Commodity Trading Advisor

CFTC RegisteredNFA Member

January 2009Confidential

RISK DISCLOSURE

THE RISK OF LOSS IN FOREX TRADING CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION. IN CONSIDERING WHETHER TO TRADE OR TO AUTHORIZE SOMEONE ELSE TO TRADE FOR YOU, YOU SHOULD ALSO BE AWARE OF THE FOLLOWING:

FOREX TRANSACTIONS ARE NOT TRADED ON AN EXCHANGE, AND THOSE FUNDS DEPOSITED WITH THE COUNTERPARTY FOR FOREX TRANSACTIONS MAY NOT RECEIVE THE SAME PROTECTIONS AS FUNDS USED TO MARGIN OR GUARANTEE EXCHANGETRADED FUTURES AND OPTIONS CONTRACTS. IF THE COUNTERPARTY BECOMES INSOLVENT AND YOU HAVE A CLAIM FOR AMOUNTS DEPOSITED OR PROFITS EARNED ON TRANSACTIONS WITH THE COUNTERPARTY, YOUR CLAIM MAY NOT RECEIVE A PRIORITY. WITHOUT A PRIORITY, YOU ARE A GENERAL CREDITOR AND YOUR CLAIM WILL BE PAID, ALONG WITH THE CLAIMS OF OTHER GENERAL CREDITORS, FROM ANY MONIES STILL AVAILABLE AFTER PRIORITY CLAIMS ARE PAID. EVEN CUSTOMER FUNDS THAT THE COUNTERPARTY KEEPS SEPARATE FROM ITS OWN OPERATING FUNDS MAY NOT BE SAFE FROM THE CLAIMS OF OTHER GENERAL AND PRIORITY CREDITORS. THE HIGH DEGREE OF LEVERAGE THAT IS OFTEN OBTAINABLE IN FOREX TRADING CAN WORK AGAINST YOU AS WELL AS FOR YOU. THE USE OF LEVERAGE CAN LEAD TO LARGE LOSSES ASWELL AS GAINS.

MANAGED ACCOUNTS MAY BE SUBJECT TO SUBSTANTIAL CHARGES FOR MANAGEMENT AND ADVISORY FEES AND THE ACCOUNT MAY NEED TO MAKE SUBSTANTIAL TRADING PROFITS TO AVOID DEPLETING OR EXHAUSTING ITS ASSETS. THIS THIS BRIEF STATEMENT CANNOT DISCLOSE ALL THE RISKS AND SIGNIFICANT ASPECTS OF THE FOREX MARKETS. THEREFORE, YOU SHOULD CAREFULLY REVIEW THIS DISCLOSURE DOCUMENT BEFORE YOU TRADE, INCLUDING THE DESCRIPTION OF THE PRINCIPAL RISK FACTORS OF THIS INVESTMENT.

NATIONAL FUTURES ASSOCIATION HAS NEITHER PASSED UPON THE MERITS OF PARTICIPATING IN THIS TRADING PROGRAM NOR THE ADEQUACY OR ACCURACY OF THIS DISCLOSURE DOCUMENT.

WHO ARE WE?

Capital Ventures, L.L.C. – Who are we?

Capital Ventures, L.L.C. (CV) is a registered Commodity Trading Advisor with the US Commodity Futures Trading Commission and a member firm of the National Futures Association. Founded in 2005 as an investment management firm, Capital Ventures offers experience in FX market analysis and risk management.

Our professional network of investors includes wealth management firms, hedge funds, introducing brokers, tax advisors, financial advisors and other high net worth individuals and institutions. These investors seek to benefit from our resourcefulness and ingenuity in this growing Foreign Exchange asset class.

For our Prime Investors seeking to invest $250,000+, we can discuss tailored solutions to meet specific targeted returns/risk parameters and diversification needs. Our risk management can be adjusted for clients seeking higher or lower volatility to the FX market.

If you have any questions or would like to discuss opening a managed account, please contact:

Capital Ventures, L.L.C.813-375-9228 Tel813-283-9069 Faxinfo@mycapitalventures.comwww.mycapitalventures.com

MEET OUR PRINCIPALS

Capital Ventures, L.L.C. Principals:

Stephen A. I. Hart• Co-founder of Capital Ventures, LLC in 2005 and currently serves as Head of Business Development and Sales• Co-founder and Managing Partner of Valhalla Capital Group, LLC, an Introducing Brokerage firm

Phillip Charles Campbell• Co-founder of Capital Ventures in 2005 and currently serves as Chief Strategist and Risk Manager• Co-founder and Managing Partner of Valhalla Capital Group, LLC, an Introducing Brokerage firm

If you have any questions or would like to speak with either principal:

