The Options Product Agreement (this “Agreement”) is made and entered into by and between you (hereinafter referred to as the “Customer”) and the Platform (Domain Name: www.htx.com) (hereinafter referred to as “we” or the “Platform”). This Agreement sets out the terms and conditions under which you invest in the company’s options products (“OTC Products”). By clicking “[Agree]”, you agree that you have read, understood, and accepted all the terms and conditions contained in this Agreement and HTX Options [Privacy Policy]. If you have any questions about options products and/or this Agreement, please contact our customer service staff by email to [[email protected]]. By investing in options products, you agree that we will access, process, and retain any personal information you provide to us in accordance with the HTX Options User Agreement. Like any asset, the value of the Virtual Currency will fluctuate up and down. You may have a huge risk of capital loss when you buy, sell, hold, or invest in Virtual Currency or related products. You should carefully consider whether you are suitable to buy and hold the products according to your own financial situation. You hereby agree that the company provides products in a capacity other than as a trustee and does not provide (or claim to provide) opinions or suggestions on specific investment decisions.

1. Definitions

When used in this Agreement, the following terms shall have the following meanings:

1.1. “Account Balance” means the balance of the Virtual Currency in your account. Your Account Balance shall exceed the amount of your order for options products. Your use of the Options account shall comply with the user agreement signed by you and HTX Options. You hereby specify that your Options account shall be used to receive the Collection Amount of options products when they are due (paid in settlement currency).

1.2. “Confidential Information” means any information that involves or refers to the business of a party hereto in any way, whether it is disclosed or obtained through or for the performance of this Agreement. For the purpose of this Agreement, Confidential Information includes proprietary information that is not publicized by a party hereto and is kept confidential by such party in the normal course of business. For example (but not limited to the following): Confidential Information includes computer software, trade secrets, patents, inventions, copyrights, technologies, designs, and other technical information concerning or referring to the products, concepts, technological processes, machinery, engineering, research and development of a party to the Agreement. The included information also covers, but is not limited to, information that in any way involves or refers to such party’s business methods, business plans, forecasts and expectations, operations, organizational structure, finance, customers, financing, prices, costs, marketing, procurement, commercialization, sales, products, product information, suppliers, customers, employees or their salaries, data processing and software, and all the other information designated as “confidential” by such party (whether it is indicated or marked as “confidential” or not).

1.3.“Digital Assets” means any cryptocurrency, decentralized application tokens and agreed tokens issued in private or public transactions as agreed by both parties hereto in writing.

1.4. “Force Majeure” means any event or circumstance beyond the reasonable control of a party that delays, hinders or obstructs such party’s performance of any of its obligations hereunder, including (to the extent that such event or circumstance causes such party’s performance of its obligations to be delayed or hindered) war (whether declared or not), terrorist activities, sabotage, blockade, fire, lightning, natural disasters, national strikes, riots, repression, civil disturbances, quarantine control, epidemics, earthquakes, landslides, avalanches, floods, hurricanes, explosions, regulatory and administrative actions of any government agency or similar actions or delay in action.

2. Options Product Terms

2.1. Options Order System

You may purchase options products online by accessing the company’s proprietary electronic order system (“Order System”). Access to and use of the Order System are subject to the terms of this Agreement and any other policies and processes announced by the company from time to time.

2.2. Product Description

For various options products, you may specify the Denomination of the order with respect to the options product you want to purchase. Once the market maker confirms your order, the purchase amount will be deducted from your Options account. When the options product you purchase becomes mature, you will receive payment according to the Collection Rules agreed by both parties through the system (paid in settlement currency).

The following is an example of the options products provided by HTX Options (please refer to the specific product terms displayed on the relevant pages of the Order System for reference):

2.2.1.American Call Options

When the option is exercised at or before expiry, if the settlement price is less than or equal to the strike price, there will be no return; if the settlement price is greater than the strike price, the return = Order Quantity x (Settlement Price - Strike Price).

Case: On Oct 31, 2021, Mr. Lee purchased the following product:

• Product Type: American Call Options
• Strike Price: 54500
• Amount: 0.5
• Expiry Date: Dec 31, 2021
• Pay premium: 2000 USDT

Settle in USDT:

On Nov 21, 2021 (any day before expiration), Mr. Lee chooses to exercise the option. If the settlement price is 52,000 USDT (the settlement price is less than or equal to the strike price), there will be no return; if the settlement price is 59,000 USDT (settlement price is greater than the strike price), the return = 0.5 x (59,000 – 54,500) = 2,250 USDT Note: The settlement price here is the index price of the underlying asset at the time of early exercise.

