Fillable Options Application Questions? Go to Fidelity.com/options or call (Fidelity Investments)

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Options Application Questions? Go to Fidelity.com/options or call (Fidelity Investments)

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1.9898248.100
004011001
Questions? Go to Fidelity.com/options or call 800-343-3548.
Options Application
Use this application to apply to add options trading to your new or existing Fidelity account. If you already have options trading on your
account, use this application to add or update account owner or authorized agent information. Please complete in CAPITAL letters using black ink.
If you need more room for information or signatures, make a copy of the relevant page.
Helpful to Know
Requirements
• Entire form must be completed in order to be considered
for Options. If you are unsure if a particular section pertains
to you, please call a Fidelity investment professional at
800-343-3548.
• All account owners must complete the account owner sections
and sign Section 5.
• Any authorized agent must complete Section 6 and sign
Section 7.
• Trust accounts must provide trustee information where
information on account owners is required.
Eligibility of Trading Strategies
Nonretirement accounts:
• Business accounts: Eligible for any Option Level.
• Custodial (UGMA/UTMA) accounts: Eligible for writing covered
call on equity options.
• Individual and joint accounts: Eligible for any Option Level.
• Health Savings Account (HSA): Option Levels 1 or 2. This
includes covered call writing and purchase of calls and puts.
• Partnerships: Eligible for any Option Level.
• Trust accounts: Eligible for any Option Level.
Retirement accounts:
• Fidelity IRAs: Option Levels 1 or 2. This includes covered call
writing, purchase of calls and puts, and equity/index spreads
trading. Approval of spreads trading in Fidelity IRAs is conditioned
upon the approval of your account for Option Level 2.
• Inherited IRA (BDA): Option Levels 1 or 2. This includes covered
call writing and purchase of calls and puts.
• Investment-Only Retirement (formerly Nonprototype) Accounts:
Eligible for any option level.
• Keogh: Option Levels 1 or 2. This includes covered call writing
and purchase of calls and puts.
• Roth IRA for Kids accounts: Eligible only for writing covered
calls on equity options.
Applying for Margin
• Option Levels 3, 4, and 5 require margin to be set up on
your account. If you apply for Option Levels 3, 4, or 5, you
are also applying for margin to be added to your account.
• If applying for margin, by signing this application, you
acknowledge that:
– Trading on margin lets you borrow money using securities you
already own as collateral to purchase additional securities, sell
securities short, protect your account from overdraft, or access
a convenient line of credit.
– Margin can involve significant cost and risk and is not
appropriate for all investors. Account owners must
determine whether margin is consistent with their investment
objectives, income, assets, experience, and risk tolerance.
No investment or use of margin is guaranteed to achieve any
particular objective.
– Margin will not be granted if we determine that you reside
outside of the United States.
– Important documents related to your margin account include
the “Margin Agreement” found in the Important Information
about Margins Trading and Its Risks section of the Fidelity
Options Agreement.
Instructions for Corporations and Entities
• Unless options trading is specifically permitted in the corporate
resolution you provided when you opened your account, you
need to provide a new resolution containing options trading
authorization.
• In Section 2, you need to provide information about the entity
and/or the authorized individual, as follows:
– Name: both authorized individual and entity
– Last Four Digits of SSN or Tax ID Number: entity
– Marital Status and Income Source/Employment: no
answers needed
– Associations and Corporate Control Status: authorized
individual
– Investment Experience: authorized individual
• If there is a second authorized individual on the account, please
complete and submit additional copies of Sections 3 and 5. All
authorized individuals must sign.
Important to Understand
• Except in Sections 6 and 7 of this application, “You,” “you,”
and “your” refers to all account holders. Each of the account
holders agrees that any account holder has authority to act on
behalf of this account.
• In this application, “Fidelity IRA” refers to a Fidelity IRA, a
Fidelity IRA Rollover, a Fidelity SEP-IRA, a Fidelity Roth IRA, or
a SIMPLE IRA.
• In this application, “Fidelity,” “us,” and “we” includes
Fidelity Brokerage Services LLC (FBS), Fidelity Distributors
Corporation, and National Financial Services LLC (NFS), as
well as their employees, agents, and representatives, as the
context may require.
• In this application, the “Agreement” refers to the Fidelity
Options Agreement.
Form continues on next page.
Page 1 of 8
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1.9898248.100
004011002
1. Current Fidelity Account
Please note: A separate options application is required for each account you wish to have options trading available.
If you do not already
have an account at
Fidelity, this form must be
accompanied by a new
account application.
Account Number
New Account Number not yet assigned
2. Account Owner All information in Section 2 is required.
Includes trustees.
First Name Middle Name Last Name
Date of Birth MM DD YYYY Trust or Entity Name If applicable
Marital Status
Single/Divorced/Widowed
Married
Number of Dependents
Income Source
Check one and
provide all information.
Industry regulations
require us to ask for
this information. Note
that if you are self-
employed, occupation
is still required.
Employed: Self-employed:
Occupation Employer Leave blank if self-employed.
Employer Address
City State/Province ZIP/Postal Code Country
Retired: Not employed:
Source of Income Pension, investments, spouse, etc.
Associations
If you are employed by or associated with a broker-dealer, stock exchange, exchange member firm, the Financial
Industry Regulatory Authority (FINRA), a municipal securities dealer, or other financial institution, or are the spouse or
an immediate family member residing in the same household of someone who meets the aforementioned employ-
ment criteria, provide the company’s name and address below. By providing this information and completing this form,
you hereby authorize Fidelity to provide the associated person’s employer with duplicate copies of confirmations and
statements, or the transactions data contained therein, for your account(s) and any accounts you choose to have on a
consolidated statement for purposes of their compliance review.
Company Name
Company Address
City State/Province ZIP/Postal Code Country
As a person associated
with a member firm, you
are obligated to receive
consent from that firm.
Fidelity has existing
consent agreements
with many firms for
their employees to
maintain accounts with
Fidelity and to deliver
transactional data. If
your firm is not one
of them, Fidelity will
attempt to contact your
firm’s compliance office.
Account Owner continues on next page.
Page 2 of 8
1.9898248.100 004011003
Affiliations
If you, your spouse, or any of your relatives (including parents, in-laws, and/or dependents, etc.), living in your home (at the
same address), is a member of the board of directors, a 10% shareholder, or a policy-making officer of a publicly traded
company (an “Affiliate”), you must provide the information below. If there are more than two Affiliates, make a copy of
this section.
Affiliate’s Company Name Trading Symbol or CUSIP
Affiliate’s Company Name Trading Symbol or CUSIP
Investment Experience
Provide the number of
years trading each security.
If none, enter “0.”
Stocks
Years
Bonds
Years
Futures*
Years
Equity
Options
Years
Index
Options
Years
Provide the average size
and frequency of prior
options trades.
Average Size $1,000, $5,000, $10,000, etc. Options trades per month
* A futures contract is an agreement to buy or sell an asset at a specified price at a specified time in the future. The asset
transacted is usually a commodity (such as corn, grain, or livestock) or financial instrument (such as stocks, bonds, or
currencies). Futures allow investors to potentially benefit from price movements without owning the underlying asset.
