Investor Notice:

The digital financial derivatives innovative second contract transaction (hereinafter referred to as the "innovative second contract transaction") service provided by the Coinbase trading platform (hereinafter referred to as the "platform") has certain risks. Therefore, users can open and use the innovative second contract. Trading services require you to carefully read and agree to this agreement. Your use will be deemed to be a complete understanding and agreement of this agreement and the risks of innovative second contract transactions.

Preface

This agreement aims to reveal the investment risks of innovative second-contract transactions in digital assets to investors, and to help investors evaluate and determine their own capabilities. In view of the existence of investment risks, investors should read this agreement carefully before conducting transactions. They must ensure that they understand the nature and rules of innovative second-hand contract transactions, and base their investment experience, goals, financial status, and risk-taking ability on their own. You can decide for yourself whether to participate in innovative second contract transactions. Investors should seek financial, legal and other independent professional advice before applying to carry out innovative second-to-second contract transactions.

Innovative second contract design concept

Innovative second-to-second contract trading is a brand-new digital asset risk hedging financial derivative. It is simple, flexible, and highly operable, and provides investors with a brand-new digital asset risk hedging product.
Investors can use innovative second-to-second contract transactions to execute transactions in specific directions with limited and controllable risk exposure; on the premise of clear expected returns, innovative second-to-second contract transactions have the characteristics of transaction diversity and potential multiplicity of returns; each transaction When purchasing an innovative second contract, investors also clearly know the amount of income they may receive.
As we all know, digital assets are financial derivatives with extremely violent price fluctuations. Among the risk hedging financial derivatives currently on the market, such as contract futures, etc., they cannot completely hedge digital assets due to constraints such as fairness, transaction volume, and time cost. Risks arising from price fluctuations.
The innovative second-to-second contract trading not only has the risk management and portfolio investment advantages of the non-linear profit and loss structure of traditional financial market second-to-second contract trading, but also combines the characteristics of digital assets to provide investors with professional risk management strategies in high-risk markets.
Innovative second contract trading rules

1. The innovative second contract uses the relevant prices of 5 well-known digital asset exchanges in the world to generate the mark price of the corresponding currency. The index composition and weight are as follows:

Trading platform Weight proportion Benchmarking unit
Binance 20% USDT
Kraken 20% USD
Okex 20% USDT
Huobi 20% USDT
Coinbase 20% USD
2. The prerequisite for the mark price to take effect is: the effective weight exchange is ≥ 3, otherwise it will be deemed invalid. This platform will modify the index composition and weight from time to time based on the real-time transaction data of the five major exchanges to ensure the validity and fairness of the data, and publicize it by issuing adjustment announcements. Note: This platform will issue an adjustment announcement to publicize any changes in the index composition and weight of marked prices in innovative second contract transactions.

3. Since the price accuracy of the five major exchanges has not been unified, the system has agreed on the price accuracy of second contract products. If the price accuracy of a certain exchange is inconsistent with the system agreement, the decimal place rounding method will be adopted. For example: the price accuracy of the BTC second contract is 2 digits. If the price of a certain exchange is 9000.1234, then after processing, the price participating in the effective calculation is 9000.12.

4. Current second contract period: divided into 30 seconds, 60 seconds, 90 seconds, 180 seconds, 360 seconds, 720 seconds, second contract.

5. Yield: divided into 30 seconds/40%, 60 seconds/50%, 90 seconds/60%, 180 seconds/70%, 360 seconds/80%, 720 seconds/90%

The expected rate of return on second contracts will be clear when investors purchase innovative second contracts.
Users can hedge market risks as needed on the premise of determining the expected rate of return.
For example: if you buy 100USDT for 30 seconds and look at the multi-second contract, the return rate is 40%. If the delivery result of the second contract is up, the profit will be 140USDT (including the principal).

6. Delivery time: 0:00 UTC time is the start of the second contract of the day.

For example: 30 seconds, the start time of the second contract is 00:00:00, the delivery time is 00:01:00, and so on.

7. Purchase time

For example: the start time of the current 30-second contract is 00:30:00, the delivery time is 00:31:00, and so on.

8. Abnormal situation handling: If data acquisition fails due to network delays or interruptions, third-party exchange data abnormalities, etc., or data calculation errors occur due to trading system abnormalities, etc., these situations may cause the second contract transaction to be unable to be completed. , you understand and agree that the second contract transactions affected by the above situation will be deemed as invalid transactions, and the digital assets used to purchase the above second contract will be returned to the user's trading account free of charge.

9. Amount limit: Each currency has a minimum purchase amount and a maximum purchase amount limit. The specific amount limit is subject to the actual transaction page.

10. Delivery results: Coinbase Exchange will implement the following innovative second contract transaction delivery criteria starting from 00:00 on May 28, 2020 (UTC -4):

Delivery Seconds Contract Bullish
30S |Increase|＞0.005% |Decrease|＞0.005%
60S |Increase|＞0.03% |Decrease|＞0.03%
90S |Increase|＞0.04% |Decrease|＞0.04%
180S |Increase|＞0.05% |Decrease|＞0.05%
360S |Increase|＞0.06% |Decrease|＞0.06%
720S |Increase|＞0.07% |Decrease|＞0.07%
The currently available types of innovative second contract transactions are bullish and bearish. After this adjustment to the judgment standards, the judgment standards for ups and downs for different delivery period sessions will be different. Please refer to the above table.

