Contract Service Agreement and Trading Rules

Dear Users,

To clarify the requirements for using SUNX contract services, risk management mechanisms, and standards of trading conduct, the relevant agreement and rules are set out below.

Before using SUNX contract trading services, please carefully read and fully understand this Agreement, particularly the provisions excluding or limiting liability, and independently decide whether to accept it.

If you have not read and accepted all provisions, please do not use contract trading or related services. Logging in, viewing, publishing information, or otherwise using the Services constitutes acknowledgment that you have read and agreed to be bound by this Agreement.

I. Requirements for Using Contract Services

1. Trading Risks and Independent Decisions

Contract trading involves substantial risk. You acknowledge and agree to assume the risks associated with accessing and using contract trading services.

Please fully understand the trading mechanisms and take responsibility for trading and non-trading activities in your SUNX account. Do not trade or invest beyond your financial capacity.

You confirm that investment activities conducted on SUNX reflect your genuine intentions, and you accept the risks and returns that may arise from your decisions.

2. Verification of Position Status

You are responsible for continuously understanding the actual status of your positions. Even if the platform displays incorrect information, you should monitor and verify your actual positions.

3. Margin and Loan Repayment

You must maintain sufficient blockchain assets in your SUNX margin account as required by the platform and repay relevant loans promptly and in full.

Failure to maintain sufficient assets may result in forced liquidation of assets in your margin account.

4. Risk Management and Fund Transfers

SUNX may, at its discretion, take measures to reduce potential losses, including, without limitation, transferring funds between margin and trading accounts.

5. Risk Management During System Maintenance

During maintenance, you agree to independently manage the risks of your margin account, including closing positions and repaying relevant loans as necessary.

6. User Responsibility

You agree to independently conduct trading, contract trading, and related borrowing and to take responsibility for your activities.

SUNX assumes no corresponding liability under this Agreement for losses or damages resulting from using relevant services or failing to fully understand asset and service risks.

7. Service Suspension, Termination, and Position Takeover

SUNX reserves the right to suspend or terminate contract services and take over users’ positions. The platform may take these measures when necessary.

8. System and Force Majeure Risks

Network delays, computer system failures, and other force majeure factors may cause delays, suspensions, interruptions, or deviations in contract service execution.

SUNX will endeavor to maintain the execution system but does not guarantee that it will always be stable or effective. SUNX assumes no corresponding liability under this Agreement where these factors cause actual execution results to differ from users’ expectations.

II. Liquidation, Risk Reserve Fund, and Maximum Take-Profit Rules

1. Liquidation Engine

When losses on a user’s position reach 90%, the liquidation engine will forcibly take over the position and execute liquidation.

2. Treatment of Liquidation Surplus

Under this Agreement, execution of a liquidated position at a price below the bankruptcy price will generate a liquidation surplus.

The bankruptcy price is the price at which the principal is reduced to zero through losses. Liquidation surplus is contributed to the risk reserve fund to offset losses exceeding margin during user settlement.

3. Risk Reserve Fund

The platform establishes the risk reserve fund to provide financial support for normal contract trading operations and cover losses arising from unforeseen platform risks.

4. Opening Price Limit Protection Mechanism

The platform calculates a reasonable opening price relative to the current price based on market conditions, the risk reserve fund, market depth, and other factors.

Under this mechanism, users may immediately submit opening orders at the price displayed on the page.

5. Maximum Take-Profit for Isolated-Margin Contracts

Under isolated-margin mode, the maximum contract return rate is 1000%.

Once this rate is exceeded, the system will take over the position at the maximum return rate for the relevant instrument and settle and close it.

III. Prohibited Conduct in Contract Trading

1. Illicit Arbitrage through Multiple Accounts or Devices

Illicit arbitrage using multiple accounts or devices is prohibited, including, without limitation, trading fee abuse, commission rebate abuse, bonus abuse, and hedging used for illicit arbitrage.

The platform identifies account risks through multidimensional characteristics. For illicit arbitrage detected by the system, measures may include, without limitation:

1. Banning accounts;
2. Freezing assets;
3. Restricting login;
4. Requiring real-name identity verification.

2. Frequent Ultra-Short-Term Trading

To protect the normal user trading experience, SUNX reserves the right to take the following measures against frequent ultra-short-term position opening and closing detected by the system:

1. Immediately terminate relevant accounts and their access to platform servers, and deduct illicit proceeds;
2. Declare trades constituting ultra-short-term trading activity invalid and treat them as though they had never occurred;
3. Close relevant trades at the platform’s current market prices;
4. Increase holding time requirements so positions may only be closed after the required period.

3. Unfair Trading Conduct

SUNX strictly prohibits:

1. Price manipulation or other malicious market behavior;
2. Exploiting service vulnerabilities or other unreasonable means to harm other users or SUNX;
3. Other activities SUNX determines to be harmful to the market.

For accounts involved in such conduct, SUNX reserves the right to impose account management and control measures at its discretion according to the relevant circumstances.

IV. Important Notice

Before using contract services, fully understand the rules concerning margin, liquidation, the risk reserve fund, and maximum take-profit, and allocate trading funds reasonably.

This notice should be read together with the SUNX Terms of Use and Service Agreement and relevant trading rules. The rights and obligations of the platform and users, and the application of disclaimers, are governed by the relevant agreements and applicable laws.

If you have questions about this Agreement or operating rules, contact SUNX through its official customer support channels.

Thank you for your support and trust in SUNX.

SUNX Global Operations Team