ADDITIONAL TERMS APPLICABLE TO STOCK PERPETUALS

ADDITIONAL TERMS APPLICABLE TO STOCK PERPETUALS

All capitalized terms and references used in these Additional Terms that are defined and construed in the Investor Business Terms (“Terms”) and/or the Additional Terms applicable to the Perpetual Futures Products (“Perpetual Futures Additional Terms”) but are not defined or construed in these Additional Terms shall have the same meaning and construction in these Additional Terms. For the avoidance of doubt, where a term is defined both in the Terms, the Perpetual Futures Additional Terms and in these Additional Terms, for the purposes of these Additional Terms only, the definition in these Additional Terms shall prevail.
The terms set out hereunder shall be supplemental to and are to be read together with the Terms and the Perpetual Futures Additional Terms. In the event of any conflict or inconsistency between the provisions set out under the Terms, the Perpetual Futures Additional Terms and these Additional Terms in relation to Stock Perpetuals, the terms in these Additional Terms shall prevail unless expressly stated otherwise.
There are additional specific risks that apply to trading in Stock Perpetuals, which are set out in the Risk Disclosures for Stock Perpetuals as may be amended from time to time. You must have the financial ability, sophistication, experience, risk tolerance, and willingness to bear the additional specific risks associated with Stock Perpetuals and Perpetual Futures Products more generally. Stock Perpetuals may only be made available by HMF to Clients who satisfy HMF’s applicable eligibility, onboarding, Investor Classification, suitability, product approval and knowledge assessment requirements, including any category specific requirement imposed by HMF or Applicable Laws. There is a risk that you may lose all of your investment. Before acquiring a Stock Perpetual, you should carefully review your financial situation, experience and objectives for engaging in such transactions, your ability to bear risks and other relevant circumstances to determine whether such products are suitable for you. You should consult professional advisors (including legal, tax, financial and accounting) as may be appropriate. By entering into any Transaction for Stock Perpetuals, you agree that you assume all the risks of your Transactions and that HMF and/or its group Affiliates will not be responsible for any losses you may suffer, except to the extent required under Applicable Laws.
The Stock Perpetuals Product is intended for Clients who are authorised to access the Products and Services. It is not intended for Clients who are subject to any applicable restrictions. You are responsible for familiarising yourself with and complying with any restrictions and/or requirements regarding the access and use of the Products and Services offered by HMF in each country or region from which you access them (or, where applicable, in which the Products or Services are accessed on your behalf). HMF reserves the right to modify, change, or impose additional restrictions on your access and use of the Products and/or Services at any time, at its sole discretion, without prior notification. For the avoidance of doubt, access to Stock Perpetuals may be limited or restricted by reference to the Client’s Investor Classification, suitability outcome, jurisdiction, experience, financial position, risk tolerance, knowledge assessment results, operational profile and such other criteria as HMF may determine from time to time. Different leverage limits, collateral requirements, margin methodologies, position limits, liquidation parameters and product access rights may apply to different categories of Clients in relation to Stock Perpetuals.

1.    STOCK PERPETUALS PRODUCT
1.1.    The Stock Perpetuals Product is a product that allows the Client to trade perpetual futures contracts referencing certain equities, equity indices, baskets of equities, exchange traded products or other equity linked benchmarks (“Underlying Equity References”) through the HashKey Exchange (collectively, “Stock Perpetuals”). Stock Perpetuals are cash settled derivative products settled and/or margined only in USDT or another Virtual Asset permitted under Applicable Laws and compliant with the VARA Rulebooks, as specified by HMF from time to time, and do not confer any right to physical delivery of, or custody over, the relevant Underlying Equity References.

1.2.    Stock Perpetuals are perpetual futures contracts with no fixed expiry date. Positions in Stock Perpetuals may be maintained for an indefinite period, subject to applicable margin requirements in USDT or another Virtual Asset permitted under Applicable Laws and compliant with the VARA Rulebooks, as specified by HMF from time to time, Funding payments, leverage and position limits, and HMF’s rights to liquidate, close out, novate, transfer, restrict, suspend or terminate Positions in accordance with the Terms, the Perpetual Futures Additional Terms, these Additional Terms and the Rules.

1.3.    Stock Perpetuals are a subset of the Perpetual Futures Products made available by HMF. Unless expressly stated otherwise in these Additional Terms or in the applicable product specifications, all provisions of the Perpetual Futures Additional Terms that apply to Perpetual Futures Products (including, without limitation, provisions relating to eligibility, onboarding, Investor Classification, suitability, Collateral, margin, leverage limits, Mark Price, Funding, liquidation, the Liquidation Waterfall, the Insurance Fund and Auto Deleveraging) shall apply equally to Stock Perpetuals.

