Terms and Conditions for Trading Options

Where you trade options, you acknowledge that:

You understand that trading options is highly speculative and contains a high degree of risk.

You acknowledge that you must be financially capable of undertaking the risks associated with the trading of options contracts and must be able to endure any Losses incurred by trading such products, including the total loss of premiums paid by you for long put and long call option positions; and the Margin Maintenance Requirements associated with short put and short call option positions; and transaction costs.

You shall comply with Long Bridge Securities' Margin Maintenance Requirements in connection with your sale of put and call options and shall not exceed the position/ exercise limits set forth by any exchange or market or by any other regulatory authority having jurisdiction.

You must acknowledge, prior to the entering of your first trade in options, to Long Bridge Securities that you have in fact read and fully understand the most up to date Options Clearing Corporation ("OCC") disclosure document “Characteristics and Risks of Standardized Options” (the "OCC Document") available here: https://www.theocc.com/Company-Information/Documents-and-Archives/Options-DisclosureDocument.

You acknowledge that option contracts are traded for a specific period of time.

Volatility, liquidity, and system failures may make execution in a particular market extremely difficult.

You understand that the Electronic Trading Services is an electronic system making it subject to unavailability.

You further acknowledge that Long Bridge Securities or clearing firm may, at their discretion, liquidate any of your positions if Account equity is not sufficient to meet Margin Maintenance Requirements; terminate your trading privileges if your losses equal or exceed the amount of Speculative Capital specified in your Account application; clearing firm may automatically exercise any put or call option that is in-the-money by .01 or more at expiration but is under no obligation to do so.

You have read and fully understand the Margin Maintenance Requirements for the trading of options contracts available on the Longbridge Platform.

Option contracts are subject to OCC rules and regulations; other regulatory bodies and the specific rules of the exchanges the contract is traded on.

Purchases of option contracts must be paid for in full at the time of purchase, meaning, option contracts may not be purchased on margin; you fully understand the Margin Maintenance Requirements for the sale of call and put options and the risks involved with such trading.

Option contracts are issued by the OCC and you must not by yourself or in concert with others violate the position and exercise limits imposed by the rules of the OCC or the specific exchange on which the contract is traded.

In the event you do not have ample equity, before the expiration of an option contract, to meet the Initial Margin requirements prescribed for the purchase or sale of the underlying security, executing broker may in its discretion liquidate the underlying security position which results from the exercise of the option contract; none of Long Bridge Securities, executing broker, and the clearing firm is under any obligation to purchase or sell the underlying security on your behalf.

You understand that the OCC assigns exercises to clearing firms such as the clearing firm and you acknowledge that, upon assignment, you shall be required: (i) in the case of an equity option, to deliver or accept the required number of shares of the underlying security, or (ii) in the case of an equity index option, to pay or receive the settlement price, in cash. You understand that you may not receive notice of an assignment from Long Bridge Securities or its clearing firm until one or more days following the date of the initial assignment by OCC to the clearing firm and that the lack of such notice creates a special risk for uncovered writers of physical delivery call stock options. You acknowledge that you have read and understand this risk as described in Chapters VIII and X of the OCC Document.

In the event there is an exercise of a long put contract that results in the short sale of the underlying product, you are responsible for the order at the time the order is placed; you acknowledge that short sales may only be executed in a Margin Account subject to Initial Margin and Margin Maintenance Requirements; prior to execution of a short sale Long Bridge Securities' clearing firm must be able to borrow the specified product (in this case only equity applies) on your behalf in order to deliver the equity to the purchaser; if the equity has been borrowed on your behalf and the lending firm subsequently issues a recall notice to the clearing firm, then Long Bridge Securities' clearing firm will attempt to re-borrow the equity on your behalf. However, if in the event the equity cannot be re-borrowed you acknowledge that Long Bridge Securities may, without notice to you, cover your short position by purchasing stock in the open market at the current market price. You shall then be held liable for all related costs incurred by Long Bridge Securities. As noted previously, the market value of short stock is treated as a debit item in your Margin Account.

The Accounts will receive and be charged the daily interest rates as posted on the Longbridge Platform; you acknowledge that these rates are subject to change without notice. These interest rates shall be charged on all Debit Balances owed to Long Bridge Securities by you and applied to all credit the clearing firm extends to you pursuant to an arrangement with Long Bridge Securities for purposes of purchasing, carrying, or trading equities and option contracts. Interest credits and dividends held in accounts are to be considered as part of a free credit balance when calculating credit interest. The interest to be calculated will be based on a 365day year utilising settlement date balances.

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