Margin Trading Service Agreement
This "Margin Trading Service Agreement" ("Agreement") is between this website (also known as the "platform") and the user ("you") regarding your use of the digital asset leveraged trading service provided by this website ("This Service") And the agreement entered into. The act of visiting or logging in to this website (including the API and mobile applications of this website), using any service provided by this website (including the mobile application of this website), or clicking the "Have Read and Agree" button, it means that you confirm that you have read, understood and accepted all the terms and conditions stipulated in this service agreement, as well as all the terms and conditions stipulated in the "Terms of Service". If you do not agree to any terms or conditions of this agreement or the "Terms of Service", please stop visiting this website and stop using this service. If you continue to visit this website or use this service, you are deemed to have unconditionally agreed to the entire content of this agreement and the "Terms of Service".
1. The scope and application of the agreement. This agreement applies to your use of this website for leveraged transactions. This agreement is a supplement to the "Terms of Service". If this agreement is inconsistent with the "Terms of Service", this agreement shall prevail. If this agreement does not clearly stipulate, the "Terms of Service" shall prevail.
2. Modification of the agreement. This website reserves the right to determine, modify or change this agreement at any time. Any and all modifications or changes to this agreement will take effect immediately after being published on this website or sent to users. Therefore, if you continue to use the services of this website, it means that you accept the revised agreement and rules. If you do not agree to any modification to this agreement, please stop using this service immediately. This website recommends that you check this agreement frequently to ensure that you understand the terms and conditions applicable to your access and use of this service.
3. Voluntary behavior. Your leveraged trading on this website is entirely your own voluntary trading behavior based on your own economic situation and after you understand the relevant risks you face, and has nothing to do with this website or third parties.
4. Risk warning. When you conduct leveraged transactions on this website, you may get higher investment returns, but there are also greater investment risks. In order to enable you to better understand the risks, in accordance with relevant laws and regulations, administrative regulations and relevant national policies, we will remind you of the risks of leveraged trading. Please read it carefully. The risks of your leveraged trading on this website include but are not limited to:
1) The risks of digital assets themselves: The digital asset market is new, unconfirmed, and may not grow. At present, digital assets are mainly used by speculators in large numbers, and relatively few in retail and commercial markets. Therefore, the price of digital assets is prone to volatility, which in turn has an adverse effect on digital asset investment. The digital asset market does not have the same price limit as the stock market, and trading is open 24 hours a day. Due to the small number of chips, the price of digital assets is susceptible to large fluctuations due to the control of the dealer and the regulatory policies of various countries. That is, the price may increase several times a day, and the price may fall by half in a day. Therefore, you must understand and agree that the economic losses caused to you due to the digital asset itself are all borne by you.
2) Policy risk: Due to the formulation or modification of national laws, regulations and regulatory documents for digital assets, digital asset transactions may be suspended or prohibited at any time. You must understand and agree that due to the formulation or modification of national laws, regulations and regulatory documents, the trading of digital assets is suspended or prohibited, and the resulting economic losses are all borne by you.
3) Internet and technical risks: This website cannot guarantee that all the information, programs, texts, etc. contained in this website are completely safe, and will not be interfered or damaged by any malicious programs such as viruses, Trojan horses, etc., so you log in, use any services or downloads on this website And any programs, information, data, etc. that you use to download are your personal decision and you bear your own risks and possible losses. At the same time, there are risks associated with the use of Internet-based trading systems, including but not limited to the failure of software, hardware, and Internet links. Since this website cannot control the reliability and availability of the Internet, this website will not bear any responsibility for distortion, delays and link failures. At the same time, the user shall bear the risk and loss of the margin account being liquidated due to various factors such as server gateway bottleneck and unstable website access.
4) Force majeure risk: This website is responsible for the maintenance of information network equipment, information network connection failures, computer, communication or other system failures, power failures, hacker attacks, weather reasons, accidents, strikes, labor disputes, riots, uprisings, Riots, insufficient productivity or production materials, fires, floods, storms, explosions, wars, bank or other partner reasons, the collapse of the digital asset market, government actions, judicial or administrative orders, other things that are not within the control of this website or this website This website does not assume any responsibility for the inability or delay of service caused by the behavior of the website incapable of control or the reasons of a third party, as well as your losses.
