Version 2021-12

This User Service Agreement for OTC Pledged Digital Assets Loans (“this Agreement”) is an agreement between the platform (“the Platform”) and the User (“you”) regarding your use of the OTC pledged digital assets loan service (“the Service”) provided by the Platform. By visiting and logging in the Platform (including the API, mobile applications and other client applications of the Platform), using any service provided by the Platform (including the mobile applications of the Platform) or clicking “Read and Agree”, you acknowledge that you have read, understood and accepted all the terms and conditions set forth in this Agreement and all the terms and conditions set forth in the User Agreement. If you don’t agree to any of the terms or conditions of this Agreement or the User Agreement, please stop visiting the Platform and using the Service. By continuing to visit the Platform or use the Service, you unconditionally agree 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 the Platform for OTC pledged digital assets loans. 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. The Platform 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 the Platform or sent to the User. Therefore, by continuing to use services on the Platform, you accept the revised agreement and rules. If you do not agree to any modification to this Agreement, please stop using the Service immediately. The Platform 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 use of OTC pledged digital assets loan business on the Platform is your voluntary act conducted in accordance with your own financial situation after you understand the relevant risks you face, and shall has no connection with the Platform or any third party.

4. Risk Disclosure. When conducting OTC pledged digital assets loan business on the Platform, you may get high investment returns, but meanwhile there are great investment risks. In order to make you better understand the risks, in accordance with the relevant laws and regulations, administrative rules and relevant national policies, we hereby give you a reminder of risks in OTC pledged digital assets loan business. Please read it carefully. The risks in OTC pledged digital assets loan business on the Platform include but are not limited to:

(1) Risks in digital assets themselves: 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 retail and commercial markets. As a result, prices of digital asset are prone to fluctuations, which in turn have a negative impact on digital assets investment. The digital assets market does not have a price limit mechanism like the stock market, and trading is open 24 hours a day. As digital assets have fewer chips, their prices are apt to fluctuate sharply due to market makers and regulatory policies in various countries, which means that the price may go up several times or drop by half in a day. Therefore, you must understand and agree that you shall bear all the economic losses caused by the digital assets themselves.

(2) Policy risks: Due to the formulation or revision 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 formulation or revision of national laws, regulations and normative documents.

(3) Internet and technical risks: The Platform does not guarantee that all the information, programs, texts and so on contained in the Platform 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 in and use any services of the Platform or download and use any programs, information and data downloaded from the Platform and you shall bear the risks and possible losses. There are also risks in using trading systems on the Internet, including but not limited to the failure of software, hardware and Internet links. As the Platform cannot control the reliability and availability of the Internet, the Platform shall not be liable for distortion, delay or link failure. Meanwhile, the User shall bear the risks and losses caused by various factors such as server gateway bottleneck and unstable website access.

(4) Force majeure risks: The Platform shall not be responsible for the failure or delay of service and your losses 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; riots; insurrection; disturbances; insufficient productivity or means of production; fire; flood; storm; explosion; war; reasons attributable to banks or other partners; digital assets market collapse; act of the government; orders of judicial or administrative organs; other actions beyond the control of the Platform; or reasons attributable to any third party.

(5) Market condition risks: The platform does not guarantee the correctness and applicability of market condition analysis, market evaluation, etc. The Platform cannot control, support or guarantee the accuracy or completeness of trading for the information or suggestions you have obtained or will obtain from the introducer or any other organization or employee. All risks or consequences arising therefrom shall be borne by you and have no connection with the Platform.

(6) Risk of sealing-up and freezing. When a competent authority presents corresponding investigation documents and asks the Platform to cooperate with the investigation of your account, assets, or trading data on the Platform or take measures to seal up, freeze or transfer your account, the Platform shall assist in providing your corresponding data or performing corresponding operations as required by the competent authority. 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 OTC pledged digital assets loan business by others on your behalf on the Platform; and (d) losses caused by other accidents and reasons not attributable to the Platform.

Note: If you participate in OTC pledged digital assets loan business on the Platform, you shall control risks by yourself, evaluate the value and risks of digital assets investment and bear the economic risk 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 face the risk of losing money when you invest in digital assets. The risk disclosure herein does not reveal all the risks of OTC pledged digital assets loan business. 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 meanings:

(1) OTC Pledged Digital Assets Loan Business refers to a business where you pledge of a certain amount of digital assets on the Platform and borrow a certain amount of digital assets from the Platform.

(2) Pledged Digital Assets Loan Account refers to the virtual sub-account under your existing UID account, which is used to hold the pledge payment; each digital assets loan order has a separate sub-account to hold the pledge payment of that order.

(3) Pledge Payment refers to the digital assets you legally owned and voluntarily pledged to the Platform in order to apply for a digital assets loan from the Platform. The pledge payment shall be deposited into the User’s OTC pledged digital assets loan account and the Platform may restrict transactions, transfer and withdraw digital assets, and perform other operations.

