Client Categorization Policy

In the event of a conflict between Arwena LTD and a Client, terms expressed in English and expressed in any other language, the terms expressed in English shall prevail over those expressed in any other language.

1. Client Classification

Arwena Limited (hereinafter the “Company”) does categorize its Clients into one of the following three categories: retail, professional or eligible counter-party.

2. Client Classification / Risk Classification

The Company, prior to engaging in any business relationship with its potential clients, categorises the potential clients based on their level of experience and understanding of the risks involved. Clients shall be categorized as follows, based on the criteria outlined below:

  1.  Professional Clients

Professional client is a client who possesses the experience, knowledge and expertise to make its own investment decisions and properly assess the risks that it incurs.

  1.  Retail Clients

Each client, who is not a professional client, is considered to be a retail client. All the individual Clients are classified as Retail Clients.

Moreover, each Client, either Retail or Professional, will be categorised on three risk levels, based on his ability to bear the trading risk, as per the below classification:

When any of the above criterias are met, the Client can ask to be reclassified accordingly. For example, a Level 1 Client that sends to the Company 8 interchange orders for execution, needs to apply for Level 2 in order to be able to continue trading. Once he applies for Level 2 classification the Company will verify his Balance eligibility and proceed with his request. Once he will be classified as Level 2 he will be able to send up to 19 interchange orders and his trading account leverage will increase to 1:100.

The Client doesn’t have the option to change his RISK CLASSIFICATION. This is set by the Company based on his Balance and number of deals.

  1.  OPTION TO CHANGE CLIENT CLASSIFICATION – The Client doesn’t have the option to change his RISK CLASSIFICATION. This is set by the Company based on his Balance and number of deals.

It is noted that an eligible counterparty or professional client is allowed to request non professional treatment and the Company may agree to provide a higher level of protection. In this respect, the Company notifies its clients in a written form of their option to be classified as retail clients. The Company proceeds in this action, in order to offer a uniform level of protection to all of its clients.

The higher level of protection will be provided by the Company when the client enters into a written agreement with the Company, to the effect that it shall not be treated as a professional. It is the responsibility of the client who is classified as a professional client to ask for a higher level of protection when he is not in a position to properly assess and manage the risks involved in the transactions.

3. Request for different Client Categorisation

In accordance with Section II above, the following request may be submitted to the company:

  1. a) A Retail Client requesting to be categorised as a Professional Client. In that case the Client will be afforded a lower level of protection.
  2. b) A Professional Client requesting to be categorised as a Retail Client. In that case the Client seeks to obtain a higher level of protection.

The Company reserves the right to decline any of the above requests for different categorisation.

PROTECTION RIGHT

4. Retail Clients/ Professional Clients

Where the Company treats the Client as a retail client, he/she/they will be entitled to more protections than if the Client was entitled to be a professional client. In summary the additional protections retail clients are entitled to are as follows:

  1. A retail client will be given more information/disclosures with regard to the Company, its services and any cost, commissions, fees and charges and the safeguarding of client instruments and client cryptocurencies.
  2. When executing orders, the Company must take all reasonable steps to achieve what is called “best execution” of the client’s orders that is to obtain the best possible result for their clients.

Where the Company executes an interchange order on behalf of a retail client, the best possible result shall be determined in terms of the total consideration, representing the value of the Contract and the cost related to execution, which shall include all expenses incurred by the client which are directly related to the execution of the order, including execution venue fees, clearing and settlement fees and any other fees paid to the third parties involved in the execution of the order, if such fees apply.

When providing professional clients with best execution the Company in not required prioritise the overall cost of the transaction as being the most important factor in achieving best execution for them.

  1. The Company must inform retail clients of material difficulties relevant to the proper carrying out of their order(s) promptly upon becoming aware of the difficulty.
  2. If the Company provides services to a new retail client, the Company must enter into a basic agreement with the client, setting out the essential rights and obligation of the firm and the client.
  3. We shall not use possessions held by us on behalf of a client for our own account or the account of another client of ourselves, without the client’s prior express consent to the use of the instruments on specified terms, as evidenced, in the case of a retail client, by his signature or equivalent alternative mechanism.

