Terms & Conditions
- Introduction
ProvidusBitex is an investment firm that operates as a global broker.
- Acknowledgement
The client acknowledges that he/she has read, understood and
accepted the Terms of Business that may be amended from time to
time, in addition to any information contained within the firm’s
website available online at www.ProvidusBitex.com.
After the client completes and submits the Account Opening
Application Form together with all the required identification
documentation, ProvidusBitex will send an email notification informing the
applicant whether he/she has been accepted as a customer of ProvidusBitex.
It is understood that ProvidusBitex is not required to accept the client
as its customer, and hence open an account for him/her or accept any
money from him/her, until all documentation required has been duly
received by ProvidusBitex, properly and fully completed by the client and
all internal Company checks (including without limitation anti-money
laundering checks and appropriateness tests) have been duly
satisfied.
It is further understood that ProvidusBitex reserves the right to impose
additional due diligence requirements to accept clients residing in
certain countries or as it sees fit from time to time. The Agreement
will take effect and commence upon the receipt by the client of the
notice sent by ProvidusBitex informing the client that he/she has been
accepted as ProvidusBitex’s client. Furthermore, by accepting this
Agreement, the client is consenting that if he/she is accepted by
ProvidusBitex as a client their relationship will be governed by the terms
and Conditions of this Terms of Business and Account Opening
Agreement as amended.
The client acknowledges that the Firm’s official language is the
English Language.
- Scope of the Terms of Business
3.1 This document “Terms of Business” determines all actions related
to the execution of the client’s trades and is taken in conjunction
with the Account Opening Agreement.
3.2 The Terms of Business are non-negotiable and have priority over
any other arrangements, agreements, express or implied statements
made by ProvidusBitex, unless determined otherwise.
- Definitions and Interpretations
4.1 Terms listed below have the following meanings and may be used
in the singular or plural:
“Account” means a personalized trading account of the client opened
with ProvidusBitex;
“Account Detailed Report” means a statement of the clients
securities portfolio, open positions, margin requirements, cash
deposit etc. at a specific point in time;
“Ask Price” means the price at which ProvidusBitex is selling a CFD;
“Authorized Person” means a person authorized by the client under a
power of attorney to give instructions to ProvidusBitex in relation to the
Account;
“Balance” means the sum of the client Account after the last
completed order and deposit/withdrawal operation made within any
period of time;
“Best Execution Policy” means ProvidusBitex’s prevailing policy available
at ProvidusBitex’s Website regarding the best execution of client’s
orders;
“Bid Price” means the price at which ProvidusBitex is buying a CFD;
“Business Day” means any day on which banks are open for business;
“CFD Contract or CFD” means a contract which is a contract of
difference by reference to fluctuations in the price of the relevant
Underlying Asset;
“Client” means a natural or legal person, accepted by ProvidusBitex as its
client, to whom services will be provided by ProvidusBitex under the
“Terms of Business “;
“Collateral” means any securities or other possessions deposited
with ProvidusBitex;
“Company” means ProvidusBitex Ltd.
“Company’s Website” means www.ProvidusBitex.com;
“Contract” means any contract, oral or written, for the purchase or
sale of any commodity, security, currency or other financial
instruments or property, including any derivative contracts such as
options, futures, CFDs or other transactions related thereto,
entered into by ProvidusBitex and the client;
“Counterparties” mean banks and/or brokers through whom ProvidusBitex may
cover its transactions with clients;
“Durable Medium” means any instrument which allows the client to
keep information in a way accessible for future reference for a
period of time adequate for purposes of the information and which
enables the unchanged reproduction of the information stored;
“Equity” equals (Balance + Floating Profit & Loss + Swap);
“Event of Default” shall have the meaning given to this term in
Clause 12;
“Execution Venue” the counterparty for transactions and holder of
the clients securities or other assets deposited other than ProvidusBitex;
“Floating Profit/Loss” means the unrealized profit (loss) of open
positions at current prices of the Underlying Assets;
“Free Margin” means the funds not used as guarantee to open
positions, calculated as: Free Margin = Equity-Margin;
“Margin” means the required guarantee funds to open positions and
maintain Open Positions, as specified in the Spreads and Conditions
Schedule;
“Margin Call” when the Margin posted in the margin account is below
the minimum margin requirement, ProvidusBitex’s Execution Venue issues a
Margin Call and in this case the client will have a) to increase the
Margin that he has deposited, or b) to close out his position(s). If
the client does not do any of the aforementioned, the Execution
Venue shall have the right to close the client’s positions;
