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Disclosure Document of
NeX Capital Management LLC
NeX Strategic Volatility Arbitrage (NSVA)
Managed Account Program
A Delaware Corporation registered with the
Commodity Futures Trading Commission as
a Commodity Trading Advisor.
Address: 8309 Kirkwood Drive
Corona, CA 92883
Phone: (323) 300-8771
Email: [email protected]
The Date of this Disclosure is February 8, 2016
THE COMMODITY FUTURES TRADING COMMISSION HAS NOT PASSED UPON THE MERITS OF
PARTICIPATING IN THIS TRADING PROGRAM NOR HAS THE COMMISSION PASSED ON THE
ADEQUACY OR ACCURACY OF THIS DISCLOSURE DOCUMENT.
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RISK DISCLOSURE STATEMENT
THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE
CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL
CONDITION. IN CONSIDERING WHETHER TO TRADE OR TO AUTHORIZE SOMEONE ELSE TO TRADE FOR YOU,
YOU SHOULD BE AWARE OF THE FOLLOWING: IF YOU PURCHASE A COMMODITY OPTION YOU MAY SUSTAIN A
TOTAL LOSS OF THE PREMIUM AND OF ALL TRANSACTION COSTS. IF YOU PURCHASE OR SELL A COMMODITY
FUTURES CONTRACT OR SELL A COMMODITY OPTION OR ENGAGE IN OFF-EXCHANGE FOREIGN CURRENCY
TRADING, YOU MAY SUSTAIN A TOTAL LOSS OF THE INITIAL MARGIN FUNDS OR SECURITY DEPOSIT AND ANY
ADDITIONAL FUNDS THAT YOU DEPOSIT WITH YOUR BROKER TO ESTABLISH OR MAINTAIN YOUR POSITION. IF
THE MARKET MOVES AGAINST YOUR POSITION, YOU MAY BE CALLED UPON BY YOUR BROKER TO DEPOSIT A
SUBSTANTIAL AMOUNT OF ADDITIONAL MARGIN FUNDS, ON SHORT NOTICE, IN ORDER TO MAINTAIN YOUR
POSITION. IF YOU DO NOT PROVIDE THE REQUESTED FUNDS WITHIN THE PRESCRIBED TIME, YOUR POSITION
MAY BE LIQUIDATED AT A LOSS, AND YOU WILL BE LIABLE FOR ANY RESULTING DEFICIT IN YOUR ACCOUNT.
UNDER CERTAIN MARKET CONDITIONS, YOU MAY FIND IT DIFFICULT OR IMPOSSIBLE TO LIQUIDATE A POSITION.
THIS CAN OCCUR, FOR EXAMPLE, WHEN A MARKET MAKES A "LIMIT MOVE." THE PLACEMENT OF CONTINGENT
ORDERS BY YOU OR YOUR TRADING ADVISOR, SUCH AS A "STOP- LOSS" OR "STOP-LIMIT" ORDER, WILL NOT
NECESSARILY LIMIT YOUR LOSSES TO THE INTENDED AMOUNTS, SINCE MARKET CONDITIONS MAY MAKE IT
IMPOSSIBLE TO EXECUTE SUCH ORDERS. A "SPREAD" POSITION MAY NOT BE LESS RISKY THAN A SIMPLE "LONG"
OR "SHORT" POSITION. THE HIGH DEGREE OF LEVERAGE THAT IS OFTEN OBTAINABLE IN COMMODITY INTEREST
TRADING CAN WORK AGAINST YOU AS WELL AS FOR YOU. THE USE OF LEVERAGE CAN LEAD TO LARGE LOSSES
AS WELL AS GAINS. IN SOME CASES, MANAGED COMMODITY ACCOUNTS ARE SUBJECT TO SUBSTANTIAL
CHARGES FOR MANAGEMENT AND ADVISORY FEES. IT MAY BE NECESSARY FOR THOSE ACCOUNTS THAT ARE
SUBJECT TO THESE CHARGES TO MAKE SUBSTANTIAL TRADING PROFITS TO AVOID DEPLETION OR EXHAUSTION
OF THEIR ASSETS. THIS DISCLOSURE DOCUMENT CONTAINS, AT PAGE 8, A COMPLETE DESCRIPTION OF EACH
FEE TO BE CHARGED TO YOUR ACCOUNT BY THE COMMODITY TRADING ADVISOR. THIS BRIEF STATEMENT
CANNOT DISCLOSE ALL THE RISKS AND OTHER SIGNIFICANT ASPECTS OF THE COMMODITY INTEREST
MARKETS. YOU SHOULD THEREFORE CAREFULLY STUDY THIS DISCLOSURE DOCUMENT AND COMMODITY
INTEREST TRADING BEFORE YOU TRADE, INCLUDING THE DESCRIPTION OF THE PRINCIPAL RISK FACTORS OF
THIS INVESTMENT, AT PAGE 11. YOU SHOULD ALSO BE AWARE THAT THIS COMMODITY TRADING ADVISOR MAY
ENGAGE IN TRADING FOREIGN FUTURES OR OPTIONS CONTRACTS. TRANSACTIONS ON MARKETS LOCATED
OUTSIDE THE UNITED STATES, INCLUDING MARKETS FORMALLY LINKED TO A UNITED STATES MARKET MAY BE
SUBJECT TO REGULATIONS WHICH OFFER DIFFERENT OR DIMINISHED PROTECTION. FURTHER, UNITED
STATES REGULATORY AUTHORITIES MAY BE UNABLE TO COMPEL THE ENFORCEMENT OF THE RULES OF
REGULATORY AUTHORITIES OR MARKETS IN NON-UNITED STATES JURISDICTIONS WHERE YOUR
TRANSACTIONS MAY BE EFFECTED. BEFORE YOU TRADE YOU SHOULD INQUIRE ABOUT ANY RULES RELEVANT
TO YOUR PARTICULAR CONTEMPLATED TRANSACTIONS AND ASK THE FIRM WITH WHICH YOU INTEND TO TRADE
FOR DETAILS ABOUT THE TYPES OF REDRESS AVAILABLE IN BOTH YOUR LOCAL AND OTHER RELEVANT
JURISDICTIONS. THIS COMMODITY TRADING ADVISOR IS PROHIBITED BY LAW FROM ACCEPTING FUNDS IN THE
TRADING ADVISORS NAME FROM A CLIENT FOR TRADING COMMODITY INTERESTS. YOU MUST PLACE ALL
FUNDS FOR TRADING IN THIS TRADING PROGRAM DIRECTLY WITH A FUTURES COMMISSION MERCHANT OR
RETAIL FOREIGN EXCHANGE DEALER, AS APPLICABLE. YOU SHOULD ALSO BE AWARE THAT THIS COMMODITY
TRADING ADVISOR MAY ENGAGE IN TRADING FOREIGN FUTURES OR OPTIONS CONTRACTS. TRANSACTIONS
ON MARKETS LOCATED OUTSIDE THE UNITED STATES, INCLUDING MARKETS FORMALLY LINKED TO A UNITED
STATES MARKET MAY BE SUBJECT TO REGULATIONS WHICH OFFER DIFFERENT OR DIMINISHED PROTECTION.
FURTHER, UNITED STATES REGULATORY AUTHORITIES MAY BE UNABLE TO COMPEL THE ENFORCEMENT OF
THE RULES OF REGULATORY AUTHORITIES OR MARKETS IN NON-UNITED STATES JURISDICTIONS WHERE
YOUR TRANSACTIONS MAY BE AFFECTED. BEFORE YOU TRADE YOU SHOULD INQUIRE ABOUT ANY RULES
RELEVANT TO YOUR PARTICULAR CONTEMPLATED TRANSACTIONS AND ASK THE FIRM WITH WHICH YOU
INTEND TO TRADE FOR DETAILS ABOUT THE TYPES OF REDRESS AVAILABLE IN BOTH YOUR LOCAL AND
OTHER RELEVANT JURISDICTIONS.
