GENERAL KFS FOR SECURITIES AND FIDUCIARY ACCOUNTS
SUMMARIZED GENERAL KEY FACTS’ STATEMENT SECURITIES AND FIDUCIARY ACCOUNTS
GENERAL ACCOUNTS’ INFORMATION
Account Maintenance Fee 0.1% monthly applied on weighted average value of assets
Minimum Investment USD 50,000.00
Check Deposit Fee USD 5 or equivalent (additional bank charges may apply)
Check Withdrawal Fee USD 5 or Equivalent (additional bank charges may apply)
Local Wire Transfer (Outward) USD 50 or equivalent (additional bank charges may apply) Fee
International Wire Transfer USD 80 or equivalent (additional bank charges may apply) (Outward) Fee
Statement of Account Fee Free
GENERAL ACCOUNTS’ INFORMATION
BONDS
Commissions Up to 0.2% of investment value Min. commission of 80 EUR
Min Trading Size Up to 200K of instrument’s currency
BONDS CFDs
Spread on Bond CFDs Up to 0.08 minimum spread
Min. Trading Size 50 CFDs
STOCKS, ETFs, AND CORRESPONDING CFDs
Commissions Up to 0.8% of investment with Min. commission by market
Min. Trading Size Up to 20K of instrument’s currency
ETCs
Commissions 0.14% of investment Min. commission of 16 Eur or 14 GBP
INDEX CFDs
Spreads Up to 84 minimum spread
SPOT FOREX AND COMMODITIES
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GENERAL KFS FOR SECURITIES AND FIDUCIARY ACCOUNTS
Spreads Up to 52 minimum spread
COMMODITY CFDs
Spreads Up to 14 minimum spread
Min. Trade size Depends on underlying
FOREX CFDs
Spreads Up to 0.04 min spread
Min. Trade size Up to 5,000
OPTION CFDs
Daily Holding Fee 2.2
Contract Size Up to 1 index
OTHER FEES AND COMMISSIONS
Custody Fee for ETFs/ETCs or 0.24% p.a. with a monthly minimum of EUR 10.00. bonds
Carrying cost for Overnight Carrying Cost = Margin requirement * Holding time * (Relevant positions in Expiring CFDs Interbank rate + Markup) / (365 or 360 days)
MARGIN REQUIREMENTS
Position Initial Margin Maintenance Margin
Currencies and Precious Metals 5% of Underlying Value 3.75% of Underlying Value
Raw Material and Other Goods 10% of Underlying Value 7.5% of Underlying Value
Futures Except for 1 & 2 above Max between Correspondent and Exchange Requirements
Short Options Except for 1 & 2 Max between Correspondent and Exchange Requirements or above Liquid Underlying Asset for Short Call Options
Equity Positions 50% of Assets Value 25% of Assets Value
Fixed Income Positions 50% of Assets Value 25% of Assets Value (Investment Grade Only*)
GENERAL FEES AND COMMISSIONS ON DISCRETIONARY PORTFOLIOS
Management Fees 1.5% p.a. of the weighted average Asset Value
Maintenance Fee Waived
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GENERAL KFS FOR SECURITIES AND FIDUCIARY ACCOUNTS
Success Fee Depends on portfolio
TRADING INHERENT RISK
FINANCIAL MARKETS RISKS - The Client will be exposed to the risks of trading in the Financial Markets, securities and other financial instruments and products. More Capital shall not be responsible or liable regarding this matter. These risks include but are not limited to price fluctuation of stocks held by the Client, fluctuations in the prices of units in funds held by the Client, fluctuation in price of commodities held by the Client, interest rate risk and credit risk impacting the value of fixed income positions held by the Client.
DERIVATIVES RISKS - Trading in Derivatives entails high risks. Positions on Derivatives could entail high and rapid losses due to the leverage associated therewith. Certain positions on Derivatives, including but not limited to selling call options may expose the Client to unlimited losses.
LEVERAGED POSITIONS RISKS - If the markets move against a Client’s leveraged position and regardless of the amounts, the Client may be called upon by More Capital to deposit additional margin funds. If the Client does not provide the required funds within the time frame required by More Capital, his position may be liquidated at a loss, at More Capitals’ sole discretion, and the Client will be liable for any resulting deficit in his account. Furthermore, in the event of severe market disruption and/or price volatilities which may result or may have resulted in the current market values of the futures contracts which is subject matter of any outstanding contract moving to an unusual level, More Capital reserves the right, at its sole discretion, to close and liquidate the contract where significant loss has occurred or is expected by More Capital without reverting to the Client.
