1. DEFINITIONS AND INTERPRETATION
1.1. The “Company” refers to FX Choice Limited — an investment company operating as a global broker. The Company is incorporated (Certificate of Incorporation No. 105,968) in Belize City, Belize through the Registrar of International Business Companies;
1.2. The “Client” is an individual or legal entity who holds a trading account with the Company for conducting transactions of financial instruments;
1.3. A “Financial Instrument” refers to Spot Forex pairs;
1.4. The “Investor” is a Client of the Company who holds a Sub-Account and has passed the Company’s registration procedure as an Investor. The Investor is considered a participant of the master MAM account held by The Account Manager;
1.5. A “Sub-Account” is a trading account held by an Investor for investment purposes and is a part of the master MAM account held by The Account Manager. The Sub-Account permits the funds of this account to be managed by The Account Manager according to this Agreement;
1.6. The “Account Manager” is a Client of the Company, who conducts Trading Activity with an Investors’ funds according to this Agreement and has passed the Company’s registration procedure as Account Manager. The Account Manager is considered the holder of the master MAM account;
1.7. “Trading Activity” is the Account Manager’s trading operations on global financial markets, according to this Agreement, with the Investors’ funds deposited into the Investors’ SubAccounts, to which The Account Manager has access through the master MAM account;
1.8. The “Master MAM Account” is the Account Manager’s account. It includes a certain number of Investors’ Sub-Accounts and is used for conducting transactions of financial instruments on the Investors’ behalf;
1.9. The “Funds of the Investor” is the Investor’s own funds deposited into the Sub-Accounts;
1.10. The “Investment period” is the period of time which is a period of time expressed in weeks, during which the Account Manager provides conducts Trading Activity according to this Agreement, and at the end of each there are calculations and distributions of profits and remuneration/incentive fees between the Account Manager and Investors;
1.11. The “Profit of the Account Manager” is based on high watermark;
1.12. The “Participants of the master MAM account” are the Account Manager and the Investors;
1.13. The “Profit of the Investor” is the Investor’s total profit deducted the Account Manager’s incentive fee/remuneration and any penalties or applicable expenses (if any);
1.14. The “Account Manager’s incentive fee/remuneration” is determined as a percentage of profits and shall be transferred to the Account Manager automatically and over the weekend following the end of the investment period;
1.15. The “Termination of the master MAM account” refers to the closing of an existing master MAM account on the initiative of the Account Manager or the Company.
1.16. The “Termination of the Sub-Account” is the closing of an existing Sub-Account on the initiative of the Investor or the Company.
1.17. The “Agreement” is the present agreement.
2. SUBJECT OF THE AGREEMENT
2.1. The current Agreement regulates the rights and obligations of the participants in the master MAM account.
2.2. Relations between the Clients (Account Managers and Investors) and the Company regarding the use of the master MAM account are regulated by this Agreement; the Client Agreement of the Company, including any annexes and amendments thereto, as well as other rules, specifications and regulations established by the Company.
2.3. Information on the Company and the services it provides is available on the Company’s website (myfxchoice.com). The Clients declare that before entering into this Agreement that they have reviewed and accepted the said information, including this Agreement, the Client Agreement of the Company, including any annexes and amendments thereto, as well as other rules, specifications and regulations established by the Company.
2.4. The Company provides the Clients with the right to use the Company’s master MAM account for conducting automated transactions.
2.5. With regards to the master MAM account, which includes the Sub-Accounts of Investors, The company provides:
1) Account Managers with the ability to manage Investors’ funds deposited to their Sub Accounts;
2) Investors with the ability to allow their invested funds to be managed by the Account Manager.
2.6 The profits and losses resulting from the Trading Activities of the Account Manager are proportionate to the amounts invested in each particular Sub-Account and are automatically applied to the investors’ SubAccounts.
2.7. The Account Manager shall be considered an agent of the Investors regarding their invested funds. The Account Manager is considered as legally authorized to represent the Investor regarding any, and all, present and future dealings with the Company, in particular with respect to all funds deposited into the Investors’ Sub-Accounts with the Company, and to give orders to the Company to buy, sell and trade all financial instruments offered by the Company.
2.8. The Trading Activity on the master MAM account shall be carried out by the Account Manager. The right to deposit and withdraw Investor’s funds belongs exclusively to the Investor. The Company shall not influence the management of the Sub-Accounts in any way but shall only follow the instructions given by the Account Manager.
2.9. The Investor could be any existing and potential client of the Company. The number of investors, per master MAM account, is not limited. Each Investor has to register on the Company’s website as an Investor and must apply for a Sub-Account. The Investor can hold an ordinary trading account with the Company too, which is not part of the master MAM account.
3.1. Each Account Manager sets the investment period, fee/incentive fee and currency for the Trading Activity they offers. The Account Manager’s incentive fee is determined as a percentage of the Profit of the Investor.
3.2. The Investment period (the duration of the investment) is the period of time during which the Account Manager conducts the trading activity with the Investors’ funds from their Sub-Accounts.
3.3. The duration of the investment period is always expressed in weeks. While the length of an investment period is not limited, the shortest investment period cannot be shorter than a week.
3.4. The Investment period for all participants of the master MAM account begins at 00:00:00 GMT +2 on Monday and ends at 23:59:59 GMT +2 on the last Friday of the Investment period. During Daylight Saving Time it begins at 00:00:00 GMT +3 on Monday and ends at 23:59:59 GMT +3 on last Friday of the Investment period. The end of one Investment period means the automatic start of the next Investment period.
