PRODUCT DISCLOSURE STATEMENT

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2 PRODUCT DISCLOSURE STATEMENT Margin Foreign Exchange Contracts and Contracts for Difference Issuer: Myfx Markets Pty Limited 31c Pandora Place Pakuranga, Auckland 2010 New Zealand Date: 01/04/2015 This document provides important information about margin foreign exchange contracts and contracts for difference to help you decide whether you want to enter into any of these derivatives. Many derivatives are complex and high-risk financial products that are not suitable for most retail investors. If you do not fully understand a derivative described in this document and the risks associated with it, you should not enter into it. You can also seek advice from a financial adviser to help you make your decision. You should ask if that adviser has experience with these types of derivatives. 1

3 SECTION 1.KEY INFORMATION SUMMARY (a) What is this? This is a product disclosure statement (PDS) for margin foreign exchange contracts (Margin FX Contracts) and contracts for difference (CFDs) provided by Myfx Markets Pty Limited (Myfx Markets). Margin FXContracts and CFDs are derivatives, which are contracts between you and Myfx Markets that may require you or Myfx Markets to refer to making payments or delivering a commodity, currency, financial product, or other asset (as the case may be). In the case of Margin FX Contracts, the value of the contract(and the amountsthat must be paid or received (or both)) will depend on the price, value, or level (as the case may be) of the underlying currency. The contract specifies the terms on which those payments must be made. In the case of CFDs, the value of the contract(and the amountsthat must be paid or received (or both)) will depend on the price, value, or level (as the case may be) of the underlying index, commodity, futures contract, bullion or other instrument or asset or factor. The contract specifies the terms on which those paymentsmust be made. (b) Warning Derivatives are complicated and often high-risk financial products. Risk that you may owe money under the derivative: If the price, value, or level (as the case maybe) of the underlying currency, index, commodity, futures contract, bullion or other instrument or asset or factorchanges, you may suffer losses. In particular, unlike most other kinds of financial products, you may end up owing significant amounts of money. You should carefully read sections 2(c) to (f) on how payments and returns are calculated. Your liability to make margin or collateral payments: Myfx Markets may require you to make additionalpayments (margins or collateral) to contribute towards your future obligations under these derivatives. These payments may be required at short notice and can be substantial. You should carefully read sections 2(c) to (f) about your obligations. Risks arising from issuer s creditworthiness: When you enter into derivatives with Myfx Markets, you are exposed to a risk that Myfx Markets cannot make payments as required. You should carefully read section 3 of this PDS(risks of these derivatives) and consider Myfx Markets creditworthiness. If Myfx Markets runs into financial difficulty, the margins or collateral you provide may be lost. (c) About Myfx Markets Myfx Markets is a provider of margin foreign exchange contracts and contracts for difference.. (d) Which derivatives are covered by this PDS? This PDS covers Margin FX Contracts and CFDs. 2

4 Margin FX Contracts: A Margin FX Contract is an agreement under which you may make a profit or incur a loss arising from fluctuations in the price of the contract. The price of Myfx Markets Margin FX Contracts is based on the price of an Underlying Instrument being currency. However, you do not own or have any interest or right to that Underlying Instrument or have an ability to trade it on an exchange by entering into a Margin FX Contract. By entering into a Margin FX Contract, you are either entitled to be paid an amount of money, or required to pay an amount of money, depending on movements in the price of the Margin FX Contract. The amount of any gain or loss made on a Margin FX Contract will be the net of: the difference between the price of the contract when your Position is opened and the price of the contract when the Position is closed; any Margin Adjustments in respect of the contract; any Swap Charges or Swap Benefits relating to the contract. The balance in your Account will also be affected by other amounts you must pay to Myfx Markets in respect of your Account such as interest on debit balances. Margin FX Contracts allow trading with reference to an Underlying Instrument being a currency. Further, they allow trading using a high degree of leverage (where you only outlay a relatively small amount (in the form of margin) to secure an exposure to the Underlying Instrument, and gains or losses are amplified). A Margin FX Contract may be used to hedge exposure toexchange rate fluctuations,or for investment purposes with a view to possibly deriving gains from exchange rate fluctuations. Where used for hedging, hedging also means that you may not receive the benefits of movements on your favour. Where used for investment, losses (rather than gains) may result, which magnitude will be amplified by the extent of the leverage. CFDs: A CFD is an agreement which allows you to make a profit or loss from fluctuations in the price of the CFD. The price of the CFD is based on the price of therelevant Underlying Instrument. However, you do not own or have any interest or right in that Underlying Instrument or have an ability to trade it on an exchange by entering into a CFD. By entering into a CFD, you are either entitled to be paid an amount of money, or required to pay an amount of money, depending on movements in the price of the CFD. The amount of any gain or loss made on a CFD will be the net of: the difference between the price of the CFD when your Position is opened and the price of the CFD when the Position is closed; any Margin Adjustments in respect of the contract; any Swap Charges, Swap Benefits, Rollover Charges or Rollover Benefits relating to the CFD. The balance in your Account will also be affected by other amounts you must pay to Myfx Markets in respect of your Account such as interest on debit balances. CFDs allow trading with reference to an Underlying Instrument. Further, they allow trading using a high degree of leverage (where you only outlay a relatively small amount (in the form of margin) to secure an exposure to the Underlying Instrument, and gains or losses are amplified). A CFD may be used to hedge exposure to fluctuations, or for investment purposes with a view to possibly deriving gains from fluctuations. Where used for hedging, hedging also means that you may not receive the benefits of movements on your favour. Where used for investment, losses (rather than gains) may result, which magnitude will be amplified by the extent of the leverage. 3

