Frequently Asked Questions

Regulatory

Is Eurivex regulated?

Eurivex Ltd is an EU Investment Firm regulated by the Cyprus Securities & Exchange Commission (CySEC), number 114/10 and licensed to offer Reception, Transmission and Execution of Orders, Dealing on Own Account and Safe-Keeping of client financial instruments.
Eurivex was established in 2009 and received its regulatory license from CySEC in March 2010.

Where is Eurivex based?

Our Head Office Address is at 18 Kyriacou Matsi, Victory Tower, 1st floor, Nicosia 1082, Cyprus.
Telephone +357 22 02 88 30, Fax +357 22 25 53 18,
Web site: www.eurivex.com
Enquiries: info@eurivex.com

What does Eurivex Agora Platform mean?

Agora means Marketplace in the Greek language. Eurivex Agora is our Marketplace
where we allow investors to invest in trade finance deals.

Who can use the Eurivex Agora Platform?

Any individual above the age of 18 or operational legal entity can use the platform.

Do I need to be an EU National or EU resident?

Eurivex accepts clients from all EU member states and EEA countries as well as from
Armenia, Belize, British Virgin Islands, Cayman Islands, China, Hong Kong, Republic of
Seychelles, Russia, Taiwan and United Arab Emirates, provided such nationals submit
their KYC information (copy of passport and proof of address) in certified form.

Who can invest in trade finance deals?

All individuals or legal entities who successfully complete the account opening process
and are accepted by Eurivex.
After you activate your account by completing all necessary steps, then you may be able
to transfer funds (only via bank transfer) to Eurivex and commence your investments.

Is there a minimum amount to invest?

The minimum amount to invest is €300. However, investors are strongly recommended
to take into consideration the various charges that apply to the operation of the account,
most of which are fixed. This means that such fixed charges may be disproportionate to
the return that you will receive from a small investment.

Is there a maximum amount to invest?

No, there is no maximum amount. However, investors are strongly recommended to
diversify their investments and NEVER invest all your money in one type of financial
instrument or with one institution.
You should not invest more than 20% of your funds available for investment in any
institution, including Eurivex.

Where is my money held?

All monies are received in “Eurivex Clients” bank accounts maintained with banks in the
EU, segregated from Eurivex money, in accordance to CySEC rules. This account is
ring-fenced from Eurivex money and is protected in the event that anything should
happen to Eurivex.

Who is Eurivex Trade Finance Limited?

Eurivex Trade Finance Limited (“ETFL”) is a Cyprus incorporated company and a 100%
subsidiary of Eurivex Ltd.

How do I make a complaint?

You can submit your complaint to complaints@eurivex.com and we shall investigate
your complaint and provide you with a response and/or a resolution.
If you are still not satisfied with our response, then you may proceed with further action
by visiting our web site and following the steps included in the Complaint Handling
policy.

SECURITY OF INVESTMENT

Where is the money invested?

Eurivex Trade Finance Limited (“ETFL”) uses the money from the issuance of Notes to
provide trade finance facilities to Cyprus and overseas based companies. Any Supplier
who issues invoices on credit of up to 120 days to its customers is entitled to assign the
invoices to ETFL for instant cash to boost its liquidity.
In some cases, ETFL insures the trade receivable against default risk with Euler
Hermes. This means that if any of the Supplier debtors’ default, we will recover our
money from Euler Hermes.
In other cases, where the Supplier has very strong financials, has a wide customer
diversification and passes the ETFL Credit Committee evaluation, the trade facility will
be provided without credit insurance but with right of recourse on the Supplier. This
means that if any of the debtors’ default, ETFL will seek to recover the money from the
Supplier.

Are the investments secure?

Invoices that are credit insured are secure since in the event of default, the full amount
will be recovered from the credit insurance firm. These are classified as Conservative
Strategy Investments (“CSI”).
Invoices that are not credit insured are not secure, even though Eurivex has the right of
recourse on the Suppliers. Therefore, if an invoice is not settled by the debtor, Eurivex
may still recover your money from the supplier. These are classified as Balanced
Strategy Investments (“BSI”).

What is the risk of default in Conservative Strategy?

