XREX Crypto Loans and Margin Trading Service Agreement

Last Updated: January 11, 2024

The terms and conditions herein (the "Terms") govern your use of the Crypto Loan and Margin Trading services (collectively referred to as the "Service") offered by our platform (the "Platform"). The Service features the new transaction natures of collateral assets and loans. Market price fluctuations may cause significant losses, making the Service suitable for users with trading experience, such as those adopting aggressive or diverse strategies. When participating in Margin Trading, you should exercise high caution and only engage in such transactions when you clearly understand the operational mechanism of Margin Trading and can withstand the related risks (including but not limited to the forced liquidation of collateral assets and market price fluctuation risks, etc.). You should carefully consider whether your risk preference, financial capacity, and economic status are suitable for such transactions. Before using the Service, you agree to be bound by these Terms:

1. Eligibility

You must be an XREX account member under XREX General Terms and Conditions and capable of entering into legally binding contracts to access or use our Service.

2. Services

The Service allows you to borrow crypto assets (the "Borrowed Assets") and to participate in Margin Trading. 2.1 Crypto Loans You may borrow assets from the Platform. The Borrowed Assets are not sold and you may withdraw them immediately. The Loan-to-Value (LTV) ratio, which is the ratio of your liability to the value of the assets, is used to assess your eligibility for a loan and to determine the risk level of the loan. When your LTV ratio reaches a certain threshold, it may trigger a forced liquidation of your collateral.

2.2 Margin Trading Margin Trading at XREX is conducted by the isolated margin. Each Margin Trading transaction is independent of another. When initiating a Margin Trading, you are provided with an amount by XREX, allowing you to amplify your trading position. The Margin Level, a ratio of the value of your assets to your liability, is used to manage the risks associated with Margin Trading. When your Margin Level falls below a certain threshold, it may trigger a forced liquidation of your collateral.

3. Collateral

Both Crypto Loans and Margin Trading require you to deposit collateral assets (the "Collateral") on the Platform.

4. Forced Liquidation

Suppose the LTV ratio for Crypto Loans or the Margin Level for Margin Trading drops below the specified thresholds. In that case, the Platform may initiate a forced liquidation of the Collateral to repay users' debt in the following sequence: fees, margin costs, loan costs, and the principal.

5. Margin Cost and Loan Cost

The margin cost of Margin Trading and the loan cost of the Crypto Loans are calculated and may change on an hourly basis, depending on market conditions and other factors at our sole discretion. The Platform will display the current margin cost and loan cost on its app, website, or both.

6. Repayment

You must repay the Borrowed Assets, any accumulated margin cost, loan cost, and fees before you close your Crypto Loans or Margin Trading positions. Failure to do so could result in additional fees and penalties. If your debt remains unpaid after forced liquidation during drastic market fluctuations, the Platform has the right to exercise a lien, restricting you from withdrawing other assets until all due fees, margin costs, loan costs, and principal have been repaid.

7. Risk Disclosure

Trading activities in crypto assets are highly risky. You acknowledge and agree that you shall access and use the Service at your own risk, including but not limited to:

7.1 When the market goes against your Margin Trading position, we may inform you of upcoming liquidation so that you can maintain your Margin Level. Please note that you may lose up to all your collateral assets when the market fluctuates and may be liable for any deficiency when your loss is more than your collateral assets. 7.2 You understand and agree that even if you initiate a deposit to increase your collateral asset before the deadline, your position may still be liquidated if such deposit is not completed in time. You should account for extra time, considering that our compliance with government regulations and security policies may lead to unexpected pauses or suspensions of your deposits or withdrawals. 7.3 In addition to the price of your targeted assets for Margin Trading transactions, the price of your collateral assets may drop so you have to increase your collateral assets to avoid liquidation. Such fluctuation may cause more loss than you expected. Your Margin position(s) may be subject to forced liquidation due to the volatility of the Margin Trading market. Please read and accept the most recent information on forced liquidation in the XREX Help Center before proceeding with your Margin Trading.

8. Disclaimer of Warranties and Limitation of Liability

8.1 This Platform, the Service, and all information, content, materials, and other services provided to you or obtained through this Platform are provided on an "as is" and "as available" basis. The service provider does not make any explicit or implied warranties regarding the merchantability, suitability for a specific purpose, ownership, and non-infringement of the Service. 8.2 This Platform does not guarantee that the Service will always be error-free or uninterrupted, nor does it guarantee the accuracy, reliability, or quality of any product, Service, information, or other materials you obtain while using the Service. 8.3 To the extent permitted by law, this Platform does not bear any responsibility for any direct, indirect, incidental, special, consequential, or punitive damages (including but not limited to loss of profits, interruption of business, loss of information, or other economic losses) resulting from the use or inability to use the Service. 8.4 This Platform is not liable for any damages caused by the Service, regardless of whether it is based on warranty, contract, tort, or other legal theory, and regardless of whether the Platform has been informed of the possibility of such damage.

9. Return and Use of Collateral

Given the fungible nature of your Collateral, you acknowledge and agree that the Platform may utilize the Collateral in any way it sees fit during the loan term, including but not limited to selling or lending it to a third party, without further notice. The Platform will calculate the equivalent value of the Collateral at the time of repayment completion. The Platform shall then have one (1) day to complete the return of the equivalent value of the Collateral, either in the same assets or its market value in fiat or stablecoins, to you. The determination of the method of return and the type of assets to be returned is at the sole discretion of the Platform.

10. Termination

XREX reserves the right to modify the Terms and to terminate the Service at any time after appropriate notification.