Bitstamp Financial Services Ltd.

General Terms and Conditions

Dated: 5 December 2025

I. PART I: GENERAL PROVISIONS

1. BASIC INFORMATION

1.1. Purpose of the General Terms and Conditions

This document (hereinafter referred to as the "General Terms and Conditions") governs the terms and conditions of business of Bitstamp Financial Services, brokerage company, Ltd. (hereinafter referred to as the "Company") in the provision of investment services and ancillary services to persons who have become a client of the Company for the services referred to in these General Terms and Conditions as defined below (“Client” or “Clients”) pursuant to the Market in Financial Instruments Act (Official Gazette of the Republic of Slovenia, No. 77/18 as amended and supplemented; ("ZTFI-1")) and pursuant to Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (OJ L 173, 12.6.2014, p. 349-496; MIFID II Directive).

1.2. Information about the Company

Company: Bitstamp Financial Services, brokerage company, Ltd.

Abbreviated firm: Bitstamp Financial Services Ltd.

Date of establishment: 28. 10. 2024

Share capital: EUR 3.450.000

Registration number: 9776745000

Tax number: SI59825707

Address: Dalmatinova ulica 2, 1000 Ljubljana, Slovenia

E-mail: info@bitstamp.net

Website: www.bitstamp.net

1.3. Services provided by the Company

The Company provides the following investment services and transactions under the MIFID II and ZTFI-1:

Reception and transmission of orders in relation to one or more financial instruments,
Execution of orders on behalf of clients,
Operation of an MTF.

In addition to the above, the Company also provides the following ancillary investment services:

Safekeeping and administration of financial instruments for the account of clients, which includes custodianship and related services such as cash/collateral management,
Granting credits or loans to an investor to allow him to carry out a transaction in one or more financial instruments, where the Company granting the credit or loan is involved in the transaction,
Foreign exchange services where these are connected to the provision of investment services by the Company.

1.4. Financial instruments

The Company provides investment services to Clients only in relation options, futures and perpetual swaps ("Financial Instruments").

The Client who purchased one of the described Financial Instruments acquired an option, right or obligation to buy or sell the cryptoasset referenced by the financial instrument at a specified or unspecified time in the future. The current value of this option, right or obligation is presented to the Client as the value of the Client's position. The Client can only fulfil or execute its option, right or obligation to buy or sell at a specified or unspecified time in the future the crypto asset that the Client acquired by purchasing a financial instrument, by purchasing the financial instrument that will create, by volume and direction of trade (buy / sell) an opposite option, right or obligation. Obligations that arise between Parties that are holders of Financial Instruments of the same type can only be settled with cash.

More detailed information on the Financial Instruments in relation to which the Company provides investment services and transactions, and ancillary investment services, and the risks associated with those Financial Instruments, is disclosed in Annex 1 (Description of Financial Instruments and Risks) to these General Terms and Conditions.

2. PROCEDURES BEFORE AND AT THE TIME OF ENTERING INTO A BUSINESS RELATIONSHIP WITH CLIENTS

2.1. Client identification

The Company, as a regulated entity under the Act on Prevention of Money Laundering and Terrorist Financing (Official Gazette of the Republic of Slovenia, No. 48/22 and 145/22, ("ZPPDFT-2")), is obliged to identify the Client prior to entering into a contract with the Company, either by personal identification, video identification or electronic identification, all in accordance with the provisions of the ZPPDFT- 2 and associated regulations.

The Client expressly authorises the Company to keep a digital copy or photocopy of the Client's identity document for identification purposes and in accordance with applicable regulations.

2.2. Processing of Client data

In the process of entering into a business relationship, the Client is required to provide the Company with the personal data necessary for the Company to verify the identity of the Client, to carry out all the procedures prescribed by the ZPPDFT-2 in respect to the screening of Clients, and to provide investment services and transactions and ancillary investment services to the Client. If the Client fails to provide such information, the Company shall not be able to comply with its legal obligations or enter into a contractual relationship with the Client.

In the event the Client is a natural person, it may, subject to conditions set out in Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of individuals with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (OJ L 119, 4.5.2016, p. 1-88; General Data Protection Regulation), request from the Company to be informed of his/her personal data and to have access to, rectify and/or erase, restrict the processing of, or transfer his/her personal data. If the Company processes the personal data of a Client on the basis of the Client's consent, the Client may withdraw the consent at any time. The withdrawal of consent shall apply prospectively and shall not affect the lawfulness of the processing that took place prior to the withdrawal. The Client may object to the processing of personal data where the Company processes personal data on the basis of legitimate interests. In this case, the Company will cease processing the personal data unless the Company demonstrates compelling legitimate grounds for the processing which override the interests, rights and freedoms of the Client or for the establishment, exercise or defence of legal claims.

The Client is entitled to file a complaint, if the Client considers that the Company is unlawfully processing personal data. The Client may exercise all of his/her rights by sending a written request to Dalmatinova ulica 2, 1000 Ljubljana, or by e-mail to dpo@bitstamp.net.

Also, a Client who considers that the Company is in breach of the data protection regulations has the right to file a complaint with the Information Commissioner of the Republic of Slovenia, Dunajska cesta 22, 1000 Ljubljana.

The Client warrants that the information provided is accurate and truthful and shall be liable for any damages resulting from inaccurate or untrue information. The Client is obliged to notify the Company immediately of any changes in the provided information and of any changes related to Client’s tax residency. For notices given by the Company to the Client, the Client shall be deemed to have received such notices if the Company has sent it to the Client using the contact details provided by the Client to the Company.

The Client expressly and irrevocably authorises the Company to make enquiries with third parties regarding the Client's assets, the Client's permanent/temporary residence, place and date of birth, tax and registration number, and to provide such data and information to the Company, in cases where it is necessary for the execution of these General Terms and Conditions and/or the Financial Instruments or for the exercise of the Client's rights or performance of the Client's obligations under these General Terms and Conditions and/or the Financial Instruments.

The Company shall protect the information on the balances and performance of the Client's Financial Instruments accounts and other information, facts, or circumstances of which it becomes aware in connection with the provision of investment services in accordance with the applicable regulations.

The Client and the Company undertake to treat as confidential all data and information arising out of or in connection with transactions executed under these General Terms and Conditions. Notwithstanding the foregoing, the Company may, without the prior consent of the Client, disclose information and data about the Client to domestic and foreign governmental and other relevant regulatory and judicial authorities upon their request in accordance with applicable regulations.

The Client can read more about the processing of personal data in the Privacy Policy published on the Company's website www.bitstamp.net.

2.3. Client categorisation

In the process of entering into a business relationship with a Client, the Company shall carry out a process of categorisation of the Client as a retail, professional and/or eligible counterparty in accordance with the Client Categorisation Policy, which is available to Clients for review at the Company's registered office and accessible on the Company's website www.bitstamp.net.

