Legal Note Type: Customer Agreement Policy

10.1. Force majeure circumstances shall include but not limited to: any actions, events or circumstances (including but not limited to any strikes, riots, mass disturbances and civil disturbances, terroristic acts, floods, extraordinary weather conditions, earthquakes, fire, wars, labor disputes, accidents, government actions, connection and power failures, equipment and software failures, etc) which in the reasonable opinion of the company lead to destabilization of a market or markets of one or several tools, interruption of business, liquidation or closing of any market or absence of an event on the basis of which the company sets quotes or introduction of non-standard trading conditions at any market or towards any such event.

10.2. The company having sound ground is entitled to define the borders of force majeure circumstances occurrence. In the event of force majeure circumstances the company shall take all measures in good faith to notify the client about force majeure circumstances.

10.3. The client agrees that in the event of force majeure circumstances the company is entitled (without limiting other company rights according to the present agreement) without prior written notification and any time to take any of the following actions:

a) Increase margin requests

b) Close one or all open positions at a quote the company reasonably finds correct.

c) Suspend or modify application of one or all of provisions of the present agreement as long as force majeure circumstances do not allow the company to follow these provisions.

d) Take or not take any actions towards the company, the client and other clients, provided the company has reasonable grounds for considering such actions reasonable in such circumstances.

e) Reconsider financial result of all client trading operations, falling within force majeure circumstances, by changing quotes, opening/closing orders or total deletion of orders.

Client understands and agrees that he/she/it will not enter into unlawful, illegal and immoral transactions or any transaction contrary applicable laws, regulations and/or rules or Seven Capital’s policy or any transaction for purposes of Scalping, arbitrage or to intentionally exploit or manipulate any inaccuracy, regardless of how minor, major, obvious or unobvious, in any rate or pricing offered by SEVEN CAPITAL whether through the usage Of scripts, codes, electronic advisors, software or any other form of computer program or manual trading. SEVEN CAPITAL defines scalping as any transaction which remains open for a period of less than three minutes in duration. Client understands SEVEN CAPITAL is authorized to retroactively cancel transactions found, in SEVEN CAPITAL ‘s sole discretion, to be transactions entered into in order to exploit or manipulate pricing by means as set forth within this Section. SEVEN CAPITAL is then authorized to reclaim any trading profits Client obtains through the entering of any transaction in breach of this Clause in particular transactions for purposes of scalping, arbitrage or intentional exploitation of inaccuracies of rates/ pricing offered by SEVEN CAPITAL. Client acknowledges and understands that SEVEN CAPITAL does not guarantee the execution of orders at specific prices, including conditional orders such as stops and/or limits, specifically at times of increased volatility or volume, including market news announcements, due to gapping markets, greyed out pricing, and market liquidity. Client understands and agrees that should they receive off-market prices, for any reason, including but not limited to, delays, malfunctions or manual trading errors, SEVEN CAPITAL shall retroactively cancel such trades and may elect to leave such trades cancelled or reopen such trades at the correct market price, Client understands that orders received during instances of increased market volatility will be filled at the next best price available or the fair market value Client acknowledges that during instances of gapping markets, conditional orders, specifically stop losses, will be filled at the next available price following a gapping market. Pricing can gap past the price set forth in conditional orders, resulting in clients losing more funds than initially intended. Client acknowledges that due to such risks, SEVEN CAPITAL encourages clients to utilize market orders rather than conditional orders, as market orders are provided with a requote and allow Clients to accept or reject the new price. Client agrees that SEVEN CAPITAL is not responsible for any loses, including margin calls, which occur as a result of conditional orders being filled during a gapping market or orders being filled at certain prices as a result of greyed out pricing and/or limitations in market liquidity.

4.1. Order types in the trading platform Seven Capitals Foreign Brokerage Limited Trader.

4.1.1. The following order types to open a position (pending orders) may be located in the trading platform Seven Capitals Foreign Brokerage Limited Trader:

a) “Buy Stop” –expects to open a position to buy at a higher quote than the current one at the moment of an order placement.

b) “Sell Stop” –expects to open a position to sell at a lower quote than the current one at the moment of an order placement.

c) “Buy Limit” –expects to open a position to buy at a lower quote than the current one at the moment of order placement.

d) “Sell Limit” – expects to open a position to sell at a higher quote then the current one at the moment of an order placement. The following orders may be used to close a position.

e) “Stop Loss” –expects to close a previously opened position at a quote less profitable for the client, than the current quote at the moment of an order placement

f) “Take Profit” –expects to close a previously opened position at a quote more profitable for the client than the current quote at the moment of an order placement.