5 TABLE OF CONTENTS SECTION 1. KEY INFORMATION SUMMARY 1 SECTION 2. KEY FEATURES OF THE DERIVATIVES 4 SECTION 3. RISKS OF THESE DERIVATIVES 13 SECTION 4. FEES 17 SECTION5. HOW MYFX MARKETS TREATS FUNDS AND 21 PROPERTY RECEIVED FROM YOU SECTION 6. ABOUT MYFX MARKETS 22 SECTION 7. HOW TO COMPLAIN 23 SECTION 8. WHERE YOU CAN FIND MORE INFORMATION 24 SECTION 9. HOW TO ENTER INTO CLIENT AGREEMENT 25 SECTION 10. GLOSSARY 26 Page number 4

6 SECTION 2.KEY FEATURES OF THE DERIVATIVES The information contained in this PDS does not constitute a recommendation, advice or opinion and does not take into account your particular financial situation or goals. (a) Nature and effect of the derivatives Margin FX Contracts A Margin FX Contract is an agreement under which you may make a profit or incur a loss arising from fluctuations in the price of the contract. The price of Myfx Markets Margin FX Contracts is based on the price of an Underlying Instrument being currency. However, you do not own or have any interest or right to that Underlying Instrument or have an ability to trade it on an exchange by entering into a Margin FX Contract. By entering into a Margin FX Contract, you are either entitled to be paid an amount of money, or required to pay an amount of money, depending on movements in the price of the Margin FX Contract. CFDs CFD is an agreement which allows you to make a profit or loss from fluctuations in the price of the CFD. The price of the CFD is based on the price of therelevant Underlying Instrument. However, you do not own or have any interest or right in that Underlying Instrument or have an ability to trade it on an exchange by entering into a CFD. By entering into a CFD, you are either entitled to be paid an amount of money, or required to pay an amount of money, depending on movements in the price of the CFD. (b) Key benefits or main uses of the derivatives Hedging You can use Margin FX Contracts and CFDs to hedge exposures in relation to the relevant Underlying Instrument. Hedging also means that you may not receive the benefits of movements on your favour. Investment You can also use Margin FX Contracts and CFDs for investment, with a view to possibly deriving gains from fluctuations with respect to the Underlying Instruments.Where used for investment, losses (rather than gains) may result. Leverage The use of Margin FX Contracts and CFDs involves a high degree of leverage. These contracts enable you to outlay a relatively small amount (in the form of margin) to secure an exposure to the Underlying Instrument. Gains and losses are amplified by the extent of the leverage. The leverage can work against you as well as for you. The use of leverage can lead to large losses as well as large gains. (c) Amounts payable, method of calculating the amounts payable by(or delivery obligations of) each party Margin FX Contracts By entering into a Margin FX Contract, you are either entitled to be paid an amount of money, or required to pay an amount of money, depending on movements in the price of the Margin FX Contract. The amount of any gain or loss made on a Margin FX Contract will be the net of: 5

7 the difference between the price of the contract when your Position is opened and the price of the contract when the Position is closed; any Margin Adjustments in respect of the contract; any Swap Charges or Swap Benefits relating to the contract. The balance in your Account will also be affected by other amounts you must pay to Myfx Markets in respect of your Account such as interest on debit balances. Myfx Markets prices for Margin FX Contracts are calculated by us by applying our markup with reference to the prices for the Underlying Instrument most recently quoted by one or more third party banks. CFDs By entering into a CFD, you are either entitled to be paid an amount of money, or required to pay an amount of money, depending on movements in the price of the CFD. The amount of any profit or loss made on a CFD will be the net of: the difference between the price of the CFD when the CFD Position is opened and the price of the CFD when the CFD Position is closed; any Margin Adjustments in respect of the contract; any Swap Charges or Swap Benefits relating to the CFD; any Rollover Charges or Rollover Benefits relating to the CFD. The balance in your Account will also be affected by other amounts you must pay to Myfx Markets in respect of your Account such as interest on debit balances. MyfxMarkets sprices for Index Future CFDs are calculated by us by applying our markup to the midmarket price of the relevant futures contract over an equity index on the relevant exchange. Myfx Markets prices for Bullion CFDs are calculated by us by applying our markup with reference to the prices for the Underlying Instrument most recently quoted by one or more third party banks. Myfx Markets prices for Commodity CFDs are calculated by us by applying our markupto the last traded price of the Underlying Instrument (being a futures contract over oil or gas). Margin FX Contracts and CFDs - Margins Margin FX Contracts and CFDs are subject to Margin obligations. It is your responsibility to meet these obligations to open and/or maintain your Positions. Initial Margin Upon placing a trade that creates an open Position you are required to pay us, or have in your Account, the Margin for that trade as calculated by Myfx Markets ( Initial Margin ). This Initial Margin is calculated as follows: (Quantity of Contract Units x Contract Price) x Margin Percentage. Continuing Obligation in relation to Margin In addition to the Initial Margin, you have a continuing obligation in relation to Margin to ensure that, at all times during which you have opened Positions, your Total Equity is at least equal to at least the Margin that Myfx Markets requires you to have paid to us for all of your open Positions, such Margin required by Myfx Marketsat all times for each open Position being: (Quantity of Contract Units x Contract Price) x Margin Percentage. You must pay to Myfx Markets the Margin required by Myfx Markets for all of your open Positions.Your Total Equity will be determined by Myfx Markets on an ongoing basis during the day.if there is any shortfall between your Total Equity and your Total Margin 6

