This Risk and Compliance Disclosure should be read in conjunction with the Terms of Service (“Terms”) of xFutures Limited (“xFutures”) and OKEx Malta Ltd. and Aux Cayes FinTech Co. Ltd (together, “OKEx”). In plain English, we want you to understand the important risks and compliance matters while you trade on our platform.
As xFutures’s technology supplier, OKEx’s Risk and Compliance Disclosure is relevant to users and by agreeing to xFutures’s Risk and Compliance Disclosure, users also agree to OKEx’s Risk and Compliance Disclosure. To find OKEx’s updated Risk and Compliance Disclosure, please visit: https://support.okex.com/hc/en-us/articles/360021813591
1. PURPOSE OF THE PROGRAM
OKEx has established and implemented an Anti-Money Laundering, Anti-Terrorist Financing, and Trade & Economic Sanctions Program (“Program”) to ensure a robust and compliant digital asset trading platform. We want to promote legal, transparent business activities and maintain a strong reputation among our customers, regulators, and the digital asset industry.
2. OUR ROLE AND ACTIVITIES
We are a global digital asset trading platform or marketplace, where traders come as buyers and sellers (commonly referred as market-makers and market-takers). For clarity, buyers and sellers trade with each other and not with OKEx or xFutures. We are not a counterparty to any trade. Our Services are available through xfutures.io, associated application program interfaces and/or mobile applications and through customer onboarding entities, including
Disclosure: Trading is risky. The risk of loss in trading or holding digital assets can be substantial and you should be prepared to lose your entire investment. You should therefore carefully consider whether trading is suitable for you in light of your financial condition.
Disclosure: The shareholders of xFutures or entities controlled by those shareholders may engage in trading through OKEx and xFutures. xFutures will maintain policies to ensure that all persons trading on OKEx and xFutures are treated equally and that no conflict of interest arises.
3. REGULATORY LANDSCAPE
We understand that regulatory bodies have taken a diverse approach to the laws and regulations regarding digital assets, including some characterizing or defining digital assets as virtual financial assets (by Malta), convertible virtual currency (by USA FinCEN) or a virtual commodity (by Hong Kong). As a trading platform, we believe that all digital assets available on xfutures.io are an innovative alternative asset class; and therefore, digital assets should not be called currency or money.
Disclosure: Digital assets are not fiat money nor fiat currency. Digital assets are NOT backed by any government or central bank. We may at times have opinions of the different regulatory approaches taken by various government bodies; however, at all times, we will fully abide by the rules and regulations of the respective countries we in which we operate. We regularly communicate with regulators and industry on the best approach to regulating digital asset businesses. Furthermore, xFutures does not accept certain customers. To maintain our strong reputation in the market and ensure a robust compliant marketplace, we have decided to not seek nor accept customers from certain jurisdictions including Hong Kong, Cuba, Iran, North Korea, Crimea, Sudan, North Sudan, Malaysia, Syria, USA [including all USA territories such as Puerto Rico, American Samoa, Guam, Northern Mariana Island, and the US Virgin Islands (St. Croix, St. John and St. Thomas)], Bangladesh, Bolivia, Ecuador, Kyrgyzstan, Afghanistan, Pakistan, Iraq, Democratic Republic of Congo, Libya, Ivory Coast and Eritrea.
Disclosure: Potential customers from the countries listed above may not utilize the xFutures platform regardless of the size of their intended trade.
We cooperate with governments and respect regulations and comply with applicable regulations. As good corporate citizens, we may be asked for information from law enforcement authorities and will assist if permissible by law as law enforcement conduct investigations to pursue and thwart illicit activity. What this also means is that our platform is intended for law abiding customers. We welcome the opportunity to earn your business, and in return we require that you act legally and properly on our platform.
4. THE AML/ATF PROGRAM
OKEx has designed its Program to reasonably prevent money laundering and terrorist financing through a risk-based, multi-layer control system.
The first layer includes a stringent customer identification program, including verifying the identity of customers, whether individuals or entities. In addition to obtaining identification documents, OKEx obtains for non-natural persons their entities’ beneficial owners/natural persons consistent to international standards such as the Financial Action Task Force (FATF).
The second layer includes a risk-based system to warrant additional customer due diligence. To accomplish this, OKEx screens customers (including beneficial owners) against the entities/persons on The Government of the Hong Kong SAR Gazette, United States Office of Foreign Assets Control (OFAC) Sanctions Lists, and the United Nation Security Council Sanctions List, among other government-provided lists of sanctioned individuals and entities. OKEx also may screen against other lists on a discretionary basis to protect our reputation and customers.
The third layer includes ongoing monitoring for suspicious activity. If OKEx’s Program suspects or has reason to suspect suspicious activities have occurred, OKEx will file suspicious activities reports with local regulators. A suspicious transaction is often inconsistent with a customer’s known and legitimate business, or personal activities.
These are the primary components of our compliance program; however, the most important glue or connection to these layers is OKEx’s leadership team and staff, including AML/Risk personnel that execute training, oversight and a sound compliance culture.
Trading in digital assets is considered high risk. Digital assets are NOT backed by any government or central bank. The risk of loss in trading or holding digital assets can be substantial and you may lose your entire investment. You should carefully consider whether interacting, holding, or trading digital assets is suitable for you in light of your financial condition.
Additionally, xFutures’s Futures Tokens have risks, which are detailed out here in respective articles on https://support.xfutures.io/hc/en-us.
If you have questions or require assistance with our customer due diligence controls, please reach out to OKEx’s 24/7 customer service representatives by phone, chat or email at [email protected]. If you do not receive a response, please submit a support ticket at https://support.xfutures.io/hc/en-us/requests/new.
For any law enforcement requests, please email OKEx at [email protected] and see OKEx’s law enforcement guidance.
7. DIFFERENT VERSIONS
This "Risk & Compliance Disclosure" may be posted in different languages. If there are any discrepancies, the English version shall prevail.