This is a legal contract between Rich Victor Trading Limited, (hereinafter referred to as Rich Victor Trading) a organized under the laws of the Hong Kong, its successors and assigns, and the party (or parties) executing this document.
In consideration of Rich Victor Trading agreeing to carry one or more accounts of the undersigned person or persons (hereinafter referred to as “Trader” or “Client”) and providing services to Trader in connection with the purchase and sale of foreign exchange contracts, Trader agrees as follows:
1. AUTHORIZATION TO TRADE.
Rich Victor Trading will engage in foreign exchange contracts transactions with Trader in accordance with Trader’s oral, written or electronic instructions. Rich Victor Trading will act as the counter-party to the Trader in all such transactions.
2. COUNTER PARTY INSTITUTION AND INTERBANKING SYSTEM RULES.
All transactions under this Agreement shall be subject to the by-laws, rules, regulations, customs, usage, rulings and interpretations of the counter party institution or other interbank market (and its clearing organization, if any) where executed. Trader acknowledges that all transactions under this Agreement are subject to the regulations and Trader shall not thereby be given any independent legal or contractual rights with respect to such requirements.
3. MARGINS AND DEPOSIT REQUIREMENTS.
Trader shall provide to and maintain with Rich Victor Trading margin in such amounts and in such forms as Rich Victor Trading, in its sole discretion, may require. Rich Victor Trading may change margin requirements at any time. No previous margin requirement by Rich Victor Trading shall preclude Rich Victor Trading from increasing that requirement without prior notice. Rich Victor Trading retains the right to limit the amount and/or total number of open positions that Trader may acquire or maintain at Rich Victor Trading. Rich Victor Trading shall not be responsible for any loss or damage caused, directly or indirectly, by any events, actions or omissions including but not limited to loss or damage resulting, directly or indirectly, from any delays or inaccuracies in the transmission of orders and/or information due to a breakdown in or failure of any transmission or communication facilities.
For example, in volatile market conditions margin call may be delayed resulting in the possibility of a negative usable margin; a margin call may occur even if positions are hedged due to currency conversion rate or daily interest.
4. CARRYING POSITIONS FORWARD.
A position will be carried forward at the initial execution price until it is eventually closed by Trader or by Rich Victor Trading under the provisions of Paragraph 7 (Liquidation of Accounts). Consistent with Rich Victor Trading policy, a position that is carried forward may be credited or debited interest charges until the position is closed.
5. COLLATERAL.
All funds, securities, currencies, and other property of Trader which Rich Victor Trading or its affiliates may at any time be carrying for Trader (either individually, jointly with another, or as a guarantor of the account of any other person) or which may at any time be in its possession or control or carried on its books for any purpose, including safekeeping, are to be held by Rich Victor Trading as security and subject to a general lien and right of set-off for liabilities of Trader to Rich Victor Trading whether or not Rich Victor Trading has made advances in connection with such securities, commodities, currencies or other property, and irrespective of the number of accounts Trader may have with Rich Victor Trading. Trader hereby also grants to Rich Victor Trading the right to pledge, re-pledge, hypothecate, invest or loan, either separately or with the property of other Traders, to itself as broker or to others, any securities or other property of Trader held by Rich Victor Trading as margin or security. Rich Victor Trading shall at no time be required to deliver to Trader the identical property delivered to or purchased by Rich Victor Trading for any account of Trader.
6. SETTLEMENT DATE AND ROLLOVERS.
With respect to purchases or sales of Currencies through an OTCFX account, Trader agrees to instruct Rich Victor Trading as to the offset or rollover of a Currency position. Except as provided herein, during the term of the Currency position, Trader shall give Rich Victor Trading instructions for rolling the Currency position no later than two hours prior to the settlement of trading in the Currency contract on the day Trader intends to rollover a Currency position. In addition, Trader, by noon of the business day before the settlement date of the contract of the Currency contract, shall instruct Rich Victor Trading whether to deliver, offset or rollover the Currency position. In the absence of timely instructions from Trader, Rich Victor Trading is authorized, at Rich Victor Trading’ absolute discretion, to deliver, rollover or offset all or any portion of the Currency positions in the OTCFX account(s) for Trader’s Account(s) and at Trader’s risk. Trader’s account(s) shall be charged commissions, at broker’s rates, upon the rollover or offset of a Currency position.
