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Partnership Agreement Contract

Source: Notion | Last edited: 2023-06-12 | ID: abfbd649-5d5...

AGREEMENT FOR FUNDED TRADING ON A FOREX BROKER PLATFORM

THIS AGREEMENT is made on this _____ day of ______, 20, by and between ___________ (hereinafter “Funded Trader”), and ___________ (hereinafter “Funding Party”).

WHEREAS, the Funding Party wishes to provide funds to the Funded Trader for the purpose of trading on the Forex Broker Platform, and the Funded Trader agrees to trade on the said platform under the terms and conditions set forth in this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

  1. FUNDING: The Funding Party agrees to provide the Funded Trader with a sum of ________ for the purpose of trading on the Forex Broker Platform.
  2. TRADING: The Funded Trader agrees to trade on the Forex Broker Platform using the funds provided by the Funding Party. The Funded Trader will adhere to all rules and regulations of the Forex Broker Platform.
  3. PROFIT SHARING: Any profits resulting from the trading activities will be shared between the Funding Party and the Funded Trader as follows: ________.
  4. RISK MANAGEMENT: The Funded Trader agrees to follow prudent risk management strategies and guidelines as set forth by the Funding Party.
  5. TERM AND TERMINATION: This Agreement shall commence on the date first above written and shall continue until terminated by either party with written notice.
  6. CONFIDENTIALITY: Both parties agree to keep all information related to this Agreement confidential.
  7. DISPUTE RESOLUTION: Any disputes arising out of this Agreement shall be resolved through arbitration.
  8. GOVERNING LAW: This Agreement shall be governed by the laws of ________.
  9. INCENTIVE FOR HIGHER WATERMARK ACHIEVEMENT: The Funding Party agrees to inject additional funds into the trading account in proportion to the account balance, as an incentive for the Funded Trader. This provision will apply for each new high watermark that is reached, provided that the risk threshold, defined as the maximum percentage drawdown relative to the all-time high, is not surpassed.
  10. RIGHT TO CEASE FUND INJECTION: The Funding Party reserves the right to cease the injection of funds at any time and for any reason at its sole discretion.
  11. CRYSTALLIZATION PROCESS: The crystallization process consists of several components: a. Risk Assessment Frequency: The risk of the drawdown percentage will be assessed at a frequency of ________.

b. Fund Injection Frequency: The injection of funds into the trading account will occur on a ________ basis.

c. Excess Gain Observation: The observation of excess gain beyond the last settlement’s high watermark is a crucial component of the crystallization process. The excess return must exceed ________% of the last account balance.

APPENDIX

This Appendix forms an integral part of the Agreement and is used to record all numerical data related to the Agreement. The following figures will be regularly updated according to the agreed-upon crystallization frequency:

  1. Initial Funding Amount: ________
  2. Additional Funding Amounts: ________
  3. High Watermarks: ________
  4. Drawdown Percentages: ________
  5. Profit Sharing Percentages: ________
  6. Trading Profits and Losses: ________
  7. Current Account Balance: ________
  8. Crystallization Dates: ________
  9. Risk Assessment Dates: ________
  10. Fund Injection Dates: ________
  11. Excess Return Observations: ________ IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

(Funded Trader)

(Funding Party)

Funded Trader: The individual or entity that is receiving funds from the Funding Party for the purpose of trading on the Forex Broker Platform.

  1. Funding Party: The individual or entity that is providing funds to the Funded Trader for the purpose of trading on the Forex Broker Platform.
  2. Forex Broker Platform: The platform on which the Funded Trader will be conducting forex trading activities.
  3. Profit Sharing: The distribution of profits resulting from the trading activities between the Funding Party and the Funded Trader.
  4. Risk Management: The strategies and guidelines that the Funded Trader agrees to follow in order to manage risk while trading.
  5. High Watermark: The highest peak value that the trading account has reached.
  6. Drawdown Percentage: The percentage of decline from the high watermark to the lowest following point.
  7. Crystallization Process: The process of officially calculating and recording the profits and losses from the trading activities.
  8. Risk Assessment Frequency: The frequency at which the risk of the drawdown percentage is assessed.
  9. Fund Injection Frequency: The frequency at which funds are injected into the trading account.
  10. Excess Return Observation: The observation of profit beyond the last settlement’s high watermark.
  11. Appendix: A section of the agreement where all numerical data related to the agreement is recorded. I hope this helps! If there are any other terms or phrases you would like explained, please let me know.