Client Fund Protection

This Client Fund Protection disclosure (the “Disclosure”) is issued by Kohle Capital Markets Limited (the “Company”, “we”, “us”, or “our”) and sets out the arrangements for the safekeeping and protection of funds deposited by users of digital services operated under the KCM Trade brand (the “Services”).

This Disclosure should be read together with the Company’s Terms of Service, Risk Disclosure Statement, and other applicable legal documentation.

The Company holds an Investment Dealer (Full Service Dealer) licence (Licence No. C117022600, SEC-2.1B) issued by the Financial Services Commission of Mauritius (FSC Mauritius) and is subject to client money obligations under the Securities Act 2005 (Mauritius) and applicable FSC Rules.

Important: The Company is not a bank or deposit-taking institution. Funds deposited with the Company are not covered by any government deposit guarantee, investor compensation scheme, or statutory deposit insurance. Users should be aware that funds deposited may be at risk.

1. Segregation of Client Money

Client funds deposited with the Company are held in designated client money accounts maintained separately from the Company’s own operational and corporate funds.

The Company does not commingle client funds with its own assets and does not use client funds to meet the Company’s own financial obligations, except as expressly permitted under applicable law (for example, where a client owes the Company margin, fees, or other contractual obligations).

This segregation arrangement is required under the FSC Mauritius licensing conditions applicable to licensed Investment Dealers and is designed to protect client funds in the event of the Company’s insolvency.

2. Client Money Banking Arrangements

Client money accounts are held at one or more licensed banking institutions selected by the Company. The Company selects banking partners that are licensed and regulated in their respective jurisdictions and periodically reviews its banking arrangements to ensure the continued financial soundness of those institutions.

Details of the specific banking institutions holding client funds are available upon written request to the Company.

3. Prohibition on Use of Client Funds

The Company must not:

• Use client money for the Company’s own business purposes or operational expenses
• Grant any security interest, charge, lien, or encumbrance over client money to any third party, except as required by applicable law or with the express written consent of the relevant client
• Transfer client money to any person other than the relevant client, except as required by law, court order, or applicable regulatory direction

4. Margin and Collateral

Funds deposited by users are used as margin to support open leveraged positions. Users must maintain sufficient margin in their accounts at all times to cover open positions.

If a user’s available margin falls below the minimum required level, the Company may:

• Issue a margin call requiring the user to deposit additional funds promptly
• Reduce or close open positions, in whole or in part, to restore the required margin level without prior notice where market conditions require prompt action

Users are solely responsible for monitoring their account balance and margin levels. The Company is not obligated to notify users of a margin shortfall before closing positions, except as required by applicable law.

5. Negative Balance

The Company takes reasonable steps to prevent a user’s account balance from falling below zero, including through the application of automated stop-out mechanisms. However, this cannot be guaranteed in all circumstances.

In conditions of extreme market volatility, rapid gapping, or system disruption, account balances may fall below zero. Users remain responsible for any resulting negative balance on their accounts. The Company assesses negative balances on a case-by-case basis in accordance with applicable regulations and its internal policies.

6. Deposits and Withdrawals

6.1 Deposits

Users may deposit funds through payment methods made available through the Services. The Company only accepts deposits from accounts and payment instruments held in the user’s own name. Third-party funding is not permitted.

6.2 Withdrawals

Withdrawal requests are processed to the same payment method from which funds were deposited, where technically feasible, in accordance with anti-money laundering requirements. Processing times vary depending on the payment method and applicable bank processing schedules.

6.3 Fees

Certain deposit and withdrawal methods may incur processing fees. Applicable fees are disclosed through the Services. The Company does not pay interest on deposited funds unless expressly agreed otherwise in writing.

7. Insolvency

In the event of the Company’s insolvency or dissolution, client money held in designated client money accounts is not available to the Company’s general creditors and will be returned to users in accordance with:

• Applicable Mauritian insolvency law
• The terms of the relevant banking arrangements
• Any applicable regulatory directions or orders issued by the FSC Mauritius

Users should however be aware that:

• The protection afforded by segregation may be limited where client money is held through an intermediate institution that itself becomes insolvent
• The recovery of client funds in an insolvency scenario may take time and may be subject to legal and administrative costs
• There is no investor compensation scheme or government-backed guarantee fund covering funds held by the Company

8. Professional Indemnity Insurance

In addition to client money segregation and regulatory capital requirements, the Company maintains professional indemnity insurance with a regulated insurer. This policy provides an additional layer of financial protection against qualifying claims arising from the provision of financial services to KCM Trade (Mauritius) clients. The coverage applicable to KCM Trade (Mauritius) clients is described in section 8.1 below; the separate arrangement maintained by the Australian entity is described in section 8.2 for information only and does not benefit KCM Trade (Mauritius) clients.

8.1 Kohle Capital Markets Limited (KCM Trade — Mauritius)

MUA Ltd is a licensed insurance company regulated in the Republic of Mauritius.

8.2 Kohle Capital Markets Pty Ltd (KCM Trade Plus — Australia)

Applies to KCM Trade Plus (Australia) clients only. The professional indemnity insurance described in this section is maintained by Kohle Capital Markets Pty Ltd (AFSL 489437), a separate legal entity, in respect of financial services it provides to its Australian clients. It does not extend to, and may not be relied upon by, clients of Kohle Capital Markets Limited (KCM Trade — Mauritius), whose applicable cover is described in section 8.1 above.

Insurance Advisernet is an Australian-based insurance network operating under AFSL authorisation.

Important: Insurance policies do not replace the protections afforded by client money segregation. Coverage under any insurance policy is subject to the specific terms, conditions, exclusions, and limits of the relevant policy. Insurance proceeds, if any, are not automatically distributed to clients and do not constitute a guarantee of recovery of client funds. Users should not rely on insurance coverage as a substitute for understanding the risks of trading in leveraged financial instruments.

9. Regulatory Oversight

The Company’s client money arrangements are subject to ongoing supervision by the FSC Mauritius. Regulatory enquiries may be directed to:

Financial Services Commission of Mauritius
www.fscmauritius.org
Licence No. C117022600

10. User Responsibilities

Users are responsible for:

• Ensuring that deposited funds originate from accounts held in the user’s own name and are not subject to any third-party claims or encumbrances
• Providing accurate and current account and payment details
• Monitoring account balances and open position margin requirements
• Responding promptly to any margin call or account notification from the Company
• Ensuring that withdrawal requests comply with the Company’s verification and AML requirements