The Conservative strategy invests only in trade finance deals that have been insured
against credit default risk with Euler Hermes.
As an example, Supplier A enters into an agreement with Eurivex to insure its Debtors
BB, CC, DD, EE and so on. In the event that debtor EE defaults and is not in a position
to pay its obligations to Supplier A then Eurivex will submit a claim to Euler Hermes and
seek the amount that has been insured.
The process will take between 60-90 days until the claim is settled and Eurivex collects
the money on behalf of the Noteholders.
In reality, when an invoice is credit insured, the risk of default shifts from the Supplier to
Euler Hermes.

Who is Euler Hermes?

Euler Hermes is the world’s largest credit insurance firm.
Euler Hermes Group is a listed company in NYSE Euronext Paris since April 12, 2000.
It is rated “AA” by Standard & Poor’s and “Aa3” by Moody’s.
Euler Hermes has €890 bln of business transactions protected worldwide.

What is the risk of default in Balanced strategy?

The Balanced strategy invests in invoices issued by Suppliers to customers who have
not been credit insured. While every applicant undergoes a very tough screening and
verification process by the ETFL Risk and Credit Management Committee, both at
Supplier level and at the Debtor level, in the event of default by a debtor, the only
remedy is ETFL’s recourse to the Supplier whose invoices have been discounted.
As an example, Supplier C supplies to many companies who become its debtors. If a
debtor defaults, ETFL has full recourse to claim the overdue amount from Supplier C. In
such a case, ETFL can recover the money from other debtors’ invoices/collections that
are assigned to it by Supplier C. In the event that Supplier C is also in difficulty and
cannot meet its obligations, then ETFL will undertake to collect the debt by taking a
number of measures, including court action.

What is the risk of default in Growth strategy?

The Growth strategy is not yet available. When it becomes available, it will invest in
unsecured facilities, but offer higher returns.

What happens if ETFL defaults?

In the event that ETFL were to default, then all your investment in all categories of Notes
would be at risk.
However, there is extra protection since the trade facilities representing the Notes are
pledged to the benefit of Note Holders. Furthermore, the Parent Company, Eurivex Ltd
which is a regulated firm has very strong financials, no debt and is in a position to
support its 100% subsidiary, Eurivex Trade Finance Limited (“ETFL”).

ETFL NOTES

What is a Performance Linked Note?

The Performance Linked Notes (PLNs) are Notes whose performance is tied to the
performance of the underlying asset, in this case, trade finance deals.

Who has issued the Notes?

Eurivex Trade Finance Limited (“ETFL”), a 100% subsidiary of Eurivex Ltd is the Issuer
of the Notes.

Are my investments in PLNs protected?

Investment in Notes made through Eurivex are covered by the Investor Protection
Compensation Scheme of up to a maximum amount of €20,000 per account holder, but
this protection applies only in the event that Eurivex Ltd, the Investment firm were to
default. This protection does not apply to the risk of investment in trade finance deals.

How does the process work?

When ETFL extends a trade facility to a Supplier company after discounting the invoice,
it creates a Note, which replicates the specific trade finance facility. The Notes will pay a
fixed return and have a fixed maturity.
Let’s assume ETFL extends a €100,000 facility to a Cyprus distributor, which supplies
goods to the 5 major supermarkets of Cyprus. The Supplier issues invoices on credit of
90 days, but if it needs immediate liquidity, it can assign its invoice(s) to ETFL and
receive up to 85% of the invoice value immediately after passing the strict evaluation
process. ETFL will then wait until maturity of the invoice to receive full payment. In order
to cover its risk, ETFL may insure the supermarket(s) with Euler Hermes against default
risk.
In the meantime, ETFL will issue Notes valued at €85,000 and offer the Notes to
investors via the Eurivex platform with a fixed return and the same 90-day maturity.
Investors, big or small, may invest in the Notes on a first-come-first-serve basis until the
required €85,000 is met. Eurivex also invests its own money in the same deals on same
terms and conditions, aligning its interests with those of its investors.
On maturity date, after ETFL receives full payment of the invoice from the Supplier’s
Debtor (in this hypothetical case, the supermarket), ETFL will in turn pay the initial
capital plus the return to the investors via the Eurivex platform.

What do the Notes represent?

The ETFL Performance Linked Notes or “Note” represent trade finance facilities. When
you hold Notes in your account, you receive a fixed return that is derived from the trade
finance facility.

