I This document constitutes the base prospectus of ... - Volksbank AG

3.4 Risks Regarding the Securities
General
The purchase of Securities entails certain risks, which vary depending on the specification and type of the
Securities. Generally, instruments such as the Securities involve a substantial degree of risk of losing up to
the entire capital invested, in addition to the costs incurred in financing such investment, and any transaction
costs.
Each investor should determine whether an investment in Securities is appropriate in its particular circumstances.
An investment in Securities requires a thorough understanding of the nature of the relevant transaction.
Investors should be experienced with respect to an investment and be aware of the related risks.
An investment in the Securities is only suitable for investors who:
ß have the requisite knowledge and experience in financial and business matters to evaluate the merits
and risks of an investment in the Securities and the information contained or incorporated by
reference in this Prospectus or any applicable supplement;
ß have access to, and knowledge of, appropriate analytical tools to evaluate such merits and risks in
the context of the investors particular financial situation and to evaluate the impact the Securities
will have on their overall investment portfolio;
ß understand thoroughly the terms of the relevant Securities and are familiar with the behaviour of
the relevant Underlyings (as these are defined by § 3, Part B(4) of the the Terms and Conditions of
the Notes) and financial markets;
ß are capable of bearing the economic risk of an investment in the Securities until the maturity of the
Securities; and
ß recognise that it may not be possible to dispose of the Securities for a substantial period of time, if
at all before maturity.
The trading market for the Securities may be volatile and may be adversely impacted by many events.
Securities may be subject in particular to the following risks:
Security Holders exposed to Compartment Asset risks
The repayment of principal and the payment of interest or (where applicable) a redemption amount on the
Securities issued through each individual Compartment of the Issuer depends entirely on the proceeds from,
the value of, and/or (if applicable) the accrual of earnings from the Compartment Assets of such Compartment
(see more, 2.2 The Compartment Assets and 3.1 Risk Factors Relating to the Issuer Special
purpose entity; limited assets and limited liability; limited recourse of Security Holders; Management Services
Fees). To the extent that no proceeds become available from a Compartment Asset, Security Holders
will suffer a shortfall and, potentially, total loss of their investment. Each type of Compartment Asset possesses
certain inherent risks, of which prospective investors should be aware, and consider, in addition to
those risks associated with the Securities.
Risks of Main Compartment Assets: Debt Instruments
Subject to the type of the Securities issued, the Issuer may purchase, as Main Compartment Assets relating
to individual Issuances, certain Debt Instruments (such as bonds, debentures or money-market instruments).
Debt Instruments are, frequently, not unlike the instruments offered to investors under the Debt Issuance
Programme, types of securities (see, more specifically, 2.5.1 Debt Instruments). Many of the general
risks applicable to the Securities (as well as, subject to the type of the Debt Instrument in question, certain
special risks, as provided in 3.5 Special Risks of Individual Specifications and Categories of Securities
Risks of individual product categories) described herein apply to Debt Instruments also. In general such
risks concern the risk of failure of the Obligors of the Debt Instruments to fulfil their obligations as provided
by the terms and conditions of the Debt Instruments (credit risk), failing which Security Holders
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