1.4.    By using the Services and entering into a Transaction for Stock Perpetuals, which HMF may in its absolute discretion make available to the Client from time to time, you agree to be bound by these Additional Terms in addition to the Terms and the Perpetual Futures Additional Terms. The Client acknowledges and agrees that access to Stock Perpetuals is subject to HMF’s eligibility, onboarding, Investor Classification, suitability, product approval and knowledge assessment requirements from time to time, and that HMF may refuse, restrict, suspend or withdraw access to Stock Perpetuals where those requirements are not met or are no longer met.

1.5.    The Client also acknowledges and agrees that it has sufficient investment knowledge, financial expertise and experience, and the capacity to take on the increased risks arising from trading Stock Perpetuals, including the risks specifically identified in the Risk Disclosures for Stock Perpetuals and the general risk disclosures applicable to Perpetual Futures Products. If the Client is uncomfortable with the associated risks, including but not limited to the additional specific risks associated with Stock Perpetuals, the Client should not trade Stock Perpetuals.

1.6.    Trading or holding a Position in Stock Perpetuals does not give the Client any legal or beneficial ownership, title, interest or claim in or to any Underlying Equity Reference or any issuer, index sponsor, fund manager, exchange or other third party associated with such Underlying Equity Reference. In particular, the Client:

(a)    does not acquire any voting, governance, meeting or similar rights in respect of any issuer, index sponsor or fund;

(b)    is not entitled to receive any dividends, interest, distributions, rights, warrants, subscription rights, conversion rights, redemption rights, or other corporate action entitlements with respect to any Underlying Equity Reference, except to the limited extent, if any, that HMF elects to reflect the economic impact of such items in the pricing or contract parameters of the relevant Stock Perpetual; and

(c)    has no right to physical delivery, conversion, redemption, substitution or exchange of any Stock Perpetual for any Underlying Equity Reference or any other security or instrument.

1.7.    Stock Perpetuals are not issued, sponsored, guaranteed or otherwise endorsed by any issuer of the Underlying Equity Reference, any index sponsor, any national securities exchange or any governmental, regulatory or supervisory authority. Without prejudice to any classification that may be made by a competent authority under Applicable Laws, Stock Perpetuals are intended to be treated and offered as derivative contracts referencing equity linked benchmarks, and are not intended to constitute the issuance, offer or sale of the Underlying Equity References or any other securities, unless otherwise specified in the relevant product documentation.
2.    REFERENCE PRICE, MARK PRICE AND PRICING METHODOLOGY
2.1.    Each Stock Perpetual shall reference a price, index, benchmark or formula (the “Reference Price”) determined by HMF in its discretion and disclosed in the relevant product specifications, mark price methodology and other Website disclosures for that product.

2.2.    Without limitation, the Reference Price for a Stock Perpetual may be derived from one or more of the following:

(a)    prices or quotations for the relevant Underlying Equity References on one or more designated trading venues or data sources;

(b)    composite or proprietary indices constructed by HMF or third party providers using prices of one or more Underlying Equity References;

(c)    adjusted quotations that take into account market liquidity, bid ask spreads, volatility, currency conversion, corporate actions and other market factors; and

(d)    fall back or contingency pricing methodologies in the event of market disruption, data unavailability, suspension or other abnormal market conditions affecting the Underlying Equity References or the relevant Reference Markets.

2.3.    HMF may determine, amend and publish from time to time the methodologies and parameters relevant to the calculation of the Reference Price, the Mark Price, Funding Rate, Initial Margin, Maintenance Margin, Risk Ratio thresholds, position limits and other risk control and pricing parameters applicable to Stock Perpetuals, including the Virtual Asset in which Stock Perpetuals are settled and/or margined, in accordance with its internal policies and Applicable Laws.

2.4.    The Client acknowledges that the Reference Price and Mark Price for any Stock Perpetual may diverge, potentially materially and for sustained periods, from:

(a)    the spot price of the relevant Underlying Equity References on their primary exchanges;

(b)    prices of related instruments traded on other venues (including cash equities, options, futures, exchange traded products or OTC derivatives); or

(c)    other indices or benchmarks purporting to track the same or similar underlying equities.

HMF does not guarantee that any Reference Price or Mark Price will accurately track or replicate the spot price of the Underlying Equity References.
3.    CORPORATE ACTIONS AND ADJUSTMENTS
3.1.    Corporate actions or events affecting an Underlying Equity Reference may include, without limitation, cash or stock dividends, bonus issues, rights issues, stock splits or reverse splits, reorganisations, spin offs, mergers, takeovers, delistings, insolvency proceedings, restructurings, special dividends or any similar events (each a “Corporate Action”).