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Table of Contents
Introduction 4
Business Background 4
Principals 4
The Trading Program 5
The Futures Commission Merchant (FCM) 5
The Introducing Broker 5
Minimum Account Size 5
Investment Term 6
Fees 6
Additions and Withdrawals 7
Reports to Investors 7
Conflicts of Interest 7
Litigation 7
NeX and Principals Trading Interest 8
Additional Risk Factors 8-9
Past Performance 9
Consumer Privacy Policy 10-11
Enclosures: - Managed Account Agreement
- Fee Payment Authorization
- Limited Power of Attorney
- Acknowledgement of receipt of disclosure document
- Client Information
- Client Authorization for Give-Up Orders
- Letter of Commitment
- Notional Funds Letter
- Arbitration Agreement
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Introduction
NeX Capital Management LLC,
“NeX,” the “Advisor,” or the “Trading
Advisor,” is a commodity trading
advisor (CTA) and in the business of managing futures investments.
NeX Capital Management LLC is a Delaware Corporation with office(s) at 8309 Kirkwood Drive,
Los Angeles, CA 90046. NeX Capital Management's telephone number is +1 (323) 300-8771. NeX Capital
Management LLC is registered with the National Futures Association (NFA) and Commodity Futures
Trading Commission (CFTC).
All books and records are held securely at offices at 8309 Kirkwood Drive, Los Angeles, CA
90046, as well as in offsite backup systems.
NeX Capital Management LLC currently acts as CTA for managed futures accounts. The Advisor
will manage accounts for individuals, institutions, funds, or pension plans on a systematic basis utilizing
commodity futures contracts and options on futures.
Business Background
The following is a description of the business background of NeX Capital Management LLC, the
history of its trading programs, and its principals.
NeX Capital Management is a Delaware corporation originally on October 6, 2015 under the
Delaware Business Corporation Act. It became registered with the Commodity Futures Trading
Commission as a Commodity Trading Advisor in March 2016.
History of Trading Program
NeX Capital Management LLC developed the trading program with 5 years of research conducted
by the staff of NeX Capital Management LLC. The "Program" is titles NeX Strategic Volatility Arbitrage,
or "NSVA", or "The System".
The NSVA program was designed to take advantage of short-term mis-pricings in futures options
markets identified through real-time probability modeling, volatility modeling and price-discovery
techniques. The NSVA system, which is systematic and non-discretionary in nature, places minimally
directional positions across 12 different markets and manages those positions in a mechanical fashion.
Principals of NeX
Jacob A. Wohl is the sole principal and CEO of NeX Capital Management LLC. Wohl specializes
in quantitative analysis of financial markets and the exploitation of consistent mispricings in markets. Jacob
Wohl passed the Series 3 exam in 2015 in accordance with regulations set forth by CFTC/NFA/FINRA.
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Trading Objectives
NSVA Trading Program
The core objective of the NSVA trading program is to provide superior risk-adjusted returns to
clients with minimal correlation to broad stock, bond or commodity indexes. Using systematic trading
parameters, the system establishes positions within 12 future/futures options markets with two unique
objectives. The first objective of the strategy is to take advantage of short term trading of assets outside of
probabilistic price ranges. The second objective is to take advantage of the consistent overpricing of
volatility within the markets traded by the system.
NeX aims to achieve minimally correlated risk-adjusted returns for clients with the NSVA trading
program. Diversification across 12 liquid markets provides the potential for minimally correlated results
with common benchmarks such as the S&P500 Index and various bond and commodity indexes. A
systematic approach in entering and exiting trades provides a consistent exposure in the program regardless
of what discretionary opportunities may or may not be present.
The NSVA trading program systematically analyzes and trades around purely quantitative metrics
and formulas with no regards for technical or fundamental market factors. While discretionary managers
look to make judgements on the market, the NSVA trading program systematically exploits mispricings
across asset classes. The NSVA trading program has a purely systematic approach to portfolio weighting
within the 12 products traded in order to present a consistent correlation profile to the wider markets.
NeX aims to manage unit size as a cornerstone of risk-management is the same systematic way
that all other aspects of the strategy are managed. Before entering each trade, mathematical models
determine the optimal sizing for the trade in order to create the potential for the most competitive risk-
adjusted returns possible.
The Commodity Broker
The Trading Advisor has not chosen any one particular entity as its Futures Commission Merchant
or Foreign Exchange Broker (“Broker” or “Brokers” or “Brokerage firm”). The Client is free to open an
account with any Futures Commission Merchant and Foreign Exchange Broker registered with the CFTC.
Clients will not be allowed to use an Introducing Broker for managed accounts.
The Introducing Broker
NeX Capital Management LLC currently works with Optimus Futures LLC as the designated
Introducing Broker for clients. Optimus Futures LLC maintains offices) at 2701 NW 2nd Ave, Boca Raton,
FL 33431.
Minimum Account Size
The minimum investment for a managed account trading the NSVA Trading Program is $250,000.
This investment is most suitable for institutional investors, futures funds, family offices and very high net
worth individuals. The Advisor does not manage partially funded or notional accounts. Interested smaller
investors may contact NeX to explore other investment opportunities.
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Investment Term
The Advisor will manage a client's account with the objective of long-term capital appreciation.
The NSVA Program is not suitable for an investor seeking short-term results. NeX is firmly of the opinion
that the potential for a successful investment in a diversified commodity futures portfolio is directly
proportional to the amount of time the investment is allowed to work. It therefore makes the following
recommendation.
NeX strongly recommends that a client commit to a minimum term of investment of FIVE
YEARS to allow the client the best possible opportunity to participate in the full benefits of the Advisor's
trading program. The NSVA Program is long-term and this investment should only be considered by a
client who is willing and able to make a five year commitment without withdrawing funds from the
account, except to the extent of any tax liability on profits, even though the client may be strongly tempted
to do so, particularly during down periods.
The extensive research done on the NSVA trading program points out that historically the down
periods would have been the worst time to withdraw assets because the client would have then lost the
opportunity to recoup losses during the subsequent profitable periods. You should note that past
performance is not necessarily indicative of future results. Commodity trading can lead to large gains as
well as losses. Both gains and losses are reflected a part of the course of creating long-term alpha over the
course of an investment cycle with the NSVA program.
The client will always retain full control over withdrawal of his funds from his account at the
Broker. However, the client must be aware that withdrawal prior to the Advisor's recommended minimum
five- year term of investment except to pay taxes on profits is not recommended by NeX.
Fees
As compensation for advisory services, NeX Capital Management LLC charges an annual management fee
paid at the beginning of the respective investment term and an incentive fee paid at the end of each respective 12
month investment period. NeX believes that its fees are commensurate with industry norms for this type of
investment:
2.2% management fee (2.2% of Net Asset Value at account opening and on any new addition of funds to account)
17% incentive fee (17% of capital appreciation paid at the end of each 12 month investment cycle)
Any other fee arrangement must be negotiated with the advisor.
The incentive fee is paid at the end of each 12 month cycle only if the account has “Trading Profits.” The
incentive fee is 17% of Trading Profits. If the account experiences a loss after an incentive fee payment, the Advisor
will retain such payment but will receive no further incentive fee payments until the account has subsequent Trading
Profits.