Can I know the identity of the Suppliers and their Debtors?

The identity of ETFL clients, the Suppliers and their Debtors is not shared with investors
who are investing in the Notes issued by ETFL. You will only know the status of the
facility, whether it is credit insured (i.e. Conservative strategy) or not insured (i.e.
Balanced strategy).

Are the Notes listed?

The Notes are not listed.

Can I sell the Notes before maturity?

Yes, you may sell all or part of the Notes ONLY through the Eurivex Secondary
Marketplace where you decide the amount, the price and the method on how the Notes
are sold. However, you should know that the final holder of the Notes/Ticket is the
person who will earn the return upon maturity, therefore you would not earn any return,
even up to date of sale.

Is my portfolio diversified?

Yes, you may diversify your portfolio by investing in more than one strategy and allow
the Auto-bid to allocate the available funds in more than one deal. You can change your
investment criteria and or cancel Auto-bid Investing at any time.

ACCOUNT MANAGEMENT

How do I open an account?

You need to complete the online account opening form, answer a short questionnaire
and upload a copy of your valid passport (or Identity Card for Cypriots,) and proof of
address such as copy of your most recent utility bill (not later than 3 months old) or bank
statement.
Once your account and documents have been approved by us, we shall send you your
login by email to be able to access your account.

Can I change my password?

You can change your password at any time once you are already logged in to your
account. In case you have forgotten your password and cannot access your account,
you can click on ‘’Restore Password’’ to receive a secure link to your registered email.
Please review our help videos available online for additional explanations. In line with
GDPR regulations, and in order to ensure the security of your account and confidentiality
of such sensitive information, there is no way for us to know your password.

Why do you ask so many questions in the questionnaire?

Since we operate in line with EU’s MiFID II guidelines, we need to ascertain if a service
or product offered to you is suitable to your needs and meets your risk profile. To do so,
we need to ask you a number of questions to be sure that you have the knowledge,
experience and understand the risks involved in buying the ETFL notes which represent
trade finance deals.

What happens if I don’t answer some of the questions?

Our automated system will not allow you to proceed unless all questions are answered,
or our Customer Support department may reject your application.

Why do you ask for the location of my bank account?

This is in line with EU Anti-Money Laundering regulations and Know-Your-Client (KYC)
rules according to which all regulated investment firms need to know from where their
potential clients will be making fund transfers.

Why do you ask for my IBAN or bank account details?

We need this information to be able to meet our regulatory obligation of operating in line
with the EU’s anti-money laundering regulations, which means we need to know your
bank details and to make sure that future withdrawals from your account are made to the
same bank account from where you transferred money to us. Kindly note if you provide
an incorrect IBAN, there will be an administration charge as well as possible delays in
crediting the funds to your account, therefore please double check your details to avoid
such instances.

Is there a charge to open Eurivex account?

No, there are no charges to open an account with Eurivex.

Can I allocate money to all strategies in the Auto-bid?

Yes, you may diversify or spread your risk by allocating a percentage of your funds
available for investment to one or more strategies.

Do I need to allocate all available funds to any of the strategies?

You may leave some of your money in your account to be able to buy bargains or invest
in new opportunities from the secondary marketplace. Please note that balances left in
your account with Eurivex earn no return, and if you are not active (you don’t make any
transactions with your money within 3 months) we shall charge you an inactivity fee.

What do you mean by active and inactive?

An active investor is a person who has invested money through the Auto-bid and Autobid Reinvest, has made a transaction in the Eurivex Marketplace, made a deposit or
withdrawn funds at least once during the previous three (3) calendar months.
All those who have not taken any action during the previous three (3) calendar months
are considered as inactive and will be charged an inactivity fee at the end of each
quarter under review. Please see our Costs and Charges available on our web site for
the charges applicable to your account.

Are there always opportunities in the secondary marketplace?

It depends on market conditions and investor needs. The flow of deals in the
Marketplace depends on the decision of other investors on whether they wish to sell and
exit out of a deal prior to maturity of the specific deal. It is important to mention that if you
buy a deal/ticket on the Marketplace, you cannot re-sell that specific ticket.

AUTO-BID

How is my money invested?