FEES AND COMMISSIONS ON PRIVATE EQUITY AND VENTURE CAPITAL INVESTMENTS
Execution Fee 5% of deal value
Carried Interest 20% Carried Interest on Returns
Maintenance Fee Waived
PEVC INHERENT RISK
Private Equity and Venture Capital positions entail additional risks compared to publicly traded instruments as they are illiquid by nature and may not be liquidated by the Client at will. As such, investments in Private Equity and Venture Capital deals may entail relatively long holding periods and may generate high losses when liquidated.
TAXES
Taxes might apply on transaction execution or returns of any kind. All such taxes and other taxes that may arise shall be charged to the Client and More Capital shall not be liable in any way in this respect.
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GENERAL KFS FOR SECURITIES AND FIDUCIARY ACCOUNTS
DETAILED GENERAL KEY FACTS’ STATEMENT SECURITIES AND FIDUCIARY ACCOUNTS
Table of Contents I. TYPE OF ACCOUNTS ...... - 5 - II. FEES, COMMISSIONS, MARGIN REQUIREMENTS...... - 5 - 1. NON-DISCRETIONARY MANDATE FEES, COMMISSIONS, AND MARGIN REQUIREMENTS . - 5 - 1.1. FIDUCIARY AND/OR SECURITIES ACCOUNT(S) MAINTENANCE FEE ...... - 5 - 1.2. FEES AND COMMISSIONS ON TRADED INSTRUMENTS’ TRANSACTIONS (BUY AND SELL) ...... - 5 - 1.2.1. COMMISSIONS ON BONDS’ TRADING ...... - 5 - 1.2.2. SPREAD ON BOND CFDs’ TRADING ...... - 5 - 1.2.3. COMMISSIONS ON STOCKS’, ETFs’, and CORRESPONDING CFDs’ TRADING ...... - 5 - 1.2.4. COMMISSIONS ON EXCHANGE TRADED COMMODITIES’ (ETCs) TRADING ...... - 7 - 1.2.5. SPREADS ON INDEX CFDs’ TRADING ...... - 7 - 1.2.6. SPREAD ON SPOT FOREX AND COMMODITIES ...... - 9 - 1.2.7. SPREAD ON COMMODITY CFDs’ TRADING ...... - 10 - 1.2.8. SPREAD ON FOREX CFDs’ TRADING ...... - 11 - 1.2.9. DAILY HOLDING FEES ON OPTION CFDs TRADING ...... - 2 - 1.2.10. FEES AND COMMISSIONS ON TRADING FUTURES AND OPTIONS ...... - 12 - 1.2.11. CUSTODY AND OTHER FEES...... - 12 - 1.3. FEES AND COMMISSIONS ON PRIVATE EQUITY AND VENTURE CAPITAL TRANSACTIONS....- 12 - 1.4. FEES AND COMMISSIONS ON SPECIAL PRODUCTS ...... - 12 - 1.5. MARGIN REQUIREMENTS ...... - 12 - 2. DISCRETIONARY MANDATE FEES AND COMMISSIONS ...... - 13 - 2.1. MANAGEMENT FEES ...... - 13 - 2.2. SUCCESS FEES ...... - 13 - III. MINIMUM INVESTMENT AND NET INVESTABLE ASSETS ...... - 13 - IV. CORRESPONDENTS AND SERVICE PROVIDERS ...... - 14 - V. RISK DISCLAIMER...... - 14 - 1. GENERAL RISKS ...... - 14 - 2. RISK ASSESSMENT ...... - 14 - 3. FINANCIAL MARKETS RISKS ...... - 3 - 4. DERIVATIVES RISKS ...... - 3 - 5. LEVERAGED POSITIONS RISKS ...... - 3 - 6. PEVC RISKS ...... - 15 - 7. REGULATORY RISKS ...... - 15 -
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GENERAL KFS FOR SECURITIES AND FIDUCIARY ACCOUNTS
I. TYPE OF ACCOUNTS The present document represents the Key Facts’ Statement (“KFS”) for both Securities Accounts managed by More Capital under the provisions of Lebanese Law No. 234 dated June 10th, 2000 (regulating the financial intermediation profession) and Fiduciary Accounts managed by More Capital under the provisions of Law No. 520 dated June 6th, 1996 (regulating the development of the financial market and fiduciary contracts). Both accounts are recorded off More Capital’s balance sheet and corresponding amounts are considered assets under More Capital’s management. II. FEES, COMMISSIONS, MARGIN REQUIREMENTS 1. NON-DISCRETIONARY MANDATE FEES, COMMISSIONS, AND MARGIN REQUIREMENTS 1.1. FIDUCIARY AND/OR SECURITIES ACCOUNT(S) MAINTENANCE FEE A monthly Maintenance Fee of 0.1% shall be applied on the weighted average Asset Value of the Account(s) on which such fees are applicable. The Maintenance Fee shall be withdrawn from the Account(s) at the end of each month. Transactions Commissions of up to the nominal value of the Maintenance Fee shall be paid back on a monthly basis. 1.2. FEES AND COMMISSIONS ON TRADED INSTRUMENTS’ TRANSACTIONS (BUY AND SELL) 1.2.1. COMMISSIONS ON BONDS’ TRADING
Instrument Commission Minimum Commission
Lebanese Bonds TBD TBD
EU Government Bonds 0.20% EUR 80
US Government Bonds 0.20% EUR 80
EU and US Corporate Bonds 0.20% EUR 80
Emerging Market Bonds 0.20% EUR 80
Bonds have different minimum trading sizes which can be as high as 50k, 100k or 200k in the relevant currency. However, there are bonds which trade in lower sizes, which may also be available (a minimum limit of 10k in € or $). 1.2.2. SPREAD ON BOND CFDs’ TRADING
