Negative Balance Policy

Auric International Markets Limited (the “Company” or “AIMSCAP”) is a trading brokerage incorporated and registered under the laws of the Labuan Financial Services Authority. The Company operates under a Straight Through Processing (“STP”) execution model, whereby client orders are transmitted directly to liquidity providers and counterparties.

Accordingly, and save as set out in the Company’s Negative Balance Protection policy below, clients shall remain responsible for losses and deficits resulting from trading activities conducted through their trading account(s). The client is expected to actively monitor and manage open positions and to contact the Company regarding available options if the account approaches a margin call or stop-out level.

The Company may consider the following, whether intentional or unintentional, to constitute abusive or prohibited trading activity, including but not limited to: hedging exposure through multiple trading accounts, whether in the client’s own name or in connection with another client; submitting a cash withdrawal request which causes the margin level to fall to 50% or lower; and using arbitrage strategies to intentionally exploit gaps, delays, pricing inefficiencies, execution latency, or system vulnerabilities resulting in exceptionally large exposure to the Company.

It also includes coordinated trading activity intended to manipulate exposure or transfer risk between accounts; intentionally maintaining excessive exposure during periods of extreme volatility, illiquid market conditions, rollover periods, market gaps, or major economic announcements; and/or failure to take reasonable and responsible action to manage open positions and reduce risk exposure.

The Company reserves the right, at its sole discretion, to investigate, cancel, void, reverse, adjust, or refuse any trades, profits, credits, rebates, or account balances arising from trading activity deemed abnormal, abusive, manipulative, fraudulent, exploitative, or conducted in bad faith.

Where the Company reasonably determines that a client has intentionally attempted to create, exploit, benefit from, or transfer a negative-balance exposure through any trading strategy, coordinated activity, latency exploitation, arbitrage practice, system manipulation, or account abuse, the Company reserves the right to: suspend or terminate the client’s account(s); cancel profits and trading results; recover all losses, costs, or damages incurred by the Company; offset liabilities against any funds held under the client’s account(s); and/or pursue legal recovery actions where necessary.

Where the Company determines that the Negative Balance Protection policy does not apply to a trading account (including due to abusive trading practices), the Company reserves the right to demand immediate repayment of any negative balance on that account and may take any necessary action permitted under applicable laws and regulations to recover outstanding amounts owed by the client. The Company further reserves the right, at its sole discretion, to suspend, restrict, terminate, or take any necessary action against any trading account suspected of abusive trading practices, policy violations, or conduct deemed detrimental to the Company’s risk-management framework.

Negative Balance Protection means the limit of a client’s aggregate liability, for all CFDs connected to a trading account with the Company, to the funds in that account.

Trading in leveraged financial instruments involves significant risk to your invested capital. However, the Company follows a Negative Balance Protection policy, on a per-account basis, which aims to ensure that your maximum losses from trading CFDs, including all related costs, are limited to the total funds in your trading account (i.e., no additional liability is incurred). This includes any funds yet to be paid into your account due to net profits from the closure of open trades connected to your trading account.

Notwithstanding the above, any indication or suspicion, in the Company’s reasonable discretion, of any form of arbitrage performed in your trading account (whether solely or in connection with other clients), abuse (including trading-activity patterns indicating an aim to benefit financially without genuine interest in the markets or taking market risk), internal hedging in coordination with other parties, or abuse of our “no negative balance” protection constitutes a violation of these Terms and Conditions. In such cases, we reserve the right, among others, not to apply our Negative Balance Protection policy and to transfer any or all funds you may hold in a different trading account to set off the obligations (e.g., a negative balance) incurred on the account used for any abusive acts.