The User Policy of Hotbit’s Perpetual Contract Trading Function

1. General Information

1.1 “Perpetual Contract Trading” (The Service) is known as the derivatives of virtual assets launched by Hotbit. The design and management of the derivatives and the operation services of the platform on which the derivatives are based on are conducted and provided by Hotbit. In order to use the perpetual contract trading function of Hotbit, you are required to read and obey “The User Policy of Hotbit’s Perpetual Contract Trading Function”(The Policy). Please do read and thoroughly understand all contents of all terms of the policy carefully, and then choose whether you accept this policy or not.

1.2 In order to use Hotbit’s perpetual trading function and its relevant services, you are required to read and accept all terms of the policy first, as otherwise you will not be able to use any of the relevant services. We regard your act of accepting the policy and using all relevant services of the policy as the fact that you have read and agreed all terms and restrictions of the policy.

1.3 Hotbit is entitled to delete any information that is either illegal or against relevant rules and regulations from its web pages while reserving the right of not informing any of such acts to its users.

2. The Qualifications and Prerequisites Regarding The Use of The Policy

2.1 You have understood and confirmed that：

• You have agreed to obey “Hotbit’s Service Policy”, and that you are qualified and not prohibited from using the “services” defined by the policy.
• The policy itself is not in contradiction with any of the laws, policies and (or) regulations of your country and area.
• You are the legal owner of the virtual assets that you have deposited into the service, and that you guarantee that all abovementioned assets are obtained from legal origin.
• You are fully aware of the risks involved in using the services provided online, which include the risks regarding the high volatility of cryptocurency itself, and that you may lose all assets saved in your trading account under unfavorable market situations.

2.2 You are fully aware of the risks of using the services, which include but not limited to：

• The high volatility in the prices of virtual assets and their derivatives may leads to serious or complete loss within a short period of time.
• In case that the virtual assets that you deposited into the services as margins are insufficient, it may lead to the fact that your position(s) will be compulsorily reduced immediately, and that you may lose all your virtual assets that you deposited into the services.
• In case that abnormal technical issues occur, it may lead to the fact that your access to the services will be delayed or prohibited.
• In case that any abnormal market situation occur, it may lead to the loss of your virtual assets.
• In order to maintain a positive market environment, Hotbit is required to add, delete or change its policies from time to time, which may be either in favor of or unfavorable to your preferences.

2.3 You agree that：

• You will not use the services for any illegal purposes.
• You will not initiate or promote any forms of market manipulation.

2.4  In case that Hotbit is suspicious or entitled to believe that you are currently participating in any suspicious trading activities, or that you have already violated any of the terms or policies mentioned above, Hotbit is entitled to freeze any of your Hotbit accounts, which may reversely cancel any transactions that you have already settled. Hotbit clearly states here that Hotbit will not be responsible for any losses or gains caused by Hotbit’s early cancellation of order(s) or liquidation, or the fact that you can no longer access the trading function due to your misbehavior mentioned above. You also agree that you will compensate all Hotbit’s losses in case that any third party (parties) raise(s) any lawsuit(s) due to your misbehavior or Hotbit’s early cancellation of order(s) or liquidation mentioned above. During the frozen period of your account, Hotbit will conduct investigation(s) on the issue, and Hotbit may ask you to support the investigation(s). During the investigation period, you will not be able to deposit or withdraw any assets into or from any of your Hotbit accounts, and you will not be able to conduct any trading activities on Hotbit either. By the time Hotbit finishes the investigation(s), Hotbit is entitled to either close your account or resume all functions of your account without informing you the reasons for such decisions.

2.5 Hotbit reserves the right to close your account under the situations mentioned above by sending you relevant notice seven business days in advance. Hence, in this case, you would have seven business days to cancel your orders and positions. In case that your orders and positions still remain by the deadline, Hotbit will cancel all your orders and conduct liquidation on your accounts compulsorily and return the remaining cryptocurrency left in your account back to you afterwards.

2.6 Hotbit is responsible for maintaining a positive market order. Hence, Hotbit is entitled to terminate any or all trading activities on its platform in case of market disruptions or any external issues. Hotbit will not be responsible for any losses caused by any termination of Hotbit’s trading functions mentioned above that are claimed by any users.

