XREX Taiwan Supplementary Terms and Conditions for Margin Trading
Last Updated: 2025.07.25
These Supplementary Terms and Conditions for Margin Trading (the “Terms”) constitute a supplementary agreement to the “XREX Taiwan General Terms and Conditions, the General T&C) ” between you and XREX Taiwan (hereinafter referred to as the “Platform,” “we,” “our company,” or “XREX”).Margin trading involves high leverage and carries significant financial risks, which may result in the loss of your entire principal and, under certain circumstances, may even lead to liabilities exceeding your initial investment.
Before applying to enable or use the margin trading services provided by the Platform (the “Service”), you must have thoroughly read, fully understood, and agreed to all the contents of the Terms.The Terms constitute a supplementary agreement to the General T&C and are disclosed therein. Therefore, by checking the box “I have read and agree to the General T&C” or by executing any margin trading transaction, you acknowledge that you are aware of and capable of bearing the associated risks and agree to be legally bound by the Terms.
Article 1. Definitions
Unless otherwise defined herein, all capitalized terms used in the Terms shall have the same meanings as defined in the General T&C. The following terms are defined as follows:
Margin Account: An account designated for margin trading, in which the assets are managed separately from other accounts on the Platform (e.g., spot account).
Credit Line: The maximum borrowing limit approved by the Platform based on the value of Collateral deposited by the member, available for borrowing and opening positions.
Position: A long or short position established by the member through the Service, representing the holding of a specific quantity of virtual assets.
Isolated Margin: (a) Each margin trading position has its own independently calculated Collateral and margin level; and (b) Collateral allocated to a specific position exists independently and is not automatically shared with or applied to support other positions.
Collateral: Assets transferred and locked from the Available Balance to secure a specific position.
Available Balance: Assets in your Margin Account that have not been allocated as Collateral for any position and are available to open new positions or absorb losses.
Margin Level: A key floating indicator used to measure the health of an individual position.
Calculation formula: Margin Level = Total Value of Position Assets ÷ Total Value of Position Liabilities *All values are calculated based on the Platform’s designated quote currency (e.g., USDT).
Examples:
Long BTC/USDT:
Liabilities: USDT borrowed to purchase BTC.
Assets: BTC held in the position, whose market value fluctuates with the price.
Risk: If the price of BTC drops, the asset value decreases, leading to a lower margin level.
Short BTC/USDT:
Liabilities: BTC borrowed and sold; liability value fluctuates with the BTC price.
Assets: Your original Collateral, plus USDT received from selling the borrowed BTC.
Risk: If the price of BTC rises, the liability value increases, reducing the margin level.
Margin Call Ratio: The margin level threshold below which the system will attempt to issue a margin call warning.
Liquidation Ratio: The margin level threshold at or below which the system will execute forced liquidation of the position.
Deficit Loss: A shortfall that arises when, after forced liquidation of an individual position, the full value of the Collateral remains insufficient to cover the principal, interest, and related fees of the loan associated with that position.
Article 2: Material Risk Disclosure
Leverage Risk Leverage proportionally amplifies both your potential gains and losses. A minor adverse market movement may result in substantial losses under the effect of leverage, far exceeding those in non-leveraged trading.
Forced Liquidation Risk Drastic market price fluctuations may cause the margin level of your position to fall below the Liquidation Ratio within a short period. The liquidation process is executed automatically. The aforementioned margin call notification is provided solely as a reminder service by the Platform and does not constitute any guarantee or obligation of the Platform. Due to the extremely rapid price volatility in the virtual asset market, or factors beyond the full control of the Platform—such as network delays, issues with third-party communication service providers, or problems with the Client’s own equipment or settings—margin call notifications may be delayed, fail to deliver, or fail to be read by the Client in time. As a result, you may be liquidated at an involuntary price and timing, and may lose all collateral assets.
Deficit and Deduction Risk If a forced liquidation of a single position results in a Deficit Loss, the Platform shall have the right, without further consent from you, to directly deduct corresponding assets from the Available Balance in your margin trading account to cover the shortfall.
