Except as otherwise provided in the context, in this Agreement, the definitions of the following words are as follows:
1.1 This Agreement means with respect to Dual Currency Product Agreement, and all clauses, details and information in its annexes.
1.2 Party A means CITEX trading platform, a leading digital asset trading platform in the world, of which the mission is to discover high-quality assets and facilitate circulation to create more value.
1.3 Party B means registered users who join “Dual Currency Product” on CITEX trading platform.
1.4 Expected Annualized Rate of Return means the highest annualized rate of return that is expected to be achieved based on the yields in the past cycles.
1.5 The Settlement Price refers to the average of the Settlement Index from 15: 30 to 16: 00(UTC+8) on Expiry Date.
1.6 The Settlement Index takes fully account of the BTC-USD prices of 7 leading exchanges (Bitstamp, Bittrex, Coinbase Pro, Gemini, Kraken, Itbit, LMAX Digital)
1.7 Target Price is the price of the invested currency agreed by both parties through the ordering system. The settlement currency is selected by comparing the invested currency’s target price and settlement price.
1.8 Settlement Formula is the formula agreed by both parties through the ordering system to decide the amount and type of the settlement currency received by the Client on the maturity date.
1.9 Settlement Currency will be decided by the comparison result of the invested currency’s settlement price and the target price, based on the settlement formula,.
2. Description of Dual Currency Product
Dual Currency is a floating income financial product. The yield of the product is fixed definitively at the time of purchase, whereas the settlement currency is uncertain. When the product is held to maturity, the settlement currency will depend on the comparison between the settlement price at maturity and the target price.
Dual Currency is a short-term investment product that allows you to obtain potentially higher returns. Here we provide products with a holding period that ranges from a couple of days to several months to meet the varying needs of different users for liquidity and risk.
CITEX Trading Platform provides you with Dual Currency Product in one type or multiple types of currencies. You are free to choose the investment amount in the Dual Currency Product. Once the platform confirms your order (“Purchase Order”), it will deduct the related amount from your CITEX account. When the product matures, you will receive the settlement amount (paid in settlement currency), which is calculated based on the agreed settlement formula through the ordering system. The following case is provided by the CITEX trading platform to show the mechanism of Dual Currency Product:
At 7:00 on March 27, 2020, Alice purchased one BTC of the Dual Currency Product with a yield of 2% and the target price pegged at 12,000. The received payment will be settled at 16:00 on the maturity date of March 28, 2020.
The product matures at 16:00 on March 28, 2020, and will be subject to the settlement price as follows:
If the BTC/USDT settlement price is less than 12,000 USDT, Alice will obtain a 2% BTC-denominated gain. In other words, the received payment will be 1*(1+2%) BTC or 1.02 BTC.
If the BTC/USDT settlement price is higher than or equal to 12,000 USDT, Alice will obtain a 2% USDT-denominated gain. In other words, the received payment will be 1*12,000*(1+2%) USDT or 12,240 USDT.
3. Provisions About the Dual CurrencyProduct
You can visit the online ordering system specially provided by the platform (“ordering system”)，to confirm the purchase of the Dual Currency Product. The access and use of the ordering system shall obey the clauses of this Agreement and any other policies and procedures announced by the platform from time to time.
4. Other Clauses
Key Risk Factors and the Disclaimer
4.1 Non-deposit Investment Product
Dual Currency Product under this Agreement is not the same as deposit products. Hence, it should not be treated by the Client as a substitute or alternative for normal savings or deposits.
4.2 Market Risks
Virtual currencies have always been subject to a huge price fluctuation. The total amount of return from Dual Currency Product may be considerably less than returns or interests from other investments. During virtual currency market failures, the market value of settlement amount which you receive on the maturity day (paid in settlement currency) may be significantly lower than that of your investment amount.
4.3 Liquidity Risks
As soon as the Client has invested in one type of Dual Currency Product, any withdrawal prior to maturity or early termination are not allowed.
4.4 No Warranty
The ordering system is provided “as is” and “as available”, without warranties of any kind. The Company expressly disclaims all warranties of any kind, whether explicit or implicit, including but not limited to warranties of free of defects, merchantability, fitness for particular purpose, non-infringement, non-interrupts of the ordering system, error free, or no harmful content and the Company does not warrant that the information provided by you will not be lost or damaged. You are solely and entirely responsible for any risks in quality and performance of the ordering system, except that the risks are due to the willful misconduct of the Company. This disclaimer is to be regarded as an integral part. Except as otherwise permitted in this Agreement, no other right is granted with respect to the use of the ordering system.
This Agreement shall enter into force upon signature and is legally binding to both parties at any time.
4.6 Force Majeure Event
If any force majeure event occurs and causes the platform unable to perform its obligations under this Agreement, the platform shall be indemnified to the fullest extent against any damages or liabilities incurred to you due to the force majeure event.
5. Governing Law and Jurisdiction
5.1 Governing Law. All things or matters, including without limitation the validity, interpretation, fulfilment and dispute resolution of this Agreement are governed by the laws of the incorporation place of the CITEX platform; any clause that is incompatible with the peremptory norms shall be interpreted and implemented to its maximum extent on condition that it is not prohibited by the peremptory norms, and the validity of other Clauses of this Agreement shall not be affected if the above-mentioned Clause is incompatible with the peremptory norms.
5.2 Dispute Resolution. In the event of any dispute between the Parties, regardless of the large or small sums of disputed capital, the Parties shall submit the dispute to local arbitration committee of the CITEX platform. The decision of the arbitrator shall be final and binding to both parties.
5.3 During arbitration, both parties shall still fulfil undisputed clauses of this Agreement. None of the obligations under this Agreement shall be refused to perform by the Parties on the grounds of dispute resolution.
6. Other Items
6.1 Party A and Party B sign this Agreement and its related documents by means including but not limited to written signatures, stamp, clicking, ticking the checkbox, electronic signatures, or data message etc. Neither Party A nor Party B may deny the legal effect of this Agreement on grounds that the signing methods are different.
6.2 This Agreement becomes effective after it is signed by the Parties or consented by Party B, and it will terminate after both parties have fulfilled their obligations according to the Agreement. Party A is entrusted by Party A to keep safe all the written documents or data messages related to this Agreement.
This Dual Currency Product is an investment product that involves derivatives. It is not an ordinary deposit product that protects both principal and interest. As virtual currencies may have drastic price fluctuations, the settlement amount (the currency paid in settlement) received by the Client on the maturity day may deviate from the price level of the principal. Therefore, before deciding to invest in Dual Currency Product, you should carefully evaluate your investment experience, scope of investments, financial situation, readiness and capability to take risks, and your knowledge about the product attributes and risks. If you are in any doubt, please seek advice from independent financial adviser.
This announcement is for reference only. Please note that any information is subject to change without notice.