider, IBFX servers, IBFX ISP provider), computer or server malfunction, software upgrade disruptions, and inappropriate usage of trading tools.  As a result, prudent investors should be prepared for unexpected contingencies by implementing appropriate procedures such as having: multiple computers setup for trading, multiple ISP providers, Interbank FX’s phone number on speed dial to assist with trades, and print outs of account number and open tickets. In addition, investors should always gradually upgrade their operations by starting with a demo testing period, followed by setting up a mini account, and upgrading to a live account if all tests are working to plan.

SAFETY OF FUNDS DISCLOSURE:

In light of an increase in concern over the security of funds in the Forex Industry, Interbank FX believes it is appropriate to explain its policy on this regard. Interbank FX is a member of the National Futures Association (NFA) in good standing and undergoes regular audits by the NFA, the CFTC (Commodity Futures Trading Commission) and independent auditing firms. Furthermore, Interbank FX provides a valuable service granting clients direct access to the interbank market without taking on currency risks in the process. We do not hold our customers trades or trade against our customers. In addition to this practice, operational funds are kept completely separate from clients funds. When you send you funds to be traded, you send them directly to an account titled the “Interbank FX – Customer Funds Account” that Interbank FX has set up specifically for clients at Bank of the West for this reason. Funds never come to

an Interbank FX company account for your protection.

Interbank FX employs Bank of the West which is the largest Californian bank of its kind and it is fully owned by BNP Paribas, one of the largest banks both in Europe and the world. In keeping with common practice among NFA registered institutions, Interbank FX does not insure client funds. The company does, however, strive to maintain an excellent reputation among clients for transparency, integrity and investor

assistance. The NFA prevents FCM’s such as Interbank FX from making representations that forex funds deposited are “segregated” or given special protection under the bankruptcy laws – see Retail Forex Transactions – A Regulatory Guide 11/03

TRADING PERFORMANCE DISCLOSURE:

Past results are not indicative of future results. Hypothetical performance on demo accounts or historical performance on live accounts have inherent limitations, such as not being able to accurately predict the impact of unforeseen market-moving events. Any indication provided by a forex fund manager is not a guarantee of performance. Any guarantee of profit or future return is illegal and should be reported to Interbank FX immediately.  It is the responsibility of the investor to assess the qualifications

of the money manager prior to signing the limited power of attorney (LPOA) granting him the ability to trade and to charge commissions. It is also the responsibility of the client to monitor trading activity through daily reports submitted by Interbank FX.

The client has, at its sole discretion, the ability to revoke the LPOA granted to the money manager by sending an e-mail to accounts@interbankfx.com, after paying all commissions due to the money manager prior to the revocation.