These Copy Trading Additional Terms and Risk Disclosure (the “Terms”) are issued by Kohle Capital Markets Limited (the “Company”, “we”, “us”, or “our”) and govern the use of copy trading functionality made available through digital services operated under the KCM Trade brand (the “Copy Trading Service”).
These Terms supplement and form part of the Company’s Terms of Service. In the event of any conflict between these Terms and the Terms of Service, these Terms shall prevail with respect to the Copy Trading Service. All other provisions of the Terms of Service continue to apply.
By activating or using the Copy Trading Service, you agree to be bound by these Terms. If you do not accept these Terms, you must not use the Copy Trading Service.
1. What is Copy Trading?
Copy trading is a feature that allows users (“Copiers”) to automatically replicate, in real time, the trading activity of other users or strategy providers (“Strategy Providers”). When a Strategy Provider opens, modifies, or closes a trade, a proportionate equivalent trade is automatically executed in the Copier’s account.
The Copy Trading Service is provided through Pelican Exchange Limited (Company No. 09437275, registered at 78 York Street, London, England), which operates the social trading platform at copy-trade.io. The platform is jointly provided with London & Eastern LLP. Pelican Exchange Limited operates independently of the Company and is subject to its own End-User Licence Agreement (EULA), available at identity.copy-trade.io/home/terms, which is governed by the laws of England and Wales. By using the Copy Trading Service, users acknowledge and accept the Pelican Exchange Limited EULA in addition to these Terms.
2. Nature of the Service
2.1 Execution-Only
The Copy Trading Service is an execution-only service. The Company does not select, recommend, or endorse any Strategy Provider or trading strategy. The Company does not provide investment advice, personalised recommendations, or portfolio management services in connection with the Copy Trading Service.
2.2 No Advisory Relationship
The relationship between a Copier and a Strategy Provider is not an advisory, discretionary management, or fiduciary relationship. A Strategy Provider is not authorised by the Company to provide investment advice to any Copier and does not act as an investment manager or financial adviser.
2.3 Automated Execution
Copy trades are executed automatically in the Copier’s account in accordance with the Copier’s selected copy settings. The Copier does not individually authorise each trade that is executed as a result of the copy relationship.
3. Strategy Provider Information and Selection
3.1 User Responsibility
The selection of a Strategy Provider is the Copier’s sole responsibility. The Company does not verify, audit, or warrant the accuracy of any information displayed in relation to a Strategy Provider, including performance history, risk ratings, biographical information, or strategy descriptions.
3.2 Performance Data
Performance statistics displayed for Strategy Providers are based on historical trading data. Past performance is not indicative of future results. A Strategy Provider who has generated positive returns historically may incur substantial losses in the future.
3.3 Strategy Provider Conduct
Strategy Providers are users of the Services and are subject to the Terms of Service and the Company’s policies. The Company does not guarantee that any Strategy Provider will trade in a consistent, disciplined, or prudent manner. Strategy Providers may change their strategy, trading style, or risk approach at any time without notice.
3.4 Conflicts of Interest
Certain Strategy Providers may receive financial incentives based on the number of Copiers following their strategy or the volume of trades generated. These incentive arrangements may create conflicts of interest between a Strategy Provider’s financial interests and the interests of Copiers. Copiers should be aware of this potential conflict when selecting Strategy Providers.
4. Copy Trading Risks
Copy trading involves a high degree of risk. Users should read the following risk disclosures carefully before using the Copy Trading Service.
4.1 Leverage and Loss Risk
Copy trades are leveraged in the same manner as directly placed trades. Losses may equal or exceed the amount allocated to copying a Strategy Provider. For further information on leverage and margin risks, please read the Leverage and Margin Policy and the Risk Disclosure Statement.
4.2 Proportional Allocation Risk
Copy trades are executed on a proportional basis relative to the Strategy Provider’s position size and the Copier’s allocated funds. Due to differences in account size and timing of trade execution, the proportion of the Copier’s account at risk on any given trade may differ from the proportion at risk in the Strategy Provider’s account.
4.3 Execution Timing Risk
Copy trades may not be executed at exactly the same time as the corresponding Strategy Provider trade, due to system latency, processing delays, or order queue management. This may result in the Copier entering or exiting a position at a different price from the Strategy Provider, which may affect the profitability of the copied trade.
4.4 Strategy Change Risk
A Strategy Provider may change their trading approach, increase risk levels, reduce activity, or close their strategy at any time. The Copier may not be aware of such changes in advance and may be exposed to unintended risks as a result.
4.5 Strategy Provider Account Closure Risk
If a Strategy Provider closes their account or ceases to be available on the platform, copying will be discontinued. Any open positions that were copied from that Strategy Provider will remain open in the Copier’s account until the Copier manually closes them, unless the platform automatically closes such positions in accordance with applicable settings.
4.6 Simultaneous Multiple Strategies Risk
Where a Copier copies multiple Strategy Providers simultaneously, the aggregate risk exposure across all copied strategies may be correlated, including where different strategies trade the same or related instruments, potentially leading to concentrated losses.
4.7 Risk of Total Loss
It is possible for a Copier to lose the entire amount allocated to copying one or more Strategy Providers. Users should only allocate to the Copy Trading Service funds they are prepared to lose in full.