In the Eurivex Agora platform we have simplified the investment process. Investors do
not need to browse for deals manually and waste time and resources. All funds are
invested via Eurivex Agora Auto-bid function, which is an algorithm developed by
Eurivex allowing investors to invest in any one of the strategies available for investment,
or a combination, depending on your risk profile and desired diversification. Please note
that an investment may be broken down into multiple tickets and therefore have different
maturity dates, depending on the deals available. In some cases, a part of the amount
may be invested, and the rest may remain ‘Pending’ until a new deal becomes available.

Advantages of Auto-bid

Investor money is invested immediately once a deal from the chosen strategy
becomes available, resulting in better utilization of money;
- Diversification between different strategies and individual deals is achieved;
- Transparency is maintained, as deal confirmation with full details is immediately
dispatched to clients by email and is also made available on the client’s
dashboard;
- Fees are lower than comparable alternative investment offers;
- Reinvestment of Capital and interest is done automatically.

Definition of the strategies

Currently, there are two strategies that investors can choose. The strategies are:
1) Conservative – invests only in Notes whose underlying trade finance facilities are
100% credit insured against default risk;
2) Balanced – invests only in Notes whose underlying trade finance facilities are not
insured.
3) Growth – Coming Soon. This strategy will invest in unsecured facilities.
You may decide either one strategy or a combination of strategies depending on your
risk profile.

Is the return the same?

The return in the Conservative strategy and Balanced strategy is stable and does not
fluctuate. As explained earlier, since the deals in the Conservative strategy are credit
insured with Euler Hermes, the risk is very low and hence the return is lower, and the
same return applies to all the deals in the Conservative strategy.
The return on Balanced strategy investments, which are essentially trade finance deals
that invest in invoices that are not credit insured but with full recourse right on the
Supplier are considered as higher risk than the credit insured deals in the Conservative
strategy and for this reason will earn a higher return when compared to the Conservative
strategy deals.
In the Growth strategy, the return will be different, and more fluctuations should be
anticipated since this strategy invests in unsecured facilities.

Why is the return in the Conservative Strategy deals lower than the other strategies?

The return in the Conservative Strategy deals is lower because all the deals are credit
insured against risk of default with Euler Hermes. In order to secure such credit
insurance from the world’s largest and financially strongest company, high insurance
fees apply, which reduces the rate of return.
Once a supplier is credit insured, the risk passes from the company to Euler Hermes,
which has AA rating from Standard & Poor’s and is higher than the government of
Cyprus. As previously mentioned, the higher the security, the lower the return.

How can you give a better return than a bank deposit on credit insured deals?

The reason why an investor receives 2.5% annual return on the Conservative strategy
invested Notes that are credit insured is to cover the higher risk of making the
investment via Notes issued by ETFL, which is not rated.
As explained earlier, investors are buying the Notes issued by ETFL but not directly the
trade facilities that have been credit insured in the case of the Conservative strategy
investments. Although the trade facilities have been pledged to the benefit of the
Noteholders, you are essentially running a higher risk of investing in ETFL, which is not
rated.
To account for this risk, the return is higher and better than leaving the money in a bank
current account.

How long does it take for my money to be invested?

This will depend on the availability of the deals and if there are deals pertaining to the
strategy chosen.

In how many deals will my money be invested?

This depends on the availability and size of the deals specific to the strategy in which
your money is invested. Your money may be invested in several deals with different
maturities but always in the strategy that you have chosen.

What happens if there are no available deals?

You will stay in queue until the first deal in the strategy you have chosen becomes
available. We give priority on a first come, first serve basis.

Do I get any return while my money is in queue?

You will start earning a return ONLY after the auto-bid makes an investment in the
strategy you have chosen.

Do I get a notification when an investment has been made?

You will receive an email as soon as your funds have been invested. The same
notification will also be available on your dashboard.

Do you give preference to any investor?

The monies are invested on a first-come-first-serve on order priority basis according to
the strategy chosen. This means that if you are the first in queue in the Conservative
strategy, the algorithm will first satisfy your account fully and then move to the next
investor until the trade finance deal is completed. Any balance left unutilized will become
the first in queue to be invested in the next deal in the Conservative strategy.

What is the Auto-bid Reinvest?

You also have the choice of Auto-bid Reinvest, whereby on maturity of the deal, your
capital and accrued income will be reinvested in the chosen strategy or strategies
automatically.

