Trading Platform Terms and Conditions

Last Modified: September 25, 2023

PLEASE NOTE: BEGINNING ON SEPTEMBER 4, 2023, YOU MAY NO LONGER PURCHASE BUSD FROM PAXOS OR WITHDRAW BUSD FROM YOUR ACCOUNT. THROUGH AT LEAST FEBRUARY 1, 2024, YOU MAY REDEEM YOUR BUSD FROM PAXOS SUBJECT TO THE US DOLLAR-BACKED STABLECOIN TERMS AND CONDITIONS.

PLEASE NOTE: PURSUANT TO SECTION 4.1.13 OF THE GENERAL TERMS AND CONDITIONS, BEGINNING ON AUGUST 30, 2023, PAXOS WILL TERMINATE RETAIL ACCOUNT CUSTODY AND TRADING PLATFORM SERVICES FOR MEMBERS WHO DO NOT MEET CERTAIN CRITERIA DETERMINED BY PAXOS IN ITS DISCRETION. THIS ACTION WILL NOT IMPACT ANY USERS ACCESSING PAXOS THROUGH ITS THIRD PARTY CRYPTO BROKERAGE PARTNERS. YOU WILL BE NOTIFIED IF YOUR ACCOUNT IS SUBJECT TO CLOSURE. INSTRUCTIONS AND REQUIREMENTS FOR MOVING ANY ASSETS HELD IN YOUR ACCOUNT OFF OF THE PAXOS PLATFORM WILL BE PROVIDED TO YOU. THESE INSTRUCTIONS WILL SUPERSEDE ANY CONFLICTING INFORMATION OR INSTRUCTIONS FOR WITHDRAWING ASSETS PROVIDED IN THIS TRADING PLATFORM  AGREEMENT OR OTHER PAXOS CONTRACTUAL DOCUMENTATION. PLEASE SEE HERE FOR FAQS.

 

The Trading Platform Terms and Conditions (hereinafter “Trading Platform Agreement” or “Trading Platform Terms and Conditions”) constitute an addendum to the General Terms and Conditions for the provisions of and use of Paxos’s custody services (“Custody”), as well as the crypto asset trading platform managed by Paxos and operating under the trade name itBit. These terms apply to each electronic form or contract executed by users and/or members who use Custody or the Trading Platform, unless expressly stipulated otherwise in the Paxos Contractual Documentation. If you have separately executed an agreement with Paxos regarding your use of Custody or the Trading Platform (e.g., to access the Trading Platform via an application programming interface, or an over-the-counter trading services agreement), in the event of a conflict between that agreement and the Trading Platform Agreement, the terms of that other agreement shall govern and control. To the extent there is a conflict between the Trading Platform Agreement and the General Terms and Conditions, the terms of this Trading Platform Agreement shall govern and control. Capitalized terms not otherwise defined herein shall have the meaning ascribed to them in the General Terms and Conditions.

Should you have any questions or comments regarding any Paxos services and products, please reach out to our customer support team by submitting a support ticket here.

1.        PRELIMINARY PROVISIONS

1.1        Agreement to Trading Platform Terms and Conditions.

1.1.1        You must agree to all of the terms of this Trading Platform Agreement. If you do not agree to or accept all of the terms of this Trading Platform Agreement, please immediately discontinue access to, and use of, all Paxos services and products. This Trading Platform Agreement applies to all users and/or customers of the Trading Platform, whether as a guest or a registered user.

1.1.2        By agreeing to this Trading Platform Agreement, you agree to be bound by the General Terms and Conditions and the rest of the Paxos Contractual Documentation, as applicable.

1.1.3        If you are under the age of eighteen (18) or the legal age for entering legally binding contracts under applicable laws, you are not permitted to use any of Paxos services and products. By continuing to access or use the Site, you indicate that you are (18) years of age or older or have the legal capacity to enter legally binding contracts under applicable laws. Misrepresentation of your age to gain access to any of Paxos services and products is a breach of this Trading Platform Agreement.

 

1.2        Definitions.

“Account” means your account with the Trading Platform.

“Market Data” means the market value data compiled and published by Paxos on the Site or otherwise, including bid prices, ask prices, trade prices and trading volume.  Trading volume is calculated by adding together the notional values of trades executed on the Trading Platform.

