Crypto Lending Agreement
Crypto Lending Product (hereinafter referred to as "Product") referred to in this Agreement means a coin appreciation product provided by KuCoin (hereinafter referred to as "KuCoin", "Company", "us", "our", "Platform" or "KuCoin Platform") to you (hereinafter referred to "you" or "user"). The purpose of this Crypto Lending Agreement (hereinafter referred to as the "Agreement") is to serve as a formal agreement between both parties regarding this product and related products. It also aims to clarify the rights and obligations of both parties in the use of these products. This Agreement is legally binding on KuCoin and its users.
When you click the "Read and Agree" button on Crypto Lending Agreement page, you confirm that you have carefully read, fully understood, and completely accepted all the terms and conditions of the Agreement (including any amendments made by KuCoin to this Agreement from time to time), in particular the provisions that exclude or limit KuCoin's liability and those that restrict or exclude the rights of users. If you do not agree with the terms of this Agreement or refuse to acknowledge KuCoin's unilateral right to modify this Agreement at any time, you are not authorized to use the Product or other related products provided by KuCoin under this Agreement. In such cases, you must immediately cease accessing and using the Products or the KuCoin Platform.
We cannot ensure the legality of specific digital tokens. In other words, we cannot accurately determine whether it is legal to hold or trade such digital tokens. The Product may be exposed to regulatory policy risks in certain jurisdictions. Hence, prior to taking any action, you must exercise prudence and make informed decisions after taking into account the regulatory policies of the jurisdiction where the transaction is conducted. You shall assume your own responsibility and be fully aware of the laws and regulations applicable to the disposal, supervision and taxation of digital tokens and their OTC transactions.
Your decision to use this Product on the KuCoin Platform is entirely a voluntary transaction based on your own financial situation and understanding of the associated risks. This transaction is not related to us or any third party.
The assets of this Product will be used for KuCoin's margin loan business, and only currencies that are eligible for margin loans on KuCoin Platform are supported by this Product.
Before using this Product, you confirm that you have carefully read and agree to the following rules:
6.1 Subscription and redemption:
(1) Subscription: Users can apply for subscription at any time. Following a successful subscription, the assets shall be subject to the bidding process in accordance with the configured lending APY. If the bidding is successful, the funds will be lent to the margin loan borrowers.
(2) Redemption: Users can apply for redemption at any time. Upon application for redemption, the assets will be transferred to the account in real time. However, the assets to be redeemed will not participate in the current hour's lending APY matching and interest calculation.
6.2 Limit:
KuCoin's Crypto Lending imposes a personal subscription limit on both master and sub-accounts. However, no limit has been set for redemption at present. KuCoin will adjust the individual subscription and redemption limits, as well as the total limit of Crypto Lending, depending on the actual market conditions and risks involved.
6.3 Interest Rate and Interest Payment:
(1) Interest rate
Users can configure the Minimum Lending APY. Market bidding of Minimum Lending APYs is conducted each hour, with the highest value used as the Current Lending APY.
If, Minimum Lending APY < Current Lending APY, then assets will be successfully lent out using the Current Lending APY.
If, Minimum Lending APY > Current Lending APY, then assets will not be lent out, and no interest will be earned.
If, Minimum Lending APY = Current Lending APY, then either a portion of the assets will be lent out or no assets will be lent out. If multiple users set the same Minimum Lending APY, the loan will be granted to the user who subscribes first.
(2) Interest calculation and payment
If funds are successfully lent out at the top of the hour, your interest for this hour will arrive within the next hour.
15% of earnings will be deducted to go into the Risk Insurance Fund, with the remaining 85% being paid out to users who lend out their assets. Therefore, interest paid out to users are calculated as follows: (Amount lent out) * (Current Lending APY) / 365 / 24 * {3_85%}.
6.4 Sharing negative balance:
(1) The Platform will take 15% of the margin loan interest as income and use it as the Risk Insurance Fund to share the losses from negative balance of margin trading. The Platform may choose to use the income in other ways in the future.
(2) If the Risk Insurance Fund is insufficient to cover the losses from negative balance of margin trading, the daily receivable margin loan interest will be partially deducted (up to 50% of the interest) to ensure that Crypto Lending users have daily interest income. The remaining amount of negative balance will be paid by the Platform in advance and gradually deducted from the Risk Insurance Fund and daily distributable interest.
