Combined Auto-Liquidation Acknowledgment Signature Document


Combined Auto-Liquidation Acknowledgment

The undersigned (“Customer”) has entered into a Customer Agreement with Edge Clear LLC (“EdgeClear”) and one or more of EdgeClear's clearing partners (these are Phillip Capital Inc "PCI", Dorman Trading Inc “Dorman”, Ironbeam, Inc. "Ironbeam", Cunningham Commodities, LLC "Cunningham", or collectively "FCM" or "FCMs")  to open one or more accounts of Customer and to permit Customer to use an online trading platform to trade such accounts.  All provisions of the Customer Agreement are and shall remain in full force and effect.

EdgeClear and FCMs offer platforms that can be set to automatically liquidate when their value is below a certain threshold, and Customer desires to use this auto-liquidation function.  Customer remains able to liquidate their own positions on the platform at any time before they reach the established auto-liquidation value. Customer acknowledges that auto-liquidation is only available on specific platforms; as of now, it is a feature of the CTS, Rithmic, Certigo and Teton execution feeds only.

  1. Auto-Liquidation

In the event that any of Customer’s accounts reach a value equal to or less than:

    • EdgeClear's minimum liquidation trigger of $500 for customers trading all products on Rithmic and CTS;
    • EdgeClear’s minimum liquidation trigger of $200 for customer trading Micro products only (Customer must notify broker if only Micro trading is needed) on Rithmic and CTS; OR
    • a customer-set amount, higher than the foregoing minimums, that has been provided by Customer via e-mail communication with the broker;
    • for Sierra Chart Teton users, there is a cash-on-hand loss limit of 80% for Dorman and 90% for Cunningham, PCI and Ironbeam;
    • in some circumstances where a "special margin template" is being used, there is a cash-on-hand limit that may be set by the FCM or by EdgeClear;
    • For Certigo users under Ironbeam, there is a cash-on-hand loss limit of 80%.

then Customer hereby authorizes EdgeClear and FCMs to auto-liquidate any or all of the open positions in the account. The auto liquidation function will send liquidating (closing) market orders to the exchange, resulting in the closing of any or all open positions for the Customer’s account.  Customer acknowledges and agrees to his/her account being auto-liquidated at the then-current market price.  If for any reason positions are unable to be liquidated, Customer remains liable for the positions and for adverse market movements affecting the account.  Further, the Customer is responsible to pay any debit balance that may result from the account being auto-liquidated.

  1. Principal Risks of Auto Liquidation

EdgeClear and FCM can liquidate an account without prior notice to a Customer, including by auto liquidation authorized herein.  There are several risk factors associated with auto liquidation.  For instance, an account could be automatically liquidated if EdgeClear and FCMs have received wrong data from the exchanges or if there is a keypunch error in recording the data; or if the account value changes overnight, the account could be liquidated upon the market open; or market volatility alone could cause an account to be auto liquidated on short or relatively no notice to Customer.  EdgeClear and FCMs are not responsible or liable to Customer for any consequences of auto liquidation, including without limitation if caused by wrong data it receives from exchanges; late, lost, misdirected, misdelivered, incomplete, illegible, or unintelligible orders; unavailable network connections; failed, incomplete, garbled, or delayed computer transmissions; keypunch errors; online failure or other technical malfunctions or disturbances.  All other risk associated with trading is present even though EdgeClear and FCMs may exercise their rights to auto-liquidate.

NOTICE: Auto-Liquidation is not guaranteed and is provided by the relevant execution platform on a best-effort basis. There are circumstances where market volatility, technological malfunctions, or exchange limits might prevent auto-liquidation to function as expected. Customer acknowledges that they are responsible for checking their nightly account statements for unexpected positions and for notifying their personal EdgeClear broker of any discrepancies as soon as possible.

  1. Auto Liquidation Fees

In the event that the Customer’s account is auto-liquidated, EdgeClear and FCMs will charge a liquidation fee to the Customer. Liquidation fee amounts are provided in the Activation Email that was sent to Customer when their account was activated.

The undersigned understands and acknowledges the foregoing, and by signing below indicates its agreement to be bound by the terms of this form.

NOTICE: If you decide to trade options on your Rithmic account, you could be liquidated out of your options positions if the balance drops below the designated amount above. You must notify us before trading options.

Date: July 27, 2024

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Signature Certificate
Document name: Combined Auto-Liquidation Acknowledgment
lock iconUnique Document ID: 9774e0d6d2ddd37932bca28e36af611c38afa9c9
Timestamp Audit
October 21, 2022 11:10 am CDTCombined Auto-Liquidation Acknowledgment Uploaded by Edge Clear - client-services@edgeclear.com IP 108.220.7.113
November 1, 2022 1:27 pm CDTEdge Clear Client Services - client-services@edgeclear.com added by Edge Clear - web@edgeclear.com as a CC'd Recipient Ip: 75.3.235.196
January 12, 2024 12:45 pm CDTEdge Clear Client Services - client-services@edgeclear.com added by Edge Clear - web@edgeclear.com as a CC'd Recipient Ip: 108.220.7.113
May 27, 2024 5:33 pm CDTEdge Clear Client Services - client-services@edgeclear.com added by Edge Clear - client-services@edgeclear.com as a CC'd Recipient Ip: 23.122.56.82
May 28, 2024 8:14 am CDTEdge Clear Client Services - client-services@edgeclear.com added by Joshua Test - joshua@mercury.one as a CC'd Recipient Ip: 110.224.100.244
May 28, 2024 8:15 am CDTEdge Clear Client Services - client-services@edgeclear.com added by Joshua Test - joshua@mercury.one as a CC'd Recipient Ip: 110.224.100.244
June 20, 2024 11:27 am CDTEdge Clear Client Services - client-services@edgeclear.com added by Edge Clear - client-services@edgeclear.com as a CC'd Recipient Ip: 108.220.7.113
June 26, 2024 8:39 am CDTEdge Clear Client Services - client-services@edgeclear.com added by Edge Clear - client-services@edgeclear.com as a CC'd Recipient Ip: 108.220.7.113
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