Terms of Service Addendum for Bittrex Global Leveraged Trading Beta Program

Terms of Service Addendum  

for  

Bittrex Global Leveraged Trading Beta Program 

 

This Terms of Service Addendum (this “Addendum”) applies to your access to, or use of, the Bittrex Global Leveraged Trading Beta Program. By clicking on an “I Agree” (or similar) button, accessing or using the Bittrex Global Leveraged Trading system (or any part of it), or by otherwise indicating that you accept the terms of this Addendum, you agree to be bound by this Addendum and acknowledge that it is a binding contract. 

The Bittrex Global Terms of Service (the “Terms of Service”) are available at https://bittrexglobal.zendesk.com/hc/en-us/articles/360009624760 and govern the mobile applications and any other related services provided by Bittrex Global GmbH (“Bittrex Global”, “we”, “us” and their derivatives), including the Bittrex Global Leveraged Trading Beta Program. This Addendum expands on the Terms of Service to address your use of the Bittrex Global Leveraged Trading Beta Program, and the Terms are incorporated by reference into this Addendum. Capitalized terms that are used but not defined in this Addendum have the meanings assigned in the Terms of Service. By agreeing to this Addendum, you also agree to the Terms of Service. Any reference to the “Services” in the Terms of Service shall be deemed to include the Program. In the event of any conflict between the Terms of Service and this Addendum, this Addendum will control. Although this Addendum uses the term “margin” in various places, you acknowledge that is to avoid consumer confusion, as these are generally accepted terms in the industry.  You further acknowledge that 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 you to use leverage trading on your token positions, consistent with applicable law.

1. LEVERAGED TRADING

1.1. Leveraged Trading 

When you buy Tokens on leverage, pursuant to the Leveraged Trading system on the Bittrex Global Trading Platform as described hereinafter, you are borrowing Tokens from Bittrex Global for placing and settling new purchase or sell orders on leverage with regard to Tokens. All Tokens in your Trading Account are transferred as collateral to Bittrex Global to secure this loan in Tokens (in German “Sicherungsübereignung”). In order to engage in leveraged trading, you must first transfer Tokens from your trading account within your Bittrex Global Account (“Trading Account”) to a leveraged account (“Leveraged Account”). 

Leveraged transactions through the Leveraged Trading system are riskier and involve the possibility of greater loss than transactions where you are not borrowing Tokens for placing orders. If the value of your Tokens falls, you may be required to deposit more Tokens as collateral (a "margin call") to secure your loan or your Tokens, and other Tokens or assets may be sold to pay down or pay off your loan without prior notice and at a loss or at lower prices than under other circumstances. If you sell Tokens short (placing a sell order for tokens with a leverage) and the value of the Tokens rises, you may receive a margin call requiring you to deposit additional Tokens and we may sell Tokens already in your Leveraged Account and/or your Trading Account to satisfy your coverage ratio obligation, without prior notice and at a loss or at lower prices than under other circumstances. Leveraged transactions are not suitable for everyone, and you agree to evaluate your own financial situation, resources, investment objectives, and other relevant circumstances to determine whether leveraged transactions are appropriate for you. 

The Leveraged Trading system consists of two separate agreements, a loan agreement and a security agreement. 

These Leveraged Trading terms of service constitute a general framework of conditions governing the Leveraged Trading system on the Bittrex Global Trading Platform. You may receive an individually tailored product under the Leveraged Trading system with individual conditions, which you separately have to accept. 

These special product conditions with regard to the Leveraged Trading system take precedence and prevail over the general conditions stipulated herein in case of contradicting terms. 

 

a) Loan Agreement

In a first step, Bittrex Global acts as a creditor of Tokens and credits Tokens to you as a borrower and consequently debtor of Tokens according to a loan agreement pursuant to § 983 ABGB.

The term of this loan agreement is as will be defined before entering into a loan agreement via the Site. 

The maturity of the loan under this loan agreement is as will be defined before entering into a loan agreement via Site. 

The obligation of Bittrex Global to perform under this loan agreement is fulfilled once the Tokens are credited to your Leveraged Account through transfer of Tokens. 

It is your obligation under this loan agreement to repay the credited Tokens by Bittrex Global in full with interest upon maturity of the loan. The loan interest will be based on the prevailing market rate as disclosed on the Site before entering into a loan agreement. Interest is calculated as daily simple interest, rounded up to the day. All loans have to be repaid in the Tokens which were lent. Loans have to be repaid upon the closing of the position. 

Upon failure to repay the credited tokens upon maturity, Bittrex Global can use Tokens in your Trading Account or Leveraged Account to pay off your loan. 

 

b) Security Agreement / Assignment by Way of Security

In order for Bittrex Global to provide a credit in token under the abovementioned loan agreement, you must provide collateral to Bittrex Global (secured party).

The purpose of the collateral under the security agreement is to secure the interests of Bittrex Global resulting from the loan agreement. 

