Legal data

These Terms and Conditions ("T&C") are a contract between

You, a person or legal entity who uses one or more Finery Markets products and services under these T&C, including through Finery Markets software, websites, or applications (hereinafter referred to as "User") and

Finery Markets (BVI) Limited, registered number 2079689, with a registered office in Trinity Chambers, PO Box 4301, Road Town, Tortola, British Virgin Islands (hereinafter referred to as "Finery Markets"), and

(each a “Party” and together the “Parties”).

Finery Markets gives a User access to its software application (“Finery Markets software”) that is described in the Operating rules. By accessing and using the Finery Markets software, the User agrees to be bound by the T&C set out herein. If the User does not agree to these T&C, it must discontinue the use and may not access, display, use, download, and/or otherwise copy or distribute from Finery.

These T&C, together with the Operating rules, Risk Disclosure and Privacy Policy, shall form a single agreement between a User and Finery Markets.

1. GENERAL PROVISIONS

• 1.1. Finery Markets agrees to provide the User with access to and User agrees to use Finery Markets software in strict accordance with the Operating rules.
• 1.2. "Users will be notified of updates to these T&C at the email address associated with their account.
• 1.3. Updates to the Operating Rules, Risk Disclosure and Privacy Policy will be made available on our website at finerymarkets.com ("Website").
• 1.4. Use of Finery Markets software is subject to the License fee as described in Section 4. Finery Markets has the right to unilaterally change this License fee with thirty (30) day written notice to the User.

2. LIMITATION OF LIABILITIES

• 2.1. FINERY MARKETS, OUR OWNERS, OFFICERS, DIRECTORS, EMPLOYEES AND CONSULTANTS SHALL NOT BE LIABLE TO USER OR ANYONE CLAIMING THROUGH USER FOR ANY INCIDENTAL, DIRECT OR INDIRECT, SPECIAL OR CONSEQUENTIAL DAMAGES OR LOSSES WHATSOEVER INCURRED IN RELATION TO THESE T&C INCLUDING BUT NOT LIMITED TO LOSS OF PROFITS OR ANTICIPATED SAVINGS, LOSS OF REVENUE OR INCOME, LOSS OF USE OF PRODUCTION, LOSS OF BUSINESS, CONTRACTS AND OPPORTUNITIES, OR ANY OTHER SPECIAL, INDIRECT, OR CONSEQUENTIAL LOSS OR DAMAGE UNLESS SUCH DAMAGE IS CAUSED BY OUR (OR ANY OF OUR EMPLOYEES, AGENTS OR REPRESENTATIVES) WILLFUL MISCONDUCT, GROSS NEGLIGENCE, OR VIOLATION OF APPLICABLE LAW.
• 2.2. USER IS SOLELY RESPONSIBLE FOR MAINTAINING THE ACCURACY AND INTEGRITY OF ITS OWN DATA OR LOSS OF ANY DATA, ANY UNAUTHORIZED ACCESS TO, ALTERATION OF ITS DATA, PROGRAMS OR PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES, FOR LOST OR CORRUPT TRANSACTION OR DATA BY WHATEVER MEANS IN WHATEVER FORMS. FINERY MARKETS, OUR OWNERS, OFFICERS, DIRECTORS, EMPLOYEES AND CONSULTANTS SHALL NOT BE LIABLE FOR ANY DAMAGES WHATSOEVER DUE TO ITS ACTS OR OMISSIONS.
• 2.3. TO THE EXTENT PERMITTED BY APPLICABLE LAW, FINERY MARKETS ARE NOT RESPONSIBLE FOR ANY DECISIONS MADE UPON CONFIRMATIONS OR ANY OTHER DATA PROVIDED BY FINERY MARKETS TO USER.
• 2.4. NEITHER PARTY SHALL BE LIABLE FOR ANY PERSONAL INJURY OR LOSS OF PROFITS.
• 2.5. Notwithstanding anything to the contrary in Sections above, neither Party excludes or limits its liability which cannot be excluded or limited by applicable law.
• 2.6. The Parties agree that the terms in this limitation of liability represent a reasonable allocation of risk. In no event shall the one Party’s liability to the other Party exceed 50 000 EUR (fifty thousand euros).
• 2.7. Finery Markets’ liability is strictly limited to Finery Markets’ own activities. Finery Markets is in no way liable for any actions, including those of gross negligence, willful misconduct or violation of applicable law, which are the responsibility of any counterparties or any other users including but not limited to those of Finery Markets software.
• 2.8. No action or claim relating to these T&C may be instituted more than one (1) year after the event giving rise to such action or claim.