“Margin Level” means the percentage of Equity to Margin ratio. It is
calculated as: Margin Level = (Equity/Necessary Margin) x 100;
“Market Maker” means a dealer in securities or other assets who
undertakes to buy or sell at specified prices at all time;
“Market Rules” means the rules, regulations, customs and practices
from time to time of any exchange, clearing house or other
organization or market involved in the conclusion, execution or
settlement of a Contract any exercise by any such exchange, clearing
house or other organization or market of any power or authority
conferred on it;
“Open Positions” means any position/transaction that has not been
closed. For example, an open long position not covered by the
opposite short position and vice versa;
“Orders” means any trading transactions executed on ProvidusBitex’s
trading platforms by the client;
“OTC” means any Contract concerning a commodity, security, currency
or other financial instrument or property, including any option,
future, or CFD which is not traded on a regulated stock or commodity
exchange but “over the counter”;
“Principal” means the individual person or the legal entity which is
a party to a transaction;
“Security” means any securities or other assets deposited with the
execution venue;
“Services” means the services to be provided by ProvidusBitex to the
client interpreted by these Terms of Business. Services is inclusive
of any dealing, order routing, advisory or other services which
ProvidusBitex provides from time to time to the client by remote access
via the Internet and which are subject to these Terms;
“Spread” means the difference between the Ask Price and the Bid
Price;
“Spreads and Conditions Schedule” means the schedule of spreads,
charges, margin, interest and other rates which at any time may be
applicable to the Services as determined by ProvidusBitex on a current
basis. The Spreads and Conditions Schedule is available on ProvidusBitex’s
Website and may be supplied to the client on demand;
“Swap” means the funds withdrawn or added to the client’s Account
from rolling over (transfer) of an open position to the next day;
“Terms” mean these Terms of Business covering all the actions
related to the execution of your (client’s) trades;
“Trade Confirmation” means a notification from ProvidusBitex’s trading
platform to the client confirming the client’s entry into a
Contract;
“Trading Platform” means any online trading platform made available
to the client by ProvidusBitex for placing orders, requesting quotes for
trades, receiving price information and market related news as well
as having a real-time revaluation of the open positions, through the
Internet;
“Underlying Asset” means underlying asset is the financial
instrument (e.g., stock, futures, commodity, currency, index) on
which a derivative’s price is based.
- Internet and Electronic Trading
5.1 The client acknowledges the electronic nature of the Services
and the inseparable risk of this means of communication and
understands that his actions may not reach the intended destination
or may do so much later than intended, for reasons outside ProvidusBitex’s
control.
5.2 ProvidusBitex does not control signal power, its reception or routing
via Internet or any other means of electronic communication,
configuration of client’s equipment or reliability of its
connection. Therefore, ProvidusBitex is not responsible for any claims,
losses, damages, costs or expenses, including attorneys’ fees,
caused directly or indirectly, by any breakdown or failure of any
transmission or communication system or computer facility belonging
to ProvidusBitex.
5.3 The client is obliged to keep all login information secret and
assure that third parties do not obtain access to the trading
facilities. The client will be held responsible for transactions
executed by means of the client’s password even if such transactions
were not executed by the client himself.
5.4 Unless otherwise agreed, any prices shown on ProvidusBitex’s Trading
Platform are indicative at the time shown based on data that is
subject to constant change. The execution price is that which is
confirmed to the client on the Trade Confirmation issued (whether on
screen or otherwise) after the client order is executed. This price
may in certain cases differ from the price appearing on the screen
at the time the order was placed. In case when an incorrect price is
used as the basis of any transaction, the Execution Venue reserves
the right to amend or call off the details of the transaction(s) in
question.
5.5 The limit order functionality of the Trading Platform will be
subject to the Internet service remaining available over the period
in which the limit order is outstanding. It will be as well subject
to size limits input by the Execution Venue’s dealer(s) remaining in
excess of the clients order size and such dealer’s position limits
and/or any other limits determined by the Execution Venue to be
applicable to the client (whether or not disclosed to the client)
still being able to facilitate the order at the time the limit price
is reached.
5.6 The identification or use of any third-party products, services
or websites is not endorsed by ProvidusBitex. ProvidusBitex has no
responsibility or liability of any materials on any website, which
is not under ProvidusBitex’s direct control.