In the process of entering into a business relationship with a Client, the Company shall conduct an appropriateness assessment and it is in the best interests of the Client that the Client provides the Company with all requested information relating to the Client's knowledge and experience in the relevant investment area in relation to the specific type of investment service or product offered or requested, in order to enable the Company to assess whether the intended investment service or product is appropriate for the Client.

Where Clients or potential Clients fail to provide the information referred to in paragraph 2 of this Article, or provide insufficient information about their knowledge and experience, the Company shall warn them that it cannot itself determine whether the intended service or product is appropriate for the Client.

In the event that a client is categorised as a professional Client in accordance with the first paragraph of this Article, the Company can presume that such client has the necessary experience and knowledge to understand the risks inherent in the relevant investment services or transactions or types of transactions or products in respect of which the client is categorised as a professional Client. An eligible counterparty and the professional Client may always request to be treated as a non-professional counterparty.

The Company is obliged to adapt the scope and manner of the services it provides to each Client in accordance with the categorisation of the Client concerned in the above-mentioned categories.

3. GENERAL COVENANTS

3.1. Protecting Clients' interests and complying with regulations

In the provision of investment services, related transactions and ancillary investment services, the Company shall act diligently, honestly and with due professional care and shall have Clients’ interests as its guiding principle in the provision of services to them. The Company is obliged to inform Clients of all circumstances known to the Company which are relevant to the Client's decisions in relation to orders to buy or sell Financial Instruments or other services provided by the Company and the risks associated with investments in Financial Instruments. A description of the risks relating to each type of financial instrument is contained in Annex 1 (Description of Financial Instruments and Risks) to these General Terms and Conditions.

The Company is obliged to perform investment services and transactions and ancillary investment services in accordance with the applicable regulations and rules of relevant regulated markets and other relevant regulations.

3.2. Limitation of liability

The Company does not guarantee the performance of Financial Instruments to the Client and shall not be liable to the Client or any third party for any direct or indirect damages, liabilities and/or losses arising as a result of the performance of these General Terms and Conditions or the Services Agreement (as defined below), except as provided in these General Terms and Conditions. The Company is not responsible for the consequences suffered by the Client which arise from non-operation, changes or attacks on cryptoasset protocols. Furthermore, the Company shall not be liable for the consequences of the Client's decisions and shall not be liable for the consequences of any misuse of the Client's Financial Instruments by third parties conducted through the Company. The Company shall also not be liable for any damages, costs or any other liabilities suffered by the Client in connection with the provision of the Company's services in the event that the Client has provided the Company with incorrect, incomplete or inaccurate information or documents.

In no event shall the Company be liable for any damages, liabilities and/or losses of any party arising from any disruption to the Company's business beyond the Company's control (such as force majeure or conduct of a Client).

3.3. Managing conflicts of interest

The Company provides investment services, transactions and ancillary investment services to a wide range of Clients, which in certain situations may give rise to conflicts of interest that could adversely affect the protection of Clients' interests. Such conflicts of interest may arise in particular:

between the Company and its related parties and (potential) Clients;
between the Company's different Clients;
between the Company's employees and its (potential) Clients.

The Company is obliged to organise its business in such a way that (potential) conflicts of interest are avoided or minimised and appropriately managed. In order to properly manage and control conflicts of interest, the Company has adopted a specific Conflicts of Interest Management Policy, which is available to Clients for review at the Company's registered office and on the Company's website www.bitstamp.net.

3.4. Investor Compensation Scheme

In accordance with the provisions of Article 450 of the ZTFI-1, the Company is included in the Investor Compensation Scheme. More detailed information on the Investor Compensation Scheme is contained in the document "Information on the Investor Compensation Scheme", which is available to the Clients at the Company's registered office and on the Company's website www.bitstamp.net.

The above-mentioned Investor Compensation Scheme only covers claims of retail counterparties, but not:

claims of professional counterparties referred to in Articles 246 to 248 of the ZTFI-1;
claims relating to transactions for which the holder of the claim has been convicted of a criminal act of money laundering;
claims of legal persons which, according to the data in their last published annual financial reports, qualify as large or medium-sized companies according to the Companies Act (Official Gazette of the Republic of Slovenia, No 65/09, as amended and supplemented; ZGD-1); and
other claims referred to in Article 450(8) of the ZTFI-1.

3.5. Accessibility and changes to the General Terms and Conditions

The General Terms and Conditions (as amended from time to time) are available for review at the Company's registered office and on the Company's website www.bitstamp.net.

In the event of any material change to these General Terms and Conditions, the Company shall notify the Client of such material change. The Company shall send notice of such changes to its Clients by e-mail to the address provided by the Clients to the Company in the course of entering into the business relationship and publish such changes at the Company’s website www.bitstamp.net.

The Client may terminate its business relationship with the Company by closing its account on the Bitstamp investment platform, after settling all potential obligations it may have towards the Company. [If the Client does not close its account within thirty days of receiving notification of a significant change to these General Terms and Conditions, the Client shall be deemed to have accepted the amendments to the General Terms and Conditions.

4. THE BUSINESS RELATIONSHIP AND REMUNERATION FOR SERVICES RENDERED

4.1. Business relationship

Before commencing the provision of investment services, transactions and ancillary investment services, the Client is obliged to confirm acceptance of these General Terms and Conditions, whereby the Company and the relevant Client shall define their mutual rights and obligations in relation to the provision of those services by the Company to the Client. The process of confirming acceptance of these General Terms and Conditions shall be automated and shall in principle take place through a specific investment platform accessible on the website www.bitstamp.net or through the mobile application and via API connectivity provided by the Company (hereinafter referred to as the Bitstamp Investment Platform"), whereby marking of the electronic box for the acceptance of the General Terms and Conditions and clicking on the confirmation button on the Bitstamp Investment Platform is considered a valid conclusion of the business relationship between the Company and the Client, unless otherwise indicated. By marking the electronic box for the acceptance of the General Terms and Conditions and clicking on the confirmation button on the Bitstamp Investment Platform, the Client confirms that these General Terms and Conditions were available on the Company's website www.bitstamp.net prior to its confirmation thereof and that the Client had the opportunity to familiarize with them before entering into a business relationship.

4.2. Term and termination

The business relationship between the Company and the Client is concluded for an indefinite period.

The Client can terminate the business relationship at any time by closing the account.

The Company may terminate the business relationship with immediate effect if the Client violates the provisions of these General Terms and Conditions, fails to fulfil its obligations under the General Terms and Conditions, if bankruptcy or liquidation proceedings have been initiated against the Client, or if other circumstances threaten or arise that may, at the Company's discretion, jeopardize the further performance of the parties’ obligations under these General Terms and Conditions.

4.3. Fees

The Company charges its Clients fees for the provision of investment services, transactions and ancillary investment services in accordance with the applicable Company's Price List, which is accessible for review at the Company's registered office and on the Company's website www.bitstamp.net. In respect of services not covered by the aforementioned Service Price List of the Company, the Company and the Client shall stipulate on the scope of services and associated fees separately in written form. The Client shall also bear other charges, such as any taxes or other similar charges, which must be paid in connection with the performance of services related to Financial Instruments.

5. Provision of Information via the Website of the Company

The Company may (where applicable) be required from time to time, to provide the Client with certain information in a "durable medium", pursuant to applicable law. Such information may include the following items (the "Relevant Information"):

general information about the Company, as required pursuant to Article 24(4) of the MiFID II Directive, Article 46 of the MiFID II Delegated Regulation and relevant implementing the Slovene Securities Market Agency (Agencija za trg vrednostnih papirjev) ("ATVP") rules;
general information about the Company and its services, as required pursuant to Article 24(4) of the MiFID II Directive, Article 47 of the MiFID II Delegated Regulation and ATVP rules;
information about the nature and risks of certain financial instruments as required pursuant to Article 24(4) of the MiFID II Directive, Article 48 of the MiFID II Delegated Regulation and relevant implementing ATVP rules;
information concerning the holding of client money, as required pursuant to Article 24(4) of the MiFID II Directive, Article 49 of the MiFID II Delegated Regulation and relevant implementing ATVP rules;
information on costs and associated charges, as required pursuant to Article 24(4) of the MiFID II Directive, Article 50 of the MiFID II Delegated Regulation and relevant implementing ATVP rules; and
information about the Company's execution policy, as required pursuant to Article 66(3) of the MiFID II Delegated Regulation and relevant implementing ATVP rules.

The Client specifically consents to the provision by the Company of such Relevant Information (where it is required, by applicable law to be provided to the Client) by means of a website and where such Relevant Information is not personally addressed to the Client.

6. Language for communications

Communications between the Company and the Client will be in English. All our standard documents are provided in English.

7. Inducement disclosures

The Company may obtain from and keep or pay to third parties any profits, commissions, fees or non-monetary benefits in connection with the services provided, where permitted by applicable law.

PART II - INVESTMENT SERVICES AND ACTIVITIES AND ANCILLARY INVESTMENT SERVICES

1. RECEPTION, TRANSMISSION AND EXECUTION OF CLIENT ORDERS

1.1. Reception of client orders

Clients may place an order to buy or sell Financial Instruments exclusively through the Bitstamp Investment Platform, available on the Company's website www.bitstamp.net, through the mobile application and via API connectivity which is provided by the Company.

The date and time of receipt of the order shall be deemed to be the date and time of receipt of the Client’s automated order confirmation within the Bitstamp Investment Platform, which is automatically generated immediately after the order has been correctly placed.

The Company accepts orders only in respect of Financial Instruments and services listed in point 1 of part I of these General Terms and Conditions.

1.2. Types of orders

The Company accepts all types of Client orders as defined by the rules of the market in which the Client order will be executed.

Orders are sorted as follows:

i. by type of transaction: buy (B) and sell (S) orders;

ii. depending on the price:

market order (an order where there is no price limit and it is executed immediately at current market prices and according to the rules of the trading venue where the financial instrument is listed. Market orders are executed immediately at best available price; there is a risk that the price at which the purchase or sale of a financial instrument is executed deviates significantly from the last known price or the last closing price. The Company shall not be liable any losses incurred by any person in this case);
limit order (an order to buy a financial instrument at a price no higher than a certain price or to sell a security at a price no lower than a certain price (called "or better" for both directions); there is a risk that the order will not be executed due to an adverse movement in the price of the financial instrument);

iii. according to the trade execution condition parameters, trading conditions and other criteria, in accordance with the applicable rules in the particular market/trading venue in which the Client's order is to be executed.

iv. depending on the period of validity of the order:

daily order (an order is only valid on the same day as it is accepted);
until cancellation (an order is valid until it is executed on the market or cancelled, but within the timeframe set by the individual trading venue);
up to a specified date (an order is valid until execution or cancellation, or until a specified date, subject to a maximum validity timeframes as provided in the rules of particular trading venue).

The Client's order shall expire when it is cancelled by the Client in accordance with the applicable regulations and these General Terms and Conditions, upon the expiry of the validity period specified in the order or if according to these General Terms and Conditions, conditions for automatic cancellation of an order are fulfilled.

A “Fill or Kill” order is a type of order that is placed in the orderbook only in the event it may be executed immediately in its entirety.

1.3. Place of execution of orders

Orders are executed on the MTF operated by the Company.

In the event that the Company begins to execute orders at other trading venues, such other trading venues will be disclosed in the List of Execution Venues, which will be accessible at the Company's registered office and on the Company's website www.bitstamp.net.

1.4. Acceptance of orders by the Company

A Client's order is accepted if:

the Company has received from the Client all information necessary to execute the order; and
the Client fulfils initial margin requirement from point 1.9 of Part II of these General Terms and Conditions, and complies with any other conditions imposed by applicable law for the execution of the order; and
Client's order is not rejected in accordance with the provisions of point 1.5 of Part II of these General Terms and Conditions.

If the Company does not reject the order, the order shall be deemed accepted by the Company upon expiry of the time limits for communicating a notification on rejection of orders as set out in the ZTFI-1.

The Company shall transmit the received order to the execution venue as soon as practicable after receipt of the order, taking into account the trading hours applicable to the market for which the order was accepted or the execution venue's operating hours, and in any event no later than the next day on which both the Company and the trading venue to which an order was transmitted for execution are opened for business ("Business Day") after receipt of the order. An order shall be deemed to have been received by the execution venue when it is received by the execution venue during its own business hours on the Business Day on which it operates.

1.5. Rejection of client orders

The Company may reject to accept any order from a Client at its sole discretion, including but not limited to the following circumstances:

if the Client fails to provide initial margin requirement in accordance with the provisions of Section 1.9 of Part II of these General Terms and Conditions;
in the event of a conflict of interest or where, in the Company's assessment, such order or the execution thereof may be contrary to the Company's business policy or to applicable laws or regulations binding on the Company and/or the Client;
in the event of suspected misuse of the Bitstamp Investment Platform or Client identification data within that investment platform;
a Client places an order for a financial instrument in respect of which the Company does not accept orders;
in other cases provided for in the General Terms and Conditions or relevant laws and regulations applicable to the Company and/or the Client.

The Company shall assess the existence of the circumstances referred to in the preceding paragraph within a reasonable time and shall to the extent permitted by law promptly and reliably notify the Client in writing, setting forth the reasons for the rejection. The Company shall not be required to give notice of its refusal to the Client before it is deemed to have received the order in accordance with these General Terms and Conditions.

1.6. Cancelling an order

The Client cannot change an order but can cancel it. The Client can cancel the order until the order is executed.

1.7. Receipt of order confirmation

Immediately upon receipt of an order or cancellation of an order, the Company shall provide to the Client, via the Bitstamp Investment Platform, an order confirmation receipt relating to confirmation or cancellation of an order, containing relevant details in accordance with applicable regulations.

The Client shall be deemed to have received the order confirmation receipt when the entry of the order has been validated in the Bitstamp Investment Platform system.

1.8. Execution of Client orders

The Company shall execute Client orders as they are received, with Client orders of the same type being executed in consecutive order in which they are received. All Client orders shall be recorded in accordance with applicable regulations.

The Company accepts, transmits and executes Client orders in accordance with the Order Execution Policy (which is accessible at the Company's registered office and on the Company's website www.bitstamp.net) and in accordance with other relevant regulations and rules applicable to the market on which the financial instrument is traded in relation to a particular order.

The Company will execute Clients’ orders in the name of a Client only. Consequently, a Client understands and agrees that they will be the legal holder of a position that might be established because an order will be executed.

A Client can close an existing position by instructing the Company to execute an order that will, if executed, result in a reverse trade on the MTF.

After a position is closed, unrealised profit & loss become realised. However, realised profit is not added to collateral and realised loss is not deducted from collateral until a closed position is settled. Nevertheless, unrealised profit & loss and realised but not settled profit & loss are accounted for within equity calculations and are consequently also accounted for within margin requirements calculations.

The Client agrees that where transactions in Financial Instruments are executed on their behalf, the Client will be subject to the rules of the MTF specified in Annex 2 as such rules are amended from time to time.

1.9. Collateral, required equity and consequences of failure to meet related requirements

Before placing buy or sell orders, the Client must provide collateral for its future obligations. The Client provides collateral by:

transfers of funds that may constitute collateral to its Client cash account (as defined in Section 2.2. of Part II of these General Terms and Conditions) maintained with the Company in connection with its account for trading with derivative Financial Instruments (hereinafter: trading account) opened by the Company for the Client; or
marking cash funds or cryptoassets held for the Client by another Bitstamp Group entity as assets to be used as collateral and to be considered as such when displayed on the Client's trading account.

Collateral can consist of:

cash funds deposited by the Client with the Company and held by the Company for the Client in the Client's Client cash account;
cash funds or relevant cryptoassets that are held for the Client by another Bitstamp Group entity, and which the Client has designated as assets that should be considered as assets in the trading account when trading; and
profits derived from trading (closed and settled positions).

Relevant cryptoassets are those which the Company, at its own discretion and using an adjusted value (hair-cut), considers as collateral. The Company publishes the relevant cryptoassets on its website .

The Company sets the collateral requirements in its sole discretion. The required minimum values of individual equity are published on the Company's website www.bitstamp.net. If the Client's collateral falls below such levels, the Company has the right to refuse trades and/or close positions.

1.10. Negative Pledge

The Clients undertake neither to create nor to have outstanding any security interest or other encumbrance over, nor to agree to assign or transfer, any assets which constitutes collateral, except for a security interest expressly consented to by the Company in writing.

1.11. Loss coverage in the context of automatic deleveraging

The Clients agree that the Company can use their profits from the relevant settlement period within the context of automatic deleveraging procedures to settle the obligations of the Clients who are unable to do so themselves, whereby the Company can only use the Clients' profits if it was not possible to use the funds to settle the stated obligations provided in any of the other ways described in the previous point of these General Terms and Conditions.

1.12. Settlement

Positions are settled at the MTF, in accordance with the rules from Rule 19 of the MTF Trading Rulebook. The Company is irrevocably instructed to transfer, or otherwise apply, that Client's Collateral to satisfy that Client's obligations in relation to any position.

1.13. Handling of client funds

The Company may not use Client’s funds recorded in the Client's Client cash account for the Company's own account or for the account of other Clients, and may not transfer or make deductions from the Client's Client cash account except as permitted by these General Terms and Conditions or the MTF Trading Rulebook.

Client funds in the Company's special bank account opened in accordance with Section 2.2. of Part II of these General Terms and Conditions are non-interest bearing in accordance with applicable law.

Before crediting funds to the Client's Client cash account, which the Company maintains in accordance with the provisions of ZTFI-1, the Company shall charge the Client for all costs and fees and any outstanding liabilities due in accordance with the applicable Company’s Price List and shall deduct such costs, fees and liabilities from the amount received from the Client before crediting to the Client's cash account a correspondingly reduced amount of funds.

In addition to and without limitation of the Company's rights in respect of the Client's cash which is credited to the Client's Client cash account and constitutes collateral for the purposes of these General Terms and Conditions and the MTF Trading Rulebook, to the extent that any amount is owed by the Client to the Company from time to time under these General Terms and Conditions or the MTF Trading Rulebook or otherwise, such amount shall be due to the Company from the Client on the terms stated in these General Terms and Conditions and the MTF Trading Rulebook, or if earlier on demand from the Company (the "Due Amount"). The Company is hereby granted by the Client: (a) the right to (i) retain in any Client cash account of the Client an amount equal to the Due Amount until the Company has received payment of the full Due Amount from the Client, and/or (ii) instruct the bank with whom any Client cash account of the Client is maintained to pay to the Company an amount equal to all or part of the Due Amount, and receipt of such amount from the bank will satisfy the Client's obligation to pay to the Company the Due Amount to the extent of the amount received by the Company; and (b) a security interest over each of the Client's cash accounts to secure the payment to the Company of the Due Amount from time to time, which security interest: (i) shall take priority over any other rights granted by the Client or arising under law or regulation over the Client's cash accounts; (ii) shall remain in force until the later of (1) the termination of General Terms and Conditions and the MTF Trading Rulebook, and (2) payment in full by the Client of all outstanding Due Amounts; (iii) may be enforced by the Company at any time without notice to the Client by instruction from the Company to the bank with whom a Client cash account of the Client is maintained to pay to the Company an amount equal to all or part of the Due Amount, and receipt of such amount from the bank will satisfy the Client's obligation to pay to the Company the Due Amount to the extent of the amount received by the Company.

1.14. Transaction accounting

No later than the next Business Day following the fulfilment of the obligations from the transaction it concluded on behalf of the Client, the Company shall submit to the Client an accounting statement of the completed transaction, which shall be accessible on the Bitstamp Investment Platform and sent to electronic mail of the Client. If the Company has entered into a transaction for a Client through an execution venue, the Company shall send an accounting statement to the Client no later than the next Business Day following the receipt of the accounting statement from the execution venue in relation to such transaction.

The Client shall be deemed to have received the accounting statement of an executed transaction when the entry of the statement has been validated in the system of the Bitstamp Investment Platform.

1.15. EMIR reporting

The Client agrees that the Company will on their behalf and in line with EMIR (Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories) report details of derivative contracts that the Client is a counterparty to, their modifications and their terminations.

For the Company to be able to report in line with the previous paragraph, to fulfil any other reporting requirements, or fulfil any other obligations under applicable law the Client agrees to provide the Company with any details which the Company may reasonably require.

For the purposes of the above, the Client agrees to the Company disclosing the Client's data to any trade repository and waives, only for that purpose and only to the extent necessary for that purpose, any right of confidentiality that would otherwise apply to the Client's data.

1.15 LEI Maintenance

Clients whose LEI was provided to the Company are required to maintain it.

The Company will regularly check the validity of LEIs that were provided to it. The Company will (i) close all open Orders of the Client, (ii) liquidate all the Client’s positions and (iii) disable the Client’s ability to trade on the MTF if an LEI of the Client will expire within the next 24 hours. The Company will liquidate positions in accordance with the MTF Rulebook.

1.16 Change to unsupported jurisdiction or unsupported status.

The Company will stop executing orders of a Client who:

changes his residency to a jurisdiction that is not supported by the Company or
is reclassified or determined to be a non-professional Client and is a resident of a jurisdiction from which only professional clients are accepted.

If the Company becomes aware of any such event, the Company will immediately inform the respective Client that:

the Client can not open any new positions;
the Client is required to close all open positions within 7 (seven) days;
only exposure reducing orders will be accepted;
after 7 (seven) days the Company will close any positions that will remain open and delete all remaining orders.

2. SAFEKEEPING AND ADMINISTRATION OF FINANCIAL INSTRUMENTS, CASH FUNDS AND CRYPTOASSETS FOR THE ACCOUNT OF CLIENTS

2.1. Safekeeping and administration of financial instruments

The Company provides custody and administration services exclusively in respect of financial instruments in respect of which it has provided investment services listed in point 1.3. of part I. of the General Terms and Conditions.

2.2. Safekeeping of cash funds

The Company shall open and maintain in its book for each Client an account which records the amount of cash received from and held for each Client from time to time (each a "Client cash account").

The Company shall open and maintain a special bank account with an appropriate banking entity (which may be a central bank, a credit institution authorised and regulated in the EU or a bank authorised and regulated outside the EU) through which, in accordance with these General Terms and Conditions, it accepts payments from Clients, procures on behalf of Clients payments required to be made by Client by these General Terms and Conditions, including in relation to transactions the Company has concluded on behalf of the Clients, and manages the cash balance on each Client cash account. The special bank account opened by the Company in accordance with this Section 2.2. shall not be used to hold, and shall be identified separately from any account in which the Company holds, cash belonging to the Company. If the special bank account opened by the Company in accordance with this Section 2.2. is subject to the law of a jurisdiction other than an EU member state, the rights of Clients to cash recorded in their Client cash accounts and held in the special bank account may differ accordingly.

2.3. Use of cash funds and cryptoassets, held by third persons

By accepting these General Terms and Conditions, the Client confirms that the Company may use or apply any cash and/or cryptoassets held by another person from the Bitstamp Group in the name and on behalf of the Client as collateral to the extent that such cash and/or cryptoassets are marked as collateral by the Client. The Client authorizes the Company to use or apply such assets (whether by selling and/or transferring such assets to itself or any counterparty of the Client) on the Client’s behalf and for the Client’s account, if this is necessary to fulfil the Client's obligations from the Client's open positions or settle the Client's obligations to the Company or any counterparty in accordance with the requirements of these General Terms and Conditions and the MTF Trading Rulebook.

2.4. Informing clients and electronic communication

Once a month, the Company will provide the Client with a statement of the balance on its Client cash account and monthly turnover on its trading account on the Bitstamp Investment Platform via the Company's website www.bitstamp.net and via electronic mail.

Once a year, the Company will provide the Client with a statement of the balance on the Client's Client cash account and annual turnover on its trading account on the Bitstamp Investment Platform via the Company's website www.bitstamp.net and via electronic mail, unless shorter notification periods have been agreed with the Client. At the Client's request and against payment of a fee in accordance with the Company's applicable Price List, the Company shall provide the Client a statement of the turnover on the Client's trading account on the Bitstamp Investment Platform for the requested period and the new balance on the Client's Client cash account as at the date of the statement. Such statement shall be provided on the next business day following the receipt of the Client’s request.

By entering into a business relationship, the Client expressly agrees to receive all notices, receipts and statements, statements of account balance and annual turnover that the Company is obliged to provide to the Client, notices of changes to the General Terms and Conditions, the Price list and other acts on the Investment Platform Bitstamp via the Company's website www.bitstamp.net or by e-mail.

The Client allows that electronic communication between the Client and the Company may be recorded for the purposes defined by the content of these General Terms and Conditions and agrees that in the event of a dispute, the recorded electronic communication may be used as a means of proof. The Company may use voice-recording devices in connection with any communication between the Client and the Company. The Company may also keep records of electronic communications the Client and the Company. A copy of such recordings and communications will be available on request for a period of 5 years, and, where requested by ATVP, for a period of up to 7 years.

2.5. Separation of client assets from the Company's assets

The special bank account opened by the Company in accordance with Section 2.2. of Part II of these General Terms and Conditions, and the cash recorded in such account, shall not be considered as assets of the Company and shall not form part of the bankruptcy estate in the event of the Company's bankruptcy. Through this account, the Company shall receive deposits from and for the account of Clients and procure on behalf of Clients withdrawals in respect of payments required to be made by Client by these General Terms and Conditions or the MTF Trading Rulebook, including in relation to transactions the Company has concluded on behalf of the Clients.

Financial instruments of Clients held in the Company's accounts do not constitute assets of the Company and do not form part of the Company's assets in the event of the Company's bankruptcy.

2.6. Warnings

The Company shall not be liable to Clients for any acts, omissions and any consequences resulting from acts and omissions which are (in whole or in part) caused by events or circumstances beyond the Company's control, including failure of telecommunications facilities, malfunctions in the operation of systems in the financial instruments markets, conduct of third parties such as credit institutions, execution venues, etc.

The acts or omissions or insolvency of a credit institution (or other entity) with which a special bank account is opened by the Company in accordance with Section 2.2. of Part II of these General Terms and Conditions may result in loss reducing cash balances in Client cash accounts, but the Company shall in no circumstances be liable for losses caused by acts or omissions or insolvency of any such credit institution or other entity.

3. GRANTING CREDITS OR LOANS

3.1. General

The Company may grant a loan to the Client, who will use the funds in Financial Instrument trading, which will take place through the Company or at the MTF managed by the Company. The decision whether the Company will grant the Client a loan is at the Company's discretion. In the event that the Company grants the Client a loan, the rights and obligations of the parties will be defined in a separate agreement.

