TERMS OF BUSINESS

FIAT, Virtual Currencies, Tokens and CFD Trade

An off-the-shelf solution allowing the launch of a new trading platform from scratch.

Automated purchase/sale of virtual currencies, tokens, as well as purchase and sale for fiat money and CFD trading on virtual currencies.

MARGIN ACCOUNTS

TOB MA 2018 / 01

 

These Terms of Business (the “TOB”) form an integral part of the Customers Agreement and govern all transactions with regard to the processing and execution of Customer's orders on the Margin Accounts within the Exchange Platform between Kinetic Revolution Ltd (hereinafter referred to as "Company" or “we”) and the any individual or legal entity or other corporate body (hereinafter referred to as "Customer" or “You”) who has completed the application to open a Margin Account.

 

Your consent acknowledges that You have carefully read, in its entirety, and understood these Terms of

Business and Customer Agreement, and that You agree to all of the provisions contained therein.

 

CONTENTS

 

  1. 1. INTRODUCTION ........................................................................................................................................

 

  1. 2. COMMON TERMS .....................................................................................................................................

 

  1. 3. OPENING A POSITION .............................................................................................................................

 

  1. 4. CLOSING A POSITION .............................................................................................................................

 

  1. 5. ORDERS ....................................................................................................................................................

 

  1. 6. STOP OUT .................................................................................................................................................

 

  1. 7. COMMUNICATIONS ..................................................................................................................................

 

  1. 8. DISPUTE RESOLUTION ...........................................................................................................................

 

  1. 1. INTRODUCTION

 

1.1.      These Terms of Business govern all actions with regard to the processing and execution of Customer's

Requests and Instructions

 

1.2.      These Terms of Business and the Customer Agreement should be read thoroughly by the Customer.

 

1.3.      These Terms of Business identify:

 

1.3.1.All actions related to Orders under Normal and Abnormal Market Conditions;

 

1.3.2.Dispute resolutions.

 

  1. 2. COMMON TERMS

 

2.1.      The Exchange Platform Margin Accounts is a software technology designed for trading derivatives. It allows the Customer to place an order to buy or sell a certain amount of margined cryptocurrency derivatives at the rates specified by the Company.

 

2.2.      Each Customer can hold only one eWallet with the Company. The number of Margin Accounts is not limited.

 

Execution of the Customer's Requests and Instructions

 

2.3.      The Company executes trading orders of the Customers at the ECN/STP trading system by a technology that automatically matches buy and sell orders of incoming prices generated by all counterparties including Customers and Liquidity Providers, i.e. all Customers participate in ECN/STP trading system as price-takers as well as price-givers.

 

2.4.      The amount of time needed to execute a Request depends on the quality of the connection.

 

2.5.      The Company may decline/delete all types of Request and/or Instruction, including among other under the circumstances listed below:

 

2.5.1.The Customer has insufficient Free Margin;

 

2.5.2.The Request proceeds the Market Opening time;

 

2.5.3.The slippage control has been applied.

 

In this case the “Off quotes” or “Cancelled by dealer” or “Not enough money” message will appear.

 

2.6.      Trading operations are conducted in pursuance of "Market Execution". Execution occurs immediately at the available volume and market execution prices can differ from the currently displayed quote.

 

Transactions

 

2.7.      The Ask price is used for a "buy" Transaction. The Bid price is used for a "sell" Transaction.

 

Rollovers (SWAP)

 

2.8.      All positions (depending on Account Type) which are remaining open at 23:59:30 Trading Platform

Time (Server Time) are subject to rollover.

 

2.9.      The SWAP is calculated and added to or deducted from the Customer’s Margin Account within the time period between 23:59:00 and 00:05:00. The exact time will be selected by the Company on its sole discretion.

 

Spreads

 

2.10.    Difference between the best ASK and the BID - (Difference between Ask and Bid -DAB) is variable and not fixed.

 

2.11.    Exceptions:

 

2.11.1. Under Abnormal Market Conditions exceptions may occur;

 

2.11.2. The Company may change trading conditions if all Customers are given two calendar days prior Written Notice.

 

Leverage

 

2.12.    The Leverage size is 1:3 by default. The Company may offer different Leverage sizes depending on the factors as specified by the Company in its sole discretion including the amount of the Account deposit.

 

2.13.    The Company has the right to change the Leverage for a Margin Account without giving prior notice in accordance with margin requirements for another Account Type.

 

2.14.    The Company at its sole discretion may decrease the Leverage of a particular Customer at any time.

 

Price Quotation

 

2.15.    In order to open or close a position without using an Expert Advisor, the Customer should press the "Buy", "Sell" or "Close" button while the prices in the Quotes Flow are satisfactory. In case the Customer is using an Advisor, the Instruction must be generated at the current Quote.