8 Requirement for all your open Positions, you are required by Myfx Markets to deposit additional funds into your account so that there is no such shortfall. These funds are due and payable to Myfx Markets immediately on your Total Equity falling below your Total Margin Requirement for all your open Positions. Margin Requirements will fluctuate with the value of the Underlying Instrument on which the contract is based. Further, where you deal in a contract that is denominated in a currency other than the Base Currency of your Account, your Margin Requirement may also be affected by fluctuations in the relevant foreign exchange rate.also Myfx Markets may vary the Margin Percentage (and therefore the Margin) at any time at Myfx Markets discretion. Without limitation, Myfx Markets may vary the Margin Percentage in response to or in anticipation of the following: changing volatility and/or liquidity in the Underlying Instrument or in the financial markets generally; economic news; changes in your dealing pattern with Myfx Markets; your credit circumstances change; or your exposure to Myfx Markets being concentrated in a particular Underlying Instrument. The Total Equity of your Account will fluctuate according to the money you have deposited in your Account, the dealings conducted on your Account and the Positions you hold.during the trading day, your Account is constantly calculated in line with movements in Myfx Markets prices. The Account balance is also calculated at the end of the day. It is your responsibility to monitor and manage your open Positions and exposuresand ensure that your Account is sufficiently funded at all times for Margin. This may require: closing or reducing one or more of your open Position(s) in order to reduce your Margin Requirement; and/or depositing additional funds into your Account in order to satisfy the Margin Requirement. If you choose to deposit additional funds into your Account, these additional funds must be cleared funds before they will be treated as having satisfied your obligations. Breach of your obligations in relation to Margin is an Event of Default under clause 15.1 of the Client Agreement. If an Event of Default occurs, Myfx Markets may, among other things, terminate the Client Agreement and/or close all or any of your open Positionsand deduct the resulting realised loss from your Account. Further limit In addition to the Initial Margin and continuing obligationin relation to Margin set out above, if at any time (Total Equity less aggregate Margin Requirement) is at or below 20% of aggregate Margin Requirement, whilst it is not an Event of Default, Myfx Markets may (but is not obliged to) close some or all of your open Positions at Myfx Markets absolute discretion. Myfx Markets will not be responsible for any losses you may suffer or incur in connection with any such closing of your open Positions or any lack of closing thereof. If you do not wishmyfx Markets to be able to exercise those rights, you will ensure that at any time (Total Equity less aggregate Margin Requirement) is above 20% of aggregate Margin Requirement. (d) Term of the derivatives or how that term will be set A Position in respect of a Margin FX Contract or a CFD is open until it is closed, and the amount of profit or loss to you can then be calculated. A Margin FX Contract or CFD will close automatically on the fifth anniversary of the date on which the Margin FX Contract or CFD was first entered into. Before that, you may give instructions to request close, or Myfx Markets can exercise its rights to close as set out in clause 12.1 and clause 12.2 of the Client Agreement. 7

9 There are also provisions in relation to automatic closing and replacement with an equivalent contract for Margin FX Contracts and CFDs (other than Excepted Contracts) in clause of the Client Agreement and for Excepted Contracts in clause of the Client Agreement. (e) Example of (c) and (d) Example in relation to Margin FX Contracts You purchase 100,000 euros at the EUR/USD exchange rate of That would cost USD 118,000. The Margin required is USD 1,180 ( x 100,000 x 1%). Two weeks later, you exchange your 100,000 euros back into USD at the EUR/USD exchange rate of You will obtain 125,000 USD. Your gain in that instance is USD 7,000. Please note that each example provides an example of one situation only and does not reflect the specific circumstances or the obligations that may arise under a derivative entered into by you. (f) How you may enter into a Margin FX Contract or a CFD Account You will need to open an account to enter into a Margin FX Contract or CFD with MyFx Markets. To do this, please read this PDS and the Client Agreement in their entirety, and then complete an Application Form. You may obtain these documents by: telephoningmyfx Markets on going to Myfx Markets website at The minimum balance to open an account is as follows: USD 200 or its currency equivalent*. * This may be varied at the discretion of Myfx Markets. Myfx Markets does not accept cash equivalents as opening collateral (eg no securities as deposits). Orders and Positions You may place requests for orders to deal in Margin FX Contracts or CFDs in two ways: by telephoning on ; or using MyFx Markets Trading Platform through a computer connected to the internet or your mobile telephone. Myfx Markets will not accept requests for orders or instructions from you through any other means, such as , unless previously agreed with you to do so.it is possible for a third party to place requests for orders on your behalf provided that a written and executed Power of Attorney or Authorised Person authority has been received and accepted by us. The size of your Margin FX Contract or CFD must exceed the Minimum Trading Size asmyfx Markets may specify on Myfx Markets website at 8

