Strategy Provider Terms & Conditions - 2025

1.      Introduction
1.1.  The Enigma Strategy Agreement (herein the “Agreement”) sets out the terms and conditions for the provision of the service of Enigma Copy (herein the “Service”) by Enigma Strategy (herein the “Company”) to its Clients, under the provisions of Enigma a company registered in England a Wales 12315940 and regulated by the Financial Conduct Authority (FCA: 926961) based at 35 Berkeley Square, Mayfair, London W1J 5BF hereinafter referred to as the “company” or “Enigma Strategy"

1.2.  This Agreement shall be complementary with all other Operative Agreements between the Company and the Client and together shall include all the terms and conditions by which the business relationship of the Client and the Company will be governed with respect to the provision of the Service i.e. termination of any of the Operative Agreements between the Company and the Client shall constitute an immediate termination of this Agreement.

2.      Definitions
The following terms shall have the following meanings herein:

“Agreement” means this agreement and any appendices to the agreement hereof

“Archived Enigma Copy Account” means a Strategy Provider Account or a Follower Account which had no financial or trading activity for a set period of 90 (ninety) days as per the Account Opening Agreement of the Company.

“Client” is a natural or legal person who has been accepted by the Company as its Client For the purposes of this agreement, Client shall refer either toa “follower” or the “Strategy Provider” unless explicitly stated.

“Strategy provider” is a natural or legal person who has been accepted by the Company as a strategy provider whom the Company shall list their strategy on the website for followers.

“Company” means Enigma Strategy a company registered in England a Wales 12315940 and regulated by the Financial Conduct Authority (FCA: 926961) based at 35 Berkeley Square, Mayfair, London W1J 5BF hereinafter referred to as the “company” or “Enigma Strategy".

“Copy Ratio” is the ratio determining the size of the Followers’ position copied in relation to the Strategy Provider trade. It is calculated as Equity Ratio between the Follower and the Strategy Provider multiplied by the chosen Follower Volume Allocation.

“Effective Date” shall mean the date that the prospective Strategy Provider or the prospective Follower have been approved by the Company.

“Equity” equals to Balance + Floating Profit & Loss + Swap.

“Follower” is a Client who has registered for the Enigma Copy Trading service via the Company’s website and has been assessed as suitable and approved as a Follower by the Company

“Enigma Copy Accounts” means either the Strategy Provider Account or the Follower Account respectively.

“Investment Advice” means the provision of personal recommendation to a client, either after the client’s request, or on the initiative of the investment advisor in relation to one or more transactions related to financial instruments, as per the provisions of the Law.

“Portfolio Management” means managing portfolios in accordance with mandates given by clients on a client-by-client bases where such portfolios include one or more financial instruments, as per the provisions of the Law.

“Service” means the Enigma Discretionary Copy trading service which is offered by the Company to suitable followers.

“Proposal” shall have the meaning set out in section 16 of this Agreement.

“Operative Agreements” shall mean the agreements entered into by the Strategy provider and the Company that govern all the trading activity of followers. Operative Agreements include but are not limited to the Account Opening Agreement, the Terms of Business, the Order Execution Policy and any other agreement and/or policy which is available to the Strategy Provider via the Company’s website and any appendices and/or addendums thereof, as amended from time to time, as well as any other agreement and/or policy which the Company may be required by the Law and/or any other legislative requirement, to make available to its Clients from time to time.

“Parties” shall mean both the Strategy Provider and the Follower which have been approved by the Company as per the provisions of this Agreement.

“Performance Fee” is the fee payable by the Follower to the Strategy Provider in the case where the trading strategy followed has provided positive results for the Follower.

“Primary Services” means the investment services which the Company is authorized to provide from time to time, under its articles of association.

“Profits” include profits from open and closed trades.

“Rescue Level” shall have the meaning set out in section 14 of this Agreement.

“Volume Allocation Percentage” is the percentage selected by the Follower which, alongside the clients equity ratio between the Follower and the Strategy Provider, is used to determine the volume of the trades to be copied.