- Market Making
6.1 The client is particularly made aware of the fact, that in
certain markets, including the foreign exchange markets, OTC foreign
exchange options and CFD Contracts, the Eagle will act only as an
ECN broker.
6.2 ProvidusBitex will not act as the Execution Venue.
6.3 When acting as an ECN broker, ProvidusBitex will not establish bid and
ask prices.
6.4 In order for ProvidusBitex, to quote prices with the quickness
normally associated with speculative trading, ProvidusBitex may have to
rely on available information that may later prove to be erroneous,
due to specific market circumstances (e.g. lack of liquidity ,
suspension of an asset or errors in feeds from information providers
or quotes from Counterparties) If this occurs and if ProvidusBitex has
acted in good faith when providing the price to the client, ProvidusBitex
may revoke the trade with the client but must do so within
reasonable time frame and shall provide the client with a full
explanation of such cancellation.
6.5 Following execution of any position with a client, the Execution
Venue may afterwards compensate each such client position with
another client position, or a position with one of the Execution
Venue’s Counterparties or maintain a proprietary position in the
market, to obtain profits from such positions. Such decisions and
actions may result in the Execution Venue offsetting client
positions at prices, sometimes significantly different, from prices
stated to clients, resulting in trading profits or losses for the
Execution Venue.
This can consequently create what may be seen as an implied cost
(i.e. the difference between the price at which the client traded
with the Execution Venue and the price at which the Execution Venue
subsequently traded with Counterparties and/or other clients). The
Market Making function may pose significant costs to the Execution
Venue if the market moves against it as compared to the price at
which it traded with the client.
6.6 The client acknowledges that the Execution Venue in CFD
contracts where it acts as Market Maker, may hold positions that are
contrary to positions of the client, resulting in potential
conflicts of interest between the Execution Venue and the client.
6.7 In markets, where the Execution Venue acts as a Market Maker,
the client accepts that ProvidusBitex has no obligation to state prices to
clients at all times in any given market, nor to quote such prices
to clients included the specific maximum spread.
6.8 The client understands, recognizes and accepts that the price
quoted to the client includes a spread, when compared with the price
to which the Execution Venue may have covered or expected to be able
to cover the Contract in a trade with another client or a counter
party.
Moreover, the client acknowledges and accepts that this spread
represents ProvidusBitex remuneration and that such spread cannot
automatically be calculated for all Contracts and that such spread
will not be described at the Trade Confirmation or otherwise
disclosed to the client.
6.9 Any commissions, interest charges, costs associated to and
included in the spreads quoted by the Execution Venue as a Market
Maker in certain markets and other fees will therefore have
influence on the client’s trading result and will have a negative
effect on the client’s trading performance, compared to a situation
in such the commissions, interest charges and costs associated to
and included in the spreads, did not apply.
6.10 a) In the case that the client account equity is equal or
exceeds 300,000 USD (or currency equivalent) and there are open
trades of Metals (Gold and/or Silver) of 50 lots or more, ProvidusBitex
has the right to adjust the leverage of the underlying trading
account to 1:75. If this occurs, ProvidusBitex will notify the client by
email.
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b) If the client is an active trader and is executing numerous
transactions, the total effect of visible as well as not visible
costs may be important. The client may have to achieve significant
profits in the markets to be able cover the costs associated with
trading activities with the Execution Venue. For very active
clients, these costs may even surpass the value of the margin
deposited. Normally, when trading margined derivatives, the lower
the percentage of the applicable margin rate, the higher the
proportion of the costs associated with executing a transaction.
Margined derivatives are derivatives such as CFD’s that can be
traded using a leverage of higher than 1:1.
6.11 The client is particularly informed, that in trading of OTC
foreign exchange options, CFD Contracts and other OTC products,
implied charges may arise as an after-effect of the profits made by
the Execution Venue performing in its capacity as a Market Maker.
6.12 The Execution Venue is at no time obliged to reveal any details
of its performance or income produced as a Market Maker or
otherwise, related to other commissions, charges and fees.
6.13 The client is made aware that CFD Contracts may be OTC products
quoted by the Execution Venue whilst operating as a Market Maker and
not traded on a recognized stock exchange. As a result, non-visible
costs related to the Execution Venue performance as a Market Maker
may also apply to any CFD Contract.