3. Additional Account Owner All information is required for all owners. If there are additional
owners, make a copy of this section.
Note: Not for use by
anyone with 3rd Party
authorization (use
Section 6).
First Name Middle Name Last Name
Date of Birth MM DD YYYY Trust or Entity Name If applicable
Marital Status
Single/Divorced/Widowed Married
Number of Dependents
Income Source
Check one and
provide all information.
Industry regulations
require us to ask for
this information. Note
that if you are self-
employed, occupation
is still required.
Employed: Self-employed:
Occupation Employer Leave blank if self-employed.
Employer Address
City State/Province ZIP/Postal Code Country
Retired: Not employed:
Source of Income Pension, investments, spouse, etc.
2. Account Owner, continued
Additional Account Owner continues on next page.
Page 3 of 8
1.9898248.100
004011004
Associations
If you are employed by or associated with a broker-dealer, stock exchange, exchange member firm, the Financial
Industry Regulatory Authority (FINRA), a municipal securities dealer, or other financial institution, or are the spouse or
an immediate family member residing in the same household of someone who meets the aforementioned employment
criteria, provide the company’s name and address below. By providing this information and completing this form,
you hereby authorize Fidelity to provide the associated person’s employer with duplicate copies of confirmations and
statements, or the transactions data contained therein, for your account(s) and any accounts you choose to have on a
consolidated statement for purposes of their compliance review.
Company Name
Company Address
City State/Province ZIP/Postal Code Country
Affiliations
If you, your spouse, or any of your relatives (including parents, in-laws, and/or dependents, etc.), living in your home (at the
same address), is a member of the board of directors, a 10% shareholder, or a policy-making officer of a publicly traded
company (an “Affiliate”), you must provide the information below. If there are more than two Affiliates, make a copy of this
section.
Affiliate’s Company Name Trading Symbol or CUSIP
Affiliate’s Company Name Trading Symbol or CUSIP
Investment Experience
Provide the number of
years trading each security.
If none, enter “0.”
Stocks
Years
Bonds
Years
Futures*
Years
Equity
Options
Years
Index
Options
Years
Provide the average size
and frequency of prior
options trades.
Average Size $1,000, $5,000, $10,000, etc. Options trades per month
* A futures contract is an agreement to buy or sell an asset at a specified price at a specified time in the future. The asset
transacted is usually a commodity (such as corn, grain, or livestock) or financial instrument (such as stocks, bonds, or
currencies). Futures allow investors to potentially benefit from price movements without owning the underlying asset.
4. Objective and Trading Plans
Investment Objective
Check the objective that
most closely reflects your
approach for this account.
Industry regulations
require us to ask for this
information.
Lower Risk / Shorter Time Frame Higher Risk / Longer Time Frame
Short-term
Seek to pre-
serve capital
and can accept
the lowest
returns in
exchange for
price stability.
Conservative
Seek to
minimize
fluctuations in
market values
by taking
an income-
oriented
approach with
some potential
for capital
appreciation.
Balanced
Seek the
potential
for capital
appreciation
and some
income and
can withstand
moderate
fluctuations in
market values.
Growth
Seek growth
and can
withstand
significant
fluctuations in
market values.
Aggressive
Growth
Seek aggressive
growth and can
tolerate wide
fluctuations in
market values,
especially over
the short term.
Most
Aggressive
Seek very
aggressive
growth and
can tolerate
very wide
fluctuations in
market values,
especially over
the short term.
As a person associated
with a member firm, you
are obligated to receive
consent from that firm.
Fidelity has existing
consent agreements
with many firms for
their employees to
maintain accounts with
Fidelity and to deliver
transactional data. If
your firm is not one
of them, Fidelity will
attempt to contact your
firm’s compliance office.
3. Additional Account Owner, continued
Form continues on next page.
Page 4 of 8
1.9898248.100 004011005
Option Levels 3, 4, and 5 require you to also apply for margin.
If you select Option Levels 3, 4, or 5, you will be applying for
both margin and option trading.
Spread Trading is not available to IRAs utilizing the FDIC-Insured Deposit Sweep as the core position. Accounts
with FDIC-Insured Deposit Sweep as their current core position will only be eligible for approval up to Level 2;
you must change your core position to be considered for Spread Trading.
Trading Strategy Select the options strategy that best fits your investment strategy. To apply for Option Levels 2 or 3, your
Investment Objective must be Growth or above. To apply for Option Levels 4 or 5, your Investment Objective
must be Most Aggressive.
Option Levels 3, 4, and 5
require you to also apply
for margin. If you select
Option Levels 3, 4, or 5,
you will be applying
for both margin and
option trading.
If you select Levels 1 or 2
and you would also like
to apply for margin, check
the “add margin” box.
If you select Levels 1 or
2 and do not check the
“add margin” box, you
will not apply for margin.
If you are selecting Levels
3, 4, or 5 for an Investment-
Only Retirement Account,
see the important
information in Section 5,
Account Owner Signatures
and Dates.
Non-Retirement Accounts and Investment-Only Retirement Accounts
Level 1: Covered
call writing on
equity options.
Add Margin
Level 2: Purchases
of calls and puts
(equity and index)
and writing of
cash covered puts;
Includes all trading
capabilities under
Level 1).
Add Margin
Level 3: Equity
and index spreads,
covered put writing
(selling puts against
stock that is held
short); includes all
trading capabilities
under Levels 1
and 2.
Level 4:
Uncovered
writing of equity
options; Includes
all trading
capabilities under
Levels 1, 2, and 3.
Level 5:
Uncovered
writing of index
options; Includes
all trading
capabilities under
Levels 1, 2, 3,
and 4.
IRAs or HSAs
Level 1: Covered call writing
on equity options.
Level 2: Purchases of calls and puts (equity and index) and writing of cash
covered puts; includes all trading capabilities under Level 1.
Spread Trading (available for IRAs only): Equity and index spreads as well as all trading capabilities under
Levels 1 and 2 listed above.
Financial Profile
Answer for ALL owners combined. Trusts/entities: Answer based on trust/entity assets.
Check one in
each column.
Industry regulations
require us to ask for
this information.
Annual Income
From all sources
$0–$20,000
$20,001–$50,000
$50,001–$100,000
$100,001 or more
Estimated Net Worth
Excluding your home
$0–$30,000
$30,001–$50,000
$50,001–$100,000
$100,001–$500,000
$500,001 or more
Estimated Liquid Net Worth
Cash and assets easily converted to cash
$0–$15,000
$15,001–$50,000
$50,001–$100,000
$100,001–$500,000
$500,001 or more
4. Objective and Trading Plans, continued
Form continues on next page.
Page 5 of 8
1.9898248.100
004011006
5. Account Owner Signatures and Dates
ALL account owners must sign and date. For additional owners, make a copy of this page.
By signing below, you:
• Affirm that you have received, read,
understand, and agree to be bound by the
Agreement as currently in effect and as may
be amended in the future. The Agreement
shall inure to the benefit of Fidelity’s
successors and assigns, whether by merger,
consolidation, or otherwise. Fidelity may
transfer your account to its successors and
assigns, and this Agreement shall be binding
upon your heirs, executors, administrators,
successors, and assigns.