3.2.    HMF may, in its discretion and in accordance with its applicable methodologies and Website disclosures, determine whether and how to adjust the specifications, Reference Price, contract multiplier, tick size, Collateral requirements, position limits, Funding Rate and/or other terms of any affected Stock Perpetual in connection with a Corporate Action, provided that Stock Perpetuals shall be settled and/or margined only in USDT or another Virtual Asset permitted under Applicable Laws and compliant with the VARA Rulebooks, as specified by HMF from time to time.

3.3.    HMF shall not be obliged to make any particular adjustment, or to make any adjustment that would fully reflect the economic effect of a Corporate Action on the Underlying Equity References. Different Corporate Actions may be treated differently, and the treatment may vary by product, Client category or jurisdiction.

3.4.    Where HMF considers that a Corporate Action or series of events materially affects, or may materially affect, the price, structure, liquidity or viability of a Stock Perpetual, HMF may, in addition to or instead of applying adjustments, take any action permitted under the Terms, the Perpetual Futures Additional Terms and these Additional Terms, including, without limitation, suspending trading, imposing additional risk controls, restricting order types, reducing or closing Positions, terminating the offering of the affected Stock Perpetual, or implementing alternative settlement measures.

3.5.    HMF may publish on the Website or by other designated channels, where practicable and subject to Applicable Laws, information regarding any material adjustments to Stock Perpetuals arising from Corporate Actions, including the effective date and the nature of such adjustments.
4.    TRADING HOURS, REFERENCE MARKETS AND MARKET DISRUPTION
4.1.    Stock Perpetuals may trade on the HashKey Exchange on a continuous or extended hours basis, which may differ from the trading sessions, opening hours, holidays and trading suspensions of the primary markets or listing venues for the relevant Underlying Equity References (the “Reference Markets”).

4.2.    The Client acknowledges that:

(a)    liquidity, spreads and volatility in Stock Perpetuals may differ significantly from those in the Reference Markets, including during pre market, after hours or weekend periods;
(b)    price gaps, jumps or discontinuities may occur when Reference Markets close or re open, or when significant news or events occur outside the regular trading hours of the Reference Markets; and

(c)    market disruption events, trading halts, suspensions, limits, circuit breakers, regulatory actions or other events affecting the Reference Markets may affect the pricing, liquidity, or tradability of Stock Perpetuals and may result in HMF taking default management, liquidation, adjustment or suspension actions in accordance with the Terms, the Perpetual Futures Additional Terms and these Additional Terms.

4.3.    HMF may implement specific parameters, controls and fall back mechanisms for Stock Perpetuals in the event of market disruptions affecting the Underlying Equity References, including without limitation: temporary or extended trading halts, changes to order types or leverage, widened price bands, tightened position limits, or early termination or settlement of affected products.
5.    ELIGIBILITY, PRODUCT ACCESS AND LIMITS FOR STOCK PERPETUALS
5.1.    Without prejudice to the general eligibility and access provisions for Perpetual Futures Products set out in the Perpetual Futures Additional Terms, access to Stock Perpetuals is subject to such additional eligibility, onboarding, Investor Classification, suitability, product approval, knowledge assessment, jurisdictional and other requirements as HMF may impose from time to time.

5.2.    HMF may, in its sole discretion and subject to Applicable Laws, restrict or prohibit access to Stock Perpetuals in respect of certain jurisdictions, Client categories, operational profiles or other criteria. HMF may impose lower leverage limits, higher margin requirements, tighter position limits, narrower product access or additional conditions for Stock Perpetuals than for other Perpetual Futures Products.

5.3.    HMF may, at any time and without prior notice where permitted by Applicable Laws, refuse to accept Orders, cancel Orders, restrict trading, reduce or close Positions, or suspend or terminate access to Stock Perpetuals where it considers this necessary or desirable for risk management, compliance with Applicable Laws, orderly market operation, Client protection, systems integrity, market disruption or the operation of the Liquidation Waterfall.
6.    FUNDING, FEES AND ECONOMIC TERMS
6.1.    Funding Fees for Stock Perpetuals shall be calculated, debited or credited, and settled only in USDT or another Virtual Asset permitted under Applicable Laws and compliant with the VARA Rulebooks, as specified by HMF from time to time, in accordance with the funding methodology and schedule specified by HMF for the relevant product, as amended from time to time. Funding methodologies for Stock Perpetuals may take into account, among other factors, the differential between Stock Perpetuals prices and Reference Prices, interest rate differentials, expected dividends, borrow costs, and other market inputs relevant to equity linked derivatives.

