1
    This risk disclosure statement is established in accordance with Article 4, paragraph 3 of the Taiwan Stock Exchange Corporation Regulations Governing Trading of Exchange Traded Notes; Article 4, paragraph 3 of the Operating Directions for Subscription and Sellback of Exchange Traded Notes; and Article 7, paragraph 3 of the GreTai Securities Market Regulations Governing Trading in Exchange Traded Notes.
    Trading in Exchange Traded Note (“ETNs”)
    ETNs a customer wishes to trade in are securities with specific maturity date that track the performance of the underlying index. ETNs are traded in the exchange market. When trading in ETNs, a customer is possible to gain significant profits or suffer significant losses in a short period of time. Customers are advised to carefully consider their own financial capability and economic position to determine if this type of products is suitable for them before opening an account. Customers are strongly advised to understand the potential risks in investing in ETNs and familiarize themselves with the following information before deciding to open an account so as to protect their rights and interests:

1. ETNs are not mutual funds. Investors do not actually hold the assets comprising the underlying index. Instead, their investment is ensured by the credit of the issuer of the ETNs, who will provide investors with compensation and incomes comparable to the index being tracked. Investors may not receive additional dividends on the ETNs during the investment period.
2. In addition to the risks associated with the characteristics of the underlying index tracked by the ETNs and the fluctuation risks, investment risks in trading in ETNs include credit risks of the issuer of the ETNs.
3. The amount to be paid by the issuer to investors trading in ETNs upon maturity date or sellback as requested solely depends on the performance of the underlying index tracked by the ETNs, which may be higher, equal to or lower than the investment amount at the beginning of the investment. Investors should understand ETNs are not secured debts and are not principal-guaranteed.
4. Investors wishing to trade in ETNs should carefully review the prospectus and understand how the benchmark value is calculated and what costs they may be responsible for.
5. When the issuer of ETNs being traded experiences changes in its credit status or rating, or other material events take place, the trading price of the ETNs in the securities market may be affected. In other words, even if the underlying index tracked by the ETN stays put, the trading price of ETNs may drop simply because the issuer's credit rating is downgraded.
6. Investors decide to invest in ETNs based on their independent and careful judgment. Investors fully understand ETNs may be exposed to various risks, including but not limited to country, interest rate, liquidity, cash dividends, investor expectation, early termination of contract, foreign exchange, inflation, reinvestment, individual event, taxes, credit and influences of the market the ETNs are linked to. Issuers do not guarantee any investment gains or principal protection for investment in ETNs.
7. When one or two foreign securities are included in the underlying index tracked by ETNs, the ETNs will not have a limit on fluctuation in either direction. In such circumstances, it is possible investors gain significant profits or suffer significant losses in a short period of time due to huge price swing.
8. Securities included in the underlying index tracked by ETNs may have different trading hours from the markets in Taiwan. The benchmark value required to be disclosed on the website by the issuer may be calculated based on the closing index of the most recent business day in the foreign exchange market where securities are traded due to time difference. Investors should understand there may be more updated real-time price for underlying index tracked by ETNs in markets elsewhere. Under such circumstances, if investors only rely on the benchmark value the issuer has disclosed on the website to make their decision on trading in ETNs, there may be discount/premium risks, i.e. the strike price for ETNs may be lower or higher than the benchmark value.
9. When trading in ETNs based on market quotes, investors may experience a lack of sufficient quotes or greater differences in price quotes. Investors are advised to collect as much as information about quotes in trading in ETNs and be alert to potential investment losses caused by liquidity risks.
10. Before trading in ETNs, investors should understand the financial position and credit status of the issuer relating to its capability of performing the contract.
11. Before trading in ETNs, investors should understand there is the possibility that the issuer may not accept a subscription and sellback request even if the subscription and sellback have met the conditions set forth in the issuer's prospectus.

