XREX Taiwan Crypto Loans and Margin Trading Service Agreement
Last Updated: October 20, 2023
The terms and conditions herein (the "Terms") govern your use of Earn, Crypto Loan, and Margin Trading services (collectively referred to as the "Service") offered by our platform (the "Platform").
Crypto Loan and Margin Trading services feature new transaction natures of collateral assets and loans. Market price fluctuations may cause significant losses, making such Service suitable for users with trading experience, such as those adopting aggressive or diverse strategies.
When participating in Margin Trading, you should exercise high caution and only engage in such transactions when you clearly understand the operational mechanism of Margin Trading and can withstand the related risks (including but not limited to the forced liquidation of collateral assets and market price fluctuation risks, etc.). You should carefully consider whether your risk preference, financial capacity, and economic status are suitable for such transactions.
Before using the Service, you agree to be bound by these Terms:
Article 1. Eligibility
You must be an XREX account member under XREX Taiwan General Terms and Conditions and capable of entering into legally binding contracts to access or use our Service.
Article 2. Services
The Service allows you to borrow crypto assets (the "Borrowed Assets") and to participate in Margin Trading.
Crypto Loans
You may borrow assets from the Platform. The Borrowed Assets are not sold and you may withdraw them immediately. The Loan-to-Value (LTV) ratio, which is the ratio of your liability to the value of the assets, is used to assess your eligibility for a loan and to determine the risk level of the loan. When your LTV ratio reaches a certain threshold, it may trigger a forced liquidation of your collateral.
Margin Trading
Margin Trading at XREX is conducted by the isolated margin. Each Margin Trading transaction is independent of another. When initiating a Margin Trading, you are provided with an amount by XREX, allowing you to amplify your trading position.
The Margin Level, a ratio of the value of your assets to your liability, is used to manage the risks associated with Margin Trading. When your Margin Level falls below a certain threshold, it may trigger a forced liquidation of your collateral.
Earn
XREX Earn refers to various staking projects on this Platform, including both centralized and decentralized options, where users can earn rewards. "Rewards" are the benefits provided by these staking projects in the form of virtual assets, based on the project's design.
Once you confirm participation in staking projects, you agree to lend virtual assets to XREX or authorize XREX to send them to the decentralized staking project or protocol you select. Before participating in decentralized projects, you should independently assess and accept the associated risks.
Article 3. Collateral
Both Crypto Loans and Margin Trading require you to deposit collateral assets (the "Collateral") on the Platform.
Article 4. Forced Liquidation
Suppose the LTV ratio for Crypto Loans or the Margin Level for Margin Trading drops below the specified thresholds. In that case, XREX may initiate a forced liquidation of the Collateral to repay users' debt in the following sequence: fees, margin costs, loan costs, and the principal.
Article 5. Margin Cost and Loan Cost
The margin cost of Margin Trading and the loan cost of the Crypto Loans are calculated and may change on an hourly basis, depending on market conditions and other factors at our sole discretion. We will display the current margin cost and loan cost on the app, website, or both.
Article 6. Repayment
You must repay the Borrowed Assets, any accumulated margin cost, loan cost, and fees before you close your Crypto Loans or Margin Trading positions. Failure to do so could result in additional fees and penalties. If your debt remains unpaid after forced liquidation during drastic market fluctuations, the Platform has the right to exercise a lien, restricting you from withdrawing other assets until all due fees, margin costs, loan costs, and principal have been repaid.
Article 7. Risk Disclosure
Given trading activities in crypto assets are highly risky. You acknowledge and agree that you shall access and use the Service at your own risk, including but not limited to:
When the market goes against your Margin Trading position, we may inform you of upcoming liquidation so that you can maintain your Margin Level. Please note that you may lose up to all your Collateral assets when the market fluctuates and may be liable for any deficiency when your loss is more than your Collateral assets. You acknowledge that XREX Earn may also involve the aforementioned risks.
In addition to fluctuations in the value of the Borrowed Assets and Margin Trading positions, the value of your Collateral may also fluctuate with the market, potentially leading to insufficient Collateral and the need to supplement the Collateral assets. Such fluctuations may result in losses exceeding your original expectations.
You understand and agree that even if you initiate a deposit to increase your Collateral asset before the deadline, your position may still be liquidated if such deposit is not completed in time. You should account for extra time, considering that our compliance with government regulations and security policies may lead to unexpected pauses or suspensions of your deposits or withdrawals.
XREX Earn carries inherent risks, such as the loss of all Virtual Assets you have invested. Therefore, it is strongly recommended that you conduct thorough self-assessment and research before participating the staking project.
Please be aware that our Services may be subject to adjustments, suspensions, or removal in accordance with applicable regulations in Taiwan.
Article 8. Disclaimer of Warranties and Limitation of Liability
This Platform, the Service, and all information, content, materials, and other services provided to you or obtained through this Platform are provided on an "as is" and "as available" basis. XREX does not make any explicit or implied warranties regarding merchantability, suitability for a specific purpose, ownership, and non-infringement of the Service.
This Platform does not guarantee that the Service will always be error-free or uninterrupted, nor does it guarantee the accuracy, reliability, or quality of any product, Service, information, or other materials you obtain while using the Service.
To the extent permitted by law, this Platform does not bear any responsibility for any direct, indirect, incidental, special, consequential, or punitive damages (including but not limited to loss of profits, interruption of business, loss of information, or other economic losses) resulting from the use or inability to use the Service.
Article 9. Return and Use of Collateral
Given the fungible nature of your Collateral, you acknowledge and agree that the Platform may utilize the Collateral in any way it sees fit during the loan term, including but not limited to selling or lending it to a third party, without further notice. The Platform will calculate the equivalent value of the Collateral at the time of repayment completion. The Platform shall then have one (1) day to complete the return of the equivalent value of the Collateral, either in the same assets or its market value in fiat or stablecoins, to you. The determination of the method of return and the type of assets to be returned is at the sole discretion of the Platform.
Article 10. Modifications
As our business evolves, XREX may modify the Terms at any time with proper notice. Every modification will be updated on the website. If you do not agree with such changes, please contact our Customer Service Team for further assistance.
Article 11. Matters Not Provided Herein
Matters not addressed herein shall be subject to XREX Taiwan General Terms of Use and the applicable regulations.
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