crypto.com | Derivatives North AmericaRISK DISCLOSURE STATEMENTTHE RISK OF LOSS IN TRADING INSTRUMENTS ON THENORTH AMERICAN DERIVATIVES EXCHANGE, INC. D/B/A
CRYPTO.COM | DERIVATIVES NORTH AMERICA CAN BESUBSTANTIAL. YOU SHOULD, THEREFORE, CAREFULLYCONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU
IN LIGHT OF YOUR CIRCUMSTANCES AND FINANCIALRESOURCES. YOU SHOULD BE AWARE OF ALL THE POINTSCONTAINED WITHIN THIS RISK DISCLOSURE STATEMENT.
crypto.com | Derivatives North America has attempted to write this riskdisclosure statement in plain English so that you have a good understandingof the risks of trading on crypto.com | Derivatives North America’s Internetbased, direct access, derivatives trading system and the risks in trading theinstruments offered on crypto.com | Derivatives North America. However, nomatter how plain this statement is, it and the other information provided bycrypto.com | Derivatives North America in its Rules, Membership Agreementand Terms of Use cannot disclose all potential risks and considerations
related to derivatives trading. Therefore, you should only trade on crypto.com| Derivatives North America if you understand the nature of the transactions
you are entering into and your exposure to risk. Trading in derivatives is
simply not appropriate for many members of the public, and you shouldcarefully consider whether trading derivatives is appropriate for you given
your experience, objectives, financial resources, and other relevant
circumstances.
There are numerous risks associated not only with the derivatives contracts
traded through crypto.com | Derivatives North America but also with thetrading system itself. Moreover, because crypto.com | Derivatives NorthAmerica allows direct participation by you, you must ensure that you carefully
read and understand this Risk Disclosure Statement, the description ofcrypto.com | Derivatives North America Instruments (the “Instruments”) you
may trade-including when a particular Instrument expires and how
crypto.com | Derivatives North America determines which Instruments willbe “in-the-money” at Expiration-and all other crypto.com | Derivatives North
America rules.

INHERENT RISKS IN TRADING THE INSTRUMENTS
OFFERED ON CRYPTO.COM | DERIVATIVES NORTHAMERICAThe Instruments traded on crypto.com | Derivatives North America have ahigh degree of risk. Currently, there are two types of Instrument that trade on
crypto.com | Derivatives North America.
1) The first type of Instrument is similar to a cash-settled binary Europeanstyle call option contract and is referred to as a Binary contract. Such
Instruments offered through crypto.com | Derivatives North America arecomprised of one contract that has a defined Payout Criterion covering all
possible outcomes dependent upon whether you enter into a long or shortposition in such Binary contract. This means that if you purchase and hold along position in a Binary contract at Expiration, and the Expiration Value isnot within the Payout Criterion for the long position you have chosen to hold,that contract will expire worthless. Similarly, if you hold a short position in a
Binary contract at Expiration, and the Expiration Value is within the Payout
Criteria, you will lose all of your original investment.
2) The second type of Instrument is a Variable Payout Contract. Variable
Payout Contracts include Call Spreads, which have a fixed Expiration, andTouch Brackets, which have a conditional Expiration. Such Instruments
offered through crypto.com | Derivatives North America are comprised of one
contract that has a value varying between an upper and lower range which
defines the Payout Criterion. This means that if you hold a long position in a
Variable contract at Expiration, and the Expiration Value is not within thePayout Criterion for the position that you have chosen to hold, you may lose
all of your original investment. Similarly, if you hold a short position (which
has a value that moves inversely to a long position) in a Variable contract atExpiration, and the Expiration Value is not within the Payout Criterion for theposition that you have chosen to hold, you may lose all of your originalinvestment.

North American Derivatives Exchange, Inc. is subject to U.S. regulatory oversight by the CFTC.

