MAM and Copy Trading Account Policy
1. General Conditions
1.1. The present Regulations define the terms and conditions under which AM GLOBE SERVICES LTD (hereinafter, “Company”) grants the MAM and Copy Trading Accounts service to Clients (hereinafter “Client” or “investor”).
1.2. The MAM and Copying Account services are designed to connect Investors’ Investment Accounts to the account of the Manager for the purpose of this agreement and the Client relationship the Manager may be considered to be a representative of the Company or at times and if cases warrant such an independent third party (hereinafter, “Manager”) for purposes of further transactions of the Manager on the financial markets in the interests of the Investors consists of the following:
- investor transfers and the Manager undertakes responsibility on consulting service of the Investor’s trading account opened in the Company (hereinafter ‘’the Investor’s Managed account’’);
- under consulting service of the Investor’s trading account (hereinafter ‘’Management’’) is understood as set of actions of the Manager on fulfilment of trades with the financial tools, directed on profit earning on own account of the Manager (hereinafter ‘’the Master Account’’) and issue to the Investor of obligatory recommendations to execution on fulfilment of trades with financial tools. The specified recommendation is considered as fulfillment by Manager of the trade on the Master Account;
- the Company is authorized by the Investor on the realization of effective transfer of recommendations of the Manager on the Investor’s managed account by duplication of trades of the Manager on the Investor’s managed account (hereinafter ‘’ the Duplicated trades’’).
1.3. The Manager and the Investor enter into an Agreement where the general terms are stated in the Present Regulations. The Manager is an agent of the Investor in relation to the Investment Account and does not provide trust management of the Investor’s funds no fiduciary relationship shall be created between the Manager and the Investor.
1.4. Only the Manager can carry out trading operations on the MAM and Copy Trading accounts and the client fully recognizes in this respect that they relinquish such control over the trades once the transfer has been concluded.
1.5. Regardless of the controls granted to the Manager in clause 1.4 above the opening and closing of the Investment Accounts as well as non-trading operations of deposit/withdraw funds to/from the Investment Account can be performed only by the Investor.
1.6. Ownership of the funds and entitlement to such funds after any gains and losses attributed to the actions of the Manager shall remain with the Client.
2.1. As a guarantee to observe Investor interests, the Manager must be an Investor on their own.
2.2. When registering a MAM Account, the Manager’s Capital is transferred to the Manager’s Investment Account.
2.3. The balance of the Manager’s Investment Accounts which is equal to or less than the Manager’s Capital can be withdrawn only when the MAM Account is liquidated.
2.4. When creating a MAM Account and transferring the Manager’s Capital to the account, a Manager must determine whether their account will be public or private:
2.4.1. Public MAM and Copy Trading Accounts appear in the full list of accounts on the Company internal system, and monitoring of them is visible to all.
2.4.2. Private MAM and Copy Trading Accounts cannot be converted into public ones at a later time without the expressed agreement of the Company.
2.4.3. The minimum amount of funds needed as an initial deposit for a Manager to create a Public MAM and Copy Trading Accounts shall be deemed by the Company based the experience as well as the investment strategy of the Manager.
2.5. The name and description of a MAM and Copy Trading Accounts must not contain any of the following elements: obscene language or any elements that are insulting in nature, including racial, religious, nationalistic and ethnic slurs; guarantees of profits or other promises; direct or indirect references to competing companies or their advertisements; the names of government officials and agencies; references to gambling or financial pyramid schemes; any hyperlinks; and the names of MAM Accounts or MAM Portfolios of other managers if such a reference will clearly mislead investors as to which manager owns the MAM Account or MAM Portfolio. The following elements can be used: the manager’s first name and last name; the names of trading indicators; descriptions of an advisor or trading strategy; the denomination of the account; and any other elements that don’t violate the restrictions listed above. The Company reserves the right to change the name of MAM and Copy Trading Accounts at its own discretion and without prior warning.
3. Manager’s Proposal
3.1. The Manager’s Proposal (“Proposal”) refers to the Manager’s offer to potential Investors to open Investment Accounts.
