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     This Risk Disclosure Statement is established in accordance with the provisions under Article 3, Paragraph 3 of the Taiwan Stock Exchange Corporation Rules Governing Trading of Beneficial Certificates.
     Leveraged and inverse exchange traded funds (hereinafter the "ETFs") are intended to track, simulate or duplicate the performance of their underlying indexes in the positive direction ("leveraged ETFs" in short) or opposite (inverse) direction ("inverse ETFs" in short). Investors may incur significantly huge profits or losses in a short time when trading in the beneficial certificates of ETFs and are advised to carefully review their own financial position and economic condition in deciding whether this type of product is suitable for them prior to opening an account. Before making a decision on transaction, the investor shall understand the potential risks arising from the investment and be informed of the following to make sure their rights and benefits are protected:

1. An investor trading in the beneficial certificates of ETFs must fully understand the positive or opposite directions and multiples between the net worth of the ETF and its underlying index. Also, the purpose of the ETF is only to track, simulate or duplicate the daily returns on the underlying index as multiples in the positive or opposite direction, rather than the accumulated returns on the index as multiples in either the positive or opposite direction for a period of time.
2. Decision-making on trading the beneficial certificates of ETFs requires careful review and consideration. Investors should fully understand the fact that ETFs may have risks from interest rates, liquidity, inflation, reinvestment, individual events, taxation, credit and market impact of the underlying investment and the securities firms do not provide any guarantee on any investment gains or protection of principal for trading of the beneficiary certificates of the ETF.
3. If the futures, derivatives or securities the ETF invests in are traded in foreign currency, in addition to profits or losses incurred from transactions, there may be exchange rate risks, and the underlying investments may directly cause losses to the investor due to changes in interest rates, exchange rates or other indexes.
4. If the products the ETF invests in are traded on a foreign exchange, the net worth of the ETF required to be disclosed by the issuer of the ETF on the website may be based on the closing price of the most current trading day of that foreign exchange due to the time difference.
5. If the products the ETF invests in are mainly domestic or foreign futures, derivatives or securities, these products may cause a positive/negative price difference between the trading price and the underlying index (e.g. trading price of the future may be higher or lower than the underlying index) due to liquidity, cash dividends, investors' expectations, interest rates, exchange rates and inflation, which may further affect the net asset worth of the ETF.
6. If the underlying index of the ETF is a foreign index or includes one or more foreign securities, there are no specific restrictions on the price fluctuations of the beneficial certificates of the ETF. If, however, the underlying index is a domestic index, the price fluctuation of the beneficial certificates will be a multiple of 7%. In view of the above features, the investor must fully understand that transactions in the beneficial certificates of ETFs may involve significantly huge profits or losses in a very short period of time due to fluctuations of the underlying index.
7. If trading of the beneficial certificates of ETFs is based on market quotations, there may be a lack of information about the buying and selling quotations or a relatively large gap between the buying and selling quotations. As such, investors must be thoroughly informed of the buying and selling quotations of the beneficial certificates of the ETF prior to investment and be aware of the potential investment losses caused by liquidity risks.
8. As the beneficial certificates of ETFs are highly leveraged, if investors engage in margin purchase and short sale with leverage, they may gain higher profits when the price movement conforms to expectations, or may otherwise suffer bigger losses. Investors may also face a margin call by the lender if the collateral maintenance ratio drops.

     The Risk Disclosure Statement contains only a brief summary of risk disclosure and is exemplary only therefore is not a comprehensive list of all the investment risks and factors that may affect market performance. Before making an investment, the investor should not only carefully review the Risk Disclosure Statement but also clearly consider and analyze other possible factors and diligently assess the risks to avoid insufferable losses from transactions.
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     To: _____ Securities Co., Ltd.

     I hereby state that I have received and carefully read the Risk Disclosure Statement and have been provided with explanations given by the staff sent by your company, and fully understand the above explanations and trading risks in the investment in the beneficiary certificates of the ETF before placing the order for trading the beneficiary certificates of the ETF. I further state that I understand that under certain circumstances calculations of net worth may not be timely updated and transaction prices may appear higher or lower than actual prices, and I hereby undertake to be solely responsible for the investment risks.



     Signature and Personal Seal of Investor: ____________________
     Signature and Personal Seal of Securities Firm's Staff Giving Explanations: ____________________
     I.D. Number or Registration Number of Withholder: ____________________
     Corporate Representative: ____________________
     Date:

     (The Risk Disclosure Statement shall be executed in duplicate, with one copy kept by the securities firm for reference and the other by the investor.)