Options Trading Agreement
The Options Trading Agreement (The Agreement) is made by and between the Website (The Platform) and the User (hereinafter referred to as “You”) regarding your use of the Digital Asset Options Trading service (hereinafter referred to as “Service”) provided by the Platform. By accessing the platform (including visiting or logging in to the API, the mobile application or any other clients of the website), using the products or services (on the website or the mobile application) or clicking the “I have read and agree to the above agreement” button, you confirm that You have carefully read, understood and agree all items and conditions in this agreement and the revisions and updates in irregular intervals. If You do not agree with any term or condition in this Agreement, You should promptly stop accessing this Platform or using the Service. Your continued visit to this Platform shall be deemed as showing and indicating that You agree with the content in this Agreement unconditionally.
1. The Scope and Application of the Agreement.
The Agreement shall apply to Your options trading through the Platform. The Agreement is a supplementary agreement to the Service Agreement. In case of any discrepancy between this Agreement and the Service Agreement, this Agreement shall prevail. For items that are not specified in this Agreement, the Service Agreement shall prevail.
The Platform reserves the right to determine, amend or modify any content of this Agreement at any time at our sole discretion. The amended agreement will take effect immediately upon announcement on the Platform. Any continued use of the Services shall be deemed as you agree to the terms of this Agreement. If You do not agree with any term or condition in this Agreement, You should promptly stop using the Service. You shall be responsible for being updated with the amendments to this Agreement to ensure that you understand the terms and conditions applicable to your access to and use of the Service.
3. Voluntary Consent
Your options trading on the Platform is a voluntary trading action You take after considering Your financial position and the risks associated with such Services. You are responsible for all profits, losses or liabilities arising from Your investment decision unconditionally.
4. This Agreement has no conflict with all applicable laws, rules and regulations in Your local jurisdiction and all Your Digital Assets deposited in this Service are legally acquired and owned by You.
5. You fully understand and agree to conduct normal operations/market activities and You shall not maliciously interfere with market health or fair trading. For example, You use Your Account to engage in market manipulative activities or any act/activity that damages other Users through service holes or other unreasonable means.FameEX, by ITS judgement, reserves the right to take actions to Your accounts, including but not limited to freezing the account, and restricting/suspending/canceling Your orders in such situations.
6. You understand the risks of using the Service and are voluntarily responsible for any potential loss or damages caused by Your investment,FameEX assumes no responsibility or liability. The risks associated include but are not limited to:
6.1 The Risks in Digital Assets: The market for Digital Assets opens 24 hours a day, and the prices of Digital Assets are volatile and are traded continuously with no limitations on price fluctuations. Moreover, the amount of Digital Assets is small, their price can be impacted greatly by the actions of market makers or the governments’ regulatory policies. Therefore, You shall understand and agree that the loss caused by the Digital Assets themselves must be born by yourself solely.
6.2 Internet and technical risks: due to irresistible factors such as network delay, computer system failure, any interference and destruction of malicious programs such as viruses, Trojans, etc., the execution of FameEX options services may be delayed, suspended, suspended or deviated. The final execution result of the FameEX option service is different from the user's expectation. FameEX does not assume any responsibility, but FameEX will try its best to ensure but not promise that the execution system of the FameEX option service is stable and effective.
6.3 Other Risks: You shall solely bear the responsibilities and losses in the following situations:
A. Loss caused by username/password loss, inappropriate/incorrect operations, mistakes in Your investment decisions.
B. Loss caused by malicious operation by others when logging out is not timely done after online commissions or hotkey operations.
C. Loss caused in options trading by others who operate on the Platform on Your behalf.
D. Loss caused by accidents and circumstances, not within the Platform’s control or irrelevant to the Platform.
6.4 Reminder: When using the Service, You shall, at your sole discretion, control the risks, carefully assess the value and risks of relevant Digital Assets, and solely bear the responsibilities and losses that may arise therefrom. Your trading should be based on your financial position and risk tolerance and FameEX kindly reminds you to be aware of the risks in the investment of Digital Assets. The items in this Agreement do not cover all risks in the Digital Assets Market, please make your investment with caution.