Instrument Symbol Minimum Spread Min. Trade Size
German Government 10 yr Bund BUND 0.05 50 CFDs
German Government 5 yr Bund BOBL 0.05 50 CFDs
German Government 2 yr Schatz SCHATZ 0.02 50 CFDs
French Government 10 yr OAT 10YOAT 0.08 50 CFDs
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Retail Clients often incur losses by trading in CFDs. 1.2.3. COMMISSIONS ON STOCKS’, ETFs’, and CORRESPONDING CFDs’ TRADING
Market Commission Min. Commission
Beirut Stock Exchange TBD TBD
NASDAQ 0.03 USD per Share USD 10
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GENERAL KFS FOR SECURITIES AND FIDUCIARY ACCOUNTS
New York Stock Exchange 0.03 USD per Share USD 10
NYSE MKT 0.03 USD per Share USD 10
Toronto Stock Exchange 0.06 CAD per Share CAD 25
Athens Exchange 0.6% EUR 24
BME Spanish Exchange 0.16% EUR 20
Budapest Stock Exchange 0.8% HUF 10,000
Deutsche Börse (XETRA) 0.14% EUR 16
Irish Stock Exchange 0.16% EUR 20
Johannesburg Stock Exchange 0.40% ZAR 160
London Stock Exchange 0.14% GBP 14
London Stock Exchange (IOB) 0.16% USD 30
NASDAQ OMX Copenhagen 0.14% DKK 100
NASDAQ OMX Helsinki 0.14% EUR 20
NASDAQ OMX Stockholm 0.14% SEK 100
NYSE Euronext Amsterdam (AEX) 0.16% EUR 20
NYSE Euronext Brussels 0.16% EUR 20
NYSE Euronext Lisbon 0.16% EUR 20
NYSE Euronext Paris 0.14% EUR 16
Oslo Stock Exchange 0.16% NOK 100
Prague Stock Exchange 0.5% CZK 700
SIX Swiss Exchange 0.16% CHF 30
Vienna Stock Exchange 0.16% EUR 20
Warsaw Stock Exchange 0.50% PLN 130
Australian Securities Exchange 0.14% AUD 16
Hong Kong Exchange 0.44% HKD 160
Hong Kong Stock Connect (Shanghai/Shenzhen product) 0.20% CNH 60
Bursa Malaysia 0.32% MYR 100
Singapore Exchange 0.32% SGD 40
Tokyo Stock Exchange 0.24% JPY 2000
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GENERAL KFS FOR SECURITIES AND FIDUCIARY ACCOUNTS
The minimum trading size for Equity and ETFs is USD 20 K or the equivalent in other currencies. Overnight financing of stock and ETF CFD positions As Single Stock CFD is a margined product, the traded value is financed through an overnight credit/debit charge. CFD positions opened and closed within the same trading day, they shall not be subject to overnight financing. When a Single Stock CFD position is held (or an ETF/ETC CFD position) overnight, i.e. have an open CFD position at close of market on the Stock Exchange, such CFD position will consequently be subject to the following credit or debit • When a long CFD position is held, it shall be subject to a debit calculated on the basis of the relevant Inter-Bank Offer Rate for the currency in which the underlying share is traded (e.g. - LIBOR) plus a mark-up (times Actual Days/360 or Actual Days/365). • When a short CFD position is held, it will receive a credit calculated on the basis of the relevant Inter- Bank Bid Rate for the currency in which the underlying share is traded (e.g. LIBID) minus a mark- down (times Actual Days/360 or Actual Days/365). The credit/debit is calculated on the total nominal value of the underlying Stocks at the time the CFD contract is established (whether long or short). Note: • A floor will apply to the relevant Inter-Bank Bid/Offer Rate, i.e. if the Inter-Bank Rate is negative it will be excluded from the financing calculation. • If the calculated financing rate on a short position (Inter-Bank Bid Rate – mark-down) is negative, the financing credit will become a financing charge. Borrowing costs on stock CFD short overnight positions 'Trading Conditions' > 'CFD Stock/Index Instrument List' on the platform. When selling a CFD, the borrowing rate will be fixed when the position is opened and will be charged on a monthly basis. For certain corporate action events, the borrowing rate on the short position may be reset to the current rate in the market, upon the execution of the corporate action. If a CFD position is opened and closed within the same trading day, it shall not be subject to borrowing costs. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Retail Clients often incur losses by trading in CFDs. 1.2.4. COMMISSIONS ON EXCHANGE TRADED COMMODITIES’ (ETCs) TRADING
Instrument Commission Minimum Commission
Physical Gold ETC (XETRA) 0.14% EUR 16
Physical Silver ETC (XETRA) 0.14% EUR 16
WTI Crude Oil ETC (XLON) 0.14% GBP 14