2.7 In order to protect the rights of its investors, Hotbit is entitled to conduct early settlement on contract trading activities under special situations (for example, system error, network error or extreme market status etc.). Please refer to Hotbit’s announcements regarding the products, contract periods and prices of early settlement involved.

3. The Use of The Services

3.1 The services provide you with real-time market depths and other information. You may browse or download all relevant information for your own analysis.

3.2 You may issue trading authorization through web end, client end or other available channels of Hotbit platform. Once the authorized transaction is settled, you will not be able to cancel or modify the authorization.

3.3 By the time you issue the authorization of opening the position(s) and the order(s) is (are) settled, you will establish relevant position(s) of contract trading. By the time you issue the authorization of closing the position(s) and the order(s) is (are) settled, the system will deduct relevant volume of position(s) you hold from the positions you hold. The services will provide relevant information regarding the value(s) of your position(s), the virtual assets and their derivatives you hold in real time.

3.4 The perpetual contract will be settled by 08:00 (UTC) everyday. After settling all contracts, the balance of all accounts with gains or losses will be reset as 0.

3.5 By the time of settlement, the users who hold long and short positions are required to pay relevant fees among themselves (which are determined and calculated by the services, please refer to “The Brief Introduction of Hotbit’s Perpetual Contract Trading Function” for details).

3.6 By using the services, you are required to pay relevant service fees to Hotbit. Please refer to “The Brief Introduction of Hotbit’s Perpetual Contract Trading Function” for the detailed standards of service fees.

4. The Performance of The Services

4.1 In case that your computer equipment is provided by you or any third party (parties), and that the performance of the services rely on any functions of your computer equipment, Hotbit will not be responsible for the loading and operation of Hotbit’s web pages in Internet environment.

4.2 By using the services, you agree that you understand that the operation of Internet is out of Hotbit’s control, and that you agree that Hotbit is not responsible for any of the delayed loading and operations of the web pages that you have experienced.

4.3   By using the services, you agree and accept that the executions of all trading operations to be final and irreversible.

4.4 By using the services, you agree and accept that Hotbit reserves the right of conduct liquidation on any trading activities, regardless of their positions of gains or losses.

4.5 Hotbit does not guarantee：

1. a)   that the services will necessarily meet your demands；
2. b)   that the services will not be terminated, or that the services will always be on time, secure with no errors involved；
3. c)   that the information provided by the services are always true, reliable or correct
4. d)   that Hotbit will correct any errors or defects, or that Hotbit will be able to provide the services at an time or anwhere

4.6   that Hotbit will undertake all responsibilities, losses or risks for you due to the use of the services

5. Rules And Regulations of Risk Control

5.1 Hotbit’s perpetual contract trading function adopts various mechanisms to control its risks, which include but not limited to：

• Tiered Margin Mechanism
• “Recoup By Risk Reserve Account” Mechanism

Hotbit will continue to improve its risk control mechanisms according to various market status and situations.

5.2 Tiered margin Mechanism. The volume of positions available to you is limited based on the volume of virtual assets that you deposited into the services. Apart from that, in order to avoid your positions to be compulsorily reduced, the rate of your margin (which is defined and calculated by the services, please refer to “The Brief Introduction of Hotbit’s Perpetual Contract Trading Function” for details) must be higher than your rate of maintenance margin, which is the lowest rate of margin required for maintaining your current positions. The services adopt a tiered margin mechanism, which means that the greater volumes of positions you hold, the higher your rate of maintenance margin will be. Please refer to “The Brief Introduction of Hotbit’s Perpetual Contract Trading Function” for details.

5.3 ”Recoup By Risk Reserve Account” Mechanism. In case that any user triggers a forced liquidation process, and that the positions held by the user cannot be settled by the price of forced liquidation in full, in order to reduce the possibility of triggering the automatic position reduction process, the system will recoup certain volume of assets from the user’s risk reserve account in priority. Please refer to “The Brief Introduction of Hotbit’s Perpetual Contract Trading Function” for details.

5.4 In case that the volume of positions you hold or the volume of your authorization is too high, Hotbit will consider that your activity may form serious risks to the system and other users, and the user is required to understand and agree that Hotbit is entitled to ask you to take relevant risk control measures such as reduce your positions or self-liquidation under the situation mentioned above. Also, you understand and agree that under special situations, Hotbit reserves the right and power to decide whether Hotbit will conduct forced liquidation or cancellation to all or part of your positions or orders.