2.        CRYPTO ASSET RISKS

2.1        As crypto assets are not legal tender and not backed by the government, they are subject to enhanced risks. These risks include (but are not limited to) the following:

(i)        accounts and value balances of crypto assets are not subject to Federal Deposit Insurance Corporation (“FDIC”) or Securities Investor Protection Corporation protections;

(ii)        legislation and regulation (or lack thereof) of crypto assets or crypto trading platforms can change at any time which may adversely affect the use, transfer, trade, and/or value of crypto assets;

(iii)        once executed, a crypto asset transaction may be irreversible, and accordingly, losses due to fraudulent or accidental transactions may not be recoverable;

(iv)        some crypto asset transactions shall be deemed to be made when recorded on a public ledger (e.g., a blockchain), which is not necessarily the date or time that the customer initiates the transaction;

(v)        the value of crypto assets may be derived from the continued willingness of market participants to trade fiat currency for crypto assets, which may result in the potential for permanent and total loss of value of a particular crypto asset should the market for crypto assets collapse;

(vi)        there is no assurance that a person who accepts a crypto asset as a payment today will continue to do so in the future;

(vii)        the volatility and unpredictability of the price of crypto assets relative to fiat currency may result in significant loss over a short period of time;

(viiI)        the value of a particular crypto asset may fall at any time, if, for example a new, better crypto asset is created or software developers make unexpected changes to how the crypto asset works;

(iv)        as crypto assets are digital currency and therefore intangible, this means that like any other digital system, crypto assets are at risk of fraud, cyber attacks, and being affected by technical problems or difficulties which could result in you losing your crypto assets or delaying or preventing your ability to access or use them; and

(x)        any bond or trust account maintained by Paxos for the benefit of its customers may not be sufficient to cover all losses incurred by its customers.

For additional information regarding trading risks, please review the contents of Section 4 below.

2.2        TO THE FULLEST EXTENT PERMITTED BY LAW, PAXOS MAKES NO REPRESENTATION REGARDING THE LIKELIHOOD OR PROBABILITY THAT ANY ACTUAL OR PROPOSED TRADES ON THE TRADING PLATFORM WILL IN FACT ACHIEVE A PARTICULAR OUTCOME OR GOAL. PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE SUCCESS, AND IN FACT VOLATILITY MEANS THAT RETURNS IN ANY PERIOD MAY BE FAR ABOVE OR BELOW THOSE OF PREVIOUS PERIOD.

3.        THE TRADING PLATFORM

3.1        Trading.

The Trading Platform allows Members to trade crypto assets, with the Trading Platform acting in an agency capacity. All crypto assets traded by and between our Members, are sourced from the Members themselves. All crypto assets transferred to us by Members for use in trading on the Trading Platform are deposited by the Trading Platform into, and are held in, an omnibus client account, controlled by the Trading Platform. The Trading Platform enables Members to offer a trade at a given price, or to accept a trade at a price that another Member has offered. When the Trading Platform matches orders of its users (i.e., a Member accepts a trade offered by another Member), a trade occurs. This trade transfers ownership between users and is reflected in adjustments to Members’ fiat currency and crypto asset balances on our ledger. All trading activity on the Trading Platform is “off-chain” and is not broadcast to the applicable blockchain.

 

3.2        Supported Assets; Termination of Supported Assets.

3.2.1        Crypto assets available on the Trading Platform for trading, for custody with Paxos, and for withdrawal, include Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH), PAX Gold (PAXG), Uniswap (UNI), Aave (AAVE), Polygon (MATIC), Chainlink (LINK) and Solana (SOL). BTC, ETH, LTC, BCH, and PAXG, were approved for customers of Paxos Trust through specific approval from the New York Department of Financial Services (the “NYDFS”), and UNI, AAVE, MATIC, LINK and SOL were self-certified by Paxos pursuant to our NYDFS-approved Coin Listing Policy. Stellar Lumens and Cardano are available for trading only over-the-counter, and are also available for custody with Paxos and for withdrawal; these assets were approved for customers of Paxos Trust through specific approval from the NYDFS. Paxos has also self-certified the following crypto assets pursuant to our NYDFS-approved Coin Listing Policy: USD Coin (USDC), yearn.finance (YFI), Basic Attention Token (BAT), Dogecoin (DOGE), OMG Network (OMG), Kyber Network (KNC), Bancor (BNT), 0x (ZRX), and Uma (UMA). USD Stablecoins are available for Trading Platform credit as USD, for custody, and for withdrawal.

