1. Introduction
2. Interpretation and Definitions
3. Eligibility
4. Exchange User Obligations
5. Trading Platform
6. Trading Platform Public Data
7. Contracts
8. Account
9. Trading
10. Trading Rules
11. Funding
12. Settlement
13. Margin
14. Liquidation
15. Post-Liquidation
16. Insurance Fund
17. Auto-Deleveraging
18. Calculations
19. Market Misconduct
20. Breach of Exchange Rules
21. Notices
22. Representation and Warranties
23. Fees
24. Emergency Rule
25. Record Keeping, Confidentiality and Regulatory Reporting
26. Notifications
27. Compliance
28. Disclosure
29. Amendments

1. Introduction

1.1. These Exchange Rules set out the rules that govern access to, and use of, the Trading Platform.

1.2. These Exchange Rules supplement and form part of the Terms of Service, and constitute legally binding rules between each User and the Company. In the event of any conflict between these Exchange Rules and the Terms of Service (other than Annex A), the Terms of Service shall prevail.

2. Interpretation and Definitions

2.1. For purposes of these Exchange Rules:

• Account Information

  means data and information in respect of an Exchange User’s Orders, Trades, Positions and Account Balance (including the Wallet Balance, Margin Balance and Available Balance), which the Company may make available to an Exchange User through the Website, Mobile App, API or any other means which the Company may specify or make available from time to time.

• Auto-Deleveraging

  means the automatic deleveraging of an Exchange User’s Position, as executed by the Auto-Deleveraging System.

• Auto-Deleveraging System

  means automated deleveraging system established by the Company, as described here.

• Available Balance

  means the available balance recorded and credited to an Exchange User’s Account including, where applicable, margin which is available for Positions, as determined by the Company, and is calculated by subtracting any Order Margin and the Position Margin already assigned to open Orders and Positions from the Margin Balance.

• Bankruptcy Price

  means, in respect of a Position, the price at which loss on that Position is equal to the Position Margin allocated or available with respect to that Position, as determined by the Company.

• Base Asset means the first digital asset referenced in a Trading Pair that is being traded on the Trading Platform.

• Base Risk Limit

  means the lowest position Risk Limit in respect of a digital asset.

• Best Ask

  means the lowest price offered for the sale of a Contract at the relevant time.

• Best Bid

  means the highest price offered for the purchase of a Contract at the relevant time.

• Contract

  a contract, agreement or transaction (including the exchange of a Quote Asset and Base Asset) approved for trading on the Trading Platform pursuant to these Exchange Rules, the terms of which include the relevant Contract Specifications.

• Contract Specifications

  means the contractual specifications and terms for each Contract (including, but not limited to, the Initial Margin Requirement, Maintenance Margin Requirement, Index, Contract size, Settlement terms, applicable Fees, expiry date and Funding (if applicable)), as set forth for each Futures Contract and Perpetual Contracts linked here and for all Spot Trading Pairs linked here.

• Early Settlement

  means a declaration by the Company, in its sole and absolute discretion, that a Contract, Trade or Position will Settle at a time specified by the Company (including prior to the specified Settlement time as set out in the Contract Specifications (if any)).

• Emergency

  means any situation or circumstance which, in the Company’s determination, requires action to be taken under Rule 24, including (but not limited to):

  • a) any actual, attempted, threatened or proposed manipulative activity;

  • b) any circumstance that materially affects the performance of the Trading Platform or Exchange Users including (but not limited to) flood, pandemic, extraordinary weather conditions, earthquake, act of God, fire, war, insurrection, malicious acts of damage, riot, labour dispute, accident, communication failure, power and electricity supply failure, equipment or software malfunction; and

  • c) any action taken by a regulatory, governmental, judicial, arbitral, quasi-governmental or other competent authority having an impact on the Trading Platform or Exchange Users.

• Entry Value

  with respect to a Position, means the value of that Position calculated using the corresponding entry price

• Exchange User

  means a User who is approved by the Company to access and/or use the Trading Platform.

• Execution Instruction

  has the meaning given in Rule 9.9.

• Funding

  has the meaning given to it in Rule 11.1.

• Funding Rate

  means the funding rate for a Perpetual Contract, as determined by the Company in accordance with Rule 11.4 from time to time.

• Futures Contracts

  means the futures Contracts offered by the Company on the Trading Platform.

• Index

  means the BitMEX Indices and any other index published, determined and/or calculated by the Company with reference to the Index Constituents, or otherwise used by the Company for the purposes of valuation, margin and/or settlement with respect to a Contract.

• Index Constituent

  means a constituent exchange of an Index which is used to calculate the Index Price.

• Index Price

  means the price of an Index as determined by the Company at the relevant time, using the methodology as described here.

• Initial Margin Requirement

  means the initial margin requirement as determined by the Company in respect of the relevant Contract, Order, Trade or Position (including any applicable Fees), as described here.

• Insurance Fund

  means the fund established by the Company as further described here.

