Introduction

This Options Terms of Service Agreement (this “Agreement”) shall apply to all Options Accounts opened and maintained with (hereinafter referred to as we, our, us, it) as well as all Futures Trading Services provided by to you (as each term is defined below). Your access to and use of the Options Trading Services shall constitute your agreement to the terms of this Agreement.

All capitalized terms and references used in this Agreement that are defined and construed in the Terms of Use (the “Terms of Use”) but are not defined or construed in this Agreement shall have the same meaning and construction in this Agreement. For the avoidance of doubt, where a term is defined both in the Terms of Use and in this Agreement, the definition in this Agreement shall (for the purposes of this Agreement only) control.

The terms in this Agreement shall be supplemental to and are to be read together with the Terms of Use. In the event of any conflict or inconsistency between the terms in this Agreement and the Terms of Use or the terms of this Agreement, the terms in this Agreement shall prevail with respect to the services contemplated hereunder unless expressly stated otherwise.Please read this Agreement carefully before using the Services. If you do not understand any of the provisions within this Client Agreement or are in any doubt as to your obligations under them, you should seek independent professional advice.

Unless otherwise expressly agreed by us in writing, this version of this Agreement shall replace and supersede all previous versions of this Agreement that may have been accepted by you or otherwise made available on the Platform.

Users resident in certain jurisdictions may be onboarded to receive Options Trading Services from local entities within , subject to terms and conditions imposed by the relevant local entity (“Local Terms”), in which case such Local Terms shall apply to govern the Futures Trading Services in place of this Agreement.

Risk Disclosure

provides access to Futures on cryptocurrencies. Futures are leveraged products which are complex and may not be suitable for inexperienced investors.

BY TRADING ON , YOU CAN LOSE UP TO YOUR ENTIRE DEPOSIT IN A VERY SHORT PERIOD OF TIME. The amount you may lose is potentially unlimited and can exceed the amount which you originally deposited with us. This is because Futures trading is highly leveraged. Be cautious of claims that you can make large profits from trading Options contracts. You should seek advice from an independent and suitably licensed financial advisor and ensure that you have the risk appetite, relevant experience and knowledge before you decide to trade.

When trading on , it is your responsibility:

• To familiarise yourself with cryptocurrencies and our cryptocurrency Futures before you start trading.
• To monitor your open positions and to reduce your position or deposit additional margin to avoid a losing position being closed out.
• Not to deposit more than you can afford to lose.
• Not to build positions that are beyond your financial capacity to maintain.
• By using the Platform, you acknowledge that you have understood the associated risks and that you accept these risks, in particular that:
• Cryptocurrency is a highly volatile asset class and is based on decentralised monetary protocols which are still in experimental stage and may change at any time.
• Trading Futures exposes you to market risk. This is the risk that you suffer a loss as a result of a position in Futures moving against you. If you hold a long position and the cryptocurrency price declines or if you hold a short position and the cryptocurrency price increases, you can lose all of your cryptocurrency or legal tender deposit.
• Trading Futures exposes you to credit risk. This is the risk that one or more of your counterparties have deposited insufficient collateral into their account such that you may not receive some or all of the cryptocurrency or legal tender they owe you.
• Trading Futures exposes you to liquidity risk. This is the risk that you suffer a loss because you cannot close out a Futures position because there is no demand to take the other side of that trade.
• Trading Futures exposes you to platform parameters risk. This is the risk that you suffer a loss because we have had to change parameters on the platform such as the margin requirements.
• Trading Futures exposes you to operational risk. This is the risk that you suffer a loss because of a malfunction of the Platform, for example resulting from scheduled or unscheduled downtimes, matching system failure, database failure, cryptocurrency transfer or storage failure, failure or malfunction of the Application Programming Interface (API), hacker attacks or other failure or malfunction.
• Trading Futures exposes you to regulatory risk. This is the risk that you suffer a loss because we have to restrict or terminate elements of our service in response to regulatory action.

1. Definitions and Interpretation

“Account” means an account maintained or to be maintained by for you for the purpose of transacting Options through the Platform. The “Account” shall be called a “ Account” for the purposes of the Terms of Use and the respective regulatory authority.

“Call Contract” means a contract entitling the Option Buyer, upon Exercise, to notionally purchase the Digital Asset Amount from the Option Seller at the applicable Strike Price and to receive from the Option Seller, in lieu of the Digital Asset Amount, the Settlement Amount.

