Who are we?
We are a global digital asset trading platform / 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.
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.
Who can use the services of xFutures?
These services are intended solely for users who are 18 or older. Services are prohibited from restricted locations, which at this time include Hong Kong, Cuba, Iran, North Korea, Crimea, Sudan, North Sudan, Malaysia, Syria, United States of America [including all U.S.A. territories like 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.
Will I open my account with xFutures directly?
You can open your account here https://www.xfutures.io/account/register. Our trading engine and back end are powered by OKEx. As an independent onboarding entity OKEx will process your registration and KYC. In order to use any of the Services, you must first register with OKEx directly or via https://www.xfutures.io/account/register by providing your email or mobile phone number, full name and other personal information to verify your identity.
What is a “future” token and how do they work?
Cosmos ATOM Future Token example
Future tokens are tokens that are expected to be created but have not yet been distributed by the project. At the time of this writing, for example, projects such as Polkadot, Dfinity and Hashgraph all have conducted various sales of their tokens, but have not yet issued or distributed these tokens.
Prior to actual issuance by the project, you can buy a “future” of one of these tokens on xFutures which then gets “swapped” to the real token once the project distributes it. Buy. Swap. Receive.
Most of these tokens are sold in private sales so certain information is known about them such as their circulating supply, lock up periods and other facts. We will try to provide information about projects where we are creating futures. However, please understand that many of these projects release limited information and have provisions in their documentation permitting changes in the terms of the offering. There are significant risks which are outlined below that need to be understood by anyone looking to purchase a future token.
How do we offer these tokens for trading when no other exchange is able to offer them yet?
What we offer are “futures.” They aren’t the actual tokens, but you are able to swap them for the real ones once they are released.
We are able to offer these futures because we have structured a deal with one of our partners which either has an allocation to the private sale or has rights to receive a certain number of these tokens when they are distributed. This partner then sells these future tokens on xFutures so that users can buy them with their USDT, Bitcoin or other crypto assets and subsequently trade them.
Does xFutures guarantee delivery of tokens?
xFutures only offers futures. We cannot guarantee the delivery of the unissued tokens to which those futures grant rights.
For the avoidance of doubt, xFutures Limited does not sell any of these tokens. We only offer collaterized futures positions on xFutures. All tokens covered by the futures will come from a partner(s) with whom we work. To the fullest extent possible, we will verify that the partner can deliver the tokens per the delivery terms below by examining their documentation.
However, delivery terms can vary per the risks below if a project changes its terms. Recent projects that have changed terms include Quarkchain, IoTeX, Multivac and Blockcloud. Please see the discussion below concerning the risks associated with futures.
Do you guarantee the accuracy of any information you publish about a project or a token?
Disclaimer: We CANNOT guarantee the accuracy of any information that we provide concerning a token offering since we ultimately rely solely on information provided to us by the issuer or public information available.
Always do your own due diligence and understand that token projects are notorious for changing terms. Almost all SAFTs / private sale contracts have provisions in them that give the project complete control to change anything. By trading in these markets, you represent that you understand the risk of these changes including longer lock ups, distribution date changes and other changes the project might undergo.
Things that could happen:
Project Changes Token Supply: Let’s say the project changes its token supply from 1 billion to 10 billion. Even though technically we would not be obligated to do so, as long as the SAFT with which we are collateralizing the position also results in us receiving 10 times as many tokens as originally expected, we would pass those tokens to our users who have bought futures. The opposite would be true as well. If the ultimate supply is reduced from 5 billion tokens to 1 billion (which we’ve never seen happen but it could), then we would deliver only 20% of the tokens originally covered by the futures. So if you bought futures for 10 tokens, you would only receive 2. However, pricing usually reflects these changes, so in either case the value you receive should be roughly the same, e.g., 10 token worth $1 each or 2 tokens would be worth $5 each although this is not always the case.
Project Changes Distribution / Vesting / Lock Up Schedule: Additionally, projects can change projected distribution dates, vesting schedules and lock up schedules. This happened with projects like Blockcloud, Multivac, Quark Chain and Iotex. If this occurs, you will receive your tokens over the new period of time. In most instances, the private sale investor is forced into accepting these terms. Since buying a future token is collaterized by certain tokens, the risk of this is passed onto the purchaser, which is critical to understand. DO NOT BUY TOKENS IF YOU ARE NOT WILLING TO ACCEPT THE RISK OF LOCK UP, VESTING AND DISTRIBUTION CHANGES.
Failure to deliver: It is possible that for unforeseen reasons, no tokens are ever delivered by the project. In that case, the futures will be worthless.
Unforeseen Changes: There are additional unforeseen and unexpected events that can happen. By trading on xFutures, you represent that you understand the risk of these changes the project might undergo. You represent that you are familiar with legal documents such as SAFTs and their provisions which bare significant risks and can result in you losing your entire investment.
What are the delivery terms?
Delivery of the tokens will be via our swap system meaning the user must use our system to receive their tokens. The tokens will NEVER just appear in the user’s exchange account directly.
Although we will do our best to ensure that delivery happens as soon as possible, we may require up to 30 days from the time the specific token tranche is distributed and transferable in case there are technical difficulties or delays with the swap or distribution.
Please understand that when we refer to a specific token tranche, we specify as clearly as possible what is collaterizing the future. Often times, different private sale investors have different terms or there are different private sale tranches with varying distribution terms. Please be sure to understand the exact collateral to understand the timing of distribution and what to expect. We shall endeavor to deliver tokens within the terms specified. This may result in buyers not being able to sell the physically delivered tokens at the optimal price
If we experience additional problems and, for example, we do not have tokens delivered from the seller by which the futures were collaterized, we will endeavor to acquire those tokens on the open market. We shall maintain cash and crypto reserves to assist us in fulfilling our futures contracts.
How do the swaps work when I want to get the actual token?
All of our tokens are ERC20 -x(name-of-token) which are then swapped via this tool https://swap.xfutures.io. This tool can be thought of as similar to Shapeshift. You will simply send the exact number of x(name-of-token) to receive the same exact number back in the native token you are requesting.
Cosmos ATOMs example:
You would “withdraw” your xATOM(Cosmos) token to the swap tool https://swap.xfutures.io and provide us with your ATOM(Cosmos) wallet address or other exchange ATOM(Cosmos) deposit address. We would convert them 1:1 and send you the exact amount of the mainnet ATOM(COSMOS).
Polkadot DOTs example:
You would “withdraw” your xDOT(Polkadot) token to the swap tool https://swap.xfutures.io and provide us with your DOT(Polkadot) wallet address or other exchange xDOT(Polkadot) deposit address. We would convert them 1:1 and send you the exact amount of the mainnet xDOT(Polkadot).
We only offer x(name-of-token) in the quantities which are fully collateralized already. See this tutorial to see how the swap mechanism works.