3.2.2        Beginning on February 21, 2023, you may no longer purchase BUSD from Paxos or withdraw BUSD from your Account. Through at least February 1, 2024, you may redeem your BUSD from Paxos subject to these USD Stablecoin Terms and Conditions. These assets were approved for customers of Paxos Trust through specific approval from the NYDFS. Paxos does not accept fees or other monetary or in-kind compensation from the issuers of these supported tokens, except that we may earn interest and/or other earnings where we custody reserves backing US dollar stablecoins, as described in the General Terms and Conditions. Restrictions may apply in accordance with applicable law.

3.2.3        Your Account is intended solely for proper use of supported crypto assets as are designated by Paxos from time to time. Under no circumstances should you attempt to use your Account to store, send, request, or receive any assets other than supported crypto assets. Paxos assumes no responsibility in connection with any attempt to use your Account with crypto assets that we do not support. Paxos may choose to support new crypto assets in its sole discretion, subject to applicable law. Paxos will make reasonable efforts to provide prior notice to Members of any decision made to support a new crypto asset. The decision to support a new crypto asset will depend on a number of factors, including regulatory approval and market demand. Paxos has not received listing fees or any other form of consideration to list any crypto asset.

3.2.4        Paxos may in its sole discretion terminate support for any particular crypto asset at any time. Paxos will make reasonable efforts to provide prior notice to Members of any decision made to cease support of a crypto asset. If you do not sell or send such crypto asset off platform before Paxos terminates its support for such crypto asset, then Paxos may, in its discretion, remove such crypto asset from your Account and credit your Account the equivalent market value of another supported crypto asset or fiat currency minus any corresponding transaction costs.

4.        DISCLAIMER; TRADING PLATFORM MARKET DATA

4.1        We are providing you a method by which you can swap, trade, and/or store certain crypto assets, and we make no representations or warranties concerning the value, stability, or legality of any such crypto assets. Trades offered by Members may not reflect the fair market value of the crypto asset offered. Liquidity on the Trading Platform may vary. Certain types of trades, such as market orders, may fill partly at or near fair market value and partly at a price that does not reflect fair market value. Trade with caution, and limit your trading to types of trades that are suitable for you and your risk tolerance.

For additional information regarding the difference between order types supported for trading, please consult the Paxos User Guide, available here. Please also review the General Terms and Conditions for additional risk factors.        

4.2        Paxos compiles and publishes Market Data. You understand, acknowledge and agree that, due to technical and other restrictions, the crypto asset values displayed on our Site and in the Market Data may be delayed and therefore not reflect the current, live market value of such crypto asset. Nonetheless, you agree that the values displayed on our Site control your Account and your use of the Site, the Trading Platform and the Services. You agree that we are not responsible for any adverse consequences that you may experience, or costs that you may incur, arising from any lapse, failure, outage or error in receiving Market Data from Paxos.  

4.3        Paxos may share (including by sale or license) the Market Data with third parties. Such Market Data will not identify any particular Member nor attribute trade(s) to a particular Member by name, subject to Section 13 of the General Terms and Conditions.        

5.        FDIC COVERAGE

U.S. Dollar deposits are held in one or more omnibus accounts at banks located in the United States with the intention that they are eligible for FDIC “pass-through” deposit insurance, subject to applicable FDIC regulations. Our policies are designed to comply with the FDIC’s requirements for recognition of relationships entitled to pass-through insurance.  Non-U.S. Dollar deposits held at a U.S. bank as well as U.S. dollar deposits held at banks outside of the U.S. may not be eligible for FDIC deposit insurance.

6.        OPENING YOUR ACCOUNT

In order to use the Trading Platform, you must create an Account. Your Account will be used to store various crypto asset amounts and fiat currency amounts as deposited and/or received by you. In order to create and maintain an Account on the Trading Platform, you must meet certain criteria prescribed by Paxos in its sole discretion.

5.1         Account Opening Procedures.

Paxos will, as part of its account opening process: (i) cross-check the names of users against compliance databases such as the OFAC Specially Designated Nationals list and other governmental watch lists; (ii) require users to verify and validate their identity and identification documents presented at onboarding; and (iii) not permit any activity on platform with incomplete account opening information.

