Common use of Liability for margin calls Clause in Contracts

Liability for margin calls. The Client is responsible for payment of margin calls, deposits and other security as requested by MTC and the following is drawn to Client’s attention: • Liability to pay an initial margin accrues at the time the trade or deal is executed regardless of when a call is made. Liability to pay a variation margin accrues at the time the margin comes into existence, regardless of when a call is made. • Client liability is the total of all margin calculation provisions. • Should MTC make a margin call the Client is required to deposit funds into their account within 24 hours or the Account will be taken to be in default. In some circumstances, MTC may require payment within shorter time frames, (eg in times of increased market volatility) and payment will need to be made within these time frames in order to meet margin requirements. • We may make attempts to contact Clients by their preferred method of communication. MTC are under no obligation to contact Clients. Where the market moves quickly or open positions are moving, we reserve the right to close out such positions under this Agreement without making any margin demand or any contact with the Client. Failure to meet margin call requirements may mean that we limit or close out positions in accordance with the terms of this Agreement. It is the Client’s sole responsibility, 24 hours a day, to monitor their own positions and maintain the required margin. • A margin call is triggered when your Net Asset Value reaches a certain point of your available margin. However, a margin call at the defined price is not always guaranteed. In an extremely fast moving market or an intervention/black swan event, quotes coming in from liquidity providers may be too steep or rapid for MTCs platform or aggregator to execute the closing of your trade(s) at the proposed margin call levels. This margin slippage may create a negative balance in your account. • Mt.Xxxx uses an automated transaction monitoring and risk-management system to prevent a client's balance from falling below the level of their initial deposit. Our margin call and stop out policies in fact prevent this prior to happening and can be found on our trading terms and conditions page on the xxx.xxxxxxxxxxxxxxx.xxx website. In rare instances and black swan events however, it may be possible for an account to run negative and breach margin call software metrics. As such and in the event of this rare occurrence, it may be possible that you owe money to Mt.Xxxx due to holding a standing negative balance in your trading account. It must be fully understood by the client that these situations are completely out of the control of Mt.Xxxx, and it will be the responsibility of the client to cover such negative balances should they occur. • Preventative measures vs reactive measures are paramount to ensuring that black swan events pass by leaving Mt.Xxxx unscathed. Some of these prevention measures implemented at Mt.Xxxx include stringent risk management of our full coverage accounts, strong capital adequacy, responsible and reduced leverage and margin management, and top tier software implementation and utilization. These help to greatly reduce chances of such events occurring in the first place. Multi-bank liquidity aggregation as used on our DMA and ECN feeds also helps immensely to ensure a constant and steady stream of quotes during black swan events vs single sourced liquidity, which may disconnect for hours at a time. All potential safeguards serve as preventative measures during black swan events, and are fully implemented at Mt.Xxxx. • Any reduction in the application of Limited Hours trading means that open positions will be marked to market after close of trading and Client margin requirements will vary accordingly. If Clients do not wish to accept this additional risk, any affected Contracts may be closed out at any time after notice of such reduction has been given.