4. EXCHANGE SERVICES

4.1. Currencies

If the currency of the funds used in trading and the currency of the funds deposited by the Client as collateral differ, the Company shall carry out the necessary exchange between the currencies.

PART III - FINAL PROVISIONS

1. INFORMING CLIENTS OF THE COMPANY'S ACTS

1.1. General Terms and Conditions acknowledgement

By accepting the General Terms and Conditions within the Bitstamp Investment Platform, the Client confirms that it is aware of and fully accepts the contents of these General Terms and Conditions (and any Annexes), which together with any Annexes form the business relationship between the Company and the Client.

1.2. Acknowledgment of the Company’s policies

By accepting the General Terms and Conditions within the Bitstamp Investment Platform, the Client confirms that it has reviewed and understands the contents of the following acts of the Company and that it accepts them in full:

Client categorisation policy;
Order execution policy;
List of execution venues;
Conflicts of interest management policy;
Information on the investor compensation scheme;
MTF Trading Rulebook;
Rules on handling client complaints and the out-of-court dispute settlements; and
Company’s Price list.

2. APPLICABLE LAW AND DISPUTE RESOLUTION

2.1. Applicable law

Slovenian law shall apply to the interpretation and enforcement of the rights and obligations of the Client and the Company under these General Terms and Conditions, unless the application of another law is mandatory in relation to specific areas of the Company's business.

2.2. Dispute resolution

Disputes between the Client and the Company shall be settled in accordance with the rules on handling Client complaints and the out-of-court dispute settlements. The referenced rules are available for review at the Company's registered office and on the Company's website www.bitstamp.net.

Disputes that cannot be resolved in accordance with the provisions of rules on handling Client complaints and the out-of-court dispute settlements shall be settled by a court of competent jurisdiction in Ljubljana, Slovenia.

3. VALIDITY

3.1. Entry into force

These General Terms and Conditions shall enter into force on 5 December 2025.

Bitstamp Financial Services d.o.o.

ANNEX 1: Description of Financial Instruments and risks

1. INTRODUCTION

The description of the risks associated with investments in Financial Instruments offered by the Company is intended for Clients and potential Clients of the Company. The purpose of the description is to provide information and warnings about the risks associated with Financial Instruments that a Client may buy, sell or order, or in relation to which the Client may carry out other types of transactions through the Company. Risk is understood as the failure to achieve a certain expected return on the capital invested and/or the loss of the capital invested up to its total loss, the basis for which may be various causes related to the Financial Instruments, the markets or the issuers of these instruments. These risks cannot always be foreseen in advance and therefore the statements in this description cannot be considered as definitive.

The purpose of this description is not to provide information on all the risks that may arise in the provision of services with Financial Instruments, but rather to provide information on the risks that enables the Client to understand the nature of these risks in particular when making investment decisions. The Company also advises the Client to read carefully the additional disclosures about that financial instrument or service before making a decision in relation to a particular investment service or transaction.

The statements in this description do not constitute advice by the Company on potential investments and shall not be understood as a recommendation by the Company to provide any investment service. The descriptions contained herein do not constitute an offer by the Company to the Client in respect to the provision of any investment service and is therefore not a substitute for the Client's due diligence of the specific product.

2. GENERAL RISKS

Financial instruments are not the same as bank deposits and, when purchasing them, the investor assumes the risk that, due to adverse conditions in global capital markets, changes in the business or creditworthiness of the issuer of the financial instrument, money and currency market conditions, interest rate movements, it will achieve a lower price on the sale of the financial instrument than was paid for it at the time of purchase.

The price of a financial instrument or the value of a Client's investment may also depend on the global political situation, the political situation in a region or country, natural and ecological disasters, wars and other emergencies, crises and other changed circumstances, and any other causes.

The investor is exposed to the risk of default by the issuer; and other risks arising from market conditions, as described below.

2.1. Market risk: The value of Financial Instruments changes over time, reflecting the supply and demand for each financial instrument, but a given market value does not necessarily reflect the actual value of a particular financial instrument.

2.2. Currency or exchange rate risk: is the risk that the currency in which Financial Instruments held by a Client are issued will lose value against its home currency.

2.3. Liquidity risk: is the risk that, due to a lack of demand, which may be influenced by a number of different factors, a financial instrument cannot be sold at a given point in time, or can only be sold at a lower price or on weaker terms.

2.4. Credit risk: is the risk that the issuer of a financial instrument or its counterparties will fail to meet their obligations under the financial instrument at or at any time after the payment due date. This risk includes the risk that the value of the financial instrument will decline as a result of a higher probability of default, most commonly reflected in a downgrade of the credit rating of the debt instruments of such an issuer.

2.5. Interest rate risk: is the risk inherent to bonds and other debt securities whose value varies according to movements in interest rates. When interest rates rise, the value of debt investments generally falls; conversely, when interest rates fall, the value of debt investments generally rises. Debt securities with higher interest rate sensitivity and longer maturities tend to be more profitable, but their value tends to fluctuate more.

2.6. Operational risk: is the risk of loss due to the following circumstances: inadequacy or malfunctioning of internal processes, other malpractice by persons within the Company's internal business area, inadequacy or malfunctioning of systems within the Company's internal business area, or external events or actions.

2.7. Inflation risk: is the risk that the real return on an investment will be lower than expected, meaning that the purchasing power of savings at the time of withdrawal (cashing in) will be lower than expected.

2.8. Regulatory change risk: is the risk that the Republic of Slovenia or the countries in whose capital markets the Client invests assets may experience an adverse change in regulations, including a change in tax regulations and any type of restriction on capital flows with foreign countries, which may adversely affect both the liquidity and the value of investments in the capital markets.

3. A DESCRIPTION OF THE FINANCIAL INSTRUMENTS AND SPECIFIC RISKS

The Company offers the possibility to invest only in options, futures and perpetual swaps, which are associated with risks described below.

DERIVATIVES

Derivatives are financial instruments whose value is determined based on a certain reference value, e.g. based on the value of a stock, bond, currency, interest rate, commodity, etc. Examples of derivatives are options, exchange contracts, contracts for difference in price, standardized futures contracts.

Derivative financial instruments that can be traded by the Clients are tied to the value of cryptoassets.

Due to the complexity of trading with derivatives, they are not suitable for every investor. Most investors who trade derivatives lose all their invested funds.