4.2. Time of placement and validity period of orders

4.2.1. Placement, modification and removal of orders by the client shall be performed only during the period when trading according with the following tool is allowed. Trading hours for each tool are stated in the tool specifications.

4.2.2. Should irregular market situations occur, the trading with a certain tool may be stopped mandatorily, till the causes of the closing are removed.

4.2.3. All pending orders as well as orders “Stop Loss” and “Take Profit” for financial tools have the GTC Status (“Good Till Cancelled”) and are accepted for the indefinite periods. The client is entitled to set the date and expiration date order validity him/herself, filling the date and time in the fields “Expiry”.

4.3. Order placement regulations.

4.3.1. At the moment when the client submits an order to place the pending orders the following parameters are to be determined:

a) Name of the tool

b) Volume

c) Order type (Buy Stop, Buy Limit, Sell Stop, Sell Limit)

d) Order level

4.3.2. Additionally, to the parameters determined in the client order, optional parameters may be stated in the order, such as the following:

a) Stop Loss level of a pending order. 0.0000 value means that Stop Loss is not placed (or deleted if it had been submitted earlier).

b) Take Profit level of a pending order. 0.0000 value means that Take Profit is not placed (or deleted if it had been submitted earlier).

c) Date and time of a pending order validity.

4.3.3. The trading server may decline an order in the following cases:

a) If the value of one or several required parameters is missing or wrong

b) In such a case if a pending order is placed by means of the client terminal without using an expert advisor, an error message will appear: “Invalid S/L or T/P”.

4.3.4. When the Client submits an order to place “Stop Loss” and “Take Profit” for open positions the following parameters are to be determined:

a) Ticker of the open position for which the orders are placed

b) “Stop Loss” order level. 0.0000 value means that “Stop Loss” is not placed (or deleted if it has been place earlier).

c) “Take Profit” order level. 0.0000 value means that “Take Profit” is not placed (or deleted if it has been placed earlier).

4.3.5. Orders of all types shall not be placed closer than a stated number of points to the current market quote. The minimum distance in points from the level of a placed order to the current quote (pending order level) for each tool is stated in tool specifications at the company website.

4.3.5.1. If the order is executed in irregular market conditions, Stop levels may be increased.

4.3.6. Requests for order closure or modification, in case the current quote is closer to the S/L or T/P levels of this order than to the “Stop levels” value, will be declined with the commentary as follows: “Modification disabled. The order is too close to the market” or “No quote”.

4.3.7. Requests to set, modify or delete a pending order, in case the current quote is closer to the S/L or T/P price of this order than to the “Stop levels” value, will be declined with the commentary as follows: “Invalid S/L or T/P” or “No quote”.

4.3.8. When a note about an order placement appears in the server log-file, it means that the client order has been processed and the order is placed.

4.3.9. Every pending order receives a ticker.

4.3.10. If an order for placement is received for processing before a first quote appears in the trading platform, it will be declined by a trading server. The window “No price/Trading is forbidden” will appear in the client terminal.

4.4. Orders modification and deletion

4.4.1. When the client submits an order to modify parameters of pending orders (level of a pending order, Stop Loss and Take Profit for this pending order) the following parameters are to be defined:

a) Ticker

b) Order level

c) Stop Loss order level. 0.0000 value means that Stop Loss is not places or deleted if it has been placed earlier. A trading server is entitled to cancel an order if a wrong value of one or several parameters has been given. In such a case a button “Modify” is not activated.

4.4.2. When the client submits an order to modify Stop Loss and Take Profit orders for the open position, the following parameters are to be defined:

a) Ticker for an open position

b) Stop Loss order level. 0.0000 value means that Stop Loss is not placed or deleted if it has been placed earlier.

c) Take Profit order level. 0.0000 value means that Take Profit is not placed or deleted if it has been placed earlier.

