Should I trust the negative balance protection

Hi people, I'm currently trading pepperstone markets limited which in under scb regulation.
1. Should I actually trust that Pepperstone would really protect me when there's a really blackswan event?(covering my negative balance).
2. is the Securities Commission of The Bahamas trustworthy?
3. I'm a bit worried since they reserve the right to service me negative balance protection if '
Negative Balance Protection in cases
where we reasonably consider, in our
sole discretion, that your negative
Account balance has been caused by
misconduct or market abuse. Where
this is the case, we’ll let you know why
we haven’t applied Negative Balance
Protection to your Account.''
4. Would exceeding certain amount become more dangerous?
Note: I'm not a professional client with them and I would never be. And i never take advantage of weekly gap nor the nfp/fomc

Sorry asking these questions but i know that one of the big broker back then didn't do what they promise and chasing debt from their clients.

Typically, outside the European Union or other well-established jurisdictions, negative balance protection is often offered as a goodwill gesture, if at all. So is up to the broker if it will be applied, for example if you are abusing the system with a multiple account highly likely you will be flagged.

The Bahamas jurisdiction is a well know jurisdiction, one of the most expensive ones to apply and maintain, they had a very solid banking system which is always good for corporate banking, For the retail trader perspective, local jurisdictions is always better for obvious reasons.

In the event of a black swan you will be screw anyway, if you are trading under a market execution model by the time your SL triggered and the order is filled you are gone. I never saw any reputable broker prosecuting anyone for negative balance, chances are, if your account experiences a negative balance, the broker will either reimburse the negative amount or require you to make a deposit to cover the deficit in order to continue trading with them. Most brokers have private insurances, that will cover certain amount per client,most retail traders usually don't have more 50k in their accounts, however this insurance covers the broker not the client, unless this is requirement of the jurisdiction.

Thank you for your fast reply.
Because I know when the 2015 chf crashes happen, few of the largest brokers were actually chasing their clients down(started with F and I which were the largest brokers in the world).
Could I also ask that if your negative balance actually exceeds $50k would become more dangerous?

When the Swiss Franc was no longer pegged to the Euro many brokers were busted, and filled bankruptcy, Can they chase clients to desperate recover funds? sure they can,however it's likely that it will only progress to the extent of some phone calls and emails, now imagine a broker filling court cases to each retail individual that had funds with them because they b-book their trades. It's simply not feasible.

In such a scenario, it is more likely that if you were shorting that trade, you will never get paid instead of the broker initiating legal proceedings to recover their negative balances to each retail client that 95% of cases will not have the funds anyway .

I'm thinking that they could sell the debts to local debt company to chase you, I somehow always afraid of a scenario that is somebody using sticks outside of my home. And thank you man, you words make sense.

Most top-tier regulated brokers providing leveraged products are obliged to offer negative balance protection. If their jurisdiction forces them to do so, they should not have the legal means to chase you down. Anyway, most CFD brokers are the counterparty to your trades and it's more of an opportunity cost for them if anything.

Best to be prudent and set your own stop loss to bar werdness in the market.