Block trading is a specialized service designed for executing large-volume transactions of digital assets. This service, often utilized by institutional investors and high-net-worth individuals, allows for the negotiation and settlement of sizable trades away from public order books to minimize market impact.
These Block Trading Service Terms govern your access to and use of this specific service provided by the platform. By utilizing the service, you acknowledge that you have read, understood, and agree to be bound by these Terms, which incorporate by reference the platform’s overarching User Agreement. If you do not accept these Terms, you may not use the Block Trading Service.
Key Definitions
- Request for Quote (RFQ): An electronic notification sent to a market maker indicating an intent to trade a specific instrument or strategy, prompting them to provide buy and sell quotes.
- Minimum Block Size: The smallest trade size permitted to be executed as a block trade, as determined by the platform.
- Platform: Refers to the service provider, Aux Cayes FinTech Co. Ltd., also referred to as "we," "us," or "our."
Eligibility and Your Responsibilities
To be eligible for the Block Trading Service, you must meet the following criteria:
- You have agreed to the platform’s main Terms of Service and are not prohibited from using its services.
- If an individual, you are at least 18 years old and have the full civil capacity to enter into a binding agreement.
- If acting on behalf of a legal entity, you have the legal authority to bind that entity.
- You possess the necessary experience and risk tolerance to trade digital assets and understand their volatile nature.
- You are the legal and beneficial owner of all digital assets in your account, and their source is legitimate.
You agree to use the service lawfully and will not engage in or promote:
- Market manipulation or any illegal activities.
- Money laundering, terrorist financing, fraud, or any other prohibited business practices.
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How Block Trading Works
Service Description
A block trade is a large, privately negotiated transaction that is settled through the exchange. They are popular among participants deploying significant capital, as placing large orders on public markets can cause adverse price movements (slippage). By negotiating privately, traders can request quotes from market makers and potentially secure a predetermined settlement price.
This service adheres to a Minimum Block Size, which is set at the platform's sole discretion.
Service Termination
The platform reserves the right to terminate or suspend the Block Trading Service at its sole discretion under certain circumstances, including:
- Legal or regulatory requirements necessitating termination.
- Force majeure events that prevent the platform from providing the service.
- Other market conditions that the platform deems necessary for termination.
Risk Disclosure and Limitation of Liability
PLEASE NOTE: DIGITAL ASSETS ARE HIGHLY VOLATILE AND INVOLVE SIGNIFICANT RISK. YOU COULD LOSE YOUR ENTIRE INVESTMENT.
This document is not to be considered investment advice. You must carefully consider whether trading or investing in digital assets is suitable for you based on your personal circumstances.
Like any asset, the value of digital assets can fluctuate significantly. You are solely responsible for assessing the financial risks and for all your trading decisions. The platform does not make any warranties about the markets or value of digital assets and will not be liable for any losses you incur.
You understand and accept the following risks, among others:
- Market Volatility: Prices can crash or become volatile due to force majeure events, leading to potential losses.
- Technical Issues: System errors, delays, or failures could prevent you from using the service or executing trades.
- Market Abnormalities: Unforeseen market conditions can result in loss.
- Protocol Changes: The underlying software protocols of digital assets are often open-source and can change dramatically, affecting their value, usability, or availability.
- Operational Challenges: The platform may face cyber-attacks or technical difficulties that disrupt the service.
The platform's total aggregate liability to you will not exceed the total service fees received from you.
Frequently Asked Questions
What is the main advantage of block trading?
The primary advantage is minimizing market impact. By negotiating a large trade privately, a trader avoids placing a massive order on the public order book, which could negatively move the price against them before the trade is fully executed.
Who is eligible to use block trading services?
This service is typically designed for sophisticated investors, such as institutional clients and high-net-worth individuals, who meet specific eligibility criteria concerning their knowledge, experience, and the size of their transactions, as defined by the platform.
How does the Request for Quote (RFQ) process work?
A user submits an RFQ for a specific asset and quantity. This RFQ is sent to market makers, who then respond with their buy and sell quotes. The user can choose to execute the trade at one of the quoted prices.
What happens if there is a technical error during a block trade?
The platform's Terms typically limit its liability for losses arising from technical issues, system failures, delays, or disruptions caused by factors beyond its control, including network attacks or unforeseen technical difficulties.
Can the platform change these Block Trading Terms?
Yes, the platform reserves the right to unilaterally modify these Terms at any time. The updated Terms will be posted on the website, and your continued use of the service constitutes acceptance of those changes.
Are block trades advised by the platform?
No. The platform explicitly states that it does not provide business, legal, financial, or tax advice. All trading decisions are made by you, and it is recommended that you consult with independent professional advisors.
Platform's Rights and User Indemnification
The platform strictly prohibits unfair trading practices. It may suspend or close your account if you engage in:
- Market manipulation or any malicious market behavior.
- Activities that harm other users or exploit security vulnerabilities.
- Any other actions deemed harmful to the market or illegal.
To protect the market's integrity, the platform may take measures like canceling orders or restricting accounts without liability for any resulting user losses.
You agree to indemnify and hold the platform harmless from any claims, damages, or losses (including legal fees) arising from your breach of these Terms, your misuse of the service, or your violation of any laws or third-party rights.
Governing Law and Dispute Resolution
These Terms are governed by the laws of England and Wales. Any disputes arising from these Terms or the service shall be resolved through arbitration in Hong Kong under the auspices of the Hong Kong International Arbitration Centre (HKIAC). The arbitration shall be conducted in English by three arbitrators, and the award rendered shall be final and binding.