What Happens When the Pre‑Set Stop‑Loss Level Is Triggered?
The stop-loss is not triggered intraday. Instead, it is calculated based on the strategy's net asset value (NAV) after market close. Once the strategy's NAV reaches the stop-loss ratio set by the client (e.g., -20%), the system will automatically terminate the strategy and initiate the normal position-closing process, regardless of whether the strategy is still within the lock-up period. After the investment manager completes the liquidation, the funds will be returned to the client's securities account.
Note: If the performance of the investment portfolio reaches or falls below the stop-loss level specified under the relevant strategy, the determination of whether the stop-loss has been triggered shall not be based on any real-time market price or any specific point in time during market trading. Instead, such determination shall be based on the valuation or settlement results made by the Manager in accordance with this Agreement. Once the stop-loss level is deemed to have been triggered based on such valuation or settlement results, the Manager may, where reasonably practicable, notify the Client and proceed with the redemption, liquidation, or disposal of the portfolio assets in accordance with the applicable provisions of this Agreement.
For the avoidance of doubt, the above arrangement does not constitute any undertaking or guarantee of an immediate suspension of trading or immediate execution of a stop-loss. The Manager shall have no obligation to close out positions immediately upon the stop-loss level being triggered or to execute any transaction at a specific price. Furthermore, there may be a time gap between the issuance of the stop notification by the system and the Manager's actual execution of the liquidation. During such period, the performance of the investment portfolio may fluctuate, and any resulting gains or losses shall be borne solely by the Client.
