Rules of the Alpari Bonus Program Version: August 2015 1
Table of contents 1. Introduction... 3 2. Participation... 3 3. Premium Status and the Alpari Bonus Program... 4 4. The Main Concept... 5 5. Calculations... 5 5.1. The Calculation Period... 5 5.2. Calculating the Trading Turnover... 5 5.3. The Calculation of Investment Turnover on PAMM Accounts and Portfolios... 6 5.4. Calculating the Volume of Investments in Investment Funds and Structured Products... 6 5.5. The Calculation of Bonus Points When Making Deposits... 7 5.6. The Calculation of Bonus Points for Other Actions... 7 5.7. The Calculation of Deducted Points... 7 5.8. Recalculation of Bonus Points in the case of Force Majeure conditions... 7 6. Levels and Coefficients... 7 7. The Bonus Account... 8 8. Discounts... 8 9. The Calculation and Payment of Refunds for Trading Condition Improvements... 9 10. The Calculation and Crediting of Refunds for Improving Conditions on Non-Trading Operations 10 11. Points Exchange for Cash... 10 12. Auto-renewing Discounts... 11 13. The Publication and Updating of Statements... 11 2
1. Introduction 1.1. The Rules set out in this document govern the basic operations of the Alpari Bonus program Alpari Bonus. 1.2. The Rules apply to all participants of the program. Participation in the program assumes the Client's agreement with the Rules. 1.3. As part of the Bonus Program, the Client receives points for a variety of actions related to their trading and investment activities. These bonus points are used to purchase discounts which improve the current trading and non-trading terms at Alpari. Clients may also exchange bonus points for real cash funds. Client activity before the program is launched is not counted within the program. 1.4. The actual terms of the Bonus Program are contained within these Rules. The number of bonus points credited, spent and debited can be viewed from myalpari. 1.5. The company has the right to make changes and additions to the Rules unilaterally at any time. When changes are made, Alpari will notify the program's participants through the publication of the latest version of the Rules on the company's website. 1.6. Participants are obliged to check for changes and additions to the Rules by themselves. Activity undertaken by a participant in order to receive bonus points after a new version of the Rules has come into effect, confirms the participant's agreement with the new edition of the Rules. 1.7. The company has the right to make changes to the Rules of the Bonus Program on a client by client basis, or for entire groups of Clients. 2. Participation 2.1. All Clients who have registered for myalpari are participants of the Alpari Bonus Program. However, for a few groups of Clients the Bonus Program has certain limitations. The following groups of clients fall into this category: Introducing Brokers. Within the program, Introducing Brokers only receive bonus points for their own trading, non-trading and investment operations. They are not awarded points for the activities of the clients that they have introduced. PAMM Account managers, who, within the context of the program, do not receive bonus points for trading operations on their investors' investment accounts. Bonus points are calculated and awarded only on the managers own investment accounts in proportion to their share of the overall volume of trading operations on the PAMM Account. Likewise, managers are awarded and deducted bonus points for their non-trading operations (making deposits or withdrawing funds by themselves). Clients who use alpari.binary and Demo accounts. However, these Clients will still receive bonus points in full for operations undertaken on other account types as part of the program. 2.2. As part of the program, each myalpari is assigned a status, depending upon the aggregate balance of trading, transitory, investment and alpari.fsc accounts and the aggregate amount of investments into structured products and investment funds. Balance of capital accounts doesn't count towards the Alpari Bonus Program. The aggregate balance is calculated in USD, at the rate of the Russian Central Bank at the moment of calculation. Balance of investment accounts is calculated based on the equity of an investment account, not including PAMM Account Manager compensation, which is shown in myalpari on the My PAMM Accounts page. The myalpari status is updated once per week on Mondays at 00:07:00 (trading server time). Where necessary, the company retains the right to review a Client s myalpari status at any time. The calculation of the number of bonus points awarded to a client depends upon a coefficient which corresponds to the status of each myalpari, and is calculated according to the following formula: Bonus Points Awarded = Bonus Points for Activity x Coefficient. 3
