LAST UPDATED 11 JUNE 2025

Risk Disclosure

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Risk Disclosure

Contents

1. General Risks................................................................................................................................................................................................3

2. CFD trading risks.........................................................................................................................................................................................5

3. Cryptocurrency trading risks................................................................................................................................................................. 6

4. Options trading risks.................................................................................................................................................................................6

5. Operational risks.........................................................................................................................................................................................6

Risk Disclosure

Terms and Conditions

Last updated 11 JUNE 2025

Risk Disclosure

This document provides you with information about the risks associated with investment products, in which you

may invest, through services provided to you by BABA Group entities.

BABA Option provides a wide range of investment services in relation to a number of products through its entities:

•BABA INVESTMENT(SEYCHELLES) LTD., authorised and regulated by Financial Services Authority

Seychelles

•BABA INVESTMENT (SVG) LTD, incorporated in Saint Vincent and Grenadines

The terms “we”, “us”, and “our” refer to BABA Option. We provide services that allow you to trade certain financial

instruments (the “Services”).

Please note that it is not possible for a risk disclosure document to contain all risks and aspects involved in

trading, and this document is not intended to be exhaustive. You should consider the risks set out in this document

at a minimum and, if you choose to enter into a trading relationship with us, remain aware of the risks involved.

1. General Risks

1.1.You may lose all the money you invest. Therefore, you should not trade or invest money that you cannot

afford to lose. The services offered by us are only suitable for you if you can afford to bear these losses

and if you understand the risks involved in these trades.

1.2.The returns and losses you experience will vary depending on many factors, including market behaviour,

market movement, and your trade size. Markets may be volatile andunpredictable, which means that

prices can change rapidly.

1.3.Our services are provided on an execution-only basis, which means we do not give you financial advice

on the merits of a transaction or any other investment advice.

1.4.We may provide information on our Website, emails, or other platforms such as social media. The only

purpose of this information is to help you and other traders to make independent investment decisions.

This information does not consider your personal circumstances and objectives. It should not be

regarded as a personal recommendation or as research. We recommend you do your own research

before making any trading decisions.

1.5.We do not give any representation or warranty as to the accuracy or completeness of the information

that we provide on our Website, emails, or other platforms such as social media. Information given may

be accurate and correct atthe time of publication, but changes in circumstances after the time of

Risk Disclosure

Terms and Conditions

Last updated 11 JUNE 2025

publication may impact the accuracy of the information. Performance figures quoted may refer to the

past, and past performance is not a guarantee of future performance or a reliable guide to future

performance.

1.6.Trading conditions, products, and platforms may differ depending on your country of residence.

1.7.The decision to open an account and use our products and services is entirely yours. It is important that

you have adequate investment resources to bear such risks and monitor your positions carefully. You

should make careful, considered, and independent decisions, both upon setting up an account and while

using our online services.

1.8.When you trade, you are exposed to the performance of an underlying or reference instrument or asset

(which may include foreign exchange, indices, and commodities), each of which has its own features

and risks. You should make sure you understand these risks before trading with us.

1.9.International currency or commodity prices are highly volatile and difficult to predict. Therefore, no trade

purchased in our system can be considered a safe trade, irrespective of whether the payout exceeds the

initial capital amount or not.

1.10.Trading our products does not give you any right to the underlying instrument of the transaction. Our

products represent a notional value only.

1.11.You should be aware that all trades through us are made on over-the-counter (OTC) markets. This means

that the trades we offer do not take place under the rules of any recognised, designated, or regulated

exchange. As aresult, engaging in these trades may expose you to substantially greater risks than the

investments that are traded under such rules.

1.12.We are both the manufacturer and distributor of its products.

1.13.Please note that prices in the market can change very quickly, so the execution price may not necessarily

be instantly visible once your order has been filled.

1.14.The value of your investments may go down as well as up.

1.15.It is your responsibility to monitor all of your positions closely and make sure that your exposure matches

your risk appetite. We have no responsibility to notify you of any instances where your positions are

closed due to the unavailability of funds (for example, because you do not have sufficient margin in your

trading account to maintain an open position). During the period that you have any open contracts, you

should ensure that you have the ability to access any accounts you hold with us.

1.16.We may have access to information not available to you, acquired trading positions at prices not

available to you, and interests different from your interests. We are not under anyobligation to provide

Risk Disclosure

Terms and Conditions

Last updated 11 JUNE 2025

you with any information in our possession or interfere in your trading or trading decisions in any way.

1.17.You are responsible for managing your tax and legal affairs, including making any required regulatory

filings and/or payments and complying with any applicable laws and regulations. We do not provide any

regulatory, tax, or legal advice. If you are in any doubt about the tax treatment or liabilities of theproducts

available on our Website, please seek independent advice.

