We know that...
Examples:
Your trading account is not insured under any state or Federal insurance program or by any other entity.
You should therefore familiarize yourself with the protections accorded money or other property you
deposit for foreign currency contracts. The extent to which you may recover your money or property may
be governed by specific legislation or trading rules. Under the U.S. Bankruptcy Code, your funds may not
receive the same protections as funds used to margin or guarantee exchange-traded futures and options
contracts, which receive a priority in bankruptcy. Since that same priority has not been given to funds used
for off-exchange forex trading, in the unlikely event OANDA were to become insolvent and you have a
claim for amounts deposited or profits earned on transactions with OANDA, your claim may not receive a
priority. Without a priority, you are a general creditor and your claim will be paid, along with the claims of
other general creditors, from any monies still available after priority claims are paid. Even customer funds
that OANDA keeps separate from its own operating funds may not be safe from the claims of other general
and priority creditors.
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Disclosure Regarding Bankruptcy Protections
The transactions you are entering into with CMS are not traded on an exchange. Therefore, under the U.S. Bankruptcy Code, your funds may not receive the same protections as funds used to margin or guarantee exchange-traded futures and options contracts, which receive a priority in bankruptcy. Since that same priority has not been given to funds used for off-exchange forex trading, if CMS becomes insolvent and you have a claim for amounts deposited or profits earned on transactions with CMS, your claim may not receive a priority. Without a priority, you are a general creditor and your claim will be paid, along with the claims of other general creditors, from any monies still available after priority claims are paid. Even customer funds that CMS keeps separate from its own operating funds may not be safe from the claims of other general and priority creditors.
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We don't know that?
We had better read our account documents...
US Bankruptcy Code
US Bankruptcy Code