The status of the clients' myalpari and the coefficient: Status Classic Silver Gold Platinum Diamond Premium Aggregate balance of myalpari 0-499 $ 500-999 $ 1,000-4,999 $ 5,000-9,999 $ 10,000-49,999 $ Coefficient 1 1.1 1.2 1.25 1.3 1.3 50,000 $ and more The balances of PAMM Accounts, which are received by Clients as the annual prize in the Virtual Reality and Jackpot contests, do not count towards receiving bonus points. Funds credited by Alpari through any kind of special offer by the company, don't count towards the Alpari Bonus Program. 2.3. There are special conditions on using bonus points for Premium Clients, providing additional advantages and privileges (see clause 3.5.). 2.4. The company reserves the right to suspend the program and cancel all outstanding bonus points in the case of fraudulent operations or for violating the terms of the Regulations on trading and non-trading operations. 3. Premium Status and the Alpari Bonus Program 3.1. The Client receives the Premium Status if the aggregate balance of their accounts exceeds 50,000 USD (or the equivalent in another currency at the rate of the Russian Central Bank at the time the status is being reviewed). The status is reviewed once per week. 3.2. After being assigned Premium Status, the following discounts will be available to the client for free: Refund on swaps - up to 30%; Refund on commission for pro.mt4 accounts - up to 10%; Refund on commission for using the Swap-free option - up to 20%; Refund on commission for using the Weekend Fee option - up to 20%; These discounts need to be activated from the "Alpari Discounts" section of myalpari. Discounts are valid for 28 or 7 days from the date of activation, depending on the selected period. 3.3. When receiving Premium Status, the Client automatically receives a 100% refund on commission for all deposits and withdrawals. 3.4. Premium Clients have access to additional benefits which are automatically set up on the account after receiving their status. Amongst the benefits are: The service of a personal manager. The services of an individual investment expert. Commission refunded on withdrawals. Advance funding on their account. Interest paid on their deposit not used in trading up to 20% per annum in RUR and up to 10% per annum in EUR, USD, GLD. No limit on the number of open orders. 3.5. More detailed information about the additional privileges of being a Premium Client is published on our website in the "Premium Client Program" section. 4
4. The Main Concept 4.1. Bonus Points (Alps, abbreviated to ALP) are the virtual unit of the Alpari Bonus Program. Points are awarded and deducted for some actions undertaken by clients as part of the Bonus Program. Bonus Points cannot by transferred or sold to other parties. 4.2. In the case where the Client Agreement is terminated and myalpari is closed, all outstanding points on an account are cancelled. 4.3. Bonus Points are awarded for: Registering for myalpari Opening of a Client's first Standard, Nano, ECN or PRO-ECN trading account. Additional bonus points are awarded for opening the first account of these types within the first three days of registering myalpari. There are no bonus points awarded for opening Demo accounts. Making a deposit to a trading or transitory account with a fund transfer. Additional bonus points are awarded for deposits made within three days of registering myalpari. The level of total trading turnover of the Client's accounts. Trading turnover on alpari.binary and Demo accounts does not count towards earning Bonus Points. The level of investment turnover on investment accounts of PAMM Accounts. The level of investment turnover for investments into structured products. The level of investment turnover for investments into investment funds. 4.4. Bonus points are deducted when funds are withdrawn from myalpari. 4.5. If a client is inactive for 50 days, then the overall balance of their bonus account is reduced by 2% per day. Being active means making trading, investing and non-trading operations. 4.6. For Premium Status clients, bonus points are awarded and deducted just as for other clients. 5. Calculations 5.1. The Calculation Period The calculation period, during which the data for awarding bonus points is collected, and refunds from purchased discounts are calculated, is one week. The cut-off time is on Sundays at 23:59:59 (trading server time). When a new status is assigned to myalpari the bonus points which are to be awarded are multiplied by the new coefficient, in accordance with the status of the client's myalpari (see clause 2.2.). 5.2. Calculating the Trading Turnover The trading turnover in USD for all live accounts, including trading capital accounts, is recorded in the "Alpari Bonus" section of myalpari, when a trade is opened or closed on the MetaTrader 4 platform. For the duration of a week, a client can, in real time, view a summary of their current trading turnover and the bonus points that they have earned and which will be awarded at the end of the calculation period. Trading turnover is calculated on the Bid price in MetaTrader 4 at the moment the order is opened or closed. If the trading turnover breaks 2 million USD in a week, then only the turnover up to 2 million USD is calculated and any amount greater than 2 million USD does not count towards the Alpari Bonus Program. The calculation of the trading turnover when closing positions with opposite orders (locked positions) takes place in the following way: When a locked position is completely closed by an opposite position of a single size (when one position completely hedges the other), the trading volume for the closed order is not counted. 5
