Currency Risk Hedging

Currency risk hedging at "Amaranth Capital" JSC

1. The main principles of the hedging policy of "Amaranth Capital" JSC (hereinafter - the "Company") are as follows:
   • The adequacy of the currency risk assessment and risk management system in accordance with the volume and complexity of the Company's transactions that carry currency risk;
   • Regular monitoring of positions requiring hedging, hedging transactions, and the Company's counterparty in a hedging transaction until the transaction is executed;
   • Minimization of costs for conducting hedging transactions;
   • Ensuring the maximum possible efficiency of hedging transactions in a competitive market environment;
   • Ensuring a system of measures to combat money laundering and terrorist financing when conducting transactions.
2. The following transactions may be used as hedging instruments:
   • Conversions;
   • Currency swaps;
   • Currency futures contracts;
   • Other types of derivative financial instruments.
3. Any hedging transaction shall have the following characteristics:
   • A hedging transaction shall reduce the amount of potential losses (lost profits) on a transaction involving the hedged item.
   • The execution date for a hedging transaction shall be the same as or later than the execution date for the transaction with the hedged item, while the term of an individual transaction within a hedging transaction may be shorter than the term of the hedged transaction;
   • The volume of the hedging transaction shall correspond as closely as possible to the total volume of transactions involving the hedged item;
   • It is allowed to exceed the volume of the basic asset of a financial futures instrument traded on an organized market and executed for hedging purposes (hedging instrument) the volume of the hedged item within a single hedging instrument if such excess is due to the standardization by the exchange of the volume of the basic asset of a financial futures instrument.
4. The hedged item may be hedged by one or more hedging instruments.
5. It is possible to hedge both individual transactions and groups of transactions with hedged items that have similar risk characteristics.
6. Both exchange-traded and over-the-counter derivative financial instruments can be used as hedging instruments.

"Amaranth Capital" JSC carries out risk management, including currency risk hedging, in accordance with the Risk Management Policy of "Amaranth Capital" JSC.