Trading Profits for purposes of calculating NeX's incentive fee during the investment cycle are simply new
profits over and above the previous all time high in the account at the end of any investment cycle. Specifically,
Trading Profits shall mean the cumulative profits (over and above the aggregate of previous period profits) during
the quarter (after the deduction for all round-turn brokerage commissions and clearing charges on liquidated
positions and management fees).
Trading Profits shall include both realized and unrealized profits. To the extent any withdrawals are made
from the account when the account has a loss, such loss attributed to amounts withdrawn shall not be carried
forward to reduce future Trading Profits. If Trading Profits for a quarter are negative, it shall constitute a
"Carryforward Loss" for the beginning of the next investment cycle. No incentive fees during the term of the
advisory contract shall be payable until future Trading Profits for an ensuing quarter exceeds Carryforward Loss.
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Additions and Withdrawals
NeX Capital Management strongly recommends that assets only be added or withdrawn at month end with
a minimum three-day prior notice given to the Advisor.
Each client retains full control over his account at the Broker and has the ability to add or withdraw his
funds at any time and in any amount. However, NeX Capital Management strongly recommends that assets not be
withdrawn during the suggested minimum five year term of the investment other than at year end and only to the
extent needed to pay taxes on the profits, if any, earned through the account.
A client must be aware that making additions or withdrawals not in accordance with the Advisor's
recommendations may be grounds for immediate termination of the management of his or her account by the
Advisor without prior notice.
Reports to Investors
The Advisor's clients will receive regular reports of the initiation and liquidation of positions and monthly
reports directly from the Broker. In addition, special reports may be received periodically from NeX Capital
Management.
Conflicts of Interest
Each client of NeX Capital Management LLC can open an account with any Futures Commission Merchant
as long as NeX is consulted and provides prior approval. Approval will be based on ability to execute NeX's orders
and clear the markets in the portfolio at commensurate commission rates. NeX Capital Management LLC and its
principal(s) will not participate in any of the commissions paid to the Broker.
NeX Capital Management LLC enters all buy/sell orders at the same price for all accounts under its
management trading a given market. The Advisor thus does not anticipate a conflict of interest in which some of the
accounts under its control will hold positions opposite a client's. There may be unusual brief periods when such
"trading ahead" conflicts could exist, however, due to lack of market liquidity or unforeseen difficulties on the part
of brokers executing the Advisor's orders. Any such discrepancies between a client's account and other accounts
managed by the Advisor would be an unintentional function of trade execution, out of the Advisor's control, and
expected to be only transient in duration.
Clients should note that charging an incentive fee may provide a conflict of interest because it gives a CTA
an incentive to trade more aggressively than he might otherwise.
Litigation
There have never been any administrative, civil or criminal proceedings against NeX Capital Management
or any of its principals.
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Commodity Trading
by NeX Capital Management and Its Principals
NeX Capital Management does trade its own account with the NSVA program as well as other proprietary
trading strategies. NeX reserves the ability to trade its own account in the future. Jacob A Wohl, from time to time,
may trade for his own account. Due to the confidential nature of these records, they will not be available for
inspection by clients of NeX Capital Management LLC.
Additional Risk Factors
In addition to the risks discussed throughout the earlier parts of this document, an investor will be subject to
the following risks of losing his or her investment in the NSVA trading program:
Volatility: The markets traded may be highly volatile, resulting in large losses. Volatility may result from
any number of things including but not limited to political events, natural disasters, etc. which cannot be controlled.
The prices of the instruments traded by the Advisor have been subject to periods of excessive volatility in the past
(1987, 2008), and such periods can be expected to recur. Price movements are influenced by many unpredictable
factors, such as market sentiment, inflation rates, interest rate movements, and general macroeconomic and political
conditions. While volatility can create compelling profit opportunities for the Advisor, it can also create the specific
risk, in the case of the Advisor, that historical or theoretical pricing relationships will be disrupted, causing what
should otherwise be comparatively low risk positions to incur losses (short strangle option positions in particular).
On the other hand, the lack of volatility can result in losses for certain types of trading strategies that profit from
price movements.
Leverage: The NSVA program leverages the amount of money under management. This could result in
loss of more than the investor’s initial investment for which the investor would be financially responsible.
Liquidity: The markets traded may become illiquid, preventing exiting or entering positions. This could
result in large losses. Illiquidity may result from any number of things including but not limited to thinly traded
markets, daily price limits, etc. which cannot be controlled.
Counterparty creditworthiness: The entities with whom NeX trades may be unable to financially fulfill
their obligations, which could result in large losses.
Brokerage firm failure: The brokerage firm at which the client has his or her account may fail, resulting
in large losses Also, if a FCM breaks the law and fails to segregate client accounts, a customer may lose his money
in the event of FCM bankruptcy. Even with proper segregation, a customer may still lose his funds on deposit with
the FCM should another customer of the FCM or the FCM itself fail to satisfy deficiencies in such other customer’s
accounts.
Trading on non-U.S. commodity exchanges: Such trading does not fall within the jurisdiction of the
CFTC and, in many cases, will take place without benefit of all the detailed financial, trade practice and client
protection regulations that apply to the activities of United States exchanges and their members. Possible absence of
a strong clearinghouse to stand behind trades and to make good should a party refuse or be unable to fulfill the terms
of a contract may result in significant losses for a client. Also, not all foreign markets segregate customer funds. In
some cases, intermediaries may deal on foreign markets taking the opposite side of trades made for a client,
although acting as the client's agent, a practice that would be prohibited on United States exchanges. Furthermore,
since the Advisor will calculate its fees based on Net Assets in United States dollars, a client would be subject to the
risk of fluctuations in the exchange rate between the local currency and dollars, as well as the possibility of
exchange controls, in connection with any foreign trading.
Stop-loss Orders May Not Limit Losses: While the Advisor always use stop-loss orders to protect
positions, there can be no assurance that such orders will be executed at the prices specified and in fact limit the
losses to the intended amounts. Examples include but are not limited to: markets may open beyond stop-loss orders,
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illiquid market conditions may cause prices to move substantially beyond stop-loss orders before they are executed,
markets responding suddenly to news may cause prices to move substantially beyond stop-loss orders before they
are executed, markets may move beyond stop-loss orders and lock at the daily price fluctuation limits preventing
stop-loss order execution entirely, exchanges may halt trading for unforeseen reasons preventing stop-loss orders to
be executed.
Technology Risk: The Advisor uses many layers of technology (both “in-house” and “out-of-house”) in
order to implement its investment strategies. While the Advisor has taken precautions to ensure that these resources
will be resilient to crashes, the Advisor cannot guarantee that these resources will not experience downtime.
Interruptions in the deployment of technology resources can result in material losses for the NSVA program.
Market Disruptions: The Advisor may incur major losses in the event of disrupted markets, and other
extraordinary events that may not be consistent with historical or theoretical pricing relationships (on which the
Advisor bases a number of its trading positions). The risk of loss from a disconnect from historical or theoretical
prices may be compounded by the fact that in disrupted markets many positions become illiquid, making it difficult
or impossible to close out positions which the markets are moving. The financing available to the Advisor from its
banks, dealers, and other counterparties is typically reduced in disrupted markets. Consequently, enhanced risks
apply during such events, which may include unexpected political, military, terrorist, natural disaster related and
geopolitical events. Such events can result in otherwise low-risk strategies performing with unprecedented volatility
and risk. A financial exchange may from time to time suspend or limit trading. Such a suspension could render it
difficult or impossible for the Advisor to liquidate affected positions and thereby expose it to losses. There is also no
assurance that non-exchange markets will remain liquid enough for the Advisor to close out positions.