7. LIQUIDATION OF ACCOUNTS.
In the event of (a) the death or judicial declaration of incompetence of Trader; (b) the filing of a petition in bankruptcy, or a petition for the appointment of a receiver, or the institution of any insolvency or similar proceeding by or against
Trader; (c) the filing of an attachment against any of Trader’s accounts carried by Rich Victor Trading, (d) insufficient margin, or Rich Victor Trading’ determination that any collateral deposited to protect one or more accounts of Trader is inadequate, regardless of current market quotations, to secure the account; (e) Trader’s failure to provide Rich Victor Trading any information
requested pursuant to this agreement; or (f) any other circumstances or developments that Rich Victor Trading deems appropriate for its protection, and in Rich Victor Trading’ sole discretion, it may take one or more, or any portion of, the following actions: (1) satisfy any obligation Trader may have to Rich Victor Trading, either directly or by way of guaranty of suretyship, out of any of Trader’s funds or property in its custody or control or in the custody or control of any Rich Victor Trading affiliate; (2) sell any or purchase any or all currency contracts, securities or other property held or carried for Trader; and (3) cancel any or all outstanding orders or contracts, or any other commitments made with Trader. Any of the above actions may be taken without demand for margin or additional margin, without prior notice of sale or purchase or other notice to Trader,
Trader’s personal representatives, heirs, executors, administrators, trustees, legatees or assigns and regardless of whether the ownership interest shall be solely Trader’s or held jointly with others. In liquidation of Trader’s long or short positions, Rich Victor Trading may offset in the same settlement or it may initiate new long or short positions in order to establish a spread or straddle which in Rich Victor Trading’ sole judgment may be advisable to protect or reduce existing positions in Trader’s account. Any sales or purchases hereunder may be made according to Rich Victor Trading judgment and at its discretion.
8. SETTLEMENT DATE OFFSET INSTRUCTIONS.
Offset instructions on Currency positions open prior to settlement arriving at settlement date must be given to Rich Victor Trading at least one (1) business day prior to the settlement or value day. Alternatively, sufficient funds to take delivery or the necessary delivery documents must be in the possession of Rich Victor Trading within the same period described above. If neither instructions, funds nor documents are received, Rich Victor Trading may without notice, either offset Trader’s position or roll Trader’s positions into the next settlement time period or make or receive delivery on behalf of Trader upon such terms and by such methods deemed reasonable by Rich Victor Trading in its sole discretion.
9. CHARGES.
Trader shall pay such charges (including, without limitation, markups and markdowns, statement charges, idle account charges, order cancellation charges, account transfer charges or other charges) arising out of Rich Victor Trading providing services hereunder. Rich Victor Trading may change its charges without notice. All such charges shall be paid by Trader as they are incurred, or as Rich Victor Trading in its sole and absolute discretion may determine, and Trader hereby authorizes Rich Victor Trading to withdraw the amount of any such charges from Trader’s account(s).
10. WIRE TRANSACTIONS.
Rich Victor Trading shall neither receive nor disburse Trader’s funds in cash currency or cash equivalents. All transactions between Trader and Rich Victor Trading shall be performed by wire or other method in which the identities of both the sending and receiving parties can be verified by Rich Victor Trading and which Rich Victor Trading in its sole discretion shall deem appropriate. Rich Victor Trading shall not accept deposits from any third party to Trader’s account Rich Victor Trading shall not withdraw any funds from Trader’s account to any third party. Rich Victor Trading shall perform wire transactions only between Trader’s Rich Victor Trading account and another account which is held in Trader’s name or of which Trader clearly demonstrates ownership to Rich Victor Trading.
