Part I Preface
One. Purpose, Basis, and Principle
- The purpose of this agreement is to protect the legal rights and interests of investors by expressly define the rights and obligations of the parties to the agreement and regulate and standardize the product's operation.
- The agreement is made on the principle of voluntariness and good faith in the purpose of sufficient production of legal rights and interests of investors.
Two. The agreement is the basic legal document specified the rights and obligations between the parties to the agreement and if there are any conflicts between any documents or expressions concerning the rights and obligations of parties hereto in relation with products and the agreement, the latter shall prevail.
The parties hereto include product administrator and holders of Portfolios. After obtaining the Portfolio according to the agreement, the product investor(s) shall become the holder of products share and the party hereto and the holding of Portfolio indicated the express acknowledge and acceptance of this agreement.
Three. If there are any conflicts between the information regarding the products disclosed, other than disclosure in the agreement, by the product administrator or the products custodian and the agreement, the latter shall prevail.
Four. The products shall be established and operated under laws, rules, and regulations of the Republic Of Seychelles. In the event of conflicts between the provisions of this agreement and the compulsory stipulations under then applicable laws, rules and regulations, it shall be subject to the then applicable laws, rules and regulations.
Part II Definition and Interpretation
Unless it is provided otherwise in this agreement, the following words and expressions have the meaning below:
- Product or this product: It means the invested products of Blockchain Assets Index on the JEX platform;
- Product administrator: It means the management person of investment products to the corresponding index.
Parties to the agreement: It means the legal entities that enjoy the rights and undertake the obligations in accordance with the agreement, subject to the restraint under the agreement, including the product administrator and the holder of Portfolio.
- The holder of Portfolio: It means the investor who held the invested products share of blockchain assets index on the JEX platform.
Redemption list: It means the documents prepared by the product administrator for the announcement of information about consideration redemption.
Consideration redemption: It means at the time of redemption of Portfolio by the holder thereof, the product administrator shall deliver the Portfolio assets to the person who made such redemption in accordance with agreement and prospectus.
- Object index: It means the blockchain assets index corresponding to the products.
Portfolio assets: It means all or part of the assets included in the object index of the product.
- Minimum redemption unit: It means the minimum volume of the product to be redeemed and the Portfolios to be redeemed by the investor(s) must be the integral multiples of minimum purchase and redemption unit.
- Indicative Optimized Portfolio Value(IOPV ): It means the Indicative Optimized Portfolio Value(“IOPV”) released by the product administrator or its delegated China Securities Index Co., Ltd in the trading hours via Shenzhen Stock Exchange according to the real-time calculation of various securities in the list of purchase and redemption and portfolio of securities.
- Force majeure: It means the unforeseeable and unavoidable and insurmountable objective events beyond the control of the party hereto.
Part III Transaction of Portfolio
One. Transaction of portfolio
The transaction of the product shall be made on the platform of JEX blockchain Assets transaction and the users shall observe the service rules of JEX transaction platform when participating such transaction.
Two. Suspending listing and trading
In the events of any following situations during the period of product listing and trading, JEX platform shall suspend the product trading:
- The exchange corresponding to the object index become abnormal, it is necessary to be suspended in the opinion of JEX platform;
The abnormal fluctuation appears for the object index, it is necessary to be suspended in the opinion of JEX platform;
- The other situations that lead to the suspension, in the opinion of JEX platform.
When the above-mentioned events disappeared, the JEX platform shall advise the resumed trading in the manner of an announcement.
Three. Termination of listing and trading
When JEX platform considered it is necessary, JEX platform shall terminate the transaction of product and the specific reasons and method of termination shall be subject to the announcement made via JEX platform.
Four. The calculation and announcement of IOPV
The Indicative Optimized Portfolio Value(IOPV ) shall be calculated and released by the JEX platform according to the data of real-time calculation of various securities in the list of purchase and redemption and portfolio of securities to the investors for reference in trading or redemption of the portfolio.
The product administrator may adjust the formula of calculation of IOPV and make announcement accordingly.
Part IV Redemption of Portfolio
One. Place of application for redemption
The investor shall submit the application for redemption of product via JEX platform. The specific method of redemption and minimum redemption unit shall be subject to the announcement made by JEX platform.
Two. Opening day and time of redemption
The opening day shall be subject to the announcement made by JEX platform.
Three. Principle of redemption
- The product shall be redeemed by portfolio, i.e. applied for redemption by portfolio.
- The considerations of product redemption shall include portfolio, cash equivalent, and the difference in cash and other kinds of considerations.
