In consideration of Crypto-Markets agreeing to enter into Over-the-Counter (“OTC”) Foreign exchange Contracts with the undersigned (hereinafter referred to as the “Customer”), the Customer acknowledges, understands and agrees that:
1. TRADING IS VERY SPECULATIVE AND RISKY
Foreign Exchange Trading is highly speculative and suitable only for those customers who (a) understand and are willing to assume the economic, legal and other risks involved, and (b) are financially able to assume losses significantly in excess of margin or deposits. Foreign Exchange is not an appropriate investment for retirement funds. The Customer represents, warrants and agrees that the customer understands these risks, that the customer is willing and able, financially and otherwise, to assume the risks of Foreign Exchange Trading and that the loss of the customer’s entire Account Balance will not change the customer’s lifestyle.
2. HIGH LEVERAGE AND LOW MARGIN CAN LEAD TO QUICK LOSSES
The high leverage and low margin associated with Foreign Exchange Trading can result in significant losses due to price changes in Foreign Exchange Contracts, Cross Currency Contracts. Customers must maintain the Minimum Margin Requirement on their Open Positions at all times. It is the customer’s responsibility to monitor his/her Account Balance. Crypto-Markets have the right to liquidate any or all Open Positions whenever the Minimum Margin Requirement is not maintained. Increasing leverage increases risk.
3. PRICES, MARGIN AND VALUATIONS ARE SET BY CRYPTO-MARKETS AND MAY BE DIFFERENT FROM PRICES REPORTED ELSEWHERE
Crypto-Markets will provide prices to be used in trading, valuation of Customer positions and determination of Margin requirements. Although Crypto-Markets expects that these prices will be reasonably related to prices available in the interbank market, prices reported by Crypto-Markets may vary from prices available to banks and other participants in what is known as the interbank market. Crypto-Markets will exercise considerable discretion in setting and collecting margins. Crypto-Markets is authorized to convert funds in Customer’s Account for Margin into and out of such Foreign Currency at a rate of exchange determined solely by Crypto-Markets based on then-prevailing money market rates.
4. TELEPHONE ORDERS AND IMMEDIATE EXECUTION.
Market Orders executed through the Crypto-Markets Trading Desk are completed when Crypto-Markets says “deal” or “done.” At that point, the customer has bought or sold and can not cancel the Market Order. By placing Market Orders through the Crypto-Markets Trading Desk, the customer agrees to such immediate execution and accepts the risk of this immediate execution feature.
5. MARKET RECOMMENDATIONS ARE INFORMATIONAL, CUSTOMER MAKES INDEPENDENT DECISIONS, AND CRYPTO-MARKETS IS NOT AN ADVISER OR A FIDUCIARY TO CUSTOMER
The market recommendations provided by Crypto-Markets do not constitute an offer to buy or sell, or the solicitation of an offer to buy or sell, any Foreign Exchange Contracts, Cross Currency Contracts. Each decision by a Customer to enter into a contract or other transaction with Crypto-Markets and each decision whether a contract or other transaction is appropriate or proper for the Customer is an independent decision by the Customer. Crypto-Markets is not acting as an advisor or serving as a fiduciary to customers. The Customer agrees that Crypto-Markets has no fiduciary duty to the Customer and no liability in connection with and is not responsible for any liabilities, claims, damages, costs and expenses, including attorneys’ fees, incurred in connection with the Customer following Crypto-Markets trading recommendations or taking or not taking any action based upon any recommendation or information provided by Crypto-Markets.
6. RECOMMENDATIONS ARE BASED ON PERSONAL JUDGMENTS AND ARE NOT GUARANTEED
The market recommendations of Crypto-Markets are based solely on the judgment of Crypto-Markets personnel. These market recommendations may or may not be consistent with the market positions or intentions of Crypto-Markets, its affiliates and employees. The market recommendations of Crypto-Markets are based upon information believed to be reliable, but Crypto-Markets can not and does not guarantee the accuracy or completeness thereof or represent that following such recommendations will reduce or eliminate the risk inherent in Foreign Exchange.
7. THERE IS NO CENTRAL MARKET OR CLEARINGHOUSE GUARANTEE OF PAYMENT
EEach Contract is a direct contract between Crypto-Markets and the Customer.There is no clearinghouse and no guarantee by any other party of Crypto-Markets payment obligations to the customer. Customers must look only to Crypto-Markets for performance on all Contracts in the Customer’s Account and for return of any Margin or Collateral.
8. NO GUARANTEES OF PROFIT
There are no guarantees of profit or freedom from loss in Foreign Exchange Trading. The customers have received no such guarantees from Crypto-Markets or from any of its representatives. The customer is aware of the risks inherent in Foreign Exchange Trading and is financially able to bear such risks and withstand any losses incurred.
9. CUSTOMER MAY NOT BE ABLE TO CLOSE OPEN POSITIONS
Crypto-Markets may be unable to close out Customer’s position at the level specified by Customer due to market conditions or other circumstances, and Customer agrees Crypto-Markets will bear no liability for this failure.
10. Third Party Agents
In the event that a customer grants trading authority or control over the Customer’s Account to a third party (the “Trading Agent”), whether on a discretionary or non- discretionary basis, Crypto-Markets shall in no way be responsible for reviewing the Customer’s choice of such Trading Agent or for making any recommendations with respect thereto. Crypto-Markets makes no representations or warranties concerning any Trading Agent; Crypto-Markets shall not be responsible for any loss to customers occasioned by the actions of the Trading Agent; and Crypto-Markets does not, by implication or otherwise, endorse or approve of the operating methods of the Trading Agent. If a customer gives the Trading Agent authority to exercise any of its rights over its account, the customer does so at the customer’s risk. Even though the undersigned grants authority to the Trading Agent, the client should be diligent and closely scrutinize all account activity.
11. Internet Trading
Because Crypto-Markets has no control over signal power, reception or routing via the Internet, the configuration of Customer’s equipment, or the reliability of its connection, Crypto-Markets will not be liable for any claims, losses, damages, costs, or expenses, including attorneys’ fees, caused directly or indirectly by any breakdown or failure of any transmission or communication system or computer facilitation.
12. Telephone Orders
Crypto-Markets are not responsible for disruption, failure or malfunction of telephone lines.
13. Quoting Errors
Should a quoting error occur due to a mistype of a quote or a misquote given by telephone and/or electronic means (including responses to Customer requests), Crypto-Markets is not liable for any resulting errors in Account Balances and reserves the right to make necessary corrections or adjustments on the Account involved. Any dispute arising from such quoting errors will be resolved on the basis of the fair market value, as determined by Crypto-Markets, in its sole discretion, of the relevant currency at the time such an error occurred. In cases where the prevailing market represents prices different from the prices Crypto-Markets has posted on our screen, Crypto-Markets will attempt, on a best efforts basis, to execute trades on or close to the prevailing market prices. These prevailing market prices will be the prices, which are ultimately reflected on the Customer Statements. This may or may not adversely affect customers’ realized and unrealized gains and losses.