SUPPLEMENTAL TERMS – UNIFIED TRADING ACCOUNT

 

 

1.   Introduction

1. These supplemental terms supplement the Terms of Service for the Platform (“Supplemental Terms”, “Agreement” or “terms”) provided by Bybit Fintech Limited (the “Company”, “we”, “us” or “our”).

 

2. If you apply for a Unified Trading Account (“UTA”) through our Site, you agree that you will be bound by these Supplemental Terms together with our Terms of Service, which shall govern your access or use of and transactions under the UTA.

 

3. To the extent of any inconsistency between these Supplemental Terms and our Terms of Service, these Supplemental Terms shall prevail.

2.   Risk Disclosures

1. When applying for a UTA, you understand and acknowledge that the functions of the existing accounts to which these terms apply will be unified. This unification is irreversible and functions that were previously segregated will become unified and subject to the same terms set out hereunder.

 

2. When applying for a UTA, you are also subjecting the assets originally dealt with in segregated functions to be subject to the terms of the UTA. This means that assets that were previously segregated and isolated for margin purposes may now be subject to margin and liquidation requirements under the UTA.

 

3. Your UTA comes with an automated lending facility which is triggered when you experience shortfalls in the amount of Collateral and settled positions. These lending facilities come with interest, and you will be liable to make good any shortfalls in both interests and principal in relation to the lending facility.

 

4. We are furnishing this section to provide you with some basic facts about trading assets on Margin, and to alert you to the risks involved with Margin Trading. Trading through a Margin Account is highly risky and may result in the loss of funds greater than those that you have deposited into your account. In addition, it is important that you fully understand the risks involved in trading on Margin.

 

5. When you purchase assets, you may pay for them in full or you may borrow all or a portion of the funds from us. In the event that you choose to borrow funds, you will be required to open a Margin Account with us. The assets purchased in full will serve as Collateral for the loan. If the value of the assets that make up the Collateral decreases, the value of the Collateral will also decrease. As a result, the Company reserves the right to take necessary actions, including selling the Collateral in any of your Accounts held with us or issuing a Margin Call, in order to maintain the required asset value of the Account.

 

6. You should be aware that we typically do not issue Margin Calls and we will not credit your Account or increase your Margin to meet any margin deficiencies as per this Agreement. Instead, we will liquidate positions in your account in order to satisfy Margin Requirements without prior notice to you and without giving you the opportunity to choose the positions to be liquidated, the timing or the order of the liquidation. You understand, acknowledge and agree that we have no obligation to contact you for a Margin Call, and we may liquidate assets in your Account without contacting you first. You therefore authorize us to sell your assets without contacting you.

 

7. You can lose more assets than you have deposited in your Account. A decline in the value of assets that are purchased on Margin may require you to provide additional Collateral to avoid the forced sale (a "liquidation") of those margin-purchased assets or other assets in your Account. It is important to understand that purchasing assets on Margin is highly risky and may result in the loss of funds greater than those that you have deposited into your Account.

 

8. If the value of your Collateral falls below the Margin Requirements, or if we revise these requirements to be higher at any time, we can sell the Equity in your Account to recover the Margin deficiency. You authorize us to sell the Equity in your Account without further notice to you. In the event that the liquidation is insufficient to cover such shortfall, you will be legally responsible for making up for such shortfalls.

 

9. We have no obligation to contact a User before a Margin Call, or liquidation is executed. Therefore, you should understand that you need to keep yourself informed about the current Margin Requirements and how they will affect you at any time a margin requirement changes against your favor. You should also ensure proper risk management of positions that are in line with your risk tolerance. 

 

10. You are not entitled to choose which assets are liquidated to meet a Margin Call. We have sole discretion and the right to decide which positions to liquidate in order to protect our interests.

 

11. Margin Requirements can be amended and raised at any time at our sole discretion without written notice to you. These changes often take effect immediately and will affect your existing Margins. If your use of Margin is not within an amended or raised Margin Requirements, you can expect to be liquidated immediately without notice.

 

12. You are charged Interest in connection with borrowing Margins in order to maintain a short position. Interest rates paid to, or rates and fees collected from you in connection with borrowing or lending assets are subject to frequent change without notice and will vary based on the nature of the Asset being sold short. You pay Interest on your Margin Lending Facility which we can amend at our sole discretion without prior notice to you. These Interest costs will reduce your return on investment.

 

13. You may borrow Margin to stake assets. When you stake assets, you may lose control over the assets (such as to the network you have staked it to) including the ability to repay Margin used to the staked assets. In such a circumstance you are still obligated to repay interests for as long as these assets are not repaid. You should carefully consider the risks of staking Margin assets.

 

14. Special Risks of Short Selling. There are additional risks associated with short selling assets that may expose you to significant losses. We may close out your position by buying back an asset if you do not maintain adequate Margin in your Account. This may expose you to substantial losses if the price of the asset is above the price at which you sold it short. Short selling carries unlimited market risk and could lead to extraordinary losses because you may have to purchase an asset at a higher price than which you sold it for in order to cover a short position. There is no limit to how high the price of an asset can go. When you sell an asset short, we must lend you the asset from our own inventory, from outsourced liquidity providers, or from liquidity within our marketplace provided by other Users. Borrowed assets are subject to recall without notice. Asset lenders retain the right to recall their assets at any time. We may buy-in assets on your behalf, without notice to you, to cover short positions in the event we cannot borrow or re-borrow assets after a recall notice. You are liable for any losses or costs incurred in the event of a buy-in, including any associated Transactions Fees or commissions.