“Commencement” means the time at which the Option Contract is entered into on the Platform.

“Digital Asset Amount” means the amount of the Underlying Asset that is to be notionally bought or sold pursuant to an Option Contract.

“Eligible Digital Asset” means any Digital Asset that has confirmed it will accept for the purposes of Premium payments and/or satisfying Margin Requirements with respect to Option Contracts.

“Exercise” means the exercise of the rights of the Option Buyer granted pursuant to an Option Contract, as applicable. Exercise will be automatic on Expiry of the Option if the Option is In-the-Money.

“Exercise Fee” has the meaning given to it in clause 5.1 of this Agreement.

“Exercise Period” means the period from Commencement to Expiry.

“Expiry” means the expiration time chosen or specified on the Platform when entering into the relevant Option Contract.

“In-the-Money” means the Settlement Amount with respect to an Option Contract is a positive amount in favor of the Option Buyer at the time of Expiry of the Option Contract.

“Initial Margin” means, in relation to an Option Seller, the minimum amount of Margin that we may, from time to time and in our sole discretion, determine is required to be deposited in the Option Seller’s Account in order to write/issue Option Contracts.

“Maintenance Margin” means, in relation to the Qualifying User the amount of Margin that we may, from time to time and in its sole discretion, determine to be required to maintain a short position in relation to Option Contracts issued by the Qualifying User.

“Margin”, in respect of a Qualifying User, means any Eligible Digital Assets that are deposited with or held by or on our behalf of in the Account of such a Qualifying User as security or credit support for the obligations of the Qualifying User under the relevant Option Contracts issued by the Qualifying User.

“Margin Balance” means, with respect to the Account of a Qualifying User the sum, from time to time (as determined by us in our sole discretion) of: (i) Margin held in such Account; and (ii) any Unrealised P/L connected to such Account. Information as to the Margin Balance from time to time is made available through the Platform.

“Margin Call” means, with respect to a Qualifying User, the request issued by us to top up any shortfall of Margin in the Qualifying User’s Account in order to satisfy Margin Requirements from time to time.

“Margin Requirements” means the aggregate of Initial Margin and/or Maintenance Margin required to be satisfied by a Qualifying User in order to sell/issue and/or maintain short positions with respect to Option Contracts, as specified by us from time to time.

“Mark Price” has the meaning given to it in clause 6.3 of this Agreement.

“Options” mean european-style options available for purchase or sale on the Platform that are quoted and settled in certain stablecoins and are automatically Exercised on Expiry if the Option is In-the-Money (and may not be Exercised prior to Expiry).

“Option Buyer” means the party that pays the Premium to the Option Seller and is entitled to receive from the Option Seller, upon Exercise, the Settlement Amount.

“Option Contract” means a Call Contract or a Put Contract in respect of any Option.

“Order” means any offer to enter into an Option Contract, or any instruction, request, application or order in relation to an Option Contract in whatever form and howsoever sent, given or transmitted by you or on your behalf to us, or which we reasonably believe to have been sent, given or transmitted by you or on your behalf, including any instruction, request or order to revoke, ignore or vary any previous offer, instruction, request application or order.

“Option Seller” means the party that grants to the Option Buyer, upon Exercise, the right to receive the Settlement Amount.

“Option Specifications” means the contract specifications with respect to each type of Option Contract available through the Platform, as accessible here.

“Premium” means an amount in USDT (or any other Eligible Digital Asset) paid by the Option Buyer to the Option Seller to enter into an Option Contract, as specified on the Platform.

“Put Contract” means a contract entitling the Option Buyer, upon Exercise, notionally to sell the Digital Asset Amount to the Option Seller at the applicable Strike Price and to receive from the Option Seller, in lieu of the Digital Asset Amount, the Settlement Amount.

“Settlement Amount” means the greater of (i) zero, and (ii) the amount calculated on a formula basis as follows: (A) in the case of a Call Contract, the excess of the Settlement Price over the Strike Price, multiplied by the Digital Asset Amount, and (B) in the case of a Put Contract, the excess of the Strike Price over the Settlement Price, multiplied by the Digital Asset Amount.

“Settlement Price” means the arithmetic mean of the Spot Index Price in respect of the Underlying during the 30 minutes preceding the Exercise of the relevant Option Contract, as determined by us.

