Wealthmark Leveraged Tokens
Version: 18 August 2022
This Wealthmark Leveraged Tokens
Agreement (this “Agreement”) shall apply to all BLVT issued,
redeemed and/or traded on the Platform.
All capitalised terms and
references used in this Agreement that are not defined herein shall have the
meaning given to them in the Wealthmark Terms
purposes of this Agreement only, the definition in this Agreement shall prevail.
The terms in this Agreement
of the Platform for the purposes of transacting in BLVT and references in the
trading of BLVT and the related services contemplated hereunder, where relevant.
In the event of any conflict or inconsistency between the terms in this
respect to the services contemplated hereunder unless expressly stated
The terms in this Agreement
shall be further supplemented by the Wealthmark Leveraged
Tokens Trading Rules
, as updated from time to time (the “Trading
). In the event of any conflict or inconsistency between the
terms in this Agreement and the Trading Rules, the Trading Rules shall prevail
with respect to the services contemplated hereunder unless expressly stated
This version of this Agreement
shall replace and supersede any previous agreements between us with respect to
BLVT and any previous versions of this Agreement that may have been accepted
through, or otherwise made available on, the Platform. By subscribing to,
redeeming and/or trading in BLVT, you confirm your acceptance of this Agreement,
definitions are applicable to the terms of this Agreement:
“Basket” has the meaning given to it in clause
2.3 of this Agreement.
“Basket Value” means, in respect of each BLVT,
the combined market value of all USD(S)-M Futures Contracts
constituting the Basket.
“BLVT” or “Leveraged Token”
means a series of Tokens issued by Wealthmark that represent a
leveraged position in the relevant Basket, comprising long or
short positions in USD(S)-M Futures Contracts referencing the
Account” has the meaning given to it in clause 2.3
of this Agreement.
Account Value” means, with respect to a BLVT, the
number of Tokens issued by the relevant BLVT Account multiplied
by the Token Price of each Token, as determined by Wealthmark.
Fees” has the meaning given to it in clause 3.7.
Limit” has the meaning given to it in clause 3.4.
“Leverage Ratio” means, with respect to a BLVT,
the quotient obtained by dividing the Basket Value by the BLVT
“Perpetual Futures Contracts” means contracts
representing an obligation to buy or sell a Digital Asset (the
“Underlying”) at a specific price, at any time
while the contract remains open, with no specific expiry date.
“Rebalancing” has the meaning given to it in
clause 2.6 of this Agreement.
“Reverse Token Splits” has the meaning given to
it in clause 2.7 of the Agreement.
“Target Leverage Ratio” means the particular
Leverage Ratio that a Basket is looking to maintain , which is
set by a Wealthmark proprietary algorithm and will be within a
range of between 1.25x and 4x (the “Target Leverage
“Token” means, in respect of each BLVT, each
individual digital token (or fraction thereof) issued by
that has a value assigned to it and forms part of that BLVT.
Price” has the meaning given to it in clause 2.4 of
“USD(S)-M Futures Contract” means a Perpetual
Futures Contract that is quoted, settled and margined in USD
stablecoins (BUSD and USDT) and is traded on the Platform.
are inserted for convenience only and shall not affect the
construction of this Agreement. Expressions in the singular form
shall include the plural and vice versa, and all references to
the masculine genders shall include the female and neuter
genders and vice versa.
“include” or “including” shall be deemed to be followed by
“without limitation” or “but not limited to” whether or not they
are followed by such phrases or words of like import, and
“otherwise” shall not be construed as limited by words with
which it is associated.
Features of BLVT
BLVTs are a
type of derivative product that allows you to gain leveraged
exposure to an underlying Digital Asset, without the requirement
to pledge collateral or meet certain margin requirements and
without the risk of liquidation.
Wealthmark is the
sole issuer of BLVTs and also a market maker in BLVTs. You may
request to subscribe for BLVT, redeem existing BLVT or trade
BLVT on the secondary market through functionality available on
Each BLVT has
an associated segregated account on the Platform (each, a
“BLVT Account”) that holds a dynamically
adjusted basket of USD(S)-M Futures Contracts referencing the
relevant Underlying referred to (the “Basket”).