• Liquidate or Liquidation

  means the liquidation process in accordance with Rule 14 (Liquidation), including the cancellation of Orders or termination of Trades or Positions, as applicable.

• Liquidation Engine

  means the system established by the Company for the purposes of cancelling Orders and terminating Trades and Positions, as described here.

• Liquidation Trade

  has the meaning given in Rule 15.

• Load Shedding Policy

  means the policy adopted by the Company in respect of the priority and queuing of Order Management Requests, as found here.

• Loss

  means any loss, cost, liability, expense or damage incurred by any party, including, without limitation, legal and other professional fees and expenses.

• Maintenance Margin Requirement

  means the maintenance margin requirement as determined by the Company in respect of the relevant Contract, Order, Trade or Position (including any applicable Fees), as described here.

• Margin Balance

  means the margin balance recorded and credited to an Exchange User’s Account, as determined by the Company, and is determined as the sum of the Wallet Balance and any unrealised profit and loss from all open Positions.

• Market Disruption Event

  occurs when the Company, in its sole and absolute discretion, has declared a market disruption event as a result of:

  • a) an Index Constituent that contributes to the Index Price of a Contract experiencing any outage or error; or

  • b) any other event or circumstance occurring which the Company determines has the effect of restricting orderly and fair trading.

• Market Misconduct

  has the meaning given to it in Rule 19.1.

• Mark Price

  means, with respect to derivatives Contracts, the mark price calculated with reference to the Index Price as determined by the Company in respect of a Contract or a Position, as described here. With respect to Spot, the mark price is the last trade price reported on the Spot Trading Platform.

• Mark Value

  with respect to a Position, means the value of that Position calculated using the corresponding Mark Price

• Matching Engine Book

  means the Company’s books, records, data and systems setting out the Orders, Trades and Positions made on the Trading Platform, as determined by the Company.

• Notice

  means a Trading Notice or a User Notice.

• Order

  means a bid or offer, as applicable, made (or deemed to be made) by an Exchange User to enter into the relevant Contract with the Company made through the Trading Platform, and includes any portion of a bid or offer, where applicable.

• Order Management Request

  means the submission of:

  • a) a new Order;

  • b) a change to an open Order;

  • c) a cancellation of an open Order; or

  • d) a change in the leverage in respect of an Order or a Position.

• Order Margin

  means the initial margin deducted from a User’s Available Balance in respect of an open Order in connection with the Initial Margin Requirement.

• Order Type

  has the meaning given in Rule 9.8.

• Perpetual Contracts

  means the perpetual Contracts offered by the Company on the Trading Platform.

• Position

  in respect of an Exchange User’s Trade or Trades in the same Contract, means the net position, as determined by the Company.

• Position Margin

  means the initial margin deducted from a User’s Available Balance in respect of an open Position in connection with the Initial Margin Requirement.

• Position Value

  means the value of a Position determined by the Company using a relevant price

  • Quote Asset means the second digital asset referenced and that is denominated in a Trading Pair that is being traded on the Trading Platform.

• Quote Value Ratio

  means the ratio determined by the Company in the manner set out here, as amended by the Company in its sole and absolute discretion without prior Notice to Exchange Users.

• Quote Value Ratio Threshold

  means the minimum Quote Value Ratio threshold specified by the Company as set out here, as amended by the Company in its sole and absolute discretion without prior Notice to Exchange Users.

• Required Order Margin

  means the margin required by the Company in connection with an Order, including such margin required to meet (i) any Initial Margin Requirement in respect of the Order and (ii) any change in the Maintenance Margin Requirement resulting from any profit or loss for the Exchange User’s existing Position in the relevant Contract (if any).

• Risk Limit

  means a risk limit level in respect of the Contract, including the Base Risk Limit, as described here.

• Settle or Settlement

  has the meaning given in Rule 12.1.

• Settlement Price

  means the price at which a Position Settles at the time of its expiration or at the time of Early Settlement, as determined by the Company in its sole and absolute discretion.

• Step

  means an increment of a Risk Limit.

• Terms of Service

  means the Terms of Service.

• Trade

  Trade means a Contract executed between an Exchange User and the Company through the Trading Platform.

• Trading Criteria

  has the meaning given to it in Rule 3.1.

• Trading Day

  means Monday to Sunday, unless otherwise determined by the Company in its sole and absolute discretion.

• Trading Halt

  has the meaning given to it in Rule 5.2.

• Trading Hours

  means from and including 12:00am (UTC) on a Trading Day to and including immediately prior to 12:00am (UTC) on the immediately following Trading Day, unless otherwise determined by the Company in its sole and absolute discretion.

• Trading Notice

  has the meaning given to it in Rule 21.1.

-Trading Pair means each pair of a Base Asset and a Quote Asset offered on the Trading Platform.

• User Notice

  has the meaning given to it in Rule 21.2.

• Wallet Balance

  means the wallet balance recorded and credited to an Exchange User’s Account, as determined by the Company, and is calculated as the sum of the Exchange User’s aggregate Deposits and realised profit and loss from its Positions as reduced by the Exchange User’s aggregate Withdrawals (taking into account any adjustment made by the Company from time to time under the Terms of Service or these Exchange Rules).

  2.2. References to the Terms of Service, these Exchange Rules or any other document expressly incorporated herein includes any amendment to such Terms of Service, these Exchange Rules or any such document.

  2.3. Unless these Exchange Rules expressly provide to the contrary, any reference in these Exchange Rules to:

• a) certain information being as described on the Website means that such information on the Website is being provided for general information and reference purposes only (but the terms of these Exchange Rules prevail and such information on the Website does not amend, prevail over or affect the interpretation of these Exchange Rules);

• b) amounts stated as being credited to or deducted from an Exchange User’s Available Balance, Account Balance, Margin Balance or Wallet Balance means that such amounts will be added to or deducted from the balance which the Company reflects in its books and records as available to be used by the Exchange User on the Trading Platform, and for these purposes, the Exchange User has no rights or interest in respect of any amount that is recorded in its Available Balance, Account Balance, Margin Balance or Wallet Balance;

• c) a formula, calculation, ratio, matter, policy, threshold, balance, sum, amount, event or any other matter as determined by the Company means such matter as determined by the Company in its sole and absolute discretion;

• d) amend means any amendment, novation, supplement, extension or restatement;

• e) a party or any other person includes its successors in title, permitted assigns and permitted transferees;

• f) a person includes any individual, firm, company, corporation, government, state or agency of a state or any association or body (including a partnership, trust, fund, joint venture or consortium), or other entity (whether or not having separate legal personality);

• g) including means including without limitation;

• h) Applicable Laws is a reference to that provision as amended and includes any subordinate legislation; and

• i) words importing the singular shall be deemed to include the plural and vice versa.

  2.4. A Rule or a Schedule is a reference to a rule of or a schedule to these Exchange Rules.

  2.5. The headings in these Exchange Rules are for ease of reference only and don’t affect its interpretation.

  2.6. Capitalised terms have the same meaning as in the Terms of Service, unless otherwise defined.

3. Eligibility

3.1. To access and use the Trading Platform, a User must meet the following trading criteria (“Trading Criteria”) to the satisfaction of the Company:

• a) it has accepted and agreed to the Terms of Service and these Exchange Rules;

• b) it has made the representations and given the warranties set out in the Terms of Service and these Exchange Rules;

• c) the Company has not ceased, disabled, or terminated its use of, and access to, the Trading Platform;

• d) its Account has not been disabled or closed under the Terms of Service; and

• e) it complies with the Terms of Service, Exchange Rules, all Applicable Laws and any other terms imposed by the Company.

  3.2. The Company may, in its sole and absolute discretion, approve a User as an Exchange User to access and use the Trading Platform. Without prejudice to any of the Company’s rights under the Terms of Service and these Exchange Rules, the Company may, in its sole and absolute discretion, cease, disable, restrict or terminate an Exchange User’s use of, and access to, the Trading Platform at any time.

  3.3. Each Exchange User is solely responsible for having its own appropriate systems, infrastructure and controls in place to access and use the Trading Platform.

4. Exchange User Obligations

Each Exchange User shall on an on-going and continuing basis:

• a) meet Trading Criteria;

• b) comply with Terms of Service, these Exchange Rules and all Applicable Laws;

• c) cooperate with the Company to comply with all Applicable Laws;

• d) take any other action the Company determines is necessary or desirable to ensure a fair and orderly market; and

• e) ensure all information submitted to the Company is true, complete, up-to-date and accurate.

5. Trading Platform

5.1. The Trading Platform is a trading facility where Contracts can be executed. The Trading Platform is operated by the Company.

5.2. The Trading Platform can be accessed during Trading Hours, save that, without prejudice to any of the Company’s rights in these Exchange Rules or the Terms of Service, the Company may temporarily halt or limit access to (or use of) the Trading Platform (a “Trading Halt”) in its sole and absolute discretion, including during a scheduled maintenance period. During a Trading Halt, the Company may temporarily halt or limit trading (including the submission of new Orders and the execution of Trades) in respect of:

• a) any or all digital assets on the Trading Platform; or

• b) the whole Trading Platform.

The Company has no obligation to give prior Notice to Exchange Users of a Trading Halt or when trading will resume after a Trading Halt. The Company is not liable for any Losses as a result of a Trading Halt.

5.3. Exchange Users agree and acknowledge that the Company has no obligation to make the Trading Platform available at any time. The Company makes no representation or warranty that the Trading Platform will be available at any and all times and the Company assumes no liability (whether for trading-related Losses or otherwise (including because of any Trading Halt)) if the Trading Platform is not available for any time or for any period.

5.4. The Trading Platform and all calculations are currently denominated in various digital assets including, but not limited to bitcoin and USD Tether.

The Company may use other digital assets and denominate the Trading Platform and calculations using such other digital assets from time to time as the Company determines in its sole and absolute discretion. Certain prices and values may be quoted, displayed or specified in non-digital asset currencies as determined by the Company from time to time and shall be for reference purposes only (unless otherwise stated). The Company has sole and absolute discretion to determine the exchange rate (including between any digital assets and non-digital asset currencies) to be used in any of its calculations.

5.5. Nothing under these Exchange Rules or the relationship between the Exchange User and the Company gives rise to any fiduciary, advisory, trust or equitable duties by the Company. The Company shall have no obligations to an Exchange User under these Exchange Rules except as expressly set out, and no obligations shall be implied or read into these Exchange Rules.

5.6. Nothing on the Trading Platform shall be construed as marketing, promotion, offering, solicitation, recommendation or advice on any of the Contracts or Trades. The Company does not, and has no obligation to, advise an Exchange User on any of the Contracts or Trades. Each Exchange User makes its own independent decision to access and use the Trading Platform, place Orders and enter into Trades. Each Exchange User is fully and solely responsible for any Losses incurred in respect of its Trades. Exchange Users should seek independent advice where appropriate.

6. Trading Platform Public Data

The Trading Platform publishes public order books, trading charts and trading information in respect of certain Contracts, Orders, Trades, and other data ("Public Data"). Such Public Data provided on the Trading Platform or the Website is for general information purposes only. No representation or warranty, express or implied, is made to the Public Data’s availability, accuracy, reliability or completeness. The Company expressly disclaims any and all liability for the availability, accuracy, reliability or completeness of the Public Data. For example, certain types of Orders, such as Hidden Orders, are not displayed on the Trading Platform’s Public Data with respect to order books.

7. Contracts

7.1. The list of Contracts which can be traded on the Trading Platform, as well as the Contract Specifications, are set out here for Futures Contracts and Perpetual Contracts. Spot Trading Pairs are available to view on the BitMEX Spot platform, and trading fees are set out here.

7.2. The Company may in its sole and absolute discretion and at any time:

• a) suspend trading of or remove a Contract from the Trading Platform;

• b) add a new Contract to the Trading Platform; and

• c) amend any provision or term of any Contract (including the Contract Specifications in respect of a Contract).

The Company has no obligation to give prior Notice to Exchange Users before taking any such actions, although it will use reasonable endeavours to give reasonable Notice where possible. Without limitation, the Company may not be able to give Notice where any actions by a governmental, regulatory or other authority causes the Company to suspend trading of a Contract.

7.3. Without prejudice to the Company’s rights under Rule 29, any amendments made to any provision or term of a Contract in accordance with Rule 7.2 may apply to all open Orders and all outstanding Trades and Positions in that Contract as well as any future Orders, Trades and Positions in that Contract. The Company is not liable for any Losses relating to amendments to any provision or terms of a Contract or for any Notice (or lack of Notice) prior to such amendment.

8. Account

Account Information

8.1. The Company shall use reasonable endeavours to update each Exchange User’s Account Information on a real-time basis to reflect information recorded in the Matching Engine Book, but each Exchange User acknowledges and agrees that the Matching Engine Book is final and conclusive source of all data and information that is recorded by the Matching Engine Book and the Account Information is for general information purposes only. If there is any inconsistency between the data and information in the Account Information and the data and information in the Matching Engine Book, the data and information in the Matching Engine Book will prevail.

Account Balance

8.2. The Exchange User’s Account Balance (including the Wallet Balance, Margin Balance and Available Balance) reflects the balance of digital assets which the Company reflects in its books and records as available to be used by the Exchange User on the Trading Platform.

8.3. The calculations conducted by the Company to determine the Account Balance are final and conclusive.

9. Trading

General

9.1. An Exchange User may, where permitted under these Exchange Rules, propose to enter into a Trade through the Trading Platform by submitting an Order.

9.2. The Trading Platform matches an Exchange User’s Order with one or more Orders submitted by other Exchange Users (or deemed to be submitted by other Exchange Users) in accordance with this Rule 9. An Order is deemed to be submitted by other Exchange Users if it is submitted by the Trading Platform, Liquidation Engine or Auto-Deleveraging System. When a match occurs, the Company executes a Trade with each Exchange User on a principal-to-principal basis in accordance with Rule 9.19. Each Trade is a legally binding contract between the Exchange User and the Company.

9.3. Each Order and Trade is subject to the Terms of Service and these Exchange Rules, and governed by English law.

9.4. Each Exchange User is responsible for any Order made on the Trading Platform, including to ensure that the Order is properly submitted on the Trading Platform through the Website, Mobile App, API or any other means which the Company may specify or make available from time to time. Order Management Requests may be rejected by the Trading Platform and it is each Exchange User’s responsibility to confirm whether an Order Management Request has been accepted by the Trading Platform. The Company is not liable for any Loss suffered as a result of any Order not being submitted by an Exchange User or any Order Management Request being rejected for any reason. Orders are submitted to the Trading Platform at the Exchange User’s own risk.

