English/USD
Language
Currency
Support Center
FAQ
Finance
Crypto Loans
Cryptocurrency Loan Service Agreement
Binance
2020-03-27 08:13

This Cryptocurrency Loan Service Agreement (the “Agreement”) constitutes a part of the Binance Terms of Use (the “Terms of Use”). Unless otherwise defined herein, the terms used in this Agreement shall have the same meaning as specified in the Terms of Use. 

This Agreement is an agreement between relevant Binance Operators and each User regarding Binance’s provision of the cryptocurrency loan services to such User (the “Service”) and obtaining the corresponding fees. By offering the Service, Binance provides its Users with solutions to hold and make use of specific cryptocurrencies and other Digital Assets and requires the Users to provide corresponding digital- asset deposits (the “Collateral”) as a prerequisite for the loan offered by Binance. In this Agreement, “we” and “us” refer to Binance and Binance Operators, and “you” shall mean any single User who uses the Service and enters into this Agreement. Any person located in the Islamic Republic of Iran, the Democratic People's Republic of Korea, the Syrian Arab Republic, the Republic of Cuba, the Republic of Crimea, and the United States and its territories is strictly prohibited from using the Service provided herein. 

Please read the Agreement carefully and click the “I agree” button to indicate that you have thoroughly read and understood the entire content of the Agreement to use the Service. By clicking the “I agree” button or continuing to use the Service, you acknowledge, understand and agree to all terms of the Agreement, including any amendments and updates we may make to the Agreement at any time, and other relevant content of the Terms of Use. 

 

Notice of Material Risks:

1.1  You shall take note that:

1.1.1 Digital Assets are not issued by any financial institution, company or us;

1.1.2   The digital asset market is of a brand new and unconfirmed nature which may not continue to grow;

1.1.3   Digital asset trading entails exceptionally high risks. It is traded nonstop throughout the day. There is no limit on the price change. The price is prone to significant fluctuations caused by market makers, opportunists, and government policies in different countries.

1.1.4   If we determine, based on our sole discretion, that you have breached the Agreement, or that the Service or your use of the Service is illegal under the laws of your jurisdiction, we reserve the right to suspend or terminate the account you created explicitly dedicated for the purpose of the Service (the "Collateral Account") at any time, or suspend or terminate your use of the Service or conduct of digital asset transactions.

 

1.2  By using the Service, you acknowledge and agree that:

1.2.1   You acknowledge and understand that, investment and trading of digital assets may result in partial or total loss of your assets. You shall, therefore, determine the amount of investment and loan following your own level of risk tolerance;

1.2.2 You acknowledge and understand that digital assets may generate derivative risks. Should you have any question, you shall first seek professional advice and assistance;

1.2.3 You acknowledge and understand that, in addition to the aforementioned risks, there may also be other risks of unpredictable or unforeseen nature;

1.2.4 You shall carefully consider and apply your clear judgment as to the evaluation of your financial situation and the aforementioned risks when making any decision to use the Service, and be responsible for all losses thereunder;

1.2.5 You acknowledge and agree that we have the right to fully manage your Collateral Account and Collateral during the period of the Service, and we reserve the right (without obligation) to implement mandatory close-out mechanisms under certain circumstance, which may lead to your significant losses;

1.2.6 To the extent permitted by law, we shall not be held responsible for the aforementioned risks and any other risks not because of our gross negligence, including but not limited to adverse consequences resulting from technical obstacles that are difficult to avoid or overcome.

 

Terms of Service

By using the Service, you acknowledge and agree to the following Terms of Service:

 

2.1  Creating and managing the Collateral Account

2.1.1 Verification. Before using the Service, you must meet the required criteria for qualified users as set forth in the Terms of Use, and other reasonable conditions in accordance with relevant international or regional laws, regulations and policies (including but not limited to Know Your Client (KYC), anti-money laundering, counter-terrorism financing, etc.), and complete all verification processes we may require. The information that you may be required to provide includes, but not limited to, your name, phone number, e-mail address, personal identification, other social media accounts, source certification for digital assets, etc. In addition to the submission of the aforementioned information, you agree to authorize us to query the information and other relevant information about you, directly or indirectly, through a third party to verify the related contents. The Service may vary depending on your authorized information, and you shall warrant and represent that, the information submitted by you is accurate and true. Should there be any changes to the information provided, you shall promptly update accordingly. Should we determine that the information submitted by you is incorrect, untrue, inaccurate, incomplete or misleading, we reserve the right to notify you to correct or remove the erroneous information entirely, and terminate in part or all of the Service at our sole discretion, and you shall be responsible for the losses which may incur.

2.1.2 Creating a Collateral Account. After the preliminary verification and review process, it is at our sole discretion to agree or decline your request to create a Collateral Account. As you obtain the account number and password to the Collateral Account, you are deemed to have successfully activated the Service. You shall be solely responsible for safekeeping the account number and password of the Collateral Account. You also shall hold full legal responsibility for all activities and actions conducted through your Collateral Account, unless otherwise specified in this Agreement.