• Acknowledge that you will not enter any
order for options until you have read and
understood the Characteristics and Risks
of Standardized Options, and supplements
thereto, by The Options Clearing Corporation
(the “Options Disclosure Document”).
• Specifically affirm that you understand the
risks of options as described in the Agreement
and the Options Disclosure Document,
and that in full knowledge of these risks,
you have determined that options trading
is appropriate for you, based on your own
careful examination of your financial resources,
investment objectives, and risk tolerance.
• Certify that you have provided Fidelity
with the required personal, financial, and
investment information for all parties
authorized to place trades on this account,
including any authorized agents, and that you
will ensure that any parties who subsequently
gain this authority will provide required
information about themselves to Fidelity.
• Agree to forward copies of the Agreement
and the Options Disclosure Document to any
authorized agents.
• Represent and warrant that if you have not
completed the section titled Associations,
you are not employed by nor associated with
a broker-dealer, stock exchange, exchange
member firm, FINRA, a municipal securities
dealer, or any other financial institution, nor
are you the spouse or immediate family
member residing in the same household of
such a person.
• Represent and warrant that if you have not
completed the section titled Affiliations, none
of you, your spouse, nor any of your relatives
living in your home are a control person or
affiliate of a public company under SEC
Rule 144.
• Acknowledge that Fidelity will not be
liable for any loss, expenses, or cost arising
out of your instructions, provided that it
institutes reasonable procedures to prevent
unauthorized transactions.
• Certify that all information you provided
is true, accurate, and complete.
• You acknowledge that you have been advised
by Fidelity to consult a tax advisor before
completing any transaction involving options.
You have not received any tax advice from
Fidelity and understand that the transaction is
neither allowed nor disallowed by the Internal
Revenue Code.
If adding margin and/or Options Trading
Levels 3, 4, or 5 to an Investment-Only
Retirement Account:
• Acknowledge that you have read and
understand the following points: As trustee,
it is your responsibility to ensure that
all account transaction and investment
instructions provided are in accordance
with the underlying plan and trust.
In addition to risks generally applicable to
margin borrowing, utilizing margin within a
tax-advantaged retirement account poses
other risks, including: 1) using account assets
to satisfy margin calls reduces tax-advantaged
savings, 2) annual contribution limits may
restrict a plan trustee’s ability to satisfy
margin calls, and 3) debt-financed investment
income within a tax-advantaged account
can generate unrelated business taxable
income (UBTI). You are strongly encouraged
to consult your tax or benefits advisor prior to
utilizing margin borrowing on this account.
If applying for margin, you:
• Authorize Fidelity to extend margin credit on
the account identified in Section 1.
• Affirm that you have received, read,
understood, and agree to be bound by the
terms and conditions of the Margin Agreement
as is currently in effect and as may be amended
in the future. It shall inure to the benefit of
Fidelity’s successors and assigns, whether by
merger, consolidation, or otherwise. Fidelity
may transfer your account to its successors
and assigns, and this Margin Agreement
shall be binding upon your heirs, executors,
administrators, successors, and assigns.
• Hereby authorize Fidelity to hypothecate
(lend) or rehypothecate, either separately or
with the property of others, either to Fidelity
or to others, any property in your account.
This authorization shall remain in force until
Fidelity receives written notice of revocation.
You acknowledge that this account is governed by a predispute arbitration clause, which appears on the last page of the Agreement,
and that you have read the predispute arbitration clause.
PRINT OWNER NAME
OWNER SIGNATURE DATE MM/DD/YYYY
SIGN
X X
PRINT OWNER NAME
OWNER SIGNATURE DATE MM/DD/YYYY
SIGN
X X
Form continues on next page.
Page 6 of 8
1.9898248.100 004011007
6. Authorized Agent
If there is an authorized agent on this account, the agent must complete and sign this
section. Attach an Authorized Access form (available at Fidelity.com) unless one is already on file for this authorized agent.
In this section, “you” and “your” refer to the Authorized Agent.
For additional authorized
agents, make a copy of
this section.
First Name Middle Name Last Name
Title Relationship to Owner Investment advisor, family, trustee, etc. Last four digits of SSN or Taxpayer ID
Income Source
Check one and
provide all information.
Industry regulations
require us to ask for
this information. Note
that if you are self-
employed, occupation
is still required.
Employed: Self-employed:
Occupation Employer Leave blank if self-employed.
Retired: Not employed:
Source of Income Pension, investments, spouse, etc.
Investment Experience
Provide the number of
years trading each security.
If none, enter “0.”
Stocks
Years
Bonds
Years
Futures*
Years
Equity
Options
Years
Index
Options
Years
Provide the average size
and frequency of prior
securities trades.
Average Size $1,000, $5,000, $10,000, etc. Options trades per month
* A futures contract is an agreement to buy or sell an asset at a specified price at a specified time in the future. The asset
transacted is usually a commodity (such as corn, grain, or livestock) or financial instrument (such as stocks, bonds, or
currencies). Futures allow investors to potentially benefit from price movements without owning the underlying asset.
7. Authorized Agent Signature and Date
In this section, “you” and “your” refer to the Authorized Agent. By signing below, you:
• Affirm that you have received, read,
understand, and agree to be bound by the
Agreement as currently in effect and as may
be amended in the future. The Agreement
shall inure to the benefit of Fidelity’s
successors and assigns, whether by merger,
consolidation, or otherwise.
• Acknowledge that you will not enter
any order for options until you have
read and understood the Options
Disclosure Document.
• Accept all terms and conditions described in
this application and in the Agreement.
• State that you are familiar with and
understand the investment objectives and
trading plans of the account owner(s) and will
only use trading strategies that are consistent
with those objectives and plans.
• Certify that you have provided Fidelity
with your required personal, financial,
and investment information, and that this
information is complete and truthful.
• Certify that all information you provided
is true, accurate, and complete.
If applying for margin, you:
• Affirm that you have received, read,
understood, and agree to be bound by
the terms and conditions of the Margin
Agreement as is currently in effect and as
may be amended in the future. It shall inure
to the benefit of Fidelity’s successors and
assigns, whether by merger, consolidation, or
otherwise. Fidelity may transfer your account
to its successors and assigns, and this Margin
Agreement shall be binding upon your
heirs, executors, administrators, successors,
and assigns.
You acknowledge that this account is governed by a predispute arbitration clause, which appears on the last page of the Agreement,
and that you have read the predispute arbitration clause.
PRINT AUTHORIZED AGENT NAME
AUTHORIZED AGENT SIGNATURE DATE MM/DD/YYYY
SIGN
X X
Form continues on next page.
Page 7 of 8
1.9898248.100
004011008
On this form, “Fidelity” means Fidelity Brokerage Services LLC and its affiliates. Brokerage services are provided by
Fidelity Brokerage Services LLC, member NYSE, SIPC. All trademarks and service marks indicated are the property
of their respective owners. 427178.10.0 (01/20)
Did you print and sign the form, and attach any necessary documents?
Send the ENTIRE form and any attachments to Fidelity Investments. You will
receive a new account profile, or updated account profile confirming the
changes indicated on the application.
Questions? Go to Fidelity.com/options or call 800-343-3548.
