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▶ Terms of Service for Prelaunch Perpetual Futures

Shuya
  • Updated on

Effective Date: 2024/8/7

These Terms of Service govern your access to and use of the prelaunch perpetual futures trading services available within the WOO X platform (the “WOO X”). By participating in trading of this instrument, you agree to be bound by this Terms of Service for Prelaunch Perpetual Futures, and our general Terms of Services (“General Terms of Services”). In addition, users should carefully read and fully understand all the guidelines, instructions, announcements, information, tutorial and FAQ of prelaunch perpetual futures (“WOO Prelaunch Perpetual Futures Rules” or “the Rules”). If you do not agree to these terms and Rules, you must not use our prelaunch perpetual futures services.

 

1. Overview of Prelaunch Perpetual Futures

A prelaunch perpetual futures allows traders to speculate on the prices of tokens that have not yet been launched.  These instruments provide an opportunity to trade on the potential value of these tokens prior to their official release. Unlike regular perpetual futures, prelaunch perpetual futures do not have an index price and do not involve funding payments. The mark price for prelaunch perpetual futures is calculated based on the impact bid and impact ask prices. 

 

2. How do Prelaunch Perpetual Futures Work?

Prelaunch perpetual futures significantly differ from regular perpetual futures. They carry unique considerations and pose elevated risks. It is crucial to exercise caution and refrain from trading contracts you are unfamiliar with or do not fully understand. Below contains the key considerations of prelaunch perpetual futures. Users are strongly advised to read details in the WOO Prelaunch Perpetual Futures Rules as announced and amended from time to time before they commence the transaction of this instrument.

  1. Prelaunch Index Price: 

For prelaunch perps, there will be no index price sources and thus no available index prices for them.

  1. Fee Calculation: 

Although there will be no funding fees collected for prelaunch perpetual futures, there might be extra fees, such as trading fee, collected during the transaction of this instrument, where the formula may vary and adjust based on the market dynamics and the sole discretion of WOO X.

  1. Mark Price Calculation: 

The mark price for prelaunch perpetual futures is calculated based on the impact bid and impact ask prices, where the formula may vary and adjust based on the market dynamics and the sole discretion of WOO X. 

  1. Lower Leverage: 

These markets are more prone to lower liquidity, higher volatility, and increased liquidation risk. To ensure responsive trading, prelaunch perpetual futures will have a low max leverage.

 

3. Eligibility

This instrument is NOT available to users who are currently located in prohibited jurisdictions (please refer to Futures List of unsupported countries). WOO X reserves the right to suspend or terminate this prelaunch perpetual futures service subject to applicable law and regulation changes at any time.

 

4. Post Token Launch

When the token is launched and its spot market is listed on major exchanges, the prelaunch perp contract will be converted to a regular perp contract shortly after.

 

5. Delist of Prelaunch Perpetual Futures 

WOO X reserves the right to remove any prelaunch perpetual futures on WOO X, at any time. In the event that the token never launches, or if WOO X decides to terminate the prelaunch perpetual futures before the token launch at its business discretion at any time, this instrument will be settled based on the rules as determined by WOO X. 

 

6. Risk Considerations

Prelaunch perpetual futures is highly risky and may result in potentially unlimited losses. As a futures trader, you should always be aware of your risk tolerance, investment objectives, investment experience, and financial condition. Please note that the risks listed below are not exhaustive. Users should carefully assess the associated risks before engaging in trading. 

  1. Liquidity and Volatility: 

These markets are more prone to lower liquidity, higher volatility, and increased liquidation risk. Price volatility is likely to pick up around token generation events.  

  1. Conversion and Delisting Risk: 

There may be risk that the prelaunch perpetual futures may never be able to convert to regular perpetual futures, due to the reasons that may not be controlled by WOO X, including but not limited to, the underlying token is never launched, or the bankruptcy of the token issuer, hacking. In addition, WOO X may, at its discretion, temporarily or permanently suspend trading or delist markets from WOO X at any time.  If such a determination was made, the prelaunch market would not be able to convert into a standard perpetual futures market, and the market may need to be suspended and/or delisted. WOO X reserves the right to take such actions without advance notice in exceptional cases.

  1. Pricing Risk: 

The price of the prelaunch market is subject to supply and demand from traders. This price may not accurately reflect the price at which the underlying token actually launches.

  1. Force Majeure: 

Force Majeure events, as defined in our General Terms of Service, may occur, and users may incur losses during such events.

 

7. Disclaimer

  1. Trading in prelaunch market perpetual futures involves significant risk. You should consider whether you understand how these products work and whether you can afford to take the high risk of losing your money. You agree that you conduct all futures trading on your own account and fully understand the risks associated with prelaunch market perpetual futures trading and be solely responsible and liable for any and all trading and non-trading activity on your WOO X account. We do not take any responsibility for any loss or damage incurred as a result of your use of any services or your failure to understand the risks involved with assets use generally or your use of our services.
  2. You shall be solely responsible and liable for knowing the true status of any position, even if presented incorrectly by WOO X at any time.
  3. You acknowledge that prelaunch market perpetual futures involve liquidation risk and you may face forced liquidation of assets and suffer unlimited loss. 
  4. WOO X reserves the right to disqualify any user or participant if he/she engages in any inappropriate, dishonest, or abusive activities during the transaction of this instrument. Further, WOO X reserves the right to disqualify trades that are wash trades, involve illegal bulk account registrations, self-dealing, or display signs of market manipulation or suspicious behavior, etc. The user acknowledges and agrees that the decision regarding disqualification is at the sole discretion of WOO X and WOO X is not obliged to provide any explicit reason(s) for doing so.
  5. None of the provisions of the instrument, this Terms of Service for Prelaunch Perpetual Futures or WOO Prelaunch Perpetual Futures Rules consist of the investment advice. WOO X will not be responsible or liable for any losses (including, without limitation, any direct or indirect damages for loss of profits) resulting or arising directly or indirectly from your transaction of this instrument. 
  6. During WOO X system maintenance, you agree that you are solely responsible and liable for managing your account under risks, including but not limited to, keeping or closing your position.
  7. You agree that all investment operations conducted on WOO X represent your true investment intentions and that unconditionally accept the potential risks and benefits of your investment decisions.
  8. Where any Force Majeure event happens as defined in our General Terms of Services, WOO X shall have no liability for any failure or delay resulting from any abnormal or unforeseeable circumstances outside our reasonable control. 

8. General Provisions

By using the prelaunch perpetual futures services, you agree to comply with all applicable laws and regulations, the Terms of Service for Prelaunch Perpetual Futures and our General Terms of Services. For any other matters not covered within this Terms of Service for Prelaunch Perpetual Futures, it shall be covered by our General Terms of Services. 

WOO X reserves the right to modify and the final interpretation of this Terms of Service for Prelaunch Perpetual Futures (including but not limited to canceling, extending, or delisting) without notifying users in advance. If you have any questions, please contact our customer service.

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