This Leveraged Trading Service Agreement (“this Agreement”) is an agreement between this Website (or “the Platform”) and the User (“You”) regarding your use of the leveraged digital assets loan and leveraged trading service (“the Service”) provided by this Website. By visiting and logging onto this Website (including the API, mobile application and other client devices of this Website), using any services provided by this Website (including the mobile applications of this Website), or clicking on “I Have Read and Agree” button, you confirm that you have read, understood and accepted all the terms and conditions stipulated herein and all the terms and conditions stipulated in the User Agreement. If you do not agree to any of the terms or conditions of this Agreement or the User Agreement, please stop visiting this Website and stop using the Service. If you continue to visit this Website or use the Service, you shall be deemed to have unconditionally agreed to the entire content of this Agreement and the User Agreement.

1. Scope and Application of the Agreement. This Agreement applies to your use of this Website for leveraged trading. This Agreement is a supplementary agreement to the User Agreement. In case of any inconsistency between this Agreement and the User Agreement, this Agreement shall prevail. Matters not expressly provided herein shall be governed by the User Agreement.

2. Modification to the Agreement. This Website shall reserve the right to decide, modify or alter this Agreement at any time in its sole discretion. Any and all modifications or alternations to this Agreement shall become effective immediately after they are published on this Website or sent to the Users. Therefore, if you continue to use the Service on this Website, it shall be deemed that you accept the revised agreement and rules. If you do not agree to any modification to this Agreement, please stop using the Service immediately. This Website recommends that you review this Agreement frequently to ensure that you understand the terms and conditions applicable to your access to and use of the Service.

3. Voluntary Act. Your leveraged trading on this Website is your voluntary act conducted in accordance with your own financial situation after you understand the relevant risks you face, and shall have no connection with this Website or any third party:

4. Risk Disclosure. When conducting leveraged trading on this Website, you may receive high investment returns, but at the same time, there are also great investment risks. In order to help you better understand the risks, in accordance with the relevant laws and regulations, administrative rules and relevant national policies, we hereby give you a warning of risks in leveraged trading. Please read it carefully. The risks in your leveraged trading on this Website include, but are not limited to:

(1) Inherent risks in digital assets: The digital assets market is brand new and unrecognized and may not grow. At present, digital assets are largely used by speculators and rarely used in mainstream retail and commercial markets. As a result, prices of digital assets are prone to fluctuations, which in turn have a negative impact on digital assets investment. Unlike the stock market, the digital assets market does not have a “limit up-limit down” mechanism, and is open for trading 24 hours a day. The prices of digital assets are apt to fluctuate sharply due to the central bank’s controls and national regulatory policies, which means that the price may go up several times or drop by half within a day. Therefore, you must understand and agree that you shall bear all the economic losses caused to you by the digital assets themselves.

(2) Policy risks: Due to the development or amendment of laws, regulations and normative documents concerning digital assets in various countries, trading in digital assets may be suspended or prohibited at any time. You must understand and agree that you shall bear all the economic losses caused by the suspension or prohibition of trading in digital assets due to the development or amendment of national laws, regulations and normative documents.

(3) Internet and technical risks: This Website does not guarantee that all the information, programs, texts, etc. contained therein are completely safe and free from interference and destruction by any malicious programs such as viruses and Trojans. Therefore, it is your personal decision to log onto and use any services of this Website or download and use any programs, information and data downloaded from this Website. Meanwhile, there are risks in using the trading system on the Internet, including but not limited to the failure in software, hardware and Internet links. As this Website cannot control the reliability and availability of the Internet, this Website shall not bear any responsibility for distortion, delay and link failure. At the same time, the Users shall bear the risks and losses caused by various factors such as server gateway bottleneck and unstable website access.

(4) Force majeure risks: This Website shall not be responsible for the failure or delay of service and the loss caused to you due to information network equipment maintenance; information network connection failure; failure of computers, communication or other systems; power failure; hacker attacks; weather conditions; accidents; strikes; labor disputes; violent upheavals; insurrection; riots; insufficient productivity or means of production; fires; floods; storms; explosion; wars; reasons attributable to banks or other partners; digital assets market collapse; act of the government; orders of judicial or administrative authorities; other actions beyond control of this Website; or reasons attributable to any third party.