“Spot Index Price” has the meaning given to it in clause 6.3 of this Agreement.

"Strike Price" means the predetermined price, agreed upon when entering into an Option Contract, at which the relevant Option Contract can be Exercised, as specified on the Platform.

“Time to Expiry” means the period of time until the Expiry of the Option.

“Trading Rules” means any trading rules applicable to Options as made available on the Platform from time to time, and shall include the Option Specifications.

“Transaction Fee” has the meaning given to it in clause 5.1 of this Agreement.

“Qualifying Users” means Users whom we have agreed shall be permitted to provide liquidity in Options and to issue/write (and take short positions in respect of) Option Contracts, subject to the satisfaction of applicable Margin Requirements as detailed in clause 6 of this Agreement..

“Underlying” means the Digital Asset that is the subject of the Option Contract.

“Unrealized P/L” means the profits that have not yet been realized on your open Option Contracts minus the losses that have not yet been realized on your open Option Contracts. Information as to your Unrealized P/L from time to time is made available on the Platform.

2. Entry into Option Contracts

2.1 To enter into an Option Contract or close out an existing open position with respect to an Option Contract entered into through the Platform, you may place a relevant Order with us through the functionality available on the Platform. We are not obliged to accept, and does not guarantee the execution of, any Order.

2.2 Option Contracts may only be issued by Qualifying Users who have been approved by us. The issuance of Option Contracts and the entry into a short position with respect to an Option will be subject to the satisfaction of Margin Requirements as set out in clause 6 below.

2.3 When placing an Order to enter into an Option Contract through the Platform, you will need to select an Expiry. Options can only be Exercised at Expiry and will be automatically Exercised once Expiry is reached provided that the Option is In-the-Money. You may choose a daily, weekly, monthly, or quarterly Expiry. The different Expiries available are detailed on the Platform. Once an Expiry is chosen for a particular Option Contract, this cannot be changed.

2.4 On entering into an Option Contract as an Option Buyer, you will be required to pay the applicable Premium to the Option Seller, which will be automatically deducted from your Account. It is your responsibility to ensure that you maintain sufficient Eligible Digital Assets within your Account to cover any Premium due with respect to Option Contracts. If you do not have sufficient Eligible Digital Assets within your Account to satisfy any Premium due, you will not be permitted to enter into any Option Contract.

2.5 If you place an Order to close out an existing open position with respect to an Option Contract and this Order is matched, the amount you will receive will reflect the current market price of your position (as determined by us). Once you have closed out a position in an Option Contract, you will no longer have any rights or obligations with respect to such an Option Contract (and you will not be entitled to receive, or required to pay, as applicable, any Settlement Amount on Expiry).

3. Exercise of Options

Options entered into through the Platform may only be Exercised at Expiry. If at Expiry an Option is In-the-Money, the Option shall be deemed to be automatically Exercised immediately upon Expiry. For the avoidance of doubt, if an Option is not In-the-Money at Expiry, the Option will lapse and will not be Exercised.

4. Settlement of Options

4.1 At Expiry of an Option, the Settlement Amount will be determined by the Platform. If the Settlement Amount is greater than zero, the Option will be automatically Exercised and the Settlement Amount will be automatically deducted from the Option Seller’s Account and credited to the Option Buyer’s Account. The Settlement Amount will be paid in USDT (or such other Eligible Digital Asset as determined by us).

4.2 The net profit for an Option Buyer with respect to each Option Contract will represent the Settlement Amount for the Option Contract, minus the Premium paid and any applicable fees. As an Option Buyer, the maximum loss with respect to an Option Contract will be limited to the amount of Premium paid, plus any fees. In contrast, as an Option Seller, the maximum profit for an Option Contract will be the Premium received and the maximum loss will be the Settlement Amount (which reflects the difference between the Strike Price and the Settlement Price), which is unlimited.

4.3 Information as to Option Contracts entered into will be made available through the Platform (including, inter alia, information on the applicable symbol, underlying Digital Asset, Premium, Strike Price, direction — i.e. Call Contract or Put Contract — Transaction Fee Rate, and, if relevant, information on the Initial Margin and Maintenance Margin requirements). We will not actively notify you of any upcoming Expiry. You acknowledge and agree that it is your sole responsibility to monitor the Time to Expiry.