No withdrawal of an application shall be allowed after submission.
The product administrator may make an adjustment on the above principles under the applicable laws, rules, and regulations.
Four. Procedure of redemption
1.Method of application for the purchase and the redemption
The application must be submitted in the opening date by the investor according to the procedure made by JEX platform.
At the time of applying for redemption, the investor must have sufficient balance of portfolio and cash, otherwise, the submitted application may become invalid.
2.Confirmation of redemption application
The confirmation of redemption application from product investor shall be made in T+1 days.
For the redemption application submitted by the investor, the JEX platform shall freeze the portfolios in the corresponding accounts of the investor according to the redemption application submitted by the investor and the announced redemption list for T day by the product administrator. In T+1 day, the product administrator shall deduct corresponding portfolio held by the product investor and make blockchain assets transfer to the blockchain address designated by the investor.
In case of abnormal fluctuation or the huge volume of redemption, JEX platform shall be entitled to make a temporary adjustment on the confirming time of redemption and the specific time shall be subject to the announcement made by the JEX platform.
Five. Limitation of the redemption
- The redemption made by the investor must be the integral multiples of the minimum redemption unit, which shall be determined by the product administrator according to the market situation and made public on the JEX platform in the form of announcement.
The product administrator may make adjustment on the above-mentioned limit on the volumes and percentage according to the market situation.
Six. Considerations and expenses of redemption
- The considerations of the redemption shall be determined according to the redemption list and portfolio volume to be redeemed by the investor. The consideration of redemption means the portfolio which the products administrator shall deliver to the person who made such redemption at the time of redemption of the portfolio by the investor.
- The redemption list shall be prepared by the product administrator and shall be released in the form of announcement on the JEX platform.
- JEX will charge to the investor the commissions as per certain level for the redemption of portfolio and the details thereof shall be subject to the announcement made on the JEX platform.
Seven. Rejection or suspending of redemption
In the event of any following situations, the product administrator may reject or suspend the acceptance of redemption application submitted by the investor:
- The product is unable to be operated in the normal way due to Force Majeure;
- Abnormal shutdown of exchange relating to the product at the trading time.
- The unavailable transaction/withdrawal of deposit due to the abnormal situation of relevant exchange, or impossible preparation or improper preparation of redemption list due to the abnormal situation of product administrator. The above abnormal situations mean the unforeseeable events beyond control of product administrator including, but not limited to, system failure, network failure, communication failure, power failure or data errors, etc.
- The acceptance of one or more than one applications may affect or impair the interests of existing holders of portfolio.
The product administrator is unable to find proper investment product due to a large scale of product assets, or there is a potential negative impact on product performance which resulted in the situation impairing the interests of present holders of portfolio.
- Other situations, under which the JEX platform considered it is necessary to reject /suspend the redemption.
Eight. JEX platform shall be entitled to make supplement and adjustment on the above arrangement for redemption according to market situations and make the announcement accordingly.
Part V. Liabilities of breaches
One. In the course of performing its respective obligations, if the product administrator violated the provisions of the agreement that impairs the interest of holder(s) of portfolio, the product administrator shall assume the liabilities of compensation, which is limited to the direct losses only. However, the party may be released from the liabilities in the following situations:
- The losses caused by the action or omission of the product administrator and /or product custodian according to the then applicable laws, rules and regulations;
- The losses caused by the exercise or non-exercise of investment right by the products administrator according to the provisions of the agreement;
The event of force majeure.
Two. In the event of breaches by one party or more parties, the agreement shall be fulfilled continuously in the extent of availability provided the present interests of the holders of portfolio shall be protected in the maximum extent. The non-defaulting party shall be obliged to take necessary measures in time under its responsibilities to avoid the expansion of the losses. No claims shall be allowed for such expanded looses without taking proper preventive measures.
Three. For the errors appeared in the transaction due to the factors beyond control of products administrator and product custodian, the product administrator and product custodian shall be exempted from the liabilities of indemnity for the losses of product assets or the investors if products administrator and product custodian have taken necessary, proper and reasonable measures in the examination and failed to find the errors. However, products administrator and product custodian shall take proactive measures to eliminate or mitigate the impact caused thereby.
Part VI Settlement of dispute and applicable law
It is agreed that all the disputes arising out of, or in relation with, the agreement shall be submitted to Seychelles economic Arbitration Commission for arbitration according to its prevailing arbitration rules than if it is failed to be settled through amicable consultation.
All other matters which are silent herein shall be settled through amicable consultation between parties hereto.