Model Risk: The Advisor may incur major losses in the event of disrupted markets, and other
extraordinary events that may not be consistent with historical or theoretical pricing relationships (on which the
Advisor bases a number of its trading positions). The risk of loss from a disconnect from historical or theoretical
prices may be compounded by the fact that in disrupted markets many positions become illiquid, making it difficult
or impossible to close out positions which the markets are moving. The financing available to the Advisor from its
banks, dealers, and other counterparties is typically reduced in disrupted markets. Consequently, enhanced risks
apply during such events, which may include unexpected political, military, terrorist, natural disaster related, and
geopolitical events. Such events can result in otherwise low-risk strategies performing with unprecedented volatility
and risk. A financial exchange may from time to time suspend or limit trading. Such a suspension could render it
difficult or impossible for the Advisor to liquidate affected positions and thereby expose it to losses. There is also no
assurance that non-exchange markets will remain liquid enough for the Advisor to close out positions.
NSVA Program, Past Results
NeX Capital Management LLC presents strong belief in the validity and effectiveness of the principles and
practices implemented within the NSVA program for the specific objectives set forth for the program. No live
trading results are admissible within the purview of this document. The NSVA program has been extensively back-
tested and researched to ensure that the concepts executed within the strategy are effective in creating superior risk-
adjusted returns for investors with minimal correlation to broad stock, bond or commodity indexes and benchmarks.
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Consumer Privacy Policy
Your Privacy is Our Priority at NeX Capital Management,
NeX is committed to safeguarding the personal information that you provide us. This Privacy Policy describes how
we handle and protect personal information we collect about individuals, such as you, who apply for or receive our
products and services. The provisions of this notice apply to former customers as well as our current customers.
Why and How We Collect Personal Information?
When you apply for or maintain an account with NeX, we collect personal information about you for business
purposes, such as evaluating your financial needs, processing your requests and transactions, informing you about
products and services that may be of interest to you, and providing customer service. The personal information we
collect about you includes:
Information you provide to us on applications and other forms, such as your name, address, date of birth, social
security number, occupation, assets, and income;
Information about your transactions with us and with our affiliates; and
Information we receive from consumer reporting agencies, such as your credit history and creditworthiness, and
other entities not affiliated with NeX;
Information you provide to us to verify your identity, such as a passport, or received from other entities not
affiliated with NeX.
How We Protect Personal Information?
We limit access to your personal information to those employees who need to know in order to conduct our
business, service your account, and help you accomplish your financial objectives, such as providing you with a
broad range of products and services. Our employees are required to maintain and protect the confidentiality of your
personal information and must follow established procedures to do so. We maintain physical, electronic, and
procedural safeguards to protect your personal information. We do not rent or sell your name or personal
information to anyone. Sharing Information with Our Affiliates We may share personal information described above
with our affiliates for business purposes, such as servicing customer accounts and informing customers about new
products and services, and as permitted by applicable law. The information we share with affiliates for marketing
purposes may include the information described above, such as name, address and account information, but will not
include other credit information, such as credit history appearing on a consumer credit report or net worth and
income information appearing on applications for our products and services. Disclosure to Non-Affiliated Third
Parties In order to support the financial products and services we provide to you, we may share the personal
information described above with third-party service providers and joint marketers not affiliated with us, including:
financial service institutions (e.g., advisers, dealers, brokers, trust companies and banks) with whom we have joint
marketing agreements, such as agreements to market financial services or products that we jointly offer, endorse or
sponsor; and
Companies under contract to perform services for us or on our behalf, such as vendors that prepare and mail
statements and transaction confirmations or provide data processing, computer software maintenance and
development, transaction processing and marketing services.
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These companies acting on our behalf are required to keep your personal information confidential. Also, we
may disclose personal information with non-affiliated companies and regulatory authorities as permitted or required
by applicable law. For example, we may disclose personal information to cooperate with regulatory authorities and
law enforcement agencies to comply with subpoenas or other official requests, and, as necessary, to protect our
rights or property. Except as described in this privacy policy, we will not use your personal information for any
other purpose unless we describe how such information will be used at the time you disclose it to us or we obtain
your permission to do so.
Accessing and Revisiting Your Personal Information
We endeavor to keep our customer files complete and accurate. We will give you reasonable access to the
information we have about you. Most of this information is contained in account statements that you receive from us
and applications that you submit to obtain our products and services. We encourage you to review this information
and notify us if you believe any information should be corrected or updated. If you have a question or concern about
your personal information or this privacy notice, please contact your NeX representative.
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Managed Account Agreement
THIS MANAGED ACCOUNT AGREEMENT FOR ADVISORY SERVICES is made and entered into this ______
day of ____________, 20___, by and between NeX Capital Management, LLC, hereinafter referred to as the
“Advisor” or the “Trading Advisor” and _________________________________, hereinafter referred to as the
“Client”.
This Agreement is Entered into Based upon the Following Representations
The Client represents that he has speculative capital for the principal purpose of investing in futures
contracts and options on futures contracts (“Investments”) and has been informed and is fully cognizant of the
possible high risks associated with such investments. The Client represents, warrants and agrees that: (a) All of the
information contained in this Agreement is true, correct and complete as of the date hereof and since Advisor is
relying thereon undersigned will promptly notify the Advisor of any changes herein; (b) The trading in Investments
is within the power of the Client and such activity will in no way contravene the provisions of any statutes, rules or
regulations, judgments, orders or decrees or agreements to which the Client is bound or subject; (c) if Client is a
corporation, limited partnership, or limited liability company, it is duly organized and in good standing under the
laws of the state of its formation and every state in which it does business; (d) The actions of the authorized person
designated on the Agreement to act for the Client has been authorized by all necessary or appropriate corporate
actions if applicable, such person has full authority to execute this Agreement and all related documents on behalf of
the Client and to act for Client in all matters regarding Client’s account(s) and Advisor may at all times rely on the
fact of such authority without any duty to investigate into either the authenticity or extent thereof; (e) If applicable,
Client will confirm the matters contained in part (d) of this paragraph by supplying the Advisor, within a reasonable
time, prior to the commencement of trading, with an executed copy of resolutions of the Board of Directors of Client
in a form prescribed by the Advisor; (f) If Client is a partnership corporation, limited partnership, or limited liability
company, such entity has express authority to speculate in Investments; and (g) Client has never been suspended or
barred from trading by the CFTC or any predecessor agency or any other federal or state regulatory agency or any
exchange or trade association, and Client undertakes to notify the Advisor of any change in such status within two
(2) business days of any such change. This agreement is for the following managed trading program and related
advisory fees as described in NeX Capital Management, LLC’s Commodity Trading Advisor Disclosure Document,
which is incorporated herein by reference.
It is Mutually Agreed That
1. The Client shall execute any and all documents for the purpose of opening a trading account with
Wedbush Securities (“Broker”), a Futures Commission Merchant (“FCM”). The Client shall deposit cash and/or
securities in the amount of $________________________, to be traded pursuant to the Advisor’s Program as
described in the Advisor’s Commodity Trading Advisor Disclosure Document. The Client hereby instructs the
Advisor to trade the Client’s account at a nominal level of $_________________. Upon Client depositing funds into
the managed account the “12 month investment cycle” begins, as stated the Advisor’s Disclosure Document.
2. As compensation for advisory services, the Advisor will receive a management fee of _______%
(_____% annually) of the Net Assets (as defined in the Advisor’s Disclosure Document) in the Client's account at
the beginning of each 12 month investment cycle, or when new funds are deposited into the account managed by the
Advisor. In addition, the Advisor will receive ________% of the Net New Profits (as defined in the Advisor’s
Disclosure Document) the Advisor generates in the Client’s account on an Annual basis, or at the end of each 12
month investment cycle.