Using this product may result in higher investment income, but it may also expose you to greater investment risks. To ensure you are aware of the risks associated with using this Product, we are providing you with a risk disclosure statement in accordance with applicable laws, regulations, and national policies. Please read it carefully. The risks you may encounter when using this Product on the Platform include but are not limited to:
7.1 Risks from digital token assets ("digital assets"): The market for digital assets is relatively new and lacks comprehensive regulatory policies in many countries. Currently, digital assets are mainly used by investors and have less usage in the retail and commercial markets. Therefore, the price of digital assets is highly susceptible to fluctuations, which can negatively impact digital asset investments. Unlike the stock market, the digital asset market lacks a price cap mechanism and operates 24 hours a day for trading. The limited number of transactions in the digital asset market can lead to significant price fluctuations due to manipulation by major traders (i.e. bankers) and the impact of global government policies. The price of a digital asset can increase multiple times in a single day or decrease by half within a day. As a result of the trading characteristics of digital assets, you are solely responsible for any economic losses that may arise.
7.2 Policy risk: The exchange of digital assets can be halted or forbidden at any time due to new or updated laws, regulations, and regulatory documents in different countries. Any financial losses resulting therefrom are solely your responsibility.
7.3 Internet and technical risks: We cannot guarantee that all the information, programs, and texts on the Platform are entirely secure and free from interference or damage by malicious programs like viruses and Trojans. Thus, you assume full responsibility for any losses resulting from your use of our products, including log-in, and downloading any programs, information, or data. Moreover, there are risks inherent in using an internet-based trading system, which may include software or hardware failure or issues with internet connectivity. Since we have no control over the reliability and availability of the internet, we will not be responsible for any distortions, delays, or connectivity failures that may occur.
7.4 Force majeure: We will not be responsible for any losses resulting from delays or failures in our products, as well as any actions of third parties beyond our control, or any instances of force majeure. The above force majeure circumstances include but are not limited to: information network equipment maintenance, information network connection failure, computer or communication or other trading system failure, power outage, hacking, extreme weather, accident, strike, labor dispute, uprising, riot, lack of productivity or means of production, fire, flood, storm, explosion, war, causes of banks or any other partners, collapse of digital asset markets, governmental action, and judicial or administrative order.
7.5 Market information risk. We cannot guarantee the accuracy or suitability of market analysis, market evaluation, or other related information. We cannot control, endorse, or guarantee the accuracy or completeness of any information or advice provided by the introducers, other agencies, or their employees, in relation to any transaction. You assume full responsibility for any risks associated with such information or advice, and we shall not be held liable for any such risks.
7.6 Risk of account asset freezing and transfer. In the event that regulatory authorities present investigation documents and request our cooperation in relation to your account on KuCoin Platform, including the freezing or transfer of account assets, we will provide the necessary account information or undertake the required actions as requested by the regulatory authorities. In the event of a breach of your account privacy or inability to access your account, we will not be held responsible for any resulting losses.
7.7 Market risk. The investment income is significantly influenced by market conditions, including changes in the economic landscape and international economic situations. These risks are inherent to investments and financing, and almost all investment assets are influenced by the market. You are solely responsible for any financial losses resulting from market risks, and we shall not be held liable for any such losses.
7.8 Other risks: losses resulting from forgetting your account name or password, improper operation, investment decision-making mistakes, among others; losses resulting from online operation by entrusted persons or malicious activities by others; losses resulting from allowing third-party use of the Product on your behalf on KuCoin Platform; losses resulting from any unforeseeable accidents or events beyond control; and other risks that may be listed in this Agreement and other agreements. You are solely responsible for bearing any losses resulting from the aforementioned risks.
The risk disclosure statement in this Agreement does not cover all risks associated with this Product. By conducting any investment operations on KuCoin Platform, users agree that such operations reflect their true investment intentions and that they unconditionally accept all the risks mentioned above and benefits associated with their investment decisions.
This Agreement also includes KuCoin's system specifications, other agreements or rules related to this Agreement, and other agreements and rules related to the Product that KuCoin may publish from time to time. Once the above provisions are officially released, it becomes an integral part of this Agreement and is legally binding on users. By using the Product, you acknowledge that you have read, understood and accepted this Agreement, the Terms of Use for KuCoin Platform, the Privacy Policy, and the Risk Disclosure Statement, and also the relevant terms and conditions, product terms, user agreement, trading and operating rules, policies, announcements and other rules that are related to the Product and periodically published on KuCoin Platform (as amended and restated from time to time) (the "User Agreements"), and you agree to be legally bound by their terms and conditions. Unless you have read and accepted all the terms and conditions of this Agreement and the applicable User Agreements above, you are not authorized to use this Product and its related products.
Unless otherwise specified herein, terms used in this Agreement shall have the meanings set forth in the Terms of Use for KuCoin Platform.
Please read this Agreement carefully before using the Product. By using the Product, you are deemed to have read and agree to the terms and conditions set forth in this Agreement. The Company reserves the right to amend this Agreement without prior notice. If you continue to use the Product after this Agreement is amended, you are deemed to have agreed to the changes to this Agreement. If you do not agree to the changes to this Agreement, you shall stop using this Product. The Company has the final right to interpret this Agreement.