# Terms of Use: Funded Subaccounts

**PLEASE READ CAREFULLY BEFORE USING FUNDED SUBACCOUNTS.**

**WE ARE NOT REGISTERED WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION OR COMMODITY FUTURES TRADING COMMISSION IN ANY CAPACITY. THE SERVICES WERE NOT DEVELOPED FOR, AND ARE NOT AVAILABLE TO PERSONS OR ENTITIES WHO RESIDE IN, ARE LOCATED IN, ARE INCORPORATED IN, OR HAVE A REGISTERED OFFICE OR PRINCIPAL PLACE OF BUSINESS IN THE UNITED STATES OF AMERICA.**

**THE SERVICES ARE NOT FOR UK RETAIL.**

**A FUNDED SUBACCOUNT IS A MARGIN-BASED TRADING SUBACCOUNT WITH A PRE-CONFIGURED LEVERAGE RATIO. THE NOTIONAL BALANCE DISPLAYED IN THE INTERFACE REPRESENTS THE MAXIMUM POSITION VALUE AVAILABLE TO YOU AT THE PRE-CONFIGURED LEVERAGE RATIO AND DOES NOT REPRESENT FUNDS OWNED BY, ALLOCATED TO, OR HELD ON BEHALF OF YOU BY EVEDEX OR ANY THIRD PARTY. EVEDEX DOES NOT PROVIDE, LEND, OR OTHERWISE MAKE AVAILABLE ANY OF ITS OWN CAPITAL TO YOU IN CONNECTION WITH ANY FUNDED SUBACCOUNT.**

**YOU MAY LOSE ALL OF YOUR COLLATERAL DEPOSITED INTO A FUNDED SUBACCOUNT. TRADING IN PERPETUAL FUTURES WITH LEVERAGE INVOLVES A HIGH DEGREE OF RISK AND IS NOT SUITABLE FOR ALL USERS. YOU SHOULD CAREFULLY CONSIDER WHETHER TRADING IS APPROPRIATE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION.**

These Terms of Use: Funded Subaccounts ("**Funded Subaccount Terms**") supplement and are incorporated into the General Terms of Use and the Terms of Use: Interface (together, the "**General Terms**"). In the event of any conflict between these Funded Subaccount Terms and the General Terms, these Funded Subaccount Terms shall prevail with respect to funded subaccounts only. Capitalised terms used but not defined herein shall have the meanings given to them in the General Terms.

## 1. Definitions

1.1. "**Funded Subaccount**" means a derivatives trading subaccount linked to your Smart Account, created through the Interface, which displays a Notional Balance calculated by applying a Pre-Configured Leverage Ratio to your Collateral.

1.2. "**Smart Account**" means your primary trading account on the Protocol.

1.3. "**Collateral**" means the digital assets (denominated in USDT) that you transfer from your Smart Account to your Funded Subaccount.

1.4. "**Pre-Configured Leverage Ratio**" means the fixed leverage multiplier applied by the Protocol to Your Collateral to determine the Notional Balance, as displayed in the Interface at the time of Funded Subaccount creation.

1.5. "**Notional Balance**" means the value displayed in the Interface, calculated as Your Collateral multiplied by the Pre-Configured Leverage Ratio. The Notional Balance is a computational representation of your leveraged trading capacity and does not represent actual funds deposited, held, or allocated to or for your benefit.

1.6. "**Maximum Trading Leverage**" means the maximum additional leverage that may be applied to positions opened within the Funded Subaccount, as specified in the Interface.

1.7. "**Realised Profit**" means any positive balance in excess of the initial Notional Balance, arising from closed positions, net of all applicable trading fees, funding rates, and commissions.

1.8. "**Liquidation Event**" means the involuntary closure of one or more positions within the Funded Subaccount by the Protocol's automated mechanisms, including ADL mechanisms, when margin requirements are no longer met.

## 2. Funded Subaccounts

2.1. A Funded Subaccount is a feature of the Protocol that creates a subaccount with a Pre-Configured Leverage Ratio applied to your Collateral. The Notional Balance is a display representation of your leveraged margin capacity. For the avoidance of doubt:

2.1.1. EVEDEX does not provide, lend, stake, allocate, or otherwise make available any capital, funds, or digital assets to you in connection with any Funded Subaccount;

2.1.2. no loan, credit facility, deposit, investment, fiduciary, agency, partnership, joint venture, or trust relationship is created between you and EVEDEX or any third party in connection with any Funded Subaccount;

2.1.3. the Notional Balance is not, and shall not be construed as, a deposit, a credit, a loan, an allocation of EVEDEX's capital, or an entitlement to any funds other than your own Collateral (subject to trading gains and losses);

2.1.4. the term "Funded" is used for convenience only and refers to the pre-configuration of leverage parameters; it does not imply that any party other than you has funded, will fund, or is obligated to fund any part of the Funded Subaccount.

