In order to bid quickly on bottles of whisky, we give traders on the World Whisky Index the possibility to pay with leverage. We don't charge interest when you use leverage. This option is only introduced to make trading more easier.
Of course there are some conditions to the use of this leverage. If fraud is discovered, Scotch Whisky International BV will take appropriate actions.
The leverage is 50% of the purchase value of your portfolio. For example, you have 10 bottles that you have purchased for €250,- per bottle. Your leverage is € 1.250 (50% of € 2.500).
You can now bid on bottles up till € 1.250. You will be notified in the system when you make a purchase with leverage and receive an email. After you completed the transaction you have three (3) days to pay back the leverage. When the leverage is still outstanding after three days your account will be blocked from placing buy orders, which means you can't buy on the World Whisky Index anymore. You will be notified about this via email.
If you haven't refund the leverage after the reminder, Scotch Whisky International reserves the right to sell whisky from your portfolio till the outstanding leverage is covered. This only happens after consultation with the customer.