6.2.    HMF may publish, and amend from time to time, the fee schedule applicable to Stock Perpetuals, including maker/taker trading fees, Funding Fees, and any other charges, rebates or waivers applicable to particular products, Client categories or transaction types.

6.3.    The Client acknowledges that the net economic outcome of a Position in a Stock Perpetual will depend on, among other things, changes in the Reference Price, Funding Fees, trading fees, slippage, spreads, corporate action adjustments, liquidity conditions, margin requirements and the operation of the Liquidation Waterfall and Insurance Fund.
7.    TERMINATION, DELISTING AND PRODUCT WITHDRAWAL
7.1.    In addition to any other rights set out in the Terms and the Perpetual Futures Additional Terms, HMF may, in its sole discretion and without liability to the Client, with or without prior notice where permitted by Applicable Laws, suspend, restrict, delist, terminate or otherwise cease to offer any Stock Perpetual or category of Stock Perpetuals where it considers it necessary or desirable to do so, including for reasons of risk management, regulatory developments, insufficient liquidity, market disruption, changes in the Underlying Equity References, product viability, or internal policy.

7.2.    In connection with any suspension, delisting, termination or product withdrawal relating to Stock Perpetuals, HMF may, in accordance with the Terms, the Perpetual Futures Additional Terms, these Additional Terms and Applicable Laws, close out, terminate, novate, or otherwise manage open Positions, apply alternative settlement methodologies using only USDT or another Virtual Asset permitted under Applicable Laws and compliant with the VARA Rulebooks, as specified by HMF from time to time, or impose such other measures as it considers necessary or appropriate to protect Clients, the market, HMF and its Affiliates.

7.3.    The Client agrees that it shall not hold HMF liable for any loss arising from any action properly taken in accordance with this Clause 7, the Terms, the Perpetual Futures Additional Terms or Applicable Laws in relation to Stock Perpetuals.
8.    ADDITIONAL DEFINITIONS FOR STOCK PERPETUALS
In these Additional Terms, unless the context otherwise requires and in addition to the definitions set out in the Terms and the Perpetual Futures Additional Terms:

“Corporate Action” means, in relation to any Underlying Equity Reference, any cash or stock dividend, bonus issue, rights issue, stock split or reverse split, consolidation, reclassification, reorganisation, spin‑off, merger, takeover, delisting, insolvency proceeding, restructuring, special dividend or other similar event that, in the opinion of HMF, has or may have a material effect on the price, value or liquidity of the relevant Underlying Equity Reference or any related instruments.

“Funding Rate” means, in respect of any Stock Perpetual and any applicable funding interval, the periodic rate of funding (expressed as a percentage or other rate) for that Stock Perpetual, as determined by HMF from time to time in accordance with its funding methodology and the disclosures and parameters published by HMF in the relevant product specifications, margin schedule, trading rules or on the Website.

“Reference Markets” means, in respect of any Underlying Equity Reference, the primary listing exchange(s), quotation venue(s) or other market(s) that HMF designates from time to time as the main reference markets for that Underlying Equity Reference for the purposes of determining the Reference Price, Mark Price and any Corporate Action treatment.

“Reference Price” means, in respect of any Stock Perpetual, the price, index, benchmark or formula determined by HMF from time to time in accordance with the applicable methodologies and disclosures published by HMF, and used as a reference for pricing, Mark Price, Funding, margin and/or other purposes for that Stock Perpetual.

“Risk Disclosures for Stock Perpetuals” means the risk disclosure document(s) published by HMF from time to time that set out additional risks associated with trading in Stock Perpetuals, as may be amended, supplemented or replaced by HMF in its discretion.

“Stock Perpetuals” means the perpetual futures contracts referencing one or more Underlying Equity References that are made available by HMF through the HashKey Exchange as part of the Stock Perpetuals Product, settled and/or margined only in USDT or another Virtual Asset permitted under Applicable Laws and compliant with the VARA Rulebooks, as specified by HMF from time to time, as further described in these Additional Terms and the applicable product specifications.

“Stock Perpetuals Product” means the product offered by HMF that allows Clients to enter into and maintain Positions in Stock Perpetuals on the HashKey Exchange.

“Underlying Equity References” means, in respect of any Stock Perpetual, the equities, equity indices, baskets of equities, exchange‑traded products or other equity‑linked benchmarks, or any combination thereof, that are used as pricing inputs or reference assets for that Stock Perpetual, as specified in the applicable product specifications and disclosures.

“VARA Rulebooks” means the rulebooks, regulations, rules, directives, guidance and other requirements issued by the Dubai Virtual Assets Regulatory Authority, as amended, supplemented or replaced from time to time.