In order to use the virtual option contract of JEX blockchain assets, the user shall read and observe the User Agreement Of Blockchain Assets Option Contract(hereinafter referred to as “the agreement”) and Service Rules of JEX Platform On Digital Currency Transaction and other regulations. Please read in a prudent manner for a thorough understanding of each provision, especially the relevant provisions on liability exemption or limitation, and open or use the separate agreement for certain services by choosing acceptance or no acceptance.
Unless the user has read and accepted all provisions hereof, the user shall not be entitled to use the virtual option contract of JEX blockchain assets and enjoy the services thereof. The behaviors of logging in, browsing or release information of the user for the services shall be deemed that the user has read and agreed with the restraint under the agreement.
1.1. The option contract of blockchain assets is a derivative of blockchain assets launched by JEX, which is a service operation of design management and transaction platform of products responsible by JEX.
1.2. The user assured that at the time of registering and becoming the user of this platform according to the agreement, the user is or over 18 years old. This agreement is not precluded by the laws of the countries or regions where the user(s) located and shall comply with the applicable laws of the countries. The rules of the transaction on JEX platform and rules on the transaction of virtual option contract of JEX blockchain assets must be observed. In the failure of being satisfactory to the above-mentioned conditions, the user shall terminate the register or stop to use this service immediately.
2. Rules of contractual product
2.1. The Underlying Asset of the contract includes virtual currency varieties recognized by JEX and shall be priced by BTC at the time of making transaction.
2.2. Each option contract of blockchain assets has a nominal value 1 unit for object blockchain assets. The minimum unit of it for the transaction shall be determined according to the option contract of respective varieties.
2.3. The option contract of blockchain assets is divided into call option and put option. The former denotes the user holding option may purchase the corresponding Underlying Asset at the exercise price of option on the exercising date from the issuer or get the earning option of the part higher than the exercise price at final settlement price of the option while the latter denotes the user holding the option may sell the corresponding Underlying Asset at the exercise price of option on the exercising date to the issuer or get the earning option of the part lower than the exercise price at final settlement price of the option.
2.4 There are two exercise methods of option: the spot settlement and balance difference settlement. The former means the exercising party may purchase from or sell to the issuer the subject matter of option at the closing price of option while the balance settlement means the exercising party shall be entitled to obtain the gains at the difference of closing price of option and the final settlement price of option.
2.5 The settlement date of spot settlement shall be three days after the maturity date of option. The settlement date of balance settlement shall the date following the maturity date of option. The settlement shall be made subject to separate option clauses or actual announcement made on the platform if any.
2.6 The performance price of option of balance settlement shall be the average transaction price at 0:00-24:00 on the maturity date of option on the transaction platform designated on the option contract and the average transaction price shall be the arithmetic average price calculated based on the latest price updated in every 6 seconds.
2.7 In the event of abnormal market before and after closing and settlement time, which resulted in sharp fluctuation of settlement price, or in the event of other abnormal situations in the market, the transaction platform shall be entitled to postpone the closing and settlement time according to the specific situation and the specific rules shall be subject to the announcement made on the JEX platform.
3. Transaction Rules
3.1 The user may place the entrustment for the transaction via the webpage, App, API and other means recognized by JEX. The entrustment includes the object of the transaction, entrusting price, entrusting volume, entrusting direction and other contents required by JEX.
3.2 When the user places the entrustment and transacted for purchase, the transaction platform shall deduct from the account of the user corresponding BTC necessary for such purchase as per actual transaction volume and price and shall increase the corresponding holding option to the user at meanwhile.
3.3 When the user places the entrustment and transacted for selling, the transaction platform shall deduct from the account of the user corresponding holding of option as per actual transaction volume and price and shall increase the BTC gained from such selling to the user at meanwhile.
3.4 When a certain option contract becomes due, the transaction platform shall terminate the transaction of the option contract at 24:00 (Beijing time) on the current date of the option contract becomes due.
3.5 At the exercise date of a certain option contract, if the contract is of spot settlement, the user shall provide the exercise entrustment of option contract. The transaction platform shall deduct corresponding BTC as per exercise price and exercise volume and deliver to the user corresponding object of option. If the user selected the automatic settlement and have enough BTC in its account for such settlement, the user shall be deemed by the transaction platform to entrust the platform for making such transaction on behalf of the user if the price of subject matter is higher (lower) than the exercise price on the exercise day. If the contract is of balance settlement contract and the user may obtain positive gains after exercise, the platform shall perform it for the user and deliver to the user the due earnings from the performance.