(5) Market information risks: This Website does not guarantee the correctness and applicability of market information analysis and market evaluation. This Website cannot control information or suggestions you have obtained or will obtain from the intermediaries or any other agency or employee, nor does this Website support or guarantee the accuracy or completeness of trading. All the risks or consequences arising therefrom shall be borne by you and have no connection with this Website.

(6) Risks of sealing-up and freezing: When a competent authority presents corresponding investigation documents and asks this Website to cooperate with the investigation of your account, assets or trading data on this Website, or takes measures to seal up, freeze or transfer your account, this Website shall assist in providing your corresponding data or performing corresponding operations as required by the competent authority, and the User shall assume full responsibility for the privacy disclosure, inability to operate the account, losses, etc. arising therefrom.

(7) Other risks: You shall be solely liable for any loss in the following circumstances: (a) losses caused by losing your account, forgetting your password, your improper operation and wrong investment decisions, etc.; (b) losses caused by online entrustment, failure to exit in time after hot key operation, malicious operation by others; (c) losses caused by the leveraged trading by others on your behalf on this Website; and (d) losses caused by any other accident and not attributable to this Website.

Note: If you participate in leveraged loans and leveraged trading on this Website, you shall control the risks by yourself, evaluate the value and risks of digital assets investment, and bear the economic risks of losing all your investments. You shall trade according to your financial conditions and risk tolerance, and be aware of the risks of investing in digital assets. You may make a profit as well as facing the risk of losing money when you make leveraged investment in digital assets. The risk disclosure herein does not reveal all the risks of leveraged trading in digital assets. Please be sure to have a clear understanding of the foregoing. There are risks in the market; be cautious in investment.

5. Definitions. For the purpose of this Agreement, the following terms shall have the following definitions:

(1) Leveraged Trading: refers to transactions conducted on this Website using the leveraged digital assets loan.

(2) Leveraged Account: refers to the virtual subaccount under the User’s existing UID account, which is used specifically for holding margin and leveraged digital assets loan. Its asset accounting is independent from other subaccounts under the User’s UID account.

(3) Leveraged Loan: refers to a digital assets loan applied through this Website for the purpose of leveraged trading.

(4) Margin: refers to a certain amount of digital assets that you must transfer in advance to a designated leveraged account as a guarantee for leveraged loans.

(5) Risk Rate: refers to the risk rate of the leveraged account, which is calculated based on the amount of leveraged loans in each leveraged account and the total value of effective assets in the account.

(6) Forced Liquidation: refers to the situation where this Website has the right to dispose of all assets in your leveraged account at its sole discretion to recover the loans and collect the corresponding service fee when the risk rate of your leveraged account reaches a certain standard. It is also known as “FL”.

6. Service Type. This Website offers two types of leveraged trading services: isolated leveraged trading and cross leveraged trading. Different leveraged trades are subject to different business rules, and the User shall carefully read and agree to abide by the corresponding business rules when using any leveraged trading service.

7. Qualification. When using the Service, the User must have completed account registration and authentication in accordance with the User Agreement, and legally hold a valid UID account and login password.

8. Leveraged Account Setup. When the User applies for a leveraged digital assets loan for the first time, this Website will automatically set up a leveraged account for the User, which is only used to hold the digital assets related to the accounting of the leveraged loan. The applicable type of digital assets shall be determined according to the type of leveraged trading selected by the User and the corresponding business rules. The account or login password of the leveraged account is the same as the UID account and login password of the User, and the User can operate the leveraged account after logging onto his/her UID account.

9. Margin Transfer. Prior to applying for a leveraged digital assets loan, the User must transfer required margin to the designated leveraged account. The type of the margin and the type of digital assets that can be loaned shall be determined according to the type of leveraged trading selected by the User and the corresponding business rules.

10. Loan Application. Upon transfer of the margin to the designated leverage account, the User may apply for leveraged loan within the maximum amount allowed on this Website.