4.4 By entering into (or closing out positions in respect of) Option Contracts through the Platform, you authorize us to automatically: (i) deduct from your Account any amounts owed by you with respect to such Option Contracts, and/or (ii) credit to your Account any amount owed to you with respect to such Option Contracts.

5. Fees

5.1 We charge fees for opening and closing positions in Options (“Transaction Fees”) and also for the Exercise of Options (“Exercise Fees”).

5.2 Transaction Fees are payable by both the Option Buyer and Option Seller in respect of each Option Contract entered into through the Platform. Transaction Fees are payable upon entry into and closing out of an Option Contract and are determined by reference to the Spot Index Price at the time of entry into/closing out of the Option Contract and the applicable “Transaction Fee Rate,” which may vary depending on whether you are the maker or taker of an Order.

5.3 Exercise Fees are payable upon Exercise of an Option by both the Option Buyer and the Option Seller. The Exercise Fee is determined by reference to the applicable Settlement Price and the applicable “Exercise Fee Rate.”

5.4. Transaction Fees and Exercise Fees are automatically deducted from the Account of the Option Buyer and the Option Seller and are payable in USDT (or such other Eligible Digital Asset as determined by us). We reserve the right to change applicable Transaction Fees and/or Exercise Fees (including the applicable Transaction Fee Rate and/or Exercise Fee Rate) from time to time, at its sole discretion and without prior notice. Further information on the calculation of Transaction Fees and Exercise Fees (including the applicable Transaction Fee Rates and Exercise Fee Rate) is set out on the Platform and can be accessed here.

6. Terms applicable to Qualifying Users authorized to write/issue Options

6.1 We currently only permit Qualifying Users to write/issue Options Contracts and open and maintain short positions, subject to the terms and conditions as set out in this Agreement and any additional documentation as we may require from time to time. In order to issue/write an Option Contract and/or open a short position in an Option through the Platform, a Qualifying User must first deposit the required amount of Initial Margin to their Account. In order to maintain a short position in an Option Contract, an Option Seller must meet applicable Maintenance Margin requirements. Further information on how Initial Margin and Maintenance Margin requirements are determined can be accessed here.

6.2 A Qualifying User must maintain sufficient Initial Margin and Maintenance Margin at all times. If the value of an Option Contract moves against a Qualifying User, we may issue a Margin Call to request that the Qualifying User deposit additional Digital Assets to their Account in order to ensure that the Margin Balance of the Account does not fall below the Maintenance Margin requirements. We are not required to make a Margin Call. However, if a Margin Call is made, it will be made via the Platform, by email or other electronic means. It is the sole responsibility of a Qualifying User to monitor the applicable Margin Requirements and the Margin Balance of their Account from time to time and to ensure that the Margin Balance of the Account is at all times equal to or greater than the required Maintenance Margin, so as to avoid triggering a Default (as described further in clause 6.5 below).

6.3 The Unrealized P/L of a Qualifying User who has issued or otherwise taken a short position in respect of an Option Contract is relevant for the purpose of determining Margin Requirements and is calculated by reference to the real-time value of the Option Contract (the “Mark Price”). The Mark Price is determined by us through reference to the volume-weighted average of the spot prices of the Underlying on the major spot market exchanges that we have determined shall constitute the “Price Index” (the “Spot Index Price”), and other parameters as determined by us. Further information in relation to the “Price Index” and the protective measures that may be implemented by us to avoid poor market performance and inaccurate pricing data can be found here.

6.4 The value of any Margin shall be as determined by us in its sole and absolute discretion. We may, in its sole and absolute discretion, with or without notice to a Qualifying User, vary the Margin Requirements at any time and by any amount, and may also stipulate that such Margin Requirements apply to existing Option Contracts, as well as new Option Contracts affected by such change. A higher Initial Margin may be payable in certain circumstances and the Maintenance Margin may increase in the event of adverse market movements. We may, in certain market conditions, effect an immediate change in Margin Requirements and/or require additional Margin to be deposited immediately or within a specified period of time, which may be less than 24 hours. No previous Margin Requirements shall set a precedent or bind us.