10 You can take both long and short Positions. If you take a long Margin FX or CFD Position, you profit from a rise in the underlying Base Currency price or the price of the Underlying Instrument, and you lose if the underlying Base Currency price or the price of the Underlying Instrument falls. Conversely, if you take a short Position, you profit from a fall in the underlying Base Currency price or the price of the Underlying Instrument, and lose if the underlying Base Currency price or the price of the Underlying Instrument rises. You may request to close a Position in a Margin FX Contract or a CFD by selecting a Position in the Trading Platform and clicking the Close button. However, please note that Myfx Markets may not be able to allow you to close a Position at a particular time and/or at the particular price, for example, without limitation, due to gapping or illiquidity. When you make a request to place an order, Myfx Markets may: a) provide an amended quote of the Contract Price originally quoted by our Trading Platform; and/or b) make the quote subject to special conditions and requirements; asmyfx Markets considers fair and reasonable and as notified to you by Myfx Markets at the time of the order being considered by Myfx Markets. This may occur, for example, when you place an order outside the Normal Trading Size, or the aggregate of your order and all other orders for a Margin FX Contract or CFD is outside the Normal Trading Size, or to take account of any change in market conditions since the original quote. Such amended Contract Price will be determined by Myfx Markets as Myfx Markets considers fair and reasonable having regard to the applicable prices and costs of entering into a transaction of that size on the relevant market. You will not be obliged to proceed with any order for which special conditions and requirements are notified to you by Myfx Markets. For example, Myfx Markets may quote a revised price applicable to the proposed Margin FX Contract or CFD which you may, at your absolute discretion, accept or reject. The amended quote may no longer be available if there is any delay in acceptance. Myfx Markets can change or re-quote prices after you have already placed your requests for order because, among other things, markets are subject to slippage from time to time.slippage is the difference between a requested price of a trade or pending order and the price at which the order was executed or filled.a gap in the markets is a break between prices on a chart that occurs when the price of a product makes a sharp move up or down with no trading occurring in between or when the market closes at different rate to when it opens again. There are 2 common types of slippage: (i) (ii) when a market gaps, either over the weekend or after a news event (like payroll figures or interest rate decisions); and when a price is clicked on and has substantially changed in the time it took to get back to the executing bank or broker. For the benefit of clients,myfxmarkets treats both slippage scenarios in the same way that they would be treated in the exchange-traded share or futures markets in that MyfxMarkets slips clients to a better price if the interbank market from which MyfxMarkets obtains its prices has moved in the client s favour, and similarly a worse price if the market has moved against them.the price differences reflect the slippage that Myfx Markets gets from the aggregated price obtained from its hedging counterparties. Formation of contract between you and Myfx Markets A quote given to you by one of our traders is not an offer to contract. If you indicate that you wish to trade at the price quoted you will be deemed to be making an offer to trade at the quoted price and our trader will be entitled to confirm or reject that offer. No trade will be effective unless and until such confirmation is given. 9

11 Your clicking buy or sell or accepting a quote to buy or sell by telephone will send a message to Myfx Markets traders indicating that you wish to trade on the terms and conditions indicated. This message will constitute an offer by you to buy or sell at the price and trade size chosen. If Myfx Markets accepts the trade Myfx Markets will send you a message to this effect. Your trade will not have been placed and no contract will come into existence until Myfx Markets sends this message to you. You must wait for this message to appear after sending a buy or sell message and should you not receive this within two minutes you must notify us immediately. If you do not receive Myfx Markets Confirmation and you do not notify us as required, you will be deemed to have agreed only the transactions recorded by Myfx Markets. Similarly, if you dispute the contents of any Confirmation sent by Myfx Markets to you, you must notify us immediately upon receipt by telephone; if you do not, the transactions recorded by Myfx Markets will be deemed to have been agreed by you. Payments You may deposit funds by credit card, electronic transfer, B-Pay or by cheque. All funds must be cleared funds in your Account before they are treated as satisfying an obligation in relation to Margin or can be made available for you to use in dealing in Margin FX Contracts or CFDs. Payments using B-Pay are not cleared funds in your Account at the time of use of B-Pay. Generally, cleared funds are received in your Account approximately 24 hours after the use of B-Pay. Myfx Markets will pay you through electronic transfer or by cheque. Using Trading Platform Myfx Markets Trading Platform contains an extensive user guide which is accessible from the accounts. Trading Foreign exchange markets trade continuously. They open at 05:00pm Eastern Standard Time (America) Sunday evening (Monday morning New Zealand ( NZ ) time) and close at 05:00pm, Eastern Standard Time (America) on Friday (Saturday morning NZ time). They are open 24hours during this period, other than a daily 5 minute outage at 05:00-05:05pm Eastern Standard Time (America).Prices are continuously streamed during this period. Because foreign exchange is not an exchange-traded product, it is not possible to suspend or halt the streaming of these prices.for futures, commodities and index future CFDs, Myfx Markets will halt client trading and the use of client money in an asset or derivative when a trading halt exists for the underlying asset, or trading in the underlying asset has been suspended through an exchange or otherwise.myfx Markets will only allow you to trade Margin FX Contracts and CFDs when the market is open. Stop Loss Orders and Limit Orders Stop Loss Orders and Limit Orders are only available on selected instruments. Myfx Markets may refuse to accept any Stop Loss Orders or Limit Orders on any trade. Working orders Stop Loss orders:a Stop Loss Order is an order placed with the aim of limiting the potential loss on an open Position. A Stop Loss order allows you to specify a price at which you wish to close out a Position or open a Position. Stop Loss Orders must be placed at a minimum distance from Myfx Markets current bid and offer prices. The minimum distance away from a Stop Loss Order placement is specified on Myfx Markets Website and will be advised to you upon request.myfx Markets will execute a Stop Loss Order once the offer price reaches the order price in the case of a buy-order, or Myfx Markets bid price has reached the order price in the case ofa sell-order.myfx Markets notes that stop losses are not guaranteed and the execution of such orders will depend on market volatility and liquidity. A Stop Loss Order is triggered automatically when the Stop Loss price 10