 

2.16.    All orders that are currently in the market are displayed in Quote Flow window of the Market depth monitoring application. Market depth level 2 includes the following additional information:

 

  • Highest Bid prices: the highest prices that traders are willing to accept to sell;
  • Bid Volumes: the amount in Millions that are available at each of the highest Bid prices.
  • Lowest Ask prices: the lowest prices that traders are willing to accept to buy.
  • Ask Volumes: the amount in Millions that are available at each of the lowest Ask prices.

 

The number of market depth “levels” displaying the lowest Ask and the highest Bid prices is specified at the

Company’s website.

 

Inactive Accounts

 

2.17.    If there are no trading activity and/or balance transactions on the Margin Account (no deposits to/withdrawals from the Margin Account) for any period of 90 (ninety) days, and there is no current open positions on this Margin Account, then after those 90 days the Account will be deemed 'Inactive' ("Dormant").

 

2.18.    Dormant accounts are charged with the Inactive Account Fee in the per month amount as additionally specified at the Company’s Website. The Inactive Account Fee shall be automatically deducted from the balance of the Dormant Account. Should the balance be zero or negative the Company will place the Dormant account to the archive.

 

2.19.    Dormant Account can be re-activated on Customer’s request. Re-activation shall be subject to the Re-

activation Fee in the amount as additionally specified at the Company’s Website.

 

  1. 3. OPENING A POSITION

 

3.1.      To open a position, the Customer should identify the following:

 

  • Financial instrument;
  • Transaction Volume.

 

3.2.      If Free Margin is greater than the Initial (Necessary) Margin to open a New Position the position will be opened.

 

3.2.1.Free Margin is calculated as follows: Free Margin = Balance + Floating – Initial Margin.

 

3.2.2.Initial (Necessary) Margin for New Position is calculated: for the Hedged Positions depending on the Hedged Margin, for other positions depending on the Initial Margin.

 

3.2.3.Floating is calculated: for all Open Positions and the New Position are calculated at the Current

Quotes.

 

3.3.      Initial margin for Pending orders shall be calculated at the moment when Pending Order is established by the Customer according to the current market conditions.

 

3.4.      Each Open Position has its own Order Number in the Exchange Platform.

 

3.5.      Open positions are conducted in pursuance of "Market Execution" clause 2.6.

 

  1. 4. CLOSING A POSITION

 

4.1.      To close a position, the Customer should identify the following:

 

  • Financial Instrument;
  • Transaction Volume.

 

4.2.      A Request to close a position will be declined if it is made when the Stop Loss or the Take Profit for this position is in the queue in order to be executed. In this case the "Off quotes" message appears in the Client Terminal window.

 

4.3.      Close positions are conducted in pursuance of "Market Execution" clause 2.5.

 

  1. 5. ORDERS

 

5.1.      To open a position the following Pending Orders may be used:

 

  • "Buy stop" - to open a Long Position at the price higher than the current price;
  • "Sell stop" - to open a Short Position at the price lower than the current price;
  • "Buy Limit" - to open a Long Position at the price lower than the current price;
  • "Sell Limit" - to open a Short Position at the price higher than the current price.

 

5.2.      In order to close a position the following Orders may be used:

 

  • "Stop Loss" -set to close an opened position at the price less profitable than the current price;
  • "Take Profit"- to close an opened position at the price profitable than the current price.

 

5.3.      The difference between the Stop Loss, Take Profit or the Pending Order level and the current market price has no limitations and could be zero.

 

5.4.      The Customer may place, modify or delete Orders only within Trading session which depends on respective Exchanges trading sessions.

 

5.5.      The Company has the right to decline a Request to modify or delete an Order if it is being processed

- the Order has been placed in the queue in order to be executed.

 

5.6.      The Order is placed in the queue in order to be executed in the following cases:

 

  • The Take Profit on open Long Position is placed in the queue in order to be executed if the Bid price in the Quotes Flow becomes equal or higher than the Order Level;
  • The Stop Loss on open Long Position is placed in the queue in order to be executed if the Bid price in the Quotes Flow becomes equal or lower than the Order Level;
  • The Take Profit on open Short Position is placed in the queue in order to be executed if the Ask price in the Quotes Flow becomes equal or lower than the Order Level;

 

  • The Stop Loss on open Short Position is placed in the queue in order to be executed if the Ask price in the Quotes Flow becomes equal or higher than the Order Level;
  • The Buy Limit is placed in the queue in order to be executed if the Ask price in the Quotes Flo w becomes equal or lower than the Order Level;
  • The Sell Limit is placed in the queue in order to be executed if the Bid price in the Quotes Flo w becomes equal or higher than the Order Level;
  • The Buy Stop is placed in the queue in order to  be executed if the Ask  price in the Quotes Flow becomes equal or higher than the Order Level;
  • The Sell Stop is placed in the queue in order to  be executed  if the Bid price  in the Quotes  Flow becomes equal or lower than the Order Level.

