Click Futures Additional Fees
The following fees are conditional and may not apply to your account.
High Risk Exposure Fee:
Click Futures will imposes a “High Risk Exposure Fee” on those accounts that have a high risk – worst case scenario loss exposure. This fee is intended to help minimize the risk to Click Futures from those accounts which carry risky positions that could potentially suffer excessive losses in the event of a significant market move – especially accounts with short futures option positions. At our discretion, this fee will be deducted from those accounts designated by our Margins Department and/or management team to be “high risk” due to their current market exposure. Please note: this fee is not insurance against losses in your account and you will remain liable to Click Futures for all and any deficits in your account regardless if you have paid any High Risk exposure fees.
On a daily basis, Click Futures will simulate a worst case scenario on all accounts with open positions to determine if a High Risk Exposure Fee is to be assessed. Through the daily analysis conducted by Click Futures, if an account would lose so much value that its equity would be eliminated and it would then have an unsecured debit (i.e., negative net liquidating value and/or cash balance), this would represent a high risk exposure to Click Futures as we are legally obligated to guarantee our client’s performance to our clearing firm, Ironbeam, Inc.
The High Risk Exposure Fee will be calculated and assessed for each calendar day that the account is deemed to be in a “High Risk Exposure” situation. This fee will typically be a minimum of 8% of the total margin requirement divided by 250 (average trading days in a calendar year) with a minimum fee of $10 per day. For example, the daily High Risk Exposure fee for an account with a total margin requirement of $50,000 would be calculated as follows: ($50,000 x .08) ÷ 250 = $16.00 High Risk Exposure daily fee.
Click Futures will calculate the High Risk Exposure Fee at its own discretion and using its own proprietary algorithms (which are subject to change without notice) to determine the exposure that an account poses. The High Risk Exposure Fee may/can change on a daily basis based on market movements, changes in the account’s positions, and/or changes in the formulas and algorithms Click Futures utilizes to determine the risk exposure of an account. If assessed, the High Risk Exposure Fee will be deducted on a daily basis. You should keep excess capital in your account to cover the fee if your account will be affected. If the assessment of the fee causes a margin deficit, the account will be subject to liquidation of positions as specified in the Click Futures/Ironbeam, Inc. Customer Agreement.
The High Risk Exposure Fee is assessed on an account by account basis, taking into account all factors that relate to the accounts market exposure.
Again, this High Risk Exposure Fee is not a form of insurance for your account. If your account incurs a debit (negative account balance), you are still fully liable to Click Futures to satisfy that debit (negative account balance) and the fact that your account may have paid High Risk Exposure Fees does not relieve you of that liability. Nor will your debit (negative account balance) be offset or reduced by the amount of any High Risk Exposure Fees assessed to your account.
Best practices in avoiding a High Risk Exposure Fee include the following:
Adding additional capital will improve the risk profile of your account and may reduce or eliminate any High Risk Exposure Fees;
Reducing the exposure in your account by offsetting short option positions or purchasing corresponding long option positions to create an option “spread” may also reduce or eliminate the Exposure Fee.
*Margins are subject to change without notice.