11. Fees. The User acknowledges and agrees that there may be related fees such as service fees and handling fees when using this Service, and agrees to pay the corresponding fees according to the requirements of this Agreement. The service fee for a leveraged loan shall be calculated on an hourly basis from the time you receive the leveraged digital assets loan; any period less than one hour shall be deemed as one hour. The service fee standard and payment method of the leveraged loan shall be subject to the corresponding business rules. The handling fee standard and payment method shall be subject to the User Agreement and relevant business rules or announcements on transaction fees on the Platform.

12. Loan Repayment. The User shall promptly repay the digital assets loan in accordance with the provisions hereof. Each application for and repayment of the loan is treated as one transaction. The service fee for each loan will be paid to this Website upon its repayment.

13. No Right to Airdrop Rewards. If the User has borrowed digital assets for which the holders of such digital assets will be granted an airdrop reward (a “Borrowed Airdrop Reward”), the User shall have no rights (legal or equitable) over such airdrop reward.

14. Repayment of Digital Asset Loan due to Borrowed Airdrop Reward. From time to time, the Platform publishes notice of airdrop rewards. Airdrop rewards will be granted to holders of a relevant digital asset based on a snapshot of the holders of said digital asset at a certain time (the “Snapshot”). In the event that a User has borrowed the relevant digital asset, the Platform will notify the User (including but not limited to via email or SMS) to return the relevant borrowed digital assets prior to the Snapshot.

15. Platform Rights. If the User does not return the relevant borrowed digital assets prior to the Snapshot, the User agrees and acknowledges that he/she will be liable to the Platform for the Borrowed Airdrop Reward (regardless of whether the User had received the Borrowed Airdrop Reward), and that the Platform has the right to transfer the Borrowed Airdrop Reward from the User’s account to the Platform’s proprietary wallets. Until the Platform has carried out such transfer, it may, at its sole discretion, restrict the User from withdrawing his/her digital assets from the Platform.

16. In order to ensure the security of funds, the User understands and agrees that this Website reserves the right to restrict transfers to your leveraged account if you have any loan outstanding.

17. Forced Liquidation. When your total assets in the leverage account on this Website are less than 110% of the actual limit of loans, this Website shall have the right to force the purchase or sale of all assets in your leveraged account at the real-time order price of this Website to repay the loan. If the prices are volatile, and the system cannot force the liquidation or the loan and related service fees still cannot be paid off after forced liquidation, or there are other losses caused to this Website, this Website shall have the right to continue to recover from you, or at any time when you transfer a digital asset into the leveraged account, this Website shall have the right to use the digital asset to pay off the previous loan and related service fee or indemnify for other losses.

18. Exceptional Forced Liquidation. In an extreme special market situation, or if the token type of your leveraged loan has a systemic risk or is likely to have a systemic risk, this Website shall have the right to notify you to repay the loan in advance or directly force the liquidation to pay off the loan and service fee. If the loan and related service fees still cannot be paid off after forced liquidation, or other losses are caused to this Website, this Website shall have the right to continue to recover from you; or at any time when you transfer a digital asset into the leveraged account, this Website shall have the right to use the digital asset to pay off the previous loan and related service fee or indemnify for other losses.

19. Right of Set-off. The Platform shall have the right to set-off any amounts owing to it by a User, including and not limited to paragraph 15 (Platform Rights) from the User’s exchange account and sub-accounts. In the event that the User owes the Platform a particular digital token which the User does not have in his/her exchange account and sub-accounts, the Platform shall have the right to set-off such equivalent amount of a different digital token (such amount based on the exchange rates on https://coinmarketcap.com/ at the time of set-off) from the User’s exchange account and/or sub-accounts.

20. When using the Service, the User shall comply with applicable laws and regulations, the business rules related to leveraged loan, and the provisions hereof and of the User Agreement.

21. This Website reserves the right to unilaterally, at any time, suspend or terminate leveraged loan trading in a token or of some (or all) token types and related services for risk control purposes. In an extreme special market situation, or if the token type of your leveraged digital assets loan has a systemic risk or is likely to have a systemic risk, this Website shall have the right to notify you to repay the loan in advance or force the liquidation of your positions in accordance with the provisions of exceptional forced liquidation herein.

