The risk of loss in trading commodity futures contracts can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. You may sustain a total loss of the initial margin funds and any additional funds that you deposit with your broker to establish or maintain a position in the commodity futures market.

Foreign Market Risk

Trading on non-US exchanges is not regulated by any US Government agency and may involve certain risks no applicable to trading on US Exchanges. You may be required to maintain deposits in foreign currency to satisfy margin rates set by foreign exchanges. In this circumstance your capital is at risk both to market movement and the movement of the non-US Dollar currency.

Market Volatility

Commodity prices are highly volatile. Price movements for commodities and futures are influenced by, among other things, changing supply and demand relationships; weather; agricultural, trade, fiscal, monetary, and exchange control programs and policies of governments; United States and foreign political and economic events and policies; changes in national and international interest rates and rates of inflation; currency devaluations and revaluations; and emotions of the marketplace. None of these factors can be controlled by Chadwick and no assurance can be given that Chadwick’s advice will result in profitable trades for a participating client or that a client will not incur losses.

Price Limits and Liquidity

Most United States commodity exchanges limit fluctuations in certain commodity markets during a single day by means of a daily price limit. During a single trading day, no trades may be executed at prices beyond the daily limit. Once the price of a futures contract has increased or decreased to the limit point, positions cannot be taken or liquidated above or below the limit price. Price limits may affect Chadwick’s ability to execute orders in the Client’s account for one day or for several days. For instance a market may exceed a daily price limit making it impossible for Chadwick to liquidate a losing position for several days.

We recommend that before you start trading to "Get the Facts" from the CFTC or visit the National Futures Association web site for additional information.