12 is reached. Once the Stop Loss price is reached, the Stop Loss Order becomes a Market Order to buy or sell (depending on your instructions). The Stop Loss order could be activated by a short-term fluctuation in the markets, or in a fast moving market, the price at which the trade is executed could be much different from the stop-loss order price. This is known as gapping and is due to market movements during the time it takes to open or close Positions.You should discuss the operation of these order types with one of Myfx Markets representatives. You should also refer to our Client Agreement with respect to the operation of these order types. Working orders Limit Orders:A Limit Order may be used by you to either open or close a Position at a predetermined price that is more favourable to you than the current market price. Myfx Markets will execute your Limit order when Myfx Markets offer price has reached the price of your buy-limit Order or Myfx Markets bid price has reached the price of your sell-limit Order. You acknowledge and agree that under the Client Agreement Myfx Markets may impose a Stop Loss Order on one or more of your Positions. Further, Myfx Markets retains the right to impose a limit on the number of open pending orders of each account to prevent the degradation of the Trading Platform performance of all other clients. The limit is currently set at 100 orders but Myfx Markets retains the right to change this limit. (g) Rights of a party to alter the terms or to terminate No Cooling off There are no cooling-off arrangements for Myfx Markets products being Margin FX Contracts and CFDs. This means that you do not have the right to return the product, and you cannot request a refund of the money paid to acquire the product. You are bound by the terms when you enter into a contract, despite the fact that settlement may occur at a later date. You may request to close a Position in a Margin FX Contract or a CFD by selecting a Position in the Trading Platform and clicking the Close button. However, please note that Myfx Markets may not be able to allow you to close a Position at a particular time and/or at the particular price, for example, without limitation, due to gapping or illiquidity. Requote Prices As set out above, MyFX Markets may change or re-quote prices after you have already placed your order. Changes in Margin Percentage Myfx Markets may (under clause 10.5 of the Client Agreement) exercise its right to alter the Margin Percentage in relation to any of Myfx Markets CFDs or Margin FX Contracts at any time at Myfx Markets discretion. The alteration will take immediate effect over the affected open Positions. This change will affect your Margin Requirement. Events of Default Myfx Marketshas extensive powers under the Client Agreement to take action where there is an Event of Default (as described in clause 15.1 of the Client Agreement). These include, among others, where you fail to provide to Myfx Markets any Margin or other sum due under the Client Agreement in respect of any Margin FX Contract or CFD, or the Margin held by Myfx Markets in respect of any open Positions falls below the Margin Requirements, where an Insolvency Event occurs in relation to you or where at any time or for any period deemed reasonable by Myfx Markets you are not contactable or you do not respond to any notice or correspondence from Myfx Markets. Myfx Markets powers (as described in clause 15.2 of the Client Agreement)enable Myfx Markets to, among other things, 11