Use postage-paid envelope, drop off at a Fidelity
Investor Center, OR deliver to:
Regular mail
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
Overnight mail
Fidelity Investments
100 Crosby Parkway KC1K
Covington, KY 41015
Page 8 of 8
Page 1 of 6
• Agree to let us verify the information you provide, such as payment
and employment information, and obtain credit reports and other
credit-related information about you at any time
• Agree to resolve disputes concerning your relationship with us (other
than class actions) through arbitration rather than in a court of law
• Agree to notify us in writing any time there is a material change in your
financial circumstances or investment objectives
• Acknowledge that Fidelity retains the right to refuse to accept an
instruction for buying, writing, and/or exercising options if doing so
would be contrary to applicable laws and rules or would put Fidelity
at undue financial risk
Options Transaction Policies
The following policies are intended to protect you, your account, and
Fidelity from potential negative impacts that may result from utilizing
options strategies in your account. For example, the minimum equity/
position requirement discussed below is intended to help ensure that an
adequate amount of cash or securities remains in the account to cover
possible costs or liabilities that may result from options strategies that you
choose to utilize.
Minimum Equity/Position Requirement
For each account approved for options trading, we will determine a
minimum level of equities and/or other positions that the investor must
maintain in the account. We may change this amount at any time, at our
discretion and without advance notice. You may contact a Fidelity rep-
resentative for information on the applicable limit for your account. It is
your responsibility to ensure that your required minimum has been met
before writing any option. You authorize us to not generally allow with-
drawals of cash or securities that would reduce either your equity or
position balance to below your required minimum, and to refuse orders
to sell securities that are being held in connection with your required
minimum. You agree not to hold us liable for any loss that you may sus-
tain as a result of the enforcement of this policy on required minimums.
Exercise and Assignment of Options
As the account owner, it is your responsibility to exercise, in a proper
and timely manner, any right, privilege, or obligation of any put, call, or
other option that we may purchase, handle, endorse, or carry for your
account(s).
However, in the absence of any instructions from you, you authorize us
to exercise any in-the-money options that remain in your account on
their expiration day, so long as they are in-the-money by $0.01 or greater
or in accordance with Fidelity’s policies then in effect, as applicable. If
you do not want us to exercise any expiring options, you must notify
us by 4:20 p.m. Eastern time on the expiration date by calling Fidelity
at 800-343-3548. If we do not receive your instructions by this time, you
agree to waive any and all claims for damage or loss that you might have
against us, at that time or later, arising out of the fact that we did not
receive your orders to exercise or not exercise in time.
If sufficient assets and/or other positions are not available to cover the
exercise or assignment of an option, you authorize Fidelity to take the
following actions while charging the Rep-Assisted commission rate:
• place an order to close option positions
• place an order to minimize market risk (for example, if it would result
in a short position or cash debit in an account not enabled for margin,
result in an equity level that is below the aforementioned minimum, or
if there are no shares available for a short sale)
• instruct the OCC not to exercise valuable options on or prior to the
last trading day
If an option is exercised or assigned, you authorize us to close out the
unsupported equities positions that result from the exercise. You agree to
waive and to release us and our officers, employees and agents from any
and all claims of damage or loss, then or at a later time sustained, as a
result of the exercise or nonexercise of an option contract(s).
Options
Agreement
Commitments by Fidelity and You
Fidelity’s Commitments to You
Under this agreement, Fidelity has certain rights and responsibilities.
When we accept your options application, we are agreeing to accept
instructions on your account for buying, writing, and exercising various
options strategies, in accordance with the terms described in this agree-
ment and consistent with your commitments to Fidelity. We reserve the
right to limit your ability to enter into opening options transactions.
Your Commitments to Fidelity
By signing the options application, you:
• Acknowledge that you have received this agreement that you accept
the terms of this agreement, and that you will not enter any order for
options until you have read and understood both the agreement and
the Characteristics and Risks of Standardized Options, and supple-
ments thereto, by The Options Clearing Corporation [the “Options
Disclosure Document(s)”]
• Specifically affirm that you understand the risks of options as described
in this agreement and the Options Disclosure Document(s), and that in
full knowledge of these risks you have determined that options trading
is appropriate for you, based on your own careful examination of your
financial resources, investment objectives, and risk tolerance
• Acknowledge, and agree to be bound by, the rules of the Financial
Industry Regulatory Authority (FINRA), the New York Stock Exchange,
Inc. (NYSE), and The Options Clearing Corporation that apply to
options contracts
• Agree that you, whether alone or in concert with others, will not violate
the position or exercise limits of the options exchanges as set forth in
the Options Disclosure Document(s)
• Agree not to hold Fidelity liable in connection with the execution,
handling, selling, purchasing, or endorsing of options for your account
•
Agree to let us monitor and/or record any phone conversations with you
•
Agree to let us create a digital representation of your voice, a “voiceprint,”
that may be used for verifying your identity when you contact Fidelity
Questions? Go to Fidelity.com/options or call 800-343-3548.
This document describes the features, policies, costs, and risks
associated with options trading. Please review this document and
keep it for your records. Do not return it to Fidelity.
How to Contact Us:
For matters concerning your account, including questions,
changes, and notifications of errors, reach us:
By Phone:
800-343-3548
In Writing:
Fidelity Investments
PO Box 770001
Cincinnati, OH 45277-0045
Who’s Who in This Agreement
In this document, “Fidelity,” “us,” and “we” includes Fidelity
Brokerage Services LLC (FBS), Fidelity Distributors Corporation, and
National Financial Services LLC (NFS), as well as their employees,
agents, and representatives, as the context may require. “You” and
“account owner” refer to the registered owner(s) of the account
or to any new account applicant; for any account with more than
one owner or authorized person (such as a joint or trust account),
“you” and “account owner” or “account owners” refer to all owners,
collectively and individually.
1.734349.118
If an option assignment results in a short position of a security in your
account, you understand that you may be charged short interest fees to
maintain that position in your account. In addition, securities that initially
are not hard to borrow and have a fee associated with them may subse-
quently become unavailable or hard to borrow, in which case you agree
to be responsible for payment of any and all related fees, including daily
short interest fees. When an option is exercised, you will be charged the full
aggregate exercise price for any underlying security.
Purchasing Expiring Options
On the expiration date of an equity option, Fidelity may (i) restrict your
ability to place new opening transactions and (ii) cancel any unexecuted
opening transactions. The timing of these action s may vary.
Allocation of Exercise and Assignment Notices
In allocating exercise notices, we use the random selection method, mean-
ing that the options to be exercised are selected at random from all short
option positions that are open at the time (including those established that
day). Equity trades that result from an option exercise or assignment are
allocated to net your position(s) in order to minimize short against the box
scenarios, unless you instruct us otherwise prior to settlement. All short
option positions may be assigned at any time. A detailed description of
this method is available upon written request.
Protective Steps You Authorize Us to Take
You authorize us to hold any securities and funds in any of your Fidelity
accounts and use them as security for the performance of your obligations
to us under this agreement with respect to any open options position.