Corn ETC (XLON) 0.14% GBP 14
1.2.5. SPREADS ON INDEX CFDs’ TRADING
Index Tracker Minimum Spread Contract Size Currency
Australia 200 2.80 1 Index AUD
Honk Kong 22 1 Index HKD
Japan 225 20 1 Index JPY
US Tech 100 NAS 1.4 1 Index USD
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GENERAL KFS FOR SECURITIES AND FIDUCIARY ACCOUNTS
US 30 Wall Street 2.8 1 Index USD
US 500 1 1 Index USD
Belgium 20 24 1 Index EUR
Denmark 20 2.5 1 Index DKK
EU Stocks 50 3.5 1 Index EUR
France 40 3 1 Index EUR
Germany 30 2 1 Index EUR
Germany Mid-Cap 50 20 1 Index EUR
Germany Tech 30 8 1 Index EUR
Netherlands 25 0.4 1 Index EUR
Norway 25 0.4 1 Index NOK
Portugal 20 40 1 Index EUR
South Africa 40 16 1 Index ZAR
Spain 35 13 1 Index EUR
Sweden 30 1.1 1 Index SEK
Switzerland 20 5 1 Index CHF
UK 100 1.8 1 Index GBP
UK Mid 250 84 1 Index GBP
Spreads: the spreads indicated are minimum spreads and depend on the spread of the underlying futures contract. If the underlying future trades at a spread that is larger than the minimum spread, the Index spread will be increased with the additional spread from the future. Example: Germany 30 normal spread is 2 index points if the future spread is 0.5 indicating normal conditions. If the liquidity is low in the future and the spread is 1, the Index spread will be 2 + (1 - 0.5) = 2.5. Overnight financing of Index tracker CFD positions As Index CFDs are margined products, the traded value is finances through an overnight credit/debit charge. If a CFD position is opened and closed within the same trading day, it shall not be subject to overnight financing. When an Index CFD position is held overnight, such CFD position will consequently be subject to the following credit or debit: • Holding Long CFD Stock Index Tracker positions after 17:00 EST (New York time) incurs a financing charge which is calculated as follows: • Index Value * Number of CFDs * (relevant Inter-Bank Offered Rate + 2.50%) * (Actual Number of Days/360 or Actual Number of Days/365) • Holding Short positions after 17:00 EST (New York time) creates a financing credit which is calculated as follows: • Index Value * Number of CFDs * (relevant Inter-Bank Bid Rate – 3.00%) * (Actual Number of Days/360 or Actual Number of Days/365) Note: - 8 -
GENERAL KFS FOR SECURITIES AND FIDUCIARY ACCOUNTS
A) A floor will apply to the relevant Inter-Bank Bid/Offer Rate, i.e. if the Inter-Bank Rate is negative, then it will be excluded from the financing calculation. B) If the calculated financing rate on a short position (Inter-Bank Bid Rate – mark-down) is negative, then the financing credit will become a financing charge. Fixed Spreads on CFD Index Trackers The Bid/Ask spread will be equal to the minimum target spread in approx. 99% of the quote updates, during the opening hours of the underlying cash market. This gives clients an improved trading experience and a high degree of certainty with regards to trading costs associated with entering and closing CFD Index Tracker positions. Please note that Fixed spreads are available for selected CFD indices and only apply under normal market conditions up to specific trade amounts. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Retail Clients often incur losses by trading in CFDs. 1.2.6. SPREAD ON SPOT FOREX AND COMMODITIES
Instrument Minimum Spread
EUR USD 1.4
GBP USD 1.6
USD JPY 1.4
EUR JPY 2
AUD USD 1
XAU USD 24
XAU EUR 26
XAG USD 52
XAU XAG 42
FX Rollover Procedure The FX Spot market is used for immediate currency trades. The term “Spot” refers to the standard settlement convention of two business days after the trade date (known as T+2)1 . For example, a EURUSD trade executed on a Monday will settle on a Wednesday (if there is not a public holiday in either currency on Tuesday or Wednesday, in which case the trade will be settled on the next available business day). The settlement period refers to the amount of time that is allotted to both parties to satisfy the trade’s obligations. FX Spot trades will not settle. Instead, open positions held at the end of a trading day (17.00 Eastern Standard Time) are rolled forward to the next available business day2. The rollover is made up of two components; the Tom/Next swap points (Forward Price) and the financing of unrealised profit/loss (Financing Interest). a) Tom/Next swap points (Forward Price) The swap points used are calculated using market swap prices from Tier-1 banks, plus/minus a mark-up corresponding to +/- 0.35%3 of the Tom/Next interest swap rates. The final rate is used to adjust the opening price of the position4. b) Financing of unrealised profit/loss (Financing Interest) Any unrealised profit/loss on positions that are rolled from one day to the next are subject to an interest credit or debit. The unrealised profit/loss is calculated as the difference between the opening price of a position - 9 -