2.2. The Funded Subaccount functionality is provided by the Protocol's smart contracts. The Interface provides access to this Protocol feature. You acknowledge and agree that EVEDEX provides the Interface and does not itself execute, settle, broker, or intermediate trades on the Funded Subaccount, which occur entirely through the Protocol's automated mechanisms on public distributed blockchains.

2.3. For the avoidance of doubt, the Notional Balance is a computational display value. You may only withdraw from the Protocol actual USDT balances resulting from your Collateral and trading activity. You cannot withdraw, redeem, or otherwise claim the Notional Balance as if it were deposited funds.

2.4. You hereby warrant and represent that you understand that if your Collateral is fully depleted through trading losses, Liquidation Events, funding rate charges, or fees, the Funded Subaccount balance shall be zero and you shall have no further claim or entitlement. No refund, credit, compensation, or reimbursement of any kind shall be provided.

## 3. Eligibility

3.1. To open or use a Funded Subaccount, you must:

3.1.1. satisfy all eligibility requirements set forth in the General Terms, including Section 2 (Eligibility) thereof;

3.1.2. maintain a Smart Account in good standing;

3.1.3. not be a resident, citizen, national, or entity incorporated or organised in the United States of America or any of its territories or possessions;

3.1.4. not be a person to whom the provision of the Funded Subaccount would be unlawful in your jurisdiction of residence or citizenship;

3.1.5. have read and understood the Risk Disclosure.

3.2. We may, in our sole discretion, introduce additional eligibility requirements, including but not limited to identity verification, residency declarations, or trading experience assessments, at any time without prior notice.

3.3. You may open multiple Funded Subaccounts, subject to any per-user limits that may be imposed by the Protocol from time to time.

## 4. Prohibited Activities Specific to Funded Subaccounts

4.1. In addition to the prohibited activities set forth in Section 5 of the General Terms, You agree not to engage in, or attempt to engage in, any of the following:

4.1.1. *Arbitrage exploitation.* Operating a Funded Subaccount in coordination with positions on your Smart Account, another Funded Subaccount, another user's account, or any account on an external platform, with the intent of exploiting the asymmetric loss structure, leverage parameters, or withdrawal mechanics of the Funded Subaccount to create risk-free or disproportionately favourable positions (including, without limitation, taking offsetting long and short positions across accounts to lock in gains while externalising losses);

4.1.2. *Sybil and multi-account abuse.* Using multiple wallets, accounts, or identities to circumvent any per-user limits on Funded Subaccounts, or coordinating with other users to achieve an economic effect equivalent to such circumvention;

4.1.3. *Leverage circumvention.* Structuring positions, including through multiple correlated instruments, in a manner designed to exceed the Maximum Trading Leverage;

4.1.4. *Third-party access.* Sharing, transferring, licensing, or otherwise providing access to a Funded Subaccount to any third party, whether for consideration or otherwise;

4.1.5. *Automated exploitation.* Using bots, scripts, or other automated tools specifically to exploit the Funded Subaccount's leverage, liquidation, withdrawal, or fee mechanics in ways that would not constitute legitimate trading activity.

4.1.6. *Other bad faith activity.* Any other activity with the aim to exploit the Protocol’s and/or Funded Subaccount's functionality, leverage, liquidation, withdrawal, or fee mechanics in ways that would not constitute legitimate trading activity.

4.2. Remedies. If we reasonably determine that you have engaged in any conduct prohibited under this Section 4, we reserve the right, in addition to the remedies set forth in the General Terms, to:

4.2.1. immediately suspend and/or terminate the access to the Interface and access to the Funded Subaccount;

4.2.2. suspend or terminate your Smart Account and all associated Funded Subaccounts;

4.2.3. report the activity to relevant authorities or blockchain analytics providers.

## 5. Surveillance and Risk Management

5.1. You acknowledge that the Protocol employs automated surveillance systems to monitor trading activity on Funded Subaccounts. This surveillance may include analysis of trading patterns, position correlations across accounts, and coordination detection.