3.5. In the event of an unscheduled withdrawal of all of the invested funds, or the termination of the current master MAM account, the Investment period shall be considered as terminated.
3.6. Changing the investment periods shall not be considered as an obligation of the Account Manager to close any trading positions.
3.7. The Account Manager may add their own funds to a Sub-Account held by them.
4. DEPOSITS AND WITHDRAWALS
4.1. Depositing funds to the Sub-Account can be done by Investors through an internal transfer of funds from any other trading account held by an investor and within one user profile, or by any supported and available payment method at the client’s disposal.
4.2. If the master MAM account and the Sub-Account’s currencies are different from the trading account, or from the transferred amount, the currency conversion shall be done at the Company’s applicable rate or the Company’s bank/payment provider’s applicable rate.
4.3. Withdrawal from the Sub-Account shall be done by the Investor according to the Client agreement.
4.4. The master MAM account can be liquidated by the Account Manager and a Client can choose to entirely leave the account at any time. If either of these two occur, all profits and losses will be realized. It is also possible for a Client to partially withdraw funds. If this occurs, then nothing will happen and the account will continue as normal (see clause 4.5).
4.5. Scheduled withdrawals of funds from the Sub-Accounts shall be taken no earlier than the end of the current investment period. Otherwise, the funds in the Sub-Accounts will be automatically reinvested for the following investment period.
4.6. In the event of an unscheduled withdrawal by the Investor – invested funds, profits and the Account Manager’s incentive fee shall be transferred automatically and respectively to the accounts of the relevant participants.
4.7. Requests for unscheduled withdrawals of all funds from the Sub-Account can be made around the clock, every day of the week.
4.8. Each Investor may cancel their request to withdraw funds at any time up to the moment of its execution.
4.9. If a withdrawal is made, and the receiving account currency is different from the Sub Account currency, the conversion of these funds will be carried out at the Company’s rate or at the Company’s bank/payment provider’s applicable rate.
4.10. The Request for withdrawal of funds from the Sub-Account might be rejected by the Company if:
a) The Sub-Account has insufficient funds to implement the withdrawal;
b) The Company needs additional information from the Client.
5. SHARES IN THE MASTER MAM ACCOUNT
5.1. The Investor’s share of the master MAM account is a percentage and is calculated as the ratio between the invested funds of the Investor and the total amount of funds in the master MAM account at the time of calculation.
5.2. Any balance operation (i.e. deposits and withdrawals) on the Sub-Account leads to the automatic recalculation of the shares of all members of the master MAM account.
6. CALCULATION AND TRANSFER OF PROFITS AND INCENTIVE FEE
6.1. The profit calculation from the master MAM account’s operations shall be done automatically and in real-time.
6.2. There are two types of profit:
a) The total profit of the master MAM account;
b) Profit of certain participant of the MAM.
6.3 The calculation of the Account Manager’s incentive fee is based on the high watermark principle. What this means is that clients are only charged that fee, if there is a positive difference between the equity of the previous investment period and the current one.
6.4. The parties, including the Investors and the Account Manager, agree that when incentive fee to the Account Manager is due, the Company has the right to unilaterally withdraw funds from the Client’s Sub Account to pay/transfer the calculated incentive fee to the Account Manager.
6.5. The Company shall not be obliged to determine the accuracy, or appropriateness, of the Account Manager’s incentive fee.
6.6. The Investors and the Account Manager agree that the Company shall not be required to pay any funds, including the Account Manager’s incentive fee if there are not sufficient funds in the Investor’s Sub-Account.
6.7. Account Managers may charge additional fees which are reflected in the master MAM account’s trading environment (wider spreads for classic accounts, increased fees for ECN accounts).
7. TERMINATION OF THE MASTER MAM ACCOUNT AND SUB ACCOUNT
7.1. Termination of the Sub-Account can be initiated by:
a) The Investor who holds the Sub-Account;
b) The Company.
7.2. To terminate the Sub-Account, the Investor needs to submit a full withdrawal request.
7.3. After receiving the withdrawal request, the Company:
a) Will prevent further fund deposits to the Sub-Account;
b) Will calculate and transfer the funds to the Investor, deducted fees, incentive fee and penalties (if any).
7.4. The Company has the right to terminate the Sub-Account at any time without any explanation if there has been no activity on the Sub-Account for more than 90 calendar days.
7.5. Termination of the master MAM account can be initiated by:
a) The Account Manager;
b) The Company.
7.6. For termination of the master MAM account on the Account Manager’s initiative, the Account Manager needs to apply and at the time of application there should be no open positions or pending orders, otherwise, the termination is impossible to execute.
7.7. After receiving the application, the Company:
a) Will cease executing the Account Manager’s trades;
b) Will prohibit the deposit of further funds to Sub-Accounts;
c) Will inform all participants of the termination;
d) Will calculate the funds respectively for the relevant participants of the master MAM account.
7.8. The Company has the right to terminate the master MAM account at any time without any explanation if:
a) The amount of the total profits of the master MAM account is below -95% the master MAM account balance for two consecutive and contiguous computation periods;
b) There is no activity on the master MAM account for more than 90 calendar days.
7.9. For the final termination of the master MAM account, the Company:
a) Closes all open trading positions at the current market price;
b) Cancels all pending orders;
c) Blocks any further trading;
d) Blocks any further fund deposits;
e) Performs the calculations and transfers the funds to the participants;
f) Notifies the participants of the termination of the master MAM account.
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