11. STATEMENTS AND CONFIRMATION.
Reports of the confirmation of orders and statements of accounts for Trader shall be deemed correct and shall be conclusive and binding upon Trader if not objected to immediately upon receipt and confirmed in writing within (1) day after electronic transmittal to Trader. In lieu of sending trade confirmation via postal mail, Rich Victor Trading will provide Trader access to view Trader’s account at any time with an online login via Internet. Objections on Trader’s part shall be
directed to Rich Victor Trading via email at info@RVForex.com, and shall be deemed received only if actually sent via e-mail, return receipt requested. Failure to object shall be deemed ratification of all actions taken by Rich Victor Trading or Rich Victor Trading’ agents prior to Trader’s receipt of said reports. Trader’s failure to receive a trade confirmation shall not relieve Trader of the obligation to object as set out herein.
12. COMMUNICATIONS.
Reports, statements, notices and any other communications will be transmitted to Trader electronically by posting to Trader’s online account or via e-mail to the e-mail address on Trader’s application, or to such other e-mail address as Trader may from time to time designate to Rich Victor Trading. All communications so posted or sent shall be deemed transmitted by Rich Victor Trading when posted or sent and deemed delivered to Trader personally, whether actually received by Trader or not.
13. RVMarkets’S RESPONSIBILITIES.
Rich Victor Trading will not be responsible for delays in transmission of orders due to breakdown of transmission or communication facilities, electrical power outage or for any other cause beyond Rich Victor Trading’ control or anticipation. Rich Victor Trading shall not be liable for losses arising from the default of any agent or any other party used by Rich Victor Trading under this agreement.
14. CURRENCY FLUCTUATION RISK.
If Trader directs Rich Victor Trading to enter into any foreign exchange transaction: (a) any profit or loss arising as a result of a fluctuation in the exchange rate affecting such currency will be entirely for Trader’s account and risk; (b) all initial and subsequent deposits for margin purposes shall be made in USD, or another currency which Rich Victor Trading may choose to accept, in such amounts as Rich Victor Trading may in its sole discretion require, with subsequent deposits being in the same currency as the initial deposit; and (c) Rich Victor Trading is authorized to convert funds in Trader’s account for margin into and
from such foreign currency at a rate of exchange determined by Rich Victor Trading in its sole discretion on the basis of the then prevailing money market rates.
15. TRADING RECOMMENDATIONS.
(a) Trader acknowledges that (i) any market recommendations and information communicated to Trader by Rich Victor Trading or by any person within the company, does not constitute an offer to sell or the solicitation of an offer to buy any foreign exchange contract, (ii) such recommendation and information, although based upon information obtained from sources believed by Rich Victor Trading to be reliable, may be based solely on a broker’s opinion and that such information may be incomplete and may be unverified, and (iii) Rich Victor Trading makes no representation, warranty or guarantee as to, and shall not be responsible for, the accuracy or completeness of any information or trading recommendation furnished to Trader. Trader acknowledges that Rich Victor Trading and/or its officers, directors, affiliates, associates, stockholders or representatives may have a position in or may intend to buy or sell currencies, which are the subject of market recommendations furnished to Trader, and that the market position of Rich Victor Trading or any such officer, director, affiliate, associate, stockholder or representative may not be consistent with the recommendations furnished to Trader by Rich Victor Trading. Trader acknowledges that Rich Victor Trading makes no representations concerning the tax implications or treatment of foreign exchange contracts.