Trading in Leveraged and Inverse ETNs
In addition to the risks listed in paragraphs 1 to 11 above, leveraged and inverse ETNs entail the following risks:
12. Customers trading in leveraged and inverse ETNs should understand leveraged and inverse ETNs track positive multiples or negative multiples of the underlying index. The goal of leveraged and reverse ETNs is to track positive multiples or negative multiples of the returns of the underlying index on a daily basis, not the accumulated returns in terms of positive multiples or negative multiples over a period of time.
13. When one or two foreign securities are included in the underlying index tracked by leveraged and inverse ETNs, the ETNs will not have a limit on fluctuation in either direction. If the underlying index being tracked is composed of domestic securities, the ETNs go up or drop down at the multiples of the increase or decrease of securities in domestic markets. In view of the above characteristics, customers should fully understand it is possible investors trading in leveraged and inverse ETNs gain significant profits or suffer significant losses in a very short period of time due to fluctuations in the underlying index.

Trading in Futures and Options Strategy ETNs
In addition to the risks listed in paragraphs 1 to 11 above, futures and options strategy ETNs entail the following risks:
14. A customer trading in futures and options strategy ETNs should understand that futures and options strategy ETNs are relatively complex becase the underlying index which they track comprises a portfolio of spot assets, futures, options, or relaxed indexes. A futures and options strategy ETN tracking an index that is composed of futures or options may produce only limited proceeds and create substantial losses within an exceptionally short time (with zero principal amount to be recovered in the worst-case scenario). This means an upper limit on the profit to be gained and a maximum risk being zero principal to be borne by a customer trading in such ETN. A customer should fully understand the trading concepts and risks pertaining to the components (such as futures, options, etc.) of an index and read the prospectus carefully before trading.

    Subscription and Sellback of ETNs
    In addition to the above risk disclosure relating to trading in ETNs, customers should familiarize themselves with the following information if they intend to subscribe and sell back ETNs in cash:

1. If the underlying index of ETNs is a foreign index, when publishing the amount of subscription and sellback price as required under the prospectus, the issuer may refer to the closing index of the most recent business day at the foreign exchange in calculating the price due to the time difference. As such, at the time of subscription and sellback of the ETNs, investors may have to pay an additional amount for subscription price or receive a lower sellback price.
2. Price of subscription and sellback of ETNs may be influenced by interest rate, liquidity, foreign exchange, inflation, reinvestment, individual event, taxes, credit and risks in the market the ETNs are linked to.
3. In addition to the risks associated with the characteristics of the underlying index tracked by the ETNs and the fluctuation risks, investment risks in subscribing and selling back the ETNs include credit risks of the issuer of the ETNs.
4. With regard to the subscription and sellback of ETNs, an issuer may not accept a subscription and sellback request even if the conditions set forth in the issuer's prospectus have been met.

    The information provided in this risk disclosure statement is only a summary and is not exhaustive. It does not provide detailed descriptions of all investment risks and circumstances that may influence market trends. Before making a trading decision, in addition to carefully reviewing this risk disclosure, customers are advised to deliberate on other possible factors and variants to make an informed decision and to evaluate all known risks to protect themselves from intolerable losses from trading in ETNs.

    To: Securities Co., Ltd.

    I have received and carefully reviewed this risk disclosure and have been provided with explanations by the representative sent by you before I place my order to trade in or subscribe and sell back ETNs. I fully understand the above information and risks in investing and trading in ETNs. I further acknowledge under certain circumstances, it is possible benchmark value being calculated may not be updated in time and trading price may have a discount/premium. I hereby undertake to solely bear the investment risks.

To
Securities Co., Ltd.
Customer: (Signature and/or Chop)
Representative: (Signature and/or Chop)
National ID Number or Unified Business Number of Withholding Entity:
Securities Firm's Representative providing the explanation:
(Signature and/or Chop)
Date: [dd-mm-yyyy]
(This risk disclosure statement is in duplicate, with one copy to be kept by the securities firm for archival purpose, and the other by the customer.)