In order to open an account to trade KKcoin Perpetual Contracts, users are required to agree to the terms of the 《KKcoin Perpetual Contracts - User Agreement》. Users are strongly advised to read carefully and fully understand the terms and conditions, especially clauses regarding exemption and/or limitation of liability, and select the agree or disagree options accordingly.
Users are not authorized to trade Perpetual Contracts and other related services prior to reading and accepting the terms of this Agreement. Any actions undertaken with respect to Perpetual Contracts by the User, including but not limited to, logging in, browsing, posting of information etc. will deem that the User has read and agreed to terms and conditions of this Agreement.
1.1 Perpetual Contract is an original cryptocurrency derivative launched by KKcoin, pioneered and managed fully by our internal teams. It allows for margin trading (i.e. leverage) referencing spot index prices where traders are able to close their position on a same-day basis or choose to extend. It will give users a new trading experience.
1.2 The User guarantees that, by accepting to terms of this Agreement and registering on the platform, the User is at least 18 years of age; the content of this Agreement is subject to, and is compliant with, relevant laws and regulations of the User’s country/jurisdiction; User complies with trading rules of the KKcoin platform and KKcoin’s Perpetual Contracts. If any of these conditions are not met, User shall terminate registration and stop using this service immediately.
2.1 The KKcoin platform adheres to principles of openness, fairness and impartiality where order execution is prioritized according to price and time. Prices of Perpetual Contracts are listed according to buyer/seller quotes in an open market, with reference to BTC, ETH and other KKcoin approved cryptocurrencies as underlying assets. All prices are reflected in USD. Minimum trade amount per order is 1 Lot, minimum price movement is 0.01 USD, and transaction fee is 0.1%. KKcoin reserves the right to adjust parameters in accordance to market movements and risks. Such adjustments will be announced via official KKcoin channels.
2.2 Types of Perpetual Contracts
BTC Perpetual Contracts:
BTC001 - Lot size is 0.01 BTC, 10% Margin requirement (10x leverage), Single trade limit is 2500 Lots, Total position limit is 10000 Lots;
BTC01 - Lot size is 0.1 BTC, 10% Margin requirement (10x leverage), Single trade limit is 250 Lots, Total position limit is 1000 Lots;
BTC1 - Lot size is 1 BTC, 5% Margin requirement (20x leverage), Single trade limit is 50 Lots, Total position limit is 200 Lots;
ETH Perpetual Contracts:
ETH001 - Lot size is 0.01 ETH, 10% Margin requirement (10x leverage), Single trade limit is 5000 Lots, Total position limit is 20000 Lots;
ETH1 - Lot size is 1 ETH, 10% Margin requirement (10x leverage), Single trade limit is 500 Lots, Total position limit is 2000 Lots;
ETH10 - Lot size is 10 ETH, 5% Margin requirement (20x leverage), Single trade limit is 100 Lots, Total position limit is 400 Lots;
2.3 Perpetual Contracts trading is open 24 hours a day from Monday to Sunday, except the dates that KKcoin announces to close trading.
3.1 Users can place orders via our website, APIs and/or other KKcoin official channels. Order information includes order price, order amount, long/short position, liquidation etc. per individual requirements. KKcoin will provide the available position size (in Lots) based on Available Margin of your account, and respective amount of Margin will be locked upon successful order placements, per the following formulas:
Account Equity = Transfers in – Transfers out – Transaction fees + Realized Profit/Loss + Intraday Profit/Loss
Available Margin = Account Equity – Used Margin – Locked Margin – Locked Transaction fees;
Locked Asset = Locked Margin + Locked Transaction fees;
Locked Margin = Order price * pending Lots * Lot size * Margin Rate%;
Locked Transaction fees = Order price * pending Lots * Lot size * Transaction fee%;
Allowable Lot size order = (Account Equity*50% - Used Margin – Locked Margin – Locked Transaction fee)/ [(Margin Rate% + Transaction
Fee%) * Order price * Lot size];
3.2 When user places and completes an order, a new position is established. At any point before this position is liquidated/closed, the position will be subject to intraday profit/loss according to market prices. Profit/loss due to such fluctuations can be used as margin for new positions but cannot be withdrawn. Intraday profit/loss is calculated per the following formulas:
Average open price =（P1*N1+P2*N2+……+Pn*Nn）/（N1+N2+……Nn）
Description: P=Open price, N=Number of Lots*Lot size.