Auto-bid Reinvest

Investors can choose to reinvest the proceeds of their investment from a pre-set
strategy that matches their risk profile.
- This means that on maturity, principal amount plus all accrued return will be
automatically reinvested in the strategy that you had chosen when you
commenced the investment.
- The Auto-bid Reinvest puts your money at work immediately upon maturity of the
previous deal(s), reducing the risk that your money will sit idle in your account.

Can I cancel the Auto-bid or Auto-bid Reinvest?

Yes, you may cancel the Auto-bid function any time you wish during the duration of your
current deal. However, the cancellation of the Auto Bid will take effect upon maturity of
the current deal. Thus, the next deal in queue will not be reinvested automatically until
you decide to re-select this option. There is no cancelation fee when you cancel or deselect Auto-bid Reinvest.

What is the 2-hour cooling off period for?

When you press the order to buy and invest in a particular strategy, the system will block
your order for 2 hours during which time you have the option to cancel the order and not
pay any cancelation fee.
Once the 2-hour period is over, your order is routed into our automated investing system
and thereafter if you cancel the order, you will be charged with the cancelation fee.

SECONDARY MARKETPLACE

Eurivex Agora provides investors the opportunity to buy and sell Notes representing
trade finance deals at a discount or a premium in our secondary marketplace, allowing
for immediate liquidity or very exciting investing opportunities.
Access to the Eurivex Secondary Marketplace is allowed only to those who have valid
trade finance deals (to sell) and available funds in their account (to buy).

How does the Secondary Marketplace work – for sellers

Investors first need to choose a strategy and once they receive confirmation that their
funds have been invested, they will receive a ticket which will state the amount invested,
rate of return and maturity of the deal among other information.
Suppose the investor needs money and does not wish to wait until the maturity of the
deal to receive the funds. Here are the steps to follow and things to consider:
- Select the ‘’Market Place’’ option from the tool bar and under the “Account
Portfolio” section select the trade finance deal and click to “sell”
- Decide type of order – Limit or Market order (It is better to fix the price – i.e. place
“Limit Orders” where you decide the price as opposed to “Market Orders” which
matches your orders to any price available in the marketplace)
- Decide Amount – you can choose all or part of the ticket amount for sale
(Shorting is prohibited. You can sell up to the amount previously invested)
- Decide on price (per note)
- Decide duration of order – Good for the day or Good until Cancelled
- The maximum divergence both on the upside and downside is 10% from par
value, so make sure you watch the market depth before placing “Market orders”
which will match your sell order with the best buy order at a price determined by
the buyer, which may be up to 10% lower than the price when you invested
- You will lose the accumulated return if you decide to sell prematurely
- When a deal is done, you will receive a deal confirmation by email and the details
will also be available on your dashboard
- Our algorithm will amend your investment (remove the deal from your portfolio)
and credit your account with the proceeds which will be available for immediate
withdrawal
- The brokerage fee of 0.05% of the value per ticket is applied and will be
deducted from the proceeds of sale.

How Secondary Marketplace works – for buyers

Investors first need to transfer funds to their account so that they will be allowed to place
purchase orders to buy outstanding trade finance deals that have not yet matured in
order to achieve a satisfactory return.
Suppose the investor wishes to buy deals from the marketplace. Here are the steps to
follow and things to consider:
- Go to Marketplace and check the market depth to see what kind of deals are
available to purchase
- When calculating the value of the deal, remember that all interest is paid on
maturity to the last holder
- Decide type of order – Limit or Market order
- Decide duration of order – Good for the day or Good until Cancelled
- Decide Amount – you can choose all or part of the ticket amount for purchase
- The maximum divergence both on the upside and downside is 10% from par
value, so make sure you watch the market depth before placing “Market orders”
since you don’t wish to buy at a price which may be up to 10% higher than par
value
- When a deal is done, you will receive a deal confirmation by email and the details
will also be available on your dashboard
- Our algorithm will amend your investment (remove the funds from your account)
and provide you with details of your investment in the trade deal showing you the
amount invested, the rate of return and the maturity of the deal
- The brokerage fee of 0.05% of the value per ticket is calculated and added to
your purchase price.

