IT IS IMPORTANT THAT YOU READ AND UNDERSTAND THIS INFORMATION PRIOR TO OPENING A LEVERAGED ACCOUNT.
Bittrex Global GmbH, Vaduz, Principality of Liechtenstein, Reg.-No.: FL-0002.613.705-0, (“Bittrex Global”), as applicable, (“we”, “us” or “our”) is furnishing this document to you to provide some basic facts about purchasing Tokens on leverage pursuant to the Leveraged Trading system on the Bittrex Trading Platform and to alert you to the risks involved with trading Tokens in a leveraged account. Before trading Tokens in a leveraged account, you should carefully review this Leveraged Trading Disclosure Statement and our Terms of Service Addendum concerning the Leveraged Trading here. Please contact us through https://bittrexglobal.zendesk.com/ regarding any questions or concerns you may have with your leveraged accounts.
When you purchase Tokens, you have the option of paying for them in full or borrowing part of the purchase price from us. If you choose to borrow Tokens from us, you will open a leveraged account. You may use Tokens previously purchased by you and held in accounts with us as collateral for the loan in Tokens to you. If the Tokens in your account decline in value, so does the value of the collateral supporting your loan. As a result, we can take action, such as issue a so-called margin call where you have to provide additional collateral and/or sell Tokens in any of your accounts held with us, in order to maintain the required coverage-ratio in the account.
It is important that you fully understand the risks involved in trading Tokens on leverage. These risks include, but are not limited to, the following:
- You can lose more Tokens than you deposit in the leveraged account. The Leveraged Trading mechanism increases your buying power, allowing you to purchase a greater amount of Tokens with your existing tokens. Therefore, your exposure to market volatility increases—a declining market could result in even greater losses. A decline in the value of Tokens that are purchased on leverage may require you to provide additional assets to us to avoid the forced sale of those Tokens or other Tokens in your account(s).
- We can force the sale of Tokens in your account(s). If the value of the collateral in your account falls below the maintenance coverage requirements, we can sell the Tokens in any of your account(s) held with us to cover the deficiency in the coverage-ratio. You also will be responsible for any shortfall in the account after such a sale.
- We can sell your Tokens without contacting you to meet a margin call. Customers may mistakenly believe that we must contact them for a margin call to be valid, and that we cannot liquidate assets in their accounts to meet the margin call unless we have contacted them first. While we will attempt to notify you of margin calls, we are not required to do so. However, even if we have contacted you and provided a specific date by which you can meet a margin call, we can still take necessary steps to protect our financial interests, including by immediately selling Tokens in any of your accounts held by us or any of our affiliates at any time without contacting you, if we deem it necessary, to mitigate the risk associated with adverse market fluctuations or otherwise.
- You are not entitled to choose which Tokens in your account(s) are liquidated or sold to meet a margin call. Because the Tokens are collateral for the margin loan, we have the right to decide in our discretion which collateral to sell in order to protect our interests.
- We can increase our maintenance coverage requirements and will provide notice of such in the product. These changes in maintenance coverage requirements often take effect quickly and may result in the issuance of a maintenance margin call. Your failure to satisfy the margin call may cause us to liquidate or sell Tokens in your account(s). We are not responsible to delays in the release of assets intended to satisfy the margin call, including but not limited to internal holds on assets exceeding verification limits, delays in the transfer of assets from external accounts maintained by third party institutions, and failure of proper routing of assets through networks. The assets won't count towards their maintenance requirements until the assets are released.
You are not entitled to an extension of time on a margin call. While an extension of time to meet coverage requirements may be available to you under certain conditions, a customer does not have a right to the extension.
Although this document uses the term “margin” in various places, this is to avoid consumer confusion, as these are generally accepted terms in the industry. The Leveraged Trading product is not regulated under EU/EEA law. Bittrex Global is not supervised by any regulator. No crediting or deposit taking business is conducted by Bittrex Global. No CFDs or other financial instruments are involved. Bittrex Global is simply allowing customers to use Leverage Trading on their token positions, consistent with applicable law.