REMEMBER: YOU MAY SUSTAIN A TOTAL LOSS OF THE FUNDS USEDTO ESTABLISH A POSITION IN THE CRYPTO.COM | DERIVATIVESNORTH AMERICA MARKET.
The unique nature of crypto.com | Derivatives North America Instruments
may be confusing to many investors who are familiar with more traditional
derivatives contracts. Risks associated with the unique nature of thecrypto.com | Derivatives North America Market include a potential lack ofliquidity for crypto.com | Derivatives North America Instruments. Other
derivatives markets have professional traders who ensure that there arealways competitive offers to buy and sell Contracts. crypto.com | Derivatives
North America may not have such liquidity providers for some or all of its
instruments. Therefore, there is a possibility that you could hold a position inan Instrument from crypto.com | Derivatives North America and be unable toliquidate your position in the Instrument or the portion of the position that you
no longer want to hold in the time frame you wish to liquidate it. Additionally,
there is a chance that no one will offer to sell you or bid to buy from you an
Instrument you want to take a position in or to liquidate due to current market
conditions or otherwise. Lack of liquidity in the market could also preclude
you from selling large blocks of Instruments at once. If crypto.com |Derivatives North America lacks liquidity in the Instruments you want to trade
for any reason, you may be unable to trade at your desired time or price. Ifthat occurs, you may be forced to hold them until they expire, possibly
preventing you from hedging the risk to which you are exposed.
A further risk of trading in crypto.com | Derivatives North America Instruments
is the risk of a material change in the nature of the Underlying. For instance,
you could purchase Instruments on the Nonfarm Payrolls to be published by
the Bureau of Labor Statistic at a particular time in the future, but in theinterim, the government could change the way the Nonfarm Payrolls isdetermined or cease publishing that index.
In the event of a material change in the nature of any of the Underlyings, or if
any of the Underlyings cease to exist, crypto.com | Derivatives North America
may adjust the relevant Instruments or the payments to be received underthose Instruments based on its best judgment, and its decision shall be final.
The decision reached by crypto.com | Derivatives North America could be
different than you anticipated when you took a position in the affected
Instrument, and as a result, you could suffer significant losses.
Another risk inherent to trading crypto.com | Derivatives North America
Instruments is that the Instrument may not settle as expected. For example,
the information related to the Payout Criterion may be changed in accordancewith the crypto.com | Derivatives North America Rules, the anticipated result
may not occur on schedule, or the results of the occurrence may be
ambiguous in the way crypto.com | Derivatives North America initially defined
the Payout Criterion.
A further risk inherent to trading crypto.com | Derivatives North America
Instruments involves crypto.com | Derivatives North America not halting themarket in accordance with the underlying market. The specific movements of
any underlying market cannot be predicted with exact precision. For example,
you could purchase an instrument based on gasoline prices at the pump(“Gasoline”). Prior to expiration of your instrument, the price of Gasoline could
be effected by a loss of refinery capacity due to an accident or other incident
or for various other reasons unforeseeable to crypto.com | Derivatives North
America. However, crypto.com | Derivatives North America may choose notto halt the trading of the Instrument in contrast to the underlying market. This
may affect the way the value of your Instrument is calculated and settled.

RISKS INHERENT IN ELECTRONIC TRADINGElectronic trading involves many interrelated systems, including hardware,
software, telephony, cable, and power generation, all of which are subject tofailure or malfunction that may adversely affect your ability to trade. If you

crypto.com | Derivatives North America Risk Disclosure Statement, September 2022

Page 1 of 2have spent any time at all on the Internet, you may have experienced
problems with computer crashes, failure of your Internet service provider’saccess system, site crashes, and many other problems. Therefore, pleaserealize that during any time which you cannot access crypto.com |Derivatives North America for whatever reason, you will not be able to enter,
cancel, or modify orders. Additionally, although crypto.com | Derivatives
North America and its systems provider(s) have taken precautions, such as
redundant systems, to prevent such an occurrence, if the crypto.com |Derivatives North America system suffers a catastrophic failure, there is achance your orders and their priority in the order queue could be lost.
crypto.com | Derivatives North America is not responsible or liable for any
effect on your ability to trade caused by any malfunction of the Internet,
computing systems, or their related components.

RISKS INHERENT IN ELECTRONIC TRADINGElectronic trading involves many interrelated systems, including hardware,software, telephony, cable, and power generation, all of which are subject
to failure or malfunction that may adversely affect your ability to trade. If
you have spent any time at all on the Internet, you may have experienced
problems with computer crashes, failure of your Internet service provider’saccess system, site crashes, and many other problems. Therefore, pleaserealize that during any time which you cannot access crypto.com |Derivatives North America for whatever reason, you will not be able toenter, cancel, or modify orders. Additionally, although crypto.com |Derivatives North America and its systems provider(s) have taken
precautions, such as redundant systems, to prevent such an occurrence, if
the crypto.com | Derivatives North America system suffers a catastrophic
failure, there is a chance your orders and their priority in the order queue
could be lost. crypto.com | Derivatives North America is not responsible orliable for any effect on your ability to trade caused by any malfunction of
the Internet, computing systems, or their related components.

THIRD PARTY SERVICE PROVIDERS
crypto.com | Derivatives North America will provide you with informationfrom Third Party Service Providers (“TPSP”) that relates to the instruments
traded on crypto.com | Derivatives North America. Such information
includes, but is not limited to, website links, quotes, pricing feeds, and anyother information provided on the crypto.com | Derivatives North America
website (collectively the “Service”). Even though crypto.com | Derivatives
North America is providing the Service to you via its website, crypto.com |Derivatives North America does not endorse, warrant, or guarantee theaccuracy or reliability of the information provided by the Service.
crypto.com | Derivatives North America is a designated contract market
and registered derivatives clearing organization under the Commodity
Exchange Act, as amended, and the regulations of the Commodity Futures
Trading Commission. As such, crypto.com | Derivatives North America isa self-regulatory organization, largely responsible for regulating its own
activities, including the operation of tis market, its Contracts, its sales
practices (including promotional material), and its method of managing andprotecting your funds and the funds of other members.
THIS BRIEF STATEMENT CANNOT OF COURSE DISCLOSE ALL THE
RISKS AND OTHER ASPECTS OF THE CRYPTO.COM | DERIVATIVESNORTH AMERICA MARKET.

North American Derivatives Exchange, Inc. d/b/a crypto.com | Derivatives North America
200 West Jackson Blvd. • Suite 1400 • Chicago, IL 60606
Phone: (887) 776-2339 • customerservice@nadex.com

North American Derivatives Exchange, Inc. is subject to U.S. regulatory oversight by the CFTC.

crypto.com | Derivatives North America Risk Disclosure Statement, September 2022

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