1.1 Futures trading is a new servicelaunched by OKEX (a Singapore register company), and is managed andmaintained via OKEX’s online trading platform. 1.2 When trading futures on OKEX, allusers shall comply with relevant laws and OKEX’s terms of service, as well asthe Futures trading rules.
2.1 Futures contracts are priced in US dollar terms, and traded interms of Bitcoin (BTC) or Litecoin (LTC), and any otherdigital currencies that may be accepted by OKEX in the future.
2.2 The par value of a contract is US$100. The smallest unit ofquotation is US$0.01.
2.3 Contract types include weekly, fortnightly and monthly. Weeklycontracts will be settled on the coming Friday relative to the current day.Fortnightly contracts will be settled on the second Friday relevant to thecurrent day. Monthly contracts will be settled on the last Friday of thecurrent month. If the last Friday of the month is same due date as a weekly orfortnightly contract, then the monthly settlement date will be the last Fridayof the following month.
2.4 Settlement time will be at 16:00 Eastern Standard Time (08:00UTC) on the due date. All open positions will be closed according to thesettlement price. The settlement price will be calculated using the arithmeticaverage of the price index of the last hour before closing.New contracts will commence trading at 08:30 UTC (16:30 CST) on settlement day.
2.5 If market anomalies are found before or after settlement and delivery, which results in wide fluctuation of futures index or abnormal clawback rate, we may postpone settlement and delivery as the case may be. We shall post an announcement regarding detailed rules.
3. Trading Rules
3.1 Orders can be placed using OKEX’s online web platform,TradeStation PC Client, API, or any other method that is accepted by OKEX The order will include price, amount, direction, position, as well asother content required by OKEX.
3.2 Once an order has been processed, the user will have thecorresponding futures position. Whilst a position is still open, the user willexperience unrealized gains and losses. Unrealized gains and losses can be usedas margin, but cannot be withdrawn.Unrealized gains and losses:Long position: (100/ average open positons – 100/currentprice)*Number of contractsShort position: (100/current price – 100/average openposition)*Number of contracts.
3.3 When a position is successfully closed, the correspondingposition will be removed from the user’s holding positions. Unrealized gainsand losses will subsequently be realized. Realized gains and losses can be usedas margin, but can only be withdrawn upon settlement.Realized gains and losses:Long position: (100/ average open positons – 100/currentprice)*Number of contractsShort position: (100/current price – 100/average openposition)*Number of contracts.
3.4 On the delivery date, thecontract will be settled at 16:00 Eastern Standard Time (08:00 UTC). All open positionswill be closed at the settlement price, and all unrealized gains and losseswill be realized. The realized gain and loss will be transferred into youraccount. This account balance can be used to open further futures contracts, orbe withdrawn.
3.5 If market anomalies are found before or after settlement and delivery, which results in wide fluctuation of futures index or abnormal clawback rate, we may postpone settlement and delivery as the case may be. We shall post an announcement regarding detailed rules.
4. Risk Management Rules
4.1 Account equity is the totalcurrent assets belonging to the user. It is equal to the account balance +unrealised gains and losses + realized gains and losses. Only the accountbalance can be withdrawn.
4.2 When a user holds a position, the required margin is calculatedas:(100 / latest contract price / leverage ratio)*total value of thecontractThe total margin will be equal to the cumulative amount of marginrequired for each contract.
4.3 When a user opens a position, the required margin is calculatedas:(100 /open price / leverage ratio)*number of contracts.If the opening position price is higher than the latest price, theorder will be opened at the latest price.
4.4 The total margin required for auser account is equal to holding margin + opening margin.
4.5 The margin ratio of a customer’s account is equal to (Accountequity / total margin) – 0.1.
4.6 When opening a contract,customers need to maintain a margin rate above 90%. If the opening of a newcontract will result in the margin rate being lower than 90%, the order will berefused.
4.7 When the margin rate falls below0%, all current positions will be automatically liquidated. All positions willbe closed at a price that will result in the customer account equity balancebeing zero. If the forced closed price is higher than the order price, theequity balance will be refunded back to the users account. If not all positionscannot be closed immediately, the unclosed positions will be placed in awaiting list until they can be closed at a forced price.
4.8 If there are pending forcedclosed orders at delivery time, such open positions will be closed at thedelivery price. The associated loss occurred will be credited into the contractgains & losses and will be deducted from the previous gains of thiscontract.
5.1 Users who trade in Futures shallcomply with the principles of fairness and impartiality.
5.2 OKEX reserves theright to enact executive control over accounts if malicious price manipulationor any other malicious wrongdoing occurs. If required, OKEX reserves the right to close accounts, limit trading, halt trading, canceltransactions, and rollback transactions to eliminate any adverse effects in theFutures market.
5.3 If the size of a customers’ position or open orders accumulate to a level which poses a clawback threat to the futures trading system or other users, OKEX may request to cancel your orders or close part of your position. As a final measure, OKEX reserves the right to limit or partially cancel the position or orders to reduce the risk in the system. 5.4 OKEX will not be responsiblefor any losses occurred due to internet network malfunctions, system failures, hacking attacks and force majeure: war, riots, floods, earthquakes or any other unexpected disruptions.
5.4 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.
5.5 OKEX strictly prohibits unfair trading behaviour, including but not limited to exploitation of loopholes and malicious abuse through large or continuous commissions with the goal of manipulating price and volume. 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.
5.6 OKEX reserves theright to add, remove or modify any of the above rules at any time. Any suchchanges to the rules or product designs shall be made known in advance through OKEX’s website,the rules will be changed by the newest announcement .