 2019 © XTE All Rights Reserved

Risk warning
XTExchange products are complex derivative contracts and come with a high risk of losing money rapidly due to leverage. These products are not suitable for all users. You should consider whether you understand how these products work and whether you can afford to take the high risk of losing your money. Seek independent advice if necessary.
This website products and services are provided by Arwena Limited.
Arwena Limited is incorporated in St. Vincent and the Grenadines as an international business company. XTExchange is not required to hold any financial services license or authorization in St. Vincent and the Grenadines to offer its products and services.
XTEXCHANGE DOES NOT ACCEPT ANY USERS OR RESIDENTS FROM UNITED STATES OF AMERICA, JAPAN, SAINT VINCENT AND THE GRENADINES, CANADA, ALGERIA, ECUADOR, IRAN, SYRIA, NORTH KOREA OR SUDAN, UNITED STATES MINOR OUTLYING ISLANDS, AMERICAN SAMOA, RUSSIAN FEDERATION AND THE COUNTRIES OR TERRITORIES WHERE ITS ACTIVITY SHALL BE ESPECIALLY LICENSED, ACCREDITED OR REGULATED BY OTHER WAYS. YOU SHALL CHECK YOUR APPLICABLE LAW AND BE FULLY RESPONSIBLE FOR ANY NEGATIVE IMPACT ARISEN FROM YOUR RESIDENCE COUNTRY REGULATIONS. IF YOU ARE TRAVELLING TO ANY OF THESE COUNTRIES, YOU ACKNOWLEDGE THAT OUR SERVICES MAY BE UNAVAILABLE AND/OR BLOCKED IN SUCH COUNTRIES. PRIOR TO DEALING IN DERIVATIVE COMMERCIAL CONTRACTS WITH MARGIN YOU SHOULD CAREFULLY CONSIDER THE TERMS AND CONDITIONS OF THIS WEB-SITE, TO THE EXTENT NECESSARY, CONSULT AN APPROPRIATE LAWYER, ACCOUNTANT, OR TAX PROFESSIONAL. IF ANY OF THE FOLLOWING TERMS ARE UNACCEPTABLE TO YOU, YOU SHOULD NOT USE THE WEB-SITE, AND TO THE EXTENT PERMITTED BY LAW, YOU AGREE NOT TO HOLD ANY OF THE COMPANY AND ITS RESPECTIVE PAST, PRESENT AND FUTURE EMPLOYEES, OFFICERS, DIRECTORS, CONTRACTORS, CONSULTANTS, EQUITY HOLDERS, SUPPLIERS, VENDORS, SERVICE PROVIDERS, PARENT COMPANIES, SUBSIDIARIES, AFFILIATES, AGENTS, REPRESENTATIVES, PREDECESSORS, SUCCESSORS AND ASSIGNS LIABLE FOR ANY LOSSES OR ANY SPECIAL, INCIDENTAL, OR CONSEQUENTIAL DAMAGES ARISING FROM, OR IN ANY WAY CONNECTED, TO THE TRADING WITH MARGIN, INCLUDING LOSSES ASSOCIATED WITH THE TRADING WITH MARGIN. PLEASE NOTE THAT COMPANY IS IN THE PROCESS OF UNDERTAKING A LEGAL AND REGULATORY ANALYSIS OF BITCOIN TRADING WITH MARGIN. FOLLOWING THE CONCLUSION OF THIS ANALYSIS, COMPANY MAY DECIDE TO AMEND THE INTENDED FUNCTIONALITY IN ORDER TO ENSURE COMPLIANCE WITH ANY LEGAL OR REGULATORY REQUIREMENTS TO WHICH COMPANY IS SUBJECT. WE SHALL PUBLISH A NOTICE ON OUR WEBSITE OF ANY CHANGES THAT WE DECIDE TO MAKE MODIFICATIONS TO THE FUNCTIONALITY AND IT IS YOUR RESPONSIBILITY TO REGULARLY CHECK OUR WEBSITE FOR ANY SUCH NOTICES. ON THE CONCLUSION OF THIS ANALYSIS, WE WILL DECIDE WHETHER OR NOT TO CHANGE THE FUNCTIONALITY OF THE WEB-SITE.
The company does accept only participants:
a. he/she/it is of an age of majority (at least 18 years of age), meets all other eligibility criteria and residency requirements, and is fully able and legally competent to use the Website, enter into agreement with the XTExchange and in doing so will not violate any other agreement to which he/she/it is a party;
b. he/she/it has necessary and relevant experience and knowledge to deal with margin trading, cryptocurrencies and Blockchain-based systems, as well as full understanding of their framework, and is aware of all the merits, risks and any restrictions associated with margin trading, cryptocurrencies and Blockchain-based systems, as well as knows how to manage them, and is solely responsible for any evaluations based on such knowledge;
c. Is not a foreign or domestic PEP.
d. he/she/it will not be using the Website for any illegal activity, including but not limited to money laundering and the financing of terrorism;
Keep in mind that trading with margin may be subject to taxation. You are solely responsible for withholding, collecting, reporting, paying, settling and/or remitting any and all taxes to the appropriate tax authorities in such jurisdiction(s) in which You may be liable to pay tax. XTExchange shall not be responsible for withholding, collecting, reporting, paying, settling and/or remitting any taxes (including, but not limited to, any income, capital gains, sales, value added or similar tax) which may arise from Your participation in the trading with margin. Content, research, tools, and coin symbols are for educational and illustrative purposes only and do not imply a recommendation or solicitation to buy or sell a particular asset or to engage in any particular investment strategy. The projections or other information regarding the likelihood of various investment outcomes are hypothetical in nature, are not guaranteed for accuracy or completeness, do not reflect actual investment results, do not take into consideration commissions, margin interest and other costs, and are not guarantees of future results. All investments involve risk, losses may exceed the principal invested. You alone are responsible for evaluating the merits and risks associated with the use of our systems, services or products.