Risk Disclosure Statement

1. General Investment Risk

Investing in equities and other securities listed on the Nigerian Exchange Group (NGX) carries inherent risks. There is no guarantee that you will achieve your investment objectives or recover the full amount of your invested capital.

Factors that can affect the value of your investments include, but are not limited to, economic conditions, corporate performance, industry trends, and market sentiment. The performance of individual companies and sectors can vary significantly from broader market movements.

2. Market Risk

Market risk is the risk that the value of an investment will decrease due to changes in market factors. On the NGX, this includes:

• Price volatility — share prices can fluctuate significantly within a single trading session and over longer periods
• Macroeconomic factors — inflation, interest rate changes, GDP growth, and government fiscal policy can all affect market valuations
• Sector-specific risks — regulatory changes, commodity price movements, or disruptions in specific industries can disproportionately affect certain stocks
• Market downturns — broad market declines (bear markets) can result in significant losses across most or all equity holdings simultaneously
• Circuit breakers & trading halts — the NGX may suspend trading in a security or across the market, potentially preventing you from exiting a position at a desired price

3. Liquidity Risk

Not all securities listed on the NGX trade with the same frequency or volume. Liquidity risk is the risk that you may be unable to sell a security quickly at or near its quoted price because:

• There are insufficient buyers for the security at the time you wish to sell
• The security is thinly traded or has a wide bid-ask spread
• A trading halt or suspension has been imposed by the NGX or the SEC

Attempting to sell a large position in an illiquid stock may significantly depress the market price of that stock, resulting in a worse execution price than anticipated.

4. Concentration Risk

Holding a large proportion of your portfolio in a single stock, sector, or asset class increases concentration risk. If that investment performs poorly, the impact on your overall portfolio will be magnified.

Diversification across multiple securities, sectors, and asset classes can help reduce concentration risk, but does not eliminate the possibility of loss.

5. Currency Risk

Investments on the NGX are denominated in Nigerian Naira (NGN). If you earn income or hold wealth in another currency, fluctuations in the value of the Naira relative to your home currency may affect the real value of your returns when converted back.

Devaluation of the Naira, foreign exchange restrictions, or changes in CBN monetary policy can all affect the currency risk associated with your investments.

6. Regulatory & Political Risk

The Nigerian securities market is subject to oversight by the Securities and Exchange Commission (SEC), the Nigerian Exchange Group (NGX), and the Central Bank of Nigeria (CBN), among others. Regulatory and political risks include:

• Changes in securities laws, tax laws, or listing rules that may adversely affect particular investments or the market generally
• Changes in government policy, including nationalisation, privatisation, or sector-specific regulation
• Political instability, civil unrest, or changes in government that may disrupt economic activity or market confidence
• International sanctions or trade restrictions that may affect Nigerian companies with overseas operations or revenues

7. Operational & Technology Risk

The use of technology-based trading platforms carries operational risks, including:

• System failures — technical outages, server downtime, or software bugs may prevent you from placing, modifying, or cancelling orders at critical times
• Connectivity issues — internet or mobile network disruptions may interrupt your ability to access the App or receive market data
• Cybersecurity threats — although Icon employs robust security measures, no system is immune from hacking, phishing, or other cyber threats
• Third-party dependencies — Icon relies on third-party infrastructure providers, payment processors, and the NGX/CSCS technology systems; failures in any of these may affect service availability
• Human error — entering incorrect order details (wrong quantity, price, or direction) may result in unintended trades that cannot be reversed

Icon maintains business continuity plans and redundant systems to minimise operational disruptions, but cannot guarantee uninterrupted service.

8. Corporate Actions Risk

Companies in which you hold shares may undertake corporate actions that affect the value of your holding, including:

• Rights issues (requiring additional capital from shareholders)
• Bonus issues and share splits
• Mergers, acquisitions, and takeovers
• Delistings from the NGX
• Dividend suspensions or reductions
• Insolvency or liquidation, which may result in a total loss of your investment

Icon will endeavour to notify you of corporate actions affecting your holdings in a timely manner, but is not responsible for actions taken by the companies in which you invest.

9. No Investment Advice

Icon Stockbrokers Limited is a licensed dealing member and executes trades on your behalf. We do not provide personalised investment advice, portfolio management services, or financial planning recommendations.

Any market data, research reports, news, or commentary available within the App is provided for informational purposes only and does not constitute investment advice or a solicitation to buy or sell any security. You are solely responsible for evaluating the suitability of any investment for your personal circumstances.

If you require investment advice, please consult a registered investment adviser or financial planner.

10. Acknowledgement

By creating an account on Icon e-Trade, you acknowledge that:

• You have read and understood this Risk Disclosure Statement
• You are aware that investing in securities involves the risk of financial loss, including the possible loss of your entire invested capital
• You are making investment decisions based on your own judgement and risk tolerance
• Past performance of any security is not indicative of future results
• Icon Stockbrokers Limited is not responsible for any investment losses you may incur

For questions about this Risk Disclosure Statement, please contact us at support@icon-securities.ng.