In addition to the general risks, derivative financial instruments also contain additional risks:

Trading with leverage: Derivative financial instruments can carry a high degree of risk, as they often involve leverage, as a result of which even a small movement in the price of the underlying instrument results in a much larger movement, either in investor’s favour or against it, in the price of the derivative or in the value of the investor's open position. If the investor's trading direction opposite to the market movements, this can result in a significant loss. Depending on the extent of potential loss, investors must either provide additional funds to be used as collateral or reduce their open positions. If, in the event of a loss, investors fail to provide additional funds as collateral, investor funds that have been designated as collateral may be used to cover losses.
Risk of market fluctuations: The price of derivatives depends on market movements and the price of the underlying instrument. Fluctuations in the market of the underlying instrument may cause unpredictable changes in the value of the derivative, which may lead to losses.
Risk of increasing the required equity: With derivatives, it is not necessary to deposit the entire value of the transaction before purchase, but it is sufficient to maintain a certain amount in the margin account. If the price of the underlying instrument changes significantly, additional margin may be required from the investor in order for the investor to maintain his open position. If additional margin is not provided, the position may be liquidated, resulting in losses for the investor.
Liquidation risk: If the price of the underlying instrument moves in the opposite direction to the investor's trading direction, a liquidation of the position may occur. In such a case, the investor may suffer a loss. In case of the liquidation of the position, the investor may lose all or some of the assets that it has designated as collateral. The investor is not responsible for losses beyond the value of the assets it designated as collateral. These losses are paid by profitable investors with the so-called processes of socialization of losses. Under certain market conditions, particularly due to the high degree of market volatility and risk of illiquidity in the derivatives market, it may prove difficult or impossible to close out a market position above the liquidation level. For example, if there is insufficient liquidity in the market or if there are technical problems with the orders that investors are trying to place, it may not be possible to manage the risk of the positions. Placement of conditional orders, such as so-called a "Stop-Limit" order does not necessarily guarantee loss limitation to the desired level, as these types of orders are not guaranteed, and market conditions may make it impossible to execute such orders.
Socialization of losses: Investors who trade with profit may have part of their profits confiscated and distributed among investors who trade at a loss in accordance with the rules of the MTF. This can happen during the periodic settlement, which is carried out several times a day.
Index Risks: Derivatives traded on a trading platform may be linked to an index price to calculate the price of the underlying instrument. The index is provided by an external data service provider that uses data from third-party trading platforms. Changes in the value and volume of transactions on such trading platforms and potential errors in the calculation of the index may affect the profit, loss, margins and settlement of trades on the trading platform. The conclusion of a transaction with a derivative does not represent the purchase or sale of an underlying instrument or any component of the index. The return on a derivative transaction may not reflect the return that the investor would have if the underlying instrument were sold or purchased. The methodology for the calculation and publication of each index may lead to deviations from other publicly available indices and prices of the underlying instruments, therefore the index value used may differ significantly from other publicly available values. The composition, calculation and security measures included in each index are subject to change at any time without notice and are at the sole discretion of the data service provider. The composition of the indices or the methodology for calculating the index value may change at any time. A change in the composition of an index may affect its value, as a newly added component may perform significantly worse or better than the component it replaces. Any change in the methodology used may affect the value of the index and may lead to losses or gains for the investor on the trading platform. The Company is not responsible for losses that the investor suffers (directly or indirectly) due to a change in the methodology or composition of the index. The Company can also change, stop or terminate the use of the index at any time. The Company may act in relation to indices without regard to the interests of investors on the trading platform.
Supported derivatives: There is a risk that any derivative may be delisted or the trading platform may cease to support its trading for any reason. The Company does not own or control the underlying protocol or technology that governs the operation of the cryptocurrency as the underlying instrument. The protocol or technology that enables the existence of the underlying instrument may change or cease to function due to changes made to the properties and functions of the underlying protocol or technology, cyber-attack, and similar events. These changes protocols of cryptocurrencies may include, but are not limited to, "fork", "rollback", "airdrop" or "bootstrap". Any such change or error in the applicable underlying protocol may affect the availability and value of the derivative, underlying and/or position and may result in a partial or total loss of the investor's funds. The Company is not responsible for such changes at the level of the protocols of the underlying instruments and does not assume any responsibility for any losses arising from such changes. The investor is responsible for following such changes, and the Company has the sole and absolute right not to support any change at the protocol level of a given cryptoasset. The Company may stop supporting a derivative on the trading platform at its sole discretion.

ANNEX 2: MTF Rulebook

In accordance with point 1.8 of Part II of these GTCs, the Client acknowledges and agrees to be bound by the following provisions of the MTF Rulebook. Any capitalised terms used in the below shall have the meaning provided in the MTF Rulebook.

Rule [2.19]

All Members agree and understand that if Socialized Losses Process is initiated, any profits they have made with their unsettled positions could be used by the Company in line with the Rule 18.11. of this Trading Rulebook.

Rule [2.20]

The Client agrees that they will not hold the Company liable for any losses or foregone profits that they may suffer as a result of the Company executing the Socialized Losses Process.

Rule [2.21]

All Members understand and agree that if they, because of erroneous calculations or because of any other mistake made by the Company, receive fiat money or crypto assets that they should not have received in accordance with this Trading Rulebook or are not debited for a loss for which they should have been, they will return such fiat money and/or crypto assets or repay such loss to the Company

Rule [2.22]

All Members understand and agree that in the case of an event described in the previous paragraph, the Company is authorised by the Rules of this Trading Rulebook to the extent necessary (i) to recover the fiat money or crypto assets that were mistakenly given to a Member and/or (ii) to cover the losses for which a Member was not properly debited to either:

transfer fiat money from a Member’s Client cash account to its own account (that is if fiat money is deposited with the Company); and/or
authorise a transfer fiat money or crypto assets on behalf of its Member from a Member’s account with another Bitstamp Entity to its own account (that is if fiat money or crypto assets are held with another Bitstamp Entity).

Rule [2.24]

The Client undertakes neither to create nor to have outstanding any security interest or other encumbrance over, nor to agree to assign or transfer, any assets which constitutes Collateral, except for a security interest expressly consented to by the Company in writing.

Rule [2.25]

The rules and procedures the Company applies regarding the determination of Profit & Loss, Collateral, Margin Requirements, Liquidation Process and Socialized Losses Process are identical for all Clients.

Rule [2.27]

All members understand and agree that the Company will close a position if so mandated by law, regulatory authority or enforcement agencies. The Company will close any such position by liquidating it in accordance with Rules 18.3 to 18.6 of this Trading Rulebook. The Company will start liquidating positions as soon as possible after it becomes aware that a position must be closed.

Rule [10.3]

When an Order is matched in Matching Engine with another Order, then the Clients whose Orders were matched become Counterparties to a contract that is deemed to be agreed between them. The contract is deemed to be agreed in line with:

specifications of a Financial Instrument for which a contract is deemed to be concluded, and
specifications of the Orders that were matched.

Rule [17.4]

It is the Client's responsibility to constantly monitor its Position Equity and to assure that it is equal to or higher than its Maintenance Margin Requirement, for instance by allocating additional Collateral to the Derivatives Trading Account or closing out part or all of one’s Position.

