CONSEQUENCES OF A CFD BEING CLOSED OUT Clause Samples

CONSEQUENCES OF A CFD BEING CLOSED OUT. (a) At the time a CFD is closed out, the Calculation Agent will calculate the profit or loss on the CFD being the difference between the Closing Value of the CFD and the Open Contract Value of the CFD. (b) If the Client makes a profit on the CFD, MFGA will pay the amount of the profit to the Client. MFGA may, in its sole discretion, set off against this payment obligation all or part of: (i) the obligation of the Client to repay Variation Margins paid by MFGA; (ii) an obligation of the Client to pay an amount to MFGA that has not been debited from the Client’s CFD Account prior to closing out the CFD; and/or (iii) an obligation of the Client to return to MFGA an amount of collateral deposited with the Client. The net payment obligation (after setting off any or all of the above obligations) is to be made in accordance with clause 9. (c) If the Client makes a loss on the CFD, the Client will pay the amount of the loss to MFGA. MFGA may, in its sole discretion, set off against this payment obligation all or part of: (i) the obligation of MFGA to return the Initial (c) If the Client has requested payment of any money ▇▇▇▇▇▇ and any Variation Margins and owed to the Client under this clause 9, MFGA will Additional Margins paid by the Client to deduct that money from the Client’s CFD Account and MFGA; and/or pay it to the Client by cheque or in such other manner as may be agreed between MFGA and the Client. If (ii) the obligation of MFGA to pay to the Client the the Client has not requested payment of any money amount (if any) standing to the credit of the so owed to the Client it will be retained in the Client’s Client’s CFD Account after closing the CFD to CFD Account. the extent that the amount does not represent (d) MFGA may set off any money owed to the Client under this Agreement or any other agreement against any The net payment obligation (after setting off any or all money owed by the Client under this Agreement or of the above obligations) is to be made in accordance any other agreement.