1. Overview
1.1 IBIT Perpetual Contract Trading (the “Service”) is a Virtual Financial Asset (VFA) derivative trading service launched by IBIT. It is designed, managed, and operated by IBIT. To enable IBIT Perpetual Contract Trading, you must fully read, understand, and agree to the “IBIT Perpetual Contract Trading User Agreement” (the “Agreement”). Please read through all the terms and conditions carefully, before choosing to accept this Agreement.
1.2 Please note that you shall not use the Service before agreeing to the terms of the Agreement. In particular, by accepting the Agreement directly or using the Service, you acknowledge that you have agreed to the terms of the Agreement.
2. Eligibility of Using the Service
2.1 You acknowledge and agree that:
- you have agreed to “IBIT Terms of Service”, and you are eligible for and not prohibited from using the “Services” defined therein;
- this Agreement does not contradict the laws of the country or region where you are from;
- you are the legal owner of the VFAs you have deposited with the Service and aforesaid VFAs are obtained from legitimate sources.
2.2 You are aware of and assume the risks in using the Service, which include but is not limited to:
- high price volatility of the VFAs and their derivatives could incur big or total losses in a short period;
- the insufficiency of VFAs deposited as margin could incur immediate forced liquidation of your positions, and you could lose all VFAs you have deposited with the Service;
- technology outrage could happen, which may delay or block your use of the Service;
- the market anomaly could happen, which may incur a loss of your VFAs.
- from time to time, to maintain the overall well-being of the market, IBIT needs to add, remove, or change policies. Such action may be in favor or against an individual user like you.
2.3 You acknowledge and agree that:
- You will not use the Service for any illegal purpose.
- You will not initiate or facilitate any form of market manipulation.
3. Using the Service
3.1 The Service provides you with a real-time order book along with other information. You may view or download information for your analysis.
3.2 You may place orders, in the form required by IBIT, via the website, client software, API, or any other channels. Once an order is filled you will not be able to cancel or amend it.
3.3 Once your “Open Long” or “Open Short” order is filled, the corresponding position is opened. Once a “Close Long” or “Close Short” order is filled, the corresponding position is closed. The Service will provide you with information about your positions, and about the value of your VFAs and their derivatives, on a real-time basis.
3.4 The Perpetual Contract will be settled when you close your position (Settlement). The Settlement price is the Latest Mark Price (defined and calculated by the Service, see “IBIT Perpetual Contract Guide”). At Settlement, the same amount of FVAs as that of UPL will be added to RPL, and RPL will be credited to your account, which can be withdrawn immediately (subject to margin requirement and other limits required by the Service). UPL and RPL are then reset to 0. (Definition and calculation method of UPL and RPL refer to “IBIT Perpetual Swap Guide”.)
3.5 At Settlement, the users with long positions and the users with short positions will exchange Funding Fees (defined and calculated by the Service, see “IBIT Perpetual Contract Guide”).
3.6 You shall pay IBIT for the Service. As for the payment arrangement, please refer to “IBIT Perpetual Contract Guide” for details.
4. Risk Management
4.1 The Service introduces various measures to control systematic risks, including but not limited to:
- Margin System with Tiered Maintenance Margin Ratio
- Forced Liquidation Mechanism
- Auto-deleveraging Mechanism(ADL)
IBIT will continuously improve its risk-management measures.
4.2 “Margin System with Tiered Maintenance Margin Ratio”. Based on the VFAs you have deposited with the Service, the size of the position you can open is limited. In addition, to avoid Forced Liquidation, your Margin Ratio (defined and calculated by the Service, see “IBIT Perpetual Contract Guide”) needs to be kept higher than the Maintenance Margin Ratio, which is the lowest required Margin Ratio for you to maintain your current positions. A Tiered Maintenance Margin Ratio Schedule is adopted by the Service. The larger the position opened, the higher Maintenance Margin Ratio will be required. Please refer to the “IBIT Perpetual Swap Guide” for details.
