Common use of Derivative Contracts & Early Variation Events Clause in Contracts

Derivative Contracts & Early Variation Events. In the event of an Early Variation Event: 6.8.1. Cambridge may, without notice, 6.8.1.1. Terminate Client’s Facility and/or vary some/all of the terms of Client’s Facility; and/or 6.8.1.2. Trigger an earlier Margin Call for Initial Margin and/or Variation Margin, by unilaterally and immediately changing the terms of when a Margin Call is triggered; and/or 6.8.1.3. Execute forward-cap (re some or all of the Client’s Derivative Contract positions) via purchase, on Client’s behalf, of Derivative Contracts at Client’s expense & risk to mitigate both parties’ exposure to further market fluctuation. Such purchase shall trigger a final grace period of 10 Business Days for Client to bring its Cambridge account into good standing through margin payment and/or drawdown; and/or 6.8.1.4. Immediately offset and/or terminate the relevant Derivative Contract(s) and/or any other outstanding Derivative Contract(s) agreed to between the Parties without any liability to Cambridge or its representatives, and/or 6.8.1.5. Take any other steps Cambridge deems appropriate, including any actions contemplated in this Agreement to mitigate the potential Loss(es). 6.8.2. Client agrees to pay to Cambridge on demand within five (5) clear Business Days the amount of any and all Losses incurred by Cambridge in connection with the offset, termination and/or unwinding of Derivative Contract(s). 6.8.3. Where a Derivative Contract has been terminated and/or offset, Client agrees that Cambridge’s sole liability to Client is to return any amounts Client paid to Cambridge that remain after deducting all amounts owed to Cambridge. 6.8.4. Client understands and agrees that Client cannot terminate any Derivative Contract, except as contemplated in this 6.8.