When a locked position is partially closed, trading turnover is not counted for the hedged part of the position. Attention: The turnover is not counted for trades made before the launch of Alpari Bonus. 5.3. Calculation of Investment Turnover on PAMM Accounts and Portfolios 5.3.1. Investors get bonus points from investments in PAMM Accounts in accordance with their share of the overall turnover of the PAMM Account in which the investor put their funds. 5.3.2. For the duration of a week, the client can, in real time, view a summary of their current investment turnover on all investment accounts and the bonus points that they have earned and which will be awarded at the end of the calculation period. The information is updated at each rollover of the PAMM Accounts on the general data of the trading turnover in USD at the moment when trades are opened and closed on PAMM Accounts, in which the client has placed their funds. Calculating the trading turnover of the manager takes place at the Bid price in MetaTrader 4 and the moment the order is opened or closed. Attention: The turnover is not counted for trades made before the launch of Alpari Bonus. If the investment turnover breaks 2 million USD in a week, then only the turnover up to 2 million USD is calculated and any amount greater than 2 million USD does not count towards the Alpari Bonus Program. The calculation of trading turnover of PAMM Accounts for calculating the investment turnover when closing positions with opposite orders (locked positions) takes place in the following way: When a locked position is completely closed by an opposite position of a single size (when one position completely hedges the other), the trading volume for the closed order is not counted. When a locked position is partially closed, trading turnover is not counted for the hedged part of the position. 5.3.3. Investors who deposit funds in PAMM Portfolios are awarded points to use as funds in PAMM Portfolios. The amount of points awarded is proportional to the investor s share of the portfolio s trading turnover. 5.3.4. For the duration of a week, the client can track their total current level of investment volume using the online function in their myalpari. This can be done for all investment accounts and any points accrued will be added at the end of the financial period. Information will be updated at every rollover of PAMM Portfolios, based on the USD trading turnover at the time of opening and closing transactions on the MetaTrader 4 platform and on all PAMM Accounts within the PAMM Portfolio which the client has invested in. The account manager s trading volume is calculated using the Bid price in MetaTrader 4 at the time of opening or closing an order. Attention! Turnover before the Alpari Bonus Program was started is not taken into account. The calculation of bonus points only takes into account weekly trading volumes of up to 2 million USD. Turnovers which reach and exceed this sum will not accrue any extra points. For PAMM Account trading turnover in PAMM Accounts and Portfolios, the calculation of closing position investment amounts for opposite orders (in locked positions) is processed as follows: Upon fully closing locked positions of the same size (when each position fully covers each other), the trade volume is not counted. Upon a partial closing of locked positions for part of the overlapped positions, the trading turnover is not counted. 5.4. Calculating the Volume of Investments in Investment Funds and Structured Products When clients invest money in Alpari's structured products and then open a capital account, the bonus points to be awarded are doubled. 6
5.5. The Calculation of Bonus Points When Making Deposits For making a deposit to a trading or transitory account from an external payment system, 10 bonus points are awarded for each 100 USD transferred. For funds transferred in a different currency, rather than USD, the calculation is undertaken at the rate of USD of the Central Bank of the Russian Federation at the moment the payment request is fulfilled. The amount of bonus points is multiplied by the coefficient, in accordance with the status of the Client's myalpari, and appears on the bonus account. Bonus points are not awarded on internal account-to-account transfers. 5.6. The Calculation of Bonus Points for Other Actions 5.6.1. Bonus points are awarded for opening the first Standard and ECN account, including accounts with Swap-free and Weekend Fee options, and also Nano, PRO-ECN and alpari.binary accounts. The points are calculated in accordance with the following formula: Bonus Points Awarded = 10 points x myalpari Coefficient 5.6.2. Bonus points are awarded for the following actions: Registering for myalpari - 50 ALP; Opening the first Standard, ECN, Nano, PRO-ECN or alpari.binary account in the first three days after registering myalpari 20 ALP in addition to the points awarded according to clause 5.6.1.; The first deposit in the first three days after registering myalpari 50 ALP in addition to the points awarded according to clause 5.5. 5.7. The Calculation of Deducted Points Points are deducted for withdrawing funds from myalpari. The number of points deducted is calculated according to the following formula: Amount of Funds Withdrawn in USD x 0.1 x Coefficient, in line with the current status of client's myalpari. Bonus points for withdrawing funds are deducted at the moment the request to withdraw the funds is completed. 5.8. Recalculation of Bonus Points in the case of Force Majeure conditions In the case where the current number of bonus points has been calculated incorrectly, as a result of a technical error or the appearance of non-market prices, once the issue has been cleared up, the points will be recalculated. 6. Levels and Coefficients 6.1. In accordance with clause 2.2. of these Rules, when calculating the bonus points that will be credited to the Client, the coefficient which corresponds with the status of the Client's myalpari at the moment the bonus points are credited, is used. 6.2. The number of bonus points awarded for trading and investment turnover depends upon the volume of the turnover. The amount of bonus points is calculated according to the following formula: Volume in millions of USD x Number of Bonus Points (in accordance with the given level) x Coefficient of the Client s myalpari Status. The relationship between the bonus points which are credited and the volume of turnover is shown in myalpari in the "Bonus Account" section. 7