GENERAL KFS FOR SECURITIES AND FIDUCIARY ACCOUNTS
(possibly corrected for previous Tom/Next rollovers) and the Spot price at the time that the rollover is performed. The rate is calculated based on the daily market overnight interest rates plus/minus a mark-up corresponding to +/- 2.00%. The final rate is used to adjust the opening price of the position4.
1 The standard settlement convention of T+2 is applicable for the majority of currency pairs; however there are exceptions to this rule e.g. USDCAD, which has a settlement convention of one day after the trade date (T+1). 2 The global market convention is that the value date rolls forward at 17.00 Eastern Standard Time, however there are exceptions to this rule e.g. NZD, which rolls forward at 07.00 New Zealand Daylight Time. 3 An additional +/- 0.30% mark-up is applied to Mexican Peso (MXN), Russian Ruble (RUB), Turkish Lira (TRY) and South African Rand (ZAR) currency crosses. 4 Applicable to the default rollover methodology. Spot Forex comes with a high risk of losing money rapidly due to leverage. 1.2.7. SPREAD ON COMMODITY CFDs’ TRADING
Instrument Minimum Spread Min. Trade Size Expiry Date
Gold 1.1 1 FND -2
Silver 6 25 FND -2
Platinum 2.8 1 FND -2
Palladium 2.9 1 FND -2
US Copper 1 500 FND -2
US Crude 0.1 25 LTD -2
UK Crude 0.1 25 LTD
Heating Oil 0.6 500 LTD -2
Gasoline US 0.4 500 LTD -2
Gas Oil 2 1 LTD -2
US Natural Gas 0.028 200 LTD -2
CO2 Emissions 0.12 25 LTD -2
Corn 2 200 FND -2
Wheat 4 200 FND -2
Soybeans 3 200 FND -2
NY Sugar No. 11 0.1 5,000 LTD -2
NY Coffee 0.8 1,000 FND -2
NY Cocoa 14 1 FND -2
Live Cattle 0.3 2,000 LTD -2
FND = First Notice - 10 -
GENERAL KFS FOR SECURITIES AND FIDUCIARY ACCOUNTS
LTD = Last Trading CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Retail Clients often incur losses by trading in CFDs. 1.2.8. SPREAD ON FOREX CFDs’ TRADING
Instrument Minimum Spread Min. Trade Size Expiry Date Expiry Time
USD Index 0.018 100 LTD -2 11:00 EST
EUR/USD 0.00038 5,000 FND -3 10:00 CST
EUR/JPY 0.04 5,000 FND -3 10:00 CST
EUR/CHF 0.0004 5,000 FND -3 10:00 CST
EUR/GBP 0.0004 5,000 FND -3 10:00 CST
GBP/USD 0.0005 2,000 FND -3 10:00 CST
AUD/USD 0.0004 5,000 FND -3 10:00 CST
FND = First Notice LTD = Last Trading CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Retail Clients often incur losses by trading in CFDs. 1.2.9. DAILY HOLDING FEES ON OPTION CFDs TRADING
Option Daily Holding Description Contract Size Currency Root Fee
AEX AEX Index 1 Index 2.2 EUR
Dow Jones Industrial Average DJX 1/100 Index 2.2 USD Index
ESX FTSE 100 Index 1 Index 2.2 GBP
HIS Hang Seng Index 1 Index 2.2 HKD
MIBO FTSE MIB Index 1 Index 2.2 EUR
NDX Nasdaq 100 Index 1 Index 2.2 USD
NKY Nikkei 225 (Osaka) 1 Index 2.2 JPY
OBX OBX Index 1 Index 2.2 NOK
ODAX DAX Index 1 Index 2.2 EUR
OESX Euro Stoxx 50 Index 1 Index 2.2 EUR
OMXSWE30 OMX Stockholm 30 Index 1 Index 2.2 SEK
OSMI SMI Index 1 Index 2.2 CHF
PXA CAC 40 Index 1 Index 2.2 EUR - 11 -
GENERAL KFS FOR SECURITIES AND FIDUCIARY ACCOUNTS
SPX S&P 500 Index 1 Index 2.2 USD
XJO S&P ASX200 Index 1 Index 2.2 AUD
Holding fees on long option positions (all maturities) will be applied when positions are held overnight. The daily holding fee is 1.10 per million (notional value) in the contract’s trading currency. Holding fee per day = nominal value / 1,000,000 * 1.10. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Retail Clients often incur losses by trading in CFDs. 1.2.10. FEES AND COMMISSIONS ON TRADING FUTURES AND OPTIONS Currently we are not offering trading services on Futures and Options. If and when in the future we decide to offer such services, corresponding fees and commissions shall be communicated. 