3. The Advisor will trade the Investments and will have the exclusive authority to issue all necessary
instructions to the Broker. All such transactions shall be for the account and risk of the Client.
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NeX Capital Management LLC Client initials___________
4. The Advisor will seek capital appreciation in the Client’s Account by trading speculatively in
the Investments.
5. The Advisor’s services are not rendered exclusively for the Client, and the Advisor shall be free
to render similar services to others.
6. This Agreement shall remain in effect until terminated by the receipt of written notice of either
party to the other. The Advisor or Client may terminate this Agreement for any reason upon such notice.
Upon termination of this agreement, the open positions and subsequent management of the Account shall
be the sole responsibility of the Client.
7. The Client agrees to immediately notify the Advisor orally and in writing if the Client is
dissatisfied with the Advisor’s decisions or actions. Written notification of any such complaints should be
sent to the Advisor within ten (10) business days of the event or transaction which lead to the complaint.
Failure on the part of the Client to provide such notification will be deemed to be the Client’s acquiescence
and ratification of the Advisor’s conduct.
8. The Advisor’s recommendations and authorizations shall be for the Account and risk of the
Client. The Advisor makes no guarantee that any of its services will result in a profit to the Client. The
Client has discussed the risks of the futures trading with the Advisor and understands those risks. The
Client assumes the responsibility of losses that may be incurred.
9. The Client agrees to execute a “Limited Power of Attorney” attached hereto authorizing the
Advisor to enter orders for the Investments for the Client’s Account. The Client also agrees to execute any
similar document provided by the Broker to allow the Advisor to enter trades on behalf of the Client.
10. The Client agrees to execute a “Fee Payment Authorization” enabling the Broker to make
payments from the Client’s Account to the Advisor in compensation for services as set forth in this
agreement. The Client also agrees to execute any similar document provided by the Broker to allow such
payments to the Advisor to be made.
11. The Client acknowledges that he has read a copy of the Advisor’s most current Disclosure
Document, including the Risk Disclosure Statement. The Advisor makes no guarantee that any of its
services will result in a gain for the Client. The Advisor will not be liable to the Client or to others except
by reason of acts constituting willful malfeasance or gross negligence as to its duties herein, and disclaims
any liability for human or machine errors in orders to trade or not to trade Investments.
12. In the event that any provisions of this Agreement are invalid for any reason whatsoever, all
other conditions and provisions of the Agreement shall, nevertheless, remain in full force and effect.
13. By depositing funds with the Broker, the Client acknowledges and accepts the propriety of the
Advisor’s trading program and his suitability to bear the economic risk of loss in trading in the
Investments.
14. This Agreement constitutes the entire agreement between the parties, and no modification or
amendments of this Agreement shall be binding unless in writing and by the participants hereto.
15. The Client acknowledges that should Client’s account become underfunded, trading profits
and losses on a percentage basis will be greater than if the account were fully funded and that additional
capital may be required to maintain trading positions.
16. The Client agrees to bring any judicial action, including any complaint, counterclaim, cross
claim, third party complaint or any arbitration proceeding, arising directly or indirectly in connection with
this Agreement or any transaction covered herein or against the Advisor or any person who is an officer,
agent, employee or associated person of the Advisor at the time the cause of action arises, only in courts or
before arbitrators located within Los Angeles, California, unless the Advisor voluntarily in writing
14
NeX Capital Management LLC Client initials___________
expressly submits to another jurisdiction. In the event that the Client brings any judicial action or any
arbitration proceedings against the Advisor, or any person who is an officer, agent, employee, or associated
person of the Advisor, in a court or before arbitrators not located within Los Angeles, California, the
undersigned agrees to transfer the action to a court or before arbitrators in Los Angeles, California. Client
agrees that any hearing held by the Commodity Futures Trading Commission pursuant to its reparations
procedures shall be heard, upon the election of the Advisor, only in Los Angeles, California. Client also
consents and submits to the jurisdiction of any state or federal court located within Los Angeles, California.
This agreement shall be governed by and construed in accordance with the laws of the State of Delaware.
17. The strategies implemented by the Advisor include products such as futures, options on
futures, cash settled index options, and others included under what is considered an exchange traded, cash
settled products. Exchange protocols for these assets imply that the ease of selling short such assets is the
same as buying long such assets. This protocol precludes the use of asset lending and all fees, liquidity
considerations, and interest payments associated with such trading commonly associated with other types
of assets.
18. Client hereby acknowledges, represents and warrants to, and agrees with Advisor, as follows:
(a) Client Assets. Client is the sole owner of all assets in the Account and (i) there are no restrictions on the
transfer, sale or public distribution of any such assets and (ii) no option, lien, charge, security or encumbrance
exists over such assets, except as disclosed to Advisor in writing.
(b) Authority. The Client has full authority and power to engage Advisor under the terms and conditions of this
Agreement, and such engagement does not violate Client’s constituent documents, any other material agreement,
order or judgment of any court or governmental authority, or any law applicable to Client. Client further represents
that all investments permitted herein are within its power to enter into and have been duly authorized.
(c) Authorized Persons. Any individual whose signature is affixed to this Agreement on Client’s behalf has full
authority and power to execute this Agreement on Client’s behalf. The Client shall promptly notify Advisor in
writing of any event that could reasonably be anticipated to affect any such individual’s authority under this
Agreement.
(d) Notice of Certain Events. Client will promptly notify Advisor in writing of any occurrence that results, or
threatens to result, in any representations by Client contained in this Agreement becoming inaccurate, false,
misleading or incomplete.
19. . Responsibility for Expenses. In addition to the Management Fee and Performance Fee Client shall
be responsible for all customary expenses related to the Account or the trading assets of the Account,
including, but not limited to, interest on margin borrowing, Brokerage commissions, Broker and bank service
and account fees, charges and expenses, and interest on Account-related loans and debit balances.
20. Nothing in this Agreement shall be deemed to limit or restrict Advisor’s right, or the right of any of
its officers, directors or employees, to engage in any other business or to devote time and attention to the
management or other aspects of any business, whether of a similar or dissimilar nature, or to render investment
advisory services or services of any kind to any other corporation, firm, association or individual. Client
understands that Advisor provides investment advisory services to numerous other clients and accounts.
Client also understands that Advisor may give advice and take action with respect to any of its other clients
or for its own account which may differ from the timing or nature of action taken by Advisor with respect to
the Account. Nothing in this Agreement shall impose upon Advisor any obligation to purchase or sell or to
recommend for purchase or sale, with respect to the Account, any Investment which Advisor, or its affiliates,
or its or their shareholders, directors, officers or employees may purchase or sell for its or their own account(s)
or for the account of any other client.
21. Liability of Advisor. Except as may otherwise be provided by law, Client specifically agrees that
Advisor shall not be liable for: (a) any loss that Client may suffer by reason of any investment decision made
15
NeX Capital Management LLC Client initials___________
or other action taken or omitted in good faith and with that degree of care, skill, prudence and diligence under
the circumstances then prevailing that a prudent person acting in a like capacity would use in the conduct of
an enterprise of a like character and with like aims; (b) any act or failure to act by any Broker or other person
with whom Advisor or Client may deal in connection with the subject matter of this Agreement; or (c) any
loss or failure or delay in performance of any obligation under this Agreement arising out of or caused, directly
or indirectly, by circumstances beyond Advisor’s reasonable control, including, without limitation, acts of
God, earthquakes, fires, floods, wars, terrorism, civil or military disturbances, sabotage, epidemics, riots,
interruptions, loss or malfunctions of utility, computer software or hardware, transportation or communication
service, accidents, labor disputes, acts of civil or military authority, governmental actions and inability to
obtain labor, material, equipment or transportation.
