Liquid Swap Terms of Use (both Swap & Liquid Farming)
Last Updated: 27 July 2023
A. Liquid Swap Farming Services
1. By participating in a Liquidity Farming and entering into Swaps, you acknowledge that you have read, understood and accepted all of the terms and conditions in these Liquid Swap Terms, and you acknowledge and agree that you will be bound by and will comply with these terms. If you do not understand and accept these Liquid Swap Terms in their entirety, you should not participate.
B. Swaps and Liquidity Farming
2. When you agree to trade Digital Assets for other Digital Assets sourced from a Liquidity Pool, you will be entering into a Swap.
3. When you provide Digital Assets to a Liquidity Pool for the purposes of providing liquidity, you will be participating in Liquidity Farming. In consideration for providing your Liquidity Assets to a Liquidity Pool, you earn Liquidity Farming Income.
C. Entering into Swaps
4. Before entering into a Swap, you may be prompted to accept Swap Transaction Terms. These terms may specify, among other things:
a. the type and quantity of Digital Asset that you wish to exchange;
b. the type and estimated quantity of Digital Assets you will receive;
c. the estimated exchange rate between the Digital Assets referred to in 4(a) and (b);
d. estimated Slippage;
e. estimated Swap Fees; and
f. estimated Swap Fee Rebates.
5. When you accept the Swap Transaction Terms, Binance will use its best endeavours to Settle the Swap. The Settlement of a Swap is not always instant. It is possible that there may be a delayed Settlement. A delayed Settlement may occur for various reasons, including but not limited to, market conditions and technical issues.
6. Once you accept the Swap Transaction Terms, you cannot cancel, transfer, withdraw, or trade the Digital Asset or Digital Assets that are the subject of the Swap.
7. On Settlement, the Digital Assets you selected to Swap will be deducted from your Spot Account, and the Digital Assets you receive from the Swap will be added to your Spot Account.
8. You acknowledge that any estimates provided to you as part of the Swap Transaction Terms, or otherwise, may be for variables that change frequently, and cannot be calculated with absolute certainty. You agree that these estimates may be inaccurate and that neither Binance or a Binance Affiliate will be liable for any Losses arising from or connected with them.
D. Slippage
9. Binance does not guarantee the quantity of Digital Assets you will receive as a result of a Swap. The quantity of Digital Assets you will receive from a Swap may be different from the estimate provided in the Swap Transaction Terms, or otherwise, because:
a. the prices of Digital Assets in a Liquidity Pool, and the exchange rate between those Digital Assets, constantly fluctuates; and
b. these prices and exchange rates may change between the time you enter into a Swap, and when the Swap Settles.
10. Slippage is the percentage difference between the quantity of Digital Assets you would have received if a Swap Settled instantly, and the amount that you received on delayed Settlement.
E. Swap Fees
11. Swap Fees are published on the Binance Website, and may be updated from time to time.
12. You unconditionally authorise Binance to deduct Swap Fees when you enter into a Swap. Swap Fees will be deducted from the Digital Assets you receive when you Settle a Swap.
F. Fee Rebates
13. You may be eligible for Swap Fee Rebates. Swap Fee Rebates are discretionary, and may be subject to additional terms & conditions set by Binance.
G. Subscribing to Liquidity Farming
14. From time to time Binance may provide you with offers to participate in Liquidity Farming (Liquidity Farming Offer).
15. Before Subscribing to a Liquidity Farming Offer, you must confirm some or all of the following terms, including, but not limited to:
a. the Liquidity Pool that you will contribute your Digital Assets;
b. the applicable automated market maker formula;
c. the Digital Asset Pair;
d. the current value of the Digital Assets in the Liquidity Pool, in a currency or digital currency selected by Binance;
e. the Current Pool Size;
f. the composition of the Liquidity Pool;
g. the Investment Type; and
h. applicable Swap Fees.
16. You may also be prompted with the following estimates:
a. estimated Portion;
b. estimated Pool Portion;
c. estimated Current Pool Size;
d. estimated Slippage; and
e. estimated total yield.
17. These are estimates for variables that change frequently, and cannot be calculated with absolute certainty. You agree that these estimates may be inaccurate and that neither Binance or a Binance Affiliate will be liable for any Losses arising from or connected with these estimates.
18. Binance may specify minimum amounts of Digital Assets that are required to Subscribe and/or any Subscription Limits.
H. Adding/Withdrawing Digital Assets to a Liquidity Pool
19. You may only Subscribe or withdraw Digital Assets in the Portion Composition Ratio.
20. If Digital Assets that are not paired in Portion Composition Ratio, you authorise Binance to Swap the Digital Assets for the other Paired Digital Asset, until you meet the Composition Ratio required by the Liquidity Pool.
21. Any Swap will be undertaken in accordance with these Liquid Swap Terms, and you will incur Swap Fees. You will not be eligible for any Swap Fee Rebates.
I. Liquidity Farming Income
22. Subject to clause 32, Liquidity Farming Income is the sum of your BNB Rewards and Fee Rewards. BNB Rewards and Fee Rewards are calculated as follows:
Fee Rewards = Portion Value/Total Pool Size x Total Trade Fee Rewards
BNB Rewards = Portion Value/Total Pool Size x Total BNB Rewards
23. Liquidity Farming Income is calculated hourly, based on the Portion Value, Total Pool Size, available Total Fee Rewards and available Total BNB Rewards at the time of calculation. You may be required to Claim your Liquidity Farming Income before it is distributed to your Spot Account.