3.   Interpretations and Definitions

1. Capitalized terms used in this Agreement that are not defined herein, have the meanings given to them in the Terms of Service.

 

4. Representations and Warranties

1. You represent and warrant that:

   1. the assets committed in your account as Collateral are not borrowed and are totally unencumbered by any mortgage, charge, lien, or other interest;

   2. you have read, understood, and accepted risk disclosure and the Margin Requirements set out above in relation to borrowing risks and accepted the obligations to the Company;

 

2. You agree and undertake to notify us when either of the representations and warranties cease to be true.

5. Margin Accounts, Margins, and Automatic Liquidation

1. Margins are subject, at all times, to Margin Requirements established by us, and you agree and undertake to maintain your Margins within Margin Requirements. We reserve the right to modify Margin Requirements and/or SAV guidelines applicable to you or any User at any time, in our sole discretion without prior notice to you. The Margin Requirements on our Site are only indicative and do not reflect the actual Margin Requirements which can change rapidly at our sole discretion and without prior notice depending on market conditions. 

 

2. For the purposes of determining your compliance with our Margin Requirements, we will, in our sole discretion, determine the SAV of assets in your Account. Our calculations may differ from the valuation and prices disseminated by other markets, and you agree to subject yourself unconditionally to our SAV.  

 

3. You may draw upon the available Margin from your UTA only for Margin Trading and to hold Margin Trading Products purchased through the Margin extended by this Agreement provided that you maintain sufficient Collateral in your Margin Account at all times as required under prevailing Margin Requirements. 

 

4. When you use Margin on your Account, you agree and undertake to subject all Supported Assets under your UTA in no order or preference, size, or volume to be committed as Collateral for the extension of Margin. 

 

5. When you subscribe to a UTA, you understand and agree to enable the use of all Supported Assets in the account for the settlement of all orders. You also agree that we shall have the discretion, not the obligation, to settle orders with other available Supported Assets in your UTA Cash Balances where you have insufficient balances of the specified Supported Asset in your order and settlement.

 

6. Our Margin Requirements or risk control may include leverage ratio limits or position size limits. If these limits are reached or exceeded, you may not be able to place new orders and you authorize us to liquidate existing Margin Trading Products, close open orders, and/or enter into risk-reducing transactions on your behalf without prior notice to you, in order to bring your Account back into compliance with the relevant Margin Requirements.

 

7. You undertake to monitor your Account, the applicable Margin Requirements and/or SAV guidelines at all times to ensure that you maintain sufficient Collateral at all times to meet our Margin Requirements.

 

8. You acknowledge and agree that:

   1. we shall be entitled, but have no obligation, to issue Margin Calls to you. We typically do not issue Margin Calls, and it is your sole responsibility to monitor your Account, the applicable Margin Requirements and/or SAV guidelines, and to adjust your positions from time to time, particularly in periods of high volatility, in order to avoid Liquidation;

   2. you are solely responsible for monitoring your Account, the applicable Margin Requirements and/or SAV guidelines, and for maintaining sufficient Collaterals at all times to satisfy the Margin Requirements, to ensure that the Margin Requirements are met, especially during volatile periods, regardless of whether or not a risk alert and/or Margin Call has been issued;

   3. any of your failure to satisfy a Margin Call or any failure to otherwise maintain sufficient Collaterals in your Account may lead to your Account being subject to certain restrictions or your positions being subject to Liquidation;

   4. any losses from Liquidation are your responsibility and shall be borne by you. This includes situations where there is an automatic Liquidation of your position due to sharp price fluctuations in Assets within a short period of time; and

   5. we shall have no liability to you or any third party in connection with any Liquidation arising from or in connection with: 

      1. any failure to issue a risk alert and/or Margin Call;

      2. any delay or glitch in the issuance of risk alert and/or Margin Call; and

      3. any delay in your receipt of any risk alert and/or Margin Call.

 

9. You further acknowledge and agree that:

   1. you shall be liable for all Transaction Fees relating to the Liquidation;

   2. you shall be liable for any losses resulting from the Liquidation; and

   3. we shall not be liable for any losses resulting from the Liquidation, should we exercise any or all of our rights under this Agreement. 

 

10. We may reject any order if your Account has insufficient Collateral to meet the Margin Requirement and can delay the processing of any order while determining the Margin status of your Account. 

 

11. If you have multiple Accounts or subaccounts, we shall have the sole discretion of treating such accounts as either whole or separate for the purposes of applying Margin Requirements. You therefore acknowledge and accept that this may cause the total Margin Requirements to be higher than otherwise indicated and could cause your positions to be liquidated in one (1) Account or subaccount notwithstanding excess assets in any of the respective Accounts.