3. CONFIDENTIAL INFORMATION AND NON-CIRCUMVENTION

• 3.1. Confidential Information for the purposes of these T&C shall mean the information such as characteristics and functionality of Finery Markets software applications, Finery Markets’ trading and order execution methods and their software implementations, operational and settlement processes, designs, product information and other know-how related to Finery Markets software applications, API and other technical information.
• 3.2. Each Party shall at all times keep confidential and shall not disclose to any third party any confidential information acquired in connection with these T&C, any means of communication, business processes or an API specification, except:
  • 3.2.1. as required by Applicable Regulation or under the compulsion of law or by request of any regulatory, government or law enforcement agencies in any jurisdiction; or
  • 3.2.2. to the extent that the confidential information is in or lawfully comes into the public domain other than by breach of this Clause; or
  • 3.2.3. the cases where such disclosure is necessary in order to facilitate the fulfilment of the obligations under these T&C and is required by a third party such as an intermediary.
• 3.3. the cases where such disclosure is necessary in order to facilitate the fulfilment of the obligations under these T&C and is required by a third party such as an intermediary.
• 3.4. Users of Finery Markets software agree that themselves, their officers, directors, agents, associates and any related parties, will not directly or indirectly contact, deal with, transact, or otherwise be involved for the period of 24 months from the date of introduction with any corporation, partnership, proprietorship, trust, or other entities who are Users of Finery Markets software if the initial contact between the parties (introduction) was through the Finery Markets software or officers, directors, agents or other Finery Markets’ representatives, unless (i) the parties use Finery Markets software to deal or transact with one another to the extent allowed by the functionality of Finery Markets software or (ii) the approval to do so is granted by Finery Markets in writing on a case by case basis.

4. FEES AND PAYMENT PROCEDURES

• 4.1. The Parties have agreed on a License fee that shall be paid on a monthly basis by User to Finery Markets.
• 4.2. The License fee rate is shown on the Website after authorisation. The License fee does not include VAT. The License fee currency is Euro if not agreed by the Parties otherwise.
• Trading turnover is calculated by Finery Markets as a sum of the volume of all the trades that were executed against User’s resting orders (order types: limit and postOnly) on the Finery Markets software during a calendar month with trade volumes being converted into USD at the prevailing exchange rate at or around the time of a trade.
• 4.4. In the case of the non-zero License fee, the following is applied:
  • 4.4.1. The Licensor issues an invoice at the beginning of the month that follows the month for which the License was provided. The License Fee invoice shall be paid within 10 working days.
  • 4.4.2. If the invoice is not settled in the due time then the Licensor has the right to refuse access to Finery Markets software and/or terminate the Agreement with immediate effect.
  • 4.4.3. Each Party shall be liable for its own tax obligations and shall bear responsibility for payment of its own taxes in accordance with the applicable tax rules.
  • 4.4.4. The Licensor shall have the right to impose a late payment charge of 0.1% of the amount due per every day of delay. The settlement day is the day on which the appropriate amounts are credited to the Licensor’s bank account.
  • 4.4.5. Payments shall be made in Euro via a bank wire to the bank’s details provided in the applicable invoice or in any other currency or equivalent, which is mutually agreed by the Parties, at the exchange rates prevailing at the payment date.

5. TERMINATION AND AMENDMENTS

• 5.1. These T&C shall become effective on the same date when it is signed by both Parties.
• 5.2. Each Party has the right to terminate the Agreement at any time by providing written notice to the other Party, through the agreed means of communication stated under the "Communication" section of these T&C, including thirty (30) day notice period.
• 5.3. Any Party may terminate these T&C immediately by giving written notice of termination to the other Party if the other Party commits a material breach of these T&C.
• 5.4. Any Party may terminate these T&C immediately by giving written notice of termination to the other Party if:
  • 5.4.1. the other Party: is dissolved, ceases to conduct all (or substantially all) of its business, is or becomes unable to pay its debts as they fall due, is or becomes insolvent or is declared insolvent; or convenes a meeting or makes or proposes to make any arrangement or composition with its creditors;
  • 5.4.2. an administrator, administrative receiver, liquidator, receiver, trustee, manager or similar is appointed over any of the assets of the other Party;
  • 5.4.3. an order is made for the winding up of the other Party, or the other Party passes a resolution for its winding up (other than for the purpose of a solvent company reorganization where the resulting entity will assume all the obligations of the other Party under the Agreement);
• 5.5. Notwithstanding anything to the contrary in these T&C, the obligations contained in Sections 2, 3, 6, 7, 8, and 9 shall survive the termination of these T&C.

