II What is Entrusted Management of The Contract?

1、What is Entrusted Management？

All entrusted contracts can be viewed on the web page of “Entrusted Contracts”, and all entrusted contracts can be canceled by clicking “cancel” button before the contracts are successfully matched.

Please note that, only the volumes of margins will only be calculated according to the volumes of margins required by the unsettled part of the contracts, and that the volumes of transaction fees will only be calculated according to the volumes of transaction fees required by the settled part of the contracts.

2、How to Entrust Contract Trading?

1. a) First, the users shall choose the token type of the contract.
2. b) Then the users are required to enter the price of contracts (unit: US Dollar / each) and the number of contracts. The system will automatically calculate the number of contracts available and the rate of margin based on the price and number entered by the user.
3. c) Finally, the users are required to choose their preferred type of trading (Open Long, Open Short, Close Short, Close Long) and submit their preferred type of trading.

Under the model of cross margin, the users can only issue their entrust authorization successfully when the rates of their margins of short or long contracts are no less than 1/their currently selected ratio of leverage; under the mode of isolated margin, the users can only issue their entrust authorization successfully when the volumes of their available margins are greater than the volumes of margins required by any single contract that they intend to hold.

Open Long refers to the activity of buying a certain amount of certain type of contracts when the user expect that the index will rise. By conducting the operation of “Open Long”, after the contracts are successfully matched, the user’s long positions will be increased.

Close Long refers to the sell contracts that the user holds for the purpose of offsetting the buy contracts that the user currently holds when the user no longer expects the index will rise in the future. By conducting “Close Long” operation, after the contracts are successfully matched, the user’s long positions will be decreased.

Open Short refers to the activity of selling a certain amount of certain type of contracts when the user expects that the index will decline. By conducting the operation of “Open Short”, after the contracts are matched successfully, the user’s short positions will be increased.

Close Short refers to the buy contracts that the user holds for the purpose of offsetting the sell contracts that the user currently holds when the user no longer expects the index will fall in the future. By conducting “Close Short” operation, after the contracts are successfully matched, the user’s short positions will be decreased.