If you have margin on your account, and you do not meet our margin calls
promptly, we may, in our sole discretion and without notifying you, take
any and all steps necessary to protect ourselves in connection with options
transactions made for your account. This may include such steps as buy-
ing or selling short any or all shares represented by options in your account,
or buying, selling, exercising, or blocking the exercise of any put or call
options. In such a case, you will be required to reimburse us for any
losses and expenses that we incur, including attorneys’ fees.
If you become insolvent or die, or if your property is attached by others,
we may take whatever steps we consider necessary or appropriate to
protect our interests against loss.
All obligations and liabilities arising under this account are joint and
several, and we may enforce them against any or all account holders.
Although Fidelity may use other methods when it determines they may
be more appropriate, Fidelity reserves the right to use the provisions
described in this section at any time, except in cases involving retire-
ment accounts when these provisions would conflict with the Employee
Retirement Income Security Act of 1974 (ERISA) or the Internal Revenue
Code of 1986 (IRC), both as amended.
Options Transaction Policies for Fidelity
Individual Retirement Accounts
A Fidelity IRA, a Fidelity IRA Rollover, a Fidelity SEP-IRA, a Fidelity Roth
IRA, or a SIMPLE IRA (Fidelity IRA) are eligible for writing covered calls,
buying calls/puts, and buying long straddles/strangles/combinations with
respect to index and equity options. Put and call options strategies that
are generally known as options spreads (Options Spreads) may be per-
mitted in a Fidelity IRA account provided certain conditions are met.
The following options policies, which are designated by Fidelity as a form
of margin agreement for your Fidelity IRA, provide you with important
terms and conditions for buying, writing, and exercising various options
strategies, including Options Spreads, in your Fidelity IRA.
Restrictions
• Spread positions in Fidelity IRAs require a minimum of $2,000 to be set
aside in an interest-bearing account referred to in your balances as “Cash
Spread Reserve.”
• You must meet the initial and maintenance requirements for your options
positions, including Options Spreads, at all times or your positions may
be closed by Fidelity without notice. This may include closing out a leg of
a spread if the other leg has been exercised or an assignment occurs.
Suitability
You acknowledge that investing in options can be very risky and that you
have read the “Important Information about Options Trading and Its Risks”
section in this agreement. You acknowledge that your decision to trade
in options in your Fidelity IRA is solely your decision and that Fidelity has
not directly or indirectly solicited you or recommended that you trade in
options or that you develop or implement Options Spreads. You agree that
Fidelity has not and will not recommend any options trades, including puts
or calls or other options trades or Options Spreads, in your Fidelity IRA.
While Fidelity will implement Options Spreads instructions it receives from
you, you understand and agree that Fidelity is not responsible for deter-
mining the appropriateness or suitability of any options you purchase or
sell in your Fidelity IRA. You are advised to consult a tax advisor before
engaging in any option transactions in our Fidelity IRA.
Fidelity IRA Limitations and Representations
You acknowledge and agree to the following terms, conditions,
and representations:
• Fidelity’s approval of your Fidelity IRA for option trading, including
spreads, does not mean that Fidelity has endorsed, solicited, recom-
mended, or approved of any option transaction in your Fidelity IRA.
• Margin borrowing will not be made available in your Fidelity IRA because
of applicable regulatory limitations.
• You are solely responsible for ensuring that sufficient assets are main-
tained in your Fidelity IRA to cover all potential obligations arising from
option transactions or options strategies, including Option Spreads,
allowed in your Fidelity IRA.
• It is your responsibility not to enter into any option transactions or strate-
gies, including Option Spreads, that can result in you owing in excess of
your Fidelity IRA balance.
• An obligation in your Fidelity IRA in excess of your applicable Fidelity IRA
account balance can result in a taxable distribution of the IRA assets and
the imposition of excise taxes.
• You agree to maintain a sufficient cash balance in your Fidelity IRA to
satisfy all obligations that may arise from option transactions or Options
Spreads and during the time that such options are held or Options
Spreads are conducted in your Fidelity IRA. You further understand and
acknowledge that amounts available for purchases within your Fidelity
IRA may be limited due to amounts needed to satisfy options or Options
Spreads obligations.
• Fidelity shall not be responsible for the dishonor of any transaction due
to an insufficient balance in your Fidelity IRA.
• To the extent that options transactions or Options Spreads create a
short or debit position in your Fidelity IRA core account, such short or
debit position will immediately be covered with other assets from your
Fidelity IRA.
• You assume full responsibility for reviewing the terms of any investment
in your Fidelity IRA and hereby represent that maintaining options trans-
actions, including Options Spreads, in your Fidelity IRA does not and
will not violate the terms and conditions of the applicable Fidelity IRA
Custodial Agreement and Disclosure Statement.
• Transactions in my Fidelity IRA do not and will not constitute a prohibited
transaction as defined under ERISA, the IRC and related regulations,
interpretations, and guidance, and are otherwise in compliance with all
applicable laws, rules, and regulations.
• You have been advised to consult your tax advisor regarding the
advisability of holding options or conducting Options Spreads in your
Fidelity IRA.
• If Fidelity provides research or other information relating to options,
including Options Spreads, you understand and agree that any such
research or other information is provided solely as an incident to the
provision of brokerage services by Fidelity and is not intended to serve
as a primary basis for your investment decisions relating to your Fidelity
IRA. Any such research or information will not serve as a primary basis for
your decision to engage in options trading, including Options Spreads,
in your Fidelity IRA.
Additional Representations
You represent and warrant the following: (1) you have determined that it
is suitable for you to trade options and conduct Options Spreads in your
Fidelity IRA; (2) you will not engage in any transaction including Options
Spreads in your Fidelity IRA that would result in any hypothecation or
extension of credit by Fidelity or its affiliates; and (3) you have not relied
on Fidelity or any of its affiliates for any investment research, advice
(including, but not limited to, investment, business, legal, or tax advice), or
information in connection with options trading or strategies pertaining to
your Fidelity IRA.
Page 2 of 6
1.734349.118
Page 3 of 6
1.734349.118
Important Information about Options Trading and Its Risks
Before you make use of options in any way, it’s essential to fully
understand the risks involved, and to be certain that you are
prepared to accept them. The bullets below outline general risks as
well as the special risks associated with writing uncovered options.
General Risks
• Options are complex and risky, and are not suitable for many
investors.
This applies to both the purchase and the writing of
options. Unless you clearly understand the rights and obligations
that an options transaction creates for you — and the inherent risks
involved, especially during extreme market volatility or trading
volumes — you should avoid options.
• When buying an option, or when writing a covered call option, you
can lose 100% of your investment.
This includes both the premium
you paid and your transaction costs. A covered call option is
one for which you own the underlying security (or another security
convertible, exchangeable, or exercisable into that security). As
noted below, with uncovered options, you can lose more than 100%
of your investment.
• Many factors affect the price of an options contract. Pricing can be
influenced by such factors as the relationship between the exercise
price and the market price of the underlying security, the expiration
date of the option, and the price fluctuations or other characteristics
of the underlying stock.
• Market conditions or temporary restrictions of trading or
exercising may interfere with your trading plans.
If the secondary
market for a given option were to become unavailable — temporarily
or permanently — investors could not engage in closing
transactions, and an option writer would remain obligated until
expiration or assignment.