Article 3: Trade Execution, Repayment, and Fees
Opening a Position: You may transfer assets from your Available Balance to serve as collateral for a specific position. You may then select the trading pair, leverage multiplier, and order size to open the position. Upon completion, the designated collateral assets will be locked.
Borrowing Cost: As the margin trading service involves borrowing virtual assets from the Platform, the applicable borrowing cost shall be calculated on an hourly basis and charged upon position closure (including partial closure). For applicable rates, please refer to the “Fee Policy” section on the Platform’s official website.
Repayment: You are required to proactively repay the borrowed virtual assets and the accrued borrowing cost before the due date. Failure to make timely repayment may result in additional interest charges and penalties.
Article 4: Risk Management and Forced Liquidation
Member Responsibility: The member shall be solely responsible for continuously monitoring all open positions, market price fluctuations, and the Margin Level of each position in their account. The member is also obligated to promptly add collateral when necessary in order to reduce the risk of automatic liquidation.
Margin Call Notification: When the Margin Level of any position falls below the Margin Call Ratio, the Platform will attempt to send a notification via app push alert, email, or other available channels. Such notifications are for reminder purposes only and shall not constitute any guarantee or obligation on the part of the Platform.
Forced Liquidation: A. If the Margin Level of any margin trade falls below or equals the Liquidation Ratio set by the Platform, an automatic forced liquidation will be triggered. The system will immediately sell the assets held in that position to repay the borrowed assets. B. During liquidation, in addition to liquidating the collateral associated with the position, the Platform reserves the right to restrict withdrawals of other account assets in order to preserve its claims. C. Liquidation proceeds will be applied in the following order: (i) applicable transaction fees; (ii) accrued borrowing cost; (iii) borrowed principal. D. You acknowledge and accept that any loss incurred during the liquidation process—including, but not limited to, price slippage, insufficient liquidity, or extreme price volatility—shall be solely borne by you. The Platform shall not be liable for any such loss.
Deficit Loss Handling: In the event that a Deficit Loss remains after automatic forced liquidation is executed, the Member agrees that the Platform may directly deduct the equivalent amount from the Available Balance in their margin account without further notice.
Platform Rights: The Platform may, in accordance with its risk management policies, adjust the Margin Level thresholds, liquidation conditions, or repayment sequence at any time, and shall publish such updates on the relevant service page.
Article 5: Member Representations and Undertakings
You confirm that you are not a person prohibited or restricted by the laws of any jurisdiction from engaging in virtual asset margin trading.
You confirm that the source of your funds is lawful and that such funds are not used for any illegal purpose.
You acknowledge that during periods of high market volatility, the Margin Level may shift from the warning threshold to the liquidation threshold within an extremely short period. Margin call notifications issued by the Platform do not guarantee that you will have sufficient time to add collateral. The liquidation process may occur shortly after or even concurrently with the issuance of such notifications.
You undertake to comply with the Member Responsibilities set out in this Supplementary Agreement, including proactively monitoring your account's loan-to-value (LTV) ratio and market fluctuations. You shall assess and manage risks independently and maintain readiness to adjust your collateral at any time to avoid forced liquidation. You shall not assert any claim for damages or other rights against the Platform solely on the basis of not receiving, or not timely receiving, a margin call notification. The Platform shall not be liable for any losses arising from market volatility or the liquidation mechanism.
You declare that you have thoroughly read this Supplementary Agreement, including but not limited to the material risk disclosures in Article 2, and confirm that you possess sufficient investment experience, knowledge, and financial capacity to bear the full extent of any potential loss.
Article 6: Miscellaneous
This Supplementary Agreement forms an integral part of the Terms of Service. In the event of any inconsistency between this Supplementary Agreement and the User Terms, matters relating to margin trading shall be governed by this Supplementary Agreement.
The Platform reserves the right to amend the Terms at any time. The amended terms shall be published on the Platform's website and shall take effect on the effective date specified in the announcement. Your continued use of the service shall constitute your acceptance of the amended terms.
The governing law and jurisdiction applicable to the Terms shall be the same as those set forth in the General T&C.
[End of the Terms]
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