Tips for investors

Check the marketplace depth to see market interest.
- Marketplace operates on Order Priority – i.e. on a first-come-first-serve basis. All
investors are treated equally.
- The accumulated return (interest) is paid on maturity of the deal to the last
holder.
If you are a seller, you should calculate the interest up to the date of the intended
trade and attempt to sell at a higher price than par value. The higher price at
which you sell, the better for you.
If you are a buyer, you should make sure that you don’t overpay for accumulated
interest up to the date of the proposed transaction. The lower the price at which
you buy, the better for you.
- It is better to fix the price – i.e. place “Limit Orders” where you decide the price as
opposed to “Market Orders” which matches your orders to any price available in
the marketplace.
- The maximum divergence both on the upside and downside is 10% from par
value, so make sure you watch the market depth before placing “Market orders”
- Be patient – your orders may be completed or filled partially, so you may need to
repeat your orders the following day(s) until you reach your desired goal.
- The brokerage fees are calculated automatically before you place the order and
are transparently displayed prior to placing the order.
- There is no guarantee that a deal will be concluded on any day.

What is the 2-hour cooling off period for?

When you press the order to buy or sell in the Secondary Marketplace, the system will
block your order for 2 hours during which time you have the option to cancel the order
and not pay any cancelation fee.
Once the 2-hour period is over, your order is routed into our automated trading system
and thereafter if you cancel the order, you will be charged with the cancelation fee.

What are the Open trades available for trading?

The Open trades are those that are active and will mature at a later date than compared
to the current day.
For investor protection, Eurivex does not allow trades to occur on open trades that
mature shortly

What are the Distressed trades available for trading?

Distressed trades are not yet available in the system because we have no tickets that
are in arrears or in default. The provision is there to cover for future cases where a ticket
settlement may be delayed or will be in default and hence if the current holder does not
have the appetite to wait until the matter is resolved, the investor decides to sell at a
substantial discount. In such a case, another investor with such risk appetite may step in
and buy the notes to hold until the situation is resolved in the hope and on the
expectation that the recovery money/price is higher than the traded price.

DEPOSITS/WITHDRAWALS

How can I fund my account?

When you open your account, we provide you with details of where we hold “Eurivex
Clients’’ bank accounts and this is where you should transfer funds. Please make sure
you mention your Login number and your full name when transferring funds to us to help
us trace the money and immediately credit your account.
Please make sure you transfer the money from the bank account location country which
you specified in your account opening application.

Why do you ask for my IBAN or bank account details?

We need this information to be able to meet our regulatory obligation of operating in line
with the EU’s anti-money laundering regulations, which means we need to know your
bank details and to make sure that future withdrawals from your account are made to the
same bank account from where you transferred money to us. Kindly note if you provide
an incorrect IBAN, there will be an administration charge as well as possible delays in
crediting the funds to your account, therefore please double check your details to avoid
such instances.

Will I be notified that the funds have been credited to my account?

Yes, you will receive an email confirmation notifying you that we have credited your
account with the money received, net of bank transfer charges. This information will also
be available on your dashboard.

How long does it take for my account to be credited?

It all depends on your bank and in what method you have transferred funds to us. When
we receive the money, it is immediately credited to your account provided your
application has been accepted and the IBAN details match with the one you provided
prior to sending the funds.

Why did you reject and return the money that I sent to you?

This may happen in the event when you send us the money before your application to
open an account with Eurivex is approved.
Another rejection possibility is when you send us money from a bank account from
another country different than the one you specified at the time when you applied for the
account. (In the account opening form, we ask you the location country of your bank
account).
Another reason for returning funds back is when you transfer money from a bank
account that does not match your name or is from other third parties, or legal entities.

Can somebody else make a transfer on my behalf?

No. We only accept money when the transfer is made by you from your personal bank
account.

Can I transfer money to you from my company bank account but for my personal benefit?

No. You need to have and maintain a personal bank account in your name. Any
transfers from your company, even if it is owned 100% by you will be rejected.

Can I transfer funds to you by using my card?

No. We only accept bank transfers.

Do you accept cash deposits?

No. We only accept bank transfers. We don’t deal in cash transactions.

How do I withdraw funds?

You can withdraw funds by pressing the ‘Withdraw’ button and choose the amount to
withdraw.
The money will be transferred to the bank account from where you initially transferred
funds to Eurivex.

How long does it take to withdraw funds?