9.5. Each Exchange User is responsible for any Trade executed on the Trading Platform. Upon acceptance of an Order, the Trading Platform shall match such Order in accordance with these Exchange Rules and enter into a legally binding Trade with the Exchange User. The Company is not liable for any Loss as a result of executing a Trade in accordance with the Exchange User’s Order. It is each Exchange User’s responsibility to assess the risks associated with the execution of a Trade.

9.6. The Company is entitled to rely on, and an Exchange User is bound by, all Orders and Trades made by an Exchange User through its Account.

Orders

Order Submission

9.7. As a condition precedent to an Exchange User submitting an Order, (i) an Exchange User’s Available Balance must be at least equal to the relevant Required Order Margin and (ii) such proposed Order must pass the validation and risk checks conducted by the Trading Platform.

9.8. A buy or sell Order for a Contract can be submitted on the following terms (each, an “Order Type”):

• a) Market Order: an Order to be executed immediately at current market prices;

• b) Limit Order: an Order specifying the maximum (in respect of a buy Order) or minimum (in respect of a sell Order) price (“Limit Price”) at which the Trade may be executed;

• c) Stop Market Order: a Market Order which will be placed when the market (set as either last price, mark price or Index Price) reaches a specified trigger price set by the Exchange User (“Trigger Price”), where the Trigger Price will be below the market price at the time of submission in respect of a sell Order and above the market price at the time of submission in respect of a buy Order;

• d) Stop Limit Order: a Limit Order which will be placed when the market reaches the Trigger Price, where the Trigger Price will be below the market price at the time of submission in respect of a sell Order and above the market price at the time of submission in respect of a buy Order;

• e) Trailing Stop Order: a Market Order which will be placed when the price reverts by an amount equal to the trailing value set, which will be positive in respect of a buy Order and negative in respect of a sell Order;

• f) Take Profit Limit Order: a Limit Order which will be placed when the market reaches the Trigger Price, where the Trigger Price will be above the market price at the time of submission in respect of a sell Order and below the market price at the time of submission in respect of a buy Order;

• g) Take Profit Market Order: a Market Order which will be placed when the market reaches the Trigger Price, where the Trigger Price will be above the market price at the time of submission in respect of a sell Order and below the market price at the time of submission in respect of a buy Order; and

• h) Pegged Order: a Limit Order which is set at a price relative to the current market price at the time of submission of the Order, which can be submitted as a PrimaryPeg (where the price is set relative to the Best Bid price) or as a MarketPeg (where the price is set relative to the Best Ask price).

Certain Order Types may be made through API only.

9.9. When submitting an Order, Exchange Users may also be able overlay the following execution instructions on Order Types (as applicable) (each, an “Execution Instruction”):

• i) GoodTillCancel Order: an Order that will remain outstanding until the full quantity of such Order is executed or the Order is cancelled;

• ii) Day Order: an Order that will remain outstanding until the full quantity of such Order is executed or the Order is cancelled or the time reaches 12:00 (UTC);

• iii) AllOrNone: an Order in which the full quantity of the Order will either be executed or otherwise cancelled;

• iv) FillOrKill Order: an Order in which the full quantity of the Order will either be immediately executed or otherwise cancelled;

• v) ImmediateOrCancel: an Order in respect of which all or a portion of the quantity of the Order will be immediately executed, and any portion that is not immediately executed will be immediately cancelled;

• vi) Hidden Order: an Order which is not displayed on the Trading Platform’s Public Data;

• vii) Iceberg Order: an Order where only part of the order is displayed on the Trading Platform’s Public Data;

• viii) Post-Only Order: an Order that is only accepted if it is not immediately executed;

• ix) Reduce-Only Order: an Order which will only reduce the Position held;

• x) Close Order: an Order which will cancel other active Limit Orders with the same side and symbol if the open quantity exceeds the current Position.

The Company may add, remove or amend Order terms, types and/or overlays from time to time in its sole and absolute discretion. For information purposes only, guidance on the Order terms and types are described here and here and in the API explorer here.

Order Management

9.10. Order Management Requests are processed by the Trading Platform in the order they are made (first-in-first-out). The Company implements policies, measures and actions, including, for example, a Load Shedding Policy (which can be amended by the Company in its sole and absolute discretion from time to time), that the Company considers necessary to manage the volume of Order Managements Requests. Such policies and measures can be amended by the Company at any time in its sole and absolute discretion. The Company may also take steps to prioritise, reduce, decrease or moderate the volume of Order Management Requests (including, but not limited to, by rejecting Order Management Requests or prioritising certain Order Management Requests). Where an Order Management Request is rejected by the Trading Platform, an Exchange User may then choose to resubmit or change such Order Management Request.

Order Acceptance and Cancellation

9.11. Subject to certain validation and risk checks conducted by the Trading Platform, the Order may be accepted by the Trading Platform. Upon an Order being accepted by the Trading Platform:

• a) the Company will send a User Notice to the Exchange User confirming that the Order has been accepted by the Trading Platform; and

• b) the relevant Order Margin will be deducted from the Exchange User’s Available Balance.