22. Any contradiction between the terms of this Agreement and any other agreement or terms and conditions the User may have entered into pursuant to the User’s use of the Platform and its services, shall be resolved at the Platform’s sole discretion.

23. The annexes hereto are an integral part of this Agreement and have the same legal effect as the text of this Agreement.

 

Annex I: Cross Leveraged Trading Rules

1. General

1.1 The Rule are formulated in accordance with the principles of fairness, openness and impartiality in order to regulate the leveraged trading and loan of digital assets, maintain the market order and protect the legitimate rights and interests of investors.

1.2 The Rule are additional to the Leveraged Trading Service Agreement.

1.3 The Rule shall apply to the cross leveraged loans and cross leveraged trading on this Website. Where there is no provision in the Rule, the Leveraged Trading Service Agreement, User Agreement and other relevant provisions of this Website shall apply.

2. Margin

2.1 The User shall provide margin for cross leveraged trading, which is equal to the net assets in his/her cross leveraged account multiplied by the corresponding margin adjustment coefficient.

2.2 The margin adjustment coefficient refers to the coefficient for the conversion of the margin of a token type at its market price when calculating the margin amount.

2.3 The range of margin token types shall be subject to announcements of the Platform, and the adjustment coefficient for the margin of a single token type shall be subject to announcements.

2.4 To ensure the security of assets, the Platform has the right to adjust the margin adjustment coefficient and the token type of the margin, subject to the announcements issued by the Platform from time to time.

2.5 To control risks, the Platform has the right to set a limit for the margin of a token type, that is, assets in excess of the limit for the token type shall not be included in the loanable amount.

3. Loan Rules

3.1 The maximum amount of a leveraged loan is the maximum amount of tokens that the User can borrow for the current leveraged trading. The Platform will calculate the current maximum amount of a leveraged loan for the User based on the maximum amount that the User can borrow for cross leverage, the adjustment coefficient for loans of certain token type, risk control rules of the Platform, and other restrictions.

For purposes of these Rules, maximum amount of a leveraged loan = [net assets in the cross leveraged account equivalent *(maximum leverage multiple -1) - borrowed assets outstanding]/ adjustment coefficient for loans of certain token type

Wherein, net assets in the cross leveraged account equivalent = min(net assets in the cross leveraged account, margin limit) * margin adjustment coefficient

3.2 The adjustment coefficient for digital assets loans is the coefficient for the conversion of digital assets loans in a token type at its market price when calculating the used margin.

3.3 In order to ensure the security of assets, the Platform has the right to adjust the adjustment coefficient for digital assets loans and the type of tokens that can be borrowed, subject to the announcements issued by the Platform from time to time.

3.4 After borrowing leveraged loan, the borrowed digital assets will be transferred to the User’s cross leveraged account immediately, and the platform system will start charging immediately. The User can use the borrowed digital assets for leveraged trading in paired trading allowed by the cross leveraged trading.

4. Leverage Multiple

The amount of digital assets loans that the User can apply for depends on the principal in the account and the leverage multiple of the Platform. For example, if the Platform sets the leverage multiple for cross leverage as 5, the User can theoretically borrow digital assets that are 4 times the principal. However, due to factors such as adjustment coefficients for the margin and loans, the actual leverage multiple for the User may not be 5.

5. Rules for Calculation of the Loan Service Fee

5.1 Charging Rules: The simple interest shall be calculated based on the hourly service rate; hours in which fees are charged shall be calculated based on how long the User actually holds the loan; every 60 minutes is counted as one hour (from the time when the loan is issued by the Platform to the User’s cross leveraged account; any period less than 60 minutes shall be deemed as one hour). Fees shall be calculated once when the loan enters the User’s cross leveraged account, and shall be calculated once every hour thereafter.

5.2 The User can repay the loan in advance and pay the service fee according to the actual loan hours of the loan; any period less than one hour shall be deemed as one hour. The User shall pay the service fee first when repaying the loan.

