What are the risks associated with FX services?

Below are the material risks involved in FX services:
Foreign Exchange Risk: Foreign exchange markets are subject to unpredictable fluctuations and may be affected by complex political and economic risks.  Therefore, if you (i) convert Hong Kong dollars to any other Specified Currencies and (ii) convert any other Specified Currencies to Hong Kong dollars in any FX Transactions, such FX Transactions will be subject to risk arising from exchange rates fluctuation.  As a result, you may suffer losses.
Counterparty Risk: We enter into FX Transactions under the FX Terms on a principal-to-principal basis and you are therefore subject to the risk that we fail to perform our obligations under the FX Terms. 

For details, you can refer to the Wealth Management Service Terms and Risk Disclosures.

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