Author: Livia Tay, MY
Last Updated: April 7, 2025
This chapter outlines the circumstances under which a Default Event is considered to have occurred in the client’s account, and the actions that Lirunex may take in response. These provisions are essential for risk mitigation, regulatory compliance, and the protection of the Company’s financial interests.
Default
1. Events of Default
The following events constitute a Default Event:
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You become insolvent.
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You are an individual and either pass away or are declared of unsound mind.
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You fail to provide Margin or other required sums, or your Margin falls below the required level.
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You breach any obligation or provide false/misleading information under this Agreement.
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You knowingly exploit incorrect prices or manipulate our Electronic Trading Platform.
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You fail to pay any due fees or charges.
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Your payment method (e.g. cheque) is dishonoured or you consistently miss payment deadlines.
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You become uncontactable or fail to respond to our notices in a timely manner.
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Legal or regulatory requirements necessitate action from us, involving either party.
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Abnormal trading conditions arise.
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We believe action is necessary to protect our contractual rights.
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We are unable to quote prices due to unavailability of market information.
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You may be in breach of applicable laws or regulations.
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A request is made by any regulatory authority.
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Your total Order size exceeds normal trading limits.
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You fail to provide requested documentation within ten (10) days.
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Your Position size exceeds or is likely to exceed imposed restrictions.
2. Actions We May Take Upon Default
In the event of a Default, Lirunex reserves the right to take one or more of the following actions:
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Demand immediate payment of all sums due, including Margin.
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Terminate the Client Agreement.
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Close some or all open Positions.
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Restrict the size of existing Positions.
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Reject new Order requests.
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Apply our rights of set-off.
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Impose new Margin requirements.
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Reduce or withdraw credit available to your account.
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Suspend access to your account.
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Require you to immediately close or settle open Positions as instructed.
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Consolidate accounts and offset amounts at our discretion.
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Retain amounts owed to you against any contingent liabilities until resolved.
Understanding and adhering to the conditions outlined in this chapter helps protect both the client and Lirunex from the risks associated with financial default. It is vital that clients maintain adequate communication, funding, and compliance to avoid triggering any default events.