7. FameEX provides only the Service in options trading and is not involved in trading. Therefore, FameEX will charge You a certain amount of service fees. Please refer to the instructions on the Platform for rate information. The volume will impact the level of options trading, consequently, the discounts for service fees are different.
8. The K-line price of FameEX option trading is based on the latest transaction price of USDT perpetual contract trading. After the option expires, the option will be automatically exercised, and the option cannot be exercised in advance or later. Compared with European-style options and American-style options, FameEX options products have lower trading thresholds, simpler trading processes, and stronger user experience.
9. According to the directions of the options users purchase, FameEX options can be divided into Flat Options, Call Options and Put Options. The exercise of the options depends on the closing price, the opening price, the floating upper limit and the floating lower limit of the periods of the candlestick chart.
9.1 Flat option: FameEX will set a price fluctuation range for the currency pair option based on the historical price performance of different currency pairs, and determine that if the latest transaction price of the digital asset fluctuates within the range (including the range price), it will be regarded as a flat. If the user buys a flat option, if the exercise price is within the floating price range (including the range price), the user who buys the flat option makes a profit, and the user who buys the call option and the put option loses.
9.2 Call option: The user determines that the price of the digital asset is about to rise and exceeds the upper limit price of the floating range, and then buys the call option. During the K-line cycle, if the exercise price is higher than the opening price (or the upper-line price of the floating range), the users who bought the call option when the option is exercised will make a profit, and the users who have bought the call option and the put option will lose money.
9.3 Put option: If the user judges that the price of the digital asset is about to fall and exceeds the lower limit price of the floating range, the user will buy a put option. During the K-line cycle, if the exercise price is lower than the opening price (or the lower line price of the floating range), the users who bought the put option at the time of exercising the option make a profit, and the user who buys the put option and the call option loses.
9.4 The platform will adjust the trading pairs that support option trading and decide whether to support flat options according to the actual market operation and risk control policies.
9.5 The Platform manages the floating zone of price for different pairs and adjusts the scope of the floating zone according to the historical price data of each pair.
10. Currently, only 3-minute-period and 5-minute-period are supported in FameEX options trading, more alternatives will be available in the future. Users will pay premium and service fees when they purchase options, the fees will be deducted from the derivative account. When the exercise of options is done, the profit will also be sent to the derivative account.
10.1 Derivative account: A derivative account is a virtual sub-account under the users’ current UID account, the assets within can be used for USDT perpetual contracts, options trading and other cryptocurrency tradings.
10.2 Premium: Users need to pay a certain premium for buying an option. When the option is exercised, your buying direction must be in the same direction as the ups and downs of the exercise price in order to make a profit in the transaction; otherwise, you will lose the premium. .
10.3 Service Fees: Premium (total amount when buying in) * Fee rate. The service fee will be deducted from the derivative account and is not included in the premium.
10.4 When the exercise is done, the profit for users who earn will be calculated according to the ratio of his/her premium in the total premium of all users who earn. The profit comes from the premium of the users who lose.
10.5 Loss refers to the premium of the users who lose when the exercise is done.
11. Risk Control
11.1 Options trading shares the same derivative account with USDT perceptual contract, therefore, please ensure that there are sufficient funds in your derivative account before options trading and the position size will not be influenced.
11.2 The lack of patterns of the price change of Digital Assets makes it impossible for FameEX to promise that your net benefits will exceed the premium and the service fees. In other terms, when your buying direction is consistent with the exercise of options, if the premium from the users who lose is of relatively small amount, the profit may not be enough to cover the cost of service fees.
12. Users should comply with all applicable laws, business rules regarding trading and this Agreement as well as the Service Agreement.
13. The Platform, at its sole discretion, reserves the right to suspend, halt or terminate the options trading and other relevant services.
14. This Agreement takes effect from July.30.2022