Combined Auto-Liquidation Acknowledgment Signature Document

Combined Auto-Liquidation Acknowledgment

The undersigned (“Customer”) has entered into a Customer Agreement with Edge Clear LLC (“Edge Clear”) and one or more of Edge Clear'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.

Edge Clear 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 Rithmic 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:

    • Edge Clear's minimum liquidation trigger of $500 for customers trading all products on Rithmic;
    • Edge Clear’s minimum liquidation trigger of $200 for customer trading Micro products only (Customer must notify broker if only Micro trading is needed) on Rithmic; 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 limit of 80% for Dorman and 90% for PCI and Ironbeam;
    • auto-liquidation is only available on Rithmic and Sierra Chart Teton;
    • in some circumstances where a "special margin template" is being used at PCI, there is a cash-on-hand limit of 90% for Rithmic.

then Customer hereby authorizes Edge Clear 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.

2. Principal Risks of Auto Liquidation

Edge Clear 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 Edge Clear 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.  Edge Clear 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 Edge Clear 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 Edge Clear broker of any discrepancies as soon as possible.

3. Auto Liquidation Fees

In the event that the Customer’s account is auto-liquidated, Edge Clear 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: June 15, 2024

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Signature Certificate
Document name: Combined Auto-Liquidation Acknowledgment
lock iconUnique Document ID: cd6fbd523653471b4e06acc76a02e8944c6c4cdd
Timestamp Audit
October 21, 2022 11:10 am CDTCombined Auto-Liquidation Acknowledgment Uploaded by Edge Clear - IP
November 1, 2022 1:27 pm CDTEdge Clear Client Services - added by Edge Clear - as a CC'd Recipient Ip:
January 12, 2024 12:45 pm CDTEdge Clear Client Services - added by Edge Clear - as a CC'd Recipient Ip:
May 27, 2024 5:33 pm CDTEdge Clear Client Services - added by Edge Clear - as a CC'd Recipient Ip:
May 28, 2024 8:14 am CDTEdge Clear Client Services - added by Joshua Test - as a CC'd Recipient Ip:
May 28, 2024 8:15 am CDTEdge Clear Client Services - added by Joshua Test - as a CC'd Recipient Ip: