1.1 Contract Service (this“Service) is a digital assets derivatives offered by BHEX. BHEX is responsible for product design and management & operation of the trading platform. In order to use the Service, you shall read and abide by the Digital Asset Service Agreement of BHEX (this “Agreement”). Please read carefully, fully understand the terms and conditions contained herein, and choose to accept this Agreement or not.
1.2 You may not use BHEX contract services and the related services, unless you have read and accepted all the terms of this Agreement. Your acceptance of this Agreement and your use of this Service shall be deemed as you have read and agreed to be bound by this Agreement.
2.1 You understand and acknowledge that
（1）You agree to abide by “BHEX Contract Users Agreement” and you are eligible and not prohibited from using the “Services” as defined therein;
（2）This Agreement does not conflict with the laws of the country or region of your residence; and you are the legitimate owner of the digital assets pledged under this Agreement, and undertake that the source of such digital assets is legitimate.
2.2 You need to understand the risk of the Services, including but not limited by:
High volatility of digital asset and its derivative may result in severe loss in a short time;
The insufficient of margin may cause ADL of your position, or the lost of your crypto assets.
Technical issues may occur to delay or prevent you usage of the Service;
Your digital assets may suffer a loss due to market abnormality;
In order to maintain the overall health of the market, BHEX may add, delete or modify the policies, rules from time to time, at its sole discretion. Such changes or implementations may benefit or harm individual users like you.
2.3 You must acknowledge that:
You will not use the Service for any illegal service.
You will not initiate or facilitate any form of market manipulation.
3. The Service
3.1 The Service will provide you with real-time market depth and other information, which can be checked and downloaded.
3.2 You have can place orders via website, APP end etc. Once the order is filled, it can not be canceled or modified.
3.3 When you open a position and the order is completed, corresponding contract position will be established, vice versa when you close a position. The Service will provide you with real-time position information and value of the digital asset and its derivative.
3.4 The contracts will be settled at 00:00, 08:00 and 16:00 (UTC+8) each day, absed on the latest price at the settling time. (Defined by the Service, Please refer to the “BHEX Contract Guide” for more details). The Unrealized P&L(UPL) will be calculated from the settlement price, and added into Realized P&L (RPL), which can be transferred out after. Then the Unrealized P&L and Realized P&L will be rebalanced as 0 (You can check the “BHEX Contact Guide” for the definition of the settlement of the RPL and UP )
3.5 Funding fee will be charged between short and long traders. （Defined and calculated by the Service, Please refer to the “BHEX Contract Guide” for more details.)
3.6 Service fee will be charged for using BHEX Contract Service. Please check the “BHEX Contract Guide” for details.
4. Risk Control
4.1 BHEX contract adopt multiple mechanism to control risk, include but not limited by :
Tiered Maintenance Margin Ratio Mechanism
Societal Clawback Procedure” and Insurance fund Mechanism
4.2 Tiered Maintenance Margin Ratio is the lowest required Margin Ratio for a user to maintain the current open position(s) when the Margin Ratio of the account is lower than the Maintenance Margin Ratio + Forced-Liquidation Fee Rate. Basically, the larger the positions held, the higher Maintenance Margin Ratio will be required, and the lower the Leverage will be available. Please refer to the “BHEX Contract Guide” for more details.
4.3 Forced-liquidation Mechanism. If the a seller’s account balance drops below the maintenance margin level , liquidation will be triggered and will not stop until the account’s risk is low enough. During the liquidation, if the maintenance margin level can meet the latest maintenance margin requirement, then the liquidation will stop; if the maintenance margin level can not fulfill the latest maintenance margin requirement, then the liquidation will continue. Please refer to the “BHEX Contract Guide” for more details.
4.4 If the size of your positions or open orders accumulates to a level which poses considerable threat to other users. BHEX, under its discretion may request you to cancel your orders or close part of your positions. BHEX reserves the right to restrict or cancel positions or orders of certain accounts to reduce the risk in the system.
4.5 Your account will go bankruptcy if the account balance of your account drops below zero after a Liquidation. Bankruptcy loss (“Bankruptcy Loss”) means such amount of the account balance below zero. The total Bankruptcy Loss will be compensated by insurance fund of the Service in priority. If the insurance fund is insufficient to compensate all the total Bankruptcy Loss, the Societal Clawback Procedure will be adopted by the Service to compensate the remaining total Bankruptcy Loss. Users that have a net profit for such settlement period will be subject to such clawback. Part of the profit of such users will be deducted pro rata to compensate the remaining total Bankruptcy Loss which could not be compensated by the insurance fund.
BHEX will continually improve risk-management measures based on the market condition.
5.1 You acknowledge that you understand the rules and policies thoroughly relating to the Service. BHEX will not be liable for your loss due to misunderstanding of the rules and policies. In particular, to open or maintain your positions, the amount of crypto assets you deposited as margin will need to meet certain requirements. If the requirements are not met, Forced Liquidation will be triggered. When a Forced Liquidation happens, you could lose all the crypto assets you have deposited as margin.