6. WARRANTIES

• 6.1. The Parties warrant that they have the legal right and authority to enter into these T&C and to perform their obligations under the Agreement.
• 6.2. All of the Parties' warranties and representations in respect of the subject matter of these T&C are expressly set out in these T&C.
• 6.3. To the maximum extent permitted by applicable law, no other warranties or representations concerning the subject matter of these T&C will be implied into the Agreement or any related contract.

7. INDEMNIFICATION

• 7.1. Each Party agrees to indemnify and hold harmless the other Party, and its respective directors, shareholders, affiliates, officers, agents, employees, and permitted successors and assigns against any and all claims, losses, damages, liabilities, penalties, punitive damages, expenses, reasonable legal fees and costs of any kind or amount whatsoever, which result from or arise out of any act or omission of the indemnifying Party, its respective directors, shareholders, affiliates, officers, agents, employees, and permitted successors and assigns that occurs in connection with these T&C.
• 7.2. This indemnification will survive the termination of these T&C.

8. COMMUNICATION

• 8.1. Any notice or other communication required or authorized to be given under these T&C shall be done in writing.
• 8.2. Any notice or other communication may be sent by email to the Parties' addresses. Finery Market’s address for notice or communication is legal@finerymarkets.com. User’s address for notice of communication will be the address associated with their account.

9. MISCELLANEOUS

• 9.1. These T&C supersedes any previous agreement(s) between the Parties and constitutes the entire agreement between the Parties relating to the subject matter of these T&C.
• 9.2. If there is any inconsistency between the provisions of these T&C and the Operating Rules, the Operating rules shall prevail.
• 9.3. To the extent that any provision of these T&C is found by any court or competent authority to be invalid, unlawful or unenforceable in any jurisdiction, that provision shall be deemed not to be a part of these T&C and shall not affect the enforceability of the remainder of these T&C nor shall it affect the validity, lawfulness or enforceability of that provision in any other jurisdiction.
• 9.4. The Parties agree that each Party has a right but not an obligation to make the information of User’s using Finery Markets software public by means of a press release or alike.
• 9.5. User’s consent to the collection, storage, and disclosure by Finery Markets and our agents of any confidential information to governmental authorities as required by law or other agreement by or between governments. Confidential information includes personal data, account details, transactional information, and any other information that a reasonable person would consider being of a confidential or proprietary nature.
• 9.6. The captions are for convenience only and in no way define, limit or enlarge the scope of these T&C or any of its Sections.
• 9.7. These T&C and the rights and obligations of the Parties hereunder shall be governed by the laws of England and Wales.
• 9.8. The Parties hereby agree that the Arbitration Service of the Cyprus Chamber of Commerce and Industry (CCCI) shall have exclusive jurisdiction over any issues regarding these T&C. The language of the arbitration shall be English. All differences of any nature that may arise in relation to this contract between the contracting Parties, shall be referred to arbitration by a single Arbitrator in accordance with the provisions of the Arbitration Law of Cyprus, Cap 4. The Arbitrator will be proposed by the Arbitration Service of the Cyprus Chamber of Commerce and Industry (CCCI) and must be approved by the contracting Parties. In case of disagreement between the contracting Parties on the proposed Arbitrator, the Arbitrator will be appointed in accordance with the provisions of the Arbitration Law of Cyprus, Cap 4.

