GODO Ltd can wipe your balance and equity if a deposit looks fraudulent to it. Clause 5(h) of the Credit Card Disclaimer lets it do that without telling you first, close every account you hold, and refuse to pay out your profit.
Why this matters
Your money can come off the screen before anyone asks you a question. The test is what the deposit looks like to GODO Ltd, so you cannot check in advance whether your payment will pass it.
Exhibit 1Every flagged clause gets its own number so you can point at this one. The number does not change, so a link to it keeps working.CriticalHow much this clause can cost you, in our reading. Critical can take your money or your profit. Warning can delay or limit it. Notice is simply worth knowing before you sign.Rarely seenHow ordinary this wording looks next to the contracts we read. This is our reading of the clause, not a count of other brokers.
The Client further acknowledges that if on the face of it any deposit seems to be fraudulent, the Company shall have the right without prior notice to do what is reasonable to mitigate the risks including, without limitation:
Our readingOur own comment on the clause, not the broker's words. Anything we quote is marked as a quotation.Most agreements let a broker freeze a suspect deposit and investigate. This one lets GODO set the whole account to nil and keep the profit, on how the payment looks to it rather than on any finding.
- Worse together with Exhibit 12Read these two clauses together. Each one costs more because the other exists.GODO can zero the account over a deposit it doubts, and the same document removes the bank dispute route you would use to get the payment back.