6. Limitation of Liability

6.1 You agree that you fully understand all regulations and policies. In case that you have any misunderstandings about any of the regulations and policies, Hotbit will not be responsible for any of your loss. More importantly, please be aware that, in order to open or maintain your positions, the volume of virtual assets that you deposit into the services as margins is required to meet relevant standards. In case that the volume of margins that you deposited into the services does not meet relevant requirements, a compulsory reduction of your positions will be triggered. When the compulsory reduction of your positions is triggered, you may lose all virtual assets that you deposited into the services as margins.

6.2 Your trading information will only be displayed as correct information after settlement. The information displayed between two consecutive settlements is for your reference only, which cannot be guaranteed as official result. If you conduct relevant operations based on the information mentioned above, it may lead to the loss to your assets. Hotbit will not be responsible for any loss caused by the consequence mentioned above.

6.3 In order to be compliant with any changes in any relevant laws and regulations or for the purpose of maintaining a positive market environment, Hotbit will decide to change its policies or regulations from time to time or implement urgent policies and regulations, which may lead to the fact that the services will be temporarily inaccessible through your accounts, your accounts will be rolled back, certain volume of your positions will be liquidated, or your access to other services will be interrupted. Hotbit will not be responsible for any of your loss due to the consequences mentioned above.

6.4 In case that the system of the platform cannot be operated normally due to the following situations, which leads to the fact that you cannot use all services or cannot issue authorizations normally, Hotbit will not be responsible for your losses. Such situations include but not limited to:

A．Hotbit’s scheduled maintenance according to Hotbit’s official announcements.

B．in case that data cannot be transmitted due to equipment failures

C．in case that outages or failures occur to the system of Hotbit’s platform due to various factors of force majeure events, such as typhoon, earthquake, tsunami, flood, blackout, war, terrorist attacks, which lead to the interruptions or terminations of all Hotbit’s services

D．in case of any interruptions or delay of services due to the issues that affect the normal operations of network, such as the temporary shutdown of Internet provider’s services ordered by the government, hacker attacks, the invasions or activation of computer virus, technical adjustment or failures of telecommunication department, website upgrade or bank-related issues.

E．any loss caused by technical issues that are currently unpredictable or unsolvable by the industry.

F．any loss of you or any other third party (parties) caused by the fault or delay of any third party (parties).

6.5 In case of any abnormal transactions, interruptions in market data and other possible abnormal situations caused by any accidental means that cannot be attributed to Hotbit’s responsibility such as system failure, network issues or DDos hacker attacks, Hotbit is entitled to cancel any transactions or roll back all transactions within a certain period of time in the past based on actual situations. Hotbit will not be responsible for any of your loss caused by the issues mentioned above.

6.6 You understand that any technical issues may occur accidentally. Hotbit will not be responsible for any loss caused by such technical issues, which include but not limited to:

• the connection failure, delay or interruption to the server or other failures and errors
• any termination, delay of the services, services do not respond or other failures and errors due to overload.
• any failures or errors caused by the fact that the server cannot obtain necessary and correct data from any third party (parties) through the Internet.

6.7 Hotbit strictly prohibits any activities of unfair transactions. In case that you are involved in the following activities, Hotbit reserves the right to apply a higher level of surveillance and control on your account.

• you are involved in price manipulation or other malicious market activities
• you caused loss(es) to other users or Hotbit through the bugs of the services or other unreasonable manners.
• you participated in any other activities that are considered as harmful to the market by Hotbit.

In order to eliminate any negative influence on market environment, Hotbit reserves the right to implement the following measures, which include but not limited to closing of your account, restrictions, suspensions and cancellations of your transactions and rollback of all relevant transactions. Hotbit will not be responsible for any of your loss caused by the measures mentioned above.

6.8 Hotbit is entitled to cancel any types of information posted on its website that is either illegal or against relevant rules and regulations without informing relevant users.

6.9 Hotbit will send all its notices to all its users via official announcements published on its web pages, internal messages, emails, mobile text messages or regular mails. Hotbit will not undertake any legal responsibilities for any information or event sent to any users via any unofficial channels, such as forged award winning information or forged information of discounts etc.

