RISK NOTIFICATION FORM FOR PURCHASE AND SALES

RISK NOTIFICATION FORM FOR PURCHASE AND SALES TRANSACTIONS ABROAD AND FOREIGN
OVER-THE-COUNTER DERIVATIVES TRANSACTIONS
IMPORTANT REMARK:
You may either obtain profit or incur a loss as a result of purchase and sales transactions of over the
counter derivatives to be performed abroad. For this reason, you are required to understand the risks
that you may encounter with and make a decision in consideration of your financial position and
limitations before deciding to perform a transaction.
For this purpose, you are supposed to understand the following issues set forth in this Risk Notification
Form as stipulated in Article 25 of the III-39.1 numbered Notification on “The Foundation and Activity
Principles for Investment Institutions.
WARNING:
Please verify before performing any transaction if the investment authority you intend to work with
holds an authorization letter for the transactions you want to carry out. You can review authorized
banks and capital market intermediary firms in terms of intermediation to such transactions through
www.spk.gov.tr or www.tspb.org.tr websites.
DEFINITIONS:
Investment Authority: The institution which has obtained an Authorization Letter from the CMB for
these transactions and with whom the Customer signing this risk notification form shall conclude the
Framework Agreement,
Market: The markets where foreign products are traded,
Transactions for Over-the-Counter Derivatives: The purchase and sales transaction of economical and
financial indicators traded at an organized market, capital market instruments, goods, precious metals
and foreign currency at the over the counter market on a certain leverage rate based on their prices
at the trading market,
Initial Margin: The amount required to be deposited in the specified form and under the specified
conditions while a position is being taken,
Margin Call: Margin is the minimum amount required to be presented in your account to open a
position. It means the margin call to be made when net asset of your account drops below your security
used,
Stop-Out: The position level where the intermediary firm may unilaterally close current position of the
Customer by way of reverse transaction when the rate of total margin to the total position size reaches
to the designated figure.
RISK NOTIFICATION:
ATIG Yatırım acts on its behalf and for the account of the Customer signing this Risk Notification Form
at foreign over the counter markets and it is highly important for you to understand the following in
addition to the considerations set forth in the Framework Agreement to be executed with the
intermediary firm for the foreign transactions of over the counter derivatives.
1. The provisions of all legislations and such other administrative regulations issued by the Capital
Market Board, exchanges and clearing houses shall apply for the account you will open before the
authorized institution and all transactions to be performed thereof;
2. The transactions for over the counter derivatives are subjected to risks at various rates. You may
lose all money deposited into the investment authority as a result of price movements at the
market;
3. Transacting with a low equity for credited transactions may work either to your advantage or
disadvantage due to the leverage effect and it should always be noted that the leverage effect may
provide high yields for you or lead to losses. You may lose all money deposited in the authorized
institution as a result of reverse price movements. Please do not rely on high yield promises;
4. You should note that the information and recommendations to be given to you by the intermediary
firm on the any transactions to be performed abroad for over the counter derivatives may be
incomplete or need verification;
5. The technical and basic analyses to be performed by the authorized personnel of the authorized
institution with respect to the foreign transactions of derivatives may vary from person to person
and the estimations stipulated in such analyses may not necessarily take place;
6. It should be noted that an exchange risk appears for the transactions performed in a foreign
currency for over the counter derivatives in addition to the abovementioned risks; Turkish Lira may
impair due to exchange rate fluctuations; governments may restrict foreign capital and purchasesales practices and introduce additional and/or new taxes and purchase-sales transactions may
not be performed in a timely manner;
7. You should receive a confirmation from the authorized institution before starting your transactions
in terms of all commissions and costs to be borne by you (as stated in relevant articles of the
Framework Agreement). If the costs are not expressed monetarily (except a certain percentage of
the agreement price), you should request clear examples about how the costs shall be charged to
you monetarily;
8. You can access to all taxation principles with respect to all tax amounts or rates concerning the
transactions through the address of www.atig.com.tr;
9. You are required to deposit a minimum initial margin at the amount designated by the
intermediary firm for each over the counter derivatives to be subjected to purchase-sales
transactions from your account that shall be opened before the intermediary firm where the
margin shall be deposited to take a position for the foreign transactions of over the counter
derivatives;
10. It is possible for the information processing infrastructure to expose to different risks resulting
from some probable problems within the scope of the transactions intended for over the counter
derivatives on the electronic transaction platform;
11. It should be known that the products subjected to foreign transactions of over the counter
derivatives do not have a secondary market;
12. The details for the risk profile of the products subjected to foreign transactions of over the counter
derivatives including the counter party risk, liquidity risk and market risk:
 The possibility for the order requested to be conveyed to the market through the intermediary
firm including the “conditional orders” which allows to limit the risk and “strategy orders” not
to be performed under the market conditions where market makers place quotations from the
widest band should be noted if the market making is observed in the system at such an
environment where the market is constricted, liquidity is pretty low and maximum price
movement appears;
 You should be aware of the fact that authorized institutions may not guarantee that you will
not incur any loss as a result of derivatives transactions or that your loss will be kept under
control or a collateral margin call will be made if you incur any loss;
 Taking a “spread” (difference and spread) position in a futures contract normally involves less
risk. However, the spread position may not always be less risky than taking directly a long or
short position at the futures market;
 The price movements at the market may constitute margin deficiency in your account when
they develop to the disadvantage of your position. The intermediary firm may not accept
passive order entries or discharge your position in this case.