On Dec 31, 2021 (the expiry date), if the settlement price is 54,500 USDT (the settlement price is less than or equal to the strike price), there will be no return; if the settlement price is 63,000 USDT (the settlement price is greater than the strike price), the return = 0.5 x (63,000 – 54,500) = 4,250 USDT

Note: The settlement rules are the same for early exercise and exercise at expiry, only the time to request the settlement price is different.

 

2.2.2.American Put Options

When the option is exercised at or before expiry, if the settlement price is greater than or equal to the strike price, there will be no return; if the settlement price is less than the strike price, the return = Order Quantity x (Strike Price - Settlement Price).

Case: On Oct 31, 2021, Mr. Lee purchased the following product:

• Product Type: American Put Options
• Strike Price: 54500
• Amount: 0.5
• Expiry Date: Dec 31, 2021
• Pay premium: 2000 USDT

Settle in USDT:

On Nov 21, 2021 (any day before expiration), Mr. Lee chooses to exercise the option. If the settlement price is 59,000 USDT (the settlement price is greater than or equal to the strike price), there will be no return; if the settlement price is 52,000 USDT (settlement price is less than the strike price), the return = 0.5 x (54,500 - 52,000) = 1,250 USDT Note: The settlement price here is the index price of the underlying asset at the time of early exercise.

On Dec 31, 2021 (the expiry date), if the settlement price is 54,500 USDT (the settlement price is greater than or equal to the strike price), there will be no return; if the settlement price is 48,000 USDT (the settlement price is less than the strike price), the return = 0.5 x (54,500 - 48,000) = 3,250 USDT

Note: The settlement rules are the same for early exercise and exercise at expiry, only the time to request the settlement price is different.

 

2.2.3.Touch Options Double No-Touch

If the underlying price remains within the barrier levels until expiration, the payout amount is earned on the expiration date. If the underlying price touches or exceeds the barrier levels (either above or below) at any time before expiration, the option becomes null and void instantly. The option cannot be sold before expiration.

Case: On Oct 31, 2021, the underlying asset was priced at 54,500 USDT. Mr. Lee purchased the following product:

• Product Type: Double No-Touch
• Lower Barrier Price: 50000
• Upper Barrier Price: 60000
• Expiry Date: Dec 31, 2021
• Payout Amount: 1000 USDT
• Pay premium: 600 USDT

Settle in USDT:

a.The underlying price has been fluctuating within the barrier levels. At a certain moment on Nov 10, 2021, the underlying price rises above 60,000 USDT. At that moment, the option becomes null and void.

b.The underlying price has been fluctuating within the barrier levels. At a certain moment on Dec 30, 2021, the underlying price falls to 50,000 USDT. At that moment, the option becomes null and void.

c.The underlying price remains within the barrier levels until expiration. On the expiration date, Mr. Lee receives the payout of 1,000 USDT.

 

2.2.4.The following process shall apply to your purchase of options products:

a. You may go to the product page of the option you want to invest in (the “Product Page”), which lists the key terms of the product, including but not limited to the maturity date, Exercise Price, Denomination, and fees payable.

b. You may enter the Denomination of the options product you want to invest in on the order page. When you click the “Confirm payment” (or any other phrase with an equivalent meaning) button on the order page, it means that you confirm and accept the terms on the order page. After that, you will enter the “order status page”:

i. If the order status page displays “Purchase failed” (or any other phrase with an equivalent meaning), it means that no binding purchase order is signed by you and the company. The reason for the purchase failure may be that the company refuses the order you submit, computer failure, network congestion, market data error or other reason.

ii. If the order page shows “Purchase completed” (or any other phrase with an equivalent meaning), it means that you and the company have signed a binding order based on the terms specified on the order status page, and the company shall have the right to immediately deduct the purchase amount from your HTX Options account.

c. Once both parties sign the purchase order, the Customer shall have no right to cancel the order or request withdrawing the options premium.

d. No liability for data transmission speed; The purchase order is obviously wrong. You hereby understand and agree that the company shall not be liable for the speed or accuracy of data transmission. You agree that if the company determines that the order signed by you and the company is obviously wrong, the company shall have the right to cancel the order after the signature of the purchase order.

