To start BitForex contract transaction, users should read and follow this Terms and Conditions for BitForex Contract Transaction Users. Users are advised to read carefully and fully understand the terms and conditions, especially the terms of the exemption or limitation of liability, then please choose to accept or not accept.
Users are not authorized to use BitForex contract transaction and its corresponding services unless they read and accepted all terms. User’s login, viewing and posting of information about the service are deemed to have been read and accepted the terms.
1.1 Contract transaction is a digital currency derivative launched by BitForex. BitForex is responsible for the design management of the product and the operational services of the transaction platform.
1.2 The users should warrant that they are at least 18 years old when they serve this Terms and register as the users of this platform; the content of this Terms doesn’t conflict with the laws of the country in which the users belong to, and they should comply with the relative laws of the country; compliance with the transaction rules of the BitForex platform and the contract transaction product. If the above conditions are not met, the users should immediately terminate the registration or stop using the service.
2. Rules of contract product
2.1 The object of the contract includes BTC, ETH, and other digital currency types recognized by BitForex. The value of contract object is judged with USDT during the transaction.
2.2 Two types of contracts are provided at present: weekly and quarterly. The weekly contract refers to the contract that is delivered on the Friday closest to the transaction day; the quarterly contract refers to the contract that is delivered on the last Friday of the nearest month in March, June, September and December. The number in the contract name is the delivery date of the contract, such as: BTC0928, the delivery date is September 28.
2.3 Weekly settlement system is used in BitForex contract transaction, which is settled every Friday at 16:00, and the contract delivered in the current week does not settled in the settlement of the current week. At the time of settlement, the transaction will be suspended, and the commission and arranging of the order will be resumed after the settlement is completed. The average price of the price during those 15 minutes before settlement is used as the settlement price by BitForex. The system will calculate the unrealized profit and loss according to the settlement price, user’s base holding price and holding quantity. The unrealized and realized profit and loss of each contract will be transferred to the sub-account of the contract as fixed assets after allocation. After settlement, the base settlement price will be adjusted to the latest settlement price, and the unrealized profit and loss will be calculated based on the new base settlement price.
2.4 If there is a market abnormality before and after the delivery and settlement, which lead to a wide fluctuation of the index or an abnormality of the allocation ratio, we will be able to select delayed delivery and settlement according to the situation. The specific rules will be announced on the Bitforex platform.
3. Transaction rules
3.1 Users can submit transaction commission through those methods approved by BitForex, such as web page, client, and api. The content of the commission includes commission price, commission quantity, commission direction, opening and closing direction and other contents required by BitForex.
3.2 When the user releases the opening order and conclude the deal, the investor will establish the corresponding contract position. When the position is not closed, the unrealized profit and loss will occur as the price fluctuates. Unrealized profit and loss can act as a margin for the contract, but cannot be withdrawn. After the new settlement date, this part of profit will be transferred to the settled income. Unrealized profit and loss of multiple positions = (current price – base settlement price) * holding quantity.
Unrealized profit and loss of short position= (base settlement price- current price) *holding quantity.
3.3 When the user release a closing position and conclude the deal, corresponding holding quantity will be deducted from the position held by the investor. The portion of the closed income is not included in the current position, and the portion of the profit is automatically transferred to the sub-account of the contract.
3.4 The delivery time of the contract is at Hong Kong time 16:00 on the contract expiration and all expiring contracts that haven’t been closed will be delivered at the delivery price. Before the delivery, the system uses the arithmetic mean of the US dollar index in the last hour as the delivery price to close the contract for the current week. The realized profit and loss of the weekly contract will be added to the account balance, and the settlement liquidation is completed.
After the delivery is completed, the current weekly contract will be closed and a new contract will be opened:If there is a week left to the delivery of quarterly contract, the quarterly contract will directly turned into a new weekly contract, and the next quarterly contract will be opened;
Before a quarterly contract turning into a current weekly contract, a new current weekly contract which named by the next delivery day can be opened.
An unconcluded closing order will be delivered at the delivery price before the delivery, and the resulting loss will be registered as the heavy position user loss of the contract. The heavy position user loss is firstly assessed through the risk reserve, which is used to make up for the loss of the heavy position user. The shortfall will be equally allocated according to the full account allocation system.
3.5 If there is a market abnormality before and after the delivery and settlement, which leads to a wide fluctuation of the index or an abnormality of the allocation ratio, BitForex will have the right to select delayed delivery and settlement according to the situation. The specific rules will be announced on the Bitforex platform.
4. Risk control rules
4.1 BitForex contract transaction adapts full-position margin system and price-restricted forced liquidation system.
4.2 Full-position margin system
BitForex contract transaction adopts the full-position margin system, that is, the assets transferred to the sub-account of the contract and the profit and loss generated by the position will be used as the contract's account equity, and all account equity can be used as a holding margin. The risk of the account is determined by the margin rate.
