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    This Risk Disclosure Statement is established in accordance with the provisions under Article 3, Paragraph 4 of the Taiwan Stock Exchange Corporation Rules Governing Trading of Beneficial Certificates, Point 5, Paragraph 3 of the Guidelines for Subscription and Buyback of Beneficial Certificates, Article 3, Paragraph 4 of the Taipei Exchange Rules Governing Trading of Exchange-Traded Fund Beneficial Certificates, and Point 10, Paragraph 3 of the Taipei Exchange Directions for Subscription and Buyback of Exchange Traded Fund Beneficial Certificates.
    Trading of beneficial certificates of an exchange-traded fund (ETF)
    Investors may incur significantly huge profits or losses in a short time when trading in the beneficial certificates of an ETF 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. Decision-making on trading the beneficial certificates of ETFs requires independent careful review and consideration. Investors should understand the fact that if the products the ETF trades or 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 factors including, without limitation, the following: country, interest rates, inflation, liquidity, cash dividends, investors' expectations, early rescission of contract, exchange rates, inflation reinvestment, individual events, taxation, credit and market impact of the underlying investment, which may further affect the net asset worth of the ETF. The securities firms do not provide any guarantee on any investment gains or protection of principal for trading in the beneficiary certificates of ETFs.
2. Where the derivatives or securities of the futures trades and investments that the ETF engages in are traded in foreign currency, in addition to the profit and loss from the actual trade, the exchange-rate risk must also be borne; loss of principal on the object of investment is also likely to result directly from changes in the interest rate, exchange rate or other indices.
3. Where the ETF invests in objects listed, or engages in futures trades, on a foreign exchange, the net value of the futures ETF as disclosed online by the futures ETF issuer as required may only be calculated based on the closing price of the last business day of the foreign exchange, due to time difference. There may be more-updated prices in other markets of the world of the objects of such trades or investments, therefore the customer may be exposed to the risk of discounts or premiums (where the strike price of the futures ETF beneficial certificates is lower or higher than its net value) by merely relying on the net value disclosed online by the issuer as the basis for trading in the futures ETF beneficial certificates.
4. Trading in the futures ETF beneficial certificates at the market quote may result in a shortage of the quoted quantity or a relatively substantial difference in the bid-ask quote. Before investing, the customer should collect relevant information on the bid-ask quote of the futures ETF beneficial certificates and pay attention to the investment loss that may result from liquidity risk.

Trading of beneficial certificates of an exchange-traded futures trust fund (futures ETF)
A futures ETF entails the following risks in addition to those specified in paragraphs 1 to 4 above:
5. A futures ETF takes foreign futures indices as the underlying indices in its major trades and investments, with wide-ranging futures indices available, including commodities, interest rates etc. The investment risk of trading in the beneficial certificates of a futures ETF varies among the underlying futures indices that the futures ETF trades and invests in. The customer should ascertain the features and risks of each of the foreign futures indices as the underlying indices that this ETF links to, and keep themselves apprised of the price changes of the underlying commodities in the spot market at all times.

Trading of beneficial certificates of a leveraged and inverse ETF and a leveraged and inverse futures ETF
The following risks are also entailed except for those specified respectively in paragraphs 1 to 4 above for a leveraged and inverse ETF and those specified respectively paragraphs 1 to 5 above fora leveraged and inverse futures ETF:

6. Where the leveraged and inverse ETF or the leveraged and inverse futures ETF is intended to track, simulate or replicate a multiple of the performance of an index or a multiple of the inverse performance of an index, the customer shall understand the relationship of the positive and inverse directions and multiples between the net worth and underlying index of such ETF, and that the futures ETF is intended to merely track, simulate or replicate a multiple in the positive or inverse direction of the yield of the underlying index each day, not the cumulative yield over an extended period of time of a multiple in the positive or inverse direction of the underlying index. It is, therefore, not advisable to procure cumulative yields by holding the beneficial certificates of the leveraged or inverse futures ETF for a long term.
7. If the underlying index of the leveraged and inverse ETF is a foreign index or includes one or more foreign securities, or if the futures trades in which the futures ETF engages are subject to no restrictions on price fluctuations, there are no specific restrictions on the price fluctuations of the beneficial certificates of such ETF. If, however, the underlying index of the leveraged and inverse ETF is a domestic index, the price fluctuation of the beneficial certificates will be a multiple of the price fluctuation of securities in the domestic securities market. In view of the above features, transactions in the beneficial certificates of the above ETFs may involve significantly huge profits or losses in a very short period of time due to substantial fluctuations of the underlying index or price.
8. As the beneficial certificates of leveraged and inverse ETFs and leveraged and inverse futures 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.