All references to a statutory provision include references to:

a.      any statutory modification, consolidation or re-enactment of it, whether before or after the Effective Date of this Agreement, for the time being in force;

b.      all statutory instruments or orders made pursuant to it; and

c.      any statutory provision of which that statutory provision is a re-enactment or modification.

d.      Words denoting the singular include the plural and vice versa; words denoting any gender include all genders; and words denoting persons include corporations, partnerships, other unincorporated bodies and all other legal entities and vice versa.

e.      Unless otherwise stated, a reference to a section, party, appendix or a schedule shall mean a section or a party, appendix or schedule of this Agreement.

f.      The section

g.       headings are inserted for ease of reference only and do not affect the construction of this Agreement.

3.      General Terms and Conditions
3.1.     The Service is only available to Clients of the Company who have fulfilled the criteria outlined in section 4.1 or sections under 7 of this Agreement. The Service provides the opportunity for Followers clients to follow a selected trading strategy of a Strategy Provider, under the terms and conditions set out herein.

3.2.     A Client may register with the Company to become a Strategy Provider and choose to publish their trading strategy through the designated page on the Company’s website to any Client who wishes to become a Follower, under the terms and conditions set out herein.

 

4.      Follower Acceptance Criteria
The Company shall offer the Service only to eligible clients who satisfy the following criteria:

a.      have entered into an agreement for the provision of the Primary Services and who have been accepted by the Company as its Clients; and

b.      have applied for the Service through the applicable link on the Company’s website; and

c.      have completed the Suitability Test and have provided the Company with the necessary information in order to assess their investment objectives, their financial ability to bear the risks related to the provision of the Service and whether the Client understands the risks involved in relation to the specific financial instrument for which the Service is to be given.

4.1.     The Client acknowledges and confirms that the Company has the right to decline and/or refuse to offer the Service to a specific Client if he does not fulfil the criteria set out in  section 4.1 of this Agreement.

4.2.     The Client acknowledges and confirms that the Company will be assessing the Client in terms of suitability on at least an annual basis. The Company shall have the right to terminate the provision of the Service to a specific Client if he no longer meets the criteria set out in  section 11 of this Agreement.

4.3.     It is understood that the Company has the right to request any additional information and/or documentation from the Client at any time throughout the term of this Agreement and/or the business relationship with the Client.

5.      Acknowledgements
5.1.     The Strategy Provider acknowledge that they have read, understood and accepted the present Agreement, and all Operative Agreements available on the Company’s website.

5.2.     The Strategy Provider further acknowledge and understand that:

5.2.1.       The Company’s relationship with them will be governed by the terms and conditions of this Agreement and all other Operative Agreements available at the Company’s website, as amended from time to time;

5.2.2.       Any information in relation to the Service which is known to the Strategy Provider by using this Service shall be used solely for their own account.

5.2.3.       That the ratio between profits and losses of a Strategy Provider shall not always be the same as the ratio between profits and losses of their Followers.

5.2.4.       The Company shall follow the principles set out in its counterparties (preferred brokers) Order Execution Policy with respect to the execution of orders. Strategy Providers are required to ensure that they understand the principles laid down in the brokers Order Execution Policy prior to entering into a business relationship with the Company.

6.      Representations and Warranties
6.1.     It is understood that the Company shall assess the suitability of the Followers based on the information provided by them and shall not be held liable for any losses arising as a result of the Parties’ negligence to provide true and accurate information.

6.2     The Follower represents and warrants that the decision to accept or reject a Proposal from a Strategy Provider is based on their own discretion and assessment of the Proposal.

7.      Strategy Provider Account Registration
7.1.     A Client who wishes to register as a Strategy Provider is required to complete a Strategy Provider Due Diligence Questionnaire (DDQ). It is understood that a Strategy provider who does not fulfill the criteria set out in the DDQ shall not be able to proceed with registering as a Strategy Provider.