Stephen Hart866-828-5487 USA Toll Free813-375-9228 Ext 302 USA Direct813-283-9069 FaxStephenHart@mycapitalventures.comSkype: stephen.a.hart

Charles Campbell866-828-5487 USA Toll Free813-375-9228 Ext 301 USA Direct813-283-9069 FaxCharlesCampbell@mycapitalventures.comSkype: charlescampbell1

FC Stone A leader in Foreign Exchange Prime Brokerage services

FC Stone Group, Inc. is a recognized innovator in commodity risk intelligence. Companies around the world depend on FC Stone’s sound risk management strategies to help minimize risk and maximize profit margins. Their depth of knowledge serves clients at every stage of the commodity value chain - from policy decisions to origination, merchandising and production through processing, wholesale and retail.

The Companies within FC Stone Group offer a full spectrum of commodity risk management services. Their companies operate as a coordinated whole; separate, yet capable of providing integrated services for our clients' benefit. They are structured in a way that all of their companies can be utilized to implement the strategies they develop.

FC Stone’s Advantage with CMAC 1000

Transaction costs with FC Stone are a fraction of other brokerages, thereby increasing the model’s profitability.

FC Stone provides access to more liquidity providers, including direct access to all ECNs and prime tier 1 banks.

FC Stone Facilities and AssetsTotal Assets as of August 31, 2008 $2,421.4 Million

2008 Revenues, net of cost of commodities sold

$336.4 Million

Total Stock Holder Equity as of August 31,2008

$227.5 Million

Why should you consider an allocation to our Managed FX accounts?

In the presently changing global markets, investors are seeking opportunities to achieve escalating financial goals by increasing the overall value of their portfolios. These goals are based on two primary characteristics, profit potential and the risks associated with achieving these goals. Over the past few years investors have been increasingly choosing alternative investments, such as managed currencies, as part of a well diversified portfolio.

A managed forex account provides an investor with an option to take part in the forex market and benefit from its high profit potential without having to trade for themselves. Accounts are also actively managed, so the investor is not invested in the market all the time. Commodity Trading Advisors (C.T.A.) regulated by the US Commodity Futures Trading Commission (CFTC) are prepared to go without any trading during periods of elevated risk, uncertainty, or volatility.

Profitable forex trading involves gaining experience and developing criteria to trade against. Using a managed account ensures that all beginner mistakes and emotions are taken out of the equation as trades are only made based on strict criteria, and are executed by experts.

Main Advantages of a Managed Account Capturing Alpha and Managing Risk

In today’s FX environment, defined by wild price and liquidity fluctuations, Capital Ventures has developed high frequency automated trading models designed to capture and preserve alpha and effectively manage risk.

Past performance is not indicative of future results.

CUSTOMIZATION TO MEET YOUR WEALTH MANAGEMENT NEEDS

CMAC 1000 THROUGH FC STONE

CMAC 1000 PROGRAM SUMMARY

Primary Market Spot Forex Accepting Funds Yes

Registration CTA Min. Investment $250,000

Managed Accounts Yes Notional Funding Yes

Win Ratio 99% Management Fee 0%

Current Max Capacity

$1,000,000,000

Performance Fee 45%

Max Margin/Equity 3% Other Fees None

OVERVIEW OF OUR CMAC 1000 OBJECTIVES

Our CMAC 1000 model seeks to target distinction in risk adjusted returns:

• Generates tremendous returns, with minimum daily targets of 1/2% to 1% ROR• All trading functions are fully automated and systematic ( No guess work or discretionary trading)• Program managed to a maximum use of 3% of the fund’s margin for opening trade positions• Individual and Institutional Investors will be provided a managed account with FC Stone• Complete capital control and account transparency• No lock up period – allows for liquidity and access to all funds usually within 48-72 hours

Investment in FX is not suitable for all investors. Past performance is not indicative of future results.

Presently, our trades are executed through the Currenex platform and cleared through FC Stone.

With our Managed FX program, we offer our investors the opportunity for reduced portfolio volatility risk

Non-correlation to traditional asset classesPotential for enhanced portfolio returns Opportunities in bull and bear marketsAbility to profit independent of the economic environment Global diversification in liquid marketsStability and transparency of the global currency market

An essential portfolio component : Managed FX through CMAC 1000

NO INTERNET TRADING - Our servers are placed in the Equinix IBX Data Center in Secaucus, NJ, allowing for direct system integration with all the major liquidity providers. This data center provide a minimum N+1 redundancy for every IBX power system, delivering more than 99.9999% uptime availability. We minimize our network latency which allows us to trade in the shortest times possible.

97% OF ALL TRADES ARE EXECUTED AND CLOSED IN PROFIT IN SECONDS. Remaining close with a mathematical certainty.