2.1.3 Using the Collateral Account. Without our prior consent or authorization, the Collateral Account shall only be accessed by the account registrant. You shall not assign or make available the Collateral Account to a third party through gifting, lending, leasing, transferring, or by other means. We reserve the right to suspend, freeze, or cancel the use of the Collateral Account by anyone other than the account registrant. Should you suspect or discover unauthorized use of your account number and password, you shall notify us immediately. We shall not be held responsible for any loss or damage caused by the use of the Collateral Account by you or any third party, regardless of the existence of your authorization.

2.1.4 Account Security. We are committed to maintaining the security of the Collateral and implementing industry-standard protection for the Service. Nevertheless, the actions of individual Users pose risks. You agree to treat your account access credentials (e.g. account number and password) as confidential information and not to disclose to any third party. You also agree that you are solely responsible for taking the necessary security measures to protect your own Collateral Account and personal information. Should we agree to create a sub-account of a Collateral Account and authorize a third party to operate upon your request, you shall be solely and fully responsible for the operation of the sub-account by the third party.

 

2.2  Payment of cryptocurrency loan and collateral

2.2.1 Before using the Service, please read carefully the Terms of Use and acknowledge and agree to the specific information and policies regarding the operation of the Service, including but not limited to transaction pairs, loan-to-value ratio, floating-rate rules on loan-to-value ratio, and fees.

2.2.2 When using the Service, you shall be required to transfer the Collateral of a certain type and quantity to the Collateral Account as collateral; upon the payment confirmation, we may loan you Borrowed Currency of a certain type and quantity. The cryptocurrency loan service shall then be considered complete.

2.2.3 Unless otherwise provided in the Agreement or the Terms of Use, it is at your own discretion as to the term of each Service, which, nevertheless, shall be no longer than 90 days. You acknowledge and agree that the longer the term of the Service, the higher the accrued interests and related fees in accordance with the Agreement.

2.2.4 You agree that, unless otherwise agreed to or waived by us, you shall not withdraw any Collateral Asset from the Collateral Account until you have completed the repayment of the Borrowed Currency and paid off the corresponding interests and expenses. You may, at your own discretion, expand the Collateral to reduce the risk (e.g. risk of closing-out) of using the Service.

2.2.5 You agree to use the Borrowed Currency in compliance with the Terms of Use and the requirements of relevant laws and regulations. In addition to the previous restrictions, it is at your sole discretion to determine the use of the Borrowed Currency.

2.2.6 You acknowledge and agree that when using the Service, you shall abide by relevant laws and regulations, and warrant and represent the legitimacy and compliance of the source of the Collateral.

 

2.3  Rights of Binance

2.3.1 Right to Receive Interests and Fees. You agree that, in accordance with our published rules and policies, as a consideration for using the Service, you may be obligated to pay us interests or related expenses when using the Service. You also agree to follow our published rules and policies regarding the payment submission of the aforementioned interests and/or fees.

2.3.2 Risk Control. When the price changes due to market fluctuations during the term of the Service, we, according to the real-time changes in the loan-to-value ratio, reserve the right to implement risk control measures such as closing-out of the Collateral at our discretion should a risk be determined. You agree to accept the final processing results without reservation.

For the purpose of the Agreement, "close-out" shall refer to the situation where we, on our own behalf, arrange a sale or discount of the Collateral at a specified price (including disposition through cryptocurrency or fiat currency trading channels) to the extent of the total value of the principal of the cryptocurrency loan, interests and other related expenses payable, and be given priority to the proceeds of the disposition of the Collateral for repayment and compensation. We will announce the details of the close-out and other risk control measures at Terms of Use.

During Binance’s system maintenance, you acknowledge and agree that, should a risk be determined at our own discretion, we reserve the full and exclusive authority to manage your Collateral, including but not limited to the close-out for the purpose of repayment and compensation of the principal of the cryptocurrency loan, interests, and related fees. Should our risk control measures (e.g. close-out) fail to make up for all losses incurred from our providing the Service to you, we reserve the right to other relief measures and remedies (including but not limited to freezing and debiting your Binance account and digital assets in other accounts) and the right to hold you legally liable.

2.3.3 Notice. You agree that during your use of the Service, under certain circumstances (including but not limited to risks identified by us), we reserve the right with no obligation to deliver notifications via short message service (SMS), e-mail or client message method (e.g. early warning and close-out notification).

 

2.4  Suspension or Termination of Service

 

When deemed necessary or reasonable, we reserve the right to suspend or terminate the provision of the Service to you at any time. You agree, to the extent permitted by law, to hold us harmless against any legal responsibility thereunder.

 

General Terms

3.1  Amendment

We may amend the Agreement and related Binance business rules and policies from time to time in accordance with applicable laws and regulations, or should we consider necessary or reasonable. The announcement of the revision will be posted on Terms of Use. You shall regularly review this Agreement and relevant Binance business rules and policies and pay careful attention to the revisions. Should you disagree with the revised content, you shall immediately cease using the Service, repay the Borrowed Currency, pay off the unpaid interests and fees, and delete the Collateral Account. Should you continue to use the Service on or after the release of the announcement, you agree to the updated terms of the Agreement and related Binance business rules and policies.

 

3.2  Contact Us

Should you have any questions or concerns about the Agreement or Service, or should you wish to submit any requests based on the Agreement, please refer to our FAQ section and contact us on our support page.


Have more questions?submit a request
Related Articles
Binance Loans User Manual