- Arbitrage
7.1 Internet, connectivity delays, and price feed errors sometimes
create a situation where the price displayed on the Trading Platform
does not reflect the market rates precisely. In the OTC market,
where the client is buying or selling directly from the principal,
cannot exist the concept of arbitrage and ProvidusBitex does not permit
the practice of arbitrage on the Trading Platform. Transactions,
depending on price latency arbitrage opportunities may be dismissed
without prior notice.
ProvidusBitex reserves the right to make the necessary corrections or
modifications on the Account involved, without prior notice.
Accounts that rely on arbitrage strategies may be subject to
ProvidusBitex’s intervention and ProvidusBitex’s approval of any Orders. Any
conflict arising from such quoting or execution errors will be
solved by ProvidusBitex in their absolute discretion.
7.2 ProvidusBitex is not obliged to contact the client and advise upon
appropriate action reflecting changes in market conditions.
7.3 The client agrees to secure and hold ProvidusBitex, its affiliates,
directors, managers and employees harmless from and against any and
all liabilities, losses, damages, costs and expenses, including
legal fees that have arisen in connection with ProvidusBitex’s services
,provided that any such liabilities, losses, damages, costs and
expenses have not arisen for ProvidusBitex’s gross negligence, fraud or
willful default.
- Prohibited Trading
8.1 The client acknowledges and understands that the service
provided by ProvidusBitex to the client is not designed for specific
trading techniques usually called “arbitrage trading”,
“picking/sniping”. Sniping: the situation where the client is
prematurely buying or selling near default prices.
In case that client is utilizing such techniques, the client agrees
and acknowledges that ProvidusBitex may take one or more, or any portion
of, the following actions:
(i) close the client’s account;
(ii) suspend the client’s account for an undefined period of time;
(iii) carry out an investigation on the client’s account for an
indefinite period of time;
(iv) charge a penalty fee to the client in the same or higher value
of money which resulted from the client employing such techniques.
The client shall not illegally access or attempt to gain access,
reverse engineer or in any other way bypass the security measures
applied to the Trading Platform by ProvidusBitex.
It is categorically prohibited to take any of the following actions:
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Use any software, which applies artificial intelligence analysis
to ProvidusBitex’s system and Trading Platform;
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Deflect, control, damage or change any communication which is not
intended for client himself;
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Use any type of spider, virus, worm, trojan-horse, time bomb or
any other codes or instructions, designed to distort, destroy,
damage or dismantle the Trading Platform, the communication system
or any other system of ProvidusBitex;
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Send any unrequested commercial communication that is not
authorized.
- Untrue Trades
9.1 ProvidusBitex Ltd. retains the right to cancel and/or reverse any
trades which are considered untrue or opened at a fictitious price
not existing on the market at the time of opening. Such cases
include but are not limited to trades based on a non-market
quotation or based on latency trading (such as old prices).
- Trading Volume Limitation
10.1 ProvidusBitex reserves the right to increase or decrease the trading
volume limitation level of one or more instruments at any time
without giving prior notice. The volume limitation is applied on a
per client basis. In the event a volume restriction has been placed
on a client and that client attempts to exceed the volume limit on
any of the instruments restricted by such a limitation, the request
will be automatically rejected and an “Off quote” message will be
shown.
- Default
11.1 The Execution Venue and/or ProvidusBitex has the right to keep, or
make deductions from, any amounts which the Execution Venue and/or
Company is holding for the client, if any amounts are due from the
client to ProvidusBitex.
11.2 The client herewith entitles the Execution Venue and ProvidusBitex at
any time and without notice or liability to the client, to sell,
apply, set-off and/or charge in any manner any or all of the
client’s assets and/or the proceeds from such assets which the
Execution Venue and/or Company has custody or control over, in order
to redeem all or any of the client’s obligations to the Execution
Venue and ProvidusBitex.