5.3 The loan service fee will be accounted for in the risk rate if it is not paid. If the service fee is not offset and is unpaid for a long time, the risk rate of the User’s cross leveraged account may drop below the liquidation line, resulting in the risk of forced liquidation of the account. The User shall periodically take the initiative to pay off the service fee or leave a full available balance in the leveraged account.

6. Rules for Loan Repayment and Position Holding Rewards

6.1 Rules for Loan Repayment: The User can manually select the loan order to be repaid. They shall repay the earliest loan order first, and shall pay off the service fee before paying off the principal. After paying off the principal and due service fee of a single loan order, the status of the single loan order will become “paid off”, and the order will no longer be charged thereafter.

6.2 Rules for Position Holding Awards: The User will not be rewarded for holding leveraged digital assets loans. If the currency generates rewards (including but not limited to airdrops) during the borrowing period, the user shall return the rewards when returning the loan.

7. Risk Control

7.1 The Platform shall have the right to set the position limit for a single token type, which is used to calculate the risk rate, the purchase limit and the mount that can be transferred out of the cross leveraged account.

7.2 The User involved in the leveraged loan shall convert the net assets within the margin limit of his/her cross leveraged account as the margin, and the digital assets in other accounts shall not be included in the margin for cross leveraged trading.

7.3 The Platform shall have the right to monitor the risk rate of the User’s cross leveraged account in real time and take corresponding measures according to the change of risk rate.

For the purpose of these Rules, risk rate of the cross leveraged account = total value of assets within the position limit/ (total value of liabilities + unpaid service fee)

Wherein, the conversion of market value is denominated in USDT;

Total value of assets = current total market value of the digital assets within the position limit of the cross leveraged account. The portion of assets exceeding the position limit is not accounted for in the account risk rate.

Total value of liabilities = current total market value of all digital assets loans outstanding in the cross leverage account

Unpaid service fee = amount of each loan * duration of the loan at the time of calculation * hourly service rate - offset/paid service fee

7.4 When the risk rate of the cross leveraged account reaches 120% (“warning line”), the system will send a message to the User via his/her contact information, notifying the trading risk. Upon receipt of the message, the User shall repay the loan or transfer the full amount of the margin from the exchange account in a timely manner to ensure that the conversion rate of the margin remains above the warning line.

7.5 When the risk rate of the cross leveraged account reaches 110% (the “forced liquidation line”), the system will automatically trigger the forced liquidation, liquidating the positions in the cross leveraged account held by the user, and automatically repaying all leveraged loans of the User. If the User has more than one leveraged loan, the repayment will be made in chronological order as the loan occurs, and the loan that occurs first will be repaid first. If all the assets in the User’s cross leveraged account are insufficient to repay all loans (“worn-out position”), the Platform shall have the right to continue to recover debts from the User.

7.6 The Platform shall have the right to limit the purchase amount of tokens of a single type, to avoid reduced risk rates or even forced liquidation triggered by the purchase of tokens exceeding the position limit.

Purchase amount available = max (position limit – holding of tokens, 0) +max [(risk rate of the cross leveraged account - threshold of the buying quota risk rate) * (total value of liabilities + unpaid service fee)/ latest trading price for USDT paired trading, 0]

Wherein, the conversion of market value is denominated in USDT.

The threshold of buying quota risk rate is the threshold set by the Platform, who will adjust the threshold from time to time according to the market risk, subject to the announcements of the Platform.

7.7 The User shall be aware of the risks of leveraged trading and adjust the proportion of positions in time to avoid the risk of forced liquidation. All losses caused by leveraged account triggering forced liquidation shall be borne by the User, including but not limited to: the losses caused by the User’s failure to take appropriate measures in time after receiving the prompt message sent by the system because the risk rate of isolated leverage account reaches the warning line and then quickly reaches the forced liquidation line.

7.8 The Platform will manage the total market value of leveraged loans. When the cumulative total amount of leveraged loan on the Platform reaches the maximum amount of leveraged loan set by the Platform, the system will automatically stop leverage loan until the total market value of leveraged loan is lower than the maximum amount of leveraged loan.