7.2.     The Strategy Provider shall open a Strategy Provider Account with one of our preferred broker’s and the following conditions must be fulfilled:

7.3.     The Company shall assess the strategy of the Client as per the provisions of the DDQ. It is understood that in case the Client does not succeed in having a strategy deemed suitable , the Company shall not proceed with accepting the Strategy Provider.

7.3.1.       Specification of a Strategy Name;

7.3.2.       Completed DDQ;

7.3.3.       Trading Strategy Description;

7.3.4.       Trading History Upload;

7.3.5.       Account Settings – Private or Public;

7.3.6.       Specification of Performance Fee;

7.3.7.       Account Leverage: The predefined account leverage is no more than 1:30 for major pairs, 1:20 for minor pairs, 1:20 for Gold, and 1:10 for other Commodities

7.4.     In case the Strategy Provider does not provide the information mentioned in the above section 7.3 within twenty (20) calendar days, the Company reserves the right to decline the Strategy Provider Account.

7.5.     It is further noted that failure to satisfy one or more of the above requirements the Company shall not proceed with accepting him as a Strategy Provider for the purposes of this Agreement.

7.6.     For the avoidance of any doubt, it is noted that the Strategy Provider will be assessed for their reputation, knowledge & experience assessment questionnaire & KYC check on at least an annual basis and based on the assessment conducted a Strategy Provider may no longer fulfil the eligibility criteria set out in section 11.

7.7.     If the Strategy provider fulfills the requirements set out in section 7.3 of this Agreement, they will receive a confirmation email informing him that he has been accepted by the Company as a Strategy Provider.

7.8.     Unless otherwise specified by the Strategy Provider, their Strategy Provider Account will be added to the public Strategy Provider Accounts on the designated page.

7.9.     A Strategy Provider can open up to 3 (three) Strategy Provider Accounts. It is noted that the Company may limit the number of Strategy Provider Accounts that a Strategy Provider can have at any time and with prior notification to the Strategy Provider.

7.10.   The maximum number of followers that can join a Strategy Provider is limited based on internal risk assessment of each provider’s strategy. In the event that this limit is reached, the option to accept new followers will be disabled.

7.11.   A Strategy Provider Account which has been inactive i.e. with no financial or trading activity for a period of 90 (ninety) days, will be automatically Archived as per the provisions of section 2 of this Agreement.

7.12.   The minimum opening deposit amount for the Strategy Provider Account is 10,000 USD and minimum redeposit amount is 100 USD. It is understood that the Strategy Provider is required to fund their Strategy Provider Account with one of the companies recommended brokers prior to be being able to be followed by a Follower.

7.13.   The Strategy Provider can open only the following positions on their Strategy Provider Account:

7.13.1.     Buy;

7.13.2.     Sell;

7.13.3.     Buy and Sell Limit;

7.13.4.     Buy and Sell Stop;

7.13.5.     Take Profit;

7.13.6.     Stop Loss.

8.      Strategy Provider’s Proposal
8.1.     A Strategy Provider Proposal is a consent for Followers to follow their trading strategies. Each Proposal consists of a set of parameters which are selected by the Strategy Provider themselves and the Company shall use this information for the calculation of the remuneration of the Strategy Provider, as well as set the conditions for the formation and operation of the Strategy Provider Accounts.

8.2.      The Follower acknowledges, understands and confirms that acceptance or rejection of any Strategy Provider Proposal is an entirely voluntary decision of the Follower and does not entail the conclusion of any contract, material reciprocal relationship or any other commitment binding the Company, Strategy Providers and Followers.

8.3.     The Strategy Provider Proposal parameters are the following:

8.3.1.       Strategy Name – Strategy Provider must agree to and abide by the company’s Code of Conduct as per section 10.

8.3.2.       Public or Private Strategy Provider Account Profile.

8.3.3.       Performance Fee – Percentage of profits payable to the Strategy Provider.

9.      Terms and Conditions
9.1.     The Service is not available to Joint Accounts Holders.

9.2.     The Strategy Provider is not allowed to have any direct contact with a Follower i.e. through telecommunications and/or any form of electronic communication other than the one specified under the terms and conditions of this Agreement. The Strategy Provider relationship with the Follower shall be limited to making available their own Strategy Provider Proposal to prospective Followers.

