Full Risk Disclosure

1. Futures & Forex Risk Disclosure

The following statement is furnished pursuant to Commodity Futures Trading Commission (“CFTC”) Regulation 1.55(c). This brief statement does not disclose all of the risks and other significant aspects of trading in futures, forex, and options. In light of the risks, you should undertake such transactions only if you understand the nature of the contracts (and contractual relationships) into which you are entering and the extent of your exposure to risk. Trading in futures, forex, and options is not suitable for many members of the public. You should carefully consider whether trading is appropriate for you in light of your experience, objectives, financial resources, and other relevant circumstances.

The risk of loss in trading commodity futures contracts and foreign currency can be substantial. You should, therefore, carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should be aware of the following points:

• Total Capital Loss: You may sustain a total loss of the funds that you deposit with your broker to establish or maintain a position in the commodity futures market or foreign exchange market, and you may incur losses beyond these amounts.
• Margin Calls & Liquidation: If the market moves against your position, you may be called upon by your broker to deposit a substantial amount of additional margin funds, on short notice, in order to maintain your position. If you do not provide the required funds within the time required by your broker, your position may be liquidated at a loss, and you will be liable for any resulting deficit in your account.
• Bankruptcy Protections: The funds you deposit with a futures commission merchant (FCM) for trading futures and forex positions are not protected by insurance in the event of the bankruptcy or insolvency of the FCM, or in the event your funds are misappropriated.
• SIPC Limitations: The funds you deposit with an FCM for trading futures or forex positions are not protected by the Securities Investor Protection Corporation (SIPC) even if the FCM is registered with the Securities and Exchange Commission (SEC) as a broker or dealer.
• Clearing Organization Guarantees: The funds you deposit with an FCM are generally not guaranteed or insured by a derivatives clearing organization in the event of the bankruptcy or insolvency of the FCM. You should inquire of your FCM whether your funds will be insured by a derivatives clearing organization and understand the limitations of such programs.
• Commingling of Funds: The funds you deposit with an FCM are not held in a separate account for your individual benefit. FCMs commingle the funds received from customers in one or more accounts and you may be exposed to losses incurred by other customers if the FCM does not have sufficient capital to cover those losses.
• Permitted Investments: The funds you deposit with an FCM may be invested by the FCM in certain types of approved financial instruments (under CFTC Commission Regulation 1.25) including U.S. government securities, municipal securities, money market mutual funds, and certain corporate bonds. The FCM may retain the interest and earnings realized from its investment of customer funds.
• Deposits with Affiliates: FCMs are permitted to deposit customer funds with affiliated entities, such as affiliated banks, securities brokers, or foreign brokers. You should assess whether such deposits increase the risks to your funds.
• Market Liquidity & Execution: Under certain market conditions, you may find it difficult or impossible to liquidate a position. This can occur, for example, when the market reaches a daily price fluctuation limit (“limit move”).
• Spread Positions: All futures, forex, and options positions involve risk, and a “spread” position may not be less risky than an outright “long” or “short” position.
• High Leverage (Gearing): The high degree of leverage that is often obtainable in futures and forex trading because of the small margin requirements can work against you as well as for you. Leverage can lead to large losses as well as gains.
• FCM Background Check: You should be familiar with the FCM you select to entrust your funds. The CFTC requires each FCM to make publicly available on its website firm-specific disclosures and financial information. Info regarding respective partners of NinjaTrader Brokerage may be obtained at NinjaTrader Clearing, LLC, Dorman Trading, and Phillip Capital.

Foreign Market Risks

All of the points noted above apply to all futures and forex trading whether foreign or domestic. If you are contemplating trading foreign futures or options contracts, you should be aware of the following additional risks:

• Foreign Exchanges: Foreign futures transactions involve executing and clearing trades on a foreign exchange, even if it is formally "linked" to a domestic exchange. No domestic organization regulates the activities of a foreign exchange, and no domestic regulator has the power to compel enforcement of their rules.
• Protection Limitations: Customers who trade on foreign exchanges may not be afforded certain of the protections which apply to domestic transactions, including alternative dispute resolution. Funds received to margin foreign futures may not be provided the same protections as domestic margin funds.
• Currency Fluctuations: The price of any foreign futures or option contract, and therefore potential profit and loss, may be affected by fluctuations in the foreign exchange rate between the time the order is placed and the contract is liquidated or exercised.

