Common use of Protected CFDs and CFDs on margin Clause in Contracts

Protected CFDs and CFDs on margin. On its Website, the Company is entitled to provide financial services of Contracts for Difference (CFD) with intrinsic protection (Protected CFDs). The risk of loss for Protected CFDs is limited to 50% of the sum invested by the Client in a particular CFD contract. Clients may choose to opt out from the features offered by Protected CFDs by choosing the option to use the balance in their trading account in order to keep a CFD position open (“CFDs on margin”). In this instance, when the loss for a position reaches 50%, an additional 20% of the original investment amount is reserved from the Client’s account. If the CFD position takes further losses, the Client’s available balance is further reduced by 20% accordingly. The Client can limit the additional funds reserved on his account balance by specifying his acceptable level of loss for a CFD position. In both features of CFDs described above, the Company offers (1) margin close-out rule set a 50% to ensure Clients’ margin is not eroded close to zero; and (b) negative account balance protection i.e. the Client’s losses may never exceed the total amount of funds available in the Client’s account. In addition, the risk of loss in relation to the corresponding potential benefits for CFDs described above, is reasonably understandable in light of the particular nature of the proposed financial contract.