Alpaca Margin Disclosure Statement
We are furnishing this document to you to provide some basic facts about purchasing securities
on margin, and to alert you to the risks involved with trading securities in a margin account.
Before trading stocks in a margin account, you should carefully review the margin agreement
provided by your broker. Consult your broker regarding any questions or concerns you may havewith your margin accounts.
When you purchase securities, you may pay for the securities in full or you may borrow part ofthe purchase price from your brokerage firm. If you choose to borrow funds from your firm, youwill open a margin account with the firm. The securities purchased are the firms collateral for theloan to you. If the securities in your account decline in value, so does the value of the collateralsupporting your loan, and as a result, the firm can take action, such as issue a margin call and/orsell securities in your account, in order to maintain the required equity in the account.
It is important that you fully understand the risks involved in trading securities on margin. Theserisks include the following:●You can lose more funds than you deposit in the margin account. A decline in the valueof securities that are purchased on margin may require you to provide additional funds tothe firm that has made the loan to avoid the forced sale of those securities or othersecurities in your account.

●The firm can force the sale of securities in your account. If the equity in your accountfalls below the maintenance margin requirements under the law, or the firms higher houserequirements, the firm can sell the securities in your account to cover the margin
deficiency. You also will be responsible for any shortfall in the account after such a sale.

●The firm can sell your securities without contacting you. Some investors mistakenly
believe that a firm must contact them for a margin call to be valid, and that the firmcannot liquidate securities in their accounts to meet the call unless the firm has contacted
them first. This is not the case. Most firms will attempt to notify their customers ofmargin calls, but they are not required to do so. However, even if a firm has contacted acustomer and provided a specific date by which the customer can meet a margin call, thefirm can still take necessary steps to protect its financial interest, including immediately
selling the securities without notice to the customer.

●

You are not entitled to choose which security in your margin account is liquidated or soldto meet a margin call. Because the securities are collateral for the margin loan, the firm
has the right to decide which security to sell in order to protect its interests.

●The firm can increase its house maintenance margin requirement at any time and is not
required to provide you advance written notice. These changes in firm policy often takeeffect immediately and may result in the issuance of a maintenance margin call. Your
failure to satisfy the call may cause the member to liquidate or sell securities in youraccount.

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You are not entitled to an extension of time on a margin call. While an extension of time
to meet margin requirements may be available to customers under certain conditions, acustomer does not have a right to the extension.

●The IRS requires Broker Dealers to treat dividend payments on loaned securities
positions as a substitute payment in lieu of a dividend. A substitute payment is not, aqualified dividend and is taxed as ordinary income.

●Industry regulations may limit, in whole or in part, your ability to exercise voting rightsof securities that have been lent or pledged to others. You may receive proxy materials
indicating voting rights for a fewer number of shares than are in your account, or you
may not receive any proxy materials.

Alpaca Credit Terms and Policies
The following Disclosure of Credit Terms and Policies is required by the Securities andExchange Commission and is part of your Alpaca Account Customer Account Agreement. It
describes the terms under which we extend credit and charge interest and how your obligations
are secured by property in your Account.
Interest Charges. We will charge interest on a daily basis on the credit we extend to you. The
daily interest charges are calculated by multiplying your "daily adjusted debit balance" by the"daily margin interest rate." Generally speaking, your daily adjusted debit balance is the actual
settled debit balance in your Margin and Short Account, increased by the value of securities held
short and reduced by the amount of any settled credit balance carried in your Cash Account.
We calculate your daily-adjusted debit balance each day by adjusting your previous day's balanceby any debits and credits to your account and by changes in the value of short positions. If yourdaily-adjusted debit balance is reduced because you deposit a check or other item that is laterreturned to us unpaid, we may adjust your account to reflect interest charges you have incurred.
We reserve the right to charge interest on debit balances in the Cash Account. Periodically, wewill send you a comprehensive statement showing the activity in your account, including
applicable interest charges, interest rates and adjusted daily debit balances.
Daily Margin Interest Rate. The "daily margin interest rate" is based on a 360-day year. It is
calculated for each day by dividing the base margin interest rate by 360. Note that the use of a360-day year results in a higher effective rate of interest than if a year of 365 days were used.
The applicable margin interest rate is the base rate for all daily adjusted debit balances. Yourmargin interest rate will be adjusted automatically and without notice to reflect any change in theBase Rate. If your interest rate increases for any reason other than a change in the Base Rate, wewill give you written notice at least 30 days' prior to that change.
Compounding Interest Charges. We compound interest on a daily basis. Interest charges willaccrue to your account each day. We will include the charges in the next day's opening debit
balance and charge interest accordingly. The interest rates described above do not reflectcompounding of unpaid interest charges; the effective interest rate, taking into effect suchcompounding, will be higher.

Initial Margin Requirements. The Federal Reserve Board and various stock exchanges
determine margin loan rules and regulations. When you purchase securities on margin, you agree
to deposit the required initial equity by the settlement date and to maintain your equity at therequired levels. The maximum amount we currently may loan for common stock (equity)
securities is 50% of the value of marginable securities purchased in your Margin and Short
Account; different requirements apply to non-equity securities, such as bonds or options. If themarket value of stock held as collateral increases after you have met the initial margin
requirements, your available credit may increase proportionately. Conversely, if the market value
decreases, your available credit may proportionately decrease.
Initial margin requirements may change without prior notice. We may impose anytime andwithout prior notice more stringent requirements on positions that in our sole discretion involve
higher levels of risk; for example, higher limits may apply for thinly traded, speculative orvolatile securities, or concentrated positions of securities.
You may purchase only certain securities on margin or use them as collateral in your Margin andShort Account. Most stocks traded on national securities exchanges, and some over-the-counter(OTC) securities are marginable. At our discretion, we reserve the right not to extend credit on
any security.
Equity securities with a market value of less than $3 per share may not be purchased on margin
or deposited as margin collateral. If the market value of a security drops below $3 per share, thesecurity will not be assigned any value as collateral to secure your margin obligations.
Margin Maintenance Requirements. You must maintain a minimum amount of equity in youraccount to collateralize your outstanding loans and other obligations. Margin maintenancerequirements are set:
●By the rules and regulations of the New York Stock Exchange, the American Stock
Exchange and other regulatory agencies to the jurisdiction of which we are subject; and●According to our sole discretion and judgment.

You agree to maintain in your Margin and Short Account collateral of the type and amountrequired by:●

Applicable exchange rules and federal regulations; and●Our Disclosure of Credit Terms and Policies; or●As required by us, at our discretion.

Margin maintenance requirements may change without prior notice.
We may issue a "margin call" (that is, a notification to deposit additional collateral) if youraccount equity falls below the margin maintenance requirement. This can happen for variousreasons. The most common reasons are a decrease in the value of long securities held ascollateral or an increase in the value of securities held short.

As a general guideline and when it is practicable to do so, we may (but are not required to) issue
a margin call when the equity in your Margin and Short Account falls below a predetermined
percentage of the market value of assets at risk (that is, the sum of the market values of the longand short equity security positions) in your Margin and Short Account. The amount of additional
collateral we require usually is an amount sufficient to raise your equity to minimum standards.
For information on the current equity requirements, please contact your broker.
We retain absolute discretion to determine whether, when and in what amounts we will require
additional collateral. In some situations, we may find it necessary to require a higher level ofequity in your account. For example, we may require additional collateral if an account contains:●

Only one security or a large concentration of one or more securities; or●

Low-priced, thinly traded or volatile securities; or if●

Some of your collateral is or becomes restricted or non-negotiable or non-marginable. We
also mayconsider market conditions and your financial resources.