121FUND LIMITED FX MARGIN TRADING CONTRACT LIMITED FX MARGIN TRADING CONTRACT

Transcription

1 121FUND LIMITED FX MARGIN TRADING CONTRACT LIMITED FX MARGIN TRADING CONTRACT (Client Copy) This is a legal FX margin trading contract between 121FUND Co., LTD, (hereinafter referred to as 121FUND) and the party (or parties) executing this document. Traders agree as follows: 1. Basic Items a). Before undertaking real foreign exchange transactions, traders should completely understand the nature of the contracts and contractual relationships into which you are entering and the extent of your exposure to risk. Trading in FX contracts is not suitable for some people. You should carefully consider whether trading is appropriate for you in light of your experience, objectives, financial resources and other relevant circumstances. b). Traders acknowledge that all the trading profits and losses which be caused by foreign exchange trades through our trading platform are possessed by you. c). 121FUND holds the right to decline the open-account application if it finds that the applicants are not appropriate for FX trading. 2. Risk Acknowledgment Foreign exchange contracts carry a high degree of risk, as follows: a). You may sustain a total loss of initial margin funds. b). Also any additional funds deposited with the firm to maintain your position. c). Trading risks that are caused by the change of the political, economic and financial situations. d). Trading on an electronic trading system may differ from trading in an open-outcry market. If you undertake transactions on an electronic trading system, you will be exposed to risks associated with he system including the failure of hardware and software. The result of any system failure may be that your order is either not executed according to your instructions or not executed at all. Moreover, it is also possible for traders to sustain losses when the username and password may also be misplaced, stolen, and/or misused by third parties. e). Trades may also be affected or restricted by the breakdown or other unfortunate situations that occur to the electronic trading system. g). This brief contractual article does not disclose all of the risks and other significant aspects of trading foreign exchange contracts. 3. Self-Trading Responsibility Acknowledgement

2 The clients are assumed to take all the trading profits/losses and responsibilities that caused by the trades done by them. a). After the complete comprehension of the FX trading contract and trading content, traders should be responsible for all the possible profit / loss that may be caused by FX trades. b). The relationship between our company and the traders are common debt relationships. Traders do not possess any superiority when requesting rights. c). Traders agree to bear the trading risks when the credit situation of our company has changed. d). It is the traders responsibility to prepare the trading equipment, and to maintain the reliability of system s communication connection. 4. Trading Account a). Traders should transfer funds to 121FUND LIMITED FX MARGIN TRADING CONTRACT limited before opening a trading account. b). We will send the trading account and password to the traders after approving the open-account application. c). Traders can maintain their trades within their deposit margin. d). Traders can only login 121FUND s FX trading platform with the registered username and password. e). All the trading orders, deposits, withdraw-margin requests, and all other activities pertaining to the FX trading account should be performed by the contractual trader only. 5. Margin a). Before FX margin trading, traders must deposit funds to the said account. b). All the profit / loss that occurs to the FX trades will be automatically calculated within the trading account. 6. Withdraw If traders send withdraw requests to us, our company will complete the withdraw requests within 4 working days. 7. Close Positions Traders can close their open positions at any time during the trading hours. 8. The Loss of Time-Limit Right Traders may lose their time-limit rights with 121FUND without prior notice in any of the following situations: a). When the legal procedures such as stop payment, bankruptcy,liquidating and reproduction

3 application, etc have begun according to bankruptcy law and civil reproduction law b). When 121FUND be penalized by legal authorities. c). When the trading rights that refer to traders trade and open positions have been detained or frozen. d). When the confiscating and auction procedures have begun which refer to mortgage, in order to guarantee the debt that regards to FX trading and open positions. e). The above mentioned or similar situations in according to foreign laws and rules. f). When 121FUND loses communication with traders due to the traders neglect. 9. The Debt Problems Caused by FX Margin Trades a). The entire depositing fund, trading profit and other transferring assets that belong to traders will be treated as trading-debt mortgage. b). Before traders completely pay all the trading debts, 121FUND has the right to preserve the above-mentioned mortgage. c). Our company has the right to use the mortgage for paying debt items when the traders fail to pay back all their debts. d). In the case when the debt fails to be paid up by the above-mentioned mortgage, 121FUND has the right to ask the trader to compensate the additional debt of the nullified or canceled account. 10. Calculation Standard a). 121FUND has the right to decide which standard (including currency and interest) to calculate the debt that the traders are indebted to 121FUND. b). If it is necessary to change foreign currencies into Doller (USD) for the compensation of the debt to 121FUND LIMITED FX MARGIN TRADING CONTRACT limited, the TTS quote in the HK market will be the transferring standard. In the case when there is no HK market on that said day, we will refer to the quote of the previous trading day. 11. Tardy-Debt fine In the case when the traders fail to compensate all debts requested by 121FUND within 15 days of the nullified or canceled account, 121FUND has the right to levy a tardy-debt fine from the 15th day (including that day) until the actual paid-up day (including that day). 12. The Prohibition of the Transferring Debts It is prohibited to transfer the debts that traders owe to 121FUND. 13. The Change of the Calculation Standard Due to Force Majeure.