7.9 The Platform will adjust the maximum amount of leveraged loan, adjustment coefficient of margin and loan, and the risk rate threshold of buying limit according to the actual market operation and risk control policies. The details please refer to The Key Elements of Cross-Margin.

7.10 After the system forcibly liquidates the cross leveraged account to repay all leveraged loan, if there is a negative-balance position, the Platform has the right to restrict the User from transferring any assets from the cross leveraged account to exchange account, or to transfer assets from the exchange account to other accounts. Meanwhile, the Platform also has the right to limit the User from withdrawing the account assets from the Platform, and the assets transferred later to the cross leveraged account will be preferentially used to return the owed leveraged loan.

7.11 To ensure the safety of all assets in the account, only when the risk rate of cross leveraged account is above 150% can the User transfer digital assets from cross leveraged account to exchange account, and the risk rate of cross leveraged account after transfer shall not be less than 150%.

Amount of transferable currency = max (currency position-position limit, 0) + max [(risk rate of cross account-150%)* (total liability + unreturned service fee) /latest trading price of USDT paired trading, 0]

8. Sub account

In Cross Leveraged Trading, the margin limit, position limit and maximum loan limit is 1/10 of the limit of the master account.

 

Annex II: Isolated Leveraged Trading Rule

1 General

1.1 The Rule are formulated in accordance with the principles of fairness, openness and impartiality in order to regulate leveraged trading and loan of digital assets, maintain the market order and protect the legitimate rights and interests of investors.

1.2 The Rule are additional to the Leveraged Trading Service Agreement.

1.3 The Rule shall apply to the isolated leveraged loans and isolated leveraged trading on this Website. Where there is no provision in the Rule, the Leveraged Trading Service Agreement, User Agreement and other relevant provisions of this Website shall apply.2 Margin

2.1 In the isolated leverage mode, the User is required to provide the required margin for the leveraged digital assets loan in each paired trading (currently the Platform accepts both the underlying currency and the denomination currency as margin) to conduct leveraged trading.

2.2 The system will set different isolated leveraged accounts for each paired trading to the User’s application for leveraged loan. Leveraged User may use the net assets in each isolated leveraged account as the margin for isolated leveraged trading in related paired trading.

3 Loan Rule

3.1 The maximum amount of leveraged loan refers to the maximum loan limit of the current leveraged paired trading. It will be calculated by the Platform based on the maximum loan amount in isolated leveraged account of the User and the Platform’s risk control rules and other restrictions.

In this Rule, the maximum amount of leveraged digital assets loan = net assets in isolated leveraged account * (maximum leveraged multiple -1) - outstanding loaned digital assets

3.2 After the successful leveraged digital assets loan, the loaned digital assets will be immediately released by the Platform to the User’s isolated leveraged account. Then the Platform system immediately starts charging, and the User may leverage the loaned digital assets in the corresponding isolated leveraged paired trading.

4 Calculation Rule for Loan Service Rate

4.1 Charging rule: The simple interest shall be calculated based on the hourly service rate; hours in which fees are charged shall be calculated based on how long the User actually holds the loan; every 60 minutes counted as one hour (from the time when the assets loan is issued by the Platform to the User’s isolated leveraged account; any period less than 60 minutes shall be deemed as one hour). Fees shall be calculated once when the loan enters the User’s isolated leverage account, and shall be calculated once every hour thereafter.

4.2 The User may repay the loan in advance, and pay the service fee according to the actual loan hours; any period less than one hour shall be deemed as one hour. The User shall return the service fee before returning the loan.

4.3 The risk rate will be included if the service fee of loan is not returned. Where no fee is available to deduct the service fee, or the service fee is not returned for a long time, it may cause the risk rate of the User’s isolated leveraged account to fall below the liquidation line, resulting in the risk of forced liquidation of this account. Please pay off the service fee periodically or leave enough available balance in the leveraged account.

5 Rules for Loan Return and Position Holding Rewards

5.1 Rules for loan return: The user can manually select the loan order to be returned. They shall repay the earliest loan order first, and shall pay off the service fee before paying off the principal. After paying off the principal and due service fee of a single loan order, the status of the single loan order will become “paid off”, and the order will no longer be charged thereafter.