5.2. You acknowledge that the parameters of the Funded Subaccount feature, including but not limited to the Pre-Configured Leverage Ratio, Maximum Trading Leverage, available instruments, per-user limits, withdrawal thresholds, and fee structure may be unilaterally modified. Any such modifications shall be communicated through the Interface or Site and shall take effect as specified.

## 6. Liquidation and Auto-Deleveraging

6.1. Funded Subaccounts are subject to the same liquidation and auto-deleveraging (ADL) mechanisms as standard positions on the Protocol, as described in the General Terms and the Terms of Use: Interface.

6.2. Given the Effective Leverage inherent in Funded Subaccounts, Liquidation Events may occur more rapidly and with less price movement than on a standard account. You acknowledge and accept this risk.

6.3. All losses arising from Liquidation Events or ADL on a Funded Subaccount are borne solely by you.

## 7. Termination

7.1. By You. You may terminate a Funded Subaccount at any time by executing a full close-out of your Funded Subaccount.

7.2. By us. We may terminate a Funded Subaccount, with or without notice, in accordance with Section 8 of the General Terms or Section 4.2 of these Funded Subaccount Terms, or if we discontinue the Funded Subaccount feature.

7.3. Effect of termination by us without cause. If we terminate your Funded Subaccount or discontinue the feature without cause, we shall use reasonable endeavours to allow you to close open positions and withdraw any remaining balance to your Smart Account within a reasonable period.

7.4. Effect of termination for cause. If we terminate your Funded Subaccount for breach of these Funded Subaccount Terms, the General Terms, or applicable law, we may restrict access to your Funded Subaccount without any measures.

## 8. Tax

8.1. You are solely responsible for determining and complying with all tax obligations arising from your use of Funded Subaccounts, including but not limited to income tax, capital gains tax, value-added tax, and any reporting obligations applicable in your jurisdiction. EVEDEX does not provide tax advice and shall not be liable for any tax consequences arising from Your use of the Funded Subaccounts.

## 9. Risk Disclosure

9.1. You confirm that you have read, understood, and accepted the Risk Disclosure, which is incorporated into these Funded Subaccount Terms by reference.

9.2. Without limiting the generality of the foregoing or any other risk disclosures in the General Terms, You acknowledge the specific risks associated with Funded Subaccounts, including but not limited to: amplified loss exposure; rapid liquidation in volatile markets; fee erosion relative to Collateral; funding rate risk; smart contract risk; and regulatory risk, each as further described in the Risk Disclosure.

## 10. Disclaimer; Limitation of Liability; Indemnification

10.1. The disclaimers, limitation of liability, and indemnification provisions set forth in Sections 11, 12, and 13 of the General Terms apply fully to the Funded Subaccount feature and these Funded Subaccount Terms.

10.2. Without limiting the foregoing, in no event shall EVEDEX's aggregate liability to you in connection with a Funded Subaccount exceed two hundred USD dollars ($200.00) or its equivalent in the local currency of the applicable jurisdiction.

10.3. You acknowledge and agree that the Funded Subaccount feature is provided "as is" and "as available" and that EVEDEX makes no warranty, representation, or guarantee regarding the availability, continuity, accuracy, or performance of the Funded Subaccount feature or the Protocol's leverage, liquidation, or settlement mechanisms.

## 11. Governing Law and Dispute Resolution

11.1. These Funded Subaccount Terms are governed by the laws of England, without regard to principles of conflict of laws, and all disputes shall be resolved in accordance with Section 14 of the General Terms.

## 12. Modifications

12.1. We reserve the right to modify these Funded Subaccount Terms at any time. Modifications shall be effective when posted on the Site. Your continued use of any Funded Subaccount after modifications are posted shall constitute your acceptance of the modified terms. If you do not agree with any modification, you must close all Funded Subaccounts and cease using the Funded Subaccount feature.

## 13. Severability

13.1. If any provision of these Funded Subaccount Terms is determined to be invalid or unenforceable, such provision shall be interpreted to accomplish its objectives to the greatest extent possible under applicable law, and the remaining provisions shall continue in full force and effect.

## 14. Entire Agreement

14.1. These Funded Subaccount Terms, together with the General Terms (including the Terms of Use: Interface, Privacy Policy, and any other documents incorporated therein by reference), constitute the entire agreement between You and EVEDEX with respect to Funded Subaccounts.


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