| 1. |
The Margin Trading Agreement must include the following information—
|
| |
a. |
an explanation of the VASP’s responsibilities and the respective obligations of the VASP and the client including, but not limited to, termination rights, the effect of termination, applicable dispute resolution mechanisms and the VASP’s obligation to provide an early warning notification under Rule III.C.1.h of this Broker-Dealer Services Rulebook including when such notifications will be provided; |
| |
b. |
whether the client has the right to withdraw cash from the Margin Trading Account, transfer amounts from the Margin Trading Account to the other account, or use such funds for new Margin financing if these amounts are higher than the Maintenance Margin; |
| |
c. |
how all financing is calculated, including but not limited to how and when it is paid or payable, the applicable rate, or in the case of a variable rate, how it is calculated and how it may vary and how such variations will be communicated by the VASP to the client; |
| |
d. |
an explanation of the following risks the client may be exposed to when undertaking Margin Trading, including but not limited to—
|
| |
|
i. |
the risk that the client may lose all or part of the funds deposited in the Margin Trading Account; |
| |
|
ii. |
the fact that the VASP may request that the client add Virtual Assets and/or funds in the Margin Trading Account if the Maintenance Margin falls below the prescribed levels or if the VASP increases Maintenance Margin requirements; |
| |
|
iii. |
the right of the VASP to sell all or part of the Virtual Assets in the Margin Trading Account if the Maintenance Margin falls below the percentage specified in the Margin Trading Agreement; and |
| |
|
iv. |
when and how the VASP may sell all or part of the Virtual Assets in the Margin Trading Account;
|
| |
e. |
express consent from the client that they understand, acknowledge and accept each of the risks listed in Rule III.E.1.d of this Broker-Dealer Services Rulebook above; |
| |
f. |
the applicable levels of Initial Margin and Maintenance Margin and circumstances in which Initial Margin and Maintenance Margin can be amended by the VASP; |
| |
g. |
a breakdown of the commissions, charges and fees charged by the VASP relating to Margin Trading and when they are payable; and |
| |
h. |
a confirmation of the client’s right to pay the cash balance of the price of the remaining Virtual Assets in the Margin Trading Account at any time.
|
| 2. |
VARA may require any amendments to the Margin Trading Agreement or other forms relating to Margin Trading conducted by a VASP as it deems appropriate.
|