Before using FalconX futures trading, users should read and comply with this agreement. Users must carefully read and fully understand all terms, especially those that exempt or limit liability, and choose to accept or not accept them.
Unless the user has read and accepted all the terms of this agreement, the user is not entitled to use FalconX futures trading and its related services. The user's actions of logging in, viewing, and posting information on this service constitute acceptance of this agreement.
1. Futures Services
1.1 Futures trading carries a high degree of risk. As a futures trader, you acknowledge and agree that you assume all risks associated with accessing and using futures trading services.
1.2 You should fully understand the risks associated with futures trading and are fully responsible for any trading and non-trading activities on your FalconX account. You must not engage in trading or investment activities beyond your financial capacity.
1.3 You are solely responsible for understanding the true state of any position, even if FalconX incorrectly presents this information at any time;
1.4 You agree to maintain a sufficient amount of FalconX blockchain assets in your FalconX margin account for users to engage in futures trading and to repay your loan in full and on time. Failure to maintain sufficient assets may result in the forced liquidation of the assets in your margin account;
1.5 FalconX may, at its sole discretion, take measures on your behalf to mitigate your potential losses, including but not limited to transferring funds from your margin account to your exchange account and/or from your exchange account to your margin account;
1.6 During FalconX system maintenance, you agree to manage your margin account at your own risk, including but not limited to closing positions and repaying your loans;
1.7 You agree to conduct all transactions, contractual transactions, and/or borrowings solely by yourself and to be fully responsible for your activities. FalconX shall not be liable for any loss or damage arising from your use of any service or from your lack of understanding of the risks associated with the use of assets or your use of our services;
1.8 Users agree that all investment operations conducted on FalconX represent their true investment intentions and unconditionally accept the potential risks and returns arising from investment decisions.
1.9 FalconX reserves the right to suspend or terminate contract services and take over user positions. When necessary, the FalconX platform may suspend or terminate contract services and take over user positions at any time.
1.10 Due to network latency, computer system failures, and other possible force majeure events, the execution of contract services may be delayed, suspended, interrupted, or deviate. FalconX will endeavor to ensure, but does not guarantee, the stability and effectiveness of the contract service execution system. However, FalconX shall not be liable for any discrepancies between the final execution result of the contract service and the client's expectations due to the aforementioned factors.
2. Forced liquidation, risk reserve, and maximum profit target for contracts.
2.1 Liquidation Engine: When a user's position loses 90%, the liquidation engine will forcibly take over the position and liquidate it.
2.2 Forced Liquidation: When a forced liquidation position is executed at a price lower than the bankruptcy price (the price at which the principal loss is 0), a forced liquidation surplus will be generated. This surplus will be injected into the risk reserve fund and used to offset the loss from margin call during user settlement.
2.3 Risk Reserve Fund: The risk reserve fund is established by the platform to provide financial guarantees for maintaining the normal operation of futures trading and to compensate for losses caused by unforeseen risks to the platform.
2.4 Opening Price Limit Guarantee: The platform will calculate a reasonable opening price relative to the current price based on market conditions, risk reserve status, market depth, etc., so that users can open positions immediately based on the price displayed on the page, regardless of the sharp fluctuations in the market.
2.5 Maximum Profit Taking for Contracts
Isolated Margin: The maximum profit margin for a contract is 5000%. Once the maximum profit margin is exceeded, the system will take over your position and close it out at the maximum profit margin for that instrument.
3. Prohibited items in the contract:
3.1 Users are prohibited from using multiple accounts and devices for illegal arbitrage (including but not limited to commission fraud, rebates, bonuses, hedging, etc.) as the system assesses user account risk through multi-dimensional identification. The platform will take appropriate measures against users detected by the system for illegal arbitrage (including but not limited to account suspension, asset freezing, login restrictions, real-name authentication, etc.).
3.2 To ensure a normal trading experience for ordinary users, the platform reserves the right to take the following measures against users detected by the system as engaging in ultra-short-term trading (frequent opening and closing of ultra-short-term positions):
1) Immediately terminate your account and access to our servers, and deduct any illegal gains;
2) Invalidate all transactions constituting ultra-short-term trading activities (i.e., treat the transactions as if they never happened);
3) Based on our current market price, close all trades that constitute ultra-short-term trading activities;
4) Increase your holding time (i.e., hold your position for a certain period of time before closing it).
3.3 FalconX strictly prohibits unfair trading practices. If you engage in any of the following behaviors, FalconX reserves the right to exercise executive control over your account at its sole discretion:
1) Engaging in price manipulation or any other malicious market behavior;
2) It may harm other users or FalconX by exploiting vulnerabilities in this service or by other unreasonable means.
3) Engaging in any other activities that FalconX deems harmful to the market.
I have read and agreed to the Futures Services Agreement and agree to use FalconX Futures Services.