No trades remaining open past the close of the business day.

Presently trades up to 30 Currency Pairs (to be increased with added data streams)

Goal of 50-150 + trades per day and a DAILY TARGET RETURN OF 1/2% to 1% ROR

Risk management includes multiple safeguards to shut down system and positions in volatile markets

Multi-strategy: 7 trading programs within this one model (all mathematical, all variables must align)

Asset Allocation: 100% Spot Foreign Exchange market (forex)

Minimum Investment is only US$250,000

Retirement account approved. IRA’s and 401k and pensions.

Why does our CMAC 1000 trading model stand out in the crowd?

Past performance is not indicative of future results

How does our CMAC 1000 system tradeThe system reviews and analyzes 209 currency charts per currency pair, sourcing the movement in price in the micro to millisecond time frame. Trades are determined based on the correlation of seven programs. This is designed to ensure that a minimum level of mathematical certainty is attained for successful trade completion.

More than ninety percent of all trades are closed within a few milliseconds to seconds. Trades open longer, are the result of ECN filtered feeds slowing down the ability of the platform to close the trades in the shorter time frame. It is our goal that trades lasting longer than our targeted time are extinguished immediately.

Frequency and shortness of the trades duration is directly proportional to the purity and strength of the data stream and feed from our liquidity providers. Unfiltered feeds will virtually eliminate all open trades beyond our microsecond to millisecond target.

Next to unfiltered feeds is the issues of location, speed of the ECN, trading platform and equipment, which are of paramount priority. CMAC 1000 has ensured that we have taken all these variables into account and are working to continue to integrate the relationship of additional top tier prime banking relationships for continued improvement of the model’s efficiency.

The CMAC 1000 developers, mathematicians, engineers and programmers have spent over 5 years and millions to develop this technology and solution. No cost has been spared, whether financial, technical or with regard to their human resources in helping to achieve the goal of the CMAC 1000 model from achieving unparallel reliability, security and performance.

Past performance is not indicative of future results

One of the most important considerations in the development of the CMAC 1000 model is risk management. The risk management criteria has been segmented into trade and technical considerations. A brief outline of the some of the specific risk management criteria are outlined below.

Kill Switch Specific to each currency pair is a pre-determined time allotment to complete a trade cycle. If for any reason this time allotment is exceeded, the kill switch is programmed to cut the trade immediately.

Protective Stop LossThis provides a second measure of security on each trade. This quickly ends a trade if it goes against us, regardless of whether it executes within the allowable time frame of the kill switch.

Margin ControlsOur margin criteria calls for maximum use of 3% of the portfolio’s margin at any one time.

Sequential TradingTrades are placed sequentially, allowing only one trade to open and close at a time. This prevents the cumulating of per trade exposure that would result from simultaneous trades being placed at once.

Umbrella Kill SwitchIn the event of a political, financial or natural disaster (i.e. fire, flood, tsunami, etc.), the system will automatically shut down any active trades. Criteria is also pre-established for redundancies in the events of power failures, fires, etc. to allow for the immediate shift of operating controls to alternate locations.

The mix of risk management features including margin usage percentage, protective stop losses, equity stops, etc. are variable and is customizable to each client’s specific requirements, as regards risk tolerance and profitability goals.

Explanation of our Risk Management

FAQ – Frequently Asked QuestionsWhat is the minimum to invest? US $250,000

Are my funds secure? Could the funds be stolen?Clients deposit their funds directly with FC Stone, a regulated Prime Brokerage with over $2bn in assets. The CMAC 1000 program allows clients funds to be traded directly by us on the basis of a signed limited power of attorney. This authorizes FC Stone to allow us to access the funds to trade on the clients behalf. Funds can never be withdrawn or transferred by anyone other than the investor.

If I’m an International Client – can I invest and will I have to pay taxes to the USA on my earnings?Our program is open to all clients, both domestic and international, granted they are not in a labeled jurisdiction that fosters or promotes Anti-money Laundering or the funding of terrorist or criminal activities.

If you are an international citizen or entity that does not consider the USA their domicile and does not earn a living here in the USA, then you may complete a W8 form with FC Stone, that bypasses them making a withholding from your gains for taxes. The funds must be coming from an international bank in your name and upon withdrawal, they should also be returning to the bank of origin or one outside of the USA, and held in the name of the client / entity.

When can I get started? How often will I be able to access my funds? You can complete the application for FC Stone right away. The processing time is usually 4-7 business days. From there, you can fund your account and FC Stone and usually have funds allocated next day.

Clients can process a request for a withdrawal at any time. Funds are usually disbursed within 2-3 business days.

The CMAC 1000 Managed foreign exchange program can bridge the gap in your overall investment portfolio.

For more information please contact us at info@mycapitalventures.com