1.2.11. CUSTODY AND OTHER FEES For non-Lebanese Stock, ETFs/ETCs or bond positions, a Custody Fee of 0.24% p.a. shall apply with a monthly minimum fee of EUR 10.00. Custody fees for Lebanese instruments shall be determined. For positions on traded instruments not listed above, we might be able to conduct transactions through our network of correspondents, however we shall apply different fees in connection thereof as shall be communicated on a case by case basis. Furthermore, we might be able to transact in mutual funds also with fees to be communicated to the client on a case by case basis. Carrying costs on CFDs on futures Overnight positions in Expiring CFDs are subject to a carrying cost. The carrying cost is calculated on the basis of the daily margin requirement and applied when a position is held overnight. The funding rate used for calculating the carrying cost is based on the relevant Interbank-rate + markup (150 bps). Carrying Cost = Margin requirement * Holding time * (Relevant Interbank rate + Markup) / (365 or 360 days) 1.3. FEES AND COMMISSIONS ON PRIVATE EQUITY AND VENTURE CAPITAL TRANSACTIONS For Private Equity and Venture Capital (PEVC) deals executed by More Capital on behalf of its Clients in its capacity as Fiduciary or Nominee, an Execution Fee of 5% shall apply (on buy only) in addition to a 20% Carried Interest to be applied on profits generated upon Exit (sale of position) or any interim income from the corresponding investment i.e. Dividend payments, Interest payments or others. In case custody fees corresponding to PEVC positions were charged on More Capital for any reason whatsoever, such charges shall be covered by Clients without any markup. Account(s) Maintenance Fees shall be waived for PEVC Investments. 1.4. FEES AND COMMISSIONS ON SPECIAL PRODUCTS It is understood that More Capital may offer Special Products to its Clients from time to time including Special Money Market placements and Structured Products. Fees and Commissions on such products shall be specified within each product’s Key Facts Statement (KFS) and shall vary between different products. 1.5. MARGIN REQUIREMENTS The following Margin Requirements represent the minimum accepted by More Capital under any circumstance. However, More Capital might increase these requirements without notifying Clients in case such increase was required by its correspondent(s), regulators, or other local or foreign relevant authorities including CMA, BDL, foreign regulatory bodies, exchanges, etc. Clients shall deposit an Initial Margin when opening a leveraged financial instruments position or derivatives’ position be it listed, unlisted, on a regulated, or unregulated financial market, including those held through electronic platforms. Positions shall be revalued at least once daily. Such margins shall be rebuilt when their value drops to the Maintenance Margin level, which shall be no less than 75% of the Initial Margin for positions on derivatives and 50% of the initial margin for positions on stocks and fixed income instruments. Non- compliance with the above within deadlines specified by More Capital shall lead to the immediate liquidation of corresponding position(s). Below is a table summarizing More Capital’s margin requirements: - 12 -
GENERAL KFS FOR SECURITIES AND FIDUCIARY ACCOUNTS
# Position Initial Margin Maintenance Margin
1 Currencies and Precious Metals 5% of Underlying Value 3.75% of Underlying Value
2 Raw Material and Other Goods 10% of Underlying Value 7.5% of Underlying Value
3 Futures Except for 1 & 2 above Max between Correspondent and Exchange Requirements
Short Options Except for 1 & 2 Max between Correspondent and Exchange Requirements or 4 above Liquid Underlying Asset for Short Call Options
5 Equity Positions 50% of Assets Value 25% of Assets Value
Fixed Income Positions 6 50% of Assets Value 25% of Assets Value (Investment Grade Only*)