5.2 Rule for Position Holding: The User will not be rewarded for holding leveraged digital assets loans. If the currency generates rewards (including but not limited to airdrops) during the borrowing period, the user shall return the rewards when returning the loan.

6 Risk Control

6.1 The User engaging in leveraged loan shall take the net assets in his isolated leveraged account differentiated by paired trading as the margin, and the digital assets in other accounts shall not be included in the margin of this isolated leveraged account.

6.2 The Platform has the right to monitor the risk rate of User’s isolated leveraged accounts in real time and take corresponding measures according to the change of risk rate.

For the purpose of this Rule, risk rate of isolated leveraged account = total value of assets/ (total value of liabilities + unreturned service fees)

Wherein, the conversion of market value is denominated in BTC;

Total value of assets = current total market value of all digital assets in the isolated leveraged account

Total value of liabilities = current total market value of all digital assets loans in the isolated leveraged account that have been borrowed but not returned.

Unreturned service fee = amount of each assets loan * loan duration as of calculation * hourly service rate-deducted/returned service fee.

6.3 When the risk rate of isolated leveraged accounts reaches 120% (the “warning line”), the system will send a message to the User via his/her contact information, notifying the trading risk. Upon receipt of the message, the User shall return the loan or transfer the full amount of the margin from the exchange account in a timely manner to ensure that the conversion rate of margin remains above the warning line.

6.4 When the risk rate of isolated leveraged account reaches 110% (the “forced liquidation line”), the system will automatically trigger the forced liquidation, liquidating the positions in the isolated leveraged account held by the user, and automatically repaying all leveraged loans of the User. If the User has more than one leveraged loan, the repayment will be made in chronological order as the loans occur, and the loan the loan that occurs first will be repaid first. If all the assets in the User’s isolated leveraged account are insufficient to repay all loans under the account (“worn-out position”), the Platform shall have the right to continue to recover debts from the User.

6.5 The User shall be aware of the risks of leveraged trading and adjust the proportion of positions in time to avoid the risk of forced liquidation. All losses caused by leveraged account triggering forced liquidation shall be borne by the User, including but not limited to: the losses caused by the User’s failure to take appropriate measures in time after receiving the prompt message sent by the system because the risk rate of isolated leverage account reaches the warning line and then quickly reaches the forced liquidation line.

6.6 The Platform will manage the total market value of leveraged loan. When the cumulative total amount of leveraged loan on the Platform reaches the maximum amount of leveraged loan set by the Platform, the system will automatically stop leveraged loan until the total market value of leveraged loan is lower than the maximum amount of leveraged loan.

6.7 The Platform will adjust the maximum amount of leveraged loan and the maximum amount of User’s loan according to the actual market operation and risk control policies.

6.8 After the system forcibly liquidates the isolated leveraged account to repay all leveraged loan, if there is a negative-balance position, the Platform has the right to restrict the User from transferring any assets from the isolated leveraged account to exchange account, and restrict the withdrawal function of this exchange account. The User shall resume the withdrawal function after paying off the loan and related service fees.

6.9 To ensure the safety of all assets in the account, only when the risk rate of isolated leveraged account is above 200% can the User transfer digital assets from isolated leveraged account to exchange account, and the risk rate of isolated leveraged account after transfer shall not be less than 200%.

Annex III: Leveraged Service Rate

At present, the Platform has two service rates and three payment policies for leveraged loan: two service rates refer to the basic rate of 0.098% and the tiered rate; three payment policies refer to the currency in which the service fee is calculated and charged, point card deduction and HT deduction (collectively as the “rate policy”).

At present, the basic service rate of leveraged loan on the Platform is 0.098% per day. In addition, eligible users are likely to enjoy a tiered service rate, which is updated daily at 4:00 (GMT+8) on the Platform and available on the appropriate page in their account.

