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# Roles, responsibilities, and risks to consider

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## Roles of WF

As a swap dealer registered with the Commodity Futures Trading Commission (“CFTC”) under the Commodity Exchange Act (“CEA”) and as a security-based swap dealer (“SBSD”) registered with the Securities and Exchange Commission (“SEC”) under the Securities Exchange Act of 1934 (“SEA”), WF Bank, N.A. (“WFBNA”) offers its swaps, security-based swaps (“SBS”), derivatives, and foreign exchange products, services, and transactions (“Covered Products”) solely as principal, and not as an agent, broker, advisor, or fiduciary for its customers, including any such products, services or transactions that may be exempt under the CEA or the SEA. Any agency, brokerage, advisory, or fiduciary service that WFBNA or any of its affiliates (collectively WFBNA and its affiliates “WF”) may otherwise provide to its customers or to their affiliates does not include Covered Products unless otherwise expressly agreed in writing signed by WF, provided that certain brokerage, clearing, and other services may be offered by WF entities other than WFBNA, including, to the extent applicable to these products, WF Securities, LLC (“WFS”) in its capacity as a CFTC-registered futures commission merchant (“FCM”) or as an SEC-registered Broker-Dealer (“BD”).

## Responsibilities of the customers

Unless otherwise expressly agreed or stated herein, WF would be acting at arm’s-length and as a principal party to the contract (and not as an agent or fiduciary). As an FCM or BD, WFS would be carrying a cleared swap and/or a cleared SBS or other position in its customer’s account. In neither case would WF be acting as a financial advisor, except as otherwise described above. Therefore, customers are responsible for making their own evaluations of Covered Products and the risks involved based upon the advice of their own financial, legal, tax, accounting, and other professional advisors. Before entering into such transactions, customers should consider whether the transactions are appropriate for them in light of their individual objectives, experience, and other circumstances.

## Risks to consider

While customers can use Covered Products as an effective hedging tool to reduce market, credit, or other risks associated with an asset or liability, this presumes holding these transactions to maturity and not disposing of the asset or liability during the term of the hedge. Whether customers use such products for hedging or another purpose, customers should satisfy themselves that they sufficiently understand the risks, including (without limitation) the risk of loss in the event of early termination or modification of the transaction, the risk associated with an early repayment or other disposition of the underlying asset or liability prior to the transaction’s maturity, the risk of acquiring a transaction in anticipation of hedging an asset or liability that does not materialize, and the risk that in hindsight it could prove to have been better not to have hedged. Losses and costs could be substantial.

Before entering into any Covered Products customers should carefully read and fully understand all relevant information and disclosures furnished or made available to them by their swap dealer or SBSD (including WFBNA) or other counterparty, swap execution facility, security-based swap execution facility, BD-FCM (including WFS), clearinghouse or otherwise. These include, without limitation, the general and relevant product-specific disclosure documents concerning swap and SBS transactions prepared by the International Swaps and Derivatives Association (“ISDA”), which are available at Trading Disclosures. Transactions described on this website are not bank deposits or FDIC insured, will expose customers to the credit risk of WF, and therefore involve risk of loss to you apart from the market risk associated with the underlying rate, price, or other economic measure on which the transaction is based. Financial information concerning WFBNA is available at: Investor Relations.

## Independent obligations

To the extent any Covered Product is acquired to hedge against interest rate risk, foreign currency risk, commodity price risk, credit risk, equity risk, market or other risks associated with an asset or liability, including a loan or other financing, such transaction would be a separate and independent obligation and would not be contingent on whether or not any such asset or liability is acquired or incurred, or such loan or other financing closes, is outstanding or is repaid, in whole or in part, at any time, subject to any contractual requirement to terminate and settle the transaction early upon any disposition of such asset or liability, including upon the prepayment of such loan or financing, or for other loan-related or financing-related events.

## Informational purposes only

All information, materials, and other content on this website are for general information purposes only, and do not constitute any offer, solicitation, recommendation, commitment, or investment advice of any kind. All terms, prices, and descriptions are for illustration purposes only. Actual prices would be subject to market conditions at deal time, final credit approval, and agreement on deal terms. Nothing on this website is meant to summarize all the terms and conditions that would be contained in definitive legal documentation. Although WF (including, without limitation, WFBNA) may maintain one or more other websites for the purpose of disclosing the risks of Covered Products this website is not intended for such purpose.