9.3.     The Follower has the option to follow a Strategy Provider during the trading activity of the Strategy Provider i.e. the Strategy Provider might have open trades prior to the Follower choosing to follow him. It is understood that any open trades which were opened prior to the Follower choosing to follow a Strategy Provider, those trades will not be opened on the Follower Account. The Follower shall be able to copy any subsequent trades opened by the Strategy Provider. It is further understood that the ratio between profits and losses of the Strategy Provider shall not be the same as the ratio between profits and losses of the Follower.

9.4.     The Follower will receive a Margin Call in case the minimum margin requirement to cover any open copied trades is insufficient. The Follower shall be responsible for monitoring their Follower Account and ensure that the minimum margin requirement is met. It is noted that in case of insufficient margin in the Follower Account, the Follower will be stopped out. The Follower acknowledges and understands that he shall have no right to claim for any losses arising out of their failure to maintain the margin requirement i.e. the Follower being stopped out due to failure to maintain the margin requirement whereas the Strategy Provider was at a profitable position at the time of closing their positions.

10.   Code of Conduct
10.1.   The Strategy Provider acknowledges, confirms and understands that by using this Service he must follow the following principles of the Company’s Code of Conduct:

10.1.1.     ”Strategy provider” shall not promote any unsolicited and/or unauthorised commercial advertising, promotional materials or other form of solicitation;

10.1.2.     ”Strategy provider shall not refer to any other Strategy Provider Accounts and/or internet sources;

10.1.3.     ”Strategy provider” shall not reveal any Follower’s identity through email addresses, URL addresses, Skype ID, telephone number, personal account details and any other form of identification of a Follower to any third party;

10.1.4.     ”Strategy provider” shall not attempt to impersonate or falsely state or otherwise misrepresent another user, person or entity;

10.1.5.     ”Strategy provider” shall not represent himself as a representative and/or affiliate and/or connected person with the Company in any contracts and/or agreements either verbally and/or in writing other than within the context of this Agreement;

10.1.6.     ”Strategy provider” shall not violate the existing copyrights, patents, trademarks or other proprietary rights of the Company which might come to their possession during the course of this Agreement;

10.1.7.     ”Strategy provider” shall not promise and/or guarantee to any Follower and/or a prospective Follower any sort of definite returns of investment i.e. any form of projected gains, expected returns, guarantees of profits, and/or risk level, drawdown and/or unrealistic/false guarantee;

10.1.8.     ”Strategy provider” shall not make any statements and/or calculations and/or obligations on behalf of the Company on any means of public communications i.e. forums, journal articles, books presentations etc.

”Strategy provider” shall not use any threatening and/or abusive and/or harassing and/or defamatory and/or vulgar and/or obscene and/or hateful or otherwise objectionable content including but not limited to racial and/or nationalistic and/or ethnic slurs on their Strategy Provider Account.

11.   Follower Account Registration
11.1.   A Client who fulfils the criteria set out below in this Agreement may apply to the Company to become a Follower of a Strategy Provider. A Client may become a Follower of a Strategy Provider by registering for a Follower Account and the following conditions must be met:

11.1.1.      Suitability Test: The Client will be required to complete the Suitability Test upon registering for a Follower Account Test and have provided the Company with the necessary information in order to assess their investment objectives, their financial ability to bear the risks related to the provision of the Service and whether the Client understands the risks involved in relation to the specific financial instrument for which the Service is to be given. It is understood that in case the Client does not succeed in the Suitability Test, the Company shall not proceed with accepting them as a Follower.

11.1.2.       Select a Strategy Provider to follow.

11.1.3.       Select the liquidation/Drawdown Level.

11.2.   It is further noted that failure to satisfy one or more of the above requirements, the Company shall not proceed with accepting them as a Follower for the purposes of this Agreement.

