The following Terms & Conditions shall replace any prior or existing agreement between the parties, or previously issued terms & conditions, and shall apply to any existing arrangements currently operating between the parties. By executing an Account Application and/or undertaking any transaction with KVB Kunlun Pty Ltd
ACN 4 AF“L KVB Ku lu ou
hereby agree to be bound by the following Terms &
Conditions (as amended from time to time).
1. P
URPOSEThe Client wishes KVB Kunlun to deal in exchange-traded and over-the-counter financial products on their
ehalf i a o da e ith the Clie t s i st u tio s f o time to time, and in accordance with the terms and conditions contained herein.
2. D
EFINITIONS ANDI
NTERPRETATIONIn these Terms & Conditions unless a different intention is expressed, the following terms (as subsequently modified by amended legislation or regulation) shall mean:
a ou t ea s the a ou t of the Clie t deali g i the financial products issued by KVB Kunlun, which is established in accordance with the terms and conditions of this Terms & Conditions.
age t ea s a legal e tit u de taki g a t a sa tio or function on behalf of another legal entity but in its own name;
"Terms & Conditions" means this Account Application, these terms & conditions and any other documents annexed or incorporated by reference;
Autho ised Pe so ea s a pe so autho ised to bind the Client under these Terms & Conditions;
"Business Day" means a day on which trading banks in Sydney, Australia are open for business;
CFD is a Co t a t Fo Diffe e e hi h is a o e -the-counter derivative product comprising an agreement under which one party is entitled to be paid an amount of money (profit), or has to pay an amount of money (loss), resulting from movements in the price or value of an underlying instrument or security (without
actually owning that underlying instrument or security).
Close of Busi ess ea s the ti e at hi h the arket of the Exchange, on which the Underlying Security over which a CFD is quoted, normally closes on any Business Day.
Closi g Date ea s i elatio to a CFD the date o hi h the Client accepts the Closing Price of the Underlying Security, or on which a Closing Date is deemed to have occurred in accordance with these Terms & Conditions.
Closi g Noti e ea s i elatio to a CFD the oti e gi e by one party to the other to close any CFD in accordance with these Terms & Conditions.
Closi g P i e means in relation to a CFD the Underlying Security Price as determined by KVB Kunlun at the time KVB Kunlun receives the Closing Notice.
Closi g Value ea s i elatio to a CFD the Closi g P i e multiplied by the Contract Quantity.
Collate al ea s any property (including securities or other assets) deposited with KVB Kunlun by the Client;
Co t a t ea s a o t a t hethe e al o itte , fo the purchase or sale of a financial product, entered into by the Client;
Co t a t Value ea s i relation to a CFD the Underlying Security Price multiplied by the Contract Quantity.
Co t a t Qua tit ea s i elatio to a CFD the u e of Underlying Securities to which the CFD relates. "Corporations Act" means the Corporations Act 2001 (Cth);
E ess Va iatio Ma gi ea s the a ou t of the Clie t s Variation margin plus any amount payable by KVB Kunlun to the Client at that time and less any amount payable by the Client to KVB Kunlun at that time;
Fi a ial p odu t i ludes futu es, optio s, contracts for difference, commodities and foreign exchange contracts, whether traded on an eligible exchange or over-the-counter, as those terms are defined in the applicable legislation or governed by market convention;
I itial Ma gi ea s a a ou t required to be deposited by the Client with KVB Kunlun to open a position.
Lo g Pa t ea s the pa t ide tified as ha i g otio all bought the Underlying Security.
Ma gi ea s I itial Ma gi o Va iatio Ma gi o oth.
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Net f ee e uit eans the amount of money you would have left in your account should all of your open positions be closed out at the current market price less any interest, fees or transaction charges (gross liquidation value) less your Margin requirement.
Ope ati g ules shall ea the ules, egulatio s, customs and practices from time to time of any exchange, clearing house or other organisation or market involved in the execution or settlement of any financial product transaction or contract;
"Relevant Exchange" means, in relation to a CFD transaction, the financial market on which the reference security which forms the subject of the CFD is quoted and is able to be traded. If the reference security is quoted on more than one financial market, KVB Kunlun will advise you of the Relevant Exchange for the purposes of the CFD, at the time the CFD is entered into;
“ho t Pa t ea s the pa t ide tified as ha i g notionally sold the Underlying Security;
U de l i g “e u it ea s the u de l i g se u it (including index) to which the CFD relates;
U de l i g “e u it P i e ea s i elatio to a CFD the current price of the Underlying Security as determined by KVB Kunlun;
Va iatio Ma gi ea s the a ou t deposited the Client with KVB Kunlun including any increase or reduction arising from settlement of a closed position;
T ust ea s he e the Clie t is a t ust, the t ust identified in the Client Details Form;
T ust Deed ea s he e the Clie t is a t ust, the trust deed governing the Trust as varied, substituted, supplemented or resettled from time to time.
b) Headings are for convenience only and shall not affect the construction and interpretation of these Terms & Conditions
c) The singular includes the plural and vice versa.
d) Reference to a person or individual includes bodies corporate, unincorporated associations,
partnerships and individuals.
e) If there is any conflict between the terms of these Terms & Conditions and the relevant operating rules, the operating rules shall prevail.
f) Any reference in these Terms & Conditions to any law, statute, regulation or enactment shall include references to any statutory modification or re-
enactment thereof or to any regulation or order made
under such law, statute or enactment (or under such modification or re-enactment).
