Citi Global Wealth DiSCLoSUreS | | 108 Investments OTC derivative transactions involve risk and are not suitable for all different financial instruments and other products, and can be prohibited by law and may result in prosecution. investors. Investment products are not insured, carry no bank or expected to perform or seek to perform investment banking and government guarantee and may lose value. Before entering into other services for the issuer of such financial instruments or other Other businesses within Citigroup Inc. and affiliates of Citigroup these transactions, you should: (i) ensure that you have obtained products. The author of this Communication may have discussed Inc. may give advice, make recommendations, and take action in and considered relevant information from independent reliable the information contained therein with others within or outside Citi, the interest of their clients, or for their own accounts, that may sources concerning the financial, economic and political conditions and the author and/or such other Citi personnel may have already differ from the views expressed in this document. All expressions of of the relevant markets; (ii) determine that you have the necessary acted on the basis of this information (including by trading for Citi’s opinion are current as of the date of this document and are subject knowledge, sophistication and experience in financial, business and proprietary accounts or communicating the information contained to change without notice. Citigroup Inc. is not obligated to provide investment matters to be able to evaluate the risks involved, and herein to other customers of Citi). Citi, Citi’s personnel (including updates or changes to the information contained in this document. that you are financially able to bear such risks; and (iii) determine, those with whom the author may have consulted in the preparation The expressions of opinion are not intended to be a forecast of having considered the foregoing points, that capital markets of this communication), and other customers of Citi may be long future events or a guarantee of future results. Past performance is transactions are suitable and appropriate for your financial, tax, or short the financial instruments or other products referred to in not a guarantee of future results. Real results may vary. business and investment objectives. this Communication, may have acquired such positions at prices and market conditions that are no longer available, and may have Although information in this document has been obtained from This material may mention options regulated by the US Securities interests different from or adverse to your interests. sources believed to be reliable, Citigroup Inc. and its affiliates do not and Exchange Commission. Before buying or selling options you guarantee its accuracy or completeness and accept no liability for should obtain and review the current version of the Options Clearing IRS Circular 230 Disclosure: Citi and its employees are not in the any direct or consequential losses arising from its use. Throughout Corporation booklet, Characteristics and Risks of Standardized business of providing, and do not provide, tax or legal advice to this publication where charts indicate that a third party (parties) Options. A copy of the booklet can be obtained upon request from any taxpayer outside Citi. Any statement in this Communication is the source, please note that the attributed may refer to the raw Citigroup Global Markets Inc., 390 Greenwich Street, 3rd Floor, New regarding tax matters is not intended or written to be used, and data received from such parties. No part of this document may be York, NY 10013. cannot be used or relied upon, by any taxpayer for the purpose of copied, photocopied or duplicated in any form or by any means, or avoiding tax penalties. Any such taxpayer should seek advice based distributed to any person that is not an employee, officer, director, If you buy options, the maximum loss is the premium. If you sell put on the taxpayer’s particular circumstances from an independent tax options, the risk is the entire notional below the strike. If you sell advisor. or authorized agent of the recipient without Citigroup Inc.’s prior call options, the risk is unlimited. The actual profit or loss from any written consent. trade will depend on the price at which the trades are executed. The Neither Citi nor any of its affiliates can accept responsibility for Citigroup Inc. may act as principal for its own account or as agent for prices used herein are historical and may not be available when you the tax treatment of any investment product, whether or not the another person in connection with transactions placed by Citigroup order is entered. Commissions and other transaction costs are not investment is purchased by a trust or company administered by an Inc. for its clients involving securities that are the subject of this considered in these examples. Option trades in general and these affiliate of Citi. Citi assumes that, before making any commitment document or future editions of the document. trades in particular may not be appropriate for every investor. Unless to invest, the investor and (where applicable, its beneficial owners) noted otherwise, the source of all graphs and tables in this report have taken whatever tax, legal or other advice the investor/ Bonds are affected by a number of risks, including fluctuations in is Citi. Because of the importance of tax considerations to all option beneficial owners consider necessary and have arranged to account interest rates, credit risk and prepayment risk. In general, as transactions, the investor considering options should consult with for any tax lawfully due on the income or gains arising from any prevailing interest rates rise, fixed income securities prices will fall. his/her tax advisor as to how their tax situation is affected by the investment product provided by Citi. Bonds face credit risk if a decline in an issuer’s credit rating, or outcome of contemplated options transactions. creditworthiness, causes a bond’s price to decline. High yield bonds This Communication is for the sole and exclusive use of the intended are subject to additional risks such as increased risk of default and None of the financial instruments or other products mentioned recipients, and may contain information proprietary to Citi which greater volatility because of the lower credit quality of the issues. in this Communication (unless expressly stated otherwise) is (i) may not be reproduced or circulated in whole or in part without Finally, bonds can be subject to prepayment risk. When interest rates insured by the Federal Deposit Insurance Corporation or any other Citi’s prior consent. The manner of circulation and distribution may fall, an issuer may choose to borrow money at a lower interest rate, governmental authority, or (ii) deposits or other obligations of, or be restricted by law or regulation in certain countries. Persons while paying off its previously issued bonds. As a consequence, guaranteed by, Citi or any other insured depository institution. who come into possession of this document are required to inform underlying bonds will lose the interest payments from the themselves of, and to observe such restrictions. Citi accepts no investment and will be forced to reinvest in a market where Citi often acts as an issuer of financial instruments and other liability whatsoever for the actions of third parties in this respect. products, acts as a market maker and trades as principal in many Any unauthorized use, duplication, or disclosure of this document is prevailing interest rates are lower than when the initial investment was made.