11.3.   For the avoidance of any doubt, it is noted that the Follower will be assessed for their suitability on an annual basis and based on the assessment conducted a Follower may no longer fulfil the eligibility criteria set out in section 4.1 to receive the Service.

11.4.   If the Client fulfils the requirements set out in section 11.1 of this Agreement, he will receive a confirmation email informing him that he has been accepted by the Company as a Follower and which will include their MT4/5 login details from one of the companies recommended brokers.

11.5.   A Follower can open up to 3 (three) Follower Accounts. It is noted that the Company may limit the number of Follower Accounts that a Follower can have at any time with prior notification to the Follower.

11.6.   The Follower is permitted to follow only 1 (one) Strategy Provider per Follower Account at any given time.

11.7.   The Follower Account is specifically designed to facilitate the copying of trading transactions made by the Strategy Provider i.e. no additional trading transaction can be performed by the Follower on the Follower Account. The only modification option available to the Follower is to close the copied trades in their Follower Account. The Follower acknowledges and understands that by closing copied trades in their Follower Account on their own discretion, the profit or loss that he will experience will not be the same as that of their followed Strategy Provider.

11.8.   In the event that there are insufficient funds in the Follower Account to support the copying of a Strategy Provider trade, then the specific position will not be opened.

11.9.   Pending Orders, Take Profit or Stop Loss set by the Strategy Provider are not visible to the Followers Accounts.

11.10.The minimum opening deposit amount for the Follower Account is 10,000 USD, unless the Strategy Provider has specified otherwise. The minimum opening deposit amount shall be disclosed on the performance page of the specific Strategy.

11.10.1.  The Company cannot guarantee that an order opened on the Follower’s Account will be executed at the same price as an order on the Strategy Provider’s Account.

11.10.2.  An order placed by the Strategy Provider will normally be executed at the same time on the Follower’s Account. Nevertheless, it is understood that if, by the time the order is executed on the Follower’s Account, the price of an order has moved considerably far from the price in which the Strategy Provider has opened the order due to high volatility in the market, the Company reserves the right to not open the relevant order on the Follower’s Account;

11.10.3.  An order placed by the Strategy Provider will normally be executed at the same time on the Follower’s Account. Nevertheless, it is understood that if, by the time the order is about to be executed on the Follower’s Account the order has been already closed by the Strategy Provider then the order will not be executed on the follower’s account;

11.10.4.  If the price of an order has moved considerably far from the price in which the Strategy Provider has chosen to close the trade, the Company reserves the right to close the trade on the available market price at the time of closure.

11.10.5.  The costs associated with the financial instruments offered by the Company which are faced by the Follower might differ from the costs faced by the Strategy Provider, depending on the type of the trading account that each one has opened i.e. when the Strategy Provider has opened a trading account associated with lower costs compared to the trading account opened by the Follower, due to the type of the trading account opened by each one of them, this might have a different outcome on a particular trade or the overall strategy of each one.

11.10.6.  Taking into consideration the risks associated with the execution of orders, the Follower shall be responsible for assessing the strategy of the Strategy Provider and take the necessary actions for their copied trades. The Company shall not be liable for any losses resulting from the execution of orders and the Follower’s failure to assess their copied strategy.

11.11.In case a Client's Follower Account Equity drops below 5 USD/EUR and there are no open positions, this Follower Account will be unfollowed from the respective Strategy.

12.   Following and Unfollowing
12.1.   Upon selecting to follow a Strategy Provider, the Follower will choose the liquidation Level for the Follower Account.

12.2.   A Follower has the option to unfollow a Strategy Provider. This is possible only when there are no open positions on the Follower Account. In case the Follower selects the option to unfollow a Strategy Provider, the Follower will be given the option to automatically close all open positions, provided that the markets are open.

12.3.   In order for a Follower to follow a different Strategy Provider, he/she must first select to unfollow the current Strategy Provider as per section 11.

12.4.    12.2 of this Agreement or open a new Follower Account, in case the limit of 3 (three) Follower Accounts per Follower has not been reached.

