1.1 OKEx Options Trading (the “Service”) is a Virtual Financial Asset (VFA) derivative trading service launched by Aux Cayes Fintech Co. Ltd. (hereafter “OKEx”). It is designed, managed, and operated by OKEx. To enable OKEx Options Trading, you must fully read, understand and agree to “OKEx Options Trading User Agreement” and the contents included in Article 7.1 herein (the “Agreement”). Please read through all the terms and conditions carefully, before choosing to accept this Agreement.
1.2 Please note that you shall not use the Service before agreeing to the terms of the Agreement. In particular, by accepting the Agreement directly or using the Service, you acknowledge that you have agreed to the terms of the Agreement.
2. Eligibility of Using the Service
2.1 You acknowledge and agree that:
- you have agreed to “OKEx Terms of Service”, and you are eligible for and not prohibited from using the “Services” defined therein;
- this Agreement does not contradict with the laws of the country or region where you are from;
- you are the legal owner of the VFAs you have deposited with the Service and aforesaid VFAs are obtained from legitimate sources.
2.2 You are aware of and assume the risks in using the Service, including but not limited to:
- high price volatility of the VFAs and their derivatives could incur big or total loss in a short period time;
- the insufficiency of VFAs deposited as margin could incur immediate liquidation of your positions, and you could lose all VFAs you have deposited with the Service;
- technology out ages could happen, which may delay or block your use of the Service;
- market anomaly could happen, which may incur loss of your VFAs.
- from time to time, in order to maintain the overall well-being of the market, OKEx needs to add, remove, or change policies. Such action may be in favor or against an individual user like you.
2.3 You acknowledge and agree that:
- You will not use the Service for any illegal purpose.
- You will not initiate or facilitate any form of market manipulation.
3. Using the Service
3.1 The Service provides you with real-time order book along with other information. You may view or download information for your own analysis. OKEx is not responsible for any judgment or analysis you make based on the information provided by the Service.
3.2 You may place orders, in the form required by OKEx, via the website, client software, API or any other channels. Once an order is filled you will not be able to cancel or amend it.
3.3 Once your open order is filled, the corresponding position is opened. Once a close order is filled, the corresponding position is closed. The Service will provide you with information about your positions, and about the value of your VFAs and their derivatives, on real-time basis.
3.4 The options contract will be settled at 08:00 (UTC) daily. Then, the UPL (Unrealized Profit and Loss) and RPL (Realized Profit and Loss) will be reset to 0. After the settlement, the accumulated profits from this settlement cycle can be withdrawn. (For definitions and calculations of UPL and RPL, please refer to the OKEx Options Guide).
3.5 In-the-money options (ITM) will be automatically exercised at 08:00 (UTC) at expiration date. When the contract is exercised, VFAs of equivalent payoff will be added to the buyer’s account balance and deducted from the seller's. Both buyer and seller need to pay a fee for exercising. At-the-money options (ATM) and out-of-the-money options (OTM) will expire without being exercised at 08:00 (UTC) at expiration date. (For definitions and calculations of exercise settlement amount, ITM, ATM and OTM, please refer to the OKEx Options Guide);
3.6 You shall pay OKEx for the Service. As for the payment arrangement, please refer to OKEx Fee Schedule Tier for details.
3.7 If market anomalies occur before settlement and delivery, including but not limited to acute fluctuation of underlying index or abnormal clawback rate, OKEx may, under its sole discretion, decide to settle at a proper time with commercially reasonable method. OKEx shall post an announcement regarding such detailed rules.
4. Risk Management
4.1 The Service introduces various measures to control the systematic risks, including but not limited to:
- Mark Price Mechanism
- Partial Liquidation Mechanism
- Liquidation Mechanism
- Societal Clawback Procedure
OKEx will continuously improve its risk-management measures.
4.2 "Mark Price Mechanism". OKEx adopts Mark Price Mechanism to avoid users' potential loss caused by price manipulation or other malicious wrongdoings to the market. Mark Price is calculated from Black model and adjusted with the overall change of options price expectations, not determined by transaction or quotation of one single instrument. OKEx applies Mark Price on calculation of position value, PnL(Profit and Loss) and margin as the basis of risk control.
4.3 "Partial Liquidation Mechanism". When your account fails to meet the margin requirement, Partial Liquidation will be triggered. Your account will be temporarily taken over by the Service’s Risk Management Engine. In Partial Liquidation Mechanism, the Service’s Risk Management Engine will keep liquidating your positions, until your account meets the margin requirement once again. Please refer to the OKEx Options Guide for details.
4.4 "Liquidation Mechanism". When the account equity falls below the liquidation level, Liquidation will be triggered. All positions in your account will be transferred to the Service’s Risk Management Engine for subsequent liquidation. After the transfer, all your positions will be wiped out and account equity will be zero. Please refer to the OKEx Options Guide for details.
4.5 “Societal Clawback Procedure”. 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. During the Settlement, the Service will calculate total Bankruptcy Loss caused by all Liquidations for all relevant users for the current settlement period (both at the time of trigger of the Liquidation and subsequent Liquidation of positions by the Service's Risk Management Engine). 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. Please refer to the OKEx Options Guide for more details.
4.6 If the size of your positions or open orders accumulates to a level which poses considerable threat to other users, OKEx, under its discretion may request you to cancel your orders or close part of your positions. As a final measure, the Service reserves the right to limit or cancel your positions or orders to reduce the risk in the system.
5. Limitation of Liability
5.1 You acknowledge that you understand the rules and policies thoroughly relating to the Service. OKEx 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 VFAs 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 VFAs 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 OKEx 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, OKEx 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. OKEx will not be liable for your loss incurred.
5.4 OKEx will not be liable for any loss incurred by uncontrollable situations, including but not limited to:
- system maintenance announced in advance;
- internet device malfunctions which disabledata transfer;
- war, riots, floods, earthquakes or any other unexpected disruptions;
- hacking attacks, computer virus, internet network malfunctions, banking issues, website updates, service suspension, delay or cancellation due to the interruption of government;
- unpredictable or unresolvable issues with the technologies currently available;
- 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. OKEx 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. OKEx will not be liable for any loss incurred thereby.
5.6 You are aware that technology outages can happen unexpectedly. OKEx 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 OKEx strictly prohibits unfair trading behaviors. OKEx 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 be harming other users or OKEx by exploiting the Service’s vulnerabilities or by other unreasonable means;
- are involved in any other activities that OKEx deems harmful to the overall well-being of the market.
OKEx also reserves the right to take actions including but not limited to closing your accounts, limiting trading, halting trading, cancelling transactions, and rolling back transactions to eliminate any adverse effects to the overall well-being of the market. OKEx will not be liable for any loss incurred when such action against you happens.
6.1 You must indemnify OKEx for actions related to your OKEx account and your use of the Service.
6.2 You hereby agree to defend, indemnify and hold OKEx harmless from any claim or demand (including reasonable legal fees) made or incurred by any third party against OKEx 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 OKEx 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 OKEx's various system specifications, other agreements or rules in the annex to this Agreement, the Options Guide and other relevant agreements and rules regarding the Service that OKEx may from time to time issue. 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 OKEx 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 OKEx'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 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 OKEx 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 telephonically. 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.
7.4 The establishment, validity, explanation, alteration, execution and dispute resolution of this user agreement shall be governed by the laws of Seychelles.
7.5 If there is any dispute between a user and OKEx, 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 Seychelles 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 Options Trading Simulation.