Swap-free Terms Can Be Revoked

This clause is the broker telling you which reality wins when things get messy. Translation: swap/financing rates can change, and holding costs can materially affect outcomes.

Financing reflects interest differentials, broker costs, and risk. Brokers reserve discretion because upstream costs change.

• Carry trades can bleed unexpectedly.
• Spreads and swaps can worsen during stress.
• Holding long-term without modeling financing is hidden leverage.

• Model holding costs in your expectancy, not as an afterthought.
• Avoid holding oversized leverage over long windows.
• Review swap changes periodically and treat sudden changes as a regime signal.

If swaps swing wildly relative to peers, your broker’s pricing may be uncompetitive or defensive.

Any strategy built purely on fee arbitrage is fragile to discretionary terms.

Survival note: holding costs are slow losses that create pressure and bad decisions.