Farr Holdings & Finance

1 Platform Disclaimer

This trading platform is operated by Farr Holdings & Finance. By using this platform, you acknowledge that all trading activity is conducted at your own discretion and risk.

Clem Farr and Farr Holdings & Finance are not responsible for any money lost through trading activity on this platform. You are solely responsible for your trading decisions and their outcomes.

2 Fees & Charges

2.1 Bid-Ask Spread (0.5%)

All trades on this platform are subject to a 0.5% bid-ask spread. This means:

When buying, you pay the "ask" price (0.25% above market price)
When selling, you receive the "bid" price (0.25% below market price)
This spread applies to all stocks, cryptocurrencies, and options trades
The spread fee is collected by the platform on every transaction

Example: If AAPL is trading at $150.00, you would buy at $150.375 and sell at $149.625. A round-trip trade costs approximately 0.5% of your position.

2.2 Weekly Cash Maintenance Fee (2%)

A 2% maintenance fee is applied weekly to all cash balances held in user accounts. This fee:

Is deducted automatically from your available cash balance
Does not apply to funds invested in positions
Does not apply to funds pending withdrawal
Encourages active trading and investment

3 Trading Stocks & Cryptocurrency

3.1 Buying (Long Positions)

When you buy shares, you are purchasing ownership of that asset at the current ask price. You profit when the price rises and can sell at any time to close your position and realize gains or losses.

3.2 Short Selling

Short selling allows you to profit from falling prices. When you open a short position:

You borrow shares and immediately sell them at the current bid price
100% margin of the position's notional value is required and locked
You profit if the price falls (you buy back cheaper)
You lose if the price rises (you buy back at a higher price)
Warning: Short positions have theoretically unlimited loss potential if prices rise significantly

To close a short position, you "cover" by buying back shares at the current ask price. Your margin is released and adjusted for profit/loss.

4 Options Trading

⚠️ Options are complex instruments. Please ensure you understand them before trading.

4.1 What Are Options?

Options give you the right (but not obligation) to buy or sell an asset at a predetermined "strike" price before expiration. On this platform:

Call Options profit when the underlying asset's price rises above the strike price
Put Options profit when the underlying asset's price falls below the strike price
All options are cash-settled (no actual shares change hands at expiration)
Options can be closed early at any time before expiration

4.2 Option Pricing & Time Decay (Theta)

An option's price (premium) consists of two components:

Intrinsic Value: The immediate profit if exercised now
Time Value: The "hope premium" that decays as expiration approaches

Critical: Even if the stock price doesn't move, your option loses value every single day due to time decay. OTM options will decay completely to $0 at expiration.

4.3 Writing/Selling Options (SHORT) - HIGH RISK

When you write (sell) an option:

Margin is required and locked as collateral
Losses CAN EXCEED the locked margin
Additional losses are deducted from your balance
If margin becomes insufficient, positions may be force-liquidated
Other positions may be auto-sold to cover shortfalls
NAKED CALLS HAVE UNLIMITED LOSS POTENTIAL

5 Withdrawals

When you request a withdrawal:

The requested funds are immediately locked and unavailable for trading
Withdrawal requests require administrator approval
Approved funds are released; declined requests return funds to your available balance

6 Fixed-Term Bonds

6.1 Bond Overview

Fixed-term bonds allow you to lock your funds for a predetermined period in exchange for interest. Bonds come in four credit tiers with different risk/reward profiles.

6.2 Credit Tiers

Treasury (🏛️): 0% default risk, 0.1-1.5% interest, min $1,000
Investment Grade (📊): 5% default risk, 0.4-5% interest, min $5,000
High Yield (📈): 8-20% default risk, 1-15% interest, min $10,000
Junk Bond (🎲): 15-40% default risk, 2-30% interest, min $15,000

6.3 Available Terms

Bonds are available in 1-day, 7-day, 14-day, and 30-day terms. Longer terms offer higher interest rates. 1-day bonds have lower default risk than longer terms.