22. Brokerage. Where Advisor places orders, or directs the placement of orders, for the purchase or sale
of Investments for the Account, in selecting Brokers or dealers to execute such orders, Advisor is expressly
authorized to consider, among other factors, the fact that a Broker or dealer has furnished statistical, research
or other information or services which enhance Advisor’s investment research and portfolio management
capability generally. It is further understood in accordance with Section 28(e) of the Securities Exchange Act
of 1934, as amended, that Advisor may negotiate with and assign to a Broker a commission which may exceed
the commission which another Broker would have charged for effecting the transaction if Advisor determines
in good faith that the amount of commission charged was reasonable in relation to the value of Brokerage and
research services (as defined in Section 28(e)) provided by such Broker, viewed in terms either of the Account
or Advisor’s overall responsibilities to Advisor’s discretionary accounts. Nothing herein shall preclude the
aggregation or “bunching” of orders for the sale or purchase of Investments in the Account with other accounts
managed by Advisor. With respect to the allocation of trades, Advisor shall not favor any account over any
other and purchase or sale orders executed contemporaneously shall be allocated in a manner it deems
equitable among the accounts involved.
23. Confidential Relationship. Each party agrees that all nonpublic confidential information concerning
the other party which may become available to such party in connection with services, transactions or
relationships contemplated in this Agreement shall at all times be treated in strictest confidence and shall not
be disclosed to third persons except as (a) may be required by law or regulatory authority, including but not
limited to any subpoena, administrative, regulatory or judicial demand or court order, (b) as otherwise set
forth in this Agreement, or (c) upon the prior written approval of the other party to this Agreement. Client
authorizes Advisor to disclose average performance statistics of all accounts under management for the
purposes of public disclosure with no dissemination of the client’s individual information of any form. This
information shall only include the average performance of accounts under receiving services from NeX
Capital Management LLC and the total amount of assets held within accounts managed by NeX Capital
Management LLC.
24. Reports and Invoices. Advisor shall send to Client an unaudited report of the Account’s activity on a
monthly basis (including the gains and losses in the Account, the Asset Value of the Account, and the
Performance Fee, if any, owed to the Advisor for such Performance Period). Payment of any Management
Fee or Performance Fee is due to Advisor within (30) days of being issued at the end of each investment
quarter (e.g. last day of March, June, September, December). If the management is not paid to NeX Capital
Management LLC within (30) days of being issued than the payment shall be deducted directly from Client’s
managed account.
25. Tax Issues. Client may have an economic and taxable gain or loss when Investments are sold or
redeemed. Distributions may be taxable as ordinary income. Client is responsible for all tax liabilities arising
from transactions in the Account, for the adequacy and accuracy of any positions taken on your tax returns,
for the actual filing of Client’s tax returns, and the remittance of tax payments to taxing authorities. Tax laws
and regulations change frequently and their application can vary widely based on the specific facts and
circumstances involved. Please consult your own tax adviser regarding your specific tax situation. Client
understands that Advisor may buy and sell Investments held in the Account fairly often and that each purchase
16
NeX Capital Management LLC Client initials___________
and sale may be a taxable event for Client. Any securities Advisor permits Client to deposit, transfer, or
contribute into the Account that Advisor does not elect to retain may be sold at any time after contribution.
Advisor does not offer tax advice and does not actively manage for alternative minimum taxes; state or local
taxes; foreign taxes on non-U.S. investments; or estate, gift, or generation-skipping transfer taxes.
26. Acknowledgment of Investment Risk. Notwithstanding any provision herein to the contrary, Client
understands that the value of investments made for the Account may go down as well as up and is not
guaranteed. Client agrees that Advisor has not made and is not making any guarantees, including without
limitation a guarantee as to any specific level of performance of the Account. Client further understands and
acknowledges that investment decisions made on behalf of Client’s Account by Advisor are subject to various
market, currency, economic, and business risks as well as the risk that those investment decision will not
always be profitable. Client acknowledges that past performance results achieved by accounts supervised or
managed by Advisor are not indicative of the future performance of the Account.
27. Independent Contractor. Advisor is and will hereafter act as an independent contractor and not as an
employee of Client, and nothing in the Agreement may be interpreted or construed to create any employment,
partnership, joint venture or other relationship between Advisor and Client.
28. Termination; Survival. This Agreement may be terminated by either party upon forty-five (45) days’
written notice (whether by email or other written means) to the other party. Such termination will not,
however, affect the liabilities or obligations of the parties under this Agreement arising from transactions
initiated prior to such termination. Sections 6, 10, 12, 13, 20 and 21 shall survive the termination of this
Agreement. Upon any termination of this Agreement, Advisor shall have no further obligations hereunder,
provided that: (a) any liability under this Agreement of one party to the other shall survive and remain in full
force and effect, notwithstanding such termination, with respect to any claim or matter on which either of the
parties has given the other written notice prior to such termination (except that Advisor may render to Client
a statement of fees due Advisor through the date of termination after such date), until such liability has been
finally settled; (b) Advisor retains the right to complete any transactions open as of the termination date and
to retain amounts in the Account sufficient to effect such completion; and (c) Advisor shall be entitled to its
fees and expenses, pro-rated to the date of termination. Upon termination, it shall be Client’s exclusive
responsibility to issue instructions in writing regarding any assets in the Account.
This Agreement shall automatically terminate in the event of (a) the death of both Matthew Johnson and Jacob
Wohl or (b) an adjudication in a final non-appealable decision on the merits of a court of competent
jurisdiction that both Matthew Johnson and Jacob Wohl are physically or mentally incapable of making
investment decisions on behalf of the Client. In the event of such automatic termination, Client Investments
may be redeemed within forty-five (45) days, with all positions being closed at no additional cost to Client.
29. Assignment. This Agreement may not be assigned, in whole or in part, by Advisor without the prior
written consent of Client. Subject to the preceding sentence, Advisor may delegate all or part of its duties
under this Agreement to any affiliate.
30. Communications. All reports and other communications required hereunder to be in writing shall be
delivered in person or sent via mail or electronic mail.
31. Governing Law; Venue. This Agreement shall be governed by and construed and enforced in
accordance with the laws of the United States and with the laws of the State of Delaware without giving effect
to the choice of law or conflict of law provisions thereof. The parties hereby consent to jurisdiction and venue
in the federal and state courts located in Los Angeles, CA.
32. Entire Agreement; Modification. This Agreement: (a) sets forth the entire understanding of the parties
with respect to the subject matter hereof; (b) supersedes any and all previous agreements, understandings and
communications, oral or written, regarding this subject matter; and (c) may not be modified, amended, or
waived except by a specific written instrument duly executed by the party against whom such modification,
17
NeX Capital Management LLC Client initials___________
amendment, or waiver is sought to be enforced. In the event of any conflict or inconsistency with this
Agreement and any instructions or investment guidelines that are not made part of this Agreement or any
investment policy statement, this Agreement will control.
33. Headings. The headings of the sections of this Agreement are for convenience of reference only and
will not affect the meaning or operation of this Agreement. As used herein, references in the singular shall,
as and if appropriate, include the plural.
34. Counterparts. This Agreement may be executed in any number of counterparts, each of which will
be deemed an original, but all of which together will constitute one and the same instrument.
35. Severability. In the event that any provision of this Agreement is deemed to be void, voidable, illegal,
or invalid for any reason, such provision will be of no force and effect only to the extent that it is so declared
void, voidable, illegal, or invalid. All of the provisions of this Agreement not specifically found to be so
deficient will remain in full force and effect.