16. TRADER REPRESENTATIONS AND WARRANTIES.
Trader represents and warrants that: (a) Trader is of sound mind, legal age and legal competence; and, (b) no person other than Trader has or will have an interest in Trader’s account(s); and, (c) Trader hereby warrants that regardless of any subsequent determination to the contrary, Trader is suitable to trade foreign exchange contracts, and, (d) Trader is not now an employee of any exchange, any corporation in which any exchange owns a majority of the capital stock, any member of any exchange and/or firm registered on any exchange, or any bank, trust, or insurance company, and in the event that Trader becomes so employed, Trader will promptly notify Rich Victor Trading via e-mail of such employment; and, (e) all the information provided in the information portion of this booklet is true, correct and complete as of the date hereof and Trader will notify Rich Victor Trading promptly of any changes in such information.
17. DISCLOSURE OF FINANCIAL INFORMATION.
Trader represents and warrants that the financial information disclosed to Rich Victor Trading in this document is an accurate representation of the Trader’s current financial condition. Trader represents and warrants that in determining Trader’s Net Worth, Assets and Liabilities were carefully calculated, then Liabilities were subtracted from Assets to determine the value that Trader has included in the financial information as Net Worth. Trader represents and warrants that in determining the value of Assets, the Trader included cash and/or cash equivalents, Marketable securities, real estate owned (excluding primary residence), the cash value of life insurance and other valuable Assets. Trader represents and warrants that in determining the value of Liabilities, Trader included notes payable to banks (secured and unsecured), notes payable to relatives, real estate mortgages payable (excluding primary residence) and other debts. Trader represents and warrants that in determining Trader’s Liquid Assets Trader included only those Assets that can be quickly (within one day’s time) converted to Cash. Trader represents and warrants that Trader has very carefully considered the portion of Trader’s assets which Trader considers to be Risk Capital. Trader recognizes that Risk Capital is the amount of money Trader is willing to put at risk and if lost would not, in any way, change Trader’s lifestyle. Trader agrees to immediately inform Rich Victor Trading if the Trader’s financial condition changes in such a way to reduce Trader’s Net Worth, Liquid Assets and/or Risk Capital.
18. NO GUARANTEES.
Trader acknowledges that Trader has no separate agreement with Trader’s broker or any Rich Victor Trading employee or agent regarding the trading in Trader’s Rich Victor Trading account, including any agreement to guarantee profits or limit losses in Trader’s account. Trader understands that Trader is under an obligation to notify Rich Victor Trading Compliance Officer immediately in writing as to any agreement of this type. Further, Trader understands that any representations made by anyone concerning Trader’s account that differ from any statements Trader receives from Rich Victor Trading must be brought to the attention of Rich Victor Trading Compliance Officer immediately in writing. Trader understands that Trader must authorize every transaction prior to its execution unless Trader has delegated discretion to another party by signing Rich Victor Trading limited trading authorization, and any disputed transactions must be brought to the attention of Rich Victor Trading Compliance Officer pursuant to the notice requirements of this Trader Agreement. Trader agrees to indemnify and hold Rich Victor Trading harmless form all damages or liability resulting from Trader’s failure to immediately notify Rich Victor Trading Compliance Officer of any of the occurrences referred to herein. All notices required under this section shall be sent to Rich Victor Trading at its home office.
19. CREDIT.
Trader authorizes Rich Victor Trading or agents acting on behalf of Rich Victor Trading to investigate Trader’s credit standing and in connection therewith to contact such banks, financial institutions and credit agencies as Rich Victor Trading shall deem appropriate to verify information regarding Trader. Trader further authorizes Rich Victor Trading to investigate Trader’s current and past investment activity, and in connection therewith, to contact such futures commission merchants, exchanges, broker/dealers, banks, and compliance data centers as Rich Victor Trading shall deem appropriate. Upon reasonable request
made in writing by Trader to Rich Victor Trading, Trader shall be allowed to review any records maintained by Rich Victor Trading relating to Trader’s credit standing. Trader shall also be allowed, at Trader’s sole cost and expense, to copy such records.