3. C
LIENT REPRESENTATIONS AND WARRANTIESThe Client represents and warrants to KVB Kunlun that:
a) these Terms & Conditions constitutes a legal, valid and binding obligation of the Client;
b) the Client will not enter into a financial product transaction as or by way of a wager and that all orders to be placed and all trading to be conducted under these Terms & Conditions are lawful;
c) in executing and giving effect to these Terms &
Conditions, the Client does not and will not infringe any provision of any other document or agreement to which the Client is a party, nor any law or judgment/order binding upon it;
d) where the Client is more than one person, that all decisions made, and instructions issued, pursuant to these Terms & Conditions, are made on a fully informed and agreed basis by all the parties to the account;
e) the Client is not an employee or the close relative of an employee of any exchange participant;
f) all information supplied to KVB Kunlun by the Client is, or at the time it is supplied will be, accurate in all material respects and the Client will not omit or withhold any information which would make such information inaccurate in any material respect;
g) the Client shall, where so required, provide to KVB Kunlun a valid and binding guarantee and indemnity in favour of KVB Kunlun as a precondition of entering into these Terms & Conditions;
h) the Client will provide to KVB Kunlun on request such information regarding its financial and business affairs and/or identity, as KVB Kunlun may reasonably require;
i) in executing these Terms & Conditions, the Client will appoint KVB Kunlun as its agent for the purpose of dealing in financial products in accordance with the terms of these Terms & Conditions;
j) the Client and KVB Kunlun are bound by the applicable financial product laws, Corporations Act, applicable operating rules, customs, usages and practices (as modified from time to time) of the applicable exchange and clearing houses where any dealing takes place;
k) the Client will take all reasonable steps to obtain and communicate to KVB Kunlun all information, and shall deliver or cause to be delivered to KVB Kunlun all documents with respect to dealings in the financial products which are requested by any person having the
right to request such documents and information. The Client authorises KVB Kunlun to pass on/deliver all such information and documents to any such person.
l) the Client is not insolvent, and if the Client is a corporate client, no resolution has been passed and no petition has been presented or order made for the Clie t s i di g up o li uidatio o the appoi t e t of a receiver or a receiver and manager or an administrator of other insolvency official to the Client or any of its assets;
m) KVB Kunlun relies on representations and
warranties made by the Client. These representations and warranties and those contained elsewhere in these Terms & Conditions, survive the entering into of these Terms & Conditions and are repeated in respect of each financial product transaction.
4. C
APACITY TO ENTER INTO THESET
ERMS&
C
ONDITIONSThe Client represents and warrants to KVB Kunlun that:
a) the Client is duly organised and validly existing (or, if an individual, is of legal age and is under no legal disability or incapacity) and has full power and authority to enter into, and has taken all necessary steps to enable it lawfully to enter into, these Terms &
Conditions and the transactions contemplated by it, and perform its obligations it;
b) the person executing these Terms & Conditions has full power and authority to execute the Agreement on behalf of the Client, and bind the entity (whether individual, company, partnership or otherwise);
c) the Client has been properly categorised as a retail or wholesale client pursuant to the Corporations Act 2001 (Cwth), and accurately advised KVB Kunlun of its status as such;
d) where the Client is a Trustee (including the trustee of a superannuation fund)
i. the Trust has been duly constituted, is valid and complies with all applicable laws;
ii. the Trust Deed has been executed and stamped, in accordance with the laws of the relevant State or Territory of Australia;
iii. the Client is the only Trustee of the Trust;
iv. the property of the Trust has not been resettled, set aside or transferred to any other trust or settlement and the Trust Deed has not been terminated and the date o a e e t fo the esti g of the T ust s property has not occurred;
KVB Kunlun Pty Ltd – Client Services Agreement April 2018
v. the Trust Deed specifically empowers and authorises dealings in financial products, and such dealings are ithi the autho ised a it of the T ust s i est e t strategy,
vi. all obligations under, and transactions contemplated by, these Terms & Conditions constitute binding obligations and are lawfully enforceable against the Trust and its property in accordance with their terms;
vii. it has an unrestricted right to be fully indemnified or e o e ated out of the T ust s p ope t i espe t of a losses or liabilities incurred by it in its dealings with KVB Ku lu , a d the T ust s p ope t is suffi ie t to satisf that right of indemnity or exoneration;
viii. it has complied with its obligations in connection with the Trust;
ix. the e is o o fli t of i te est o the Clie t s pa t in entering into these Terms & Conditions and performing its obligations under it or the transactions contemplated by it; and
x. if the Client is a superannuation fund, it complies with all requirements outlined in the Superannuation Industry (Supervision) Act (1993).