In addition, an options exchange or any regulatory body with
jurisdiction may restrict transactions in particular options, or the
exercise of options contracts, from time to time and based solely on
their own discretion.
• Index options have special characteristics and risks. Index option
exercises are settled with cash, not securities. In addition, because
the exercise price of an index option is always based on the
closing index value, an index option that is in the money during
trading hours may be out of the money when the closing value is
calculated — a risk to consider whenever you place an exercise
order before the closing value is known.
Additional Risks of Uncovered Options
Writing uncovered options is suitable only for the investor who
understands the risks, has the financial capacity and willingness to
incur potentially substantial losses, and has sufficient liquid assets to
meet applicable margin requirements.
• Any time you write an uncovered option, you expose yourself to
significant financial losses.
If the value of the underlying instrument(s)
moves against you, your losses could be many times greater than
the cost of the option itself. If an underlying instrument is affected by
rapid price volatility or high trading volume, you may be unable to
close out your position and you may be forced to endure significantly
greater losses than otherwise.
• With certain uncovered options, your potential losses are
unlimited.
These include writing an uncovered call and
combination writing (writing both a put and a call on the same
underlying instrument). The risk of writing an uncovered put option
is not theoretically unlimited, but in practice the losses can be as
substantial as with writing an uncovered call.
• Writing uncovered options may trigger a margin call. If the value
of an underlying instrument moves against your uncovered options
position, your broker may demand significant additional margin
payments. If you’re not able to make these payments, your broker
may sell securities in your accounts, liquidate options positions, or
take other measures as described in your margin agreement.
• American-style options work differently from European-style
options.
The writer of an American-style option is subject to
being assigned an exercise at any time after he or she has written
the option until the option expires. By contrast, the writer of a
European-style option is subject to exercise assignment only
during the exercise period.
The information here is only a summary of the risks associated
with options. As required by this agreement, be sure to read
“Characteristics and Risks of Standardized Options,” in particular the
chapter called “Risks of Buying and Writing Options.”
If you have any questions or concerns about options, please
contact Fidelity.
Important Information about Margin Trading and Its Risks
About Margin Trading and Its Risks
Trading on margin lets you borrow money from NFS, an affiliate
of FBS, using securities you already own as collateral to purchase
additional securities, sell securities short, protect your account from
overdraft, or access a convenient line of credit. A margin account
is designed primarily to finance additional purchases of securities,
although it can also provide overdraft protection for your cash
management activities. Before you make use of margin in any
way, it’s essential to fully understand the risks involved. Margin
can involve significant costs and risks and is not appropriate
for all investors. Account owners must determine whether margin
is consistent with their investment objectives, income, assets,
experience, and risk tolerance; and no investment or use of margin
is guaranteed to achieve any particular objective. Risks of margin
trading include:
You can lose more money than you deposited in your margin
account. If securities you bought on margin go down in price, you
may face a “margin call,” meaning you have to deposit more money
or marginable securities.
Fidelity can set stricter margin requirements than the industry
minimum, and can increase these “house” requirements in its
sole discretion without advance notice. An increase may take
effect immediately and may trigger a maintenance margin call
without prior notice.
If you cannot meet a margin call, Fidelity can force the sale of
assets in your account(s). If the equity in your account falls below
either industry minimums or Fidelity’s house requirements, Fidelity
can cover the deficiency by selling securities or other assets in any
account of yours at Fidelity (including accounts at other Fidelity
affiliates) without prior notice. If these assets are insufficient, you
will be responsible for making up any shortfall, and potentially for
paying Fidelity’s costs for collecting the shortfall as well.
Fidelity can sell assets in your account without contacting you.
While Fidelity generally attempts to notify customers of margin calls,
it is not required to do so. Even if you are notified, Fidelity can still
sell assets before the time indicated in the notice, if it believes such
action is warranted. You understand that if we contact you in advance
in certain instances, we are not obligated to do so and such action
will not be deemed a waiver of our rights under this agreement.
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1.734349.118
Important Information about Margin Trading and Its Risks continued
You are not entitled to choose which securities are sold to meet
a margin call. Because your accounts form Fidelity’s collateral for its
loan to you, the choice of what to sell is Fidelity’s.
You are not entitled to a time extension on a margin call. While
Fidelity may grant you an extension, it is not required to do so.
Granting an extension on a margin call does not waive Fidelity’s
right to decline to grant an extension in the future.
Short selling is a margin account transaction and entails the
same risks as described above. Fidelity can use your account to
buy securities to cover a short position without contacting you. If
you don’t have sufficient assets, you are responsible for the shortfall
and collection costs.
Fidelity can loan out (to itself or others) the securities that
collateralize your margin borrowing. If it does, you may not be
entitled to receive, with respect to securities that are lent, certain
benefits that normally accrue to a securities owner, such as the
ability to exercise voting rights, or to receive interest, dividends, or
other distributions. Although you may receive substitute payments
in lieu of distributions, these payments may not receive the same
tax treatment as actual interest, dividends, or other distributions,
and you may therefore incur additional tax liability for substitute
payments. Fidelity may allocate substitute payments by lottery or in
any other manner permitted by law, rule, or regulation.
Please note that any substitute payments Fidelity makes are
voluntary, and may be discontinued at any time.
We may sell your securities or other assets without contacting
you. Some investors mistakenly believe that Fidelity must contact
them for a margin call to be valid, and that Fidelity cannot liquidate
securities or other assets in their accounts unless Fidelity has
contacted them first. This is not the case. Fidelity may attempt to
notify you of margin calls, but is not required to do so. In addition,
even if Fidelity has contacted you and provided a specific date
by which you can meet a margin call, Fidelity can still take the
necessary steps to protect its financial interest prior to that date,
including immediately selling the securities without notice to you. If
your application for margin is approved, you agree and acknowledge
that if Fidelity contacts you in advance in certain instances, Fidelity is
not obligated to do so and such action will not be deemed a waiver
of Fidelity’s rights under this agreement.
In addition to market volatility, factors specific to your portfolio,
such as concentration, liquidity, and marketability of securities,
may increase the risk of a margin call. Use of features such as
checkwriting, bank cards, and bill payment services may also
increase the risk of a margin call. In the absence of (i) an Intra-
day Free Credit Balance (during normal hours when the market is
open [“Intra-day”], any new deposit to your Account or settlement
proceeds from a transaction in your Account are held as a free credit
balance [the “Intra-day Free Credit Balance”]), (ii) money in the core
account, (iii) shares of certain Fidelity money market funds held as
positions outside the core account, or (iv) cash dividends paid on
marginable securities, any debits that are posted to your account
will drive up your margin balance.
You may pay for securities you buy in your account in full, or you
may borrow part of the purchase price from us, using a margin
account. When you borrow on margin, the securities in your account
become our collateral for the loan to you. A decline in the value of
these securities is therefore a decline in the value of the collateral.