7. Compensation Liability

7.1 You are required to take any possible actions to guarantee that Hotbit is free from any loss due to your use of the services or other of your activities in relation to your Hotbit account(s), as otherwise you are required to undertake relevant compensation liability.

7.2 You hereby confirm and agree that, you are required to counterplead or compensate on any claim or demand (including reasonable legal expenses) caused by your violation of this agreement, your improper use of Hotbit’s services, your violation of any laws or third party (parties)’s rights, the actions or inaction of any third party (parties) who use(s) your Hotbit account(s) or login to Hotbit’s website, client end or system (including any network(s) and server(s) that provide(s) any Hotbit’s services, no matter such websites, networks, client ends or systems are operated by Hotbit, or provide(s) service(s) for Hotbit, or provide(s) you with relevant services to get access to Hotbit’s services), and make every possible effort to keep Hotbit from suffering from any loss mentioned above.

8. Other

8.1 The contents of the agreement also include all Hotbit’s rules and regulations, the agreement(s) or rule(s) of other attachments of the agreement and the contents such as other relevant agreement(s) and rule(s) of the services that Hotbit may continue to publish in the future. Once officially published, the above contents will be considered as the inseparable components of the agreement that you are required to obey as well. In case that any of the contents mentioned above are in contradiction with the agreement, the agreement shall prevail.

8.2 If necessary, Hotbit is entitled to change the content(s) of the agreement unilaterally at any time without prior notice to you. In case that Hotbit unilaterally changes the content(s) of the agreement, Hotbit will publish all relevant updated content(s) on its website immediately. Please do check the latest information regarding the changes regularly. After such changes, if you continue to use the services, you will be considered as having accepted all such changes of the agreement. In case that you disagree with the changes of the agreement, you are required to terminate the use of the services.

8.3 You are required to read through the agreement and any contents such as the other relevant agreements and rules of this agreement that constitute part of the contents of the agreement mentioned in 7.1 and 7.2 of the agreement. Should you have any queries or questions regarding any contents mentioned above, please do not hesitate to contact Hotbit, and Hotbit will provide reasonable and necessarily explanations on your queries and questions. Unless stated otherwise by Hotbit, you are required to contact Hotbit via emails and conduct your file transmission with Hotbit via emails (formal communications). Apart from that, you may also contact Hotbit unofficially via telephone (unofficial communications). Unless otherwise agreed, any formal communications are required to be conducted in English. In case that any English communications are different from any non-English communications, the English communications shall prevail. If the contents of any formal or informal communications are different from the contents of the agreement, the contents of the agreement shall prevail. If any content(s) of the English version of the agreement is (are) in contradiction with the translated version(s) of the agreement in other language(s), the contents of the English version of the agreement shall prevail.

8.4 The law of Hong Kong, China applies to any issues in relation to this agreement, which include but not limited to the establishment, effectiveness, execution, change, explanation and the solution to any dispute(s).

8.5 In case that any dispute(s) or argument(s) occur(s) between you and Hotbit, both parties shall first negotiate with each other friendly. In case that the negotiation fails, both parties shall agree to raise the dispute(s) or argument(s) to relevant court of Hong Kong, China with relevant jurisdiction.

8.6 In case that any term(s) of the agreement is (are) considered as illegal, ineffective or inexecutable due to any reason(s), the relevant term(s) shall be regarded as separable, which will not affect the legal effects of any other terms of the agreement.

8.7 The terms of the agreement regulate the comprehensive understanding regarding the theme of the services by both parties, which substitutes all relevant and prior understanding and communications. Any other files that are not in consistency with the contents regulated by the agreement will not have any legal constraints on Hotbit. You hereby state and guarantee that all information in relation to the terms of the services that you disclosed to Hotbit to be true, correct and complete.

8.8 The titles of all terms of the agreement are designed for the convenience of reading only with no actual meanings included within themselves, which cannot be considered as the evidence of the explanations to the meanings of the agreement.

8.9 The agreement only serves as reference for all participants of the mock trading sessions of Hotbit’s perpetual contract trading function. The agreement has no legal constraints on all participants of the mock trading sessions of Hotbit’s perpetual contract trading function.