1. TERMS

• 1.1. Words and phrases defined in the Terms & Conditions shall have the same meanings (unless otherwise expressly provided herein) for the purposes of these Operating Rules.
• 1.2. "Confirmation" refers to post-trade data which is issued by the Platform on a daily basis and consist of (a) User basic information, (b) the terms of any Transaction, including sufficient details to identify such ransaction, (c) current TP limits of a User, (d) current open positions to settle.
• 1.3. "Digital Asset" means any digital or virtual asset such as crypto currency, tokens, coins or alike based on protocols and used by the decentralised peer-to-peer computer networks.
• 1.4. "Exchange(s)" means securities or futures exchanges, clearing houses,   self-regulatory organisations, multilateral trading facilities or alternative trading systems including those where Digital Assets are traded or exchanged.
• 1.5. "Transaction" means any transaction concluded by a User on the Platform pursuant to the terms of this Operating rules and User agreement.
• 1.6. "User" is a legal entity that has accepted the Terms & Conditions of Finery Markets (“T&C”) in order to facilitate trade execution on the Platform.

2. GENERAL PROVISIONS

• 2.1. Finery Markets offers its Users a peer-to-peer electronic communication platform (“Platform”) that allows executing Transactions in spot-settled digital assets and fiat currencies.
• 2.2. These Operating rules are incorporated into and are an integral part of the T&C.
• 2.3. Prior to executing Transactions, Users must agree on mutual counterparty limits as described below and sign a master trading agreement. The master trading agreement must include a clause that makes Transactions done on the Platform legally binding.
• 2.4. Users must have the ability to affect physical delivery with respect to Transactions occurring via the Platform; the Platform is by no means involved in the settlement process; the Transactions occurring on the Platform are not rolled as a matter of course; and any netting will only be done in accordance with pre-negotiated netting clauses of the master trading agreement between the Users.
• 2.5. The Users of the Platform may be either makers, which provide liquidity to the Platform by placing resting orders (Limit, Limit Post-only), or takers, which consume liquidity by sending aggressive orders (these include, MarketFOK, MarketIOC, LimitFOK, and LimitIOC).
• 2.6. Finery Markets is neither a party to any Transaction nor a central counterparty. Finery Markets is not responsible for and shall not be liable for the default of any User on any Transaction. Transactions undertaken on the Platform are not subject to any compensation schemes.
• 2.7. Finery Markets offers neither clearing nor settlement services.
• 2.8. Users are legally bound to a Transaction with their counterparty. In the event of any uncertainty between Users about the details or the very existence of a particular Transaction, the existence of the Transaction and its terms as written in the database of the Platform shall be decisive.
• 2.9. Finery Markets is not responsible for compliance by Users with any applicable laws or regulatory obligations in the country of their incorporation or operation.
• 2.10. Compliance with these Operating rules is required and is a condition for transacting on the Platform. Finery Markets reserves the right to restrict or suspend a User’s access to and use of the Platform if Finery Markets determines in its sole discretion that a User’s activity fails to conform to these Operating Procedures, or if a User violates the terms of any other agreement with Finery Markets or applicable law or regulation.
• 2.11. Finery Markets may make changes to these Operating rules in accordance with the T&C.
• 2.12. The actual version of the Operating rules is available at the website finerymarkets.com (“Website”).

3. SYMBOLS

• 3.1. Trading on the Platform is offered in spot-settled digital assets tradable versus fiat currencies as well as versus other digital assets.
• 3.2. Finery Markets has the sole discretion to admit or remove available symbols in accordance with its Digital Asset Assessment Policy published on the Website.
• 3.3. The list of available symbols is published on the Platform.

4. EXECUTION

• 4.1. Any Transaction on the Platform is entered into within trading limits (“TP limits”) that are pre-defined by a User.
• 4.2. There are two types of TP limits: Global net and gross limits and Counterparty (i.e.,bilateral) net and gross limits:
  • 4.2.1. Counterparty limits are set against a particular counterparty;
  • 4.2.2. Global limits are the cumulative limits of a User.
• 4.3. There are two subtypes of TP limits: gross and net.
  • 4.3.1. Entering into a new Transaction is allowed only if both gross and net free limits are positive; otherwise the order will be rejected:
    • 4.3.1.1. Free gross limit = Gross limit - Gross exposure;
    • 4.3.1.2. Free net limit = Net limit - Net exposure.
  • 4.3.2. Gross exposure is equal to the max of an abs value of all short positions and abs value of all long positions. Net exposure is equal to the current revaluation of all net open positions at prevailing market rates.
  • 4.3.3. When calculating utilization, open orders and unsettled transactions are taken into account; worst case scenario approach is applied. For the exact calculation of TP limits and detailed methodology, please, contact Finery Markets’s representative.
• 4.4. The values of the TP limits are defined by Users. Counterparty limits set on a counterparty are visible to this counterparty if the counterparty also sets a limit on the user.
• 4.5. A User can enter into Transactions only with those other Users (counterparties) with which this User has an established legal relationship (it may imply a master trading agreement, an estimated and approved counterparty limit etc.). However, Finery Markets’ representatives do not check the agreements in place.
• 4.6. There is a self-trading prevention mechanism which means a User cannot enter into a Transaction with itself.
• 4.7. Makers are not allowed to trade with other makers. It may lead to the situation when there is a bid price higher than the best offer, or an offer lower than the best bid (so-called crossed markets).
• 4.8. The Platform calculates net open positions (“NOP”) per asset per counterparty, which is the opposite party in the trade or transaction. NOP of an asset takes into account all trades with this asset as well as all settlement transactions.
• 4.9. Makers can specify an overnight rate for the NOP which has not been settled by the counterparty. This charge is automatically added to an NOP at 0:00 UTC. A charge can be both negative or positive. Finery Markets invoices makers for a fraction of this charge.

