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.
9
⚠️ IslandCrypto - HIGH RISK DISCLAIMER
9.1 User-Created Tokens
IslandCrypto allows users to create their own tokens. These tokens are NOT backed by the platform, have no intrinsic value, and are created entirely by other users. The platform makes no guarantees about any token's value, legitimacy, or future existence.
9.2 Pump & Dump Risk
User-created tokens are highly susceptible to pump-and-dump schemes where creators or early buyers artificially inflate prices before selling, causing the price to crash. You may lose your entire investment. Only invest what you can afford to lose completely.
9.3 AMM Mechanics
IslandCrypto uses an Automated Market Maker (AMM) system. This means:
- Prices adjust automatically based on supply and demand
- Large trades cause significant price impact (slippage)
- Token creators who provide liquidity will only recover approximately 50% of their initial liquidity if they immediately sell their tokens back - this is not a bug, it is how AMM mathematics work
- There is no price floor or ceiling protection
9.4 IslandCrypto Fees
- 0.3% swap fee on all token buy/sell trades (retained in liquidity pool)
- 0.1% transfer fee on wallet-to-wallet cash transfers (paid to platform)
- $5,000 per additional crypto address (first 2 addresses are free)
- $1,000 token creation fee
- $100,000 to unlock IslandCrypto access
9.5 No Recourse
The platform and its operators are NOT responsible for any losses due to token price crashes, rug pulls, scams, pump-and-dump schemes, or any other token-related losses. All IslandCrypto trading is entirely at your own risk.
10
🏦 Blackwater Finance - P2P Lending
10.1 Peer-to-Peer Lending
Blackwater Finance enables users to lend money directly to other users. All loans are between individual users - the platform acts only as a facilitator. Farr Holdings & Finance does not guarantee any loan repayment.
10.2 Access Fees
- $5,000 one-time fee to unlock lending features (browse, apply, make payments)
- Additional fee to become a Loan Manager (create loan offers)
- 1% origination fee charged on all funded loans (deducted from loan amount)
10.3 Loan Terms
Lenders set their own terms including interest rates, flat fees, repayment schedules, and duration. Borrowers should carefully review all terms before applying:
- Loan amounts: $1,000 to $1,000,000
- Interest rates: 1% to 100%
- Terms: 7 to 365 days
- Repayment types: Lump sum or installments
- Optional flat fees may apply in addition to interest
10.4 Late Payments & Default
- Late fees are set by the lender (typically 0-10%) and apply to overdue payments
- Repeated late payments may result in loan default
- Lenders bear the full risk of borrower default
- The platform does not cover defaulted loans or pursue collections
10.5 No Credit Checks
The platform does not perform credit checks or verify borrower ability to repay. Lenders are solely responsible for assessing borrower risk before funding any loan. Once a lender approves an application, both parties are bound by the loan terms.
11
⚖️ Anti-Money Laundering & Source of Funds
11.1 Lawful Source of Funds
By depositing funds into this platform, you represent and warrant that:
- All funds deposited are derived from lawful sources
- The funds are not the proceeds of any criminal activity, including but not limited to fraud, theft, embezzlement, drug trafficking, or any other illegal enterprise
- You are the rightful owner of all funds deposited, or have proper legal authorization to use them
- The funds are not being used to conceal the nature, location, source, or ownership of proceeds from unlawful activity
11.2 Prohibition on Money Laundering
You agree NOT to use this platform to:
- Launder money or engage in any activity that disguises or conceals the origin of funds
- Participate in any criminal enterprise or pattern of criminal activity
- Transfer, convert, or exchange funds known or suspected to be derived from illegal activity
- Assist others in any of the above activities
11.3 Compliance & Cooperation
You agree to cooperate with any investigation into suspected money laundering or fraud. The platform reserves the right to:
- Freeze or suspend accounts pending investigation
- Report suspicious activity to relevant authorities
- Refuse to process transactions deemed suspicious
- Request additional documentation regarding source of funds
11.4 Penalties
Money laundering is a serious criminal offense. Violations may result in immediate account termination, forfeiture of funds, and referral to law enforcement authorities for criminal prosecution.
12
🔒 Privacy & Confidentiality
12.1 Confidentiality Commitment
Farr Holdings & Finance is committed to protecting the privacy of its users. All user data, account information, trading activity, investment holdings, and financial records are held in strict confidentiality.
12.2 Data Protection
We will not voluntarily disclose, sell, share, or distribute any user information to third parties. This includes but is not limited to:
- Personal identification information
- Account balances and transaction history
- Investment holdings and trading positions
- Deposit and withdrawal records
- Any other financial or personal data
12.3 Legal Disclosure
User data will only be released to external parties if Farr Holdings & Finance is served with a valid court order or legal process compelling its disclosure. In such cases:
- Disclosure will be limited to only what is legally required
- We will comply with applicable legal obligations
- Where permitted by law, affected users may be notified
12.4 Internal Use
User data may be used internally by Farr Holdings & Finance for platform operation, security monitoring, fraud prevention, and compliance purposes.
13
Acceptance of Terms
By clicking "I Understand & Accept" below, you confirm that:
- You have read and understood all of the above terms
- You accept full responsibility for your trading decisions
- You accept all fees and charges as described
- You understand the risks involved in trading, especially options and short selling
- You understand the bond lock periods and severe early withdrawal penalties
- You understand the User Exchange mechanics, including collateral and liquidation risks
- You understand that IslandCrypto tokens are high-risk, user-created assets that may lose all value
- You understand that Blackwater Finance loans are peer-to-peer and the platform does not guarantee repayment
- You affirm that all funds deposited are lawfully obtained and not the proceeds of criminal activity
- You acknowledge the platform's privacy policy and confidentiality commitments
- You agree to the fair use policy and will report any bugs discovered