  9.12. Certain Orders may be cancelled by the Exchange User through the Trading Platform before the Order is executed by Trading Platform. An Order cannot be cancelled after a Trade has been executed between the Company and the Exchange User.

Protection on Market Orders

9.13. A buy Market Order for a Contract will be limited to a price equal to 5% above the higher of the Best Ask and the Mark Price at the time of such Market Order (the higher of such Best Ask and such Mark Price being the “Higher Buy Price”). Such an Order will be executed up to the aggregate notional amount of the sell Orders priced between the Higher Buy Price and 5% above the Higher Buy Price, and the unexecuted remainder of any such Order (if any) shall be cancelled.

9.14. A sell Market Order for a Contract will be limited to a price equal to 5% below the lower of the Best Bid and the Mark Price at the time of such Market Order (the lower of the Best Bid and the Mark Price being the “Lower Sell Price”). Such an Order will be executed up to the aggregate notional amount of the buy Orders priced between the Lower Sell Price and 5% below the Lower Sell Price, and the unexecuted remainder of any such Order (if any) shall be cancelled.

Risk Controls on Limit Orders

9.15. A buy Limit Order for a Contract will not be accepted if (i) the notional amount of the Order is larger than the aggregate notional amount of the Orders at the Best Ask at the time of the Order and (ii) the Limit Price is more than 5% above the higher of the Best Ask and Mark Price.

9.16. A sell Limit Order for a Contract will not be accepted if (i) the notional amount of the Order is larger than the aggregate notional amount of the Orders at the Best Bid at the time of the Order and (ii) the Limit Price is more than 5% below the lower of the Best Bid and Mark Price.

Genuine Orders

9.17. An Exchange User shall only submit and make Orders which represent a genuine intention to execute a Trade. An Exchange User must not submit or make Orders with the purpose to manipulate or create a false market on the Trading Platform or otherwise submit or make any Orders without the intention to execute a Trade. The Company monitors Orders and implements policies and measures to restrict and reject Orders which the Company considers to be manipulative, misleading, not genuine, non-bona-fide, or otherwise abusive. For example, subject to any exemptions established by the Company from time to time and set out here, each Account’s Quote Value Ratio must be below the Quote Value Ratio Threshold; this Rule shall apply to Contracts designated by the Company from time to time as specified here.

Trade Execution

9.18. The Trading Platform uses a central order book and, according to price and time priority of accepted Orders, may match an Exchange User’s Order with one or more Orders of another Exchange User (or Orders deemed to be of another Exchange User), subject to certain validation and risk checks and any other terms determined by the Company.

9.19. If the Trading Platform determines that there is a match in respect of an Exchange User’s Order:

• a) the Company and the Exchange User will have executed the corresponding Trade on a principal-to-principal basis;

• b) the terms of such Trade will be recorded in the Matching Engine Book;

• c) such Trade will be a legally binding contract between the Exchange User and the Company;

• d) the Company will send a User Notice to the Exchange User confirming that the Company and the Exchange User have executed a Trade; and

• e) the relevant Position Margin will be deducted from or credited to the Exchange User’s Available Balance.

  9.20. The Trading Platform will net all Trades in respect of the same Contract and determine an Exchange User’s net Position in a Contract (including the Position Margin assigned to that Position).

Order, Trade and Position Amendment or Cancellation

9.21. The Company may, in its sole and absolute discretion, enter into a supplemental or off-setting Trade with an Exchange User or take any other steps to amend, adjust, close, reverse, Liquidate, mitigate, off-set, deleverage or settle (as applicable) any Order, Trade or Position in respect of an Exchange User:

• a) to correct or adjust any clerical, operational or other error;

• b) upon a Market Disruption Event;

• c) where it determines there has been any breach of Applicable Law;

• d) where it determines that it is necessary or desirable in order to preserve the integrity of the trading market;

• e) to implement any changes or amendments including (without limitation) to the Trading Platform, these Exchange Rules, the Contracts (including Contract Specifications), Funding, Settlement, Maintenance Margin Requirements, Liquidation, Order Types or Execution Instructions;

• f) where it determines that an Order or Trade is otherwise manipulative or abusive; or

• g) where it determines that an Order or Trade result from or may cause any Market Misconduct,

and the Company shall provide the impacted Exchange User with a User Notice.

Any determination and decision made by the Company under this Rule 9.21 is final and conclusive.

9.22. If an Exchange User believes that an Order, Trade or Position has been placed, executed or calculated in error, the Exchange User must notify the Company within 24 hours.

10. Trading Rules

10.1. The Company may implement or impose trading rules, restrictions and limitations on trading in its sole and absolute discretion, including any order, trade, position, price or other limits.

A list of the current trading rules, restrictions and limitations imposed on the use of the derivatives Trading Platform is set out in the Trading Rules. In case of any discrepancy between these Exchange Rules and the Trading Rules, these Exchange Rules shall prevail unless expressly stated otherwise in those Trading Rules. The Company may amend these in its sole and absolute discretion without prior Notice to Exchange Users.