4.4.3. When the client submits an order to delete a pending order, he/she shall state the ticker of a deleting order.

4.4.4. When a note about modifying or deleting an order appears in the server log-file, the client order to modify or delete an order is considered processed and an order is considered to be modified or deleted.

4.4.5. A trading server may decline a modification or deletion order if it has been submitted for processing before a first quote in the trading platform at market opening appeared. If a dealer by mistake processes a client order, order modification or deletion may be cancelled. The client will receive a notification about it via internal email of a trading terminal.

4.5. Order execution

4.5.1. An order is executed in the following cases:

a) Orders Sell Stop –at the moment, when Bid price in the quote flow is equal or smaller than an order level.

b) Buy Stop order –at the moment, when Ask price in the quote flow is equal or bigger than an order level.

c) Sell Limit order –at the moment, when Bid price in the quote flow is equal or bigger than an order level.

d) Buy Limit order –at the moment, when Ask price in the quote flow is equal or smaller than an order level.

e) Take Profit order –for an open buying position, when Bid price in the quote flow is equal or bigger than an order level.

f) Stop Loss order –for an open buying position, when Bid price in the quote flow is equal or smaller than an order level.

g) Take Profit order –for an open selling position, when Ask price in the quote flow is equal or smaller than an order level.

h) Stop Loss order –for an open selling position, when Ask price in the quote flow is equal or bigger than an order level.

4.5.2. In the cases of price gaps order execution is determined by the following rules:

a) If “Take Profit” level of a pending order is in the price gap during order opening, once the order is opened Take Profit settings will be annulled. In such a case a note is added to the comments: (tp cancelled/gap).

b) “Take Profit” order with a level in the price gap is executed at the stated in the order quote.

c) “Stop Loss” order with a level in the price gap is executed at the first quote after a price gap. In such a case a note is added to the comments (sl/gap).

d) “Buy Stop” and “Sell Stop” pending orders are executed at the first quote after the price gap. In such a case a note is added to the comments (started/gap).

e) “Buy Limit” and “Sell Limit” pending orders are executed at the stated in them quotes. In such cases a note is added to the comments (started/gap).

f) in case a price gap is over 300 pips and profit is recorded on it, the company reserves the right to limit profit for such an order by 300 pips. In certain cases, with small price gaps orders may be executed in the standard mode at the stated in them quotes.

4.5.3. a) In regular market conditions the order is executed by the company at the price specified in the order.

b) If the order is executed in irregular market conditions, the order execution price may differ from the one specified in the order, either in favor of the client or not.

4.5.4. In case the following conditions are simultaneously met on the client’s account:

a) Margin level does not exceed the consequent of the leverage ratio currently set on the account.

b) 60% or more of total position volume is placed at one trading tool and in the same direction (sell or buy).

c) This part of the total position has been formed within 24 hours’ period before the market closes.

3.1. The company reserves a right to change the trading conditions with a prior notification

3.2. Client’s orders and requests

3.2.1. During trading operations, the following execution methods are applied:

a) “Market execution” method –for Futures and Stock CFDs

b) “Market execution” method –for FOREX market trading tools

3.2.2. Any client’s order given by means of Metatrader 5 trading terminal generally goes through the following steps:

a) The client submits an electronic order.

b) The client terminal sends the order or request to the server.

c) Provided there is a stable connectivity between the client terminal and the server, the order is received by the server and verified.

d) In case the order is valid, it is put into the queue. In this case “Please wait… Order is being processed by the server” message is displayed in the “Order” window of the client terminal.

e) The server returns the order processing results to the client terminal.

f) Provided there is a stable connectivity between the client terminal and the server, the terminal receives the order or request processing results.

3.2.3. The client can cancel a sent order only while it is in queue with “Order is accepted” status. In this case the client should press “Cancel order” button. Due to the specifics of Metatrader 5 platform order cancellation in this case cannot be guaranteed.

3.2.4. In case the order has reached the dealer and has “Order is in process” status, such order cannot be cancelled.

3.2.5. The time of the order processing depends on the connection between the client terminal and the company’s server, as well as on the current market conditions. During regular market hours the order processing time usually is 1 to 5 seconds. In irregular market conditions, the processing time can last longer.