First, you need to make sure that you have available funds for withdrawal. Once we
receive your withdrawal request, and it is approved by our Administration department,
the transfer request will be forwarded to our bank for immediate settlement according to
your instructions.

Can I withdraw money from my account to the account of somebody else?

No, funds can only be withdrawn to the bank account from where you made the initial
transfer to us.

Can I transfer money from my account to another Eurivex client?

Yes, provided you can justify the reason as to why you wish to do this. Please note that
reasonings such as “gift”, “present” or friendship gestures are not allowed and will be
rejected.

Can I transfer Notes held in my name to another Eurivex client?

You cannot transfer Notes to another Eurivex client. You may however place a sell order
in the Secondary Marketplace.

INCOME - RETURN

How can you pay a higher return than comparable bank deposit rate?

When a trade finance facility is provided by ETFL to Suppliers who sell their invoices and
receive advance cash before maturity of the invoice, ETFL charges the Supplier
Discount and Administration fees, similar to what the banks charge their customers for
offering a similar service.
The difference is that while banks keep all the charges for themselves, ETFL passes a
big percentage of the fee income to investors.
Essentially the investor acts as the bank because your money is used for trade finance
deals.

How can you give a better return than a bank deposit on credit insured deals?

The reason why an investor receives 2.5% annual return on the Conservative strategy
invested Notes that are credit insured is to cover the higher risk of making the
investment via Notes issued by ETFL, which are not rated.
As explained earlier, investors are buying the Notes issued by ETFL but not directly the
trade facilities that have been credit insured in the case of the Conservative strategy
investments. Although the trade facilities have been pledged to the benefit of the
Noteholders, you are essentially running a higher risk of investing in ETFL, which is not
rated.
To account for this risk, the return is higher and better than leaving the money in a bank
current account.

Why do I receive different return from the strategies?

The stated return on each Note varies depending on the credit risk of the underlying
investment. Strategies with greater credit risk are assigned higher returns while those
with a lower risk, a lower rate of return.

When do I receive the return?

The return is paid on maturity to the last holder of the ETFL Notes.

How is the transaction completed?

When the Auto-bid makes a successful investment in the strategy you have chosen, you
purchase the ETFL Notes and for this you receive a transaction confirmation, called your
ticket. On maturity, either the ticket will mature, and the funds will be credited back to
your account or we buyback the Notes from you at principle plus accrued return,
adjusted through the price, and transfer the proceeds back to your account when a
debtor or Supplier settle their obligation earlier.
If you have selected the Auto-bid Reinvest button, the proceeds will be invested again in
a new deal of the same strategy you have chosen. If the Auto-bid Reinvest is not
activated, the proceeds will be credited to your account and the money will be available
either for withdrawal or perhaps you may wish to buy tickets in the Marketplace with the
available funds.

How is the price determined on maturity?

On maturity, we buyback the Notes from you at principle plus accrued return, adjusted
through the price, and transfer the proceeds back to your account.
For example, you invest €10,000 in the Conservative Strategy on 1 October via Auto-Bid
so you purchase 10,000 PLNs at the price of €1 per Note with a rate of return of 2.5%
per annum and maturity in 60 days on 30 November. The return is €41.10
(10,000x2.5%x60/365).
On 30th November or a couple of days before, in the event of a buyback of the 10,000
Notes from you at the price of 1.0041, you will receive €10,041.10 in your account.

If I decide to sell my PLNs before maturity, do I lose the accrued income?

Yes, this is because the return is paid to the last holder of the Notes on maturity.
However, you can secure the accumulated return by adjusting the price at which you
wish to sell your Notes higher to compensate for the accrued income.

Does the accrued income show on my dashboard?

Yes, when you view the dashboard, all the information is available, including the accrued
income or return.

Can I call you to help me fix the price at which I wish to sell or buy?

We don’t offer investment advice and are not in a position to help you determine the
price at which you wish to trade. Investors should decide for themselves how, when and
at what price they wish to trade. Please see our help videos posted online for additional
explanations. If you are not sure, the best strategy is to wait until maturity and let the
deal expire and cancel the Auto-bid Reinvest function.

Is the return gross?

Yes in all cases, all return calculations are gross without accounting for transaction,
custody fees or other charges as applicable.

FEES and CHARGES

What is the Custody fee?

