Margin Trading Services: At a Glance

Margin Trading Services: At a Glance

Version: v3. Last updated: August 2026.

Commencement and licensing status. Rain MENA FZE has received In-Principle Approval from the Virtual Assets Regulatory Authority ("VARA") under reference IPA/26/04/001 in respect of Broker-Dealer Services and Exchange Services, including Margin Trading on a spot basis. Rain MENA FZE does not yet hold the corresponding VA Activity Licence. The Margin Trading Services described here, and the related terms, take effect upon and are conditional on the grant of that Licence. Until the Licence is granted, no Margin Trading Services are offered or provided.

What is Margin Trading?

Margin Trading refers to the service under which Rain MENA FZE finances a portion of a client's virtual-asset transactions, secured by the client's assets in the Margin Trading Account. Clients may open leveraged long or short positions on a spot basis using existing assets as collateral. Rain MENA FZE does not provide unsecured credit or custody re-hypothecation.

Eligibility and Supported Assets

Only users outside restricted jurisdictions may participate. Rain MENA FZE restricts margin-eligible Virtual Assets to:

• Bitcoin (BTC)
• Ethereum (ETH)
• Solana (SOL)
• Ripple (XRP)
• USD / AED-referenced Virtual Assets as approved by VARA

These Virtual Assets have been assessed as meeting the liquidity requirements to ensure they can be liquidated within a reasonable timeframe.

Client Classification

Based on information provided during the Margin Suitability Test, Rain MENA FZE will categorise users as either: (1) Retail Investor, (2) Qualified Investor, or (3) Institutional Investor.

Both the range of available Margin Trading Services and, in the future, the maximum leverage obtainable may vary according to classification. At present, Rain MENA FZE applies a uniform maximum leverage of five times (5x), with an Initial Margin of 20% of notional position value, to all client classes (Retail, Qualified and Institutional). Any higher leverage for Qualified or Institutional Investors will apply only if and when authorised under Rain MENA FZE's VARA-approved margin policy and supported by your Suitability Assessment.

Initial Margin Requirements

Initial Margin is the minimum value of assets that must be deposited in the Margin Trading Account, or otherwise available but not committed to an existing position, before opening any new position. Rain MENA FZE applies a uniform Initial Margin of 20% of notional position value for all investor types, being a maximum leverage of 5x (Leverage Limit = 1 / Initial Margin). Notional Position Value = Number of Units of Virtual Asset x Current Market Price. Clients must deposit the Initial Margin before purchase; only fully cleared deposits may be used for trading.

Maintenance Margin Requirements

Maintenance Margin is the value of assets that must be available in the Margin Trading Account to keep a position open. Maintenance Margin Percentage = (Total Client Assets in Margin Trading Account / Total Position Value) x 100%, valued using the Composite Mark Price. The required Maintenance Margin threshold is 10%. Rain MENA FZE may change it from time to time, but only with VARA's prior approval before the change takes effect.

Withdrawing or Transferring Funds

You can only withdraw or transfer value that sits above your Initial Margin (20%), not down to the Maintenance Margin (10%). This protects you from withdrawing straight into a margin call.

Acceptable Collateral Types

Rain MENA FZE may only accept the following types of collateral: (1) the Virtual Asset financed on Margin in that account; (2) fiat currency; (3) Virtual Assets referencing USD or AED, as approved by VARA. In special circumstances (a consistently falling market value of the financed Virtual Asset, or suspension of trading for more than seven working days or such other period prescribed by VARA), other Virtual Assets may be accepted as collateral, subject to the same liquidity standard and to prior approval by Rain MENA FZE's Risk and Compliance functions. Rain MENA FZE ensures, and can demonstrate to VARA on request, that collateral is liquid and can be liquidated within a reasonable timeframe.

Margin Rate Adjustments

Rain MENA FZE reserves the right to adjust Initial Margin and Maintenance Margin rates based on: (1) market volatility; (2) liquidity conditions; (3) regulatory requirements from VARA; (4) risk assessment of specific clients or Virtual Assets. Changes will be communicated in accordance with the Margin Trading Agreement and with prior VARA approval before implementation.

Early Warning and Margin Call Framework

Rain MENA FZE operates a single, deterministic three-level escalation framework, executed automatically by reference to the Composite Mark Price:

Level 1 Early Warning Notification: when ownership percentage falls to 15%, Rain MENA FZE notifies the client by in-app message, push notification, and/or email, including the current Maintenance Margin ratio and a full restatement of margin-trading risks.