12.5.   Upon unfollowing a Strategy Provider:

12.5.1.     Performance fees, if applicable, are removed from the Follower’s account and paid to the Strategy Provider’s account automatically by the broker.

12.5.2.     The liquidation Level resets to zero.

13.   Deposits and Withdrawals
13.1.   The Parties can complete deposits via their broker area provided by the broker.

13.2.   The value of the deposited funds cannot be less than the minimum deposit requirements of each Strategy provider account.

13.3.   The Parties can withdraw their available funds at any given time by requesting from the broker. Withdrawal requests shall be processed as per the Withdrawal Conditions of the broker which are available through the broker’s website or by contracting the broker support team.

14.   Liquidation Level
14.1.   Rescue Level is the percentage of equity that a Follower can keep secured in case of loss on the copied trades in the Follower Account.

14.2.   Rescue Level can be adjusted during each deposit or withdrawal to/from the Follower Account and can be set to a maximum of 10% of the equity at the time of each deposit or withdrawal.

14.3.   Once the Rescue Level is reached, all open trades on the Follower Account are closed and the remaining funds are no longer available to be placed on trades.

Example A:

Follower deposits 1,000 USD and selects Rescue Level of 20%, therefore 200 USD is secured in case of loss, when Follower’s equity reaches 200 USD all open trades are closed and the remaining funds are no longer available to be placed on trades.

Follower deposits 1,000 USD and selects Rescue Level of 25%, therefore 250 USD is secured in case of loss. Follower makes profit of 250 USD and decides to withdraw 500 USD. Upon withdrawal, the Follower is requested to set new Rescue Level which will be calculated for the remaining funds of 750 USD.

Example B:

Follower deposits 1,000 USD and selects Rescue Level of 30%, therefore 300 USD is secured in case of loss. Follower decides to make an additional deposit of 100 USD. Upon deposit, the Follower is requested to set new Rescue Level, which will be calculated for funds of 1,100 USD.

14.4.   Followers can only readjust the Rescue Level during redeposits or withdrawals.

15.   Copy Ratio
15.1.   Copy Ratio is the ratio determining the size of the Followers position copied in relation to the Strategy Provider trade. It is calculated as Equity Ratio between Follower and Strategy Provider and the chosen Follower Volume Allocation.

15.2.   The Copy Ratio changes dynamically as the equity on the Follower Account and Strategy Provider Account changes, meaning it is recalculated on each trade as the equity ratio is different on each trade even if the Volume Allocation has not changed.

15.3.   Follower Volume Allocation is the Percentage selected by the Follower which, alongside their equity, is used to determine the volume of trades to be copied.

15.4.   Volume Allocation can be adjusted during each deposit to the Follower Account meaning the Copy Ratio is reset each time funds are added to the Follower Account.

15.5.   In the event that the position size to be opened - based on the Copy Ratio - is less than the minimum tradeable volume offered by the Company, then the trade will open with a minimum trade size of 0.01 lot. This is subject to your approval and confirmation otherwise the trade will not be copied.

15.6.   The corresponding position size of a copied trade to be opened in the Follower Account after calculation of the Copy Ratio will be rounded down i.e. if the copied trade to be opened based on the Volume Allocation is 0.125 the position size will be rounded down to 0.12.

15.7.   In the event of a partial closure of a position by the Strategy Provider the corresponding partial closure position size to be closed in the Follower Account after calculation of the Copy Ratio will be rounded up i.e. if the partial closure of the copied trade based on the Volume Allocation is 0.005 the partial closure position size will be rounded up to the minimum volume size.

Copy Ratio Example A:

Follower A deposits 400 USD and selects Volume Allocation of 100% Strategy Provider A deposits 5,000 USD The Follower’s trade copy ratio will be 400/5,000 x 100/100 = 0.08 Strategy Provider A opens position size of 0.50 lot

Follower A position size will be 0.50 x 0.08 = 0.04 lot

Copy Ratio Example B:

Follower B deposits 400 USD and selects Volume Allocation of 50% Strategy Provider B deposits 5,000 USD The Follower’s trade copy ratio will be 400/5,000 x 50/100 = 0.04 Strategy Provider B opens position size of 0.10 lot

Follower B position size will be 0.10 x 0.04 = 0.004 lot, therefore the trade will open with minimum trade size of 0.01 lot subject to the Followers approval and confirmation, otherwise the trade will not be copied.