11.3 Each and any of the following events shall count for an “Event
of Default” if:
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The client miscarries to make any payment or fails comply or act
on anything required by these Terms of Business;
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The client fails to secure assets for delivery, or take delivery
of assets, under any Contract on the first due date;
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The client dies or becomes of unsound mind or is declared absent;
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An application is made in respect of the client for an interim
order, if a bankruptcy petition is presented in respect of the
client, if a partnership, in respect of one or more of the
partners, or if a company, a receiver, trustee, administrative
receiver or similar officer is appointed;
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A petition of termination or administration of the client is
presented;
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An order is made, or a resolution is passed for the winding-up or
administration of the client (other than for the purposes of
amalgamation or reconstruction with the prior written approval of
ProvidusBitex);
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Any distress, execution or other process is imposed against any
property of the client and is not removed, discharged or paid
within 7 seven days; or
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Any security created by any mortgage or charge becomes enforceable
against the client and the mortgagee or chargee undertakes steps
to exact the security or charge;
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Any obligations of the client or any of its subsidiaries becomes
immediately due and payable, or capable of being declared so due
and payable, prior to its stated maturity by reason of default of
the client (or any of its subsidiaries) or the client (or any of
its subsidiaries) fails to discharge any indebtedness on its due
date;
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The client fails to fully meet any obligations included in these
Terms or any Contract including failure to meet margin
requirements;
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Any of the representations or guaranties given by the client are,
or become, untrue;
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The Execution Venue or the client is requested to close out a
Contract (or any part of a Contract) by any regulatory agency or
authority; or:
- ProvidusBitex is required to do so by law.
- ProvidusBitex considers it necessary for its own protection.
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There is well-founded suspicion that the client involves ProvidusBitex
in any type of fraud or illegality.
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ProvidusBitex suspects the client from money laundering activities,
terrorist financing or other criminal activities.
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Upon the existence of an Event of Default, the Execution Venue
and/or ProvidusBitex is entitled to take any of the following actions:
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Sells or charge in any way any or all of the client’s Security,
assets and property which may from time to time be in the
possession or control of the Execution Venue or call on any
guarantee;
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Purchases any Security, investment or other property where this is
necessary, in order for the Execution Venue to fulfill its
obligations under any Contract; in this case the client shall
reimburse the Execution Venue, the full amount of the purchase
price plus any associated fees and commissions;
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Deliver any Security investment or property to any third party, or
otherwise take any action the Execution Venue considers being
desirable in order to close out any Contract;
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Demand the client to immediately close out and settle a Contract
in such manner as the Execution Venue may request;
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Enter into any foreign exchange transaction, at such rates and
times as the Execution Venue may decide, in order to meet
obligations incurred under a Contract; and invoice back all or
part of any assets standing to the debit or credit of any Account
(including commuting Execution Venue’s or the client’s obligation
to deliver an asset into an obligation to pay an amount equal to
the market value of the asset (specified by the Execution Venue )
on the date invoicing back takes place).
- Terminate this Agreement without prior notice;
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Debit the Account(s) for the amounts which are owed to ProvidusBitex
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Close any or all of the Accounts held with ProvidusBitex;j) combine
client Accounts, consolidate the Balances in client’s Accounts and
to offset those Balances
- Refuse to open new Accounts for the client
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The client herewith authorizes ProvidusBitex to take all or any measures
described above without notice to the client. The client also
accepts that the Execution Venue is not responsible for any
consequences of it taking any such steps, unless the Execution
Venue has exercised gross negligence in connection herewith. The
client must execute such documents and take such other action, as
ProvidusBitex can request in order to protect ProvidusBitex rights, in
accordance with these Terms of Business, or within the frame of
any other agreements between the client and ProvidusBitex.
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If ProvidusBitex applies its rights to sell any Securities or property
of the client under this Clause, it will realize such sale,
without notice or liability to the client, on behalf of the client
and apply the proceeds of sale in or towards discharge of any or
all of the client’s obligations to the Execution Venue.
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Without prejudice to ProvidusBitex’s other rights, ProvidusBitex may, at any
time and without notice, combine or consolidate all or any of the
Accounts maintained by the client with ProvidusBitex and off-set any
amounts owed to or by ProvidusBitex in such manner as ProvidusBitex may
determine.
Advertising
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When ProvidusBitex is using, advertising or posting on its website or
platform or anywhere else the services, products or websites of
third party:
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ProvidusBitex is not responsible for such services, products or website
material, which is not under its control;
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ProvidusBitex gives no representation, warranty or guarantee as to the
exactness, correctness or integrity of related information or as
to the tax or legal consequences of any related Transaction;
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Such is provided only to allow the client to make his own
investment decisions and cannot be understood as an investment
advice or financial promotions to the client;
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If the document contains a restriction on the person (or category
of persons) for whom that document is intended or distributed, the
client agrees that he will not pass it on to any such person or
category of persons;
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The client accepts that before the diffusion, ProvidusBitex may have
acted upon it itself to make use of information mentioned above.
ProvidusBitex does not make representations regarding the time of
receipt by the client and cannot guarantee that he will receive
such information at the same time as other clients.”