Registered: Jul 2012
07-27-12 05:24 PM
I inquired about Tower Hill and they sent me their Agreements. First, you must fly out and spend 2 weeks on their trading floor (your expense). Then you start with odd lots. But check this out:
-Payout at 80%, payable 60 days after the end of the month
-25% of all payout amounts will be withheld as unvested, and will vest after a period of 18 months, subject to:
The provisions of the Trader Agreement
Trader’s maintenance of a Risk-Adjusted Minimum amount of unvested pay. The Risk-Adjusted
Minimum will be calculated as the greater of $35,000 or 3x Trader’s greatest negative net P&L
(as calculated according to the above rate schedule) during any consecutive 3-day period over
the prior 12 months.
A maximum drawdown of 33% of the highest unvested balance during any quarter.
But here is the best part:
Any vested amounts shall be paid to Trader during the calendar quarter following the vest date. Notwithstanding
the above, Tower Hill, in its sole discretion, may determine to withhold payment of any vested amounts if such
payment would have a material adverse impact on the financial condition of Tower Hill or would otherwise not be in
Tower Hill’s best business or economic interest.
Are they serious???
In recognition of the training provided by Tower Hill to Trader, during the term of this Agreement and for a period of one year after this Agreement has been terminated for any reason, Trader shall not actively trade equity securities or any other related financial instrument for the proprietary account of any person or entity other than Tower Hill, nor shall Trader actively trade any account if such account has been funded or leverage has been supplied or
made available, in whole or in part, by any person or entity other than Trader.
Trader acknowledges that Tower Hill has provided, and will continue to provide, substantial and valuable training, education, and related costs to Trader including, but not limited to, training in and access to the Confidential Information. Trader further acknowledges that such activities are of considerable value to Trader, the value
of which cannot be readily quantified. As a result, Trader acknowledges that in the event that Trader breaches Section 3,
Section 4 or Section 5 of this Agreement Trader shall be liable to and shall reimburse Tower Hill for the following amounts, which are acknowledged to be in the nature of liquidated damages and not a penalty. Trader shall reimburse Tower Hill the amount of:
a. $30,000 in the event that the breach occurs within one year from the date Trader commenced trading for Tower Hill;
b. $20,000 in the event that the breach occurs between the first and second anniversaries after the date Trader
commenced trading for Tower Hill;
c. $10,000 in the event that the breach occurs between the second and third anniversaries after the date Trader
commenced trading for Tower Hill
Bottom line: They will pay you 55% in 60 days of what you can make on your odd-lot trading. Then in 18 months if they feel like it they will pay you the other 25%. And if you decide to leave you can't trade anywhere else for a year...or else you owe them $30,000!! Seriously, I am not making this up...PM me and I will email you the Agreements.