3. General Terms

3.1. KYC/AML Requirements

You hereby understand and agree that you may need to complete our customer joining process in accordance with our KYC/AML policy before investing in the options products provided by the company.

3.2. Account Security

The security of your account password (or other security devices) is entirely your liability. All purchase orders signed through your account are deemed valid offers signed by you. If the account, password or other information is falsely used, misappropriated or illegally used due to your fault, the company will not bear any liability for any risk and loss caused thereby.

3.3. Taxes

Each party shall be solely responsible for all taxes and fees that may be levied on it as a result of this Agreement and/or the transactions hereunder.

3.4. License

During the term of this Agreement, the company hereby grants you a limited, non-exclusive, revocable, non-transferable and non-sublicensable license to use the Order System in accordance with the terms of this Agreement. The company or its licensor reserves all rights, titles and interests to and in the Order System, including all source codes, object codes, data and information, the copyrights, trademarks, patents, inventions and trade secrets embodied therein, as well as the rights not expressly granted to you under this Agreement.

3.5. Data

With respect to any data or information provided by the company to you regarding your use of the Order System and your investment in options products, you hereby agree that:

3.5.1. such data or information is used only for the purposes set forth in this Agreement and its use is subject to all applicable laws, regulations, rules, judgments, orders, decrees, rulings, commands and other restrictions of any government, government agency or court (“Applicable Laws”);

3.5.2. you shall not disseminate, transmit, display or otherwise disclose or provide such data or information to a third party except as required by Applicable Laws;

3.5.3. Without the prior written consent of the company, such data or information shall not be improved, modified, used to make derivatives, or used in combination with any other information.

3.5.4. Monitoring Right

The company shall have the right to monitor all the use of the Order System at its sole discretion to ensure compliance with Applicable Laws, this Agreement and the policies and processes established by the company and its related parties from time to time.

4. Representations and Warranties

You hereby make the following representations and warranties to the company, and such representations and warranties shall be deemed to be renewed every time you use the Order System and/or sign a options product purchase order with the company:

4.1. Power

You have the power to enter into this Agreement and/or options product purchase orders and perform your obligations under this Agreement and/or the purchase orders, and this Agreement and/or the purchase orders shall be valid and binding on you.

4.2. Authenticity and Completeness of Information

All the information provided by you to the company in any form is true and complete in all respects except that you have informed the company of any modification.

4.3. No Violation or Conflict

Your electronic signature, delivery and performance of this Agreement and/or the purchase orders you sign will not violate or conflict with any law applicable to you and/or any contractual restrictions binding or affecting you or the assets you invest in options products.

4.4. Compliance

Your purchase of OTC products will comply with all applicable laws.

5. Indemnity

Subject to no repetition of any other right of compensation or indemnity provided herein, you shall indemnify, defend and hold harmless the company from and against any loss, liability, claim, accusation, action, lawsuit, procedure, interest, fine, damage, tax or expense (collectively referred to as “Loss”, including reasonable attorney fees) caused by your breach of this Agreement.

6. Key Risk Factors and Disclaimer

6.1. Non-Deposits

Options products hereunder are not equivalent to deposits. Therefore, the Customer shall not regard options products as substitutes for ordinary savings or deposits.

6.2. Market Risks

The price of digital assets fluctuates greatly. The Collection Amount of the options received by the Customer may be significantly lower than the return on other investments. If the Virtual Currency market fails, the market value of the settlement amount (paid in settlement currency) you receive on the maturity date may be significantly lower than the market value of your purchase amount.

6.3. No Warranty

The Order System makes no warranty of any kind, and the company specifically excludes all express and implied warranties related to the Order System, including but not limited to the warranties as to no defect, merchantability, fitness for a particular purpose or no infringement, no interruption of the Order System, no erroneous or harmful content in the Order System, and the warranty that the information provided by you will not be lost or damaged. The quality and performance risks of the Order System shall be solely borne by you as long as it is not caused by the deliberate misconduct of the company. This disclaimer constitutes an integral part of this Agreement. Except as permitted herein, this Agreement does not authorize any other use of the Order System.

6.4. Irregular Trades

The Platform reserves the right to revoke any irregular trades, including but not limited to: trades made by you for fraudulent or other illegal purposes; trades resulting from system failures, power outages, communication failures, or network failures not intentionally caused by the Platform; trades exhibiting obvious irregularities, such as incorrect trading amounts, incorrect trading currencies or incorrect account details, or trades occurring outside of trading hours; and trades that deviate significantly from the fair market value. The Platform shall not be liable for any losses you incurred as a result of such revocations and reserves the right to take measures to prevent further occurrences of such trades. The Platform will promptly notify you after revoking any irregular trade.