5.2        Illegal Activities.

By your use of the Services, you represent that such use is legal in your local jurisdiction, and you agree that you will not use the Services if such use is prohibited or otherwise violates the laws of the country, state, province, or other jurisdiction in which you reside or of which you are a citizen.

6.        YOUR TRADING PLATFORM ACCOUNT

6.1        Funding Your Account.

6.1.1        After creating your Account with Paxos, you will be able to fund your Account with crypto assets and with fiat currency.

6.1.2         To fund the Account with crypto assets, you may transfer, for example, Bitcoin, from your account(s) with third-party crypto asset provider(s) (often known as “wallets”) into your Account operated by the Trading Platform. For example, to fund your Account with 100 Bitcoin, you would use the third-party Bitcoin software to transfer your own pre-existing 100 Bitcoin from your wallet to the Trading Platform’s Bitcoin address for the omnibus client account. The Trading Platform would then credit your Account with 100 Bitcoin on the Trading Platform’s ledger, and you would be able to trade those Bitcoin on the Trading Platform.

6.1.3        You may also fund your Account with fiat currency transferred from your account(s) with financial institutions. These would be transferred to the omnibus client account, and then the Trading Platform would credit your Account for that amount of fiat currency on the Trading Platform’s ledger. If a fiat currency deposit does not originate from a bank account owned by you, it will be rejected and returned immediately. Fiat currency sent before 3 p.m. New York time will typically be credited to your Account on the same day or next business day. US dollar deposits may not be credited outside of normal banking hours. Transfer times are subject to bank holidays, the internal processes and jurisdiction of your bank, and the internal processes of our banks. In certain situations, fiat currency deposits may be delayed in connection with Downtime.

6.1.4        When determining the amount you wish to transfer into your Account, you should be aware that you must deposit funds prior to placing an order through the Trading Platform in an amount sufficient to satisfy your order (and associated fees, if any). All orders on the Trading Platform must be pre-funded or they will not be accepted by Paxos or the Trading Platform.

6.1.5        You represent and warrant that all funds, including fiat currency and crypto assets, that you transfer to us do not represent the proceeds of any criminal or fraudulent activity. You are not allowed to receive funds in your Account from a sender other than yourself, unless you receive specific prior approval otherwise from us. If we reasonably determine that you are not the owner of funds in your Account, we reserve the right to dispose of those funds in accordance with applicable law and in our sole discretion, which may include returning the funds to the originator or to a charity of our choosing.

6.1.6        We will make reasonable efforts to process electronic debits from and credits to your bank account, but we make no representations or warranties regarding the amount of time needed to complete processing.

6.2        Placing a Trade.

Prior to the placement of a trading order on our Trading Platform, you will be required to review the following information: the type of order (buy/sell, and market/limit/post-only order), the amount of the order, the price, and the estimated fee (if any) to be charged by the Trading Platform for executing the order. If you place a large market order, the Trading Platform may request that you re-confirm the order because large market orders may trade at a price substantially higher or lower than fair market value. For customers of Paxos Trust Company, LLC, we will maintain records of your transaction history for a period of no less than seven years.

6.3        Irreversible Trades.

Once an order has been executed and the appropriate currencies and assets have been credited and debited from the Members’ Accounts on the Trading Platform ledger, the transaction may not be reversible.

6.4        Canceling Trades.

6.4.1        You have the right to cancel an open (i.e., unmatched) bid or offer to sell or buy crypto assets by initiating procedures through your Account online to effectuate closure of such open bid or offer. Such cancellation request may not be processed immediately by the Trading Platform, and accordingly, the open order may be executed after the cancellation request for that order has been submitted. If this occurs, the order will not be canceled.

6.4.2        Absent mutual consent of parties involved, we reserve the right to cancel or nullify trades in the event that:

(i)        the trade resulted from an erroneous print disseminated by the underlying market that is later canceled or corrected, where such erroneous print resulted in a trade higher or lower than the average trade in the underlying currency pair during the time period encompassing five (5) minutes before and after the erroneous print, by an amount at least five times greater than the average quote width for such underlying currency pair during such time period;

(ii)        the trade resulted from an identifiable interruption or malfunction of an Trading Platform execution or communication system that caused a quote or order to trade in excess of its disseminated size or quote;

(iii)        the trade resulted from an erroneous quote in the primary market for the underlying currency pair that has a width of at least ten United States dollars (US$10.00) or that width is at least three times greater than the average quote width for such underlying crypto asset during the time period encompassing five minutes before and after the dissemination of such quote. For clarity, the underlying market includes various digital currency venues and FX rates; or

(iv)        the trade occurred at a price caused by any of the above, at a price 10% above or below fair market value, or at a price deemed clearly erroneous at Paxos’s sole discretion.