We can respond by taking any of the following steps at any time
without prior notice:
• sell assets, or contracts relating to these, that are in your account
• buy assets, or contracts relating to these, of which your account or
accounts may be short, in order to close out in whole or in part any
commitment on your behalf
• place stop orders with respect to these securities
How and when we can take these steps:
• at any time, during regular market hours or otherwise
• with or without notifying you that a call is due and even if you have
notified Fidelity that you will be providing additional collateral for
your Account
• for any cause, including but not limited to:
– if the value of your account equity falls
– if you fail to meet — or indicate that you intend to fail to meet — any
call for additional collateral
– high market volatility
– an account owner’s death or petition for bankruptcy
– an attachment or court order
– any other situation which Fidelity, in its sole discretion, believes is
warranted to prevent the account from going deficit
Margin Account Features
• The following account types are NOT eligible for margin:
– 529 College Savings Plans
– Health Savings Accounts
– Custodial accounts (UGMA/UTMA)
– Estate accounts
– Fiduciary accounts (guardian and conservator)
– Fidelity IRAs including 401(k) plans and Keoghs
– Cash Management Accounts (CMA)
– Investment Club Accounts
– Mutual Fund Accounts
– Portfolio Advisory Services (PAS) Accounts
• IRAs may have supplemental limited margin and/or options spread
trading added.
• For accounts with identical registrations, only one of the accounts
with the same registration is eligible for margin.
• Margin will not be granted if we determine that you reside outside of
the United States.
• With joint registration accounts, any obligations or liabilities resulting
from one account owner’s actions are joint and several (i.e., are the
responsibility of each account owner, both individually and jointly).
We may enforce this agreement and the Customer Agreement
relevant to your account against all account owners or against any
owner individually. Each owner of a joint account may act as if he
or she were the sole owner of the account, with no further notice or
approval necessary from any joint owner. For example, one owner
may buy and sell securities, withdraw assets, transfer assets into or out
of the account, borrow against the account through margin, arrange
for account statements to be sent only to him or her, view all available
historical account documents or change the account’s features and
services (although no account owner may remove another’s name
from the account).
• Debits to resolve securities transactions (including margin calls) or the
payment of account fees will be given priority over other debits, such
as checks or debit card transactions.
• If certain of the sources are not enough to satisfy a given debit, we
reserve the right to take action as we see fit, including if you have a
margin account and the unsatisfied debit is for a securities purchase,
drawing on the available balance of another account of yours at
Fidelity. If you have a margin account, we may transfer to that account
any unresolved debit from other accounts of yours.
Page 5 of 6
1.734349.118
Important Information about Margin Trading and Its Risks continued
• We may also use property to satisfy a margin deficiency or other
obligation, whether or not we have made advances in connection
with this property. This provision extends to any property held by you
or carried for any account of yours, including any credit balances,
assets, and contracts, as well as shares of any mutual funds or other
investment companies for which Fidelity or an affiliate provides
management or administrative services. Although Fidelity may use
other methods when it determines they may be more appropriate,
Fidelity reserves the right to use the provisions described in this
section at any time, except in cases involving retirement accounts
when these provisions would conflict with the Employee Retirement
Income Security Act of 1974 (ERISA) or the Internal Revenue Code of
1986, both as amended.
• Retirement accounts and Fidelity BrokerageLink
®
accounts cannot
trade foreign securities or sell short, are not eligible for margin
loans, and may be subject to other rules and policies. Please see the
literature for these accounts for details.
• Your account statements will show all activity in your account
for the stated period, including securities transactions, cash and
margin balances, credits and debits, and all fees paid directly from
your account.
• You have the right to withdraw excess margin securities, provided
your account is not subject to restriction under the Federal
Reserve’s Regulation T or such withdrawal will not cause an
undermargined condition.
• In addition to reinvestment of mutual fund dividends, reinvestment of
dividends from eligible equities and closed-end funds is an option for
most Fidelity accounts, including those with margin. You can choose
to have the service apply to all eligible securities in your account, or
only to certain ones. You can request this feature on your account
application (for all securities) or subsequently by phone or in writing
(for all securities or for individual ones).
FBS is responsible for:
• Operating and supervising your account and its own activities
in compliance with applicable laws and regulations, including
compliance with federal, industry and NFS margin rules pertaining to
your margin account and for advising you of margin requirements
• Extending margin credit for purchasing or carrying securities
on margin.
By applying for margin trading, you agree:
• that you are responsible for any losses in your account that may
arise as a result of any action outlined above. Note that property
in a margin account may be pledged or repledged, hypothecated
(loaned) or rehypothecated, either separately or in common with any
other property, for as much as your obligation to us or more, without
our having to retain a like amount of similar property in our control for
delivery. Also, we may at any time, and without notice to you, transfer
any property between any of your accounts, whether individual or
joint, or from any of your accounts to any account you guarantee.
As permitted by law, we may use certain securities for, among other
things, settling short sales and lending securities for short sales and as
a result may receive compensation in connection therewith.
• that all marginable assets will be held in a margin account, unless you
tell us to the contrary (precious metals are not marginable). The Intra-
day Free Credit Balance, money in the core account, and any cash
dividends paid on marginable securities, are automatically applied to
your margin debt every month, unless you tell us otherwise.
• When you borrow on margin, you agree to maintain the level of
margin collateral we require (which we may change in our sole
discretion at any time without prior notice).
• to let us verify the information you provide and obtain credit reports
and other credit-related information about you at any time, such as
payment and employment information (whether for margin or any
other purpose), and to permit any third-party financial service provider
to do likewise.
• to authorize Fidelity to lend property of yours that has been pledged
as collateral, and to comply with all provisions of this agreement
concerning margin, including determining that margin borrowing is
appropriate for you, based on your own careful examination of your
financial resources, investment objectives, and risk tolerance.
• to refer to the Customer Agreement for more on Fidelity’s brokerage
fee schedules, fees for various features and services, and margin
borrowing charges. Note that foreign jurisdictions may impose
additional fees, taxes, or other charges from time to time, which may
not be reflected in the fee schedule in effect at that time. By placing a
trade in a foreign security, you agree to pay any such applicable fees,
taxes, or other charges, regardless of notice.
• that the credit balance in the short account will be decreased or
increased in accordance with the corresponding market values of all
short positions. Corresponding debits or credits will be posted to the
margin account. These entries in the margin account will, of course,
affect the balance on which interest is computed. Credits in your short
account, other than marking to market, will not be used to offset your
margin account balance for interest computation.
If you have any questions or concerns about your margin account or
margin generally, please contact Fidelity.
Limits to Our Responsibility
Although we strive to ensure the quality and reliability of our services,
including electronic services (such as online, wireless, and automated
telephone services), neither we nor any third party whose services we
arrange for are responsible for the availability, accuracy, timeliness, com-
pleteness, or security of any service related to your account.