3.2. The Proposal consists of a set of parameters that the Company uses to calculate the Manager’s Remuneration and also defines other conditions for opening MAM and Copy Trading Accounts.
3.3. The Investor’s acceptance of the Proposal does bind the Manager and the Investor with contractual obligations.
3.4. The Company reserves the right to block investment in MAM and Copy Trading Accounts under the following circumstances:
a. when fraudulent activity is suspected;
b. when the forum rules are not observed;
c. when there is not enough activity on the account's discussion thread in the forum or in the "Discussion" tab on the account's page in the “INVESTMENTS” section of the Company system;
d. when the Company's request to change the username of the MAM or Copy Trading Account name which contains obscene language or any elements that are insulting in nature, including racial, religious, nationalistic and ethnic slurs is not fulfilled;
e. any other reasons (including without prior warning or explanation).
4.1. The MAM and Copy Trading Accounts Rollover (hereinafter, “Rollover”) takes place on all Accounts at the beginning of each server trading hour and may last for several minutes.
4.2. A Rollover can be either Active or Idle:
a. An Idle Rollover is used for gathering statistics and updating information on the MAM and Copy Trading Accounts and Investment Accounts, as well as executing deposit requests;
b. An Active Rollover is used for gathering statistics and updating information on the MAM and Copy Trading Accounts and Investment Accounts, calculating and paying remuneration to the Manager and Partners, and executing deposit and withdrawal requests;
4.3. A Rollover at 00:00 is used exclusively for gathering statistics and updating information on the MAM and Copy Trading Accounts and Investment Accounts. Deposit and withdrawal requests are not executed at 00:00.
4.4 If, as a result of a technical malfunction, a Rollover has not been executed, it will be executed at 00 minutes of the next hour after the malfunction has been fixed.
5. Trading Interval
5.1. A trading interval on an Investment Account begins on the date the Investment Account is activated (when the first deposit is made).
5.2. The length of a trading interval may be set at one, three or six calendar months.
5.3. The Manager determines the length of trading intervals on their MAM and Copy Trading Accounts.
5.4. The end of a trading interval designates the beginning of the following trading interval.
5.5. Requests for the payment of the Manager’s Remuneration are automatically created during the first open Rollover of the trading day preceding the day on which the trading interval ends. These requests are processed during the first open Rollover on the day on which the trading interval ends.
5.6. The Manager can change the execution time of an open request for the payment of remuneration, but only to an earlier time.
6. Depositing of Funds
6.1. A request must be submitted in the clients account in the Company’s system and then onwards to deposit funds on an Investment Account.
6.2. Upon submitting the request to deposit funds, the corresponding sum will be debited from the Investor's transitory account in the Company’s system If the deposit currency of the Investment Account and the transitory account are not the same, the deposit will be converted using the Company’s exchange rate.
6.3. Upon submitting the request to deposit funds, the request execution time is fixed. The request will be executed during the next suitable Active Rollover. Deposit requests are processed every hour with the exception of the rollover at 00:00 EET, while taking into account the Rollover threshold set by the Manager.
6.4. An Investor cannot cancel a request to deposit funds once it has been submitted.
6.5. When a request to deposit funds is submitted, it will be processed during the next Rollover at the current share price.
6.6. In cases where the funds were debited from the Investor’s transitory account but the deposit request was not generated for any reason, it will be generated at the next Rollover, once normal service has been restored.
6.7. In cases where the generated request to deposit funds for any reason is not executed, it will be executed at the next Rollover, once normal service has been restored.
6.8. In cases where the generated request to deposit funds for any reason is not executed, the share price for the request will be in accordance with the share price at the next Rollover in which the request is executed, once normal service has been restored.
6.9. The Company can cancel a deposit request if non-trading operations are temporarily blocked on such MAM and Copy Trading Accounts.