5. HOURS OF OPERATION

• 5.1. The Platform is normally available 24 hours per day 7 days a week.
• 5.2. The Platform may be unavailable due to planned or unplanned technical maintenance. Finery Markets undertakes to inform the Users about any maintenance as early as possible.
• 5.3. Finery Markets does not guarantee the availability of its Platform unless a service level agreement (SLA) is in place with a particular User and recommends to have back-up channels for order execution.

6. PARTICIPANT ADMISSION

• 6.1. Admission to the Platform is subject to the due diligence checks.
• 6.2. Users agree to provide information and/or documentation requested by Finery Markets.
• 6.3. Users that do not provide the required information during the on-boarding process will not be permitted to access the Platform.
• 6.4. Users are responsible for keeping already provided information up-to-date.
• 6.5. Users must ensure their adequate financial soundness and that they have sufficient resources for complying with these Operating Rules and guaranteeing the settlement of Transactions.
• 6.6. Finery Markets has a right not to grant access to the Platform without specifying any reason.

7. ACCESS METHODS

• 7.1. Users may access the Platform by way of either Website if they choose to transact on the Platform by graphical user interface (“GUI”) or application program interface (“API”). Both ways require authorised access. Production credentials are provided by Finery Markets’s representatives.
• 7.2. Users must keep Finery Markets fully informed at all times of the identity of each software program or system that directly or indirectly accesses the Platform via API.
• 7.3. Finery Markets also provides access to the sandbox version of the Platform that can be used for testing purposes.
• 7.4. In case of lost or compromised Website credentials and/or API keys, a User must immediately contact Finery Markets in order to prevent unauthorised activity.

8. DATA

• 8.1. Finery Markets makes available to its Users market data, consisting of quotes placed by other Users. Users may receive market data via both GUI and API.
• 8.2. Market data feed is modified and disseminated in accordance with the current TP limits. In addition, a taker-specific markup can be applied by a maker. That means each taker has a unique data feed. In addition to the user-specific data feed, there is an aggregated market data feed that is composed of all orders placed by makers regardless of the TP limits.
• 8.3. Finery Markets is entitled to disseminate completely anonymous market data on the Finery Markets websites, including but not limited to pulse.finerymarkets.com, and make historical and real-time market data available to its subscribers pursuant to legal agreements with Finery Markets. In addition, Finery Markets has a right to disclose to its User certain trading statistics such as the share of this User of the overall trading volume of another User, which is a counterparty to the former.
• 8.4. On a daily basis, Finery Markets provides each User with a Confirmation by sending it to the authorised email address.
• 8.5. Any timestamp in the data is in UTC timezone.