Intraday Profit/Loss (long) = (Current price – Average trade price) * Lot size *
Intraday Profit/Loss (short) = (Average trade price – Current price) * Lot size *
3.3 When user chooses to liquidate/close existing positions, corresponding intraday profit/loss will be realized and will no longer be subject to market prices. Realized profit/loss can be used as margin but cannot be withdrawn prior to closing the position. Realized profit/loss is calculated per the following formulas:
Realized Profit/Loss (long) = (Close price – Average open price) * Lot size * position size;
Realized Profit/Loss (short) = (Average open price – Close price) * Lot size * position size;
4.1 All balances transferred into the Perpetual Contracts account and subsequent profits/losses can be used as margin for Perpetual Contracts trading. When the Account risk rating reaches ≦ 50%, forced liquidation of all positions will be triggered at market prices.
Account risk rating = Account Equity / Used Margin*100%
4.2 KKcoin’s Perpetual Contracts utilizes a cross-margin mechanism where warning triggers when Account risk rating hits 100% and forced liquidation triggers at 50%. When warning triggers at risk rating ≦100%, investors are advised to add Equity to their Perpetual Contracts account or reduce position until their risk rating increases to >100%. (Note: KKcoin will send reminders via email/account notification at risk rating levels ≦100% and ≦70%. Investors should be aware of the risks and take appropriate actions at all times. These notices are non-obligatory and will be sent on a best effort basis only). At risk rating ≦ 50%, forced liquidation of all position will occur.
4.3 Forced liquidation process: When the Account risk rating reaches the Forced Liquidation trigger, all position orders will be listed according market price which triggered the liquidation process (actual transaction price may be higher or lower than that trigger price). Orders not settled at the trigger price will be automatically withdrawn and relisted at current market price until entire position is closed.
4.4 Position limit: In order to reduce our customer’s risk due to margin trading, KKcoin’s Perpetual Contract enforces a position limit of ≦50%. Once the position limit exceeds 50%, no new position can be initiated.
Position Limit = (Used Margin + Locked Margin + Locked Transaction fee) / Account Equity*100%
4.5 Price limit: In order to protect our customers from massive volatility and market manipulation, KKcoin adopts a price limit mechanism as one of our risk control measure. KKcoin will dynamically calculate Price limit rules by integrating dozens of parameters such as trading volume, position, and percentage deviation from index price. For long positions, when order price is higher than the highest price beyond the price limit, order will be invalid; For short positions, when order price in lower than the lowest price beyond the price limit, order will be invalid. Price limits:
Highest order price = Spot Index price * (1+2%)
Lowest order price = Spot Index price * (1-2%)
5.Limit Order and Stop Loss
5.1 Limit order and Stop Loss refers to a certain pre-set price whereby an open position is automatically closed when it reaches that level, locking in profits (Limit order) or limiting losses (Stop loss) on that position without the need for constant surveillance.
When the market fluctuates and reaches the pre-set price level, the system will place respective orders at that price. Final transacted price will however still be based on the market. If orders fail to be filled, manual intervention will be required to close positions.
