How does the non-recourse loan work?
When you agree to have a portion of the purchase price financed, the company does so through the establishment of a non-recourse loan, which simply means that we take the responsibility for any deficit that may occur in your account due to unfavorable market movement. If the markets in which you are invested move against you and the equity in your account falls below minimum levels, you have the choice of adding more equity to your account or closing the transaction at a loss. Should you elect to increase the equity in your account by depositing additional funds, the total amount of the funds committed to maintaining required margin levels in your account will be at risk. However, if you decide to liquidate your account, you cannot lose more than you have already deposited.