Dear Valued Member We would like to invite you join a new chapter in the commodities exchange market in Nepal.

Commodities Futures Exchange will be launching this month and we would like to extend an invitation to your company to join us in this exciting future. We have established CFX Ltd. to address this market in a positive way that will be beneficial for the long-term growth of this industry. We are pleased to offer some groundbreaking new initiatives that are unparalleled in this industry. Please consider this a formal proposal from us to initiate a membership that will yield success to you, your clients and to CFX. Thanking you, Commodity Futures Exchange Ltd

ABOUT US Commodity Futures Exchange (CFX) is a futures-based commodity exchange established in June 2011 under Company Act 2003 of the Government of Nepal. CFX has been organized under relevant rules and regulations. We have committed ourselves to an open futures market and the construction of a harmonious market environment. CFX adheres to the guidelines of "legislation, supervision, self-regulation and standardization. We endeavor to become a transparent and product-inclusive futures exchange that focuses on the metals, energy and agricultural products. CFX will establish a secure, orderly, efficient market mechanism and an open, fair, and equitable environment. Derivatives A derivative is a financial instrument whose value is derived from the price of a more basic asset called the underlying asset. Underlying asset can be securities, commodities, bullion, and currency, livestock or anything else. Derivatives are commonly exercised as an instrument to hedge risk, but can also be used for speculation purposes. Commodity Exchange Commodity exchange refers to the physical center where various commodities and derivative products are traded. It is a platform where standardized, graded products are bought and sold.The majority of trading is done in futures contracts, that is, agreements to deliver goods at a set time in the future for a price established at the time of the agreement. Futures trading allow both hedging to protect against serious losses in a declining market and speculation for gain in a rising market.Spot contracts, another form of trading, call for immediate delivery of a specified commodity and are often used to obtain the goods necessary to fulfill a futures contract. Clearing Members (CM) A Clearing member is an independent entity, which under the watchful eyes of the exchange holds responsibility for setting trading accounts, learning trades, collecting and maintaining margin monies, regulating delivery and reporting trading data. CFXs learning members are economically wellmanaged closely monitored and carefully selected companies. Non-Clearing Members (NCM) Non-Clearing Members are professionals who facilitate clients for trading. It is a part of an exchange, but does not possess the ability to settle or clear

transactions. NCMs are paid a fee or commission for drawing up contracts and for effective sales.

Client(s) / Trader(s) / Investor (s) Clients are the end users who buy and sell futures contracts on the exchange. There are no limitations on becoming a trader. Anyone is eligible to trade after completing legal formalities of the exchange through the NCM. Clients having prior knowledge on the c commodities market can trade through our user-friendly platform Benefits of Trading with CFX 1. Robust, fully-validated software platform that focuses on the end user needs 2. Professional and dedicated team of experts 3. Transparent price discovery mechanism with pricing that mirrors global prices for all relevant commodities 4. Trading opens when the markets all around the world are open to guarantee unsuspecting price drops. 5. Relevant pricing scheme to match the prices of the local Nepalese market 6. Spreads based international commodities and local market forces 7. Floating profit for all contracts 8. Only exchange to provide Gold Delivery for all expiring gold contracts based on prevailing laws Software We are using a fully customized version of Vertex 9.3 that has been catered to meet the requirements of our clients. They offer features that are unseen the software platforms unavailable in Nepal today. Some of these features are built in towards catering towards risk management for our clients. These features are focusing towards stop-losses and other trading options. Our software features are listed below: 1. Fully integrated stop/loss and risk management features with one-click 2. User friendly software with real time reporting capabilities

3. Capable of making trading statements real-time to see net profit/ loss of client 4. Technical analysis looking at relevant historical data 5. Screen can be customized to clients individual needs What separates us?

We will be offering physical gold delivery to the client(s) 50% floating profit to the customers based on daily trades Providing 3.5 % bank interest to the NCM (Non-Clearing Members)from clients segregate account Minimum initial margin for trading Spread based on global market and User friendly and globally recognized standard trading platform.

Products and Services CFX is providing reliable and secure trading platform in futures market. Easy to use trading platform provides real time order booking and risk management. It has globally recognized standard commodities for trading. As pioneer, first time in Nepal, we are providing Physical Gold Delivery in the commodity futures market. Currently, we provides trading platform on metal and energy products. The other products that are in the pipeline of our company are listed below: Metals Gold Silver Copper

Energy Crude Oil Natural Gas

Other pipeline products include: NCM (Non-Clearing Member) Investment Structure: S.N. Particulars Amount ( In Remarks

NPR ) 1. 2. 3. 4. Registration Fee Software Fee Segregate A/C Collateral / Member Deposit 1,00,000 + VAT 1,00,000 + VAT 50,000 50,000 Non-Refundable Non-Refundable (for 99 members) Refundable Refundable

Note: The above software fees include 99-client software and become unlimited when NCM deposits Rs. 250,000. This is a limited time offer for our inaugural members and may be subject to change.

CFX Organizational Structure

Commodity Futures Exchange (CFX)

Clearing Member (Clearing and Settlement)

Non- Clearing Members

NA

Trader/Client

NA