36. Liquidations and Withdrawals. Client may liquidate up to 50% of the net asset value of the managed
account with no penalty due to the Management Company. In order to liquidate more than 50% of the net
asset value of the managed account, Client shall provide (45) days written notice (via electronic email or by
other written means) to the Management Company. If Client shall liquidate greater than 50% of the net asset
value of the account without providing (45) days written notice, then Client shall be subject to a 1% fee of
the net asset value of the managed account payed to the Management Company.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and
year first written above.
___________________________________________
Account Name
_______________________________ _______________________________ __________
Client’s Signature Print Name and Title Date
_______________________________ _______________________________ __________
Client’s Signature Print Name and Title Date
*Note: If a joint account or general partnership, all persons must sign.
If this is a limited partnership account, the general or managing partner(s) must sign.
Accepted:
NeX Capital Management LLC
By: __________________________ Date: _________
Name: Jacob Wohl Title: Manager
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NeX Capital Management LLC Client initials___________
Fee Payment Authorization
TO BROKERAGE FIRM: Wedbush Securities
ADDRESS: 1920 E Maple Ave, El Segundo, CA 90245
CITY AND STATE: El Segundo, CA
The undersigned hereby agrees to the following:
1. As compensation for its advisory services, the Commodity Trading Advisor, NeX Capital Management,
LLC
(“the Advisor”), will charge management and incentive fees which will be debited directly from Client’s
trading account.
2. Client authorizes the above named carrying brokers to debit Client’s account and pay to the Advisor the
fees referenced above.
3. Client holds the carrying broker harmless and indemnifies the Clearing Broker from any losses arising out
of payment of such fees to the Advisor.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first
written above
___________________________________________
Account Name
_______________________________ _______________________________ __________
Client’s Signature Print Name and Title Date
_______________________________ _______________________________ __________
Client’s Signature Print Name and Title Date
*Note: If a joint account or general partnership, all persons must sign.
If this is a limited partnership account, the general or managing partner(s) must sign.
Accepted:
NeX Capital Management LLC
By: __________________________ Date: _________
Name: Jacob Wohl Title: Manager
19
NeX Capital Management LLC Client initials___________
Limited Power of Attorney
TO BROKERAGE FIRM: Wedbush Securities
The undersigned hereby authorizes NeX Capital Management, LLC, a Commodity Trading Advisor
(“Advisor”), as his agent and attorney-in-fact to buy and sell (including “short” sales) commodity futures on
margin and options thereon or otherwise for the undersigned’s account and risk including the purchase and
sale of U.S. Treasury Bills and investments in money market funds accounts. The undersigned hereby agrees
to indemnify and hold the brokerage firm harmless from all loss, cost, indebtedness and liabilities arising
there from. In all such purchases and sales, you are authorized to follow the instructions of the aforesaid agent
in every respect concerning the undersigned’s account with you; and except as herein otherwise provided, the
Advisor is authorized to act for the undersigned in the same manner and with the same force and effect as the
undersigned might or could do with respect to such purchases and sales as well as with respect to all other
things necessary or incidental thereto, except that the Advisor is not authorized to withdraw any money,
securities, or other property either in the name of the undersigned or otherwise other than in conjunction with
payment of fees owed to the Advisor. The undersigned hereby ratifies and confirms any and all transactions
with you heretofore or hereafter made by the aforesaid agent on behalf of or for the account of the
undersigned. This authorization and indemnity is in addition to (and in no way limits or restricts) any rights
which you may have under any other agreement to agreements between you and the undersigned. This
authorization and indemnity is a continuing one and shall remain in full force and effect until revoked by the
undersigned by a written notice addressed to you and delivered to you at the above address, but such
revocation shall not affect any liability in any way resulting from transactions initiated prior to such
revocation. This authorization and indemnity shall inure to your benefit and that of your successors and
assigns.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first
written above
___________________________________________
Account Name
_______________________________ _______________________________ __________
Client’s Signature Print Name and Title Date
_______________________________ _______________________________ __________
Client’s Signature Print Name and Title Date
*Note: If a joint account or general partnership, all persons must sign.
If this is a limited partnership account, the general or managing partner(s) must sign.
Accepted:
NeX Capital Management LLC
By: __________________________ Date: _________
Name: Jacob Wohl Title: Manager
20
NeX Capital Management LLC Client initials___________
Acknowledgement of Receipt of NeX Capital Management, LLC’S Commodity
Trading Advisor Disclosure Document
To Whom It May Concern:
This is to acknowledge that I have received a copy of the Disclosure Document of Strat Asset Management,
LLC, Commodity Trading Advisor, dated February 8, 2013, describing the trading program pursuant to which
my account will be directed.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first
written above
___________________________________________
Account Name
_______________________________ _______________________________ __________
Client’s Signature Print Name and Title Date
_______________________________ _______________________________ __________
Client’s Signature Print Name and Title Date
*Note: If a joint account or general partnership, all persons must sign.
If this is a limited partnership account, the general or managing partner(s) must sign.
Accepted:
NeX Capital Management LLC
By: __________________________ Date: _________
Name: Jacob Wohl Title: Manager
21
NeX Capital Management LLC Client initials___________
Client Information National Futures Association Compliance Rule 2-30 requires commodity trading advisors to request information
about each individual client’s occupation, estimated annual income, net worth and previous investment experience
before opening a managed futures account. If the account is opened by someone other than an individual (example,
corporation), this information is not required to be completed.
Type of Account:
Individual _________ Corporate _______________
Joint ______________ Other __________________
Client’s Full Name: _________________________________________
Client’s Address: ___________________________________________
___________________________________________
Telephone # ___________________________________________
Client’s Principal Occupation or Business: _________________________
Client’s Age:___________________
Client’s Estimated Annual Income: _______________________________
Client’s Net Worth: _________________
(the excess of assets over liabilities, exclusive of home, furnishings and automobiles)
Number of Dependents: ______________
Investment Experience:
Stocks/Bonds: Yes____ No____ # of Years _____________
Mutual Funds: Yes____ No____ # of Years _____________
Options: Yes____ No____ # of Years _____________
Commodities: Yes____ No____ # of Years _____________
Commodity Pools: Yes____ No____ # of Years _____________
22
NeX Capital Management LLC Client initials___________
Client Authorization for “Give-Up” Orders The undersigned Client(s) authorizes NeX Capital Management, LLC (“NeX”) to execute orders on behalf
of the Client’s account on a “Give-Up” basis. NeX shall have the authority to designate the FCM or Floor Broker
who will act as Executing Broker for trades entered into the market on behalf of the Client’s account. The Executing
Broker will “Give-Up” the orders to the Client’s Clearing Broker, for the Client’s account held at the Clearing
Broker. The Clearing Broker will be acting as the carrying broker and will carry these positions.
The Client understands that the Executing Broker will charge fees for “Give-Up” orders to the Clearing
Broker. The Client agrees that in some cases the Clearing Broker will have to be reimbursed by the Client’s
account held at the Clearing Broker. The Client authorizes NeX to enter into all arrangements on the Client’s
behalf, which are necessary or appropriate in the judgment of NeX to carry out the obligations of NeX in
setting-up and executing the “Give-Up” order process. The Client authorizes NeX to negotiate any such
agreements up to, but not in excess of, “Give-Up” charges amounting to $22.00 per half round turn trade. The
Client must approve any charges in excess of this amount.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first
written above
___________________________________________
Account Name
_______________________________ _______________________________ __________
Client’s Signature Print Name and Title Date
_______________________________ _______________________________ __________
Client’s Signature Print Name and Title Date
*Note: If a joint account or general partnership, all persons must sign.