13 terminate or close out all or any of your Positions, immediately require payment of any amount you owe Myfx Markets and terminate the Client Agreement. Additional Rights of Myfx Markets Myfx Markets may also close your Account on 14 days notice in certain circumstances (as described in clause 15.3 of the Client Agreement). If Myfx Markets relies on those rights, your Account will be suspended during the 14 day notice period and you will not be able to place trades other than those to close existing open Positions. If you have not closed all the open Positions within the 14 days notice period, Myfx Markets may take any action referred to in clause 15.2 of the Client Agreement. The relevant circumstances are: a) any litigation is commenced involving you and Myfx Markets in an adversarial position to each other and, in view of the subject matter of or any issues in dispute in relation to that litigation, Myfx Markets reasonably decides that it cannot continue to deal with you while the litigation is pending; b) where you have persistently acted in an abusive manner toward Myfx Markets staff (for example by displaying what MyMarkets considers to be serious discourtesy or the use of offensive or insulting language); c) wheremymarkets believes on reasonable grounds that you are unable to manage the risks that arise from your trades. Further, if at any time (Total Equity less aggregate Margin Requirement) is at or below 20% of aggregate Margin Requirement, whilst it is not an Event of Default, Myfx Markets may (but is not obliged to) close some or all of your open Positions at Myfx Markets absolute discretion. Myfx Markets may amend or replace the Client Agreement by giving written notice of the changes. Myfx Markets will only make changes for good reason, including: a) making the provisions clearer or more favourable to you; b) reflecting legitimate increases or reductions in the cost of providing services to you; c) rectifying any mistakes that may be discovered; d) reflecting any changes in the applicablellaws, codes of practice or decisions by a court, ombudsman, regulator or similar body; e) reflecting changes in market conditions; f) reflecting changes in the way Myfx Marketsdoes business. Myfx Markets may also terminate the Client Agreement and close your Account and any Positionat any time by giving you 30 days written notice. Force Majeure Events If Myfx Markets determines that a Force Majeure Event exists, then Myfx Markets may, at its sole discretion, take any one or more of the steps outlined in clause 27.2 of the Client Agreement.These steps includealtering the Margin Percentage, amending or varyingthe Client Agreement and any transaction insofar as it is impractical or impossible for Myfx Markets to comply with our obligations to you and closing any or all open Margin FX Contracts or CFDs as Myfx Markets deems to be appropriate in the circumstances. Material Errors It is possible that errors, omissions or misquotes ( Material Error ) may occur in relation to Margin FX Contracts or CFDs, which by fault of either of Myfx Markets or any third party, is materially incorrect when taking into account market conditions and quotes in Underlying Instruments which prevailed at the time. A Material Error may include an incorrect price, date, time or other characteristic of a Margin FX Contract or CFD or any error or lack of clarity of any information. If a trade is based on a Material Error, Myfx Markets reserves the right without your consent to: 12

14 (i) amend the terms and conditions of the Margin FX Contract or CFD to reflect what Myfx Markets considers to have been the fair price at the time the Margin FX Contract or CFD was entered into and there had been no Material Error; (ii) close the trade and any open Positions resulting from it; (iii) void the Margin FX Contract or CFD from the outset; or (iv) refrain from taking action to amend or void the Margin FX Contract or CFD. Myfx Markets will exercise its right in relation to Material Errors reasonably, in good faith and as soon as reasonably practicable aftermyfx Markets becomes aware of the Material Error. In the absence of fraud on Myfx Markets part, Myfx Marketsis not liable to you for any loss, cost, claim, demand or expense that you incur or suffer (including loss of profits or indirect or consequential losses), arising from or connected with the Material Error including where the Material Error arising from an information service on which Myfx Markets relies. Myfx Markets may, without notice, adjust your Account or require that any moneys paid to you in relation to the Margin FX Contract or CFD the subject of the Material Error be repaid to us as a debt due payable to us on demand. Manipulation If Myfx Markets reasonably believes that you have manipulated Myfx Markets prices, execution processes or Trading Platform, Myfx Markets may, in its sole and absolute discretion, without notice to you, take actions set out in clause 9.10 of the Client Agreement, including: enforce the trade(s) against you if it is a trade(s) which results in you owing money to Myfx Markets; treat some of or all your trades as void from the outset if they are trades which result in Myfx Markets owing money to you, unless you produce conclusive evidence (within 30 days of Myfx Markets giving you notice) that you have not committed any breach or warranty, misrepresentation or undertaking in the Client Agreement; take such other action as Myfx Markets considers appropriate. Termination by you You may also terminate the Client Agreement or close your Account at any time by giving Myfx Markets written notice. Your Account will be closed as soon as reasonably practicable after Myfx Marketshas received notice, all open Positions are closed, or orders cancelled, and all of your obligations are discharged. 13

15 SECTION 3.RISKS OF THESE DERIVATIVES Margin FX Contracts and CFDs are derivative products that are speculative, highly leveraged, and carry significantly greater risk than non-geared investments. You may incur losses to the extent of your total exposure to Myfx Markets and any additional fees and charges that apply. These losses may be far greater than the money that you have deposited into your Account or are required to deposit to satisfy Margin Requirements. Myfx Markets does not make or give any recommendation, advice or opinion. Myfx Markets does not take into account your particular financial situation or goals.you should obtain your own independent financial, legal, taxation and other professional advice as to whether Margin FX Contracts or CFDs are an appropriate investment for you. (a) Product risks Loss of moneys You may incur losses to the extent of your total exposure to Myfx Markets and any additional fees and charges that you are liable to pay to Myfx Markets. These losses may be far greater than the money that you have deposited into your Account or are required to satisfy Margin Requirements with the leverage involved in margin trading. You could be required to pay further funds that represent losses and other fees on your open and closed Positions.If you acquire a Margin FX Contract or CFD you will beexposed to movements in the price, value or level of the Underlying Instrument.The risk of loss is increased as you are leveraged. Risk resulting from failure to provide required margin If the Margin FX Contract or CFD price moves against your Position you may be required to deposit further moneys with Myfx Markets in order to satisfy your Total Margin Requirement and maintain your Position. The amount of the additional Margin may be substantial and failure to pay it promptly may result in: some or all of your open Positions being closed or liquidated by Myfx Markets; you being prevented from opening new Positions or extending existing Positions; and you being liable for interest charges on negative or debit balances. Further, any additional funds must become cleared before they will be taken as satisfying your Margin Requirement. Your Position may be liquidated before any additional funds that you deposit have had the opportunity to become Cleared Funds. Derivative markets Derivative markets are speculative and volatile. Margin FX Contracts and CFDs are derivative instruments and can be highly volatile. Under certain market conditions, the price of derivatives contracts may not maintain the usual relationship with the Underlying Markets because of unforeseeable events or changes in conditions, none of which can be controlled by you. The prices of Margin FX Contracts and CFDs will be influenced by, amongst other things, changing supply and demand relationships, governmental, agricultural, commercial and trade programs and policies, national and international political and economic events and their prevailing psychological characteristics of the foreign exchange currency markets. 14

