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Perpetual Futures Trading Agreement

Updated

1. Definitions

Unless otherwise specified, the following terms shall have the meanings set forth below:
1.1 Perpetual Contract A cryptocurrency derivative contract without an expiration date whose price is anchored to the spot market through the funding rate mechanism.
1.2 Underlying Asset The digital asset used as the reference price for the contract (e.g., BTC, ETH).
1.3 Margin Collateral provided by the user to open and maintain contract positions.
1.4 Maintenance Margin The minimum margin required to maintain an open position.
1.5 Liquidation A risk management process where positions are automatically closed when account equity falls below maintenance margin requirements.
1.6 Auto-Deleveraging (ADL) A mechanism where profitable positions may be reduced automatically when the insurance fund is insufficient to cover losses during extreme market conditions.
1.7 Funding Rate A periodic payment mechanism designed to keep the perpetual contract price aligned with the spot market price.
 

2. Services

The Platform provides perpetual futures trading services, including but not limited to:
  • Opening and closing contract positions
  • Long and short trading
  • Leveraged trading
  • Risk management mechanisms
  • API trading access
Users may access the services through:
  • Web trading interface
  • Mobile applications
  • API connections
Once an order is executed, it cannot be revoked.
 

3. User Eligibility

To use this service, users must:
  • Be at least 18 years old
  • Have full legal capacity
  • Comply with applicable laws and regulations
  • Understand the risks associated with digital asset trading
Users represent and warrant that:
  • Their funds are obtained legally
  • They will not engage in fraud, market manipulation, or money laundering
  • They will not use the platform for illegal activities
The Platform reserves the right to restrict or terminate accounts that violate these requirements.
 

4. Margin and Leverage

Users must deposit eligible digital assets as margin to participate in contract trading.
The Platform supports multiple leverage levels, which may be adjusted based on market risk conditions.
If the user's account equity falls below the maintenance margin requirement, liquidation may occur.
During periods of high volatility, the Platform may:
  • Adjust margin requirements
  • Limit leverage levels
  • Restrict position sizes
 

5. Funding Rate Mechanism

Perpetual contracts use a funding rate mechanism to keep contract prices aligned with the spot market.
At each funding interval:
  • If the funding rate is positive, long positions pay short positions
  • If the funding rate is negative, short positions pay long positions
The Platform only facilitates funding rate calculation and settlement.
 

6. Risk Control

The Platform implements several risk management mechanisms:
Liquidation Mechanism
Positions may be forcibly closed if margin requirements are not met.
Auto-Deleveraging (ADL)
In extreme market conditions, profitable traders may experience position reductions through ADL.
Position Limits
The Platform may set limits on:
  • Maximum account positions
  • Maximum positions per trading pair
Trading Restrictions
During abnormal market conditions, the Platform may:
  • Cancel orders
  • Suspend trading
  • Modify trading rules
 

7. Fees

Users may incur the following fees when trading perpetual contracts:
  • Trading fees (Maker / Taker)
  • Funding rate payments
  • Liquidation fees
All applicable fees will be disclosed on the Platform.
 

8. Risk Disclosure

Digital asset derivatives trading carries substantial risk.
Users should fully understand the following risks:
  • Leverage risk
  • Market volatility risk
  • Liquidation risk
  • Technical system risks
Users are solely responsible for their trading decisions and any resulting losses.
 

9. Limitation of Liability

To the maximum extent permitted by law, the Platform shall not be liable for losses arising from:
  • User trading decisions
  • Market volatility
  • Network or system failures
  • Force majeure events
The Platform does not guarantee profits from trading.
 

10. Service Modification and Termination

The Platform may suspend or terminate services due to:
  • System maintenance
  • Market abnormalities
  • Legal or regulatory requirements
The Platform may also:
  • Modify trading rules
  • Adjust contract parameters
  • Delist trading pairs
 

11. Governing Law and Dispute Resolution

This Agreement shall be governed by the laws of the jurisdiction where the Platform is registered.
Any dispute arising from this Agreement shall first be resolved through negotiation. If unresolved, the dispute shall be submitted to arbitration in the Platform’s jurisdiction.
 

12. Acceptance

Users are deemed to have accepted this Agreement by:
  • Registering an account
  • Enabling contract trading
  • Executing contract trades
This Agreement becomes effective upon acceptance.

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