e) where the Client is an investment manager or a Responsible Entity, the investment management agreement or constitution specifically empowers and authorises dealings in the financial products, by the Client and on behalf of their underlying clients; and xi. such dealings are within the authorised ambit of
the/ea h u de l i g lie t s i est e t st ateg ; xii. it will enter into transactions pursuant to the
applicable investment management agreement as investment manager or Responsible Entity and not otherwise;
xiii. it will only deal in financial product transactions when the funds or other assets under its control are sufficient to meet the obligations which arise in connection with such dealing;
xiv. i the e e t of te i atio of the Clie t s appointment as investment manager or Responsible Entity of the Client, it is authorised to arrange for closing out of all contracts entered into on behalf of the Client prior to the date of such termination as soon as possible; and
xv. repeats each of these representations and warranties in relation to both itself and its underlying clients.
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5. A
CCOUNTE
STABLISHMENTa) KVB Kunlun agrees to establish an account in the name of the Client, who is the person named as the holder of the account.
b) Where the Client is more than one person, the account shall be established in their names as joint tenants unless they specifically advise otherwise (in which case it shall be established in their names as joint tenants). In any case, the parties to such joint account shall each be jointly (together) and severally (individually) liable.
c) No o e e ept the Clie t has a i te est i the Clie t s account with KVB Kunlun opened for the purposes of these Terms & Conditions.
6. S
EGREGATEDA
CCOUNTS The Client agrees and acknowledges that:a) All money and property deposited by the Client with KVB Kunlun, or received by KVB Kunlun on behalf of the Clie t, shall e deposited to the Clie t s a ou t a d fo a credit balance and will initially be paid into a client segregated bank account established and maintained by KVB Kunlun and invested in accordance with applicable legal and regulatory requirements;
b) “u h seg egatio of the Clie t s o e a d p ope t does ot p ote t the Clie t s o e a d p ope t f o the risk of loss;
c) Whilst the Clie t s o e and property is segregated f o KVB Ku lu s o e a d p ope t , it a e o -mingled with the money and property of other KVB Kunlun clients. We do use client money for the purpose of meeting obligations incurred by us when hedging with other counterparties.
d) KVB Kunlun shall be entitled to retain any interest earned on such segregated money or property held or invested by KVB Kunlun;
e) If the Client does not provide KVB Kunlun with a tax file number or details of exemption, KVB Kunlun shall be legally obliged to deduct tax from interest payments at the highest marginal rate plus medicare levy;
f) KVB Kunlun may not use the funds in the client segregated a ou t to a age KVB Ku lu s deali gs ith its
counterparties with respect to client positions. Any obligations incurred by us in connection with such transactions are funded by us from our own money.
g) Financial product trades executed through KVB Kunlun are outed to KVB Ku lu s se i e p o ide , ho the fa ilitates execution and/or clearing on our behalf. Depending on the relevant jurisdiction or exchange, either KVB Kunlun or its service provider will be the registered owner of the i st u e t, ithi KVB Ku lu s lie t o i us a ou t.
h) Financial product trades executed through KVB Ku lu a e outed to KVB Ku lu s se i e p o ide , who then facilitates execution and/or clearing on our behalf. Depending on the relevant jurisdiction or exchange, either KVB Kunlun or its service provider will be the registered owner of the instrument, within KVB Ku lu s lie t o i us a ou t.
The value and dividends are then provided to clients by KVB Kunlun in accordance with their recorded, and continually reconciled, holdings.
However, if KVB Kunlun were to go into liquidation, and an administrator appointed, clients would be prima facie entitled to fair value for their recorded holdings, rather than holding such instruments in their name directly, thereby placing clients in the position of unsecured creditors with the administrators.
However certain protections are afforded clients by the Australian Client Money rules.
The Australian Client Money Rules provide that in the e e t that KVB Ku lu loses it s AF“ Li e e, e o es insolvent, merges with another AFS Licensee or ceases to carry on some or all of the activities authorised by the AFS Licence, client money held by KVB Kunlun, and the investment of client, must be dealt with as follows:
If money in the trust accounts is held in trust for the persons entitled to it, and is payable in the order set out below:
1. If money in the trust accounts is invested, the investment is likewise held in trust for each person entitled to money in the trust account; and
2. Money in the trust accounts is paid in the following order:
a. money that has been paid into the trust accounts in error
b. payment to each person who is entitled to be paid money from the trust accounts.