9. ORDER TYPES

• 9.1. The Platform supports the following order types:
  • 9.1.1. Limit. A limit order allows buying or selling at a specific price or better.
  • 9.1.2. Limit Post-only. The post-only limit order ensures that a new limit order will be added to the order book only if it does not match with a pre-existing limit order.
  • 9.1.3. Limit Immediate-or-Cancel (IOC). IOC limit order is an order that must be immediately filled at the specified limit price or better. If it is not completely filled, the resting size will be cancelled. Partial fills are allowed.
  • 9.1.4. Limit Fill-or-Kill (FOK). FOK limit order is an order that must be immediately filled entirely at the specified limit price or better. Otherwise, it will be totally cancelled. No partial fills are allowed.
  • 9.1.5. Market IOC. IOC market order is an order that must be immediately filled at any market price. If it is not completely filled (due to insuffcient liquidity in the order book), the resting size is cancelled. Partial fills are allowed.
  • 9.1.6. Market FOK. FOK market order is an order that must be immediately filled entirely at any market price. Otherwise if there is insuffcient liquidity in the order book, it will be totally cancelled. No partial fills are allowed.
• 9.2. By default, a User have access to specific order types depending on its role:
  • 9.2.1. Makers can use Limit and Limit Post-only order types;
  • 9.2.2. Takers can use Market and Limit IOC as well as Market and Limit FOK order types.
• 9.3. As a measure to improve overall liquidity and eliminate “toxic” trading flow on the Platform, all aggressive orders are delayed by 50 milliseconds (so-called “latency floor”) as identified in Clause 2.

10. MARKET INTEGRITY

• 10.1. Finery Markets fosters market integrity and expects fair trading behavior from the Users.
• 10.2. Abusive trading practices are prohibited. Abusive trading practices include but are not limited to the following:
  • 10.2.1. Painting the tape. Engaging in a series of Transactions to give the impression of activity or price movement in an asset.
  • 10.2.2. Wash trade, wash sale. Improper Transactions in which there is no genuine change in actual ownership of an asset.
  • 10.2.3. Advancing the bid. Increasing the bid for an asset to increase its price.
  • 10.2.4. Pumping and dumping. Buying activity to increase prices in order to consequently sell at higher prices.
  • 10.2.5. Spoofing techniques. Placing a bona fide order on one side of the market while entering order(s) on the other side of the market without intention to trade those orders.
• 10.3. The Platform currently has a limited number of tools designed to protect it against excessive load and other errors. The Platform limits the maximum number of WebSocket connections per a single IP address to 100. However, there are neither rate limits on Transactions-per-second ratio, nor rate limits on filled-to-sent orders ratio, nor fat-finger checks (limits on the quantity or notional amount of orders etc.)
  • 10.3.1. rate limits on Transactions-per-second ratio;
  • 10.3.2. rate limits on filled-to-sent orders ratio;
  • 10.3.3. fat-finger checks (limits on the quantity or notional amount of orders etc.).
• 10.4. While the Platform intends to introduce some measures in the future, it is currently the responsibility of the Users to control their trading behaviour. Users must have in place adequate systems and controls to ensure their ongoing compliance with these Operating Rules and management of their trading activities.
• 10.5. Where there is a material disruption on the Platform, including malfunctions of the Platform, attempts to commit market abuse, failure by a third party that is required for the Platform, an emergency or extraordinary market conditions, or a force majeure event, Finery Markets may take such actions it deems necessary to restore the proper operation of the Platform. In the event of a system failure where the Platform experiences a service loss, open orders will be cancelled regardless of their time in force. Orders that were filled but not yet confirmed will be considered filled.

11. COMPLIANCE

• 11.1. Users are required to comply with U.S., E.U., and other applicable export control and sanctions laws and regulations at all times.
• 11.2. Users will not be permitted to use the Platform if:
  • 11.2.1. any of its owners, directors, workers or employees is a person whose name appears on the list of Specially Designated Nations and Blocked Persons published by the United States Department of Treasury Office of Foreign Assets Control (“OFAC”) (each, an “OFAC-Listed Person”), the United Kingdom’s HM Treasury Sanction List, the European Union’s Consolidated Sanctions List, or any other applicable sanctions list;
  • 11.2.2. a User or any owner or senior manager of a User is a department, agency or instrumentality of, or is otherwise directly or indirectly controlled by or acting on behalf of the government of any country that is the target of any of the several economic sanction programs administered by OFAC (31 C.F.R. Parts 501 through 598) or any OFAC-Listed Person;
  • 11.2.3. any of the funds used by a User to perform any of its obligations constitute or will constitute funds obtained from or on behalf of any OFAC-Listed Person or any other person subject to applicable sanctions.

