Risk Warning Statement,
associated with participation in the W.E.T.E.R. and GOROD L.E.S. Projects

  1. General information
    1. The purpose of this Statement is to provide the Buyer with information about the risks associated with the Buyer's purchase of shares in the W.E.T.E.R. and GOROD L.E.S. projects (hereinafter referred to as the “Shares”) under the Purchase and Sale Agreement (hereinafter referred to as the Agreement), and a warning about possible losses when investing in the W.E.T.E.R. and GOROD L.E.S. Projects.
    2. Risks in this Statement are understood to mean the possibility of Buyer's financial losses (in the form of real damage and/or lost profit) incurred by the Buyer directly or indirectly to the Buyer's purchase of Shares.
    3. The Buyer is aware that investing in Shares entails certain risks for which the Seller or the W.E.T.E.R. projects cannot be held liable. GOROD L.E.S. as the ability to foresee and prevent the consequences of such risks is limited. Therefore, the Buyer shall independently evaluate the possibility of making its investment and the Seller shall use its best efforts to help the Buyer reduce the possible risks when the latter invests in W.E.T.E.R. and GOROD L.E.S. Projects by purchasing the Shares under the Agreement.
    4. The reason for this is that the Seller does not provide any guarantee that the preservation and increase of capital that the Buyer wants to achieve will be achieved. The Buyer may lose part or all of the capital invested in the Shares.
    5. The Buyer is fully aware of the risks within the meaning of this clause, independently selects the package (quantity) of Shares to be purchased that best suits its investment objectives and goals, and is solely responsible for its choice.
    6. The Seller shall not be liable for any losses incurred by the Buyer due to ignorance of the instructions set forth in the User Agreement.
    7. The Buyer assumes the risk of executing unplanned transactions in the Cabinet in case of repeated sending of the order until the result of processing of the previous order is received. The Buyer shall be obliged to keep the passwords and make sure that third parties do not gain access to the Cabinet. The Buyer shall be bound by the Seller for the transactions and operations carried out in the Cabinet, even if it has been illegally used by a third party.
    8. Conclusion of the Contract in accordance with the procedure set out in the Contract means that the Buyer has read and understood this Statement and the Buyer is aware of the real risks when making investment decisions.
  2. In terms of economic consequences for the Buyer, the following risks are possible:
    1. Risk of loss of expected income - possibility of occurrence of an event that entails a partial or full loss of expected income from the Shares (lost profit).
    2. Risk of loss of invested funds - a possibility of occurrence of an event which entails a partial or total loss of invested funds (cash and/or Shares).
    3. Risk of loss in excess of invested funds - possibility of occurrence of an event that entails not only a complete loss of expected income and invested funds, but also losses in excess of invested funds.
    4. Liquidity risk - the possibility of financial losses on the sale of Shares due to changes in their quality assessment (Shares may not be demanded by the market in the necessary volume and within a reasonably necessary time without a loss in price and/or their valuation may be difficult).
    5. Risk of not achieving the investment objectives - the possibility of financial losses arising from the Buyer's failure to achieve its investment objectives.
  3. By factors, the following risks are possible:
    1. Economic risk is the risk of occurrence of unfavourable events of economic nature for the Buyer. Among such risks it is necessary to allocate the following:
      1. Price risk - the risk that the Buyer will incur financial losses due to adverse changes in the price of the Shares.
      2. Currency risk is the risk that the Buyer will incur financial losses due to unfavourable changes in currency exchange rates.
      3. Inflation risk is the risk that the Buyer will incur financial losses due to inflation.
      4. Liquidity risk is the risk that the Buyer will incur financial losses due to difficulties in selling the Shares at a certain point in time.
      5. Risk of charging fees and other charges - the possibility of financial losses on the part of the Buyer associated with the Buyer's complete or partial lack of awareness of the costs associated with transactions in the Shares. Prior to commencing any transactions, the Buyer should take all necessary measures to obtain a clear understanding of all fees or other charges to be levied on the Buyer. The amount of such fees may be deducted from the price for the Shares or otherwise increase the Buyer's expenses.
    2. Legal risk is the risk that the Buyer will incur financial losses due to the entry into force of new or amended legal and regulatory acts. The legal risk also includes the possibility of financial losses incurred by the Buyer due to the absence or ambiguity of the legal and regulatory acts directly or indirectly regulating the activities on the securities market.
    3. Tax risk is the risk of financial losses on the part of the Buyer related to the use of the current tax law, changes in the existing procedure of taxation of transactions on the securities market. The position of the tax authorities on certain issues may undergo significant changes, which, in turn, increases the probability of adverse consequences for the Buyer investing in the Shares.
    4. Socio-political risk - the risk of incurring financial losses by the Buyer related to changes in the political and economic course, the risk of political instability, social instability, including the risk of strikes, the risk of the outbreak of hostilities, etc. The most radical changes may lead to a refusal or postponement of the Seller's obligations under the Shares, to the restriction of certain (for example, foreign) investments, and possibly to the confiscation or nationalization of the property of certain categories of Buyers.
    5. Criminal risk - the risk of the Buyer suffering financial losses due to unlawful actions of third parties, including the risk of fraudulent actions in relation to the assets of the Buyer (for example, write-off of funds or Shares of the Buyer on the basis of forged documents, unauthorized access by the Buyer to its personal account on the Site (hereinafter - the "Account"), etc.).
    6. Operational risk (technical, technological, personnel risks) - the risk of direct or indirect financial losses incurred by the Buyer due to failures in information, electrical and other systems, including life support systems, remote access systems, software, telecommunications equipment, and other technical problems; due to errors related to imperfections in the market infrastructure, including technologies of operations, management, accounting and control procedures.