2. Options Risk Disclosure

Because of the volatile nature of the commodities markets, the purchase and granting of commodity options involve a high degree of risk. Commodity transactions are not suitable for many members of the public. Such transactions should be entered into only by persons who have read and understood this disclosure statement and who understand the nature and extent of their rights, obligations, and the risks involved.

• Futures Contract Establishment: Both the purchaser and the grantor should know that the option, if exercised, results in the establishment of a futures contract (an “option on a futures contract”).
• Margin Systems (Stock-Style vs. Futures-Style): Under a Stock-Style system, the purchaser pays the full option price upfront and has no further obligations. Under a Futures-Style system, the purchaser deposits initial margin and may be required to deposit additional margin if the market moves unfavorably. Gains and losses are paid and collected daily.
• Loss Limitations: A person should not purchase any commodity option unless they are able to sustain a total loss of the premium and transaction costs. A person should not grant (write) any commodity option unless they are able to meet additional margin calls and sustain very large financial losses.
• Option Offset & Exercise: To realize value from a stock-style option, it must be offset or exercised. In several circumstances, it may be difficult or impossible to offset an existing option position on an exchange.
• Exercise Windows: In most cases, a commodity option may be exercised at any time from when it is granted until it expires. However, some options provide only a limited period for exercise.

Some of the Specific Risks of Option Trading

• Market Unpredictability: Specific market movements of the underlying future cannot be predicted accurately.
• Uncovered Call Writing: The grantor of a call option who does not have a long position in the underlying futures contract is subject to unlimited risk of loss if the price of the underlying asset rises significantly.
• Covered Call Writing: The grantor of a call option who has a long position in the underlying futures contract gives up all potential gains resulting from an increase in the price of the underlying futures contract above the option strike price in exchange for the premium received.
• Put Writing: The grantor of a put option who does not have a short position in the underlying futures contract is subject to severe risk of loss should the price of the underlying contract decrease below the strike price.

Description & Mechanics of Option Trading

Prior to entering any option transaction, you should thoroughly understand the underlying futures contract, procedures for exercise, expiration dates, all purchase costs (premiums, commissions, transaction fees), and rules that might suspend or restrict trading.

Option customers should clearly understand that there is no guarantee that option positions may be offset by either a closing purchase or closing sale transaction on an exchange. Under these conditions, grantors are subject to the full risk of their positions until expiration, and purchasers may have to exercise the option to realize any profit.

3. Futures on Virtual Currencies (Including Bitcoin)

Trading futures on virtual currencies, including Bitcoin, offers speculative benefits but also carries various extreme risks. While virtual currency futures are traded on regulated exchanges, they involve a high level of risk and may not be suitable for all investors. Investors considering these products must conduct rigorous due diligence.

• Due Diligence & Registration: Check the registration and NFA membership status of any soliciting firm or individual using NFA's BASIC system or by calling NFA's Information Center at 800-621-3570.
• Significant Volatility: Virtual currencies experience massive price fluctuations. Price changes between the time you place a trade and the time you attempt to liquidate it will heavily affect the value of your contract and potential profits/losses.
• Leverage Risks: Virtual currency futures contracts are traded using initial margin, enabling you to hold contracts valued far more than your initial investment. If the market moves unfavorably, this leverage can produce extreme losses exceeding your initial deposit.
• Fraud & Ponzi Schemes: Be aware of the risks of fraudulent operators seeking to capitalize on virtual currency public interest. Be extremely cautious of sales pitches promising high returns with low risk.
• Underlying Market Lack of Regulation: While the virtual currency futures contract is traded on regulated exchanges (overseen by the CFTC and NFA), the underlying virtual currency cash (spot) markets themselves are generally unregulated and can be prone to manipulation, which directly impacts the futures prices.

Last updated: 06/01/2026