If this is a limited partnership account, the general or managing partner(s) must sign.
Accepted:
NeX Capital Management LLC
By: __________________________ Date: _________
Name: Jacob Wohl Title: Manager
23
NeX Capital Management LLC Client initials___________
Letter of Commitment The undersigned hereby acknowledges that the undersigned has committed money, securities or other tangible
property ("Funds") in the total amount of $_______________________, to a managed account trading program
directed by NeX Capital Management, LLC (“NeX”), a registered Commodity Trading Advisor (“CTA”). Of this
amount, $ ___________________ has been placed in a regulated commodity account (# ___________________)
with Wedbush Securities, a registered futures commission merchant (“FCM”) as an initial deposit. The difference
between the total Funds committed and the value of the equity in the regulated commodity account shall be known
as the "Balance of Funds". The balance of funds is being/will be held in the following other account(s) held by the
FCM (committed only for the managed account program that is directed by NeX).
Account Name Account Number
___________ _____________
___________ _____________
The undersigned further acknowledges that this balance of funds will be available at all times for
automatic transfer to the regulated commodity account, by the FCM, until further notice by the undersigned. The
above-named FCM is hereby instructed to provide NeX, for the duration of the period for which its manage the
commodity account with all monthly statements and confirmations for the above-listed accounts for the express
purpose of verifying on a periodic basis the total funds committed to NeX.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first
written above
___________________________________________
Account Name
_______________________________ _______________________________ __________
Client’s Signature Print Name and Title Date
_______________________________ _______________________________ __________
Client’s Signature Print Name and Title Date
*Note: If a joint account or general partnership, all persons must sign.
If this is a limited partnership account, the general or managing partner(s) must sign.
Accepted:
NeX Capital Management LLC
By: __________________________ Date: _________
Name: Jacob Wohl Title: Manager
24
NeX Capital Management LLC Client initials___________
Notional Funds Letter The undersigned hereby acknowledges that the undersigned has opened an account with NeX Capital Management,
LLC. For the purpose of trading limits and any fee calculations, this account is determined to have a trading level of
$___________________ with $___________________being deposited with Wedbush Securities, a registered
Futures Commission Merchant. The balance of the account will be considered "notional" funds. Any cash additions
and withdrawals to the account do affect the level of the trading account, and are to be considered a change in the
amount of notional funds. Any change in the trading level of the account would require a new letter stating the
amount of such level.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first
written above
___________________________________________
Account Name
_______________________________ _______________________________ __________
Client’s Signature Print Name and Title Date
_______________________________ _______________________________ __________
Client’s Signature Print Name and Title Date
*Note: If a joint account or general partnership, all persons must sign.
If this is a limited partnership account, the general or managing partner(s) must sign.
Accepted:
NeX Capital Management LLC
By: __________________________ Date: _________
Name: Jacob Wohl Title: Manager
25
NeX Capital Management LLC Client initials___________
Arbitration Agreement The undersigned client (“Client”) hereby agrees that any claim or controversy between Client
and NeX Capital Management, LLC or any of its employees, affiliates, or agents, or its or their
respective successors or assigns (collectively referred to as “NeX”) arising directly or indirectly
out of, or relating to, the Managed Account Agreement between Client and NeX (the “Advisory
Agreement”) or any of the account opening documentation, including but not limited to the
Limited Power of Attorney, Fee Payment Authorization, Letter of Commitment, Notional Funds
Letter or Client Authorization for Give Up Orders, or in connection with Client’s accounts with
NeX, transactions between Client and NeX or any other document or agreement now or hereafter
existing that relates to Client’s accounts with NeX, or any breach of any of them or any
transactions effected pursuant to them shall, except as provided below, be resolved by binding
arbitration before a forum chosen in accordance with the following procedure. At such time as
Client notifies NeX or any of its affiliates that Client intends to submit a claim or controversy to
arbitration or at such time as NeX or any of its affiliates notifies Client that NeX or any of its
affiliates intends to submit a claim or controversy to arbitration, Client shall have the opportunity
to choose a forum from a list of three or more qualified forums provided to Client by NeX within
10 days of notification that a claim or controversy is being submitted for arbitration. If client
fails to make a selection of a qualified forum within 45 days or receipt of such list, NeX shall
have the right to select a qualified forum from the list. A “qualified forum” is an organization
whose procedures for conducting arbitrations comply with the requirements of United States
Commodity Trading Commission (“CFTC”) Regulation Section 166.5. The National Futures
Association will be one of the forums offered. Any award rendered by the arbitrators shall be
final and binding on and judgment may be entered in any court having jurisdiction. NeX
acknowledges that NeX or any of its affiliates who is a party to any controversy arbitrated
pursuant to this Arbitration Agreement shall be required to pay any incremental fees which may
be assessed by a qualified forum for provision of a mixed arbitration panel, unless the
arbitrator(s) hearing the controversy shall determine that Client has acted in bad faith in initiating
or conducting the arbitration. A “mixed arbitration panel” is an arbitration panel composed of
one or more persons, a majority of whom are not members of a contract market or employed by
or otherwise associated with a member of a contract market and are not otherwise associated
with a contract market. Any hearing held to resolve any claim or controversy between Client and
NeX under this Arbitration Agreement shall take place in Los Angeles, California. Client agrees
that in any arbitration proceeding under this Arbitration Agreement Client shall not claim and
shall not be entitled to lost opportunity costs, consequential damages, treble damages, or punitive
damages. In any arbitration proceeding where NeX is deemed to be the prevailing party, Client
agrees that Client shall be responsible for the payment of NeX’s costs incurred in defending
Client’s claim, including NeX’s attorney’s fees. Any award rendered in any arbitration
conducted pursuant to this Arbitration Agreement shall be final and binding on and enforceable
each and/or all of the parties hereto and their personal representatives in accordance with the
substantive law of the State of Delaware, and judgment may be entered on any such award by
any court having jurisdiction thereof.
THREE FORUMS EXIST FOR THE RESOLUTION OF COMMODITY DISPUTES: CIVIL
COURT LITIGATION, REPARATIONS AT THE COMMODITY FUTURES TRADING
COMMISSION (CFTC), AND ARBITRATION CONDUCTED BY A SELF-REGULATORY
OR OTHER PRIVATE ORGANIZATION.
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NeX Capital Management LLC Client initials___________
THE CFTC RECOGNIZES THAT THE OPPORTUNITY TO SETTLE DISPUTES BY ARBITRATION MAY
IN SOME CASES PROVIDE MANY BENEFITS TO CUSTOMERS, INCLUDING THE ABILITY TO
OBTAIN AN EXPEDITIOUS AND FINAL RESOLUTION OF DISPUTES WITHOUT INCURRING
SUBSTANTIAL COSTS. THE CFTC REQUIRES, HOWEVER, THAT EACH CUSTOMER INDIVIDUALLY
EXAMINE THE RELATIVE MERITS OF ARBITRATION AND THAT YOUR CONSENT TO THIS
ARBITRATION AGREEMENT BE VOLUNTARY.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first
written above
___________________________________________
Account Name
_______________________________ _______________________________ __________
Client’s Signature Print Name and Title Date
_______________________________ _______________________________ __________
Client’s Signature Print Name and Title Date
*Note: If a joint account or general partnership, all persons must sign.
If this is a limited partnership account, the general or managing partner(s) must sign.
Accepted:
NeX Capital Management LLC
By: __________________________ Date: _________
Name: Jacob Wohl Title: Manager
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NeX Capital Management LLC Client initials___________
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NeX Capital Management LLC Client initials___________
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