*) In case a Fixed Income Instrument is downgraded below investment grade by any of the 3 recognized rating agencies (Moody’s, Standard & Poors, and Fitch) a margin of 100% shall apply and in case of non- compliance such position shall be liquidated immediately. 2. DISCRETIONARY MANDATE FEES AND COMMISSIONS Assets managed by More Capital under Discretionary Mandates shall be subject to Management Fees and Success Fees paid annually at year end. In addition to Management and Success Fees, Transactions’ Commissions described under section 1.2 above shall apply to Transactions executed under the Discretionary Mandate and shall be reported to Clients within corresponding performance reports. Account Maintenance Fees shall be waived for Assets under Discretionary Management. The Discretionary Management Fees structure shall be as follows: 2.1. MANAGEMENT FEES A Management Fee of 1.5% p.a. shall be applied on the weighted average Asset Value of the Account(s) under discretionary management. 2.2. SUCCESS FEES Success fees shall be applied as a percentage of any positive Performance on Assets under Discretionary Mandate calculated as the Profit and Loss divided by the Yearly Weighted Average Value of such Assets. Success Fees shall vary and be applied only when the Performance exceeds the performance of pre-defined benchmarks. Benchmarks and Success Fees rates shall be defined depending on the risk level associated to the Discretionary Mandate to be selected, and such Benchmarks and Rates shall be notified to Clients within Key Facts’ Statement included in any Discretionary Mandate Agreement. 3. FEES ON DEPOSITS, WITHDRAWALS, AND STATEMENTS
Transaction Fee
Check Deposit USD 5 or equivalent
Check Withdrawal USD 5 or Equivalent
Local Wire Transfer (Outward) USD 50 or equivalent
International Wire Transfer (Outward) USD 80 or equivalent
Statement of Account Free
In case bank charges exceed the fees shown above, Clients shall be charged the additional amount. III. MINIMUM INVESTMENT AND NET INVESTABLE ASSETS The minimum initial investment amount required to open a Securities and/or Fiduciary Account(s) is USD 50,000.00 (Fifty Thousand U.S. Dollars Only) or the equivalent in other currencies. Furthermore, the Client - 13 -
GENERAL KFS FOR SECURITIES AND FIDUCIARY ACCOUNTS
shall have minimum Net Investable Assets of USD 500,000.00 (Five Hundred Thousand U.S. Dollars Only) or the equivalent in other currencies. IV. CORRESPONDENTS AND SERVICE PROVIDERS In order to provide our services, including the execution of transactions and safeguarding the Clients’ Money and Assets, we shall be working with the following correspondents and service providers: - Banque Du Liban (“BDL”), the central bank of Lebanon. - Lebanon & Gulf Bank SAL (“LGB”), a Lebanese commercial bank. - Saradar Bank SAL (“Saradar”), a Lebanese commercial bank. - Midclear SAL (“Midclear”), a custodian and clearing center of financial instruments for Lebanon and the Middle East. - Saxo Bank A/S (“Saxo Bank”), a Danish bank specialized in securities trading and custody. It is understood that Clients’ Money and Assets can be held with all of the above or any of their subsidiaries, affiliates or service providers. V. RISK DISCLAIMER 1. GENERAL RISKS While performing transactions on behalf of the Client, More Capital may be obliged to use different means of communication including the internet network as well as electronic trading platforms. The Client may be exposed to operational risks emanating from the use of such means. More Capital shall not be held responsible or liable in this respect including due to the disruption in the operation of any mean of communication or electronic trading system. The Client shall be exposed to the credit risk of More Capital’s correspondents with whom Clients’ Money and Assets are held. In the event of default of such correspondents More Capital shall not be liable towards its Clients with any sum lost in connection thereof. However, the Client shall not be exposed to the credit risk of More Capital since Securities and Fiduciary Accounts are recorded by More Capital off-balance sheet and the company’s creditors do not have recourse on such Accounts. Clients shall be exposed to FX risks when they choose to trade in Forex related instruments or purchase currencies other than their base currency. Clients are also exposed to FX risk when they invest in any financial instrument denominated in a currency other than their base currency. 2. RISK ASSESSMENT Prior to engaging in any transaction or investment, the Client should carefully make his own assessment whether these transactions or investments are suitable for him in light of his experience, objectives, tolerance for risks, investment horizon, liquidity and cash flow needs, financial resources and commitments. Moreover, More Capital may not give the client advice regarding what to invest in for non-discretionary accounts. 