 

12. You will not rely on us to close or liquidate positions in your Account in the event you do not comply with the Margin Requirements. In particular, you shall not rely on the auto-liquidation and systems to function as a stop-loss order. You shall not assume that we shall liquidate positions to prevent you from losing more than you have deposited. Likewise, we may in our sole discretion and our interests delay or decide not to liquidate positions in your Account with a Margin deficit and shall have no liability for any loss you sustain in connection with such delay of or forbearance from Liquidation. 

 

13. These terms and the Margin Requirements are designed to protect the integrity of the market and are not designed to protect you. You understand and agree nonetheless that by using our Margin you are subjecting yourself to this Agreement, the SAV guidelines and the Margin Requirements. Our failure to apply or enforce any of the terms herein or in the Margin Requirements does not give you any right to bring an action against us and nothing in this Agreement constitutes a warranty or undertaking that we will apply or enforce the Margin Requirements.

6. Security Interests

1. All Collateral in your Account to the extent sufficient is deemed pledged as Collateral relative to the Margin requested and granted in accordance with the prevailing Margin Requirements and/or SAV guidelines.

 

2. All Collaterals of any kind are hereby pledged to us by you, and you grant to us a perfected first-priority lien and security interest in our favor to secure the performance, obligations, and liabilities to us arising under this Agreement or any other agreement with us to the maximum extent permitted under applicable laws.

7. Liquidation and Set-Off

1. If, at any time, your Account does not meet the Margin Requirements, we may, without limiting our other rights, sell, close, or otherwise liquidate all or part of your positions, Margin Trading Products, assets, or Collaterals in any of your Accounts held with us or with an any agent or broker, with no order or preference, and without prior notice to you. 

 

2. A Liquidation will usually occur automatically but notwithstanding the foregoing, we have no obligation to take any action if your Account, Collateral, or Supported Assets do not meet the Margin Requirements. You understand and agree that we have the right in our sole discretion but not the obligation to Liquidate and/or set off all or any part of your positions, Margin Trading Products, assets, or Collaterals in any of your accounts, individual or joint, at any time, in any manner, in any order or preference without prior notice to you where:

   1. your Account is in a deficit;

   2. you have insufficient Collateral to meet Margin Requirements;

   3. we anticipate in our sole discretion that your holding of any position is likely or will result in a future violation of our Margin Requirements;

   4. you execute an order for which you do not have sufficient assets;

   5. we determine in our sole discretion that Liquidation is necessary or advisable to protect you;

   6. in the event of default, a breach by one or more terms on your part in this Agreement, our Terms of Service, or the Margin Requirements;

   7. this Agreement is terminated;

   8. legal or investigation proceedings are commenced by either party.

(Each a “Liquidation Trigger”)

 

3. You shall be liable and shall promptly pay us for any such deficiencies in your Account that arise from such Liquidation or that remain after such Liquidation. Where you are unable to pay for these deficiencies, you agree to subscribe and instruct us to provide you a Lending Facility for Supported Assets where your UTA is found to be in a deficit, for any reason, and accept that we are entitled to charge you Interest incurred for the Lending Facility we issued according to the prevailing rates as specified on our Site and as amended from time to time at our sole discretion regardless of whether prior notification has been given. This obligation shall survive the termination of this Agreement.

 

4. You agree that we have no obligation to, and in some cases, no ability to Liquidate any Margins, in any order or preference, so as to reduce your exposures to Interest arising from Lending Facilities. You agree and undertake to pay all Interests incurred from Lending Facilities.

 

5. We have no liability for any losses sustained by you in connection with such Liquidation (or omissions on our part to do so), even if you re-establish a liquidated position at a worse position. You shall indemnify and hold us harmless for all actions, omissions, costs, fees (including but not limited to attorney’s fees), or liabilities associated with such Liquidation undertaken by us.

 

6. We may allow you to request the order of Liquidation of assets in your Account in the event of a Margin deficiency, but such requests are not binding on us and we retain the sole discretion to determine the assets to be liquidated, including the order and manner of the Liquidation. We may liquidate your position through any method at our sole discretion and we or our affiliates may take the counterparty position for such Liquidations.

 

7. If we do not for any reason liquidate under margined positions and issue a Margin Call, during a Margin Call, you understand, acknowledge, and instruct us to make a loan to you so as to maintain your Margin.

 

8. You shall repay any Lending Facilities plus Interest on demand by us. To the maximum extent permitted under applicable laws, we may, in our sole discretion, apply the proceeds from the sale of any assets in your Account, first to the payment of any Interest then due, any outstanding fees, charges or other expenses then due to us, and then to the payment of any principal amount outstanding on the Lending Facilities.

 

9. You shall be solely responsible, and you assume and shall bear all risk of loss, for all conduct relating to Margin Trading or the use of Margin, including but not limited to the risks mentioned in sections 2, 5, and 7. We expressly disclaim and do not take any responsibility for any loss, liability, or damage incurred as a result of your access to and use of the Margin Trading services. 

8.  Suspension

1. In the event a Liquidation Trigger occurs, you agree that we shall hold the sole right and discretion to freeze all or any part of your Account or assets and/or to exercise positions on your Account without prior notice to you.