Terms & Conditions

Introduction

These Terms & Conditions (the "Terms") set out the agreement between you (the "Client", "you" or "your") and Gainlit Markets Ltd ("Gainlit Markets", the "Company", "we", "us" or "our"), and govern your access to and use of our services. By opening an account or using our services, you agree to be bound by these Terms.

This notice is provided to you because you are considering dealing with Gainlit Markets in Foreign Exchange Contracts, Contracts for Difference, deposit and payment products and other Derivatives Contracts ("Transactions"), either on a margin basis or otherwise.

This notice cannot and does not disclose or explain all of the risks and other significant aspects involved in dealing in these Transactions. It is designed to explain, in general terms, the nature of the risks particular to dealing in these Transactions and to help you take investment decisions on an informed basis.

Prior to applying for an account you should consider carefully whether trading in these Transactions is suitable for you in light of your circumstances and financial situation. Margin FX and CFDs involve different levels of exposure to risk and, in deciding whether to trade in such instruments, you should be aware of the following points.

Nature of the Risks

• Trading in Margin FX and CFDs ("OTC Derivatives") carries a high degree of risk. The "gearing" or "leverage" involved means that a small initial margin payment can potentially lead to large losses in excess of your initial investment. The geared nature of derivatives also means that Margin FX and CFD trading can carry greater risks than conventional share trading, which is generally not geared.
• A relatively small market movement can lead to a proportionately much larger movement in the value of your investment, and this can work against you as well as for you.
• Most OTC derivatives are off-exchange derivatives. This may be considered to involve greater risk than an on-exchange derivative, as there is no exchange market on which to close out an open position — you are only able to open and close your positions with us. Accordingly, you are exposed to the unlikely event that we may not be able to fulfil our obligations to you as a counterparty.
• Foreign markets will involve different risks to domestic markets. The potential for profit or loss from OTC derivatives relating to a foreign market or denominated in a foreign currency will be affected by fluctuations in foreign exchange rates.
• Margin FX and CFDs are contingent-liability transactions which are margined and require you to make a series of payments against the purchase price instead of paying the whole purchase price immediately, and they may only be settled in cash.
• You may sustain a total loss of the margin that you deposit with us to establish or maintain a position. If the market moves against you, you may be called upon to pay substantial additional margin at short notice. If you fail to do so within the required time, your position may be liquidated at a loss and you will be liable for any resulting deficit.
• You will be deemed to have received a notice requiring the payment of such funds, even if you are not at home or do not receive the messages we leave for you, if the notices are delivered to your nominated contact points.
• Under certain trading conditions it may be difficult or impossible to liquidate a position. This may occur, for example, at times of rapid price movement if the price rises or falls in one trading session to such an extent that trading in the underlying market is suspended or restricted.
• Placing a Stop Order will not necessarily limit your losses to the intended amounts, because market conditions may make it impossible to execute such an order if the underlying market moves straight through the stipulated price.
• We will not provide you with personal financial product advice relating to Margin FX and CFDs, and we will not make Margin FX and CFD recommendations of any kind. The only advice we will give you will be as to how Margin FX and CFDs work.
• There is no clearing house for Margin FX and CFDs, and the performance of a Margin FX and CFD by the Company is not "guaranteed" by an exchange or clearing house.
• Our insolvency or default may lead to your positions being liquidated or closed out without your consent. Keeping your funds in a segregated client account does not offer or guarantee absolute protection of your funds in the event of our insolvency or default where there is a deficit in the segregated client account.
• The obligations to you under the Client Agreement and the Margin FX and CFDs are unsecured obligations, meaning that you are an unsecured creditor of ours.

Trading Volume Requirement for Withdrawals

To be eligible for withdrawals, clients must complete the minimum required trading volume based on their deposited amount.