6.4 Bonus Interest

Larger deposits earn bonus interest (excludes Treasury bonds):

$50,000+ deposits: +1% bonus interest
$100,000+ deposits: +2% bonus interest

6.5 Creation Fee

A 0.5% creation fee is charged when you create a bond. This fee is deducted from your balance in addition to your principal deposit.

6.6 Default Risk

Non-Treasury bonds may default at maturity. If a bond defaults, you receive only a portion of your principal (recovery rate varies by tier). Treasury bonds cannot default.

6.7 Early Withdrawal Penalties

WARNING: Withdrawing funds before maturity results in severe penalties:

Complete forfeiture of all accrued interest
A penalty of 5-40% of principal (based on amount and tier)

6.8 Acknowledgment

By creating a bond, you acknowledge that you understand the lock period, default risk, and severe penalties for early withdrawal. Bonds are designed to be held to maturity.

7 User Exchange (Player-Listed Companies)

7.1 Overview

The User Exchange allows players to list their own companies, sell shares to other players, and trade player-created stocks. This is separate from real-world stocks and operates entirely within the platform economy.

7.2 Listing a Company (IPO)

When you list a company:

A 3% platform fee is charged on the total IPO valuation upfront
You may sell up to 49% of your company at IPO
You must retain at least 51% ownership at all times
When shares sell, you receive 50% of proceeds; 50% is held as collateral

7.3 Owner Revenue Streams

As a company owner, you can profit through:

IPO Proceeds: 50% of each share sale goes to your wallet
Dividend Income: You receive dividends on your own shares
Trading Fee Share: You receive 25% of all trading fees on your stock
Stake Appreciation: Your 51%+ stake grows as the company succeeds

7.4 Dividends

If you commit to paying dividends:

Dividends are paid weekly to all shareholders (including yourself)
You can adjust dividend rates by ±25% with 7 days notice
A 2% platform fee is deducted from all dividend distributions
Missing 3 dividend payments results in liquidation

7.5 Collateral Requirements

Collateral protects investors and is required at 50% of public float value:

Collateral is automatically funded from 50% of IPO sale proceeds
If share price increases, additional collateral may be required
Collateral is not a cost — it is returned when you delist or buy back shares
24 hours of undercollateralization triggers liquidation

7.6 Trading Fees

Trading on the User Exchange incurs a 1% total fee (0.5% per side):

75% of fees go to the platform
25% of fees go to the company owner

7.7 Buyout & Delisting

To fully exit your company, you have two options:

Negotiate directly: Contact shareholders individually and agree on a price to buy back their shares through normal market orders
Forced Buyout: Use Buyout Shareholders to instantly repurchase all public shares at a 20% premium (no negotiation required)

Once all public shares are bought back (by either method), you may Delist the company and all collateral is returned.

7.8 Liquidation

Your company will be liquidated if:

You miss 3 dividend payments
You remain undercollateralized for 24 hours

Upon liquidation, collateral is distributed to shareholders and a 5% liquidation fee is charged.

7.9 Investing in Player Companies

When you buy shares in another player's company:

You may receive weekly dividends if the company pays them
You can sell shares at any time on the open market
If the company is liquidated, you receive a portion of collateral
Prices are set by supply and demand — there is no guarantee of profit

8 Fair Use Policy & Bug Reporting

8.1 Prohibited Conduct

You agree NOT to:

Exploit bugs, glitches, or errors for personal gain
Manipulate the system in ways clearly not intended by its design
Use automated tools, scripts, or bots to interact with the platform
Attempt to circumvent any platform restrictions or security measures
Collude with other users to manipulate prices or game the system

8.2 Consequences of Violations

Any trades made utilizing bugs, exploits, or system manipulation may be reversed, voided, or not honored at the administrator's sole discretion.

8.3 Obligation to Report

You have an obligation to immediately report any bugs or unexpected behavior you discover.

Welcome Back

Terms & Conditions of Use