Common use of Trading Level Clause in Contracts

Trading Level. 4.1 The Trading Level as at the Start Date shall be the US Dollar amount notified by the Manager via email to ▇▇▇▇▇▇▇▇▇@▇▇▇▇▇▇▇▇▇▇▇▇▇.▇▇▇ to be received no later than midday on the second Business Day prior to the Start Date. In setting the Trading Level, the Manager intends to utilise a leverage factor not in excess of 150 per cent of the net asset value of the Account (the “Leverage Factor”), and it agrees not to increase the Leverage Factor without the express written consent of the Trading Advisor, which consent may be withheld in the Trading Advisor’s sole discretion. 4.2 Unless otherwise instructed by the Manager, as of the last Business Day of each month (the “PnL Adjustment Date”) the Trading Advisor will estimate the realised and unrealised profit and loss on the Account since the previous PnL Adjustment Date and will adjust the Trading Level accordingly. 4.3 The Manager may amend the Trading Level as of any Business Day (an “Adjustment Date”) by sending an email to ▇▇▇▇▇▇▇▇▇@▇▇▇▇▇▇▇▇▇▇▇▇▇.▇▇▇ to be received no later than midday London time on the second Business Day prior to the Adjustment Date. Notwithstanding anything to the contrary in the immediate preceding sentence, the Trading Level will be confirmed by the Manager as of the first day of each month (the “Confirmation Date”), by the Manager sending an email to ▇▇▇▇▇▇▇▇▇@▇▇▇▇▇▇▇▇▇▇▇▇▇.▇▇▇ to be received no later than midday London time on the second Business Day prior to the Confirmation Date. 4.4 If the Trading Advisor does not receive any email in accordance with Clause 4.3, the Trading Level will remain unchanged regardless of any change in the level of actual funds deposited with the Clearing Broker or committed funds that are deposited with any other Master Fund counterparty. 4.5 The Master Fund and the Manager acknowledge that any change in the Trading Level may result in margin calls by the Clearing Broker and agree that the Master Fund shall be solely responsible for meeting any such margin calls. 4.6 The Master Fund and the Manager acknowledge that, subject to the Trading Advisor’s duty of best execution and fiduciary obligations to the Master Fund as a commodity trading advisor: (A) the Account may not gain full exposure to the Trading Level on the Start Date; (B) an amendment in the Trading Level may not be effected by the Trading Advisor on the Adjustment Date; (C) the Trading Advisor acting in good faith and in a commercially reasonable manner may reject an increase in the Trading Level upon prior notice to the Manager; and (D) the Trading Advisor acting in good faith in a commercially reasonable manner, and upon notice to the Manager, may delay a decrease in the Trading Level to a date other than the Adjustment Date under certain circumstances, including, but not limited to, ensuring that any such transactions do not in the opinion of the Trading Advisor (i) adversely affect or impact the markets or (ii) otherwise prejudice the interests of all accounts advised by the Trading Advisor. For the avoidance of doubt, the Master Fund and the Manager confirm and agree that they shall not instruct the Clearing Broker to effect a liquidation of all or a portion of the Account without the express written consent of the Trading Advisor, if practicable, such consent not to be unreasonably withheld (“Liquidation Event Notice”). Notwithstanding this Clause 4.6, the Trading Advisor will use its best efforts to effect a reduction in the Trading Level by the Manager promptly under Clause 4.3 to satisfy margin calls or comply with regulatory restrictions imposed on the Master Fund.