7. Force Majeure

If the company is unable to perform its obligations hereunder due to an Event of Force Majeure, the company shall not be liable to you for any damage or liability caused by or arising from the Event of Force Majeure.

8. Confidentiality and Non-disclosure

8.1. Confidentiality

The Customer shall know the nature of the Confidential Information and properly protect the Confidential Information, and shall not provide, transmit or disclose the Confidential Information to any third party, use the Confidential Information for any purpose beyond the scope of this Agreement, or carry out any activities contrary to the confidentiality of the Confidential Information; provided, however, that the said provision shall not apply to:

8.1.1. any disclosure that the Customer has the obligation to make, or Applicable Laws require the Customer to make;

8.1.2. any disclosure made with the prior written consent of the company; or

8.1.3. any disclosure to its employees or professionals, such as lawyers, certified public accountants, auditors, tax accountants, etc. (provided that the Customer shall promptly notify the company of such disclosure).

8.2. Excluded Information

The above confidentiality obligations shall not apply to the following information:

8.2.1. Information that has been made public at the time of disclosure;

8.2.2. Information that has been in the proper possession of the Customer at the time of disclosure;

8.2.3. Information that is legally disclosed by an authorized third party without the obligation of confidentiality after disclosure; or

8.2.4. Information that is made public after disclosure, which is not caused by the illegal act of the Customer receiving the information or the event caused thereby.

9. Other Terms

9.1. Successors and Assigns

Unless otherwise specified herein, this Agreement shall be binding on and inure to the benefit of the successors, heirs, assigns, executors and administrators of both parties. The rights or obligations of such persons hereunder shall not be affected by such amendment. The company may assign its rights and obligations hereunder to its related parties.

9.2. Delay or Omission

Any delay or omission by the company in exercising any of its rights, powers or remedies in respect of any breach or default of the Customer under this Agreement shall not prejudice any such right, power or remedy of the company, and shall not be construed as waiving or acquiescing in any such breach or default, or acquiescing in any similar breach or default occurring thereafter; nor shall it waive any other breach or default before or after that. Any waiver, permission, consent or approval of any kind or nature by the company for any breach or default hereunder, or any waiver by the company of any term or condition hereof, shall be in writing and shall be valid only to the extent specified. All remedies available to the company under this Agreement or at law or otherwise shall be cumulative rather than alternative.

9.3. Interpretation; Headings and Subheadings.

This Agreement shall be interpreted fairly. This Agreement shall not be interpreted under the principle of ambiguity that is detrimental to the drafting party. The headings of all the clauses of this Agreement are for the convenience only and shall not affect the interpretation of this Agreement.

9.4. Change of Control

If the company is acquired by or merged with a third-party entity, we have the right to assign or transfer the information we collect from you as part of such merger, acquisition, sale or other change of control in any such case.

9.5. Severability

If any provision of this Agreement is determined to be illegal or unenforceable, such determination shall not affect the remaining provisions of this Agreement.

9.6. Survival

All terms which, by their nature, will survive the expiration or termination of this Agreement, shall remain in effect after the expiration or termination of this Agreement.

9.7. Important Statement

9.7.1. These options products are investment products involving derivatives. Before making any investment decision, you shall conduct an independent review on whether the products are suitable for you according to your financial situation, investment experience, investment objective and investment scope, your willingness and ability to bear risks, as well as whether you understand the nature and risks of the products. If you are in doubt, you shall seek advice from an independent financial adviser.

9.7.2. These options products are not equivalent to deposits. The principal of these products is not protected. You shall not deem options products as substitutes for ordinary savings or deposits.

9.7.3. The price of digital assets fluctuates greatly. The Collection Amount from the options products received by the Customer may be significantly lower than the return on other investments. If the Virtual Currency market fails, the market value of the settlement amount (paid in settlement currency) you receive on the maturity date may be significantly lower than the market value of your purchase amount.

9.7.4. This statement is for reference only. It does not in itself constitute any offer, invitation or recommendation to buy, sell or provide any investment products or services. Any information contained herein is subject to change at any time without notice.

9.7.5. In case of discrepancies between any translated versions and the English version, the English version shall prevail.

9.7.6. The ultimate power of interpretation of this Agreement shall be vested in HTX.