Trading of foreign-currency ETF beneficial certificates and additional ETF beneficial certificates
Trading of foreign-currency ETF beneficial certificates and additional ETF beneficial certificates entails the following risks in addition to those specified in paragraphs 1 to 4 above:
9. Customers trading in foreign-currency ETF beneficial certificates and additional ETF beneficial certificates should understand that they must bear, in addition to the profit and loss from the actual trade, both exchange-rate risk as foreign-currency ETF beneficial certificates are traded in foreign currency and spread risk and exchange-rate risk in respect of the beneficial certificates of the additional ETFs and their underlying ETFs.
10. The customer trading in foreign-currency ETF beneficial certificates or additional ETFs should fully understand in the event of trading in Renminbi that the amount of exchange to Renminbi allowed a natural person may not exceed $20,000 per day.
11. The beneficial certificates of additional ETFs and their underlying ETFs may be swapped with each other. The customer should fully understand that it must confirm the application amount is smaller than or equal to the balance in its book-entry custody account before it may apply for a swap.
12. No swap application is allowed in respect of the beneficial certificates of the underlying ETFs if they are used for purchasing and borrowing positions by way of margin purchase.
    Trading of beneficial certificates of a non-investment-grade bond ETF
    non-investment-grade bond ETFs entails the following risks in addition to those specified in paragraphs 1 to 4 above:
13. A non-investment-grade bond ETF invests in non-investment-grade bonds and entails the following risks:
1. A non-investment-grade bond ETF mainly invests in non-investment-grade bonds. Since the credit rating of non-investment-grade bonds fails to reach investment level, or such bonds are not subject to credit rating, the risk of the bond issuer being in breach of contract and not paying the principal or interest or becoming bankrupt may be incurred.
2. The prices of bonds are easily affected by changes in rates and may drop upon an increase in rates, thereby affecting the net asset worth of the ETF.
3. Interest on the beneficial certificates of a non-investment-grade bond ETF may be paid out of the proceeds or principal of the fund. Any payment out of the principal may result in a reduced net asset worth of the ETF.
4. Customers may be exposed to the risk of a decline in liquidity as caused by inactive market transactions preventing the sale at a reasonable price within a short time of the bonds in which a non-investment-grade bond ETF invests.
5. Objects in which a non-investment-grade bond ETF invests may include Rule 144A bonds, which are privately offered bonds. In such case, customers may face the risk of high fluctuations caused by insufficient liquidity, an incomplete disclosure of financials, or a lack of price transparency, which may affect the ETF's net asset worth.
6. In respect of objects in which a non-investment-grade bond ETF invests, customers may encounter special risks such as foreign exchange restrictions, substantial changes in exchange rates etc. due to relative political or economic instability in a country or region.

=====================================================================     Subscription and buyback of each type of ETF beneficial certificates
    To protect its rights and interests, the customer should be informed of the above risks being disclosed that are involved in the trading of each type of ETF beneficial certificates as well as the following matters if it is to subscribe and buy back beneficial certificates of the leveraged and inverse, foreign-currency or futures ETF by cash:

1. If the underlying index of the leveraged and inverse ETF, foreign-currency ETF or futures ETF is a foreign security index or futures index, the net value of the ETF portfolio composition file as disclosed online by the issuer as required may only be calculated based on the closing price of the last business day of the foreign exchange, due to time difference. The customer may be required to make up a shortfall in the subscription amount or may obtain a lower buyback amount when subscribing or buying back the ETF beneficial certificates.
2. The trading hours of the underlying foreign securities indices or foreign futures indices that the ETF tracks may differ from those of the R.O.C. market, or trading at a reasonable price may not be possible within a short time due to a decline in liquidity as caused by the underlying indices being inactive. As a result, there may be a difference between the strike price of the foreign investment object or underlying foreign futures index in which the issuer of the ETF trades or deals upon receipt of the funds for subscription or an instruction to buy back and the price of subscription or buyback at the time of application.
3. Where the object that the ETF trades or invests in is traded in foreign currency, the exchange-rate risk must also be borne in addition to the profit and loss from the actual trade, which is therefore likely to result in losses in the subscription or buyback amount.
4. The subscription or buyback price of the beneficial certificates of an ETF may be affected by such risks as interest rates, liquidity, exchange rates, inflation, reinvestment, individual incidents, tax, credit, and markets of linked objects etc.

    This Risk Disclosure Statement is brief and concise without providing a comprehensive list of all investment risks and factors that may affect market performance. Before making an investment, the customer should not only carefully review this Risk Disclosure Statement but also deliberate on other factors that may cause an impact, and make a thorough risk assessment, to avoid insufferable losses from trading.
    I hereby represent that I have received and read this Risk Disclosure Statement and also been provided with explanations by a representative sent by you before engaging in the trading or subscription and buyback of the aforementioned ETF beneficial certificates; that I fully understand the above matters and risks of trading in the ETF beneficial certificates and further understand under certain circumstances calculations of net value may not be updated timely and discounts and premiums may occur in respect of the trading price; and that I undertake to be solely responsible for the investment risks.
To
________ Securities Co., Ltd.
Signature of Customer: ______________
Signature Representative: ______________
National I.D. No. or Uniform Business Code of Withholding Agency: ______________
Signature of Securities Firm Representative: ______________
Date:
(This Risk Disclosure Statement is executed in duplicate, with one copy to be retained by the securities firm for filing purpose and the other by the customer for reference.)