7. The Bonus Account 7.1. All bonus points received by the client for activities described above, and exchanged by the client for improvement in their trading and investment conditions, are shown in the client's Bonus Account which is opened automatically when registering for myalpari. The Bonus Account shows the number of bonus points which are available for the client to spend. 7.2. The client's Bonus Account is made up of two independent accounts, Capital and Energy, (later referred to as "wallets"), into which bonus points are awarded. The balance of the Bonus Account is the sum of the number of bonus points contained in the wallets. 7.2.1. The Capital wallet receives bonus points which are earned from making deposits, and is debited bonus points for withdrawals, in accordance with clauses 5.5 and 5.7 of these Rules. Negative amount of bonus points, which may appear on the Capital wallet as a result of withdrawals, are not taken into account when calculating the balance of the Bonus Account. 7.2.2. The Energy wallet receives points for other client activities as described in these Rules, unconnected with the deposit or withdrawal of funds. 8. Discounts 8.1. The points received by a client can be spent on improving their trading and non-trading conditions at Alpari through purchasing discounts. Discounts are valid for 28 or 7 days from purchase (depending on the period selected when making the purchase), and discounts of the same type cannot be added to each other cumulatively. 8.1.1. When purchasing a discount which brings a higher refund than an already connected discount which is still valid, the newer discount with the improved level will take effect, and the discount offering the lower refund will stop working from the moment the discount offering the better conditions is connected. 8.1.2. For the calculation period, the client is credited with the refund: until the date the discount with better trading conditions is connected, the discount with a lower refund is taken into account, after the date of the connection of the discount with the better conditions in accordance with the conditions of this discount. 8.2. The client can redeem their bonus points to improve the following trading conditions: Improved swaps on their trading account (except NANO accounts and accounts with Swap-free and Weekend Fee options); Tighter spread (except PRO accounts); Lower commission on PRO and PRO-ECN trading accounts; Lower commission on trading accounts with the Swap-free option; Lower commission on trading accounts with the Weekend Fee option. The list of improved conditions for non-trading operations includes: Refund on part of the commission for making a deposit; Improved conversion rate for making a deposit and transferring funds between accounts in myalpari. The following discounts are available on the spread: Discount Max Refund in a Week, USD 1 5% 25 10% 50 1 The refund cannot be higher than indicated in the table, even when the calculated amount is higher. 8
20% 100 For negative swaps, the following discounts are available Discount Max Refund per Week, USD 2 5% 10 10% 50 20% 100 30% 1,000 For all other categories of trading and non-trading conditions the following discounts are available: Discount Max Refund per Week, USD 3 5% 10 10% 50 20% 100 30% 150 8.3. The maximum refund on trading discounts is calculated at the exchange rate of the Central Bank of the Russian Federation and the moment the refund is credited. 8.4. Discounts that have been bought cannot be subsequently cancelled. Point refunds for purchased discounts are not possible, nor are changes to the account number after purchasing a discount. 9. The Calculation and Payment of Refunds for Trading Condition Improvements 9.1. Refunds from purchased discounts are credited once per week. Refunds are made in the respective currency to the transitory account for non-trading operations and to the trading account to which the discounts have been connected, for trading. 9.2. Refunds for trading discounts credited to the PAMM accounts are distributed between managers and investors according to the size of the share of their investments in the PAMM account balance at the moment the compensation is credited. 9.3. Refunds for negative swaps are calculated on the data over the week on the payments for keeping positions open overnight. The corresponding discount rate is applied to the commission that was deducted. This amount is credited to the client's account in the respective currency. 9.4. Refunds for spreads are calculated on data summed over the week. The spread is calculated as follows: ½ the Spread for Opening + ½ the Spread for Closing each Position. At the end of the week, all the deals are added up and the amount is calculated in accordance with the purchased discount. This amount is credited to the trading account of the client in the respective currency. 2 The refund cannot be higher than indicated in the table, even when the calculated amount is higher. If the calculated refund for non-trading operations exceeds the payment amount for the given discount, then the amount by which it exceeds the amount of compensation will be deducted from the sum of all requests for fund transfers in equal proportions. 3 The refund cannot be higher than indicated in the table, even when the calculated amount is higher. If the calculated refund for non-trading operations exceeds the payment amount for the given discount, then the amount by which it exceeds the amount of compensation will be deducted from the sum of all requests for fund transfers in equal proportions. 9