5.2. Limit Order and Stop Loss mechanism:
a.Take Profit/Stop Loss prices can be set directly at the order placement interface;
b.These prices can be modified anytime at the open position interface;
c.When a similar order type is placed (or sold) at a later time, and Take Profit/Stop Loss prices are set at the order interface, then Take Profit/Stop Loss prices of the entire position will be the price set at the time of placing the order; If Take Profit/Stop Loss prices are not set, it will be reset and customers will have to manually set it again;
d.Take Profit/Stop Loss prices are not subject to the price limit mechanism;
e.Take Profit and Stop Loss prices must be set at the same time. If only one of the price is set and the other remains empty, this new "set" of prices will be eligible which overrides previous settings;
6.Spot Index price and Perpetual Contracts price
6.1 In order to control market risks and prevent malicious actions, KKcoin uses an original, industry-leading big data analysis model based on 6-8 biggest cryptocurrency exchanges (such as Bitfinex, Gemini, Bitstamp etc) to generate an aggregate spot price for the reference index. This reference index is used to anchor the trading price for Perpetual Contracts, avoiding risks of market manipulation to protect rights and interests of our customers.
6.2 Traders place long and short orders of Perpetual Contracts referencing the Spot Index and market prices are formed when these orders match off against one another, ensuring that Spot and Perpetual Contract prices do not deviate significantly.
7.1 When engaging in Perpetual Contracts trading, all users should abide by fairness and openness.
7.2 KKcoin reserves the right to warn, restrict and ban any accounts found engaging in malicious behavior, such as price manipulation. When necessary, KKcoin reserves the right to suspend trading, cancel orders, roll-back trades etc. to eliminate adverse effects.
7.3 When users’ positions or order sizes becomes too large and KKcoin determines that there may be serious risks to relevant systems, KKcoin reserves the right to request individuals to withdraw orders and liquidate of positions etc. When necessary, KKcoin also reserves the right to implement risk measures on specific individual accounts by limiting positions, order sizes, forced liquidation etc.
7.4 KKcoin shall not be liable for damages if the system fails to function properly due to the following situations, including but not limited to:
A．System maintenance period as announced by the KKcoin platform;
B．Failure of telecommunication equipment resulting in failure of data transmission;
C．Due to force majeure factors such as typhoons, earthquakes, tsunamis, floods, power outages, wars, terrorist attacks etc. resulting in failure or interruption of KKcoin systems;
D．Service interruption or delay due to hacker attacks, computer viruses, technical adjustments or failures in telecommunication, website upgrades, banking issues, temporary closures due to government regulations etc.;
E．Losses due to technical problems that cannot be adequately predicted or mitigated by existing technologies;
F．Losses due to fault and/or delay of any third-parties;
7.5 KKcoin reserves the right to cancel and/or roll back trades deemed to be abnormal transactions caused by system failure, network issues, DDOS and other attacks, market interruptions etc.
7.6 KKcoin platform strictly prohibits any unfair trading behavior, including but not limited to, users exploiting malicious system vulnerabilities to conduct malicious transactions through large orders, continuous orders and/or related transactions to manipulate prices and volume. In such cases, KKcoin reserves the right to cancel all abnormal transactions and/or roll back trades accordingly.
7.7 The content of this agreement includes KKcoin’s system specifications, trading parameters and other related information. Once officially published, users must abide by it’s entire contents instead of parts of it. By registering or using any of the Services mentioned in this Agreement, users are deemed to have read and agreed to be bound by terms of this Agreement. KKcoin reserves to modify contents of this Agreement when deemed necessary. If any of the contents of this Agreement is changed and user continues to utilize the services mentioned, user is deemed to have accepted the revised content. If user do not accept the revised content, he/she should stop using all related services.
7.8 The establishment, interpretation, enforcement and dispute resolution of this Agreement shall be governed by the laws of Singapore.
7.9 If there are any disputes between you and KKcoin, it should first be settled through friendly negotiation; if such negotiations are unsuccessful, both parties agree to submit the dispute to the respective dispute resolution Courts of Singapore.
8.0 The headings of all the terms of this Agreement are for convenience purposes only and have no actual meaning and cannot be used as a basis of interpreting this Agreement.
KKcoin Perpetual Contract is a leveraged trading product. While amplifying potential revenue, it also amplifies potential loss. Before opening a Perpetual Contracts account, all users must confirm that they have fully understood the relevant risks and confirm that they can withstand risks inherent in Perpetual Contracts. All transactions and related actions are voluntary.