6.5        Withdrawing or Transferring Assets.

PLEASE NOTE: BEGINNING ON SEPTEMBER 4, 2023, YOU MAY NO LONGER PURCHASE BUSD FROM PAXOS OR WITHDRAW BUSD FROM YOUR ACCOUNT. THROUGH AT LEAST FEBRUARY 1, 2024, YOU MAY REDEEM YOUR BUSD FROM PAXOS SUBJECT TO THE USD STABLECOIN TERMS AND CONDITIONS.  

PLEASE NOTE: PURSUANT TO SECTION 4.1.13 OF THE GENERAL TERMS AND CONDITIONS, BEGINNING ON AUGUST 30, 2023, PAXOS WILL TERMINATE RETAIL ACCOUNT CUSTODY AND TRADING PLATFORM SERVICES FOR MEMBERS WHO DO NOT MEET CERTAIN CRITERIA DETERMINED BY PAXOS IN ITS DISCRETION. THIS ACTION WILL NOT IMPACT ANY USERS ACCESSING PAXOS THROUGH ITS THIRD PARTY CRYPTO BROKERAGE PARTNERS. YOU WILL BE NOTIFIED IF YOUR ACCOUNT IS SUBJECT TO CLOSURE. INSTRUCTIONS AND REQUIREMENTS FOR MOVING ANY ASSETS HELD IN YOUR ACCOUNT OFF OF THE PAXOS PLATFORM WILL BE PROVIDED TO YOU. THESE INSTRUCTIONS WILL SUPERSEDE ANY CONFLICTING INFORMATION OR INSTRUCTIONS FOR WITHDRAWING ASSETS PROVIDED IN THIS TRADING PLATFORM AGREEMENT OR OTHER PAXOS CONTRACTUAL DOCUMENTATION. PLEASE SEE HERE FOR FAQS.

6.5.1        Members may withdraw some or all of their crypto assets or fiat currency from their Accounts at any time, upon request to us, pursuant to these Trading Platform Terms and Conditions. Withdrawals may take up to three (3) days to complete, provided that larger withdrawals may take up to thirty (30) days to complete. Fiat currency will be transferred from the Member’s Account with the Trading Platform to the bank account designated by, and owned by, the Member. Please note that any withdrawal of crypto assets or fiat currency may be delayed as necessary to comply with applicable law and/or Paxos’s compliance program, including verification of customer identification, anti-money laundering procedures and as further detailed below.

6.5.2        Subject to the payment of any applicable fees as further specified herein and in the Paxos Contractual Documentation, you may transfer crypto assets that are supported by Paxos between your Account and (i) other Paxos Member accounts (note if you are a Member outside of the United States, you are not permitted to transfer USD to other Paxos Member accounts) or (ii) external wallets held by third parties and not hosted by Paxos (“Crypto Transfers”). Insufficient payment of  third-party network or other fees may cause a Crypto Transfer to remain in a pending state outside of Paxos’s control and Paxos is not responsible for delays or loss incurred as a result of an error in the initiation of the transaction.

6.5.3        Once a Crypto Transfer has been successfully completed, Paxos will recognize the Crypto Transfer on the relevant block-chain, if applicable. Prior to completion, Crypto Transfers may reflect a pending transaction status and will not be available to you for use via the Trading Platform or otherwise while the transaction is pending.

6.5.4        Among other compliance related activities related to Crypto Transfers, Paxos may conduct blockchain monitoring with respect to originating or recipient external third-party wallet addresses. If any such third-party wallet address is flagged by Paxos’s blockchain monitoring service, Paxos will perform a manual compliance review of such address (a “Manual Compliance Review”). During the period of any Manual Compliance Review, the relevant crypto assets will not be available for use. Following Paxos’s successful completion of a Manual Compliance Review, the impacted crypto assets will be promptly made available for a Crypto Transfer.