Margin rate= account equity/margin needed when holding – adjustment ratio
The adjustment ratio is related to the leverage multiple that is used. At present, BitForex has supported leverage of 20 times and the corresponding adjustment ratio is 20%. When the latest concluded price moves in the opposite direction of the holding, the reduction of the account equity will lower the margin rate. When the margin rate is less than or equal to 0, the account will be forced to liquidation, all positions will be forced to liquidation at a limited price and the commissions that are not forced to liquidation will be allocated at the time of delivery.
4.3 Price-restricted forced liquidation system
When the latest concluded value moves to the opposite direction of holding, the decrease of account equity will reduce the margin rate, and when the margin rate is below 0, forced liquidation will be touched off, known as losing. After forced liquidation is touched off, the system will cancel all the unconcluded orders of the user and release the margin, then judge if the user’s margin rate is still less than or equal to 0, if yes, the system will make a forced liquidation commission at the concluded price when account equity= 0. When forced liquidation is touched off, all contracts and positions in the sub-account will be forced to be liquidated. When the forced liquidation is touched off by users, the losing position will be commissioned to the market according to the whole loss price of the users’ equity, and the transaction will be carried out based on the actual commission situation, the final actual price may be different from the transaction price of the user’s losing order. If the commission has not been concluded, it will be showed in the unconcluded order. If the commission has been wholly concluded, it will be transferred to the concluded losing order list. After the losing, the commissioned position will be separated with the user’s account equity, if the position has not been wholly concluded, the loss of the position will be recorded as user’s losing loss and waited to be allocated, and the user will not continue to lose because of the position. If the position has been wholly concluded and there is surplus, the surplus will be accounted in the contract risk margin.
4.4 When the user’s holding quantity or commission quantity is too high and BitForex thinks there will be risks to the uses, BitForex has the right to request the users to adopt risk control measures such as withdrawal, position-closing etc. If necessary, BitForex has the right to adopt risk control measures such as restricting the total position quantity of several accounts, restricting total commission quantity, restricting the position-opening, withdrawal, forced liquidation etc.
5.1 The principle of impartiality and fairness shall be followed when users taking contract transaction.
5.2 For all unethical behaviors like malicious price manipulation and malicious transaction affecting, BitForex has the right to adopt the measures such as warning, restricting the transaction and closing the account. When necessary, BitForex has the right to suspend transaction, cancel transactions or rollback transactions to eliminate adverse effects.
5.3 When the user’s holding quantity or commission quantity is too high and BitForex believes that there may be serious risks to the system and other users, BitForex has the right to ask the user to adopt risk control measures such as withdrawing the order and closing the position. When BitForex thinks it is necessary, BitForex has the right to adopt risk control measures such as restricting the total position quantity and total commission quantity, restricting the opening, withdrawing orders, and forced liquidation.
5.4 BitForex cannot accept liability for damages if the system platform is unable to function properly due to the following conditions, and the user is unable to use the services or cannot be properly commissioned, the conditions include but not limited to:
- When the announcement system of BitForex platform is being maintained;
- When the telecommunication equipment fails and cannot transmit data;
- When BitForex platform system fails and business can not be operated due to force majeure factors such as typhoons, earthquakes, tsunamis, floods, power outages, wars, terrorist attacks, etc.;
- Service interruptions or delays caused by hacking, computer virus intrusion, technical adjustments or failures in the telecommunications sector, website upgrades, banking problems, temporary closures due to government regulations, etc., which affect the normal operation of the network;
- Loss caused by technical problems that cannot be predicted or resolved by existing technology in the industry;
- Loss to users or other third parties due to the third party's fault or delay.
5.5 As for the abnormal transactions, market interruptions, and other possible abnormal conditions caused by system failures, network problems, DDos hacker attacks and other unexpected factors, BitForex has the right to cancel the abnormal transactions according to the actual situation, and rollback all the transactions during a certain period of time.
5.6 All kinds of unfair transaction behaviors will be strictly prohibited by BitForex platform, including but not limited to the malicious commissions based on the possible systematic flaw and the malicious manipulation of price and transaction volume based on large commission, continuous commission, related account reverse transaction and other ways. For these behaviors, the BitForex platform has the right to cancel abnormal transaction results according to actual conditions and to rollback some or all of the transactions during a certain period of time.
5.7 The content of this clause includes the specifications of BitForex, other terms or rules attached to this clause, and other relevant terms and regulations of BitForex which may be continuously published. The above content will be an integral part of this Term and you should follow it once it is officially released. In the event of any conflict between the above content and the Terms, you should subject to the Terms. After registering or using of any services in the Terms, you are deemed to have read and accepted the content. BitForex has the right to unilaterally modify the Terms or the above content when necessary. If the content is changed and you continue to use the service, you will be deemed to have accepted the revised content. If you do not accept the revised content, you should stop using the related services.
5.8 The establishment, effecting, performance, interpretation and resolution of the Terms apply to the laws of Belize.
5.9 If there is any dispute between you and BitForex, you should first settle it through friendly negotiation; if the negotiation is unsuccessful, both parties agree to submit the dispute to the court that has jurisdiction in Belize.