Common use of Margin Account Clause in Contracts

Margin Account. The Account is a Margin Account. All positions in and trades executed for the Account will be for cash settlement without any extension of credit and strictly limited in form and type to those available through the Program. The sole purpose of margin in the Account is to facilitate Betterment’s ability to sell securities and purchase other securities on behalf of Client within narrow time frames (“Substitutions”). A Substitution occurs when Betterment sells securities on behalf of Client and – after the time of trade but before settlement – uses the cash proceeds to purchase other securities. Client must deposit and maintain in cash or collateral 100% of the value of all securities held in the Account. Betterment Securities will not charge Client any interest for activity in the Account. Client and Betterment Securities further understand and agree to the following: a. Client may not engage in any day trading. A “Day Trade” is the purchasing and selling or the selling and purchasing of the same security on the same day in a margin account. However, a Day Trade does not include a long security position held overnight and sold the next day prior to any new purchase of the same security. To help ensure Client does not engage in any Day Trades, Clients are restricted from making more than one allocation change during Market Hours of each Business Day. b. If purchases or sales do not settle on schedule or for expected value as of the time of trade, Betterment Securities may sell the Assets in the Account to pay for Substitutions without prior notice to Client and at a loss or at lower prices than under other circumstances. Client remains solely liable for any deficiencies arising from such sales. Client has carefully considered Client’s own financial condition, tolerance for risk and investment objectives, as well as market conditions, before deciding to use margin account features. Betterment and Betterment Securities have made available to Client certain information relating to margin trading and before submitting the Application for a margin account and Client has had an opportunity to review this information. c. Betterment Securities can liquidate or buy any security to cover positions in the Account at any time without demand for additional funds and despite notice that Client will provide additional collateral. Betterment Securities is not obligated to notify Client of such liquidations. Betterment Securities can liquidate any and all Securities and/or other property in the Account whether carried individually or jointly with others. Betterment Securities can cancel any open orders. d. Subject to applicable laws and rules, all Assets held, carried, or maintained in the Account may be pledged and repledged by Betterment Securities from time to time, without notice to Client, either separately or in common with other customer's assets for any amount due in the Account, or for any greater amount as necessary to satisfy Client’s indebtedness, and Betterment Securities may do so without retaining into its possession or control for delivery, a like amount of assets. e. Betterment Securities has furnished to Client FINRA’s Margin Disclosure Statement attached hereto.

Margin Account. The Account is a Margin Account. All positions in and trades executed for the Account will be for cash settlement without any extension of credit and strictly limited in form and type to those available through the Program. The sole purpose of margin in the Account is to facilitate Betterment’s ability to sell securities and purchase other securities on behalf of Client within narrow time frames (“Substitutions”). A Substitution occurs when Betterment sells securities on behalf of Client and – after the time of trade but before settlement – uses the cash proceeds to purchase other securities. Client must deposit and maintain in cash or collateral 100% of the value of all securities held in the Account. Betterment Securities will not charge Client any interest for activity in the Account. Client and Betterment Securities further understand and agree to the following: a. Client may not engage in any day trading. A “Day Trade” is the purchasing and selling or the selling and purchasing of the same security on the same day in a margin account. However, a Day Trade does not include a long security position held overnight and sold the next day prior to any new purchase of the same security. To help ensure Client does not engage in any Day Trades, Clients Client and Advisor collectively are restricted from making more than one allocation change during Market Hours of each Business Day. b. If purchases or sales do not settle on schedule or for expected value as of the time of trade, Betterment Securities may sell the Assets in the Account to pay for Substitutions without prior notice to Client and at a loss or at lower prices than under other circumstances. Client remains solely liable for any deficiencies arising from such sales. Client has carefully considered Client’s own financial condition, tolerance for risk risk, and investment objectives, as well as market conditions, before deciding to use margin account features. Betterment and Betterment Securities have made available to Client certain information relating to margin trading and before submitting the Application for a margin account and Client has had an opportunity to review this information. c. Betterment Securities can liquidate or buy any security to cover positions in the Account at any time without demand for additional funds and despite notice that Client will provide additional collateral. Betterment Securities is not obligated to notify Client of such liquidations. Betterment Securities can liquidate any and all Securities and/or other property Other Property in the Account whether carried individually or jointly with others. Betterment Securities can cancel any open orders. d. Subject to applicable laws and rules, all Assets held, carried, or maintained in the Account may be pledged and repledged by Betterment Securities from time to time, without notice to Client, either separately or in common with assets of other customer's assets Betterment Securities’ customers for any amount due in the Account, or for any greater amount as necessary to satisfy Client’s indebtedness, and Betterment Securities may do so without retaining into its possession or control for delivery, a like amount of assets. e. Betterment Securities has furnished to Client FINRA’s Margin Disclosure Statement attached hereto.