For example, the “BTCUP” Token will reference a Basket of long
positions in BTCUSDT USD(S)-M Futures Contracts. The number and
type of USD(S)-M Futures Contracts included within a Basket are
automatically selected by a Wealthmark proprietary algorithm by
reference to the Target Leverage Ratio that the Basket is
looking to maintain.
The price at
which each Token issued with respect to a BLVT may be subscribed
for or redeemed (the “Token Price”), is
referred to on the Platform as the “NAV” and is intended to
reflect the current market value of the Token. This takes into
account the Basket Value of the associated BLVT Account that has
issued the Token and the applicable Leverage Ratio. It is
important to note that the Token Price will always differ from
the price of the Underlying.
If, at any
point, the Leverage Ratio of a BLVT falls outside the Target
Leverage Range, Wealthmark will rebalance the associated Basket
either buying additional USD(S)-M Futures for inclusion in the
relevant Basket or selling a certain number of USD(S)-M Futures
Contracts included within the relevant Basket, so as to bring
the Leverage Ratio back within the Target Leverage Range (a
“Rebalancing”). It may not always be possible
for the Leverage Ratio to be within the Target Leverage Range at
all times, such as in periods of extreme market volatility.
Leverage Ratio is not fixed and varies from time to time. As
such, Rebalancing will only occur when market conditions deem it
necessary rather than at predefined intervals. This reduces the
risk of any front-running of BLVT. Further information with
respect to Rebalancing of BLVT can be found here: What Is
Wealthmark Leveraged Tokens Rebalancing.
In order to
provide a better trading experience for users, Wealthmark may,
time to time, make a BLVT subject to a reverse token split
process to consolidate the existing number of Tokens into a
smaller number of proportionally more valuable Tokens (a
“Reverse Token Split”
). When extreme market
fluctuations decrease the value of a Token, a Reverse Token
Split may be initiated to boost the Token’s liquidity and price.
Wealthmark will announce the arrangements for Reverse Token
through the Platform prior to the effective time. Further
information on Reverse Token Splits can be found here: What
Is Reverse Token Split | Wealthmark Support
information on BLVT more generally can be found here: Wealthmark
Leveraged Tokens | BLVTs
BLVT through the Platform
In order to
subscribe for, redeem and/or trade in BLVT through the Platform,
you must have:
(a) set up a
successfully passed a user knowledge assessment to confirm your
understanding of the risks and features of Leveraged Tokens as
complex cryptocurrency instruments; and
understood and accepted the Wealthmark Leveraged
Risk Disclosure Statement
(the “BLVT Risk
) and the terms of this Agreement.
A list of all
Tokens available for subscription/redemption through the
Platform can be found on the following webpage: Wealthmark
Leveraged Tokens | BLVTs
. Each Token references a
specific Underlying. You may choose to take positions in “UP”
Tokens and/or “Down” Tokens. “UP” Tokens follow the price
movements in the Underlying and allow for you to realize between
1.25x-4x leveraged gains when the price of the Underlying rises,
whereas “DOWN” Tokens take an inverse position to the Underlying
and allow for you to realize between 1.25x-4x leveraged gains
when the price of the Underlying declines. Each BLVT Account
associated with an “UP” Token will take a long position in
USD(S)-M Futures Contracts referencing the Underlying whereas
each BLVT Account associated with a “DOWN” Token will take a
short position in USD(S)-M Futures Contracts referencing the
Underlying. For example, a BTCUP Token will reference a Basket
of long positions in BTCUSDT USD(S)-M Futures Contracts whereas
an ETHDOWN Token will reference a Basket of short positions in
ETHUSDT USD(S)-M Futures Contracts.