Level 2 Margin Call: When ownership falls below the required Maintenance Margin (10%), Rain MENA FZE notifies the client of the shortfall, specifying the exact amount and a fixed six (6) hour remediation period to restore the account by depositing additional collateral, closing all or part of the positions, or a combination.

Level 3 Forced Liquidation: liquidation happens in one of two ways, and both are automatic.

The six (6) hours run out. If you have not restored the account by the end of the six hour remediation period, Rain MENA FZE closes out the position in full. The six hours are fixed: Rain MENA FZE does not shorten them because of market conditions, and you are not entitled to any longer period.

Your ownership falls to or below 5%. 5% is the Liquidation Threshold. If your ownership percentage reaches or drops below it at any time, Rain MENA FZE closes out the position in full immediately, whether or not a remediation period is running, and without further notice. The 5% floor overrides the six hours.

In both cases the whole position is closed out. There is no partial liquidation: the position is not reduced to a target margin level. Liquidation is executed at the Composite Mark Price (a volume-weighted index of major spot exchanges over a rolling 30-second window, excluding outliers, disclosed on the Rain website), with a liquidation statement provided within 24 hours of completion.

Account Segregation and Client Protection

All Margin Trading Accounts are ring-fenced from spot trading wallets. Client assets used as collateral are held in segregated omnibus wallets, not re-hypothecated or pledged to third parties. Daily reconciliation is performed by Finance and Compliance functions. Rain MENA FZE does not utilise the funds of any client to provide the facilities of Margin Trading to another client, even if the client's consent has been obtained. For clients with multiple Margin Trading Accounts, Rain MENA FZE monitors risk limits at the client level.

VARA's Regulatory Powers

VARA has the power to instruct Rain MENA FZE to take any of the following actions, and Rain MENA FZE must comply: suspending Margin Trading services for specified Virtual Assets or clients; closing existing client positions; increasing Initial Margin and/or Maintenance Margin requirements. Rain MENA FZE will implement any such instructions immediately upon receipt and will notify affected clients.

Amplified Gains and Losses

Leverage magnifies both profits and losses. For example, a 5% market move on a 1 BTC position with 0.1 BTC margin equates to a 50% gain or loss. You may lose all or part of the funds in your Margin Trading Account.

How losses are treated depends on your client classification:

• Retail Investors: your liability is limited to the assets in your Margin Trading Account. You cannot lose more than the assets you have posted. If a negative balance remains after liquidation, Rain MENA FZE absorbs it from its own resources and will not pursue you for it. This is Rain MENA FZE's own commitment to you.
• Qualified Investors and Institutional Investors: you may lose more than your initially deposited assets. If a negative balance remains after liquidation, you remain liable for it. Rain MENA FZE may recover it by enforcing its security over the margin collateral you pledged, by set-off against your own cash balances held with Rain MENA FZE (with your consent to any currency or asset conversion), and through lawful debt-recovery or legal process, together with interest and reasonable costs, to the fullest extent permitted by applicable law. This does not reach any virtual assets you hold in general custody outside your pledged margin collateral.

Getting Started and Enabling Margin Trading

Users toggle on in the platform to activate margin trading services and accept the Margin Trading Addendum when prompted. Before opening a Margin Trading Account, Rain MENA FZE must obtain information to determine whether the service is suitable, including financial position (including solvency), investment objectives and risk appetite, and knowledge and experience in Virtual Asset trading.

Adjusting Your Order

Users set quantity, value, and price manually or use the slider to allocate between their own funds and borrowed funds, with a real-time display of borrowing versus maximum limit.

Executing and Managing Trades

This section covers how to execute orders and manage trades via the platform.

Supported Coins and Interest Calculation

Only coins listed on the Rain MENA FZE website are supported. The formula for how Rain MENA FZE calculates interest is set out on the Interest Rates Applicable to Margin Trading Services page.

Monthly Account Statements

Rain MENA FZE provides clients with monthly account statements on the platform showing the trading movement of the Virtual Assets financed on Margin and the percentage of the client's ownership in the Margin Trading Account relative to any Virtual Assets, cash or other assets held as Maintenance Margin.

Record Retention

Rain MENA FZE ensures that orderly records are kept for the Margin Trading services for a period of at least eight (8) years.