 Any over the counter derivatives transaction may be impossible to be discharged even if it
contains stop loss order over the initial transaction price or any other price due to the fact that
foreign transactions of over the counter derivatives are structured according to personal needs
and the agreements contain some restrictions about transaction finalization or assignment to
another party.
 Besides the yield to be earned as a result of over the counter derivatives transactions, the
amount of any possible loss may be quite high. Additionally, the parties may incur losses at
such amounts that are not monetarily expressed at the beginning of the transaction. For
instance it is required to take into consideration many different risk factors like the nonpayment of the principal as a result of authorization cancellation pursuant to the legislation
applicable to the parties within the scope of an over the counter derivatives transaction
structured with a principal protection.
 It is possible to perform over the counter derivative transactions with a low amount of equity.
Besides, when the leverage rates of the over the counter derivatives are taken into account,
even the margins collected under certain conditions (negative market developments,
incapacity of the counter party etc.) may not be sufficient to afford required amount for the
finalization of the transaction.
13. The products subjected to foreign transactions of over the counter derivatives do not have a
marker maker and exporter.
14. It should be known that the investment authority may take a position as a counter party against
the customer with respect to the foreign over the counter derivatives transactions and any
damages incurred by the customer may result in the profit earning by the investment authority
due to the nature of the service of product offered in such a case;
15. Information on the structuring and pricing of foreign over the counter derivatives and the counter
party:
 The transactions of over the counter derivatives take place on the basis of mutual bargaining
in accordance with the needs of the parties thereof. For this reason, it is required to assess
whether the counter party is able to perform its obligation resulting from the transaction prior
to its performance. Some agreements may be concluded within the scope of over the counter
market for the offset and swap of transactions. However, the existence of these kinds of
agreements does not provide any guarantee or protection with the parties during the
transaction finalization stage.
 Financial institutions may act as a market maker and bring the parties together; intermediate
to the transaction by way of finding a counter party who will meet the need of any customer
or close a transaction performed with a customer on a mutual basis for their own portfolio by
means of taking a reverse position to the another counter party or customer in terms of their
own portfolio for over the counter derivatives transactions. It is required to accept that these
transactions performed with the financial institutions that can be characterized as a market
maker are performed with third parties.
 It is possible that the transactions of over the counter derivatives may involve some special
risk factors which are impossible to be initially identified as they are structured to respond to
certain and different needs of the parties and the parties of the transaction have different
characteristics (field of activity, financial structure etc.). It is recommended for the parties to
receive professional support in terms of the compliance of the agreements to be concluded
for over the counter derivatives to be traded with their specific needs; the risk factors they
involve, the applicability of legal sanctions etc.
 Any over the counter derivatives transaction may be impossible to be discharged even if it
contains stop loss order over the initial transaction price or any other price due to the fact that
foreign transactions of over the counter derivatives are structured according to personal needs
and the agreements contain some restrictions about transaction finalization or assignment to
another party.
16. Risk monitoring for the foreign transactions of over the counter derivatives:
 Initial margin is the minimum amount requested to be presented in the accounts of the
customers of our institution prior to starting any transaction for each product concerning the
transactions to be carried out.
 ATIG Yatırım stops out the positions of customers whose margin rate reaches to the stop-out
level b way of reverse transaction.
 Customer based risk/margin status monitoring is performed by the Investment Authority on a
daily basis according to the positions maintained/taken by customers through the platform we
have been using. Customers are ensured to instantly monitor the account status, profit-loss
status, cash status and instant margin status through such platform in terms of the risks that
may appear.
 Customer margins to be deposited for the sake of transactions are monitored in the accounts
to be opened on behalf of the customer before the Settlement and Custody Bank separately
from the assets of our institution.
17. Customer rights for the foreign transactions:
 Our institution opens a BLOBAL (omnibus) account before the contracted foreign institution
for the performance of foreign transactions of over the counter derivatives and assigns a
transaction limit (line) and ensures that customers perform their transactions through such
account. In this way, no customer margin is required to be sent abroad and no risk of counter
country and institution is undertaken on behalf of customers. The transaction margins



deposited in the contracted foreign institution are afforded from the resources of our
institution.
Our customers shall make use of MT4 platform in order to perform foreign over the counter
derivatives transactions.
The customer margin required to be deposited for these transactions are monitored in the
accounts to be opened before the Settlement and Custody Bank on behalf of the customer
independently from the assets of our institution.
The profits and losses resulting from daily transactions and positions of customers are
deposited into or withdrawn from the accounts opened in their behalf before the Settlement
and Custody Bank.
This Risk Notification Form for Purchase and Sales Transactions Abroad and Foreign Over-theCounter Derivatives Transactions” aims at informing the investor about existing risks in a general
sense and it may not cover all the risks caused by the purchase-sales transactions abroad, foreign over
the counter derivatives transactions and application. For this reason, you should carefully make a
research before directing your dispositions to such kind of investments.
I hereby declare and accept that I read and understood all considerations above. I signed this “Risk
Notification Form for Purchase and Sales Transactions Abroad and Foreign Over-the-Counter
Derivatives Transactions” at my free will without prejudice to my rights of indemnity and action that
may arise from any omission or fault of my intermediary firm during the implementation of these
principles and then I executed the Agreement and received a copy of the Form.”
I read and understood.
Signature