Copy Ratio Example C:

Follower C deposits 10,000 USD and selects Volume Allocation of 100% Strategy Provider C deposits 5,000 USD The Follower’s trade copy ratio will be 10,000/5,000 x 100/100 = 2 Strategy Provider C opens position size of 1.00 lot

Follower C position size will be 1.00 x 2 = 2.00 lots

16.   Performance Fee
16.1.   Strategy Providers will select at the time of opening their Strategy Provider Account a Performance Fee percentage up to a maximum of 30% (thirty percent).

16.2.   Followers are obligated to pay the Performance Fee to the Strategy Provider they choose to follow based on their positive performance i.e. the Strategy Provider shall not receive the Performance Fee in case of a negative performance. The strategy provider will must achieve a performance its high water mark.

The Performance Fee is calculated according to the below formula:

(Follower’s Profits – Follower’s Losses) * Strategy Provider chosen Performance Fee % =

Performance fee payable by Follower to the Strategy Provider Example A:

Strategy Provider A chosen Performance Fee is 20% Follower A profit = 1,000 USD

Follower A loss = 0 USD (1,000 – 0)*20% = 200 USD payable by the Follower to the Strategy Provider

16.3.   The Strategy Provider acknowledges, understands and confirms that the formula is based on the investment duration and therefore covers the period starting from the last Performance Fee pay-out to the current date. The Performance Fee is not guaranteed as the value of open positions rise or fall

16.4.   The Performance Fee payment is completed on every other Saturday or at the time of withdrawal or time of unfollowing.

16.5.   Performance Fee calculation, deposit and withdrawal of funds, crediting and debiting of Performance Fees are performed automatically by the Company and will be shown on Enigma Copy statements accordingly.

16.6.   Strategy provider will receive 50% of the performance fee charge to the client. Enigma Strategy will receive the 50% remainder. (this will be waived should the provider fall outside the risk parameters or at the sole discretion Enigma Strategy deems “churning” taking place, or excessive volume is traded outside the strategy providers standard monthly averages (+25%)

17.   CALCULATION AND WATERMARK
The performance fee is deducted monthly in arrears on the basis of the extent to which total aggregate profit that month has been achieved, subject to a higher watermark.

The watermark is based on the highest end of month value that a client account has achieved. The watermark is reset at the start of each calendar month. If profit has been achieved in the previous month, then the gain minus the performance fee will become the new watermark. If a loss has been achieved in the previous month, then the watermark will be re-set at the previous watermark level. This will apply until such time as the losses have been recouped.

The watermark is adjusted to ensure that any losses from a previous month(s) are taken into account before any fee is deducted. Below we show two examples: (the figures quoted are purely an example to show the calculation method used and are not indicative of performance achievable).

Calculation Example based on 20% monthly performance fee and is for illustration purposes only. This illustration is indicative only and does not represent live or past strategy performance:

In month 7 a profit is made of £3200 creating a new balance of £107,440. No performance fee is taken since the a/c balance is below the £109,440 high watermark. In month 8 a £2600 profit is made, bringing the total balance to £110,040 and exceeding the previous high water mark by £600. Therefore a 20% (£120) charge is taken from the £600 profit above the high watermark and the new high watermark is £109,290.

18.   Exclusion of Liability
18.1.   The Company shall not be liable for:

18.1.1.     any loss, expense, cost or liability of any kind or nature suffered or incurred by the Strategy Provider and/or the Follower unless such loss, expense, cost or liability of any kind or nature is suffered or incurred as a result of the Company’s gross negligence and/or fraud on behalf of the Company and/or the intended failure of the Company’s obligations under this Agreement; and/or

18.1.2.     any conflict and/or dispute arising between a Strategy Provider and a Follower which has resulted by their participation in the Program as offered by the Company;

18.1.3.     for any obligation of the Company arising under any term, express or implied, under statute or common law.