The information, materials, and other content on this website are meant for institutional, commercial, and sophisticated, high net worth, customers. Except for certain foreign currency related products and services available to its retail customers, WF does not offer Covered Products to the general public, as such transactions are generally restricted to “eligible contract participants” under and as defined in the CEA, SEA and CFTC and SEC regulations, and other legal requirements and restrictions apply. Customers should ensure that they comply with all legal, contractual, and other requirements and restrictions, including any investment or hedging limitations, that may be applicable to their Covered Products whether established by law, contract, their own governing body, or otherwise.

## Onboarding, documentation, and other prerequisites

Customers interested in entering into any Covered Product with WF should take into account that there are several steps to complete before an offer can be made or accepted, including: credit approval; background checks and other due diligence; customer suitability; onboarding documentation; trading relationship documentation; clearing exemption documentation; account documentation, including online system access; tax forms; and margining, collateral or other credit support arrangements. The foregoing is not a complete list, and requirements may vary by customer or customer type, jurisdiction, trading style (e.g., cleared versus non-cleared), type of product, service, or transaction, and other considerations deemed relevant by WF, including satisfaction of all legal, regulatory, and other requirements, including WF’s policies and procedures.

Under no circumstances shall WF be responsible for any losses, costs, or expenses incurred by any customer as the result of any delay in completing, or failure to complete any such steps, or for WF or any other person or entity declining to offer, accept, or approve any Covered Product for any reason or no reason.

## Applicability of certain regulations

Unless otherwise indicated or agreed, swaps and SBS are offered by WFBNA. As used herein, the term “swap” also includes “foreign exchange forwards” and “foreign exchange swaps” which, although exempted from regulation as “swaps” under the CEA to the extent provided in CEA §1a(47)(E), are subject to certain requirements of the CEA and the CFTC, including business conduct and swap trading relationship documentation requirements.

For purposes of, and to the extent subject to, CFTC Regulations 1.71 and 23.605, please note that this website is “solicitation” of a swap and not a “research report” as defined therein. For the purposes of, and to the extent subject to, Section 15F(j) of the SEA and any SEC rule thereunder, if this communication relates to one or more SBS, this is a solicitation to enter into an SBS and not “research or analysis of the price or market” for an SBS.

If you are a “Special Entity” within the meaning of CFTC Regulation 23.401(c) or SEC Rule 15Fh-2(d), you are hereby notified that these Materials are not, are not intended to be and should not be interpreted as an expression of an opinion within the meaning of CFTC Regulation 23.440 by any person on behalf of WF & Company and its subsidiaries as to whether you should enter into any swap, SBS or trading strategy involving a swap or SBS.

To the extent this website relates to an SBS, as defined in and subject to the SEA and implementing regulations, it is intended only for persons that are eligible contract participants as defined in CEA Section 1a(18) and SEA Section 3(a)(65) and the regulations issued thereunder.

## Not a municipal advisor

WFBNA is not acting as a municipal advisor and the information presented to any customer is not intended to be, and does not constitute, advice within the meaning of Section 975 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

## Corporate & Investment Banking

WF Corporate & Investment Banking (CIB) is the trade names used for the corporate banking, capital markets, and investment banking services of WF & Company and its subsidiaries, including but not limited to WFS, member of NYSE, FINRA, NFA, and SIPC, WF Prime Services, LLC, member of FINRA, NFA and SIPC, and WFBNA, member of the National Futures Association (“NFA”). WFS and WF Prime Services, LLC, are distinct entities from affiliated banks and thrifts.

## WF legal entity varies by product or service

Unless otherwise expressly indicated in offering materials or a written agreement, the following products and services are offered by the respective WF legal entity shown below. Each legal entity is only responsible for its obligations and there is no guaranty for another legal entity’s obligations.

Interest rate products, foreign exchange products, and commodity derivatives subject to the CEA are generally offered by WFBNA.

Physically-settled commodities are generally offered by WF Commodities, LLC or WFBNA.

Equity products and credit protection products are generally offered by WFBNA or WFS. SBS are generally offered by WFBNA.

Clearing services are provided and carried by WFS for its own customers’ accounts.

## Reservation of rights

WF reserves all rights with respect to the information, materials, and other content on this website. This content may not be copied, disseminated, reproduced, or used without the prior written consent of WF (or when WF, with permission, has included copyrighted content belonging to others, without their prior written consent). WF does not guarantee the accuracy or completeness of any content on this website, nor does WF assume any liability for any loss resulting from reliance thereon. Such content is subject to change without notice.

LRC-1021