Terms and Conditions of Use
Version dated: 2 August 2019
DISCLOSURE OF RISKS OF MARGIN TRADING
Panxora is furnishing this document to you to provide some basic facts about the risks involved with trading in a margin account. “Margin trading” can mean engaging in a transaction in which assets are purchased partially through a margin loan extended to you by Panxora, for which cryptocurrency acts as collateral.
Before trading in a margin account, you should carefully review the margin agreement provided by Panxora and you should consult Panxora regarding any questions or concerns you may have with your margin accounts.
When you purchase currency, you may pay for the currency in full or you may borrow part of the purchase price from Panxora. If you choose to borrow funds from Panxora, you will open a margin account with the firm.
You should understand that pursuant to the Panxora Margin Agreement, Panxora generally will not issue margin calls, that Panxora will not credit your account to meet intraday margin deficiencies, and that Panxora generally will liquidate positions in your account in order to satisfy margin requirements without prior notice to you and without an opportunity for you to choose the positions to be liquidated or the timing or order of liquidation.
In addition, it is important that you fully understand the risks involved in trading on margin. These risks include the following:
- You can lose more funds than you deposit in the margin account. A decline in the value of the assets purchased on margin may require you to provide additional funds to Panxora or you must put up margin to avoid the forced sale of those assets in your account(s).
- Panxora can force the sale of assets in your account(s). If the value of your account falls below the maintenance margin requirements, or if Panxora has higher “house” requirements, Panxora can sell the assets in any of your accounts held at the firm to cover the margin deficiency. You also will be responsible for any shortfall in the account after such a sale.
- Panxora can sell your assets without contacting you. We do not have to contact you for a margin call to be valid. You must be aware that Panxora will liquidate assets in your account to bring the positions held in the account in line with the amount of collateral in the account. This takes place entirely at Panxora’s discretion at a time and order of Panxora’s choosing. Once closed a position must be reopened by the customer at the price prevailing in the market at the time the position is re-opened.
- Panxora can increase its “house” maintenance margin requirements at any time and is not required to provide you with advance written notice. These changes in firm policy often take effect immediately. Your failure to maintain adequate margin in the event of an increased margin rate generally will cause Panxora to liquidate assets in your account(s). If Panxora chooses to issue a margin call rather than immediately liquidating undermargined positions, you are not entitled to an extension of time on the margin call.
- Financing Margin positions with cryptocurrency has additional risk factors caused by the volatility in the value of cryptocurrency. This increased volatility may result in forced liquidation of a position caused by the decline in value of the collateral that is securing the margin position. You accept that you understand these additional risk factors. You confirm that you fully understand and accept the high risks associated with trading on margin and you accept that these risks are increased by using cryptocurrencies as collateral.
©2019 Armitage-Corto Ltd. (Nevis) trading as Panxora.