9.5. Refunds of commission for PRO accounts, and also Swap-free or Weekend Fee accounts, are calculated on orders opened and closed in the week. The refund is equal to the commission multiplied by the rate of the purchased discount. This amount is credited to the client's balance in the respective currency. 9.6. When the type of a PAMM Account changes the purchased discounts stop working, no refunds will be credited. Attention: Calculations for refunds on orders opened before the launch of the Alpari Bonus Program are not undertaken. 9.7. When a PAMM account is liquidated the discounts connected to this account are deactivated. The refunds which are to be credited are cancelled out. 10. The Calculation and Crediting of Refunds for Improving Conditions on Non-Trading Operations 10.1. Compensation on purchased discounts will be credited to the transitory account of the client once per week in the respective currency. For each payment operation from which commission was deducted, a refund will be made based on the following formula: Refund Amount = Commission х Rate of the Purchased Discount. 10.2. The refund is credited in the currency in which the non-trading operation was undertaken, on which the discount is active. If the operation was undertaken in a currency which was not USD, EUR, RUR or GLD, then the refund is credited into the corresponding transitory account in USD at the end of the calculation period. Conversion is undertaken at the exchange rate of the Central Bank of the Russian Federation at the moment the refund is credited. Compensation commission for deposits does not include any fees charged by the bank or payment system from which the funds were transferred. 11. Points Exchange for Cash 11.1. The Client can exchange points accrued as part of the Alpari Bonus program for real cash funds. 11.2. The exchange of points for cash funds takes plac at a conversion rate of ALP to USD set by the company and at the Client s request. The Client can create a request for the points to be exchanged to cash in myalpari. 11.3. The minimum and the maximum amounts of points that can be exchanged per request are dependent on the Client s myalpari status. Within these amount limits the Client may no more than one exchange request per week. Limitations for bonus point to cash conversion: myalpari Status Minimum amount of points to be exchanged per request, USD Minimum amount of points to be exchanged per request, USD Classic 5 25 Silver 10 50 Gold 15 75 Platinum 20 100 Diamond 25 125 Premium 30 150 11.4. Over the course of a single week, no more than 25% of the total number of points on the bonus account may be exchanged. 11.5. When creating a request to exchange points for real cash funds, the Client should indicate the account, be it a transitory or trading account, to which the exchanged cash funds will be credited. 10
11.6. If the account to which the cash funds are to be credited is denominated in a currency other than USD, the conversion of the funds from USD in the currency of the account shall take place at the Company s internal conversion rate. 11.7. The cash funds will be credited to the Client s account in the week which follows the Client s submission of a request for points to be exchanged. 11.8. The Company retains the right to revise the conversion rate of the points to cash, whether this be when the request is submitted or during the request s processing. 11.9. The company retains the right to alter the minimum and maximum amounts for exchanging points per request correspondingly. 12. Auto-renewing Discounts 12.1. The Alpari Bonus Program allows clients to auto-renew their discounts. This option can be activated when purchasing a discount or on the Bonus Account page at any time. 12.2. The discount is renewed at the current price of the discount according to the myalpari status of the Client. 12.3. If there are not enough bonus points available on the Client's bonus account, then the discount will not be auto-renewed. 12.4. The discount will not be auto-renewed if it is no longer provided by Alpari. 13. The Publication and Updating of Statements 13.1. Clients can receive all the information on their awarded, deducted and cancelled bonus points from myalpari. 13.2. The bonus account shows the actual number of bonus points awarded, which are available for purchasing a discount. The Capital and Energy wallets show the actual number of bonus points that the Client has earned during the week. 13.3. The Bonus section of myalpari shows the Client all the information on the available discounts their valid to date, conditions and cost. The Client can also view the history of the purchases, valid to date and activity. 14. Disputes 14.1. The Company has the right to disqualify participants of the Bonus Program for falsification of operations and for breaking the Regulations on trading and non-trading operations. All disputes and situations arising from unforeseen circumstances will be decided by Alpari management considering the best interests of all parties. 14.2. Clients should notify us of a dispute or send a question about the Alpari Bonus Program to the following email address: bonus@alpari.ru. ALPARI LIMITED 11