5) Market risk: This website does not guarantee the correctness and applicability of relevant market analysis, market analysis and other content. This website cannot control the information or suggestions you have or will obtain from the introducer or any other organization or employee. , Nor does it endorse or guarantee the accuracy or completeness of the transaction. All risks or consequences arising therefrom shall be borne by you and have no involvement with this website.
6) The risk of being blocked or frozen: When the competent authority produces the corresponding investigation documents and requires this website to cooperate in the investigation of your account, assets or transaction data on this website, or take measures to seal, freeze or transfer your account At this time, this website will assist you in providing your corresponding data or perform corresponding operations in accordance with the requirements of the competent authority. The user shall bear all responsibilities for any privacy leakage, account inoperability and losses caused thereby.
7) Other risks: You will be responsible for the losses in the following situations: a. You lose your account due to loss of your account, forgotten password, improper operation, mistakes in investment decision-making, etc.; b. Failure to exit in time after completing online entrustment and hotkey operations , losses caused by malicious operations by others; c. losses caused by entrusting others to conduct leveraged transactions on this website for you; d. other accidents and losses not caused by this website.
8) Special reminder: When you participate in leveraged trading on this website, you should control your own risks, evaluate the investment value and investment risk of digital assets, and bear the economic risk of losing all your investment; you should trade according to your own economic conditions and risk tolerance, and soberly recognize the risks of digital asset investment. When you make a leveraged investment in digital assets, there is both the possibility of profit and the risk of loss. The risk warning of this agreement does not reveal all the risks of leveraged digital asset trading. Please be soberly aware of this, the market is risky, and investment needs to be cautious.
5. Definition. In this agreement, the following terms shall have the following definitions:
1) Leveraged transaction: refers to the transaction that uses leverage to borrow digital assets on this website;
2) Margin account: refers to the virtual sub-account set up under the user's existing UID account for depositing margin and leveraged lending digital assets, and its asset accounting is independent of other sub-accounts under the user's UID account;
3) Leveraged lending: refers to digital asset lending applied for through this website for the purpose of leveraged transactions;
4) Margin: refers to a certain amount of digital assets that must be transferred to a designated leverage account by you in advance as collateral for leveraged loans;
5) Risk rate: refers to the risk rate of a margin account, that is, the risk rate calculated based on the amount of leveraged borrowing in each margin account and the total value of assets in the account;
6) Forced liquidation: When the risk rate of your leveraged account reaches a certain standard, this website has the right to dispose of all assets in your leveraged account to recover the loan and corresponding service fees. It is called "forced liquidation".
6. Transfer the deposit. Before applying for a leveraged loan, users need to provide a required margin for each trading pair's leveraged loan (currently the platform accepts the target currency and the denominated currency as margin) in order to conduct leveraged transactions.
6.1 The system will set up different margin accounts for users for each trading pair according to the user's leveraged loan application. Leveraged users can use the net assets in the margin account of each trading pair as the margin for the related trading pair's leveraged transactions.
7. Leveraged lending. After the deposit is received, users can apply for leveraged loans within the maximum loan amount allowed on this website.
7.1 The maximum leveraged borrowing limit refers to the maximum borrowable limit of a user for the current leveraged trading currency pair. The platform will calculate the user's current maximum leveraged loan amount based on the user's maximum leveraged loan amount and the platform's risk control rules.
In this rule, the maximum leveraged loan amount = (total account assets-outstanding borrowed assets-outstanding interest) * (maximum leverage -1)-outstanding borrowed assets.
7.2 After successful leveraged lending, the borrowed digital assets will be issued by the platform to the user's leveraged account immediately, and the platform system will start billing immediately, and the user can use the borrowed digital asset for leveraged transactions in the corresponding leveraged trading pair.
8. Return the currency. The user shall return the loaned digital assets in a timely manner in accordance with the provisions of this agreement. You can manually select the loan order that needs to be returned, and give priority to the return of the earliest loan order, the service fee, and the principal when returning. After the principal and service fees of a single loan order are fully paid off, the status of the single loan order is changed to paid off, and then this order is no longer billed.
9. Risk Control
9.1 Users who participate in leveraged lending use the net assets in their margin accounts classified by transaction pairs as their margin, and the digital assets in other accounts are not included in the margin of this margin account.
9.2 FAMEEX has the right to monitor the risk rate of each user's leverage account in real time and take corresponding measures based on changes in the risk rate.
