MARGIN, LEVERAGE AND TRADING CONDITIONS POLICY

1. INTRODUCTION

This Margin, Leverage and Trading Conditions Policy (“Policy”) defines the rules governing margin requirements, leverage, and trading conditions for clients of CaravanFX Limited (the “Company”).

This Policy forms an integral part of the Client Agreement.

2. DEFINITIONS

• Margin – funds required to open and maintain positions.
• Free Margin – available funds not used as margin.
• Equity – account balance plus/minus unrealized P&L.
• Leverage – ratio between margin and exposure.
• Margin Level – Equity / Margin × 100%.
• Margin Call – warning of insufficient margin.
• Stop-Out Level – level at which positions are automatically closed.

3. LEVERAGE

3.1 General Principles

• Leverage is provided at the Company’s discretion.
• Leverage levels may vary depending on:
  • instrument type;
  • account type;
  • market conditions.

3.2 Maximum Leverage

The Company determines leverage levels at its sole discretion.

Leverage is not fixed and may vary depending on multiple factors, including but not limited to:

• the type of financial instrument;
• market conditions and volatility;
• the Client’s trading activity;
• the Client’s risk profile and internal classification.

Clients may be categorized into different groups based on the Company’s internal criteria, and different leverage levels may apply to each category.

The Company reserves the right to adjust, reduce, or increase leverage at any time without prior notice where deemed necessary for risk management or regulatory purposes.

The Company is not obligated to disclose the methodology used for client classification or leverage determination.

4. MARGIN REQUIREMENTS

4.1 Initial Margin

Required to open a position.

4.2 Maintenance Margin

Minimum equity required to keep positions open.

5. MARGIN LEVEL CALCULATION

Margin Level is calculated as:

Margin Level (%) = (Equity / Used Margin) × 100

6. MARGIN CALL

• Margin Call occurs when Margin Level falls below a specified threshold.
• Clients are responsible for:
  • depositing additional funds;
  • reducing positions.

The Company is not obligated to notify clients before action.

7. STOP-OUT LEVEL

7.1 Automatic Liquidation

Positions may be automatically closed when Margin Level falls below the Stop-Out level.

7.2 Stop-Out Threshold

Indicative level:

20% (or as specified on the platform)

8. NEGATIVE BALANCE PROTECTION

The Company provides:

Negative Balance Protection

Clients cannot lose more than deposited funds.

9. MARKET CONDITIONS AND MARGIN ADJUSTMENTS

The Company may:

• increase margin requirements;
• reduce leverage;
• close positions.

Especially during:

• high volatility;
• economic events;
• low liquidity.

10. HEDGING

• Hedging may be allowed depending on account type.
• Margin requirements may differ for hedged positions.

11. TRADING RESTRICTIONS

The Company may restrict trading in cases of:

• abnormal market conditions;
• system issues;
• suspected abuse.

12. CRYPTO CFD SPECIFICS

• Higher margin requirements may apply.
• Increased volatility risk.
• 24/7 market exposure.

13. CLIENT RESPONSIBILITY

Clients are responsible for:

• monitoring margin levels;
• managing risk;
• maintaining sufficient funds.

14. PLATFORM INFORMATION

All margin parameters are visible in the trading platform.

15. AMENDMENTS

The Company reserves the right to modify this Policy at any time.

16. CONTACT INFORMATION

support@caravanfx.com