7. Withdrawing Funds
7.1. A request must be submitted in the Company’s system in order to withdraw funds from an Investment Account.
7.2. Funds withdrawn from the Investment Account will be transferred to the Investor’s transitory account in the Company’s system in the deposit currency of the Investment Account.
7.3. In the event that a funds withdrawal request would reduce the balance of the Investment Account to an amount that is lower than the minimum deposit set by the Manager, the Investment Account will be closed and all funds on the account will be transferred to the Investor’s transitory account excluding the Manager’s Remuneration if a fee is due at the time the Investment Account is closed. The Manager’s Remuneration shall be transferred in accordance with clause 9.4 of these Regulations.
7.4. In order to withdraw all their funds, the Investor must submit a request to close the Investment Account.
7.5. Upon submitting the request to withdraw funds, the request execution time is fixed. The request will be executed during the next suitable Active Rollover with the exception of the Rollover at 00:00 EET.
7.6. When a request to withdraw funds or close an Investment Account is submitted, it will be processed at the current share price (next Active Rollover, based on the settings in the Manager’s Request Planner).
7.7. In cases where a request to withdraw funds is not executed for any reason, it will be completed at the next Rollover once normal service has been restored. The share price at which the request is to be executed will correspond to the share price at Rollover when it is actually executed.
7.8. Managers can change the time when an active request to withdraw funds will be processed.
7.9. The Company can cancel a request to withdraw funds or close an Investment Account if non-trading operations are temporarily blocked on such MAM and Copy Trading Accounts.
8. Calculations and Transfers on MAM and Copy Trading Accounts
8.1. The Investment Account Balance is calculated according to the following rules:
a. each deposit of funds increases the balance by the sum deposited;
b. each withdrawal of funds decreases the balance proportionately following such operation;
c. At the end of a trading interval, after remuneration has been paid, the Investment Account Balance becomes equal to the Equity of the Investment Account.
8.2. The Equity of an Investment Account is calculated according to the following rules:
a. each trading operation on the Investment Account increases/decreases Equity by the profit/loss for that operation;
b. payment of the Manager’s Remuneration decreases the Equity by the amount of the remuneration;
c. each deposit of funds increases Equity by the sum deposited;
d. each withdrawal of funds decreases Equity by the sum withdrawn.
8.3. When the results are positive, the Manager’s Remuneration from profit is paid in the following cases:
a. at the end of a trading interval on the Investment Account;
b. when a partial withdrawal of funds is made from the Investment Account (the Manager is paid a percentage of the compensation based on the amount withdrawn);
c. an Investment Account is closed;
d. the MAM or Copy Trading Account is liquidated.
8.4. The transfer of funds to relevant accounts is carried out by the Company on the settlement date.
8.5. The following rules apply to calculations on MAM and Copy Trading Accounts: If the Manager’s compensation is calculated as being between 0 and 0.01, it will be rounded up to 0.01, and this amount will be transferred from the Investor’s Investment Account in the currency in which the MAM and Copy Trading Accounts are denominated.
b. If a Partner earns less than 0.01 in compensation, the Partner’s compensation will be rounded down to 0.
c. If the total amount of compensation on the MAM and Copy Trading Accounts is 1 USD (or the equivalent in EUR) or less, compensation will not be paid out or recalculated.
9. Obligations of the Parties
9.1. The Manager, Investor Company and any related party to the MAM and Copy Trading accounts guarantee to:
a. hold all responsibility for compliance with relevant legislation, including, but not limited to, legislation related to currency, tax and other laws of the country of residence, including full responsibility for the management of Investors’ accounts;
b. provide true and accurate information when registering as a Company Client and when completing all documents related to these Regulations;
c. be completely and fully aware of and understand the meaning, terms, and conditions of all accepted Company Regulatory Documents;
d. fully understand the consequences of one’s actions in the enforcement of these Regulations.
9.2. Should this guarantee above be breached, the Manager agrees to resolve disputes and settle the complaints of third parties resulting from their management of MAM Account at their own expense and using their own authority.