You therefore agree that we are not responsible for any losses you incur
(meaning claims, damages, actions, demands, investment losses, or other
losses, as well as any costs, charges, attorneys’ fees, or other fees and
expenses) as a result of any of the following:
• The acceptance and processing of any order placed on your account,
whether received electronically or through other means, as long as the
order reasonably appears to be authentic
• Cancellation of an accepted/executed trade in which Fidelity reason-
ably determines, in its sole discretion, that there was a data, clerical, or
other similar error in the handling or processing of the trade, including
but not limited to situations where a third party caused such error
• Investment decisions or instructions placed on your account, or other
such actions attributable to you or any authorized person
• Occurrences related to governments or markets, such as restrictions,
suspensions of trading, or high market volatility or trading volumes
• Uncontrollable circumstances in the world at large, such as wars, earth-
quakes, power outages, or unusual weather conditions
• Occurrences related to computers and communications, such as a
network or systems failure, a message interception, or an instance of
unauthorized access or breach of security
• With respect to electronically provided market data or other informa-
tion provided by third parties, any flaw in the timing, transmission,
receipt, or substance (such as any inaccuracy, error, delay, omission, or
sequence error, any nonperformance, or any interruption of informa-
tion), regardless of who or what has caused it to occur
• The storage and use of information about you and your account(s) by
our systems and transmission of this information between you and us;
these activities occur entirely at your risk
• The usage of information received by you or us through any
electronic services
• Difficulties receiving information or accessing your account that are
due to the equipment you use, including difficulties resulting from
technical incompatibilities, malfunctions, inherent limitations, or
interruptions in service
Indemnification
You agree to indemnify us from, and hold us harmless for, any losses (as
defined in “Limits to Our Responsibility”) resulting from your actions
or failures to act, whether intentional or not, including losses resulting
from actions taken by third parties. If you use any third-party services or
devices in connection with your account (such as Internet service or wire-
less devices), all service agreements and payments for these are your
responsibility. Rates and terms are set by the service providers and are
not Fidelity’s responsibility. Note that beyond taking reasonable steps to
verify the authenticity of instructions, we have no obligation to inquire
into the purpose, wisdom, or propriety of any instruction we receive.
Terms Concerning This Agreement
If you have a margin agreement with Fidelity, it is incorporated into this
one by reference (legally considered part of this document). In the case
of any conflict between the two agreements, this one will prevail.
This agreement and its enforcement are governed by the laws of the
Commonwealth of Massachusetts, except with respect to its conflicts-
of-law provisions.
All options transactions and exercises are subject to the rules and
customs of The Options Clearing Corporation and of the marketplace
where they are executed, as well as to applicable state and federal laws.
We may amend or terminate this agreement at any time. This may include
changing, dropping, or adding fees and policies, changing features and
services or the entities that provide them, and limiting the usage or avail-
ability of any feature or service, within the limits of applicable laws and
regulations. Although it is our policy to send notice to account owners
of any material changes, we are not obligated to do so in most cases.
Outside of changes originating in these ways, no provision of this agree-
ment can be amended or waived except in writing by an authorized
representative of Fidelity.
Fidelity may transfer its interests in this account or agreement to any of
its successors and assigns, whether by merger, consolidation, or other-
wise. You may not transfer your interests in your account or agreement
(including de facto transferral by giving a non-owner access to the account
using a personal identification number [PIN]), except with the prior writ-
ten approval of Fidelity, or through inheritance, corporate dissolution,
or similar circumstance, as allowed by law, in which case any rights and
obligations in existence at the time will accrue to, and be binding on,
your heirs, executors, administrators, successors, or assigns.
We may enforce this agreement against any and all account owners.
Although we may not always enforce certain provisions of this agreement,
we retain our full right to do so at any time.
If any provision of this agreement is found to be in conflict with applica-
ble laws, rules, or regulations, either current or future, that provision will
be enforced to the maximum extent allowable, or made to conform, as
the case may be. However, the remainder of this agreement will remain
fully in effect.
Disclosures
Receipt of Communications
Note that so long as we send communications to you at the physical
or electronic address of record given on the application, or to any other
address given to us by an authorized person, the communications are
legally presumed to have been delivered, whether you actually receive
them or not. In addition, confirmations and statements are legally
presumed to be accurate unless you specifically tell us otherwise.
Personal Information
For the name and address of any credit reporting agency from which
we or a card issuer has obtained information about you, send a written
request to us or the card issuer, as applicable.
Service Providers
Brokerage account and margin credit services are provided by NFS, an
affiliate of FBS. Services available through this account are the property
of Fidelity or the third parties from which Fidelity has obtained rights.
Routing of Orders
Some options are traded in more than one marketplace. Absent any
specific instructions from you, we may choose the market in which your
transactions in these options are executed.
Resolving Disputes — Arbitration
This agreement contains a predispute arbitration clause. Under this
clause, which you agree to when you sign your account application,
you and Fidelity agree as follows:
A. All parties to this agreement are giving up the right to sue each
other in court, including the right to a trial by jury, except as pro-
vided by the rules of the arbitration forum in which a claim is filed.
B. Arbitration awards are generally final and binding; a party’s ability to
have a court reverse or modify an arbitration award is very limited.
C. The ability of the parties to obtain documents, witness statements,
and other discovery is generally more limited in arbitration than in
court proceedings.
D. The arbitrators do not have to explain the reason(s) for their award
unless, in an eligible case, a joint request for an explained decision
has been submitted by all parties to the panel at least 20 days prior
to the first scheduled hearing date.
E. The panel of arbitrators may include a minority of arbitrators who were
or are affiliated with the securities industry.
F. The rules of some arbitration forums may impose time limits for bring-
ing a claim in arbitration. In some cases, a claim that is ineligible for
arbitration may be brought in court.
G. The rules of the arbitration forum in which the claim is filed, and any
amendments thereto, shall be incorporated into this agreement.
All controversies that may arise between you and us concerning
any subject matter, issue or circumstance whatsoever (including,
but not limited to, controversies concerning any account, order,
distribution, rollover, advice interaction or transaction, or the
continuation, performance, interpretation or breach of this or any
other agreement between you and us, whether entered into or
arising before, on or after the date this account is opened) shall be
determined by arbitration in accordance with the rules then prevailing
of the Financial Industry Regulatory Authority (FINRA) or any United
States securities self-regulatory organization or United States securities
exchange of which the person, entity or entities against whom the
claim is made is a member, as you may designate. If you commence
arbitration through a United States self-regulatory organization or
United States securities exchange and the rules of that organization or
exchange fail to be applied for any reason, then you shall commence
arbitration with any other United States securities self-regulatory
organization or United States securities exchange of which the person,
entity or entities against whom the claim is made is a member. If you
do not notify us in writing of your designation within five (5) days
after such failure or after you receive from us a written demand for
arbitration, then you authorize us to make such designation on your
behalf. The commencement of arbitration through a particular self-
regulatory organization or securities exchange is not integral to the
underlying agreement to arbitrate. You understand that judgment
upon any arbitration award may be entered in any court of competent
jurisdiction.
No person shall bring a putative or certified class action to arbitra-
tion, nor seek to enforce any predispute arbitration agreement
against any person who has initiated in court a putative class action;
or who is a member of a putative class action who has not opted out
of the class with respect to any claims encompassed by the putative
class action until: (i) the class certification is denied; or (ii) the class
is decertified; or (iii) the customer is excluded from the class by the
court. Such forbearance to enforce an agreement to arbitrate shall not
constitute a waiver of any rights under this agreement except to the
extent stated herein.
1.734349.118
On this form, “Fidelity” means Fidelity Brokerage Services LLC and its affiliates. Brokerage services are provided by Fidelity Brokerage Services LLC,
Member NYSE, SIPC. 439614.11.0 (11/20)
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Completed 15 March 2021

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