Leveraged tiered service rate: The Platform currently implements the tiered service rate policy of leveraged loan for high quality users. The tiered service rate policy is based on the users’ trading volume in the last 30 days (converted into BTC) [trading volume in the last 30 days (converted into BTC) refers to that the system calculates the users’ trading volume in the last 30 days every day at 0:00(GMT+8), and converts it according to the closing price of BTC paired trading at 0:00] and HT random snapshot position.

According to the conditions they both meet at the same time, the Platform provides the corresponding discount rate for users meeting the corresponding conditions (the discount rate is based on the basic rate). The level and tiered rate are automatically updated daily at 4:00 (GMT+8) (users can view their leveraged rates by clicking on the “normal user rate” and “specialized user rate” on the appropriate page in their account).

Service fee: In addition to use the currency in which the service fee is calculated and charged for payment, the User may select the point card or HT deduction. The specific deduction policy is as follows:

Point card deduction: The point card is used to deduct the service fee of leveraged loan. When users with point cards make leveraged loan, the balance in their point card will be preferentially used to deduct the leveraged service fee. (1 pts = service fee equivalent to 1 USDT) If it is required to repay the service fee of leveraged loan, the corresponding points will be directly deducted from the point card as the service fee to be repaid.

Example: Take BTC/USDT as an example. If the amount loaned is 17000USDT for 3 days at a service rate of 0.098%, the User need to pay a service fee of 51 USDT. If the User has a point card, the corresponding 51 points (pts) are directly deducted from the point card as the service fee of leveraged loan.

HT deduction: When the User chooses to deduct the service fee with HT, it shall be deducted according to the currency of service fee charged and the latest market price of HT. When the currency of service fee charged is HT, no conversion is required; all other currencies shall be converted into USDT first. Find the shortest path of service fee collection currency /USDT; the priority of denomination currency is USDT>BTC>ETH>HUSD where the path lengths are the same.

Point card deduction and HT deduction are mutually exclusive. The HT deduction will be closed by default once point card deduction is started, and vice versa.

Note: The rate page shows the daily service rate. When the User make a loan, the hourly rate shall apply. (Any period less than one hour shall be regarded as one hour). Hourly service rate = daily service rate /24 hours.

Warning: The Platform reserves the right to adjust the rate policy (including the service fee rate and payment policy) from time to time in accordance with market conditions and relevant legal policies, and to notify the User from time to time by updating this Agreement and/or announcement(s) on the Platform as follows: if the User fails to repay the principal under a previous leveraged trading order at the time when the new rate policy becomes effective, the new rate policy will apply to principal on an outstanding order and the new leveraged trading order as of its entry into force.

 

Annex IV: Account Zero-Balance Position

1. Zero-Balance Position Early Warning on the Platform

The Platform will monitor the changes of assets in all loan accounts, and calculate the risk rate of changes in assets and zero-balance position order. When the risk rate of the User’s loan account reaches 120%, the User’s account will trigger an alert, and then the Platform will notify the User via text message and email.

2. Loan Account Zero-Balance Position

When the risk rate of the User’s loan account reaches 110%, the User’s account will trigger a zero-balance position, and then the Platform will notify the User via his/her contact information.

3. Zero-Balance Position Entrusted Orders

When the User reaches the status of zero-balance position, i.e., the risk rate is lower than 110%, the Platform will limit the User’s trading and cancel his/her current entrusted order, and execute the systemic zero-balance position order via the zero-balance position program until after the return of digital assets loan and outstanding service fee. After the zero-balance position, the risk rate of the account will be in a risk-free status. The remaining assets (if any) can be transferred out of the account.

Remarks:

(1) How is the entrusted order creation price of the zero-balance position order in isolated leveraged trading calculated?

In principle, it is calculated at a 100% risk rate for the User’s account. But the actual order creation price may be adjusted according to the market.

(2) How will the overdue amount be calculated and repaid in case of negative-balance account?

In case of negative-balance account, the assets in loan account < loaned assets +service rate will result in related overdue amount: overdue amount = loaned assets +service fee -assets in loaned account.

Zero-balance account will automatically return part of the assets, and the appropriate overdue amount will be added to the owed sub-account. During this period, the cross and isolated leverage will limit the account functions such as withdrawal until after repaying the overdue amount.