9.3. The Manager, Investor, and Partner agree to keep access passwords to the Trading Platform secure and confidential and do not have the right to disclose these passwords to third parties. All actions related to the fulfillment of these Regulations and/or usage of login and password are considered executed by the holder of said information. The Company does not bear responsibility for the unauthorized use of registration data by third parties.
9.4. The Manager, Investor, and Partner do not have the right to:
a. assume responsibility on behalf of the Company or put the Company under any obligations;
b. use the Company’s brand name and/or trademark;
c. publish or assist in any publications related to the Company in mass media, publish or distribute any articles and letters related to the Company or assist in the writing of such articles and letters in any newspapers, magazines, and other periodicals, Internet blogs and forums without the Company’s permission;
d. make any guarantees and/or promises, or make any claims in relation to any payments on behalf of the Company or using the brand name and/or trademark of the Company;
e. perform any other actions that may cause any damage to the Company or raise any complaints directed towards the Company by third parties.
9.5. If lawsuits or complaints are filed against the Company as a result of the Manager’s failure to comply with these Regulations, all losses suffered by the Company shall be fully compensated by the Manager.
10. MAM Trading Account Liquidation
10.1. The liquidation of a MAM Account leads to the liquidation of all Investment Accounts within the MAM Account.
10.2. The Manager can initiate a MAM Account’s liquidation by making a liquidation request in the Company’s system All open positions on the MAM Account must be closed and pending orders deleted before the Manager can liquidate the account.
10.3. The Company can initiate a MAM Account’s liquidation. All open positions will be forced closed.
10.4. The Company reserves the right to liquidate a MAM Account in the following cases:
a. The level of return, as shown in the MAM Account monitoring, has dropped to -99% or lower for 24 Rollovers in a row. If this happens, the account will be liquidated automatically.
b. There is a suspicion of fraud. The Manager will be given a prior warning about their account being liquidated.
c. The Manager has failed to adhere to the rules of the Company forum. The Manager will be given a prior warning about their account being liquidated.
d. The Manager has failed to respond to queries in their personal thread in the Company forum in a timely fashion. The Manager will be given a prior warning about their account being liquidated.
e. The Manager has not adhered to the Company requirement to change the nickname or name of a MAM Account which contains obscene language or language that is insulting to social, racial, national or religious identity. The Manager will be given a prior warning about their account being liquidated.
f. Other reasons. The Manager may or may not receive prior warning and explanation.
10.5. A request for a MAM Account’s liquidation is fulfilled during the next Rollover. The remaining net Equity of Investors and the Manager is automatically transferred to their transitory accounts.
11.1. The Manager and the Investor are Clients of the Company. In order to communicate with the Client, the Company may use:
a. Trading Platform internal mail;
e. The Company will use the Clients details indicated when opening the account or those details which have been altered by the Client. The Client agrees to accept notifications from the Company at any time.
11.2. Any communications sent to the Client (documents, notices, confirmations, statements, etc.) are deemed received:
a. if sent by e-mail, within one hour after e-mailing it;
b. if sent by Trading Platform internal mail, immediately after sending it;
c. if by telephone, then once the telephone conversation has been finished;
d. if sent by post, 7 (seven) calendar days after posting it;
e. and if posted on the Company Website, within one hour after it has been posted.
11.3. The Client shall notify the Company immediately of any change in the Client’s contact details.
11.4. Any telephone conversation between the Client and the Company may be recorded. Any recordings shall be and will remain the sole property of the Company and will be accepted by the Client as conclusive evidence of the Instructions or conversations so recorded.
12. Procedure for Dispute Resolution Complaint Procedure
12.1. If any conflict situation arises in which the Manager or Investor reasonably believes that the Company, as a result of any action or failure to act, breaches one or more terms of these Regulations, the Manager or Investor has the right to lodge a complaint with the Company. Complaints are accepted within 3 (three) business days after the grievance has arisen.
12.2. A complaint shall be lodged within the company registry. Complaints are automatically assigned with a unique number, the confirmation of which is sent to the Client. All complaints lodged by any other means (on a forum, by email, telephone, fax, etc.) will not be considered.
