Risk warning notice

This notice is to inform the clients of "InstaVector" Investment Company Ltd. about the losses related to the execution of the deals on the stock market.

The notice is not intended to prevent the clients from conducting operations on the stock market. Its objective is the clarification of the general risks which a client should consider while developing his investment strategy.

We point to the fact that materialization of risks can lead to the loss of the entire capital.

If you lack stock trading experience, you are advised to take a course on fundamental principles of the stock market and practise trading on the stock exchange first..

The basic risks, the aversion of which cannot be guaranteed by "InstaVector" Investment Company Ltd., are:

- system risks: political risk, deregulation risk, macroeconomic risk, and force majeure risks;

- technical risks: errors of staff of other professional stock market participants (stock exchanges, securities depository, etc.), serving our clients, as well as software malfunctioning and errors of bank settlement systems;

- price risk: unexpected depreciation of the purchased securities or increase of the borrowed securities value;

- interest rate risk: change of the key policy rate (interest rate of the Bank of Russia) can lead to undesired revision of the rates on margin trading, general downswing or upsurge in securities value;

- liquidity risk: difficulties in selling securities at a favorable price; this aspect is the most topical in the process of trading securities do not belong to the categories of blue chips or state papers;

- issuer bankruptcy risk: financial insolvency of legal entity, the issuer, causes the securities to decline both in value and liquidity;

- legal risk: violation of investors rights, protected by law, by third parties including the issuer, recorder or others involved in the stock market infrastructure;

- risk of investor's inaccuracies that maay occur when operating on the stock market without necessary level of knowledge and experience.