1.General Provisions

1.1 These Rules are formulated in accordance with the principles of fairness, openness, and impartiality to regulate margin trading and margin loans of digital assets, maintain market order, and protect the legitimate rights and interests of investors.

1.2 These Rules serve as supplementary provisions to the Margin Trading Service Agreement.

1.3 These Rules apply to isolated margin loans and isolated margin trading conducted on this Website. Matters not specifically addressed in these Rules shall be subject to the Margin Trading Service Agreement, the User Agreement, and other relevant provisions of this Website.

2. Margin

2.1 In the isolated margin model, users must provide a margin that meets the requirements for margin loans for each trading pair (currently, the platform accepts collateral assets in the base currency or the quote currency) before engaging in margin trading.

2.2 The system will set up separate isolated margin accounts for each trading pair based on the user's margin loan application. Users can use the net assets in each of their isolated margin accounts as margin for the corresponding trading pair when engaging in isolated margin trading.

3. Margin Loan Rules

3.1 The Maximum Loan Limit refers to the maximum borrowable amount for the current margin trading pair. The platform calculates the user's maximum isolated margin loan limit based on the available isolated margin and the platform's risk management protocols.

In accordance with these rules, the Maximum Loan Limit is determined by the following formula: Maximum Loan Limit = Net Assets in Isolated Margin Account * (Maximum Leverage - 1) - Outstanding Loan Amount.

3.2 Following the approval of a margin loan, the borrowed digital assets shall be promptly transferred to the user's isolated margin account. The Platform system will begin calculating applicable fees immediately, and the user may then use the borrowed digital assets for isolated margin trading in permitted trading pairs.

4. Rules for Calculating Loan Service Fee Rate

4.1 Loan Service Fee Calculation: Fees are calculated using an hourly simple interest method, determined by the actual loan period. Each full 60-minute interval is considered one hour (starting from the moment the borrowed assets are credited to the user's isolated margin account). Any period shorter than 60 minutes is rounded up to a full hour. Fees begin accruing when the loaned assets arrive in the user's isolated margin account and continue to accumulate hourly.

4.2 Users can repay their loans in advance and pay the service fee based on the number of hours the assets were borrowed. If the assets were borrowed for less than one hour, the term is deemed one hour, and the service fee is calculated accordingly. Users must prioritize the payment of service fees when repaying loans.

4.3 Unpaid loan service fees are factored into the risk ratio. If service fees remain unpaid for an extended period, the user's isolated margin account risk ratio may fall below the liquidation threshold, potentially leading to forced liquidation. To mitigate this risk, users are advised to pay service fees on time or maintain a sufficient balance in their margin accounts.

5. Rules for Loan Repayment/Candy and Airdrops

5.1 Loan Repayment: Users can manually select specific loan orders for repayment. The repayment process prioritizes the oldest outstanding loan orders, settling service fees before the principal. Once the principal and service fees of a specific loan order are fully repaid, the loan order status updates to “Paid Off”, and no further service fees will be charged for that order.

5.2 Candy and Airdrops: Users cannot claim rewards generated from borrowed assets. If rewards, including candies and airdrops, are received during the loan period, users must return them when repaying the borrowed assets.

6. Risk Control

6.1 Users participating in margin loans must use the net assets in their isolated margin account as collaterals. Digital assets in other accounts do not contribute to the collaterals of the isolated margin account.

6.2 The platform monitors the user's isolated margin account risk ratio in real-time and takes appropriate measures based on changes in the risk ratio.

The risk ratio of an isolated margin account is calculated as follows: Risk Ratio = Total Asset Value / (Total Liabilities + Outstanding Service Fee), where:

Market value conversion is calculated in BTC.

Total Asset Value = Current Total Market Value of All Digital Assets in the Isolated Margin Account.

Total Liabilities = Current Total Market Value of All Outstanding Margin Loans in the Isolated Margin Account.

Outstanding Service Fee = (Amount of Each Margin Loan × Loan Duration in Hours at the Time of Calculation × Hourly Service Fee Rate) - Deducted/Paid Service Fee.

6.3 When the risk ratio of an isolated margin account reaches 120% (the “Warning Line”), the system notifies the user via their registered contact information, alerting them to potential trading risks. Upon receiving this warning, the user must immediately repay the loan or transfer sufficient margin from their spot account to restore the risk ratio above the Warning Line.

6.4 When the risk ratio of an isolated margin account drops to 110% (the “Forced Liquidation Line”), the system automatically liquidates the account, closing all positions and repaying all margin loans. Repayments occur in chronological order, starting with the earliest loan. If the account lacks sufficient assets for repayment (“negative equity”), the platform reserves the right to claim outstanding debts from the user.

6.5 Users are responsible for managing margin trading risks and must adjust their positions accordingly. All liquidation losses are solely borne by the account holder, including those resulting from a rapid decline in the risk ratio from the Warning Line to the Liquidation Line due to market volatility.

6.6 The platform manages the overall market value of margin loans. If the total margin loan amount reaches its maximum limit, the system suspends new margin loans until the total value drops below the limit.

6.7 The platform will adjust the maximum total margin loan amount and the maximum borrowable amount for users based on actual market conditions and risk control policies.

6.8 If a user's isolated margin account enters negative equity after forced liquidation, the platform may restrict transfers from their isolated margin account to their spot account and disable their withdrawals. Withdrawals will remain suspended until all outstanding loans and fees are repaid.

6.9 To ensure account security, users may only transfer digital assets from their isolated margin account to their spot account if the isolated margin account's risk ratio exceeds 200%. The risk ratio must remain at or above 200% after the transfer.