The obligation of you to perform under this security agreement is fulfilled once the Tokens are transferred to Bittrex Global. Transferal of Tokens to Bittrex Global takes place either by real transfer of tokens to the Leveraged Account or by fictitious transfer of ownership of Tokens in the Trading Account (“Besitzkonstitut” pursuant to Art 187 in connection with Art 503 of the Liechtenstein Law of Property; “Sachenrecht”). Consequently, Bittrex Global becomes authorized to dispose of the Tokens transferred as collateral in the Leveraged Account and Trading Account. The transferal of collateral is made with the understanding in the internal relationship between you and Bittrex Global, that Bittrex Global may only use the collateral if the Leveraged Trading maintenance coverage requirements ("maintenance coverage requirements”) are no longer fulfilled. Upon settlement of any claim resulting out of the security agreement, ownership of the Tokens is to be restored to you. 

The maintenance coverage requirements are calculated as follows: 

  • Margin level is calculated as (Equity / Used Margin). 
  • Equity is the current value of your collateral in your Leveraged Account plus unrealized profit and loss (P&L) on your positions minus accrued interest on your loans. 
  • Used Margin is the current value of the collateral tied to open positions. 
  • Margin call is at a margin level as defined before entering into a security agreement on the Site. At margin call we may choose to close your positions. 
  • Liquidation is at a margin level as defined before entering into a security agreement on the Site. At liquidation, we will close your positions to get you up to or above 100% margin level. 

If a margin call is issued by Bittrex Global in case the maintenance coverage requirements are no longer fulfilled, you must provide additional collateral or the Tokens serving as collateral may be liquidated by Bittrex Global. 

You confirm that you have received our Leveraged Disclosure Statement and acknowledge its content https://bittrexglobal.zendesk.com/hc/en-us/articles/360010015320 and understand the risks involved with leveraged trades pursuant to the Leveraged Trading system. You understand that trading Tokens on leverage involves a variety of risks, including, among others: 

  • You can lose more Tokens than you deposit in your Leveraged Account 
  • We can force the sale of Tokens in your Leveraged Account and/or your Trading Account if you fail to provide collateral pursuant to the indicated the coverage ratio. 
  • We can sell your Tokens without contacting you to meet a margin call. 
  • You are not entitled to choose which Tokens in your Leveraged Account and/or Trading Account are liquidated or sold to meet a margin call. 
  • We can increase our maintenance coverage requirements and will provide such notice in the product. 
  • You are not entitled to an extension of time on a margin call. 

 

1.2. Initial Collateral Coverage and Maintenance Coverage Requirements; Margin Calls for Additional Collateral 

You agree that you are responsible for paying for all transactions you make and all authorized transactions in your Leveraged Account. You agree to maintain in your Leveraged Account a sufficient quantity of Tokens to meet any maintenance coverage requirements imposed by Bittrex Global for users to engage in leveraged trades. 

You agree to promptly satisfy all margin and maintenance coverage calls. You understand and agree that Bittrex Global is not obligated to request additional collateral from you in the event your Leveraged Account falls below maintenance coverage requirements and there may be circumstances where Bittrex Global will liquidate Tokens in your Leveraged Account and/or your Trading Account or impose limits on the amount of any inbound or outbound transfers, or suspend or terminate the ability to transfer Tokens into or out of your Trading Account, in each case, without notice to you to ensure that maintenance coverage requirements are satisfied. 

 

1.3. Liquidation; Payment of Indebtedness Upon Demand 

You agree that we shall have the right, in accordance with our sole discretion regarding our maintenance coverage requirements, when it is necessary for our protection, or to satisfy a margin call, deficiency, debit or other obligation owed to us, we may (a) require additional collateral at an earlier or later point in time than called for by our general policies; (b) sell any or all Tokens in your Leveraged Account and/or your Trading Account; (c) buy any or all Tokens which may be short in your Leveraged Account and/or your Trading Account; (d) cancel any open Orders; (e) impose limits on the amount of any inbound or outbound transfers, or suspend or terminate the ability to transfer Tokens into or out of your Trading Account; or (f) close any or all outstanding transactions, in each case, without demand for collateral or additional collateral, notice of sale of purchase, or other notice or advertisement. While it is our policy to attempt to contact you to the extent practical before taking any action described in this section, we reserve the right to take any such action without prior notice or demand for additional collateral, and free of any right of redemption. 

This means any Tokens held now or in the future any of your Leveraged Account and/or Trading Account Wallet may be liquidated or sold by us, without contacting you, to reduce or eliminate any leveraged trading loan balance(s) in your Leveraged Account. You agree Bittrex Global has the discretion to determine which Tokens are to be sold or bought, which transactions to close, and the sequence and timing of liquidation. You agree not to hold us liable for the choice of which Tokens to buy or sell or of which transactions to close or for the timing or manner of the liquidation. In certain circumstances we may, at our sole discretion, liquidate your entire leveraged trading loan balance to satisfy a margin call. You agree not to hold us liable for taking such action. 

You at all times shall be liable for the full payment of debit balances or other obligations owning in your Leveraged Account. You shall be liable for any deficiency remaining in any such Leveraged Account in the event of the liquidation thereof, in whole or in part, by Bittrex Global or by you, and you shall make payment of such obligations and indebtedness promptly upon demand. 

 

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