XREX Taiwan Crypto Loans and Margin Trading Service Agreement

Last Updated: July 01, 2025｜Effective Date: July 31, 2025

The terms and conditions herein (the "Terms") shall serve as the usage agreement and fundamental guidelines for Taiwan users of the XREX Taiwan platform (the "Platform", "we", or "XREX") in connection with the use of Earn, Crypto Loan, and Margin Trading services (collectively referred to as the "Service").

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 meet the membership application requirements set forth in the XREX Taiwan General Terms and Conditions and hold a valid account approved through XREX’s KYC verification process in order to access or use the Service.

Article 2. Services

The Service allows you to borrow crypto assets (the "Borrowed Assets") and to participate in Margin Trading.

1. Crypto Loans

You may submit a loan application to the Platform and withdraw the borrowed assets. The Platform assesses your loan eligibility and risk level based on the Loan-to-Value (LTV ratio), which is the ratio of your debt to the value of your collateral. When your LTV ratio reaches a certain threshold (as specified on the Service page), it may trigger a forced collateral liquidation and forced position closure mechanisms.

1. Margin Trading

Margin Trading at XREX is conducted using an isolated margin model, meaning each Margin Trading transaction is independent of another.

When initiating a Margin Trading, the borrowed assets will be immediately used to establish the trading position. Therefore, you cannot withdraw the borrowed assets from the Platform, and the Platform will use them to calculate the applicable fees and borrowing costs.

The Margin Level is the ratio of the value of your collateral assets to your liability on the Platform. When the Margin Level falls below a certain threshold (as specified on the Service page), it may trigger collateral liquidation and forced position closure mechanisms.

1. 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 the selected virtual assets to XREX or to independently transmit such assets—through the technical services provided by XREX— to the decentralized staking project or protocol of your choice. Before participating in any decentralized project, 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 falls below the thresholds set by the Platform, XREX may initiate a liquidation of the Collateral to repay users' debt. Unless otherwise announced by the Platform, repayment will be made in the following order: fees, margin costs, loan costs, and the principal.

Before using the Service, you should understand that due to the high volatility of the virtual asset market, forced liquidation may occur instantly and is executed through an automated mechanism. The Platform is under no obligation to notify you in advance. You are responsible for continuously monitoring your trading positions and market price fluctuations, and for supplementing your Collateral in a timely manner to avoid the risk of automatic liquidation. XREX shall not be liable for any losses resulting from market volatility.

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 virtual assets, along with any accumulated loan and borrowing cost, before the due date. Failure to do so may result in additional interest charges and penalties.

If your debt remains unpaid after the execution of a forced liquidation, you agree that XREX may restrict the withdrawal or transfer of other assets in your account, and may prioritize the use of such assets to settle any outstanding fees, borrowing costs, loan costs, and principal owed to the Platform.

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 in the staking project.

Please be aware that the Service may be subject to adjustments, suspensions, or discontinue from time to time in accordance with applicable regulations in Taiwan or the Platform’s internal policies.

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 the Collateral, you understand and agree that the Platform has the right to use the Collateral during the loan period for liquidity management, financing, or other lawful purposes, including but not limited to selling or lending it to third parties, without further notice.

Upon full repayment of the debt, the Platform will calculate the equivalent value of the Collateral and shall complete the return of such equivalent value within one (1) business day. The return may be made in the same type and quantity of assets, or in an equivalent amount of fiat currency or stablecoins, based on the Platform’s publicly posted prices at the time. You agree that the Platform reserves the sole right to determine the method and type of assets to be returned.

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 and Conditions and the applicable regulations.