19.   Confidentiality
19.1. The Company shall maintain all information received by the Parties confidential. It is understood that the Company shall not disclose any personal information about either of the Parties, other than the information displayed on the designated page of the Service on the Company’s website.

19.2. The Parties acknowledge, confirm and understand that such information will be disclosed to the Company’s employees and/or other related persons who are required to know such information for the purposes of this Agreement. It is noted that the Company may disclose such information as may be required by any law, rule or regulatory authority without prior notice to the Parties.

20.   Prohibited Trading
20.1. If the Company suspects or has reasons to believe that any of the Parties are involved in any form of prohibited trading i.e. certain trading techniques commonly known as "arbitrage trading", "picking/ sniping" and/or follow an abusive trading strategy i.e. any trading activity which is aiming towards potential riskless profit by opening opposite orders, during periods of volatile market conditions, during news announcements, on opening gaps (trading sessions starts), or on possible gaps where the underlying instrument has been suspended or restricted on a particular market, between same or different trading accounts, the Company reserves the right to:

20.2. terminate this Service with immediate notice to the Parties and/or the business relationship established between the Company and any of the Parties;

20.3. close any of the Parties’ accounts with the Company and/or suspend their account for an indefinite period of time;

20.4. charge a penalty fee to any of the Parties as the Company deems fit and proportionate;

20.5  close the account, confiscate any profits that arose from prohibited trading techniques and return the original deposit(s) to the Parties. If profits arising out of Prohibited Trading were already withdrawn, profits can be confiscated from the Parties related accounts in order to make up for the difference.

21.   Term
21.1. This Agreement shall come into force on the Effective Date and shall remain into force until terminated by either part giving at least three months’ notice. Unless there are grounds to terminate with immediate effect.  

21.2. Enigma Shall charge all clients (followers) a 2% annual management fee.

22.   Amendment and Termination
22.1. The Company has the right to unilaterally amend the Terms and Conditions of this Program from time to time, without any of the Parties’ consent.

22.2. The Service is available to the Parties at the Company’s discretion. The Company has the right to terminate and/or remove this Service by giving written notice to the Parties.

22.3. This Agreement may be terminated in any of the following cases:

22.3.1.     Any of the Parties communicated to the Company their desire to stop receiving the Service either by utilizing the unfollow option or by contacting the Company or its designated broker.

22.3.2.     Any of the Parties no longer meet the criteria to receive the Service. The Company shall not notify the affected Party in advance.

22.3.3.     In the event that any prohibited trading activities are undertaken by any of the Parties within any of their trading accounts or/and any other account related to it.

22.3.4.     If the Company suspects or has reason to believe that the Parties have submitted fraudulent details and/or false identification information during registration for the Service and/or during the Account Opening Process for opening a Live Account with the Company;

22.3.5.     If the Company suspects or has reason to believe that the Parties have abused and/or manipulated in any way any of the Terms and Conditions of this Service and/or any other Operative Agreement of the Company and/or have not acted in good faith;

22.3.6.     If the Company suspects or has reason to believe that the Parties have abused and/or manipulated any of the Terms and Conditions of this Service by hedging their positions internally (using other trading accounts held with Company) or externally (using other trading accounts held with other brokers) and/or has not acted in good faith;

22.3.7.     If it is not feasible to comply with the terms of this Agreement due to rules and regulations enacted by the regulatory authority having jurisdiction over the Company and/or any other legislative requirement having jurisdiction over the business being conducted by this Agreement.

22.3.8.     The Terms and Conditions of this Agreement and any other Operative Agreement of the Company are made in the English language and applicable to UK law. Any other language translation is provided as a convenience only. In the case of any inconsistency or discrepancy between original English texts and their translation into any other language, as the case may be, original versions of English shall prevail.