4.3 “Forced Liquidation Mechanism”. When the Margin Ratio of your account is lower than the Maintenance Margin Ratio+ Forced Liquidation Fee Rate, a Forced Liquidation of your account will be triggered. Your account will be temporarily taken over by the Service’s Risk Management Engine; and will be back under your control after the liquidation process is done. In Forced Liquidation Mechanism, the Service’s Risk Management Engine will keep liquidating your positions, until your Margin Ratio is back above your Tiered Maintenance Margin Ratio or your positions are fully liquidated. Please refer to the “IBIT Perpetual Contract Guide” for details.
4.4 Autoーdeleveraging, abbreviated as ADL, refers to a mechanism for liquidation of counterparty positions to control the platform's overall risk when extreme market conditions or force majeure lead to insufficient insurance funds or rapid decline of the insurance fund. Please refer to the “IBIT Perpetual Contract Guide” for details.
4.5 If the size of your positions or open orders accumulates to a level that poses a considerable threat to other users, IBIT, under its discretion may request you to cancel your orders or close part of your positions. You acknowledge and agree that IBIT reserves its sole and absolute right and discretion, under exceptional circumstances, to entirely or partially close your position or orders.
4.6 About Abnormal Behavior: To regulate the platform's contract trading market, safeguard the rights of the users, and enhance the product usage experience, IBIT will employ multidimensional evaluation methods to identify users' abnormal trading or other abnormal behaviors. When users engage in operations related to abnormal trading behavior, the platform reserves the right to take actions on the user's account based on the impact caused by abnormal trading behavior, including but not limited to deposit and withdrawal suspension, account control, and account suspension.
- Abnormal behavior (including but not limited to the following): ① Illegal arbitrage behavior: Quantitative arbitrage, third-party automated arbitrage, wash trading arbitrage with colluding accounts, arbitrage and proprietary trading position trading, etc.; ② Market manipulation: Illegally profiting by manipulating market prices; ③ High-frequency trading: Manual or third-party program-based high-frequency or ultra-short-term trading within an extremely short time (60 seconds); ④ Abnormal account trading: Collusion, transfers, arbitrage and proprietary trading position, etc., between stolen accounts and multiple associated accounts; ⑤ Illegal profit brushing: Using multiple devices and accounts to brush platform fees, rebates, bonuses, hedging, or other activity rewards; ⑥ Excessive position holding: Merging positions across associated accounts, opening trading volumes exceeding specified limits, etc.; ⑦ Illegal profiting: Exploiting platform product vulnerabilities or activity mechanism vulnerabilities to illegally gain profits, harming users and the platform; ⑧ Defamation attacks: Behaviors that negatively impact IBIT's brand or relevant markets, damaging the platform's image; ⑨ Violation of the laws and regulations of the user's country or region; ⑩ Other abnormal behaviors as separately specified.
- Abnormal behavior handling solutions (possible solutions for account handling): ① Notification, warnings, or other communications to the account engaging in abnormal behavior; ② Suspension or closure of abnormal behavior account's opening, closing, trading, deposit, and withdrawal functions; ③ Invalidation of abnormal trades, rolling back the number of transactions; ④ Suspension or termination of abnormal behavior user's account and access permissions; ⑤ Deduction of gains obtained through abnormal behavior and rebates; ⑥ Legal measures or prosecution assistance in case of illegal activities by the account holder engaging in abnormal behavior.
5. Limitation of Liability
5.1 You acknowledge that you understand the rules and policies thoroughly. IBIT will not be liable for your loss due to a misunderstanding of the rules and policies. In particular, to open or maintain your positions, the amount of VFAs you deposited as a margin will need to meet certain requirements. If the requirements are not met, Forced Liquidation will be triggered. When a Forced Liquidation happens, you could lose all the VFAs you have deposited as margin.
5.2 The information of your trading becomes official at Settlement. The information shown between 2 consecutive Settlements are for reference purpose only and cannot be guaranteed to imply the official outcome. You could take a loss by your actions based on the intro-settlement information provided. IBIT will not be liable for your loss incurred.
5.3 To comply with the changes in laws or regulations, or to maintain the overall wellbeing of the market, IBIT will need to, under its sole discretion, change policies or implement emergency rules from time to time. Such changes or implementations could lead to temporary inaccessibility of your account, immediate closure of your certain positions, or other interruption of the Service. IBIT will not be liable for your loss incurred.
