Risk Disclosure for Trading U.S. Unallocated Gold with Interactive Brokers LLC Important Information Regarding Trading U.S. Unallocated Gold

Interactive Brokers LLC ("IBKR") offers customers the ability to invest in U.S. unallocated spot gold ("US Gold"). Investing in US Gold involves risk. You should carefully consider the risks below before making an investment decision.
Trading Of US Gold is Risky. Purchasing US Gold exposes you to the risk that the price of spot gold will fall. Gold prices can rise or fall dramatically. If you hold a position in US Gold and the value of gold falls, you can lose money. You must carefully consider your financial circumstances and your risk tolerance before trading US Gold, and you should not trade US Gold unless you have the financial capability to sustain losses if they occur.

No Investment Advice, Recommendations, Or Tax Advice. IBKR does not provide investment, tax, or trading advice. Our service is "execution only", and we will only act on your instructions and not advise you on any transaction, nor will we monitor your trading decisions to determine if they are appropriate for your or to help you avoid losses. You should obtain your own financial, legal, taxation, and other professional advice as to whether US Gold is an appropriate investment for you. By making US Gold available to you, IBKR does not guarantee the appropriateness or suitability of US Gold for your financial circumstances.

US Gold Is Not Traded On A Regulated Exchange And Is Not Cleared With A Central Clearinghouse. US Gold transactions are transactions with IBKR as your counterparty, and are not traded on a regulated exchange and are not cleared on a central clearinghouse. Thus, exchange and clearinghouse rules and protections do not apply to trading US Gold with IBKR.

US Gold Holdings Are Not Covered By SIPC. Your holdings in US Gold are not covered by SIPC in the event of IBKR's insolvency.

Not SEC or CFTC Regulated Investments. The Securities Exchange Commission ("SEC") and the Commodities Futures Trading Commission ("CFTC") regulate certain investment products in the United States. US Gold transactions constitute "spot" transactions in gold under the Commodities Exchange Act and are not subject to regulation by either the SEC or CFTC.

Physical Delivery Of Precious Metals From IBKR's Precious Metals Custodian Is At Your Expense And Risk. IBKR generally will allow you to convert unallocated US Gold to allocated gold bullion, and take physical possession of such allocated gold bullion, according to the terms of the Client Agreement Supplement governing the US Gold program. Physical delivery of US Gold may require minimum delivery quantities and may involve additional charges. IBKR may employee an agent to make delivery of such bullion to your specified address.

The Gold Market is Speculative And Volatile. The market for gold can be highly volatile. The price of gold will be influenced by, among other things, the performance of the economy as a whole; the changing supply and demand relationships for gold; governmental, commercial and trade programs and policies; interest rates; inflation; national and international political and economic events; and the prevailing psychological characteristics of the relevant marketplace.

US Gold Will Have No Margin Value In Your Account. US Gold in your account will not be assigned any margin value for purposes of determining your Account's compliance with either securities or commodities margin requirements. This may expose your account to the risk of liquidation if you have insufficient equity in your account (apart from the value of your US Gold holdings), to meet your margin requirements.

US Gold Carries Liquidity Risk. IBKR is not obligated to provide quotes for US Gold at any time, and IBKR does not guarantee the continuous availability of quotations or trading for US Gold. IBKR may in its sole discretion cease quoting US Gold and/or cease entering new US Gold transactions at any time.

You Will Pay Commissions, Spreads, And Storage Costs Among Other Costs Of Trading US Gold. IBKR will charge commissions on your US Gold trades. In addition, you will pay a spread on your US Gold transactions, meaning that the price you pay to buy US Gold generally will be some amount higher than the theoretical market value of the US Gold and the price you receive when you sell US Gold generally will be some amount lower than the theoretical market value of the US Gold. You will pay storage costs to IBKR to cover the cost of storing the gold backing your US Gold holdings. All of these costs will lower the total return (or increase the loss) on your investment in US Gold. For more details on the fees associated with IBKR's US Gold program, please see our website at https://www.interactivebrokers.com/en/index.php?f=1590&p=metals.

IBKR Has the Right to Correct Trade Errors. IBKR can cancel, adjust or close out US Gold transactions after confirmation to you to correct errors, including but not limited to technical errors in IBKR's platform and US Gold transactions not reasonably related to the correct market price.

You Are Not Permitted To Short Precious Metals. IBKR does not permit its Clients to perform short sales of US Gold. The inability to open short US Gold positions may negatively impact your ability to protect against trading losses.

Risk Of Disruption Or Interruption Of Access To IBKR's Electronic Systems And Services. IBKR relies on computer software, hardware and telecommunications infrastructure and networking to provide its services to Clients, and without these systems IBKR cannot provide the services. These computer-based systems and services such as those used by IBKR are inherently vulnerable to disruption, delay or failure, which may cause you to lose access to the IBKR trading platform or may cause IBKR not to be able to provide Precious Metal quotations or trading, or may negatively affect any or all aspects of IBKR's services. Under the IBKR Client Agreement, you accept the IBKR systems and services "As-ls" and our liability to you is limited.
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