Margin Trading Agreement
The margin trading mentioned in this Agreement refers to the transaction that you participate in, by borrowing a certain amount of digital tokens from KuCoin (hereinafter referred to as “us” or “our” or “we”) through pledging digital tokens, and carrying out going long (buying)/going short (selling) operations, to leverage large capital with smaller one and earn more income. The Agreement is intended to serve as a formal agreement between our two parties on margin trading services, and clarify the rights and obligations of both parties in the process of margin trading services.
I. When you click the "Read and Agree" button on the page of our "Margin Trading Agreement" (hereinafter referred to as "the Agreement"), it indicates that you have fully accepted all the terms of the Agreement.
II. We cannot guarantee the legality of a particular digital token, that is, we cannot accurately determine whether it is legitimate to hold or trade such digital tokens. Margin trading may face the risk of regulatory policies within a certain jurisdiction. Thus before any of your transactions, you shall make a prudent judgment on the premise of understanding the regulatory policies of the territory, in which the transactions take place. You shall bear your own responsibility and fully understand the laws and regulations applicable to the disposal, supervision and taxation concerning digital tokens and their over-the-counter transactions.
III. Due to the high risk of this trading method, margin trading is suitable only for professional investment institutions or those with rich investment experience, or the people who fully understand all the risks related to margin trading, and can withstand partial or all losses of the funds in their accounts due to investment missteps. Your margin trading on our platform is entirely a voluntary transaction behavior conducted by you based on your own economic situation and after understanding the risks involved, and has nothing to do with us or any third party.
IV. When conducting margin trading on our platform, you may obtain higher investment returns, but you may also encounter greater investment risk. In order to give you an insight into the risks involved, in accordance with relevant laws, administrative regulations and national policies, the risk disclosure statement is hereby provided for you to read carefully. The risks existed in your margin trading on our platform include but not limited to:
(1) The risk of digital token asset ("digital asset") itself: The digital asset market is a brand new field and yet unrecognized, and may not grow. At present, digital assets are mainly used by speculators in large quantities, and less used in the retail and commercial markets. As a result, the prices of digital assets are prone to volatility and, in turn, adversely affect the investment in digital assets. The digital asset market does not have a price limiting mechanism as the stock market does, and it is open for transaction 24 hours a day. Due to the fact that there’s relatively less deals in the market, the prices of digital assets are prone to sharp fluctuations as the result of the manipulation of key traders (namely, the bankers) and the influence of government policies across the globe. It is possible that the price of a digital asset may increase several times a day, or fall by half in one day. Therefore, the economic losses caused to you due to the trading characteristics of the digital assets shall be born entirely by you.
(2) Policy risk: Due to the formulation or amendment of the laws, regulations and regulatory documents of various countries, the transactions between funds may be suspended or prohibited at any time. The economic losses incurred due to the suspension or prohibition of the transaction of digital tokens as the result of such formulation or amendment shall be borne entirely by you.
(3) Internet and technology risks: We cannot guarantee that all the information, programs, texts, among others contained in our platform are completely safe and free from the interference or damage of any malicious programs such as viruses and Trojans. Therefore, your behavior like logging in and using any of our services, or downloading and using any of the downloaded programs, information, data, etc., is up to your own decision and at your own risk, any and all losses thus incurred shall be fully borne by you. There are also risks associated with the use of Internet-based trading systems, including but not limited to the failure of software, hardware or Internet connection. Since we cannot control the reliability and availability of the Internet, we will not be liable for any distortion, delay or connection failure.
(4) Force majeure risks: We will not be liable for any failure or delay in our service as well as any loss thus incurred due to any actions of any third party beyond our control, or any force majeure, including but not limited to: information network equipment maintenance, information network connection failure, computer or communication or other trading system failure, power failure, hacking, extreme weather, accident, strike, labor dispute, revolt, uprising, riot, lack of productivity or production means, fire, flood, storm, explosion, war, the reasons of a bank or any other partner, the collapse of the digital token market, government actions, judicial or administrative order.
(5) Market information risk. We do not guarantee the correctness and applicability of the market analysis, market evaluation, etc. As for the information or advice that you have received or will receive from the introducer or any other organization or its employee, we cannot control, or support, or guarantee the accuracy or completeness of the content related to the transaction. All risks arising therefrom shall be borne by you, and we will not bear any responsibility.
(6) Risks of being seized and frozen. When the competent authority presents corresponding investigation documents and asks us to cooperate in investigating your account on our platform, or take measures to seize, freeze or transfer your account, we will, as per the requirements of the competent authority, provide the corresponding data of your account, or carry out corresponding operations. We will not be liable for any privacy disclosure or inoperability of your account or any loss thus incurred.
(7) Market risk. The amount of investment return is closely related to the market, such as economic situation and the changes in international economic conditions. These risks exist in the investment and financing, and almost all investment assets will be affected by the market. Any and all economic losses caused by such market risks shall be borne by you, and we will assume no responsibility for that.
(8) Risks of risk control operations taken by us. By introducing margin, spot trading can increase your revenue if the market moves in the same direction as your judgment; but if the market moves in a direction opposite to your judgment, the loss will also be amplified. In the event of any risk exposure in a margin trading account, we are entitled to implement risk control operations such as reducing the position, closing the position, or automatic repayment. You shall fully understand the high risk of margin trading and bear all economic losses arising from such leveraged trading, and we will assume no responsibility for that.
(10) When participating in our margin trading, you shall control the risks, evaluate the value and the risks of digital token investment, and bear the economic risk of losing all the money you have invested in it; you shall get involved in such transactions based on your economic conditions and risk tolerance, and be fully aware of the risks existed in digital token investment. When you invest in the margin trading of digital tokens, you have both the possibility of reaping profits and the risk of suffering losses.
The risk disclosure statement in the Agreement is unable to reveal all risks existed in the margin trading of digital tokens. Please be sure to have a clear understanding that as the market is risky, investment decisions must be made prudently.
V. As for the risk of closing positions caused by various factors such as server gateway throttling and unstable website access, we will assume no legal responsibility.
VI. When your debt ratio is greater than or equal to Debt Ratio for Margin Call, the trading system will liquidate your account to close your positions in accordance with our real-time order price, so as to return the loan. If the price fluctuates drastically and the trading system is unable to close your positions, resulting in a loss on the platform, we are entitled to recover the loss from you.
VII. The maximum loan amount currently supported by us is determined based on the number of leverage: For the leverage 3X, the corresponding maximum loan amount is 2 times; for the leverage 5X, the corresponding maximum loan amount is 4 times.
VIII. We will start to calculate the interest the moment you get a loan from the platform. The accrued interest will be calculated on an hourly basis, and the time less than one hour will be counted as an hour. The accrued interest is calculated by the amount of the loan multiplied by the hourly interest rate and will be settled in a lump sum when you repay the loan.
IX. In order to ensure fund security, when you have an unrepaid loan, your maximum withdrawal amount in your margin account (equivalent BTC) on our platform = (initial debt ratio * account balance – debt) / initial debt ratio * 60%.
X. Each time you apply for a loan and then return the loan, it will be treated as a deal, and you will be charged for the interest.
XI. The contents not agreed in the Agreement shall be executed with reference to the User Agreement or similar agreement in the trading system.
XII. Others: Please read the Agreement carefully before applying the margin trading services provided by us. Once the relevant operations are carried out, you are deemed to have read and agreed to the terms of the Agreement. We reserve the right to modify the contents of the Agreement without any further notice, and we have the final right to interpret the contents of the Agreement.