Rule [18.1]

If the Client's Equity falls below Maintenance Margin Requirement for an open Position (Isolated Margin Mode), Derivatives Trading Account (Cross Margin Mode) or portfolio as a whole (Portfolio Margin Mode) the Company will:

reject all new Orders of the Defaulting Member;
cancel all open Orders of the Defaulting Member. Notwithstanding the previous sentence, if Isolated Margin Mode is used, then only exposure-increasing Orders will be cancelled.
start to liquidate the Affected Position(s).

Rule [18.2]

The Client authorises and instructs the Company, as part of the liquidation procedure to use any or all Collateral that was assigned to their Affected Position(s) (or those of their Clients, as applicable). On that basis, each Client instructs the Company to use or apply as much of Collateral as is needed or required by the Trading Rulebook to cover all loses arising from any Affected Position. If crypto assets were posted as Collateral, then the Company has the right to sell them on the trading platform of its own choosing or on the OTC market. If fiat currency was posted as Collateral, then the Company is authorised to convert such fiat currency into another fiat currency at whatever spot exchange rate is determined by the Company in a commercially reasonable manner in order to cover all losses arising from any Affected Position(s).

Rule [18.3]

Where there is an Affected Position that breaches the Maintenance Margin Requirement but not Close-out Margin Requirement, the Company will try to liquidate such Affected Position in part or whole (at the discretion of the Company but such that the Maintenance Margin Requirement will be satisfied if the Immediate-or-Cancel Order described below is filled) by creating, on behalf of the Member or Position Owner (as applicable), an Immediate-or-Cancel Order with a limit price equal to the Bankruptcy Price of Affected Position(s).

Rule [18.4]

Each such Order will be filled at the best available price(s) at the time of its creation and may or may not completely liquidate the Defaulting Member’s Position. Whether or not the Defaulting Member's Position is fully liquidated depends on the other Orders in the Order Book at the time the Immediate-or Cancel Orders are to be matched.

Rule [18.5]

If any Collateral is left in the Derivatives Trading Account after the Defaulting Member's Position is fully liquidated (or partially liquidated with the effect that the Maintenance Margin Requirement is satisfied), this Collateral can, subject to the terms of this Trading Rulebook, be used to open a new Position or withdrawn.

Rule [18.6]

Each Member authorises and instructs the Company, if an Affected Position is not liquidated in accordance with the procedure described in Rules 18.1 to 18.4 (or is partially liquidated such that the Maintenance Margin Requirement is not satisfied) or if Member’s Equity falls below Close-out Margin Requirement (but is not negative), to liquidate the full Affected Position on behalf of the Member or Position Owner (as applicable) by:

transferring any surviving Affected Position to Liquidity Providers in line with rule 18.7 of this Rulebook18.8; or
liquidating any surviving Affected Position on the MTF in line with rule 18.8 of this Rulebook; or
closing any surviving Affected Position through the auto deleveraging process in line with rule 18.9 of this Rulebook.

Rule [18.7]

If an Affected Position is transferred to one or more Liquidity Providers, then it is transferred to such Liquidity Provider(s) at the assignment price, which is equal to the Bankruptcy Price of Affected Position(s) if Bankruptcy Price is more favourable for the assignee than Mark Price, otherwise at Mark Price.

Rule [18.8]

If an Affected Position was not successfully transferred to Liquidity Providers as per Rule 18.7, then the Company will try to liquidate such Affected Position(s) in whole (at the discretion of the Company but such that the Maintenance Margin Requirement will be satisfied if the Immediate-or-Cancel Order described below is filled) by creating, on behalf of the Member or Position Owner (as applicable), an Immediate-or-Cancel Order with a limit price equal to the Bankruptcy Price of Affected Position(s) with a buffer provided by the Insurance Fund, which allows Affected Positions to be liquidated at a price worse than the Bankruptcy Price and the difference will be covered by the Insurance Fund. Insurance Fund can cover the losses even if it, temporarily, needs to go into negative asset balance, which will be recovered if needed by Socialized Losses Process.

Rule [18.9]

If liquidation on the MTF was unsuccessful then any remaining Affected Positions will be closed against the opposite side traders (that is through an auto deleveraging process). The opposite side traders are selected based on the P&L they generated on the positions corresponding to the Affected Positions within the last settlement period and the leverage at which they are trading. When an Affected Position is closed against one or more opposite side traders, the Company will cancel all outstanding Orders related to a Position that was fully or partially used within the auto deleveraging process.

Rule [18.10]

If an Affected Position is fully closed and all collateral assets that are not the settlement currency, have been liquidated into the settlement currency, yet there exists uncovered loss from closure of the Affected Position, then Insurance Fund will be used to cover this excess loss. Insurance Fund does that even if it, temporarily, needs to go into negative asset balance, which will be recovered if needed by Socialized Losses Process.

Rule [18.11]

If between two settlements more than thirty percent (30%) of the Insurance Fund’s funds is used in line with Rules 18.8 and 18.10 of this Trading Rulebook, then any funds used that exceeded such thirty percent (30%) threshold will be returned to the Insurance Fund. Furthermore, if within a 24-hour period more than fifty percent (50%) of the Insurance Fund’s funds is used, then any funds used that exceeded such fifty percent (50%) threshold will be returned to the Insurance Fund. These funds will be returned to the Insurance Fund by reducing the profits of Members that either closed a profitable Position within the current settlement period or still have an open profitable Position at a settlement time. Unless otherwise determined by the Company in its sole and absolute discretion (such that smaller Positions bear a greater share of their losses than would apply on a pro rata basis), this will be done proportionally across all Financial Instruments admitted to trading. This is called Socialized Losses Process. When the funds are returned to the Insurance Fund by reducing the profits of Members that still have an open profitable Position, the Company will cancel all outstanding Orders related to a Position that was fully or partially used within the auto deleveraging process.

Rule [19.1]

Settlement occurs every fifteen (15) minutes. In extraordinary circumstances the settlement might be postponed at the discretion of the Company.

Rule [19.2]

At settlement any fees that are currently tied to the position and have not yet been settled will be deducted by the Company.

At settlement:

any outstanding funding payments (applies only to perpetual swaps); and
Profit & Loss

will be calculated and settled between the two counterparties of an open Position. The Company will instruct that Collateral will be transferred from the Collateral of each Position Owner or Member that has made a Loss to the corresponding Position Owner or Member that has made a Profit at the applicable account at the Company or Bitstamp Entity. As a result, the Collateral of the paying Position Owner or Member will be decreased and Collateral of the receiving Position Owner or Member will be increased.

Rule [19.3]

At settlement, all positions that were, within a respective settlement cycle, closed by a reverse trade (as per Rule 16.1. of the Trading Rulebook) will be settled at the Price at which the reverse Trade was made. When settling such a position, any previously settled profit or loss related to that position will not be subject to settlement again. Instead, only the profit or loss generated between the last settlement and the closing of the position will be settled.