12.3. The complaint must not include:
a. an effective appraisal of the conflict situation;
b. offensive language;
12.4. The Company has the right to refuse a complaint if any of clauses 14.1, 14.2 or 14.3 have been breached.
12.5. Complaints made in regard to the failure to execute or improper execution of any kind of obligations regarding trading operations on a MAM Account are to be made only to the Manager.
12.6. Where complaints are submitted by the Manager regarding trading operations, the execution of requests on the MAM or Copy Trading Account will be blocked until a decision regarding the Dispute has been made. If Investors already have active requests to withdraw/deposit funds, it is recommended that the Manager submit their complaint in the shortest time possible in order to avoid breaching settlements on the MAM Account.
12.7. In accordance with these Regulations, the Company retains the right to independently initiate a review and resolution of a Dispute.
12.8. The Company may resolve all Disputes:
a. by crediting/debiting the Client’s trading account: this correcting entry will have the commentary “Indemnification”;
b. by reopening erroneously closed positions;
c. by deleting erroneously opened positions or placed orders.
The Company has the right to choose the method of Dispute resolution at its sole discretion. Disputes not mentioned in these Regulations are resolved at the sole discretion of the Company in accordance with common market practice and the Company’s interpretation of fair resolution of the Dispute.
12.9. The Company shall not be liable to the Client if for any reason the Client has received less profit than was hoped for or has incurred a loss as a result of an uncompleted action which the Client had intended to complete.
12.10. The Company shall not be liable to the Client in respect of any indirect, consequential or non-financial damage (emotional distress, etc.).
12.11. The Compliance Department shall consider any Client complaint or Dispute and will deliver a judgment on it within the shortest amount of time possible. The Dispute must be reviewed within 5 (five) business days of having been received. In certain cases, this deadline may be extended.
12.12. The Company retains the right to resolve Disputes immediately after a decision being made, but no later than 1 (one) business day from the moment a decision regarding the Dispute has been made.
12.13. In accordance with these Regulations, the Company retains the right to independently initiate a review and resolution of a Dispute. In this case, the maximum possible time period in which a decision regarding the Dispute is to be made and steps towards its resolution being taken shall be 3 (three) days. In certain cases, this deadline may be extended.
12.14. The Client accepts that in the event that they fall into arrears on their account, the Company reserves the right to unilaterally pay off this debt by withdrawing funds from the Client’s Investment Accounts.
13.1. The Company does not guarantee a profit. Positive trading results in the past do not guarantee future positive trading results.
13.2. The Manager, Investor and Partner accept responsibility for possible financial losses such as direct losses or profit losses resulting from the following risks:
a. the risk that the Manager does not possess the necessary qualification or knowledge required to manage Investors’ funds;
b. the risk that the Manager may not observe Investors’ interests or may carry out fraudulent operations in relation to Investors’ funds;
c. the risk that the Manager may lose control over the MAM Account;
d. the risk that third parties may gain access to management of the MAM Account;
e. the risk that the Manager, Investor or Partner may misunderstand or misinterpret these Regulations;
f. the risk that complaints concerning trading operations on the Investor’s Investment Account may be submitted late by the Manager to the Company; the risk of unforeseen delays in transfers between accounts or late execution of deposit/withdrawal requests or the closing/liquidation of a MAM Account;
g. the risk of a MAM Account’s liquidation.
13.3. The MAM Account Manager and their Investors bear financial responsibility for any negative equity incurred on a MAM account in direct proportion to their share in the MAM Account.
13.4. Under no circumstances does the Company bear responsibility for the consequences of such risks listed above.
14.1. The Client acknowledges that the Company has the right to introduce amendments to the provisions of these Regulations at any time, having given the Client written notification about the planned changes 3 (three) calendar days in advance. Such amendments shall come into force and are binding for the Client on the date specified in the notification.
14.2. Should one or more provisions of these Regulations become invalid, null and void for any reason, it shall not affect the validity of any other provision hereof which will continue to be binding.