J. Impermanent Loss
24. Impermanent Loss is the difference between the value of Digital Assets when you Subscribed, and the Spot Price of those same Digital Assets when they are withdrawn from the Liquidity Pool.
25. You acknowledge that:
a. you may have been better off holding Digital Assets rather than Subscribing;
b. Impermanent Loss is impossible to predict with absolute certainty; and
c. that Impermanent Loss may arise whether the price of Digital Assets increases or decreases.
26. Binance may provide you with an estimate of Impermanent Loss that may apply to Transactions made under these Liquid Swap Terms of Use. Binance uses its best endeavours to provide you with an estimate of Impermanent Loss. You acknowledge that these estimates are for variables that change frequently, and cannot be calculated with absolute certainty. You agree that these estimates may be inaccurate and that neither Binance or Binance Affiliates will be liable for any Losses arising from, or connected with, this estimate.
K. Risks and Liabilities
27. In addition to the risks identified in the Risk Warning, you must also consider carefully all the risks arising out participating in a Swap, including but not limited to:
a. that the Binance Liquid Swap Service be terminated at any time;
b. any estimates provided by Binance or Binance Affiliates being incorrect;
c. Slippage;
d. Inpermanent Loss;
e. fluctuations in Swap Fees;
f. faults, defects, hacks, exploits, errors or unforeseen circumstances occurring in respect of the technologies on which the Binance Liquid Swap Service depends;
g. failure or non-availability of technologies on which the Binance Liquid Swap Service depends; and
h. attacks on the Binance Liquid Swap Service or technologies on which the Binance Liquid Swap Service depends.
28. In no event will Binance or any Binance Affiliate be responsible or liable to you or any other person or entity for any direct or indirect losses (including loss of profits, business or opportunities), damages, or costs arising out of or in connection with any risk identified above. This limitation of liability is in addition to the limitation of liability contained in the Terms of Use.
L. General
29. Binance reserves the right to suspend and terminate the Binance Liquid Swap Service and may do so at any time.
30. All terms and references used in these Liquid Swap Terms and which are defined and construed in the Binance Terms of Use (the “Terms of Use”), but are not defined or construed in those Terms, shall have the same meaning and construction in these Terms.
31. The Liquid Swap Terms are to be read together with the Terms of Use. In the event of any conflict or inconsistency between the Liquid Swap Terms or Terms of Use, the order of precedence in which the documents are to be read is first the these Liquid Swap Terms and then the Terms of Use.
32. Notwithstanding anything in these Liquid Swap Terms to the contrary, Binance reserves the right (acting in its sole discretion) to offer or remove the availability of BNB Rewards and/or any Additional Rewards.
Additional Rewards means other Digital Asset rewards distributed hourly from Binance on a discretionary level to reward the liquidity providers for participating in a Liquidity Pool.
Binance Liquid Swap Service means the service provided by Binance that allows you to participate in Swaps and Liquidity Farming.
BNB Rewards means your share of Digital Assets, denominated in BNB, that you may Claim in accordance with clause 22.
Claim means request that Binance distribute Liquidity Farming Income to your Spot Account, in the manner set out on the Website.
Current Pool Size means the total value of a Liquidity Pool at the time you Subscribe, in a currency or digital currency selected by Binance.
Digital Asset Pair means the two Digital Assets in a Liquidity Pool.
Fee Rewards means your share of Digital Assets that you may Claim in accordance with clause 22.
Impermanent Loss has the meaning given to it in clause 24.
Innovative Investment means a constant mean value automatic market-making system model described on the Website.
Investment Type means Stable Investment or Innovative Investment.
Liquidity Farming has the meaning given to it in clause 3.
Liquidity Farming Income has the meaning given to it in clause 22.
Liquidity Farming Offer has the meaning given to it in clause 14.
Liquidity Pool means a pool of Digital Assets operated by Binance and used by an automated market maker to facilitate transactions that is available on the Platform.
Liquid Swap Terms means these terms and conditions.
Pool Portion means value of the Digital Assets you contributed to a Liquidity Pool pursuant to a Liquidity Farming Offer, relative to the value of the Liquidity Pool, in a currency or digital currency selected by Binance.
Portion means Digital Assets that you will contribute to a Liquidity Pool when you Subscribe to a Liquidity Farming Offer
Portion Value means the value of your Portion, in a currency or digital currency selected by Binance.
Portion Composition Ratio means the ratio between a Digital Asset Pair as required by a Liquidity Pool.
Settlement means when the Digital Assets the subject of a Swap are exchanged.
Stable Investment means the hybrid constant function automatic market-making system model described on the Website.
Subscribe means to accept a Liquidity Farming Offer.
Slippage has the meaning given to it in clause 10.
Swap has the meaning given to it in clause 2.
Swap Fees means the fees charged for a Swap, as determined by Binance from time to time, and published on the Website.
Swap Fee Rebates means rebates on Swap Fees that may be offered by Binance from time to time.
Swap Transaction Terms means the terms on which you agree to enter into a Swap.
Total BNB Rewards means the Digital Assets, denominated in BNB, that Binance has allocated to a particular Liquidity Pool for users who Subscribe to a Liquidity Farming Offer. This is updated every hour.
Total Fee Rewards means the total Swap Fees that have been generated by a Liquidity Pool that are made available by Binance for users who Subscribe to a Liquidity Farming Offer. This is updated every hour.
Total Pool Size means the total value of a Digital Assets in a Liquidity Pool.
Disclaimer: The Liquid Swap User Agreement may have been translated and published in different languages. In the event of any inconsistency, misstatements, omissions or errors appearing in any translated version, the English version shall prevail.