MDB Capital/Disclosures

Sweep Program

Sweep Program

The “Sweep Program” is the automatic movement of cash balances to or from a money market mutual fund (“money market fund” or “MMF”). The deposit of funds, the sale of securities, and other activities generate cash balances in your MDB Capital account. You can choose to have the cash automatically “swept” to a money market fund. The cash balance you hold in a sweep vehicle is called your “Core Position.” Cash held in the money market fund generally earns a higher rate of interest than cash balances you have on deposit that are not “swept.” All cash held in your Core Position are readily available for withdrawal or trading purposes.  You can consider money in your Core Position a cash equivalent interest-earning vehicle. Although the purchase or redemption of a position in the MMF can take a full day to settle, we will not delay the delivery of cash to the extent possible. Cash in your account arising from account activity, such as new cash deposits and proceeds from sales can “float” in your account for a full day when in between sweep processes. These floating cash amounts are called “Intra-day Free Credit Balances.” The total free credit balance and cash equivalent balance is called your “Total Core Cash.”

With the automatic cash sweep feature, you do not need to contact your MDB Capital representative to move funds to or from your Core Position. The sweep happens automatically.

Money Market Fund Investments

MDB Capital has partnered with Invesco Advisers, Inc. to offer its money market products for you to invest in and hold your cash. Currently, MDB Capital offers the Invesco Govt & Agency Portfolio, Resource Class money market fund (symbol AGOXX) for you to select as your core position. The fund primarily invests in short-term, high-credit-quality money market instruments. These instruments are debt securities issued or guaranteed by the US government or its agencies and securities such as repurchase agreements and variable and floating rate debt obligations, all of which are collateralized by such obligations.

You could lose money by investing in a money market fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. MDB Capital and its affiliates, the fund’s sponsor, have no legal obligation to provide financial support to money market funds and you should not expect that the sponsor will provide financial support to the fund at any time.

For more information on rates/yields, service and/or 12B-1 fees, explanation of conflicts of interest, please refer to the Invesco Money Market Fund Prospectus enclosed or online at

Automatic Cash Sweep Options
Account Type Sweep Vehicle  
Money Market Mutual Fund  
Individual, Joint, Trust, or Custodial Accounts Invesco Govt & Agency Portfolio, Resource Class money market fund (Nasdaq AGOXX) available  
LLC, Corporate, or Partnership Accounts Invesco Govt & Agency Portfolio, Resource Class money market fund (Nasdaq AGOXX) available  
Non-U.S. Residents Not available  
Non-U.S. Entities Not available  

Conflicts of interest

There are conflicts of interest relating to the Sweep Program. If you hold cash balances in your account, both MDB Capital and the MDB affiliates benefit financially when your cash is “swept” to and held on deposit with them under the Sweep Program. MDB receives compensation from MDB affiliates for its services relating to the respective Sweep Program.

If you do not choose a core position, MDB Capital benefits from the possession or use of cash balances, also known as free credit balances, in your accounts, subject to restrictions imposed by Rule 15c3-3 under the Securities Exchange Act of 1934.

You can elect a money market fund as your cash sweep option. The available money market fund includes a 0.10% service fee and/or 12B-1 fee. For cash held in the money market fund, these fees to MDB are paid directly from your investment.

For more information relating to the available sweep vehicles, please refer to the Invesco Money Market Fund Prospectus online at Please also review the MDB Capital Customer Agreement.