(4) Estimated LTV refers to value of assets that you borrow/ value of current pledged assets (denominated in USDT).

(5) Current LTV refers to [(digital assets loan+ unpaid digital assets loan interest incurred) ÷ pledge payment] × 100% (denominated in USDT).

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

7. Application for a Digital Assets Loan: After logging into your account, you can select the type and amount of tokens as needed and confirm the type of tokens that you are willing to pledge on the page of OTC pledged digital assets loans. After you choose a token type, the system will automatically calculate the amount of digital assets that you need to pledge (please make sure that your exchange account has sufficient amounts to pledge). Before clicking “Borrow Now”, select the number of days of pledge (the number of days of pledge is the number of days of digital assets loan: if you select a 30-day loan which can be borrowed and repaid at any time, you can repay the loan at any time). After you click “Borrow Now”, the system will automatically transfer the corresponding amount of digital assets in the selected token type that you select to pledge from your exchange account to your pledged digital assets loan account.

8. Interest refers to the fees paid to the Platform when you use the pledged digital assets loan service provided by the Platform. The fees are calculated on an hourly basis. The front-end product page of the Platform will display the fees on a daily basis (daily fee rate) and on a yearly basis (annual fee rate) respectively. The interest shall be calculated according to the digital assets loan fee rate and the loan term shown on the digital assets loan page; the daily fee rate shall be based on a 24-hour basis. The loan term shall begin when a digital assets loan is transferred to your exchange account, and the interest is calculated on an hourly basis; a period less than 1 hour shall be deemed as 1 hour. For products without a fixed term, you can make repayment at any time and pay the interest according to the actual loan term.

9. Pledge Payment Adjustment. When the LTV of a single order reaches margin call LTV, the system will send an additional pledge payment request to the User’s contact information, reminding the User to increase the pledge payment to reduce the risk of forced liquidation. After receiving the information, the User can choose to increase the pledge payment by clicking “Adjust Pledge Payment” on the product page. When the LTV of a single order is lower than the covering margin call LTV, the User can choose to reduce the pledge payment by clicking “Adjust Pledge Payment” on the product page.

10. Use of Digital Assets Loan. The digital assets loan has been issued by the Platform into your exchange account. You may use it for whatever purpose you decide, for example for spot, leverage and contract transactions, or you may withdraw it from the Platform.

11. Repayment. You can click “Repay” to pay off a loan order and its interest according to the instructions on the front page of the product. Upon repayment, the interest shall be paid first. If there is any surplus, the loan principal will be paid off. If the loan principal is not fully paid off, the remaining part of the loan shall remain valid until its maturity in accordance with the original conditions of the order.

12. Overdue Loan. For a pledged loan order in which the principal has not been repaid on time, the Platform will give a 7-day (7*24 hours) grace period (from the expiration of the loan order term). During the grace period, three times of fee rate will be charged according to the actual overdue period. If no repayment is made within the grace period, the Platform shall have the right to liquidate the pledge payment of the order to pay off the principal and the interest of the digital assets loan. During the grace period, you shall bear the risk of forced liquidation of your pledge payment when forced liquidation is triggered.

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. Forced Liquidation. When the LTV of a single digital assets loan order reaches the LTV of liquidation, the Platform will dispose the pledge payment of that order to pay off the digital assets loan and unpaid interest, but the Platform cannot make sure the dispose price is the best price, and you agree and unconditionally accept the final dispose results. When the System cannot perform forced liquidation due to drastic price fluctuations or the digital assets loan and related fees cannot be paid off after forced liquidation or other losses are caused to the Platform, the Platform shall have the right to continue to claim compensation from you or to transfer the corresponding assets in your exchange account to pay off the outstanding loan principal and interest or to compensate for other losses of the Platform.

17. The Platform will manage the total market value of pledged digital assets loans and the market value of a single token type. When the accumulative total amount of pledged digital assets loans on the Platform reaches the amount of pledged digital assets loans of a single token type or the maximum total amount of digital assets loans set by the Platform, the system will automatically stop the digital assets loan business of a single token type or the pledged digital assets loan business until the market value or the total market value of pledged digital assets loans of a single token type is lower than the amount of pledged digital assets loans of a single token type or the maximum total amount of digital assets loans.

18. 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.

19. When using the Service, the User shall comply with applicable laws and regulations and the provisions of this Agreement and the User Agreement (including versions as updated by the Platform from time to time).

20. For risk control purposes, the Platform shall have the right to unilaterally suspend or terminate OTC pledged digital assets loan business and related services at any time if necessary.

21. 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.

22. The annex to this Agreement is an integral part hereof and shall have the same legal effect as this Agreement.