Success Trader

Margin Risk Disclosure

We are furnishing this document to you to provide some basic facts about purchasing securities on margin, and to alert you to the risks involved with trading securities in a margin account. Before trading stocks in a margin account, you should carefully review the margin agreement provided by your broker.

When you purchase securities, you may pay for the securities in full or you may borrow part of the purchase price from your brokerage firm. If you choose to borrow funds, you will open a margin account. The securities purchased are the firm's collateral for the loan to you. If the securities in your account decline in value, so does the value of the collateral supporting your loan, and as a result, the firm can take action, such as issue a margin call and/or sell securities in your account, in order to maintain the required equity in the account. You can lose more funds than you deposit in the margin account. A decline in the value of securities that are purchased on margin may require you to provide additional funds to the firm to avoid the forced sale of those securities or other securities in your account. The firm can force the sale of securities in your account. If the equity in your account falls below the maintenance margin requirements under the law, or the firm's higher "house" requirements, the firm can sell the securities in your account to cover the margin deficiency. You also will be responsible for any shortfall in the account after such a sale. The firm can sell your securities without contacting you. Most firms will attempt to notify their customers of margin calls, but they are not required to do so. You are not entitled to choose which security in your margin account is liquidated or sold to meet a margin call. The firm can increase its "house" maintenance margin requirement at any time and is not required to provide you advance written notice. You are not entitled to an extension of time on a margin call.

Disclosure of Credit Terms and Policies

The disclosure of credit terms — how interest is computed, the interest charge schedule, and how the daily debit balance on your loan is determined — is provided with the Margin Agreement when you open a margin account.

Margin Schedule

Equity tier	Formula	Rate
Less than $25,000	Base Rate	8.95%
$25,000 – $49,999	Base Rate − 0.50%	8.45%
$50,000 – $99,999	Base Rate − 1.00%	7.95%
$100,000 – $249,999	Base Rate − 2.00%	6.95%
$250,000+	Base Rate − 3.00%	5.95%

As of 11/3/25 the current Base Rate is 8.95%. Base Rate is set by comparing various commercial interest rates, such as brokers' call, internal and external cost factors, and other competitive factors. The Base Rate is subject to change without notice.

Additional terms

The IRS requires Broker Dealers to treat dividend payments on loaned securities positions as a “substitute payment” in lieu of a dividend. A substitute payment is not a “qualified dividend” and is taxed as ordinary income.

Industry regulations may limit, in whole or in part, your ability to exercise voting rights of securities that have been lent or pledged to others. You may receive proxy materials indicating voting rights for a fewer number of shares than are in your account, or you may not receive any proxy materials.