3.2.6. In case the current quote of the financial instrument changes at the moment when the company is processing the client’s request, the company reserves the right to use the new price (Bid/Ask). In such case, the client’s request will be processed at the new price.

3.2.7. A client’s request is declined in the following cases:

a) During market opening when the order is sent before the first quote is received by the trading platform.

b) In irregular market conditions.

c) In case the client doesn’t have sufficient margin. In this case “No quote” or “Not enough money” message is displayed by the trading platform.

d) In case the client uses an electronic advisor performing over 30 requests per minute, the company reserves a right to ban such EAs.

e) For instruments with fixed spread or fixed commission for order opening with no spread, the company reserves the right to change to “Close only” mode and decline new requests for order opening with the comment “Trade is disabled” in case spread on the basic contract exceeds the size of fixed spread or commission amount.

3.2.8. The general means of sending orders and requests is the trading terminal. Orders and requests can also be sent by phone or live chat.

3.2.9. In exceptional cases the use of the same IP address by different clients can be a basis to consider all the orders on all the accounts, performed form this IP address as those performed by the same client.

3.2.10. Orders opened or closed by off-market quotes can be cancelled:

a) In case the order was opened by an off-market quote.

b) In case the order was closed by an off-market quote.

3.2.11. The company doesn’t allow the usage of arbitrage strategies on connected markets (e.g. currency futures and spot currencies). In case the client uses arbitrage in either clear or hidden way, the company reserves a right to cancel such orders.

3.2.12. The company reserves a right to cancel client’s orders in case they do not comply with this agreement.

3.3. Trading operations:

3.3.1. A buy order is opened by Ask price. A sell order is opened by Bid price.

3.3.2. A buy order is closed by Bid price. A sell order is closed by Ask price.

3.3.3. Position rollover: Swap addition/deduction to open orders is carried out from 23:59:00 to 00:10:00, trading platform time. So the swap will be added/deducted to all orders which were open during the period from23:59:00 to 00:00:00, trading platform time.

3.3.4. In case of trading those CFD contracts that have limited period of trading (expiration date), all orders executed on one contract will be closed by the last quote.

3.3.5. In regular market conditions a dealer keeps the spread within the range stated in the contract specifications.

3.3.6. Spread can be increased:

For all company clients without prior notification in the event, the conditions come different from the regular ones.

For all clients with obligatory prior update of contracts, specification changes at the company website.

For all clients without prior notification in the event of force majeure circumstances; For any request exceeding regular market volume for the tool stated in the contract specification.

3.3.7. Spread on trading accounts can be widened before, in time and after economic, political and other news release, during the gap, at the time of Market opening (on Monday) as well as at the time of low market liquidity and when a market situation is conditional on high spreads.

3.3.8 For instruments with fixed spread or fixed commission, the company reserves the right to increase spread in case spread on the basic contract exceeds the size of fixed spread.

3.4. Open an order:

3.4.1. The obligatory parameters for submitting an order are: Name of the tool, Trade volume and Order type.

3.4.2. To open an order by means of the client terminal without using an expert advisor, the client should press the button “Buy” or “Sell” at the moment, when company’s quotes satisfy him/her.

3.4.3. To open an order by means of the client terminal using an expert advisor, an order should be generated to perform trade at a current quote.

3.4.4. Order processing for open orders

a) At the moment when a client’s order to open the position comes to the server, an automatic check of the trading account for free margin for the open order is carried out. In the event that the necessary margin is present, the order is opened. If the margin is not sufficient, the order is not opened and a notice about absence of funds is created on the server.

b) In case of the “Market execution” trading tool type, a quote for opening an order may differ from the requested one.

c) The note about the open order appearing on log-file of the server declares that the client’s request has been processed and the order has been opened. Each open order on the trading platform receives a ticker.

d) An order to open a position submitted for processing before first quote appears on the trading platform at market opening, will be declined. In this event in the client terminal window a message will appear “No quote/trading is forbidden”. In the event of the dealer processing by mistake a client request to open an order at the price of the previous day closing, the company is liable to cancel such an order. In such a case the company contacts the client and informs about it.