16 Dealing may be affected by factors in the Underlying Market Myfx Markets prices are derived from prices in the Underlying Market. Under certain market conditions, it could become difficult or impossible for you to manage the risk of open Positions by entering into opposite Positions in another contract or closing existing Positions. Sometimes markets move so quickly that gapping occurs. Gapping is the exposure to loss from failure of market prices or rates to follow a "smooth" or continuous path due to external factors such as world, political, economic and specific corporate events. If gapping occurs in the Underlying Market, it will also occur in the price of the relevant Margin FX Contract or CFD and may mean that you are unable to close out your Position or open a new Position at the price at which you have placed your order or may have liked to place your order. The Underlying Market may lack liquidity, caused by insufficient trading activity or because the aggregate of all requests for orders at a particular price determined by Myfx Markets exceeds the available volume in that market. This may affect our ability to offer Margin FX Contracts or CFDs in sufficient volume to allow you to close out your Position or open a new Position. As a result, a potentially profitable deal may not be executed, or it may not be possible to close out a Position in a timely fashion at the price you require. This may lead to reduced profits and high losses. Myfx Markets has the right to close your open Position, limit the size of your open Position or refuse orders to establish new Positions. You should refer to clause 15.2 of the Client Agreement Your account will be maintained in the currency that you have nominated: that is, the Base Currency When you deal in a Margin FX Contract or CFD whose settlement currency is denominated in a currency other than the Base Currency, all Margins, profits, losses, Swap Charges, SwapBenefits, Rollover Charges and Rollover Benefits in relation to that product are calculated using the currency in which the product is settled and is then converted to your Base Currency. Accordingly, your profits or losses may be affected by fluctuations in the relevant Underlying Market price between the time the order is placed and the time the Position is closed, liquidated or offset. Upon closing a Position that is denominated in a currency other than the Base Currency of your account you will be able to request that the foreign currency balance be converted to the Base Currency of your account. Any conversion will be at the exchange rate quoted by Myfx Markets and subject to the Conversion Fee (please refer to section 4). Until the foreign currency balance is converted to the Base Currency, fluctuations in the relevant foreign exchange rate may affect the unrealised profit or loss made on the Position. Loss caused by spread Because of the difference between the buying and selling price of a Margin FX Contract or CFD, the relevant price must move favourably before you can break even. In other words, even if the price does not move at all and you close out your Position, you will make a loss to the extent of the MyfxSpread and any other charges you have incurred to Myfx Markets. Furthermore, the Myfx Spread may be larger at the time you close out the Position than it was at the time you opened it. You should also note that a spread position, that is, the holding of a bought contract for one specified date and a sold contract for another specified date, is not necessarily less risky than a simple long (ie bought) or short (ie sold) Position. 15

17 Regulatory changes Changes in taxation and other laws, government fiscal, monetary and regulatory policies may have a material adverse effect in your dealings in your contracts with Myfx Markets. (b) Issuer risks Counterparty risk You will be dealing with Myfx Markets as counterparty to every transaction. You are exposed to the risk that Myfx Marketsbecomes insolvent and is unable to meet its obligations under the Margin FX Contracts or CFDs. Myfx Markets creditworthiness has not been assessed by an approved rating agency. This means that Myfx Markets has not received an independent opinion of its capability and willingness to repay its debts from an approved source. Myfx Markets limitsits exposure by entering into offsetting over-the-counter transactions as principal with counterparties to hedge the market risk arising from Myfx Markets transactions with investors. Myfx Marketsis also exposed to the financial risks of the financial institutions with which Myfx Markets holds client funds and with which Myfx Markets enters into hedging or offsetting transactions to manage Myfx Markets exposure to you. You should note that Myfx manages these risks in accordance with broad Compliance Plans, which are rigorously controlled and administered to ensure that risks are measured and managed. Myfx Marketshas risk management and compliance systems in place to manage its risks including but not limited to financial, operational and credit risks. Funds are held with reputable financial institutions. Myfx Marketshas policies around monitoring of client positions and liquidations. Myfx Markets monitors market risk on a daily basis against set limits. Myfx Markets capital requirements and surplus position is monitored on a daily basis by Myfx Markets. The risk exposure that Myfx Markets clients face is calculated by Myfx Markets position keeper and reconciliation software in real time. This software is monitored by risk management staff, at all times whilst the foreign exchange and Underlying Markets are operating. Myfx Markets free margin levels with hedging counterparties are displayed at all times, showing how much market movement or increase in client position size can be sustained with the current level of funds. Daily stress testing is conducted and alerts have been established at pre-defined levels to ensure that appropriate remedial action is taken in the event of market movements that are adverse to Myfx Markets financial position. You should be aware that you would be an unsecured creditor in respect of monies owed in the unlikely event that Myfx Markets were to become insolvent. Not a regulated market Myfx Markets acts as principal and contracts entered into with Myfx Markets are not traded on a licensed market. Accordingly, the protections associated with licensed markets are not available to individuals, corporations or other entities trading in Myfx Markets products. (c) Risks when entering or settling the derivatives Systems risk 16