12. INVALID TRANSACTIONS

• 12.1. There are two types of Transactions that may be deemed invalid and cancelled:
  • 12.1.1. Erroneous Transactions;
  • 12.1.2. Off-market Transactions.
• 12.2. Erroneous Transactions are those where:
  • 12.2.1. the counterparty is not an authorized Finery Markets User,
  • 12.2.2. the User exceeds any applicable CP limit, as a result of the User entering into such Transaction,
  • 12.2.3. the asset that is the subject of such Transaction is not permitted.
• 12.3. Off-Market Transactions are Transactions with the price deviating by more than 10% from the prevailing prices dealt for trades executed on by other Users on the Platform or on Exchanges at or around the time of the Transaction. The prevailing market is determined by Finery Markets, in its sole discretion, based on current market conditions.
• 12.4. Both the User and Finery Markets may initiate a Transaction review if a User or Finery Markets believes a Transaction constituted an Erroneous or Off-Market Transaction. However, Finery Markets is not under any obligation to review any Transaction and shall not be liable for any failure to do so.
• 12.5. Finery Markets will use its good faith efforts to make a Transaction review including contacting the parties to such Transaction and assisting the parties to arrive at a resolution which is reasonably acceptable to those parties. Finery Markets will not review any Transaction that has already settled. A final determination will be made by Finery Markets in its sole discretion and will be made as soon as reasonably possible. Use of the Platform constitutes acceptance of Finery Markets's right to resolve disputed Transactions in accordance with this Operating rules.

1. PURPOSE

1.1 The purpose of this policy is to identify the digital assets that Finery Markets will offer to its Users.

1.2 Finery Markets will use a risk-based approach to identify assets that may be offered by Finery Markets to Users. This risk-based approach is an industry-standard approach that mitigates potential high-risk assets which might be implicated in an activity such as fraud, money laundering, or other prohibited activity.

2. SCOPE

2.1 Finery Markets reserves the right to revise this policy at any time and for any reason.

2.2 Certain elements of this policy may be superseded by changes in the law of Finery Markets’ governing jurisdiction.

3. CRITERIA

3.1 Liquidity. The asset should have equal to or greater than an average of $10 million USD in average daily volume as measured in the preceding 30 calendar days. The volume data from Coinbase Pro, Binance, FTX, Kraken, Gemini, and Bitstamp as shown by coingecko.com will be used to assess this criterion.

3.2 Privacy. Finery Markets does not accept digital assets that are explicitly or implicitly designed to provide anonymity which might violate applicable regulations, including but not limited to anti-money laundering and tax reporting (so-called “privacy coins”).

3.3 Regulation. Finery Markets does not accept

• 3.3.1 Assets that would be classified as a security or a regulated financial instrument either in the jurisdiction where they are issued, in the jurisdiction where Finery Markets operates, or any other jurisdiction at the discretion of Finery Markets.
• 3.3.2. Assets should not require Finery Markets to report a value-added tax in Cyprus.
• 3.3.3. Assets that would violate any other applicable laws, regulations, third-party rights and can not be in violation of public interests, public ethics or other’s legitimate interests would not be offered to the User.

3.4 Reputation.

• 3.4.1. Assets must be listed on at least 1 major exchange based in the European Union (EU) or the United States (US). A major exchange is one that is based in either the US or the EU and in the top-10 exchanges by volume on coingecko.com.
• 3.4.2. The legal entity issuing the asset, including but not limited to the directors, executive team and advisors should not be subject to negative publicity including but not limited to official sanctions lists of states or individuals that are published by various authorities on a national and international level including by not limited to the OFAC Specially Designated Nationals and Blocked Persons or the European Union Consolidated Financial Sanctions list, or court judgments.
• 3.4.3. The asset has not been an active participant in trading manipulation or illegal trading including but not limited to scams, wash trading, or pump and dump schemes.

4. INITIAL AND ONGOING MONITORING

4.1 Before any asset is made available by Finery Markets to the Users, it will be subject to a written risk assessment as specified above.

4.2 All accepted assets will be subject to an annual review or may be subject to review at the request of a corporate director.

4.3 Ongoing monitoring for asset changes to this policy, including but not limited to adverse media or changes to liquidity will be conducted using industry-standard methods.

5. RESPONSIBLE PERSON

5.1 The corporate director will be responsible for updating this policy on no less than an annual basis.

5.2 The corporate director will be responsible for conducting an initial review of assets, ongoing monitoring of assets, and an annual review of assets.

5.3 The corporate director will be responsible for directing Finery Markets executives to de-list any asset which is not in compliance with this policy.