Important Disclosures about Xato B.V. (“Xato”) and the Funded Trader Program
Xato’s evaluation program is rigorous and designed to verify an applicant’s risk-management discipline and strategy before any capital is allocated to the trader by Xato. Most applicants do not pass on their first attempt and there is no guarantee that an applicant’s performance will improve after the first attempt or that an applicant will pass any future evaluations after the first attempt. Prospective applicants should purchase an evaluation from Xato only if they are confident in their trading ability and accept the risk of not qualifying for a funded account. Evaluation fees are non-refundable except as expressly provided in our Terms of Use or Program Rules, or as required by applicable mandatory law.
If you pass the evaluation phase and join the funded trader program (“FTP”) with Xato, all transactions are simulated. Participants in the FTP do not own any trading account or position, and hold no beneficial or proprietary interest in Xato’s accounts, assets or trades. When a participant in the FTP submits a trade idea, Xato may, in its sole and absolute discretion, either (i) record the idea as an internal, administrative book entry and calculate a hypothetical result without routing any order externally, or (ii) accept the idea for Xato’s proprietary book and route the transaction to a market maker or exchange. Participants in the FTP have no control over, or visibility into, the method Xato selects.
Xato may receive financial incentives from third parties based on trade ideas provided by participants in the FTP. Any such revenue is retained solely by Xato and is not shared with participants in the FTP. Due to the fact that such financial incentives are not calculated towards the profit or loss of a participant in the FTP, conflicts of interest may exist between Xato and each participant in the FTP. Participants in the FTP should carefully consider these conflicts before participating. In addition, because Xato earns fees each time an applicant fails the evaluation, as well as each time an applicant repurchases an evaluation, conflicts of interest may also exist between Xato and each applicant.