Risk Warning Statement,
associated with participation in the W.E.T.E.R. and
GOROD L.E.S. Projects
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.
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.
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.
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.
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.
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.
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
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.
In terms of economic consequences for the Buyer, the following risks are
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).
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).
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.
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).
Risk of not achieving the investment objectives - the possibility of financial losses
arising from the Buyer's failure to achieve its investment objectives.
By factors, the following risks are possible:
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:
Price risk - the risk that the Buyer will incur financial losses due to adverse changes in
the price of the Shares.
Currency risk is the risk that the Buyer will incur financial losses due to unfavourable
changes in currency exchange rates.
Inflation risk is the risk that the Buyer will incur financial losses due to inflation.
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.
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.
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
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.
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.
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
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.