6.5 If at any time: (i) a Qualifying User fails to maintain sufficient Margin in their Account so that the Margin Balance of the Account is at all times equal to or greater than the required Maintenance Margin, and/or (ii) a Qualifying User fails to make payment of any amount under an Option Contract when due, this shall constitute a “Default” for the purposes of the FSA and this Agreement. Accordingly, without prejudice to any other rights or remedies granted to us in this Agreement, the Terms of Use, the regulatory authority, or the Trading Rules, and regardless of whether or not a Margin Call has been issued, We may (but is not obliged to), immediately or any time thereafter and without prior notice, exercise any of its rights as set out in clause 8.2 (Default and Termination) of the FSA as a consequence of such Default. For the avoidance of doubt, such rights of ours include (but are not limited to) liquidating, accelerating, hedging, and/or closing out any outstanding Option Contract entered into by the Qualifying User (whether in a capacity as Option Seller or Option Buyer), including any Option Contract that has yet to be settled on the date on which we terminate such an Option Contract, in accordance with clause 8.2(b) of the regulatory authority and/or selling or otherwise transferring any Digital Assets or other property we may hold for the Qualifying User or which has been pledged to us by the Qualifying User and applying the proceeds to the discharge of the Qualifying Users obligations owed under or in connection with an Option Contract, in accordance with clause 8.2(c) of the regulatory authority.

6.6 For the avoidance of doubt, the provisions of this clause 6 shall only apply to Qualifying Users who write/issue Option Contracts and take short positions with respect to Options.

7. Risks of Transacting in Options

7.1 You acknowledge that Options trading with respect to Digital Assets is a highly speculative activity involving rapidly fluctuating markets. Before transacting in Options through the Platform, you should take steps to understand the nature of this product and the risks involved. By purchasing or selling Option Contracts on the Platform, you acknowledge and agree that you have sufficient investment knowledge, financial expertise, experience, and the capacity to take on the risks arising from such activity. You further agree to assume all the risks arising from conducting Options trading on your own account. If you are uncomfortable with associated levels of risks, you should not enter into Option Contracts.

7.2. Before entering into an Option Contract, you must ensure that you have sufficient Eligible Digital Assets in your Account to satisfy any applicable Premium due. The Premium is a fixed value which will be deducted from your Account when you enter into an Option Contract as an Option Buyer. All Option Contracts will be purchased and Exercised on the basis of market prices, which may fluctuate from time to time. As such, there is no guarantee that prices displayed on the Platform will be current and will be the exact prices at which Option Contracts will be purchased and/or Exercised. Returns on Options trading will depend on market movements.

7.3 The net profit for an Option Buyer with respect to each Option Contract will represent the Settlement Amount for that Option minus the Premium and applicable fees. As an Options Buyer, the maximum loss will be limited to the amount of Premium paid and applicable fees.

7.4 As an Option Seller, your maximum profit with respect to the sale of an Option Contract will be the Premium paid by the Option Buyer (less any applicable fees). In terms of the maximum loss of an Option Seller, this will be the difference between the Premium and the Settlement Amount (which represents the difference between the Settlement Price and the Strike Price of the Option).

7.5 If you are a Qualifying User who is permitted to write/issue Option Contracts and take short positions in respect of Options, you will be required to meet Margin Requirements and may be subject to Margin Calls from time to time which will require you to top up additional Margin in your Account in order to avoid triggering a Default. As Digital Asset markets are open 24 hours a day, 7 days a week, Margin Calls may occur at any time, including outside of normal business hours. You further agree and acknowledge that the prices of Digital Assets are volatile and thus may decline speedily. If, as a Qualifying User, the Margin Balance of your Account falls below the required Margin Requirements and you fail to top up the Margin held in your Account then (subject to any applicable grace period agreed in writing with us), you may be put into Default. This means that you may lose all of your Margin credited to your Account and you may owe substantially more than you initially invested with respect to Options trading.

7.6 We reserve the right to delist any Option available through the Platform and/or to discontinue providing any of the services referred to hereunder, in each case at any time in its sole and absolute discretion, without giving any reason or any notice to you thereof.

7.7 We reserve the right to alter, revise, modify, and/or amend this Agreement at any time at its discretion. Any such amendments will take effect immediately upon being published on the Platform. It is your responsibility to regularly check our website to confirm the latest version of this Agreement. Your continued access and use of the Platform for the purposes of trading in Options following any amendments to this Agreement shall indicate your acceptance of such amendments. If you do not agree to any such amendments, you should cease transacting in Options through the Platform.