We are exposed to various market risks as a result of our trading operations, debts obtained to finance our financial derivative activities and instruments, including exchange rate risk, interest rate risk, debt acceleration risk and credit risk. To help us manage our risks, we conduct an assessment of our financial assets and liabilities against market values based on available information and appropriate valuation methodologies. However, the interpretation of market information, as well as the selection of methodologies, requires considerable judgment and reasonable estimates to produce adequate values of achievement. As a result, our valuation estimates do not necessarily indicate the values, which will be realized in the current market. The use of different market approaches and/or methodologies for estimates can have a significant effect on the estimated values of achievement. We also enter into derivative instruments to manage the risks to which we are exposed in accordance with our risk management policy. We do not have derivative instruments for speculative purposes. To further assist our risk management, we perform fair value analyses of our derivative financial instruments, as well as sensitivity analyses of our risk variables and our risk of net exposure. For more details on the results of our valuation analysis, risk management strategies and sensitivity analysis of our derivative financial instruments, see note 33 to our audited consolidated financial statements included elsewhere in this annual report. The Company is exposed to exchange rate fluctuations linked to commodity risk arising from the future revenue associated with copper sales, since both the international price of the metal and the quotation of foreign currencies can affect the amount to be received. Adverse movements in these markets may reduce revenue in reais and increase the volatility of results. To mitigate these risks, the Company entered into hedge transactions accounted for through hedge accounting using financial derivatives designed to simultaneously protect the exposure to foreign exchange rates and to copper price risk. These instruments aim to provide greater predictability to the project’s cash flows and minimize the impacts of market fluctuations. See note 32 to our audited consolidated financial statements included elsewhere in this annual report.