5.2 Your accurate transaction information will only be displayed after the final settlement. The information displayed between two consecutive settlements is only for reference and cannot be guaranteed to be an official result. You may suffer losses if you operate based on such information and BHEX shall not be responsible for such losses.
5.3 To comply with the changes in laws or regulations, or to maintain the overall well-being of the market, BHEX will need to, under its sole discretion, change policies, rules or implement emergency rules from time to time. Such changes or implementations could lead to temporary inaccessibility of your account, clawback from your account, immediate closure of your certain positions, or other interruption of the Service. BHEX will not be liable for your loss incurred.
5.4 BHEX will not be liable for any loss incurred by uncontrollable situations, including but not limited to:
A. System maintenance announced in advance.
B. Internet device malfunctions which disabledata transfer.
C. War, riots, floods, earthquakes or any other unexpected disruptions.
D. Hacking attacks, computer virus, internet network malfunctions, banking issues, website updates, service suspension, delay or cancellation due to the interruption of government.
E.Unpredictable or unresolvable issues with the technologies currently available.
F. Situations caused by third parties including inappropriate or delayed
5.5 Network failures, system failures, hacking attacks, and other unforeseen factors have the potential to cause abnormal turnover, market interruptions and other possible anomalies. BHEX reserves the right to cancel and/or roll back transactions over a period of time in which it deems sufficient to mitigate any detrimental market effects. BHEX will not be liable for any loss incurred thereby.
5.6 You are aware that technology outages can happen unexpectedly. BHEX will not be liable for any loss incurred by technology outages including but not limited to:
loss, delay, interruption, or other malfunction of the connection to the Service.
stopping, slowness, no response, or other malfunction of the Service, due to overloading.
malfunction due to the Service’s incapability to retrieve necessary data correctly from a third party through internet.
5.7. BHEX strictly prohibits unfair trading behaviors. BHEX reserves the right to enact, under its sole discretion, executive control over your account, if you:
are involved in price manipulation or any other malicious wrongdoings to the market;
might harm other users or BHEX by exploiting the Service’s vulnerabilities or by other unreasonable means;
are involved in any other activities that BHEX deems harmful to the overall well-being of the market.
BHEX also reserves the right to take actions including but not limited to closing your accounts, limiting trading, halting trading, canceling transactions, and rolling back transactions to eliminate any adverse effects to the overall well-being of the market. BHEX will not be liable for any loss incurred when such action against you happens.
6.1 You must indemnify BHEX for actions related to your BHEX account and your use of the Service.
6.2 You hereby agree to defend, indemnify and hold BHEX harmless from any claim or demand (including reasonable legal fees) made or incurred by any third party against BHEX due to or arising out of your breach of this agreement, your improper use of the Service, your violation of any law or the rights of a third party and/or the actions or inactions of any third party to whom you grant permissions to use your BHEX account or access our website, software, system (including any network and servers used to provide any of the Service) operated by us or on our behalf, or any of the Services on your behalf.
7.1 The contents of this Agreement also include BHEX's various system specifications, other agreements or rules in the annex to this Agreement. Once the above content is officially released, it is an integral part of this agreement, and you should also abide by it. In the event of any conflict between the above content and this Agreement, this Agreement shall prevail if no opposing statements are made.
7.2 BHEX reserves the right to unilaterally modify this Agreement (including the above contents) if necessary. Such modification could happen at any time without prior notice. In the event that any changes are made, the revised contents shall be posted on BHEX 's website immediately. Please check the latest information posted therein to inform yourself of any changes. Your continued use of or access to the Service following the posting of any changes constitutes acceptance of those changes. If you do not accept the revised content, you should stop using the related services.
7.3 You should read the Agreement and the 7.1 and 7.2 of the Agreement, and any document referred to in them very carefully. If there is anything that you do not understand in the Agreement and any document referred to herein, you should discuss this matter with BHEX and seek the necessary clarification. Any formal communication with you will be undertaken through electronic mail unless otherwise instructed. Documents will be sent to you by electronic mail and you should seek to send any documents to us by the same means. You will also be able to contact us via telephone. Any formal communication with you will, unless otherwise agreed, be made in the English language. In the event of any discrepancy between the English language version of the Agreement or any such communications and any translation of the Agreement or such communications (as applicable) in a foreign language, the respective English version shall prevail.
In the event of any discrepancy between communications and the Agreement, the Agreement shall prevail.
The establishment, validity, explanation, alteration, execution and dispute resolution of this user agreement shall be governed by the laws of Cayman Islands.
7.5 If there is any dispute between a user and BHEX, both parties should try to work out a resolution through negotiations. However, if the attempt is unsuccessful, both parties should agree to resolve the disagreement or dispute through Cayman Islands judiciary.
7.6 All the headings in this agreement are for reading convenience only and shall not affect its interpretation.
7.7 This Agreement does not apply to users of the Simulated Contract Trading on BHEX.