18 There are operational risks associated with any trading platform and any disruption to Myfx Markets Trading Platform may mean that you will be unable to trade in the product with Myfx Markets when desired. Accordingly, you may suffer a loss as a result caused by a delay in Myfx Markets operational processes such as communications, computers, computer networks, software or external events that cause delays in the execution and settlement of a transaction. Myfx Marketsdoes not warrant that the Trading Platform will always be available or accessible when the exchanges on which the Underlying Instruments in respect of which you have traded or wish to trade are open and Myfx Markets reserves the right to remove altogether or reduce the Trading Platform service at any time for any purpose, without thereby incurring any liability to you.myfx Markets does not warrant that the Electronic Services or any component of any Electronic Services or any services performed in respect of any such Electronic Services will meet the requirements of any user, or that the operation of the Electronic Services will be uninterrupted or error-free, or that any services performed in respect of the Electronic Services will be uninterrupted or error-free.myfx Marketshas no liability to you for any loss, damage or cost which you may suffer as a result of transmission errors, technical faults, malfunctions, illegal intervention in network equipment, network overloads, malicious blocking of access by third parties, internet malfunctions, interruptions or other deficiencies on the part of internet service providers or other system errors. You acknowledge that access to Electronic Services may be limited or unavailable due to such system errors, and that Myfx Markets reserves the right upon notice to suspend access to Electronic Services for this reason. Myfx Markets does not accept any liability in respect of any delays, inaccuracies, errors or omissions in any data provided to you in connection with an Electronic Service.Myfx Markets has no liability to you in the event that any viruses, worms, software bombs or similar items are introduced via the Electronic Service or any software provided by Myfx Markets to you in order to enable you to use the Electronic Service, so long as Myfx Marketshas taken reasonable steps to prevent any such introduction. 17

19 SECTION 4.FEES (a) General Whilst Myfx Markets endeavours to include all fees and charges in the spread quoted, in some circumstances you may incur fees and charges. The fees and charges when dealing in Margin FX Contracts and CFDs may incorporate any or all of the following: Margin Adjustments; Swap Charges and Rollover Charges; Interest charges applied to debit balances in your Account; Exchange fees; Administration charges. The fees and charges may change from time to timeand may differ according to whether you are a New Zealand Client or a Foreign Client but will be notified to you. (b) Commissions With the exception of themyfx Pro Accounts, there will be no commissions payable on trades executed in Myfx Markets Margin FX Contracts or CFDs. Myfx Markets fees for the products Myfx Markets offers are built into the price of the contract (Myfx Spread) when you seek to transact with Myfx Markets. Because Myfx Markets deals as principal, the prices Myfx Markets offers you may not be the same as the market prices. The prices offered to you may depend upon a number of factors including transaction size, term of the product, Myfx Markets business relationship with you, the prevailing market rates and the differing interest rates applicable to the currency pair involved in a forward foreign exchange transaction. Myfx Markets commission on Pro Accounts pays for Myfx Markets clearing and aggregation costs, together with Myfx Markets cost of providing the service to you. Our standard costs are $3.50 per lot traded ($7.00 round trip) AUD equivalent in your funding currency, rounded to the nearest 50 cents. (c) Swaps Charges and Swap Benefits, and Rollover Charges and Rollover Benefits When you hold a Position or Positions overnight in a Margin FX Contract or CFD (other than an Excepted Contract) they will be rolled to the next Business Day which will result in you paying a Swap Charge or receiving a Swap Benefit. The amount is determined by Myfx Markets and depends on factors including Myfx Markets Swap Rate, being the rates at which you receive or pay interest on Positions that remain open overnight. This is a varying rate dependent upon the applicable rate in the interbank markets for the currencies or Bullion, with the duration of Myfx Markets discretion. No Swap Charge or Swap Benefit is paid or received in the case of Excepted Contracts; but there will be a Rollover Charge or Rollover Benefit If you are long on a Margin FX Contract you may either receive a Swap Benefit or pay a Swap Charge, depending on the currency you are long, and if you are short on a Margin FX Contract you may either pay a Swap Charge or receive a Swap Benefit, depending on the currency you are short on. Long Margin FX Contracts 18