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What is the Emergency Deposit

Applies to: Clients, Traders, Account Managers, Finance Team

The Emergency Deposit System is a critical risk management feature that allows clients to instantly add emergency funds directly to their Live trading accounts without needing to contact their account manager. This feature is specifically designed to prevent account trade-outs during critical market situations.

Emergency Deposit Overview​

The Emergency Deposit System provides immediate liquidity to trading accounts that are at risk of margin calls or forced liquidation. It serves as a temporary funding solution that gives clients 72 hours to properly fund their accounts while maintaining their open positions.

Key Purpose​

  • Prevent Trade-outs: Avoid automatic position liquidation due to margin calls
  • Immediate Access: Get funds instantly without administrative delays
  • Risk Management: Provide breathing room during market volatility
  • Client Autonomy: Enable self-service funding in emergency situations

Key Features​

Eligibility Requirements​

To access the Emergency Deposit feature, accounts must meet these criteria:

  • Margin Level Requirement: Only accounts with margin levels less than 150% can access this feature
  • Minimum Balance: Account balance must be $100 or above
  • Risk Status: Account must not be marked as high-risk by the finance department
  • Account Standing: No pending compliance issues or restrictions

Available Deposit Amounts​

The emergency deposit amount is calculated based on the current account balance using tiered percentages:

Account Balance RangeEmergency Deposit Percentage
Below $100Not Eligible
$100 - $49950% of account balance
$500 - $2,00030% of account balance
$2,000 - $5,00020% of account balance
$5,000 - $10,00015% of account balance
$10,000 - $25,00010% of account balance
Above $25,00010% of account balance

Instant Processing​

  • Immediate Access: Once confirmed, the deposit is added immediately without requiring prior approvals
  • Trading Ready: Funds are available for trading right away
  • No Delays: Bypasses normal deposit processing times and verification steps

Important Terms and Conditions​

72-Hour Validity Period​

  • Time Limit: Emergency deposit is valid for 72 hours after confirmation
  • Funding Requirement: Client must transfer funds to cover the deposit within this timeframe
  • Restrictions: All withdrawals and wallet transfers are blocked during this period
  • Trading Allowed: Normal trading activities continue uninterrupted

Failure to Cover Deposit​

  • Automatic Recovery: If not covered within 72 hours, the system automatically removes the deposit amount
  • Service Fee: A 20% service fee is added to the recovered amount
  • Calculation: Total Deduction = Emergency Deposit Amount + (Emergency Deposit Amount × 0.20)
  • No Liability: Brokerage takes no responsibility for trades closed during this recovery process

Risk Acknowledgement​

  • Client Responsibility: Clients are fully responsible for understanding the terms
  • Market Risk: Normal market risks apply to trades using emergency funds
  • Fee Acceptance: The 20% service fee is automatically accepted when using the feature
  • No Recourse: No disputes accepted for automatic recovery process

How It Works​

Activation Process​

  1. System checks eligibility criteria automatically
  2. Client confirms the emergency deposit amount
  3. Funds are instantly credited to the trading account
  4. 72-hour timer begins immediately

During the 72-Hour Period​

  • Trading continues with the additional funds
  • Regular margin calculations include the emergency deposit
  • Clients should arrange proper funding through normal channels
  • System monitors the countdown and sends reminders

Successful Resolution​

  • Client transfers funds through normal deposit methods
  • System automatically detects the covering deposit
  • Emergency deposit is converted to normal balance
  • All restrictions are immediately lifted

Automatic Recovery Scenario​

  • 72-hour timer expires without covering deposit
  • System calculates total amount to recover (deposit + 20% fee)
  • Amount is deducted from account balance
  • If insufficient balance, positions may be liquidated
  • Restrictions are lifted after recovery

Benefits for Clients​

Immediate Protection​

  • Avoid Margin Calls: Prevent immediate liquidation of positions
  • Time to React: 72 hours to arrange proper funding
  • Continuous Trading: Maintain trading strategies without interruption
  • Market Opportunities: Capitalize on market movements during critical times

Convenience Features​

  • Self-Service: No need to contact support during emergencies
  • Instant Access: Funds available within seconds
  • Transparent Terms: Clear calculations and terms upfront
  • Automated Process: No manual approvals required

Risk Considerations​

For Clients​

  • 20% Fee: Significant cost if not covered timely
  • Position Risk: Market movements can still cause losses
  • Over-Leverage: Potential for increased risk exposure
  • Dependency Risk: Should not be used as regular funding method

For Brokerage​

  • Credit Risk: Temporary exposure until recovery
  • System Integrity: Requires robust risk management systems
  • Monitoring: Continuous monitoring of emergency deposits
  • Compliance: Regulatory considerations for credit facilities