10.2. The Company may also implement or impose restrictions and limitations specifically in relation to the Exchange User’s Account. The Company may implement and/or amend these restrictions and limitations in its sole and absolute discretion without prior Notice to an Exchange User.

11. Funding

11.1. The terms of the Perpetual Contracts include a periodic funding amount that is paid or received by the Exchange User as set out in this Rule 11 in connection with the Exchange User’s Position (“Funding”).

11.2. At each of the specified times as set out here (each a "Funding Timestamp"):

• a) Funding will be determined by the Company in respect of an Exchange User’s Position in respect of a Perpetual Contract at such time; and

• b) the following shall apply:

• i) if the Funding Rate in respect of a Perpetual Contract is positive as at a Funding Timestamp:

• A) Funding shall be deducted from the Position Margin assigned to that Position of an Exchange User holding a long Position in that Perpetual Contract; and

• B) Funding shall be credited to the Wallet Balance of an Exchange User holding a short Position in that Perpetual Contract; OR

• ii) if the Funding Rate in respect of a Perpetual Contract is negative as at a Funding Timestamp:

• A) Funding shall be deducted from the Position Margin assigned to that Position of an Exchange User holding a short Position in that Perpetual Contract; and

• B) Funding shall be credited to the Wallet Balance of an Exchange User holding a long Position in that Perpetual Contract shall.

  11.3. In respect of each Funding Timestamp, the amount of Funding is equal to:

Mark Value x Funding Rate

as determined by the Company.

11.4. The Mark Value and Funding Rate are determined by the Company as set out in the Funding Terms.

11.5. Funding shall be deducted from Position Margin assigned to a Position or credited to Wallet Balance in respect of a Perpetual Contract only if the Position is held at the relevant Funding Timestamp.

11.6. All calculations in respect of Funding by the Company are final and conclusive. The Company may amend the Funding Timestamps, the Funding Terms, the Funding Rate, the methodology for determining the Funding Rate and any other terms relating to the determination of Funding in its sole and absolute discretion and without prior Notice to Exchange Users.

12. Settlement

12.1. Settlement occurs when a Position closes or expires at the Settlement Price and the profit or loss on that Position is credited to or deducted from the Exchange User’s Wallet Balance (“Settle” or “Settlement”).

12.2. Other than in the case of Early Settlement:

• a) Perpetual Contracts do not Settle; and

• b) Futures Contracts Settle in accordance with their Contract Specifications.

  12.3. The Company has the right to declare Early Settlement of any Contract due to a Market Disruption Event or for any other event or reason as determined by the Company including, but not limited to, concerns about the underlying digital assets or to ensure a fair and orderly market. The Company will use reasonable endeavours to provide reasonable prior Notice to Exchange Users upon the declaration of Early Settlement, including the terms on which the Contracts will settle. The Company is not liable for any Losses relating to Early Settlement or for any Notice (or lack of Notice) in respect of Early Settlement.

  12.4. In the event of Early Settlement, all Trades in respect of a Contract that the Company has declared is subject to Early Settlement will Settle at a time determined by the Company and in accordance with the Early Settlement Policy. The Company may amend the Early Settlement Policy in its sole and absolute discretion without prior Notice to Exchange Users.

  12.5. All calculations and determinations in respect of Settlement and Early Settlement by the Company are final and conclusive.

13. Margin

13.1. Certain Contracts may be traded on a margin basis. Notwithstanding that, the Company may at any time cease to permit such Contracts to be traded on a margin basis or vary the margin terms by way of a Notice.

13.2. Contracts that may be traded on a margin basis and Orders, Trades and Positions of such Contracts (as applicable) are subject to Initial Margin Requirement and Maintenance Margin Requirement as set out in the Risk Limit Policy. The Company may amend the Margin Requirement Policy and the Margin Calculation Policy in its sole and absolute discretion without prior Notice to Exchange Users.

13.3. The amount of Initial Margin Requirement and Maintenance Margin Requirement in respect of any Position will take into account the Risk Limit selected by the Exchange User in respect of that Position. The Company may vary or change the Risk Limit in respect of an Exchange User’s Position at its sole and absolute discretion, including in connection with any Liquidation in accordance with Rule 14.

13.4. The Company reserves the right to vary the Initial Margin Requirement and the Maintenance Margin Requirement in respect of an Exchange User by way of User Notice.

13.5. All calculations related to Initial Margin Requirement and Maintenance Margin Requirement in respect of a Contract, Order, Trade or Position by the Company are final and conclusive.

13.6. Order Margin shall be deducted from an Exchange User’s Available Balance in accordance with Rule 9 upon acceptance of an Order.

13.7. Each Position shall have Position Margin assigned to that Position. The Position Margin assigned to a Position shall be used to satisfy an Exchange User’s Maintenance Margin Requirement, and may varied in accordance with these Exchange Rules.