1.18.If you are uncertain about how any of our products work or the relevant risks, we recommend you seek

independent advice prior to opening an accountwith us. You should not commence trading until you

understand the risks involved.

2. CFD trading risks

2.1.CFDs are complex financial instruments with a high risk of losing money rapidly due to leverage.

Significant losses may be generated over a short period of time. You should not risk more than you are

prepared to lose.

2.2.The prices of the underlying instrument that a CFD trade refers to may fluctuate rapidly and over wide

ranges, even dropping to zero in the case of cryptocurrencies. These fluctuationsmay be caused by

unforeseeable events or changes in conditions that neither you nor we can control. You maylose the

entire sum that you have invested, and in some cases, your loss may even exceed the sums you have

invested and/or deposited with us.

2.3.Margin is inversely proportional to leverage, which means if you choose a lower leverage, your required

margin will increase. When you invest in a leveraged product, your returns can be multiple times higher

than the margin, but your losses can also be multiple times higher, and you need to be aware of the risk.

2.4.The system fills orders on a first-in, first-out basis, i.e. based on the sequence of the orders received.

The sequence in which orders are filled is beyond our control. As a result, you may find it difficult or

impossible to close a position at the intended price stipulated in your stop order during certain market

conditions. In highly volatile trading conditions, a stop order will not necessarily limit your losses to the

amounts you intended because market conditions may make it impossible to executesuch orders.

Therefore, your exit price is not certain. In short, a stop order is not a guarantee because it cannot operate

in all market circumstances. Nevertheless, stop orders are a useful risk management tool.

2.5.While we try to close out your open positions if and when the margin level for your real account reaches

or falls below the stop out level, we do not guarantee that your open positions will be closed in such

circumstances. To keep the trade open, you may need to deposit additional funds so as to retain

sufficient margin for executing the trade.

Risk Disclosure

Terms and Conditions

Last updated 11 JUNE 2025

2.6.Most CFDs have no set maturity date. A CFD position matures on the date you choose to close an

existing open position. CFDs are typically regarded as unsuitable for long-term investments. If you hold

a CFD open over a long period of time, the associated costs increase.

3. Cryptocurrency trading risks

3.1.You should be aware of allthe risks associated with cryptocurrency trading and seek advice from an

independent financial advisor and/or legal advisor if you have any doubts.

3.2.If cryptocurrency exchanges and wallet providers get hacked or become insolvent and as a result, you

lose your cryptocurrencies, there is no guarantee that they, or any funds youmay have invested, will be

returned to you. It is your responsibility to store your cryptocurrencies securely. We will not accept any

liability for any loss or damage that arises, directly or indirectly, from the theft of your cryptocurrency or

the insolvency of any exchanges and wallet providers that you use.

3.3.Cryptocurrency-related transactions that occur on the blockchain might take place without the

supervision and regulation of financial institutions and government agencies. This means that banks,

payment service providers, or regulators cannot assist you inthe event of any fraud, mistake, or other

events leading to a loss in any cryptocurrency-related transactions.

3.4.It is your responsibility to check what rulesand protections apply in your relevant jurisdiction before

investing and/or trading in virtual currency and/or trading on CFDs relating to virtual currency.

4. Options trading risks

The prices of the underlying instrument that options and multipliers trades refer to may fluctuate rapidly

and over wide ranges. These fluctuations may be caused by unforeseeable events or changes in

conditions that neither you nor we can control. You may lose the entire sum that you have invested.

5. Operational risks

5.1.Using an internet-based system always involves risks, such as hardware, software, and internet

connection failure. We donot control signal power, its reception or routing via the internet, the

configuration of your equipment, or the reliability of its connection, and we shall not be held responsible

for any communication failures, distortions, or delays when using our online services.

5.2.In particular, you bear the following risks and agree that we are not liable for:

Risk Disclosure

Terms and Conditions

Last updated 11 JUNE 2025

5.2.1. Hardware, software, or power failures on your devices;

5.2.2.Incorrect settings on your devices;

5.2.3.Malfunction of your devices; or

5.2.4. Low quality or failures of communication channels used to link you and your communication

provider.

5.3.You accept the risk of loss arising from unauthorised access to your account by a third party.

5.4.We bear no responsibility for any loss that arises as a result of communications that are sent to you by

us and not received (in a timely manner or at all).

5.5.We bear no responsibility for any losses if unencrypted information you send to us is accessed by

unauthorised individuals.

5.6.In case of a force majeure event, you understand there is a risk of loss, and we will not be responsible

for any such losses.