1. Purpose

This Margin and Leverage Disclosure explains material risks of leveraged and margin-based trading on the Ohana Capital platform. It supplements the Risk Disclosure and Terms of Service. It is not investment advice.

Leveraged trading is high risk and can result in rapid or complete loss of the capital committed to a position, and in some products losses can exceed the initial amount allocated to that position depending on product rules and account settings.

2. What leverage and margin mean

Leverage increases market exposure relative to the capital used to open a position. A small price movement can produce a large percentage gain or loss relative to that capital.

Margin is the amount of account equity reserved or required to open and maintain leveraged positions. Available margin, free margin, and margin level are account-health measures used by risk controls.

3. Magnified gains and losses

Because exposure exceeds the reserved capital:

• Favorable price moves can produce amplified gains
• Adverse price moves can produce amplified losses
• Losses may develop faster than they would in an unleveraged position of the same instrument size relative to cash commitment

Past performance of an instrument or strategy does not predict future results.

4. Margin calls, trade blocks, and liquidation

Account risk controls may:

• Warn when margin health deteriorates
• Block new risk-increasing activity
• Require reduction of exposure
• Automatically close positions in whole or in part

Liquidation or forced reduction may occur without further notice when thresholds are breached. There is no guarantee that a stop-loss, take-profit, or alert will execute at a chosen price during gaps, illiquidity, or system disruption.

5. Costs of holding leveraged positions

Holding costs may include financing, overnight charges, spreads, commissions, and conversion costs. These reduce profitability and can increase loss. Costs should be reviewed in the fee schedule and order confirmation screens before trading.

6. Volatility, gaps, and slippage

Markets can gap, especially around news, openings, or thin liquidity. An order may fill at a worse price than displayed, or may not fill. During extreme conditions, risk engines and providers may reject, delay, or reprice instructions.

7. Suitability

Leverage and margin products are not appropriate for everyone. Before using them, consider whether you:

• Understand how margin level and liquidation work
• Can monitor positions and respond to alerts
• Can afford the potential loss
• Have reviewed product-specific terms and account settings

If you do not understand leverage, do not enable or use leveraged products.

8. No guarantee of continuous access

Platform, market-data, or risk-system interruptions may prevent you from opening, modifying, or closing positions when you intend to. See the Business Continuity Plan Summary.

9. Acknowledgement

By enabling leveraged or margin trading, or by opening a leveraged position, you acknowledge that you have read this disclosure and the Risk Disclosure, and that you understand leveraged trading can result in rapid and substantial loss.