1. General Provisions
1.1 The Isolated Margin Trading Rules (“Rules”) are made in accordance with the principles of fairness, openness and impartiality for the purposes of regulating margin trading and margin loans of digital assets, maintaining market order, and protecting the legitimate rights and interests of users.
1.2 These Rules are supplementary provisions to The Margin Trading Service Agreement.
1.3 These Rules shall apply to Margin Loan and isolated margin trading conducted on this Website. Any matter for which there is no specific provision in these Rules shall be subject to User Agreement and other relevant provisions of this Website.
2.1 Isolated margin trading users shall provide separate Margin for the Margin Loan for each trading pair.
2.2 Upon User’s request for Margin Loan, the system will set up Isolated Margin Account for each trading pair. Users may use the net assets in an Isolated Margin Account as the Margin for the Margin Loan for the relevant trading pair.
3. Margin Loan
3.1 The Maximum Amount of Single Margin Loan refers to the maximum amount of digital asset that can be borrowed by a single User for each margin trading pairs. The calculation of the Maximum Amount of Single Margin Loan will be subject to the pre-set maximum total amount of Margin Loan allowed on the Platform and the Platform’s risk control rules.
In these Rules, the Maximum Margin Loan Amount = net assets in an Isolated Margin Account * (maximum margin multiples - 1) - outstanding Margin Loan
3.2 After the successful advance of a Margin Loan when the borrowed digital assets are delivered to the User's Isolated Margin Account, interest shall accrue on such Margin Loan immediately. The User may use the borrowed digital assets for isolated margin trading in the permitted trading pairs.
4.1 Interest-calculation Rules:Calculate the single interest rate based on the daily interest rate. The interest calculation days are calculated from the actual borrowing time of the user. The interest is automatically calculated every day at 0:00 (GMT + 8).
4.2 Users may repay their debts in advance and pay the interest according to the actual borrowing days, calculated once every day at 0 :00 (GMT + 8). The user gives priority to returning interest when repaying the loan.
4.3 Outstanding loan interest shall be included into the calculation of the Risk Ratio (as defined below). Assuming that there is no deduction of interest, if there is any outstanding interest unpaid for a long time, the Risk Ratio of the User's Isolated Margin Account may be reduced to a level below the Liquidation Line (as defined below), leading to the risk of forced liquidation. In view of this, the Users are advised to pay interest regularly or deposit a sufficient balance in their margin accounts.
5. Repayment/Candy and Airdrop
5.1 Rules for Repayment: Users can manually select the Margin Loan order to be repaid, and any repayment shall be deemed repayment of the Margin Loan which order was made the earliest, provided that such repayment shall be deemed the payment of its interest first before repayment of the principal. After the principal and interest of a Margin Loan are paid off, the status of such Margin Loan order shall be changed to “paid off”, and no interest will be calculated for such order thereafter.
5.2 Airdrop Rules: Users are not allowed to obtain airdrops from the underlying digital assets of any Margin Loan.
6. Risk Control
6.1 Users participating in Margin Loans may use the net assets in their Isolated Margin Accounts as the Margin, and the digital assets in any other accounts are not included in the Margin for isolated margin trading.
6.2 The Platform has the right to monitor the Risk Ratio of the Users’ Isolated Margin Account on a real-time basis, and adopt corresponding measures in response to the fluctuation of the Risk Ratio.
In these Rules, the Risk Ratio of an Isolated Margin Account = Total Asset Value of an Isolated Margin Account/(Total Liabilities + Outstanding Interest)*100, where:
i. market value conversion shall be calculated in current currency;
ii. Total Asset Value of an Isolated Margin Account = current total market value of all digital assets in the Isolated Margin Account
iii. Total Liabilities = the current total market value of all outstanding Margin Loans in the Isolated Margin Account
iv. Daily interest calculation: 0：00 (GMT + 8) automatically calculated daily
6.3 When the Risk Ratio of a Isolated Margin Account reaches one hundred and twenty five percent (125%) (the "Warning Line"), the system will send warning notice to the User according to the contact information provided by the User in advance, so as to inform the User of the trading risks. After receiving such notice, the User shall promptly repay the relevant Margin Loan or deposit a sufficient amount of Margin from his or her Exchange Account, so as to ensure that the Risk Ratio gets back to above the Warning Line.
6.4 When the Risk Ratio of an Isolated Margin Account of a User reaches one hundred and ten percent (110%) ("Liquidation Line"), the system will automatically trigger forced liquidation, by closing the position in the Isolated Margin Account held by the User, and the proceeds generated from such forced liquidation will automatically be used to repay all the Margin Loans borrowed by the User. If the User has multiple Margin Loans, repayment will be made in order according to the time when such Margin Loans occur, with the loan that occurs the earliest to be repaid first. If all assets in the User's Isolated Margin Account are insufficient to repay all the Margin Loans borrowed by the User under the same Isolated Margin Account (a scenario known as "Wearing"), the Platform shall have the right to recourse for any outstanding loans and any other debts against the User.
6.5 The Users shall pay due attention to the risks of margin trading and promptly adjust their position-holding ratio to avoid risks. All losses that arise out of or in connection with forced liquidation shall be borne exclusively by the User that owns the relevant Margin Account, including but not limited to: losses that arise when the User is unable to timely adopt corresponding measures after receiving warning notice from the system, because the Risk Ratio of the relevant Isolated Margin Account reaches the Warning Line and then quickly reaches the Liquidation Line due to violent fluctuation in the digital asset prices.
6.6 The Platform will manage the total market value of Margin Loans. When the aggregate amount of Margin Loans on the Platform reaches the pre-set maximum total amount of Margin Loans, the system will automatically suspend the provision of Margin Loans until the total market value of Margin Loans becomes lower than such pre-set maximum total amount.
6.7 The Platform will adjust the pre-set maximum total amount of Margin Loans and the Margin Conversion Ratio according to the actual operation conditions and risk level of the market.
6.8 In case of Wearing after an Isolated Margin Account of a User is forcefully liquidated by the system to repay all Margin Loans under the same Isolated Margin Account, the Platform has the right to restrict any transfer out from such Isolated Margin Account to the User’s Exchange Account and restrict withdrawal from the User’s Exchange Account. The withdrawal restriction will be revoked after the outstanding Margin Loan and any other related debts are fully paid up.
6.9 In order to guarantee the security of account assets, Users may not transfer digital assets out of an Isolated Margin Account unless the Risk Ratio of such Isolated Margin Account exceeds 200%, and the Risk Ratio of such Isolated Margin Accounts shall not be less than 200% after such transfer.