In this rule, the risk rate of a margin account = (total asset value-interest on loan but not repaid)/asset on loan but not repaid *100%;
Total assets = the sum of all assets in the margin account;
Borrowed assets = the sum of the borrowed and outstanding assets in the margin account;
Interests that have been borrowed and not repaid = the amount of each borrowed currency asset * hourly interest rate * the currency borrowing time at the end of the calculation-the interest that has been returned.
9.3 When the risk rate of the margin account reaches the liquidation warning line of the loan level, the system will send a reminder message to the contact information reserved by the user to remind the transaction risk. After receiving the information, the user should promptly return the loan or repay the loan. The currency account transfers a sufficient amount of margin to ensure that the margin conversion rate remains above the warning line.
9.4 Forced liquidation. When the risk rate of the margin account reaches the risk rate of liquidation of the loan position, the system will automatically trigger the liquidation of the position, close the position in the user's margin account, and automatically repay all the user's leveraged loans.
9.4.1 If a user has multiple leveraged loans, repayments will be made in the order in which the loans occurred, and the first loans that occurred will be repaid first. If all the assets in the user's leverage account are not enough to repay all the loans ("buy positions") under the account, the platform has the right to continue to claim debts from the user.
9.4.2 Users should pay attention to the risks of leveraged trading and adjust the position ratio in time to avoid the risk of liquidation. All losses caused by the triggering of the liquidation of the leveraged account shall be borne by the user, including but not limited to: the risk rate of the leveraged account has reached the warning line due to the violent price fluctuations of the digital asset, and then quickly reached the liquidation line, so that Loss caused by the user's failure to take corresponding measures in time after receiving the prompt information sent by the system.
9.5 The platform will manage the total market value of leveraged loans. When the cumulative total of leveraged loans on the platform reaches the maximum amount of leveraged loans set by the platform, the system will automatically stop leveraged loans until the total market value of leveraged loans is lower than the total amount of maximum leveraged loans.
9.6 The platform will adjust the total amount of maximum leveraged loans and the maximum amount of user loans based on actual market operation and risk control policies.
9.7 After the system forcibly closes the margin account to repay all leveraged loans, if there is a short position, the platform has the right to restrict users from transferring any assets from the margin account to their currency account, and restrict the currency account’s withdrawal function. The user resumes the withdrawal function after paying off the loan and related service fees.
10. Expenses. The user is aware of and agrees that loan service fees and handling fees may be incurred when using this service, and agrees to pay the corresponding fees in accordance with the requirements of this agreement.
10.1 Margin trading fees: Margin trading and currency trading share the same depth, and the rules for charging fees are exactly the same, and there is no distinction. The amount of leveraged trading will also affect the level of currency trading. The margin trading fee is charged to the platform fee wallet.
10.2 Service fee billing rules: interest is calculated at the hourly service rate. The interest calculation hour starts from the actual borrowing time of the investor. The interest is calculated once at the time of borrowing and every 1 hour thereafter (natural hours).
10.2.1 The user can repay the loan in advance, and pay the service fee according to the actual borrowed hour, and charge for one hour if it is less than one hour. The user has priority in returning the service fee when returning the loan.
10.2.2 If the loan service fee is not returned, it is included in the risk rate. If there is no service fee deduction, if there is a long-term non-return of the service fee, it may cause the user's leverage account risk rate to drop to liquidation. Below the line, leading to the risk of forced liquidation of the account. Users are requested to actively pay off the service fee periodically or leave a sufficient available balance in their margin account.
10.3 Liquidation fee: When a user closes a position, 8% of the user's remaining assets will be charged to the risk reserve wallet.
Liquidation fee collection rules: If the user's remaining assets have both denomination currency and transaction currency, both denomination currency and transaction currency will be charged; if the user's remaining assets only have denomination currency, only denomination currency will be accepted, and only transaction currency will be accepted if user's remaining assets are transaction currency.
Transaction currency ≥ minimum transaction quantity, it will be charged as a percentage, and 8% of the remaining transaction currency will be charged;
Transaction currency <minimum transaction quantity, then all remaining assets will be collected;
If the denominated currency is ≥5 USDT, it will be charged as a percentage, and 8% of the remaining denominated currency will be charged;
If the denominated currency is less than 5 USDT, all remaining assets will be collected.
11. When using this service, users should abide by applicable laws and regulations, abide by transaction-related business rules, and comply with the provisions of this agreement and the "Terms of Service".
12. This website reserves the right to unilaterally suspend or terminate leveraged trading and related services at any time if necessary for risk control purposes.
13. These rules will be implemented on October 12, 2020.