6.5.5        Paxos reserves the right to reject any Crypto Transfer that it deems, in its sole discretion, poses an excessive risk, or as required by any court or applicable law. Paxos will not complete any Crypto Transfer if the crypto assets are not supported by the Trading Platform and available at the time of the Crypto Transfer.

6.5.6        YOU ARE REQUIRED TO AND ARE RESPONSIBLE FOR VERIFYING THE ACCURACY AND COMPLETENESS OF ALL TRANSACTION INFORMATION SUBMITTED IN RESPECT OF A CRYPTO TRANSFER (INCLUDING, BUT NOT LIMITED TO, THE APPLICABLE DESTINATION ADDRESS AND THE AMOUNT AND TYPE OF CRYPTO ASSETS). YOU UNDERSTAND AND AGREE THAT PAXOS BEARS NO LIABILITY OR RESPONSIBILITY IN THE EVENT THAT (I) YOU PROVIDE INCORRECT TRANSACTION INFORMATION, (II) YOU ATTEMPT TO INITIATE A CRYPTO TRANSFER FOR CRYPTO ASSETS THAT ARE NOT SUPPORTED BY PAXOS AND/OR THE DESTINATION ADDRESS, OR (III) PAXOS REJECTS A CRYPTO TRANSFER. YOU FURTHER UNDERSTAND AND AGREE THAT CRYPTO TRANSFERS CANNOT BE REVERSED ONCE THEY HAVE BEEN BROADCAST TO THE RELEVANT BLOCKCHAIN NETWORK OR COMMUNICATED TO THE TRADING PLATFORM (EVEN WHEN IN A PENDING STATE). PAXOS DOES NOT CONTROL THE BLOCKCHAIN NETWORK AND MAKES NO GUARANTEES THAT ANY CRYPTO TRANSFER WILL BE CONFIRMED BY THE APPLICABLE NETWORK

7.        FORKS

7.1        You understand, acknowledge and agree that the underlying operating rules of certain crypto assets may change from time to time in such a way as to result in more than one related version of an existing crypto asset (each instance of any such change, a “Fork”). If a Fork occurs, it will result in the creation of a new crypto asset (the “New Forked Asset”) related to an existing crypto asset (the “Prior Asset”). As a result, we will hold an amount of the New Forked Asset proportional to our holdings of the Prior Asset. You further understand, acknowledge and agree that each Fork may materially affect the value, function, and/or name, of the original crypto asset that we custody on your behalf or you hold in your Account, and that the New Forked Asset may have minimal or no value.

7.2        WE HAVE NO CONTROL OVER, NOR DO WE HAVE THE ABILITY TO INFLUENCE, THE CREATION OR IMPLEMENTATION OF A FORK OR OF THE NEW FORKED CURRENCY. WE CAN PROVIDE NO ASSURANCES ABOUT THE SAFETY, FUNCTIONALITY OR SUPPLY OF ANY CRYPTO ASSET, INCLUDING BOTH THE NEW FORKED ASSET AND THE PRIOR ASSET. YOU UNDERSTAND, ACKNOWLEDGE AND AGREE THAT WE ASSUME NO LIABILITY RELATING TO ANY CHANGE IN THE VALUE OF ANY CRYPTO ASSET (WHETHER OR NOT RESULTING FROM A FORK).

7.3        If a Fork occurs, you understand, acknowledge and agree that we may temporarily suspend the operations of the Trading Platform (with or without advance notice to you) while we determine, in our sole discretion, whether to support either or both of the New Forked Asset and the Prior Asset. In addition, while we will endeavor to make this determination expeditiously, we have the right to continue the suspension of the Trading Platform for such length of time as we deem prudent in order to make such determination. You understand, acknowledge and agree that the Trading Platform is unlikely to support trading in all New Forked Assets.

7.4        You understand, acknowledge and agree that you have no right, claim or privilege in, or with respect to, any New Forked Asset. If we do not support a New Forked Asset, you may not be able to withdraw the New Forked Asset from the Trading Platform promptly or at all; you may not be able to trade the New Forked Asset on our platform for fiat currency or other crypto assets; and you may lose any value associated with such New Forked Asset. If we determine not to support a New Forked Asset, we may, in our sole discretion, (i) obtain and retain the New Forked Asset as property belonging to us; or (ii) make the New Forked Asset available to you on a one-time basis, based on your holding of the Prior Asset at the time of the Fork, subject to the withholding and retention by us of an amount reasonably calculated to fairly compensate us for the cost of making such New Forked Asset available and subject to our withdrawal procedures. We will notify you only if we elect to permit a one-time withdrawal pursuant to (ii) above.