Bullish: Corresponding to the price increase of the currency at the time of delivery of the transaction relative to the beginning, and the absolute value of the increase exceeds the proportion shown in the table;

Bearish: The price corresponding to the currency at the time of delivery of this transaction falls relative to the beginning, and the absolute value of the decline exceeds the proportion shown in the table;

Note: If you buy second contracts before the implementation of this new standard, delivery and settlement will still be carried out in accordance with the original rules.

Existing risks

1. Risk of price fluctuations

As a special digital asset financial derivative with investment value, the price of innovative second-to-second contract trading is affected by many factors and fluctuates violently. It is difficult for investors to fully grasp it in actual operations, so there is the possibility of investment mistakes. If risks cannot be effectively controlled, investors may suffer greater losses and investors must bear all resulting losses alone.

2. Transaction risk

(1) Once the transaction submitted by an investor in the trading system of this platform is completed, it is irrevocable. Investors must accept the risks that this method may bring.

(2) This platform will not guarantee profits to investors, and will not share profits or share any risks with investors.

3. Policy and regulatory risks

Innovative second-to-second contract transactions may face policy regulatory risks in different countries or regions. Investors should understand the regulatory policies of the trading region before trading and make prudent judgments based on this premise.

4. Other possible risks

(1) Relevant trading rules for innovative second-to-second contract transactions, including but not limited to index composition and weight adjustment, expiration time, product rules, etc. may be modified based on actual business operations. If the platform needs to revise relevant trading rules due to special circumstances Modifications are deemed to have been fulfilled after the adjustment announcement is made. Users need to check and adjust trading strategies in a timely manner. Any gains or losses that may arise or may arise as a result shall be enjoyed or borne by the users themselves.

(2) There are also risks in using Internet-based trading systems, including but not limited to failure of software, hardware and Internet links. This platform cannot control the reliability and availability of any Internet, so this platform will not bear any responsibility for network distortion, delays and link failures.

(3) All transaction calculation results will be verified by this platform, and all calculation methods have been published on this platform’s website. However, this platform cannot guarantee that the use of the website will not be interrupted or error-free.

special attention items:

1. Innovative second-to-second contract trading is a very risky digital asset financial derivative. Investors must fully understand the basic knowledge and related risks of financial derivatives trading before participating, as well as the relevant risks involved in participating in innovative second-to-second contract trading. business rules, carefully read and agree to the "Coinbase User Agreement" and "Innovative Second Contract Trading Agreement", and have been aware of and fully independently bear all transaction risks caused by strong fluctuations in digital asset prices.

2. The above risk matters are only listed in nature and cannot exhaustively list all risk factors related to digital asset derivatives transactions. Investors should also carefully understand other possible risk factors before participating in digital asset derivatives transactions. and mastery. If, based on reasonable business judgment, this platform believes that you have violated this Agreement, or that you are not allowed to use the services provided by this platform according to the laws of the country or region where you are located, or that you use the services provided by this platform to engage in illegal and criminal activities, this platform has the right to temporarily Or permanently freeze your account, or suspend or terminate your use of all or part of the digital asset trading services provided by this platform. ​

3. The prerequisite for the mark price to take effect is: the effective weight exchange is ≥ 3. Otherwise, the second contract transaction may not be completed. You understand and agree that the second contract transaction affected by the above situation will be deemed as an invalid transaction and used for purchase. The digital assets of the above second contract will be returned to the user's trading account free of charge. This platform will modify the index composition and weight from time to time based on the real-time transaction data of the five major exchanges to ensure the validity and fairness of the data, and publicize it by issuing an adjustment announcement.

4. Any opinions, news, discussions, analyses, prices, suggestions, chat room content, information, and KOL articles on this platform are general market comments and do not constitute investment advice. This platform is not responsible for any direct or indirect losses caused by any user's reliance on such information, including but not limited to any loss of profits.

5. It is prohibited to use this platform to conduct malicious market manipulation, unfair transactions and other unethical or illegal trading activities. If such incidents are discovered, this platform will take action against all malicious price manipulations, malicious influence on the trading system and other unethical or illegal trading activities. Users take preventive protective measures such as warnings, restricting transactions, and closing accounts, and do not assume all responsibilities arising therefrom, and reserve the right to pursue liability from relevant persons.

6. Monitor transactions

The platform will set and adjust the maximum daily transaction and currency withdrawal limits based on security and actual transaction conditions;
If transactions frequently occur in a certain registered user, or there are unreasonable circumstances in a certain transaction or certain transactions, the platform's professional team will evaluate and determine whether they are suspicious transactions;
When the platform determines that a certain transaction or certain transactions are suspicious transactions based on its own judgment, the platform may take restrictive measures such as suspending such transactions, rejecting such transactions, or even canceling such transactions that have occurred, and at the same time report to the supervisor Department reports without further notice;
This platform reserves the right to reject registration applications from investors in jurisdictions that do not comply with international anti-money laundering standards or who may be considered politically exposed persons. At the same time, based on its own reasonable business judgment, this platform reserves the right to suspend or terminate any suspicious transactions at any time, and does not assume any responsibility or obligation as a result