3. FINANCIAL MARKETS RISKS The Client shall be exposed to the risks of trading in the Financial Markets, securities and other financial instruments and products. More Capital shall not be responsible or liable with regard to this matter. These risks include but are not limited to price fluctuation of stocks held by the Client, fluctuations in the prices of units in funds held by the Client, fluctuation in price of commodities held by the Client, interest rate risk and credit risk impacting the value of fixed income positions held by the Client. 4. DERIVATIVES RISKS Trading in Derivatives entails high risks. Positions on Derivatives could entail high and rapid losses due to the leverage associated therewith. Certain positions on Derivatives, including but not limited to selling call options may expose the Client to unlimited losses. 5. LEVERAGED POSITIONS RISKS If the markets move against a Client’s leveraged position and regardless of the amounts, the Client may be called upon by More Capital to deposit additional margin funds, on short notice, in order to maintain his position. If the Client does not provide the required funds within the time frame required by More Capital, his position may be liquidated at a loss, at More Capitals’ sole discretion, and the Client will be liable for any - 14 -
GENERAL KFS FOR SECURITIES AND FIDUCIARY ACCOUNTS resulting deficit in his account. Furthermore, in the event of severe market disruption and/or price volatilities which may result or may have resulted in the current market values of the futures contracts which is subject matter of any outstanding contract moving to an unusual level, More Capital reserves the right, at its sole discretion, to close and liquidate the contract where significant loss has occurred or is expected by More Capital without reverting to the Client. More Capital applies an automated liquidation policy by the system on opened positions when such positions reach the specific percentage determined by More Capital, as may be amended from time to time. The Client shall assume the full responsibility for any loss that may result from any Force Majeure or Gap (i.e. the difference between the open price and the close price of the previous day) or any crash and fluctuations in the prices generating the deficit in his account (namely during the weekends and the holidays). This Disclaimer does not purport to disclose all risks or other significant aspects of entering into transactions or investments; there will be other risks resulting from the specific terms and features attached to each transaction which the Client must also understand prior to dealing with or investing in. The Client shall be aware that in case of liquidation, he is highly likely to end up with a negative balance at the end of the period, and therefore the Client is responsible to cover the deficit that may result from such liquidation. The Client agrees that More Capital shall bear no liability resulting from the negative balance due to liquidation of positions and shall not cover the deficit in any case. 6. PEVC RISKS Private Equity and Venture Capital positions entail additional risks compared to publicly traded instruments as they are illiquid by nature and may not be liquidated by the Client at will. As such, investments in Private Equity and Venture Capital deals may entail relatively long holding periods and may generate high losses when liquidated. 7. REGULATORY RISKS When More Capital (either acting directly or through its correspondent) carries out a transaction or investment on behalf of its Clients, More Capital (either acting directly or through its correspondent) must follow the bylaws, constitution, customs, regulations, rules and uses of the exchanges or markets where the transaction or investment are executed and of any of the clearing houses and of any regulatory body which may have jurisdiction in addition to the terms and conditions of the agreement entered into, between More Capital and its correspondent, and the rules and regulations to which such correspondent is subject to. These rules are binding to the Client and More Capital may, or be required to, comply with any demand or requirement applied by any exchange or other competent authority.
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