20. JOINT ACCOUNTS.
If this account is held by more than one person, all of the joint holders are jointly and severally liable to Rich Victor Trading for any and all obligations arising out of transactions in the account and agree to be bound by all terms and conditions of this Trading Agreement and other written agreements relating to the account. In addition, each person named on the account singly has authority: a) to trade for the account, b) to receive all correspondence and documents in respect to the account, c) To receive or withdraw money from the account, d) to execute agreements relating to the account, and e) to deal with Rich Victor Trading fully in all matters. Rich Victor Trading has the authority to require joint action by the parties of the account in matters of the account. Rich Victor Trading has possession over the security of the account individually or jointly. If this account is a joint account, in the event of the death of any of the tenants, the survivor(s) shall immediately give
Rich Victor Trading written notice thereof, and Rich Victor Trading, before or after receiving such notice, may take such action, institute such proceedings, require such papers, retain such portion of the account, and restrict transactions in the account as Rich Victor Trading may deem advisable to protect Rich Victor Trading against any tax, liability, penalty, or loss under any present or future laws or otherwise. The estate(s) of any of the tenants who shall have died shall be liable, and the survivor(s) shall continue to be liable, to Rich Victor Trading for all obligations in the account in any way resulting from the completion of transactions initiated prior to the receipt of Rich Victor Trading of the written notice of the death of the decedent, or incurred in the liquidation of the account, or the adjustment of the interests of the respective parties. Each tenant is presumed to have equal share.
21. NO WAIVER OR AMENDMENT.
No provision of this Agreement may be waived or amended unless the waiver or amendment is in writing and signed by both Trader and an authorized officer of Rich Victor Trading. No waiver or amendment of this Agreement may be implied from any course of dealing between the parties or from any failure by Rich Victor Trading or its agents to assert its rights under this Agreement on any occasion or series of occasions. No oral agreements or instructions to the contrary shall be recognized or enforceable. This instrument and the attachments hereto embody the entire agreement of the parties, superseding any and all prior written and oral agreements and there are no other terms, conditions or obligations other
than those contained herein.
22. GOVERNING LAW AND JURISDICTION.
This Agreement, and the rights and obligations of the parties hereto, shall be governed by, construed and enforced in all respects by the laws of the Hong Kong (where Rich Victor Trading principal order execution facilities are located), without regard to choice of law principles.
23. BINDING EFFECT.
This Agreement shall be continuous and shall cover, individually and collectively, all accounts of Trader at any time opened or reopened with Rich Victor Trading irrespective of any change or changes at any time in the personnel of Rich Victor Trading or its successors, assigns, or affiliates. This Agreement including all authorizations, shall inure to the benefit of Rich Victor Trading and its successors and assigns, whether by merger, consolidation or otherwise, and shall be binding upon Trader and/or the estate, executor, trustees, administrators, legal representatives, successors and assigns of Trader. Trader hereby ratifies all transactions with Rich Victor Trading effected prior to the date of this Agreement, and agrees that the rights and obligations of Trader in respect thereto shall be governed by the terms of this Agreement.
24. TERMINATION.
This Agreement shall continue in effect until termination, and may be terminated by Trader at any time when Trader has no open position(s) and no liabilities held by or owed to Rich Victor Trading upon the actual receipt by Rich Victor Trading of written notice of termination via e-mail, or at any time whatsoever by Rich Victor Trading upon the transmittal of written notice of termination to 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 Trader of any obligations arising out of prior transactions entered into in connection with this Agreement.
25. INDEMNIFICATION.
Trader agrees to indemnify and hold Rich Victor Trading, its affiliates, employees, agents, successors and assigns harmless from and against any and all liabilities, losses, damages, costs and expenses, including attorney’s fees, incurred by Rich Victor Trading arising out of Trader’s failure to fully and timely perform Trader’s agreements herein or should any of the representations and warranties fail to be true and correct. Trader also agrees to pay promptly to Rich Victor Trading all damages, costs and expenses, including attorney’s fees, incurred by Rich Victor Trading in the enforcement of any of the provisions of this Agreement and any other agreements between Rich Victor Trading and Trader.
26. CROSS TRADE CONSENT.
The undersigned hereby acknowledges and agrees that a situation may arise whereby an officer, director, affiliate, associate, employee, bank, bank employee or dealer associated with Rich Victor Trading may be the opposing broker for a trade entered for the undersigned’s account. The undersigned hereby consents to any such transaction, subject to the limitations and conditions, if any, contained in the Rules or Regulations of any bank, institution, exchange or board of trade upon which such buy or sell orders are executed, and subject to the limitations and conditions, if any, contained in any applicable Regulations of any applicable regulatory agency.
27. TERMS AND HEADINGS.
The term “Rich Victor Trading” shall be deemed to include Rich Victor Trading, its divisions, successors and assigns; the term “Trader” shall mean the party (or parties) executing the Agreement; and the term “Agreement” shall include all other agreements and authorizations executed by Trader in connection with the maintenance of Trader’s account with Rich Victor Trading regardless of when executed. The paragraph headings in this Agreement are inserted for convenience of reference only and are not deemed to limit the applicability or affect the meaning of any of its provisions.
28. ACCEPTANCE.
This Agreement shall not be deemed to be accepted by Rich Victor Trading nor become a binding contract between Trader and Rich Victor Trading until approved by Rich Victor Trading.
29. JURISDICTION, VENUE, WAIVER OF JURY TRIAL AND SHORTENING OF LIMITATIONS PERIOD.
Trader agrees that any civil action, arbitration or other legal proceeding between Rich Victor Trading or its employees or agents, on one hand, and Trader on the other hand, arising out of or relating to this Agreement or Trader’s account shall be
brought, heard and resolved only by a tribunal located in the Hong Kong and Trader hereby waives trial by jury in any such action or proceeding and waives the right to have such proceeding transferred to any other location. No action, regardless of form, arising out of or relating to this agreement or transactions hereunder may be brought by Trader more than one year after the cause of action arose. Trader hereby submits and consents to personal jurisdiction in any court in the Province of Ontario, Canada and appoints and designates Rich Victor Trading (or any other party whom Rich Victor Trading may from time to time hereinafter designate) as Trader’s true and lawful attorney in-fact and duly authorized agent for service of legal process, and agrees that service of such process upon Rich Victor Trading or such other party shall constitute personal service of such process upon Trader; provided, that Rich Victor Trading or such other party shall, within five days after receipt of any such process, forward the same by air courier or by certified or registered mail, together will all papers affixed thereto, to Trader at Trader’s last known mailing address.
30. RECORDINGS.
Trader agrees and acknowledges that all conversations regarding Trader’s account(s) between Trader and Rich Victor Trading personnel may be electronically recorded with or without the use of an automatic tone-warning device. Trader further agrees to the use of such recordings and transcripts thereof as evidence by either party in connection with any dispute or proceeding that may arise involving Trader or Rich Victor Trading. Trader understands that Rich Victor Trading destroys such recordings at regular intervals in accordance with Rich Victor Trading’ established business procedures and Trader hereby consents to such destruction.
Correctness of Information and Risk Acknowledgement
I hereby represent that the information provided by me on all pages of this Trading Account Application is true and correct. I further represent that I will notify Rich Victor Trading of any material changes in writing.
I acknowledge having read and understood the Risk Disclosure Statement enclosed with this Agreement.
I also acknowledge that this is a legally binding contractual agreement. I have read it carefully, and by signing, I agree to be bound by every term and condition.
No modification of this Agreement is valid unless accepted by Rich Victor Trading in writing. I confirm that I have received a full set of account documents and I have not made any alterations or deletions to this agreement or any such documents from the original forms.
In the event that there are any alterations or deletions to this agreement or any such documents such alteration and deletions shall not be binding on Rich Victor Trading and said original forms shall govern Trader account relationship with Rich Victor Trading.