The custody fee of €15 is applied by Eurivex for the safe keeping of your Notes. This is
charged on a “flat-fee” basis, which means it does not matter if your total investment with
us is €1,000 or €100,000, the same €15 fee will apply per client. This is an annual fee so
even if you made an investment once through our platform, you will still be required to
pay this fee.

When is the custody fee deducted?

The custody fee applies during the calendar year (Jan-Dec) in which you have made
your investment. Even if your first investment is made in December, you will still be
required to pay the €15 custody fee. The Fee is deducted either on your first withdrawal
or in December.

When are the brokerage fees charged?

The brokerage fee applies only on successful investments made via Auto-bid, Auto-bid
Reinvest as well as successful trades transacted in the Eurivex Marketplace.
The brokerage fee of 0.05% of the value per ticket is applied on every successful
investment in Auto-bid, Auto-bid Reinvest when you purchase the Notes, or in the
Secondary marketplace when you sell or buy tickets/Notes. If your order expires, you will
not be charged.

When do you charge the Auto-bid cancel fee?

When you cancel the Auto-bid function a fee of €10 is applied per cancellation two hours
after you press Auto-bid. If you cancel within the first two-hours of pressing Auto-bid, no
charges apply.

BUYBACK

In which cases do you buyback the Notes?

When ETFL discounts an invoice from the Supplier, the trade debtor must settle the
outstanding invoice amount on the maturity or due date of the invoice. Sometimes, trade
debtors settle invoices early, sometimes a bit late, or sometimes they settle in batches
together with other invoices.
Suppliers may also decide to reduce their outstanding balance with ETFL to reduce the
facility charges, or because they may not need the full amount of the facility available to
them.
In all such cases but mostly because of early settlement of invoices, we buyback the
Notes from investors before the maturity of the Notes.

What happens to the capital invested and return?

When a buyback of your Notes is made, you are essentially selling the Notes to us and
you will receive all your capital invested, plus the return.

Is the return exactly the same as the return stated on my original ticket?

Yes, the return is exactly the same as that stated on your original ticket.

TAXATION

Do you deduct taxation at source on the income generated from the Notes?

Eurivex does not deduct taxation at source on income generated from the Notes. It is the
responsibility and duty of every investor to declare all types of income when submitting
their annual tax returns to the relevant tax authorities of the country where they are tax
resident.

Is the income from the Notes classified as “interest” income?

Eurivex will buy the Notes on maturity from investors at a price which takes into
consideration the return accumulated on the deal, in which case, the income from the
Notes will be classified as capital gains, which at present are not taxed for Cyprus
residents.
The reason for this is because many times, Debtors may settle the outstanding balance
before maturity, or the Supplier may reduce the facility amount to avoid getting charged
additional charges. In such a case, Eurivex buys the Notes at a higher price from the par
value to account for the income accumulated on the specific Notes.
For example, you invest €10,000 in the Conservative Strategy on 1 October via Auto-Bid
so you purchase 10,000 PLNs at the price of €1 per Note with a rate of return of 2.5%
per annum and maturity in 60 days on 30 November. The return is €41.10
(10,000x2.5%x60/365).
On 30th November or a couple of days before, if we buyback the 10,000 Notes from you
at the price of 1.0041, you will receive €10,041.10 in your account. Since you purchased
the ETFL Notes at 1 and sold the Notes on or before maturity at 1.0041, you have
realized a capital gain on sale of financial instruments, which is not liable to taxation for
Cyprus residents.

Disclaimer & Regulatory information
Eurivex Ltd is a Cyprus Investment Firm, authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC), License number 114/10. Company Reg. HE 255430. Headquartered and based in Cyprus, member of EU.

Risk warning: Investing in financial instruments and other derivatives involves a high degree of risk and may not be suitable to all investors. Trading in such financial instruments can result in both an increase and decrease in capital. If you invest through Eurivex Ltd, the value of investments may go down and your capital will be at risk. Eurivex Ltd operates a secondary market but there is no guarantee that all buy/sell orders will be completed at the desired prices and there is a risk that an order may not be completed in the Eurivex secondary market if there is no matching order. There is no guarantee that you will be able to exit early by selling your investment. Eurivex Ltd does not provide investment, tax or legal advice. If you are unsure about the suitability of an investment, you should speak to a financial adviser. Please refer to our Risk Warning available on our web site for further information.