In this section are presented all the risks connected with investment instruments.

Risks related to the operations in the security market.

The Bank informs the customer that any investment in securities is risky by its nature. Operating in securities market the investor takes the following risks:

• Risk of price changes of financial instruments. Changes of market prices of securities are not under the Bank’s control. Therefore, in case of investment in securities, the customers have risks of decrease of portfolio’s value. These can even cause the loss of the entire portfolio (marginal transactions possible losses may exceed the original amount invested by the customer).
• Liquidity reduction risk: This risk is related to the decrease of interest in the instrument among other market participants. The liquidity of the financial instrument depends on corporate actions of underwriters, their financial activities, conditions of the market in general, internal rules of stock exchange and trade platform. These can negatively affect the price of a financial instrument, hence the value of the client's portfolio as well.
• Legislation change risk: This risk is linked to the state authorities and other regulatory bodies of the markets, which can result the losses of the customer.
• Infrastructure risk: This risk is linked to the work of depositories, stock exchanges as well as clearing-settlement organizations. The activity failures of such organizations can cause losses of customer’s assets (like cash and securities).
• Risks concerning the use of electronic trade platforms: These risks are related to hardware, software malfunction occurrence, power supply, problems with internet providers, connection failures etc., which can cause losses of customer’s assets.
• Other risks: The list of above mentioned risks is not full. Investment activities can be accompanied by other risks.

Risks associated with electronic information exchange

The customer is informed about the risks related to the investment activities, connected with electronic nature of the provided services, such as, for example, the lack of reliable communication, possibility of electricity separation, disruption of the software, etc. The bank is not responsible for the activities of third parties, which are resulting the interruption of electronic trade platforms.