4 In the case of the force majeure, the calculation standard may be inevitably changed accordingly. 14. The Expiration of ID and Password a). Traders should keep control of their own trading ID and password that 121FUND issues to traders for FX Trades. b). Traders should create their own trading strategies and undertake all the trading responsibilities for themselves, even if the trading strategies were mentioned by 121FUND or any staff of 121FUND LIMITED FX MARGIN TRADING CONTRACT limited. Ultimately trading shall be the trader s complete responsibility. 15. Trading Orders a). Generally speaking, FX trades are inter-net trades made by the individual trader. When trades are required to be made via our call service center, traders should provide the following information: trading ID and password confirmed by the account holders themselves, currency pairs, buying or selling orders, initiating trading orders or close current position requests, trading amounts and stop or limit prices. b). The trades that traders make via our trading platform are limited to what the trader receives from our company s platform. 121FUND has the right to change or modify our trading products without prior notice to our clients. c). The trading orders that are initiated via inter-net and confirmed by our trading platform would be treated as had been accepted by our FX trading system. d). The trading orders cannot be executed when the trading orders violate laws or rules, or the usable margin of the trading account is not sufficient to hold new positions. e). Traders should bear the responsibilities to confirm whether their trading orders have been executed by the trading platform after they execute the trading orders. 16. Notification Issues In the case when 121FUND sends notices relating to FX trades, if the notices cannot be delivered because the traders cannot be reached or have changed their address without prior notice to 121FUND, the information that 121FUND sends clients will be treated as if the said notices had been delivered to the traders. 17. The Changes of the Service Contents 121FUND have the right to change or modify the service contents without prior notice to the trader. 18. The Termination of this Trading Contract

5 This agreement shall continue in effect until termination of the contract and may be terminated by the following situations: a). By the trader at any time when the trader has no open position(s) and no liabilities held by or owed to 121FUND upon the actual receipt of written notice of termination via , or at any time whatsoever by 121FUND upon the transmittal of written notice of termination by the trader; provided that such termination shall not affect any transactions previously entered into and shall not relieve either party of any obligations set out in this agreement, nor shall it relieve the trader of any obligations arising out of prior transactions entered into in connection with this agreement. b). When traders violate any item of this trading contract. c). When 121FUND has to cease the service in the case of the force majeure. In the case when the trading account is terminated because of b and c items, 121FUND has the right to take control of or close any of the traders open positions in its sole discretion. 19. Irresponsibility Items 121FUND will not be responsible for any damage or loss that is caused by the following circumstances, traders should bear all the according trading responsibilities: a). In the case of force majeure, coup d'etat, employees strike, unforeseen event in foreign currencies, and the close of the FX market by force majeure. b). In the case when the trader cannot send trading orders or the trading orders cannot be accepted by our trading system due to the close of the FX market or the changes of the trading rules. c). All or part of the trading orders cannot be established because of fluctuations in currency rates. d). The result of any telecommunication, inter-net or post system failure or delay. e). The damage or loss that is caused due to the signature or stamp not coinciding with the signature or stamp that the traders registered on the trading contract. f). The Traders will be liable to 121FUND for trades executed by means of the traders password even if such use may be due to malice from a third party. g). The result of any electronic trading system failure (including the failure of hardware, software or operation error) may be that your order is either not executed according to your instructions or not executed at all. h). The result or damage that is caused by the loss-cut system of our trading platform. i). Traders agree to bear all the damage or loss that is caused by the breakdown of trading facilities. 20. Loss-Cut System When the usable margin turns to zero, our trading platform will automatically close all of the Traders open positions, the Traders agree to bear the loss or damage that is caused by such loss-cut system.

6 21. Trading Time and Swap The trading time and swap of open positions will be automatically updated by our trading system. 22. Choice of Law For purposes of any action or proceed involving any matter arising out of or relating to this Agreement, each party hereby expressly consents and submits to the jurisdiction of any courts or the arbitration bodies in HK. At the sole election of 121FUND, all disputes, claims, actions or proceedings arising directly, indirectly, or otherwise in connection with, out of, related to or from this Agreement, may be submitted for arbitration before any other arbitral body that is mutually agreed upon by the traders and 121FUND. Voiding of any clause of this Agreement by a court of competent jurisdiction shall not void the entire agreement and shall apply only to the specific clause. 23. Amendment a). This Agreement may not be amended or modified except in writing. This Agreement represents the entire understanding between the parties, and all prior discussions and negotiations are merged in it. b). If the trader fails to agree to any amendment applied to this agreement within the response time limit, it will be treated as if the traders have accepted the amendment of the agreement. c). Before the termination of this agreement, both parties agree to perform or execute all the items of this agreement. d). Only after both parties have signed the agreement, then this agreement thereinafter will come into effect. 121FUND LIMITED FX MARGIN TRADING CONTRACT Limited