• The required trading volume can be completed using any trading symbols available on the platform.
• Trading volume requirements are calculated based on closed trades only.
• Clients must fulfil the required lot size before submitting a withdrawal request.
• If the required trading volume is not completed, withdrawal requests may be delayed, rejected or processed after applicable adjustments.
• Gainlit Markets reserves the right to reject or cancel eligibility in cases of abusive trading practices, including but not limited to arbitrage, bonus abuse or manipulation of trading activity.
• These terms and conditions are subject to change at the sole discretion of Gainlit Markets without prior notice.
• By using the services of Gainlit Markets, clients agree to all applicable trading and withdrawal policies.

Scalping & High-Frequency Trading (HFT)

Gainlit Markets defines trades with a duration of less than 180 seconds as scalping. Engaging in High-Frequency Trading (HFT) using high-speed, ultra-execution Virtual Private Server (VPS) based algorithmic trading constitutes an HFT trading practice. Such practices are deemed abusive trading practices.

In the event that any account exhibits more than 30% scalping or HFT trades, Gainlit Markets reserves the right to reverse or cancel such trades and withhold profit withdrawals for such accounts.

Abusive Trading Practices

Manipulative Trading

Any attempt to manipulate market prices, including but not limited to spoofing, layering or any other deceptive trading practices, will be considered abusive. Gainlit Markets reserves the right to reverse or cancel trades suspected of manipulative trading and may take further disciplinary action as deemed necessary.

Insider Trading

Engaging in insider trading, which involves the use of material non-public information to gain an unfair advantage in trading, is strictly prohibited. Any accounts found to be involved in insider trading will be subject to immediate closure and may face legal action.

Front Running

Front running — placing orders based on advanced knowledge of pending orders — is considered abusive trading. Accounts found to be engaged in front running will be subject to disciplinary action, including the reversal or cancellation of trades and possible account closure.

Wash Trading

Participating in wash trading, where a trader simultaneously sells and buys the same financial instruments to create artificial trading volume or manipulate prices, is prohibited and may lead to trade reversal, account suspension or closure.

Churning

Churning refers to excessive trading conducted for the purpose of generating commissions without regard for the client's investment objectives. We prohibit churning and reserve the right to investigate and take appropriate action.

Price Manipulation

Any attempt to artificially manipulate the price of financial instruments, including spreading false rumours or engaging in coordinated trading activities to influence prices, will be considered abusive trading.

Misuse of Bonus Credit

Bonus credit issued to a client account, including but not limited to deposit bonuses, promotional credits and loyalty rewards, constitutes non-withdrawable trading credit. Bonus credit is provided solely to supplement trading activity conducted on the client's deposited capital and may not be used as standalone trading capital.

The following activity, without limitation, shall constitute misuse of bonus credit and is a prohibited trading activity:

• continuing to trade primarily or exclusively against bonus credit after the client has withdrawn all or substantially all of their deposited capital;
• opening positions whose required margin is satisfied wholly or predominantly by bonus credit rather than by deposited capital;
• any trading strategy or pattern of activity which, in the reasonable assessment of the Company, is designed to extract value from bonus credit beyond its intended purpose as a supplement to deposited capital.

Where the Company identifies misuse of bonus credit, the Company reserves the right, at its sole discretion, to: (i) revoke any and all bonus credit on the client's account; (ii) forfeit profits attributable to the disallowed activity; (iii) suspend or terminate the client's account; and (iv) take any further action available under this agreement.

Toxic Trading Percentage Calculation

To assess abusive or toxic trading activity on an account, the Company applies the following calculation:

Important caveat — this figure can exceed 100%. A single trade can be counted in more than one category (for example, a trade that is both a scalp and part of a burst is counted twice). It is a "sum of flag incidences" ratio, not a "fraction of distinct toxic trades".

Reversal Trades

A trade is flagged as a reversal when all three of the following hold, comparing it to the immediately preceding trade (after sorting by Open Time):

• Same symbol as the previous trade.
• Opposite direction — for example, previous buy to current sell, or previous sell to current buy.
• Opens within 20 seconds of the previous trade's close.

Burst Trades

Consecutive trades whose open times are within 2 seconds of each other form a "burst group." Any group with 2 or more trades gets every member flagged.

Contact Information

For any questions or concerns regarding these terms, you can reach us at:

• Email: [email protected]
• Phone: +1-758-572-5436