4.8 Technology Risk
The Copy Trading Service is dependent on third-party technology infrastructure provided by Pelican Exchange Limited (copy-trade.io). System failures, connectivity interruptions, platform outages, or software errors may affect the ability to execute, monitor, or close copy trades. Pelican Exchange Limited expressly disclaims warranties of uninterrupted or error-free operation of its platform under its EULA.
5. Strategy Provider Terms
Persons who wish to make their trading strategies available for copying by other users (“Strategy Providers”) are subject to the following:
5.1 Registration and Eligibility
Strategy Providers must be registered users of the Services and must have completed all applicable identity verification procedures. Strategy Providers must not be prohibited from offering investment-related services in any applicable jurisdiction by virtue of any licence, regulatory, court, or disciplinary order.
5.2 No Advisory Authorisation
Strategy Providers are not licensed or authorised by the Company to provide investment advice, financial planning services, or portfolio management to any Copier. Strategy Providers must not represent themselves as investment advisers or financial professionals in connection with the Copy Trading Service, unless they hold appropriate regulatory authorisation in the relevant jurisdiction and have disclosed this to the Company.
5.3 Prohibited Conduct
Strategy Providers must not engage in:
- Market manipulation, wash trading, or any conduct designed to artificially inflate or distort their performance record
- Trading strategies designed to generate fees or incentive payments rather than genuine market returns (“fee farming”)
- The use of abusive arbitrage strategies, including latency arbitrage or price feed arbitrage, on positions that are available for copying
- Any representation or communication that guarantees returns to Copiers
Any breach of these prohibitions may result in immediate suspension of the Strategy Provider’s account and reversal of relevant transactions.
5.4 Remuneration
To the extent that the Company or Pelican Exchange Limited operates any incentive or profit-sharing arrangement for Strategy Providers, the terms of such arrangement will be communicated separately. The existence of any such arrangement must be disclosed in the Strategy Provider’s public profile.
6. Allocation and Limits
6.1 Minimum Allocation
Minimum allocation amounts for copy trading are set by the Company and displayed in the platform. The Company reserves the right to change minimum allocation requirements at any time.
6.2 Maximum Exposure
The Company reserves the right to impose limits on the maximum exposure that any user may have through the Copy Trading Service, including limits on the number of Strategy Providers that may be copied simultaneously and the maximum allocated amount per Strategy Provider.
6.3 Stopping Copy Trading
Copiers may stop copying a Strategy Provider at any time through the platform settings. Upon stopping:
- No new copy trades will be initiated from that Strategy Provider
- Open positions previously copied from that Strategy Provider will remain open unless the Copier manually closes them or elects to close them automatically as part of the stop-copy settings
The Company does not guarantee the execution price at which any open positions will be closed when a Copier elects to stop copying.
7. Third-Party Platform — Pelican Exchange Limited
The Copy Trading Service is delivered through the Pelican Exchange Limited platform (copy-trade.io), jointly operated with London & Eastern LLP.
Pelican Exchange Limited
Company No. 09437275
78 York Street, London, England
Support: support@pelicantrading.io
EULA: identity.copy-trade.io/home/terms
By using the Copy Trading Service, the user acknowledges and agrees that:
- Pelican Exchange Limited operates independently of the Company and is subject to its own EULA (governed by the laws of England and Wales), privacy practices, and service conditions, separate from and in addition to these Terms and the Company’s Terms of Service
- The Company is not responsible for any loss or damage arising from errors, outages, or decisions made by Pelican Exchange Limited or London & Eastern LLP
- The Company does not guarantee the continued availability of the Pelican Exchange Limited platform or the Copy Trading Service
- Under the Pelican EULA, Pelican Exchange Limited expressly excludes liability for indirect, incidental, or consequential loss and provides the platform on an “as is” basis without warranties
- The Company may change the third-party provider used for copy trading functionality at any time, upon notice to users
- Pelican Exchange Limited reserves the right to terminate its EULA with the Company at any time, which may result in the discontinuation of the Copy Trading Service
8. Liability
To the maximum extent permitted by applicable law, the Company is not liable for:
- Trading losses incurred as a result of copying a Strategy Provider
- Errors or delays in the execution of copy trades
- The conduct, trading decisions, or strategy changes of any Strategy Provider
- Any failure, error, or interruption of the Pelican Exchange Limited platform or London & Eastern LLP services
- Any loss arising from the Copier’s failure to monitor open positions or copied strategies
- Any matter for which liability is excluded under the Pelican Exchange Limited EULA
Nothing in this clause limits the Company’s liability for fraud, gross negligence, or any loss that cannot be excluded under applicable law.
9. Amendments
The Company may amend these Terms from time to time to reflect changes in:
- The features or functionality of the Copy Trading Service
- Applicable laws, regulations, or regulatory guidance
- Arrangements with the third-party platform provider
Material changes will be communicated to users through the Services or by email. Continued use of the Copy Trading Service following the publication of any amendment constitutes acceptance of the revised Terms.
10. Contact Information
For enquiries relating to the Copy Trading Service, please contact:
Kohle Capital Markets Limited
Email: CS@kcmtrade.com
Website: https://www.kcmtrade.com