3. If the money in the accounts is not sufficient to be paid in accordance with the above, the money in the accounts must be paid in proportion to the amount of ea h pe so s e title e ts; a d
4. If there is money remaining in the accounts after payments made in accordance with the above paragraphs, the remaining money is payable to KVB Kunlun.
i) KVB Kunlun enters into arrangements with third party execution and clearing providers for the facilitation of transactions and settlements, and avails monies received for margin calls and settlements to such providers for this purpose.
7. M
ULTIPLEA
CCOUNTSa)The Client is able to open multiple accounts denominated in the same currency as or in currencies other than that of the main trading account. The operation of multiple accounts may mean that the Client incurs additional costs.
b) If the Client opens opposite positions in the same currency cross (for example) on the same account, such positions will cancel each other out. However if the Client operates several accounts (or sub-accounts) and opposite positions are opened on different accounts (or sub-accounts), such positions will not cancel each other out.
The Client is specifically made aware that unless closed manually, all such positions may be rolled over on a continuous basis and thereby consequently all incur a cost for such roll-over.
c) Keeping opposite positions open on different accounts will result in both positions being continuously rolled over a d the e o ti uousl ei g ha ged the to -next ate u til a uall losed.
d) If the Client has opened more than one account, Margin or Collateral deposited on one account will not automatically serve as Margin coverage on the other account(s). A Client may therefore receive margin calls and stop outs on one account despite having additional collateral available on other accounts.
e) However, if the Client has deposited money or Collateral on one account, KVB Kunlun is entitled to transfer money or Collateral from one account to another, even if such transfer will necessitate the closing of margin trades on the account from which the transfer takes place.
f) Interest is calculated on the basis of the net free equity of each individual account or sub-account. When operating several accounts, Client will therefore be charged interest on the full negative net free equity on any account despite having a positive net free equity on another account.
When operating several accounts Client should use caution when using more than one account, and understand that the rate of interest paid on positive balances differs from the rate of interest charged on negative balances.
8. R
ISKD
ISCLOSURES8.1 The Client represents and warrants to KVB Kunlun that:
a) they have received, read, understood and accepted the risk disclosures provided herein in relation to the financial products to be traded and contained herein;
b) they have received, read and understood the Financial Services Guide and Product Disclosure Statement;
c) the Client acknowledges, recognises and understands that trading and investment in these financial products is speculative, may involve an extreme degree of risk and significant loss, and is appropriate only for persons who can assume risk of loss in excess of their margin deposit;
d) the Client has read these Terms & Conditions and understands that KVB Kunlun has only provided general advice, and the Client has considered its objectives and financial situation and has obtained appropriate independent advice prior to entering into these Terms & Conditions, and has formed the opinion that dealing in the financial products is suitable for the Clie t s eeds a d pu poses;
e) the Client has taken such independent legal and financial advice as the Client considers necessary prior to executing these Terms & Conditions; and
f) the Client is willing and able, financially and otherwise, to assume the risk of trading in high risk investments.
8.2 The Client acknowledges that neither KVB Kunlun nor any associated entity guarantees the performance of any given financial product or account nor that any financial product or account will achieve a particular rate of return.
9. C
LIENT ACKNOWLEDGEMENTSThe Client acknowledges to KVB Kunlun that:
a) KVB Kunlun will deal or instruct third parties to deal on behalf of the Client, in the financial products;
b) KVB Kunlun may utilise the execution and settlement services of appropriately licensed third parties on behalf of the Client in order to provide the services detailed in these Terms & Conditions;
c) Dealings in the financial products create an obligation to make a cash adjustment in accordance with the terms of the relevant transaction;
d) Where a financial product has no maturity date or defined term, open contracts shall continue until such date as they are closed;
e) All dealings executed on behalf of the Client pursuant to these Terms & Conditions shall be at the absolute discretion of KVB Kunlun. In particular, KVB Kunlun shall be entitled to take any action it considers necessary in its absolute discretion to ensure compliance with the operating rules and all other applicable laws and regulatory decisions;
f) KVB Kunlun may act as principal in respect of the financial products traded by KVB Kunlun on behalf of the Client regardless of whether KVB Kunlun is acting on Client instructions or not;
g) The Client has been made specifically aware that in certain markets, KVB Kunlun may act as a market maker and when so acting under normal market circumstances quote the Client bid and ask prices. KVB Kunlun will only disclose that it is acting as a market maker in response to a written request from the Client to make such disclosure. The Client accepts that in such markets, KVB Kunlun may hold positions that are contrary to the position of Clients resulting in potential conflicts of interest;