3.5. Close an order:

3.5.1. To close an order by means of the client terminal without using an expert advisor, the client should press the button “Close” in the moment, when company quotes satisfy him/her.

3.5.2. To close an order by means of the client terminal using an expert advisor, an order shall be generated to close the order at a current quote.

3.5.3. The following orders “Stop Loss” and/or “Take Profit” may be used for closing an order.

3.5.4. Processing orders to close a position-

a) If in the list of open orders on a trading account there are two or more locked positions, then while generating a request or an order to close any of those, an option “Close by” appears in the dropdown “Type” list. After choosing it, one or several open positions of the reverse direction appear. After marking the needed position from the list, a button “Close#…by#…” is activated. By pressing it the client closes locked positions of equal volumes or partly closes two locked positions of different volumes. In such a case a smaller position and a symmetric part of a bigger one close and a new position in the direction of a bigger between the two stays open, thus receiving a new ticker.

b) If in the list of open orders on a trading account there are two or more locked positions, then while generating a request or an order to close any of those, an option “Multiple Close by” appears in the dropdown “Type” list. After choosing it, a list of all positions for the given tool appears and a button “Multiple Close By for…” is activated. By pressing this button, the client closes all locked positions for the tool. In such a case a new position(s) stays open in the direction of a bigger total volume, which receives a new ticker. Important: functions “Close By” and “Multiple Close By” do not operate for the tools with floating stock spread.

c) When the note about closing a position appears in the log-file, this means that the client’s order to close a position has been processed.

d) If an order to close a position has been submitted for processing before a first quote appeared at the trading platform at market opening, such an order shall be declined by the dealer. In the client terminal window, a message “No price” will appear. The company is entitled to cancel trade when the dealer processed the client’s order to close a position at a quote of a previous day closing by mistake. In such a case the company contacts the client and informs about it.

e) If a “Market execution” type is used for a trading tool, quote for closing an order may differ from the requested one.

3.6. Mandatory position closure:

3.6.1. If margin level is lower than 40% on the client account, margin call occurs. The company is entitled but not liable to close client positions. Decision to close positions is made by the server.

3.6.2. The company is entitled to mandatory closing of client open positions without prior notification of the latter one, if a margin level is less than or equal to 20% of the necessary margin for maintaining open positions.

3.6.3. The current account balance is controlled by the server, which in the event of execution of P. 3.6.2. of the present agreement generates an order to stop out. Stop out is executed at a current market quote on a first -come basis with client orders. Mandatory position closure is noted in the log-file of the server with a notice “stop out”.

3.6.4. In the event of executing conditions of P. 3.6.2. of the present agreement shall the client have several open positions, the first position closed is the one with biggest floating loss.

3.6.5. When after a mandatory position closure the client, account has a negative balance, compensation is added to the account, which sets the account to zero. However, in special cases (when the company considers client’s actions as intentional) the company reserves the right to claim a debt payment from the client.

3.6.6. In case the company has reasons to believe that a client operates two or more accounts under different registration data (e.g. opening opposite orders on the same trading instrument that are left open over the weekend or during the period between trading sessions), Seven Capitals Foreign Brokerage Limited reserves the right to deduct the losses exceeding the balance of one account from the funds of another account belonging to a client.

3.6.7. In case Balance fixed occurs on a client’s account, the amount of funds compensated by the company will be deducted from the total sum of the Cashback commission to be paid for the current day.

3.7. Leverage change:

3.7.1. For the company’s client leverage change is possible only once in 24 hours. For security reasons of trade operations performed by the client, it is impossible to change leverage if the account is in the trade mode (there are open orders).

3.7.2. The company is entitled to change leverage on the client account any time without prior notification.

3.7.3. In order to minimize client’s risks at the time of market opening on Monday, in case a client kept open orders during the weekend, the company reserves the right to lower the leverage and change margin requirements several fold.

3.7.4. The leverage for the trading of Metals, CFD, and Crypto currency trading at any trading account is set at:

• 1:333 for Metals

• 1:100 for CFD

• 1:10 for Stocks

• 1:3 for Crypto currencies.