4.Rules of risk control
4.1 As for the issuer who issued the option contract of blockchain assets via the platform, the platform shall collect the performance security assets from the issuer to guarantee the performance thereof and ask the issuer for margin call according to the changes of market situation. If the issuer failed to make additional security assets, JEX shall be entitled to take measures such as the limit price for the transaction, suspending transaction, premature delist of transaction varieties and compensate the users holding option contract with all security assets provided by the issuers on the purpose of protecting the interests of investors.
4.2 In the event of abnormal fluctuation for the price of blockchain assets, termination or delist from the confirm and transaction platform of performance price, suspending, community splits or dissolution, etc. thereof due to the reasons of projects, teams or communities corresponding to the blockchain assets, JEX shall be entitled to take measures such as limit price for transaction, suspending transaction, premature termination of contract, etc. and compensate the users who hold option contract, with all security assets provided by the issuers on the purpose of protecting the interests of investors. The total amount of compensation to the user shall not exceed the total amount of security assets provided by the issuer for the option contract.
5.1 When participating in the transaction of virtual contract, the users must comply with the principle of justice and equity.
5.2 JEX shall be entitled to give warning to any unethical behaviors such as malign manipulation of price or affecting transaction system, etc. and to take measures like transaction restraint, closing the accounts and so on. If necessary, JEX shall be entitled to suspend the transaction, canceling the transaction, rolling back time transaction, etc. in order to eliminate the negative impact.
5.3 If it is necessary for the opinion of JEX, JEX shall be entitled to ask the uses to take measures of risk control like withdrawal of application or closing out, etc. or shall be entitled to take measures of risk control such as limit the aggregate gross position, limiting the total entrusted volume, limiting the open position, withdrawing the applications or forced closing out, etc.
5.4 JEX shall not be liable to the compensation for damages by unavailability for the user to use various services or make normal entrustment due to the failure of the system platform for operation caused by following situations, including, but not limited to:
- Shutdown for maintenance of JEX platform announcement system;
- Unable to make data transmission due to the failure of telecommunication equipment;
- Unable to perform the transaction because of the fault of JEX platform system caused by force majeure such as typhoon, earthquake, tsunami, flood, power failure, war, terrorist assaults and so on.
- Interrupted or delayed services caused by the temporary suspension which affected the normal operation of network such as hacker attack, penetration or breaking out of the computer virus, technical adjustment or failure of telecommunication department, upgrading of website, banking system, government regulation and so on.
- Losses resulted from technical problems which are unforeseeable or insurmountable by present technical force in this trade.
- Losses suffered by users or third parties due to the errors or delays of a third party.
5.5 In the event of extraordinary trading, interrupted transaction and other abnormal situations caused by system failure, network problems, hacker attack like DDos and so on, JEX shall be entitled to cancel the concluded extraordinary transaction and rolling back to the transaction concluded in a certain period.
5.6 Any unjustifiable transaction shall be prohibited on the JEX transaction platform, including, but not limited to, user making malice entrustment by utilizing the possible system bug and manipulate malevolently the price and volume by means of malevolent entrustment, continuous entrustment, using affiliated accounts for reversed transactions, etc.. In this situation, JEX shall be entitled to cancel the concluded extraordinary transaction and rolling back to the transaction concluded in a certain period.
5.7. This agreement includes also rules and regulations of JEX, other agreement, and rules as Appendixes to this agreement and other relevant agreements and rules regarding the services issued by JEX from time to time and so on. The above-mentioned rules and agreements shall become the integrated part of this agreement after their issuance to be aided by all parties hereto. in the event of conflicts between these agreement band rules and this agreement, the latter shall prevail. Once you registered or use any service hereunder, it shall be deemed that you have read and accepted this agreement as well as subject to the restraint under the above-mentioned documents. JEX shall be entitled to unilaterally modified this agreement or above-mentioned documents, if necessary. Upon modification, if you continue to use this service, it shall be deemed that you have accepted the modification and you should stop to use relevant service if you do not accept such modification.
5.8 The laws of the Republic Of Seychelles shall be applicable for the establishment, effectiveness, interpretation, and settlement of dispute of this agreement.
5.9 If there are any disputes or controversies between you and JEX, it shall be at first settled through friendly discussion. If it is failed to be settled through friendly discussion, it is agreed to submit such dispute or controversy to the court of jurisdiction in Seychelles for final settlement.
6. The headings for each clause are for the purpose of convenience for reference only, having no actual meanings and shall not be used as bases of construing thereof.