5.4 IBIT will not be liable for any loss incurred by uncontrollable situations, which include but are not limited to:
- system maintenance as announced in advance;
- Internet device malfunctions that disabled data transfer;
- war, riots, floods, earthquakes, or any other unexpected disruptions;
- hacking attacks, computer viruses, internet network malfunctions, banking issues, website updating, service suspension, delay or cancellation due to the interruption of government;
- unpredictable or unresolvable issues with the technologies currently available;
- caused by third parties including inappropriate or delated executions.
5.5 Network failures, system failures, hacking attacks, and other unforeseen factors have the potential to cause abnormal turnover, market interruptions, and other possible anomalies. IBIT reserves the right to cancel and/or roll back transactions over some time that it deems sufficient to mitigate any detrimental market effects. IBIT will not be liable for any loss incurred thereby.
5.6 You are aware that technology outrages can happen unexpectedly. IBIT will not be liable for any loss incurred by technology outrages which include but are not limited to:
- loss, delay, interruption, or other malfunction of the connection to the Service.
- stopping, slowness, no response, or other malfunction of the Service, due to overloading.
- malfunction due to the Service’s incapability to retrieve necessary data correctly from a third party through the Internet.
5.7 IBIT strictly prohibits unfair trading behaviors. IBIT reserves the right to enact, under its sole discretion, and take control of your account, if you
- are involved in price manipulation, insider dealing, market manipulation, market distortion, or any other malicious wrongdoings to the market;
- might be harming other users or IBIT by exploiting the Service’s vulnerabilities or by other unreasonable means;
- are involved in any other activities that IBIT deems harmful to the overall well-being of the market.
IBIT also reserves the right to take actions, including but not limited to closing your accounts, limiting trading, halting trading, canceling transactions, rolling back transactions, and returning the relevant digital assets to any complainant to eliminate any adverse effects to the overall well-being of the market. In no event shall IBIT be liable to you for any loss incurred when such action against you happens.
6. Indemnification
6.1 You must indemnify IBIT for actions related to your IBIT account and your use of the Service.
6.2 You hereby agree to defend, indemnify, and hold IBIT harmless from any claim or demand (including reasonable legal fees) made or incurred by any third party against IBIT due to or arising out of your breach of this agreement, your improper use of the Service, your violation of any law or the rights of a third party and/or the actions or inactions of any third party to whom you grant permissions to use your IBIT account or access our website, software, system (including any network and servers used to provide any of the Service) operated by us or on our behalf, or any of the Services on your behalf.
7. Miscellaneous
7.1 The contents of this Agreement also include IBIT's various system specifications, other agreements or rules in the annex to this Agreement, and other relevant agreements and rules regarding the Service that IBIT may from time to time issue. Once the above content is officially released, it is an integral part of this agreement, and you should also abide by it. In the event of any conflict between the above content and this Agreement, this Agreement shall prevail.
7.2 IBIT reserves the right to unilaterally modify this Agreement (including the above contents) if necessary. Such modification could happen at any time without prior notice. If any changes are made, the revised content shall be posted on IBIT's website immediately. Please check the latest information posted therein to inform yourself of any changes. Your continued use of or access to the Service following the posting of any changes constitutes acceptance of those changes. If you do not accept the revised content, you should stop using the related services.
7.3 You should read the Agreement, and any document referred to in them very carefully. If there is anything that you do not understand in the Agreement and any document referred to herein, you should discuss this matter with IBIT and seek the necessary clarification. Any formal communication with you will be undertaken through electronic mail unless otherwise instructed. Documents will be sent to you by electronic mail and you should seek to send any documents to us by the same means. You will also be able to contact us telephonically. Any formal communication with you will, unless otherwise agreed, be made in the English language. In the event of any discrepancy between communications and the Agreement, the Agreement shall prevail.
7.4 The establishment, validity, explanation, alteration, execution, and dispute resolution of this user agreement shall be governed by the laws of IBIT.
7.5 If there is any dispute between a user and IBIT, both parties should try to work out a resolution through negotiations. However, if the attempt is unsuccessful, both parties should agree to resolve the disagreement or dispute through BigON judiciary.
7.6 All the headings in this agreement are for reading convenience only and shall not affect its interpretation.
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