Client Categorisation Policy

1. Overview

In accordance with applicable financial services regulations, Vakto is required to classify all clients into one of three categories: Retail Client, Professional Client, or Eligible Counterparty. The classification determines the level of regulatory protection afforded to you and the products and services available to you. Your category is determined at the time of account opening based on an assessment of your knowledge, experience, and financial situation.

2. Retail Clients

Retail Clients receive the highest level of regulatory protection, including mandatory disclosure requirements, suitability and appropriateness assessments, negative balance protection, and margin close-out rules. Retail clients are subject to lower maximum leverage limits as set by applicable regulations. The majority of our individual clients are classified as Retail Clients. If you have not been specifically notified of a different classification, you should assume you are a Retail Client.

3. Professional Clients — Criteria

• —Quantitative criteria: you must meet at least two of the following — you have carried out significant transactions in the relevant market at an average frequency of 10 per quarter over the previous four quarters; your financial instrument portfolio exceeds €500,000; you work or have worked in the financial sector for at least one year in a professional position requiring knowledge of CFD trading.
• —Qualitative assessment: in addition to the quantitative criteria, we assess your understanding of the risks involved, your investment objectives, and your ability to bear losses.
• —Per se professionals: certain entities such as investment firms, credit institutions, insurance companies, pension funds, and national governments are automatically classified as Professional Clients.

4. Professional Client — Protections and Considerations

Professional Clients receive fewer regulatory protections than Retail Clients. Specifically: negative balance protection does not apply; higher leverage limits may be available; certain mandatory disclosure requirements are reduced; suitability assessments may be adapted. Clients should carefully consider whether the reduced protections are appropriate for their circumstances before requesting professional classification.

5. Requesting Professional Status

• —Submit a written request to: classification@vakto.com
• —Provide evidence of meeting the quantitative criteria (trading statements, portfolio valuations, or CV/employment confirmation).
• —Complete our Professional Client Assessment questionnaire.
• —Our compliance team will review your application and notify you of the decision within 5 business days.
• —Professional status applies to all products unless otherwise specified.

6. Eligible Counterparties

Eligible Counterparty status is available to qualifying entities including investment firms, credit institutions, insurance companies, UCITS funds, and pension funds acting in the capacity of an eligible counterparty. Eligible Counterparties receive the lowest level of regulatory protection. This classification is not available to individual retail or professional clients.

7. Re-Classification Requests

Clients may request re-classification to a different category at any time. A request for re-classification as a Professional Client requires meeting the applicable criteria as described above. Professional Clients may request re-classification as Retail Clients to obtain higher levels of protection — such requests will be processed within 5 business days. Vakto reserves the right to decline re-classification requests where the applicable criteria are not met.

8. Ongoing Review

We may re-assess your client classification if we become aware of information suggesting that your circumstances have changed materially. You are obligated to inform us of any changes to your financial situation, trading experience, or professional status that may affect your classification. Changes in regulatory classification requirements may also result in a revision to your classification, of which we will provide advance notice.