7.5        You understand, acknowledge and agree that if you or a third party deposits an amount of a New Forked Asset (or any other crypto asset) that the Trading Platform does not support into our omnibus client account for crypto assets, we have the right to and will account for any such unsupported crypto asset (including unsupported New Forked Assets) as belonging to us. We have, and assume, no obligation or duty to return the crypto asset transmitted to one of our accounts. If we determine, in our sole and absolute discretion, to return the unsupported crypto asset, we retain the right to charge transaction and/or other fees in connection with the transfer of the unsupported crypto asset off of our platform.

8.        AIRDROPS
You understand, acknowledge  and agree that in the event that a third party attempts to or does distribute (sometimes called “airdropping” or “bootstrapping”) a crypto asset (whether or not supported by the Trading Platform) to crypto asset addresses, we will treat such airdropped crypto asset as we would treat all unsupported crypto assets, as set forth in Section 7.5 above. You further agree and understand that airdropped crypto assets do not create a relationship between us and the transferor, or sender, and/or the related network that created the airdropped crypto asset; and, further that we are not subject to any obligation as it may relate to the transferor and/or the related network.

9.        FEES

9.1        Trading Fees.

An overview of our trading fees is set forth here (“Trading Fee”).  The Trading Fee is added to the purchase price for buyers and subtracted from the sale price for sellers.

9.2        Banking Fees.

We charge transaction fees for deposits into Paxos’s bank accounts and withdrawals from Paxos’s bank accounts to customer bank accounts (collectively, “Banking Fees”). These fees are deducted from the amount transferred. Our deposit and withdrawal fees are set forth here. Among other fees, Paxos passes through the market “network” fee, or an approximation thereof, to the customer when transferring digital assets to an external wallet address.

In addition to the fees described above, your financial institution and/or the provider of your crypto asset wallet may charge transaction and other fees related to the transfer of funds to your Account.

9.3        Crypto Transfer Fees.

With respect to on-chain activity for PAXG, Paxos may charge the fees set forth here. With respect to withdrawals of supported crypto assets, including PAXG, you will be subject to the applicable market network fees and other fees as described here.

9.4        Additional Fees for Certain Accounts.

Due to the cost of maintaining and supporting your Account and subject to applicable law, you will incur a monthly charge of two U.S. Dollars (US $2.00) (or equivalent in other fiat or crypto asset) if you maintain a non-zero balance (or equivalent in other fiat or crypto asset) and there has been no trading activity on the Account for twelve months or longer. Such fee will be auto-debited from your account on a periodic basis in USD or the then current crypto asset equivalent.

For more information on fees for Custody Accounts, please reach out to [email protected].

9.5        Right to Change Fees and Fee Structure.

We reserve the right to change or modify our fee structure or increase any of our fees at any time and from time to time. Any such changes, modifications or increases will be effective upon posting such changes, modifications or increases on our Site. Your first use of your Account following the posting on the Site of any changes to the fees will constitute your acceptance of such changes. If you do not agree to the posted changes, you may close your Account as provided in this Trading Platform Agreement.

10.        MARKET MAKERS

10.1        We may engage one or more market makers (each, an “MM”) to act as liquidity providers on the Trading Platform. You understand and agree that we may provide information concerning bids and offers placed by participants on the Trading Platform (including you) to such MMs prior to posting such bids and offers to the Trading Platform. The MMs will have the opportunity, but not the obligation, to accept and fill such bids and offers prior to the other participants on the Trading Platform (including you), should such bids be matched at lower prices and such offers be matched at higher prices (i.e., a more favorable bid or ask price) than they otherwise would have received had the originally proposed bids and offers been routed directly through the Trading Platform.

10.2        A Market Maker acting in a principal capacity may be affiliated with us (“Affiliated MM”) and may engage in transactions on the Trading Platform as well as in over-the-counter transactions with Members, provided, however, that (a) Affiliated MM trading will always be designed to be revenue-neutral over the long term (i.e., we do not profit from these transactions as a whole), and (b) no Affiliated MM will use earlier or different access to information about Trading Platform bids and offers from what is available to other API-integrated Members.