 

5.7.      Once the Pending Order is established by the Customer, the Server automatically checks if the Free Margin is sufficient to open the position according to clause 3.2. If the above mentioned calculations for the new position have been done and:

 

  • "Free Margin"(after the order has been executed) is more or equals to zero, the position is opened;
  • "Free Margin" (after the order has been executed) is less than zero the Company has the right to make a credit to the Margin Account (Credit In) and just after Pending Order will be executed to withdrawal all amount of credit (Credit Out).
  • The process of opening the position is followed by the relevant record in the Server Log File and the position opened by this Order has the same Ticker as the Pending Order;

 

5.8.      Buy Limit, Sell Limit and Take Profit are executed at the order level or better. A Buy limit order can only be executed at the limit price or lower, and a Sell limit order can only be executed at the limit price or higher, and a Take Profit order can only be executed at the order price or better (for long position at the order price or higher, and for short position at the order price or lower). During periods of high volatility or low liquidity Limit Orders and Take Profit Orders could be partially executed - meaning that positions would open all size available as it becomes available resulting in multiple positions versus one whole position.

 

5.9.      Buy Stop, Sell Stop and Stop Loss are executed at the level at the current market price similar with Market Order execution according to clause 2.5. The price when Sell Stop or Buy Stop Order or stop Loss Order is executed may not always be the price was set up.

 

 

  1. 6. STOP OUT

 

6.1.      The Company is entitled to close the Customer's Open Positions without the consent of the Customer or any prior notice if the Equity is less than the particular level in percent of the (Initial) Necessary Margin as additionally specified at the Company’s Website.

 

6.2.      If the Customer has several Open Positions, Company has right to close all open positions or the first position with the highest Floating Loss or closing open positions by FIFO (First In, First Out) method.

 

6.3.      If a Stop Out execution has resulted in a negative Balance of the Customer's Margin Account, the Customer remains fully liable for this loss. The Company shall be entitled to recover the incurred loss as well as all associated charges, costs or expenses, including attorneys' fees, through legal proceeding or otherwise as Company in its sole and absolute discretion may determine. The Customer also hereby authorizes Company to withdraw the amount of such loss from the Customer's e-wallet, Account(s) if Company deems it appropriate.

 

6.4.      Stop Out is executed similar like stop Loss Order (see the Clause 5.9).

 

  1. 7. COMMUNICATIONS

 

7.1.      In order to communicate with the Customer, the Company may use:

 

  • Exchange Platform internal mail;
  • E-mail;
  • Fax;
  • Telephone;
  • Post;
  • Company Webpage News Section;

 

7.2.      All the Company’s notifications to the Customer referring to Dispute resolutions shall be made on the Customer’s registered e-mail indicated by the Customer during the account opening process or via Exchange Platform internal mail. The Customer is considered to be duly informed immediately upon sending the notification by the Company. The Company’s Exchange Platform Server log files are sufficient and indisputable evidence of notification send.

 

7.3.      The following Instructions are accepted only through Exchange Platform:

 

  • To place an Order;
  • To delete (cancel) or modify an Order.

 

7.4.      Any telephone conversation between the Customer and the Company may be recorded.

 

  1. 8. DISPUTE RESOLUTION

 

8.1.      If any conflict situation arises when the Customer reasonably believes that the Company, as a result of any action or failure to act, breaches one or more terms of these Terms of Business, the Customer has the right to file a complaint with the Company within one Business Day after the grievance has arisen.

 

8.2.      Any complaints or disputes relating to operation of the Cash Account (issues concerning orders execution, deposit and/or withdrawal of funds and similar – collectively “Complaints”) must be made via electronic mail to the following address:  compliance@kineticex.com

 

8.3.      A complaint shall include:

 

  • Full name of the Customer;
  • Customer's login;
  • Order(s) number(s);
  • Details of the conflict;
  • Description of the conflict situation supported by screenshots.

 

8.4.      If the Exchange Platform Log-File has not recorded the relevant information to which the Customer refers, the argument based on this reference may not be considered.

 

8.5.      The Company will resolve all Disputes considering the nature of the Dispute.

 

8.6.      The Company has the right to choose the method of Dispute resolution at its sole discretion.

 

8.7.      Both the Company and the Customer have the right to initiate the process of Dispute resolution.

 

8.8.      No complaints are accepted if the Customer is not able to place or modify any Order:

 

8.8.1.Because the Internet connection is poor either on the side of the Customer or the Company or both;

 

8.8.2.As a result of the failure of the Exchange Platform software/hardware and the Exchange Platform

Log-File has no record to prove that Customer sent instruction;

 

8.8.3.For other reasons specified in Company’s Complaints Policy.

 

8.9.      During the Dispute process, the Customer acknowledges that no changes may be made on the order(s) that are being investigated.

 

8.10.    Unless expressly set forth otherwise by an applicable law and/or regulation, the Company’s decision

with respect to a Complaint shall be final and binding and shall not be subject to any appeal.