request to subscribe for or redeem Tokens issued with respect to
a BLVT directly with Wealthmark via the Platform at the current
Token Price, plus any applicable BLVT Fees, by clicking
“Subscribe” or “Redeem” against the relevant Token through the
following webpage: Wealthmark
Leveraged Tokens | BLVTs
. Wealthmark will periodically
adjust the Basket related to a BLVT to account for any
subscriptions or redemptions by buying additional USD(S)-M
Futures Contracts for inclusion in the Basket or selling
USD(S)-M Futures Contracts included within the Basket, as
required. Further information on how to subscribe for and redeem
BLVT can be found here: How to Subscribe or
Redeem Wealthmark Leveraged Tokens.
subscription and redemption fee for BLVT is 0.1% of the notional
value of the Token (calculated and payable in USDT) and will be
automatically deducted from (or credited to) your Account at the
time of subscription/redemption. Wealthmark may impose a daily
limit on subscriptions and/or redemptions to a BLVT
). You may subscribe or redeem for
each BLVT up to the applicable BLVT Limit at any time except
during a Rebalancing. Wealthmark may vary the BLVT Limit from
to time in its discretion depending on prevailing market
conditions. Please refer to the Trading
for information on the current BLVT Limits.
reserves the right at any time to suspend the subscription
and/or redemption of BLVT depending on prevailing market
conditions. Any such suspension may continue for so long as
Wealthmark determines necessary in its sole discretion. In such
circumstance, Users may continue to trade BLVT in the secondary
market. Without prejudice to the foregoing, Wealthmark may
to delist any Token available through the Platform and/or may
discontinue providing any of the services referred to hereunder,
in each case at any time in its sole and absolute discretion,
without giving any reason or any notice to you thereof.
trade BLVT on the secondary market, either with other users of
the Platform or with Wealthmark as counterparty, by clicking
“Trade” against the relevant Token through the following
Leveraged Tokens | BLVT
. Wealthmark supports the
of BLVT and may step in as a buyer or seller when needed in
order to maintain the secondary market price of BLVT within a
certain range of the current Token Price. Information on how to
trade BLVT in the spot market can be found here: How to Get Started With
Wealthmark Leveraged Tokens
charges certain fees with respect to the subscription,
redemption and trading of BLVT through the Platform
). Information with respect to the
BLVT Fees can be found here: Leveraged Tokens Fees |
. Wealthmark reserves the right to update the
Fees in its discretion from time to time by posting the updated
fees to the Platform.
reserves the right to update the information contained in the
Trading Rules, the Platform and the various webpages referred to
in this Agreement from time to time at its discretion. It is
your responsibility to familiarise yourself with the content of
such materials from time to time.
transacting in BLVT
transacting in BLVT through the Platform, you should take steps
to understand the nature of this complex product and the risks
involved as set out in the BLVT Risk
. By transacting in BLVT on the Platform, you
acknowledge and agree that you have sufficient investment
knowledge, financial expertise, and experience and the capacity
to take on the increased risks arising from Leveraged Tokens
trading. You further agree to assume all the risks arising from
conducting Leveraged Tokens trading on your own account. If you
are uncomfortable with the level of risks described in BLVT Risk
, you should not transact in BLVT.
in BLVT through the Platform, you authorise Wealthmark to
automatically: (i) deduct from your Wealthmark Account any
owed from you to Wealthmark, and/or (ii) credit to your Account
amount owed from Wealthmark to you, in each case in connection
the subscription, redemption and/or trading of BLVT.
in BLVT through the Platform and without prejudice to any other
rights or remedies granted to Wealthmark and the Wealthmark
further authorise Wealthmark and the Wealthmark Affiliates at
to take such measures as they deem in their sole discretion to
be required for the purposes of mitigating potential losses to
you, other clients of Wealthmark and the Platform, which
may include (but shall not be limited to) suspension of
subscriptions, redemptions and/or trading of BLVT through the
reserves the right to alter, revise, modify, and/or amend this
Agreement at any time in its discretion. Any such amendments
will take effect immediately upon being published on the
Platform. It is your responsibility to regularly check our
website to confirm the latest version of this Agreement. Your
continued access and use of the Platform for the purposes of
trading in BLVT following any amendments to this Agreement shall
indicate your acceptance of such amendments. If you do not agree
to any such amendments, you should cease transacting in BLVT
through the Platform.