13.8. Position Margin shall be deducted from an Exchange User’s Available Balance in accordance with Rule 9 upon execution of a Trade.

13.9. The Maintenance Margin Requirement is satisfied in respect of Orders and Positions (as applicable) as follows:

• a) The Maintenance Margin Requirement is satisfied in respect of an Order if sufficient Order Margin is deducted from the Exchange User’s Available Balance.

• b) The Maintenance Margin Requirement is satisfied in respect of a Position if the Position Margin assigned to the Position is greater than the Maintenance Margin Requirement. The Maintenance Margin Requirement is not satisfied in respect of a Position if the Position Margin assigned to the Position is less than the Maintenance Margin Requirement.

  13.10. An Exchange User may select “Isolated Margin” or “Cross Margin” in respect of a Position.

• a) Where Isolated Margin is selected in respect of a Position, the Position Margin assigned to that Position will be used to satisfy an Exchange User’s Maintenance Margin Requirement for that Position. An Exchange User may vary the Position Margin assigned to a Position subject to the Exchange User’s Available Balance, the Initial Margin Requirement and the Maintenance Margin Requirement.

• b) Where Cross Margin is selected in respect of a Position, an Exchange User’s entire Available Balance in the corresponding Margin currency will be treated as Position Margin assigned to that Position to satisfy an Exchange User’s Maintenance Margin Requirement for that Position.

  13.11. Failure to satisfy the Maintenance Margin Requirement in respect of a Position will result in the Liquidation of an Exchange User’s open Orders and/or Positions in accordance with Rule 14. The Exchange User acknowledges and accepts that it bears all risks and Losses as a result of the Exchange User’s failure to meet the Maintenance Margin Requirement in respect of an Order or a Position.

14. Liquidation

Liquidation Process

14.1. Liquidations referred to in Rule 13 are effected on the Trading Platform by the Liquidation Engine if an Exchange User has failed to satisfy the Maintenance Margin Requirement in respect of a Position.

14.2. Liquidation of an Exchange User’s Position shall be effected as follows:

• a) if the Exchange User is on a Step that is not the Base Risk Limit in respect of a Contract:

• i) Liquidation Phase 1 – The Liquidation Engine shall assess whether the correct Step is applied based on the sum of the notional amounts of the open Orders and the Position. If the sum of such notional amounts is below the Step that is being currently applied, then the Step will be reduced by the Liquidation Engine to the appropriate Step based on the sum of the notional amounts of the open Orders and the Position (and the Maintenance Margin Requirement will also be reduced as determined in accordance with Rule 13.2). If the Maintenance Margin Requirement is satisfied following this Liquidation Phase 1, no further action is taken.

• ii) Liquidation Phase 2 – If the Maintenance Margin Requirement is not satisfied after Liquidation Phase 1, then the Liquidation Engine will cancel all of the Exchange User’s open Orders (if any) in respect of the same Contract. If the sum of the notional amount of the Position is below the Step that is being currently applied, then the Step will be reduced by the Liquidation Engine to the appropriate Step based on the sum of the notional amount of the Position (and the Maintenance Margin Requirement will also be reduced as determined in accordance with Rule 13.2). If the Maintenance Margin Requirement is satisfied following this Liquidation Phase 2, no further action is taken.

• iii) Liquidation Phase 3 – If the Maintenance Margin requirement is not satisfied after Liquidation Phase 2, then a FillOrKill Order, of a size to bring the Mark Value below a lower Step, is submitted on behalf of the Exchange User. If the FillOrKill Order is executed and the Maintenance Margin Requirement is satisfied as a result of this Liquidation Phase 3, no further action is taken. If either the FillOrKill Order is not executed, or after the execution of such Trade(s), the Maintenance Margin Requirement is not satisfied, the Position shall be terminated and the Exchange User shall immediately have no further rights, interests or obligations in the Position and the Position Margin assigned to that Position.

• b) if the Exchange User is on the Base Risk Limit in respect of a Contract, the Liquidation Engine shall cancel the Exchange User’s open Orders (if any) in respect of the same Contract. If the Maintenance Margin Requirement is satisfied in respect of the Position after the cancellation of the Exchange User’s open Orders (if any), no further action is taken. If the Maintenance Margin Requirement is not satisfied in respect of the Position after cancellation of the Exchange User’s open Orders (if any), the Position shall be terminated and the Exchange User shall immediately have no further rights, interests or obligations in the Position and the Position Margin assigned to that Position.

The Exchange User acknowledges and accepts that it bears all risk and Losses arising from the Liquidation process as a result of the Exchange User’s failure to meet the Maintenance Margin Requirement. Further, the Exchange User agrees and acknowledges that upon termination of a Position, the Exchange User will have no further rights, interests or obligations in the Position and the Position Margin assigned to that Position.

14.3. The Company will use reasonable endeavours to provide a User Notice as soon as practicable after Liquidation of a Position unless the Exchange User has opted out of receiving such User Notice.