Liability for margin calls. The Client is responsible for payment of margin calls, deposits and other security as requested by MTC and the following is drawn to Client’s attention: • ●Liability to pay an initial margin accrues at the time the trade or deal is executed regardless of when a call is made. Liability to pay a variation margin accrues at the time the margin comes into existence, regardless of when a call is made. • ●Client liability is the total of all margin calculation provisions. • ●Should MTC make a margin call the Client is required to deposit funds into their account within 24 hours or the Account will be taken to be in default. In some circumstances, MTC may require payment within shorter time frames, (eg in times of increased market volatility) and payment will need to be made within these time frames in order to meet margin requirements. • ●We may make attempts to contact Clients by their preferred method of communication. MTC are under no obligation to contact Clients. Where the market moves quickly or open positions are moving, we reserve the right to close out such positions under this Agreement without making any margin demand or any contact with the Client. Failure to meet margin call requirements may mean that we limit or close out positions in accordance with the terms of this Agreement. It is the Client’s sole responsibility, 24 hours a day, to monitor their own positions and maintain the required margin. • ●A margin call is triggered when your Net Asset Value reaches a certain point of your available margin. However, a margin call at the defined price is not always guaranteed. In an extremely fast moving market or an intervention/black swan event, quotes coming in from liquidity providers may be too steep or rapid for MTCs platform or aggregator to execute the closing of your trade(s) at the proposed margin call levels. This margin slippage may create a negative balance in your account. • ●Mt.Xxxx Cook uses an automated transaction monitoring and risk-management system to prevent a client's balance from falling below the level of their initial deposit. Our margin call and stop out policies in fact prevent this prior to happening and can be found on our trading terms and conditions page on the xxx.xxxxxxxxxxxxxxx.xxx website. In rare instances and black swan events however, it may be possible for an account to run negative and breach margin call software metrics. As such and in the event of this rare occurrence, it may be possible that you owe money to Mt.Xxxx Cook due to holding a standing negative balance in your trading account. It must be fully understood by the client that these situations are completely out of the control of Mt.XxxxCook, and it will be the responsibility of the client to cover such negative balances should they occur. • Mt.Cook Financial ●Preventative measures vs reactive measures are paramount to ensuring that black swan events pass by leaving Mt.Xxxx Cook unscathed. Some of these prevention measures implemented at Mt.Xxxx Cook include stringent risk management of our full coverage accounts, strong capital adequacy, responsible and reduced leverage and margin management, and top tier software implementation and utilization. These help to greatly reduce chances of such events occurring in the first place. Multi-bank liquidity aggregation as used on our DMA and ECN feeds also helps immensely to ensure a constant and steady stream of quotes during black swan events vs single sourced liquidity, which may disconnect for hours at a time. All potential safeguards serve as preventative measures during black swan events, and are fully implemented at Mt.XxxxCook. • ●Any reduction in the application of Limited Hours trading means that open positions will be marked to market after close of trading and Client margin requirements will vary accordingly. If Clients do not wish to accept this additional risk, any affected Contracts may be closed out at any time after notice of such reduction has been given.

Liability for margin calls. The Client is responsible for payment of margin calls, deposits and other security as requested by MTC and the following is drawn to Client’s attention: • Liability to pay an initial margin accrues at the time the trade or deal is executed regardless of when a call is made. Liability to pay a variation margin accrues at the time the margin comes into existence, regardless of when a call is made. • Client liability is the total of all margin calculation provisions. • Should MTC make a margin call the Client is required to deposit funds into their account within 24 hours or the Account will be taken to be in default. In some circumstances, MTC may require payment within shorter time frames, (eg in times of increased market volatility) and payment will need to be made within these time frames in order to meet margin requirements. • We may make attempts to contact Clients by their preferred method of communication. MTC are under no obligation to contact Clients. Where the market moves quickly or open positions are moving, we reserve the right to close out such positions under this Agreement without making any margin demand or any contact with the Client. Failure to meet margin call requirements may mean that we limit or close out positions in accordance with the terms of this Agreement. It is the Client’s sole responsibility, 24 hours a day, to monitor their own positions and maintain the required margin. • A margin call is triggered when your Net Asset Value reaches a certain point of your available margin. However, a margin call at the defined price is not always guaranteed. In an extremely fast moving market or an intervention/black swan event, quotes coming in from liquidity providers may be too steep or rapid for MTCs platform or aggregator to execute the closing of your trade(s) at the proposed margin call levels. This margin slippage may create a negative balance in your account. • Mt.Xxxx Cook uses an automated transaction monitoring and risk-management system to prevent a client's balance from falling below the level of their initial deposit. Our margin call and stop out policies in fact prevent this prior to happening and can be found on our trading terms and conditions page on the xxx.xxxxxxxxxxxxxxx.xxx website. In rare instances and black swan events however, it may be possible for an account to run negative and breach margin call software metrics. As such and in the event of this rare occurrence, it may be possible that you owe money to Mt.Xxxx Cook due to holding a standing negative balance in your trading account. It must be fully understood by the client that these situations are completely out of the control of Mt.XxxxCook, and it will be the responsibility of the client to cover such negative balances should they occur. • Preventative measures vs reactive measures are paramount to ensuring that black swan events pass by leaving Mt.Xxxx Cook unscathed. Some of these prevention measures implemented at Mt.Xxxx Cook include stringent risk management of our full coverage accounts, strong capital adequacy, responsible and reduced leverage and margin management, and top tier software implementation and utilization. These help to greatly reduce chances of such events occurring in the first place. Multi-bank liquidity aggregation as used on our DMA and ECN feeds also helps immensely to ensure a constant and steady stream of quotes during black swan events vs single sourced liquidity, which may disconnect for hours at a time. All potential safeguards serve as preventative measures during black swan events, and are fully implemented at Mt.XxxxCook. • Any reduction in the application of Limited Hours trading means that open positions will be marked to market after close of trading and Client margin requirements will vary accordingly. If Clients do not wish to accept this additional risk, any affected Contracts may be closed out at any time after notice of such reduction has been given.