Binance Dual Investment Terms
Last Updated: 2 September 2024
A. Acceptance of these Terms
By Subscribing to Dual Investment Services, you acknowledge and agree that you will be bound by and will comply with these dual investment service terms (“Dual Investment Terms”), as updated and amended from time to time. By accessing and/or using the Dual Investment Services, you agree that you have read and understood these Dual Investment Terms, together with any additional documents or terms referred to in these Dual Investment Terms. If you do not understand and accept these Dual Investment Terms in their entirety, you should not use the Dual Investment Services.
B. Scope of these Terms and Changes
These terms specifically govern your access to and use of the Digital Asset “Dual Investment” service and any ancillary services made available by Binance (“Dual Investment Services”) in accordance with these Dual Investment Terms.
These Dual Investment Terms are supplemental to and shall be read together with the Binance Terms of Use available here (“Terms of Use”) and the provisions set out in the Terms of Use shall continue to apply. All terms and clauses contained in the Terms of Use (except to the extent expressly modified herein) are incorporated by reference and have the same force and effect as if set out in their entirety in these Dual Investment Terms. These Dual Investment Terms constitute Product Terms. References in the Terms of Use to the Binance Services shall include references to the Dual Investment Services contemplated hereunder. In the event of any conflict or inconsistency between these Dual Investment Terms and the Terms of Use, these Dual Investment Terms shall prevail with respect to the services contemplated hereunder, unless expressly stated otherwise.
Binance may make changes to these Dual Investment Terms (or any terms or information incorporated by reference) at any time in accordance with the Terms of Use.
C. Disclosure and Consent
By Subscribing to a Dual Investment, you are agreeing to buy or sell a specified Digital Asset on the Settlement Date at the Target Price that you have selected. Your obligation to buy or sell the specified Digital Asset under the Dual Investment is subject to and conditional upon the Target Price being Reached. If the Target Price is not Reached as at the Settlement Date, you will have no obligation to buy or sell the specified Digital Assets. In other words, if the Settlement Price is higher than the Target Price in the case of a Buy Low Dual Investment or is lower than the Target Price in the case of a Sell High Dual Investment, you will have no obligation to buy or sell the specified Digital Assets on the Settlement Date.
Digital Assets used to Subscribe for a Dual Investment (“Subscribed DI Assets”) and Digital Assets comprising the DI Rewards will not be segregated from the Digital Assets belonging to other users. Subscribed DI Assets and DI Rewards may be commingled in hot wallets and cold wallets with Digital Assets belonging to Binance Group Entities and clients of Binance Group Entities globally.
You will earn DI Rewards on your Subscribed DI Assets for the duration of the Subscription Period. Your Subscribed DI Assets and all DI Rewards will be credited to your Binance Account either in the Deposit Currency or the Alternative Currency (as the case may be) on the Settlement Date in accordance with these Dual Investment Terms and as explained below.
Please refer to the risk factor statement here for a non-exhaustive summary overview of the risks that may result from Subscribing your Digital Assets to a Dual Investment.
No Binance Group Entity makes any representation or warranty that (a) Dual Investment is appropriate for any user or in any location, or (b) the transactions and services described in these Dual Investment Terms are (and/or will continue to be) available or appropriate for any user or in any location. You are strongly encouraged to carefully review these Dual Investment Terms and seek independent professional advice as to whether Dual Investment Services are appropriate for you having regard to your personal circumstances and objectives, financial position and risk tolerance.
By accepting these Dual Investment Terms, you hereby expressly, unconditionally and irrevocably; (a) confirm that you understand, accept and assume full responsibility for participating in Dual Investment together with any and all associated risks with your Subscription to a Dual Investment, including without limitation the risks described in the risk factor statement, and (b) acknowledge that you have carefully assessed and determined that the Dual Investment Services are appropriate for you.
D. How to participate in Dual Investment
To Subscribe your Digital Assets to a Dual Investment, you must accept and confirm the following on the Platform:
a. the Target Price;
b. the Alternative Currency;
c. the Deposit Currency;
d. the amount of Digital Assets denominated in the Deposit Currency that you are Subscribing to the Dual Investment;
e. whether the Dual Investment is a (i) Buy Low Dual Investment, or (ii) Sell High Dual Investment;
f. the Subscription Date;
g. the Subscription Period;
h. the Settlement Date;
i. the DI Rewards; and
j. whether Auto-Compound will apply to your Subscription.
Subject to you meeting certain eligibility criteria, as determined by Binance at its discretion, you may request a quote for a Dual Investment Subscription by providing the details set out in clause 11 (“RFQ”). Following submission of your RFQ, you will receive a quote, setting out the details of a Dual Investment Subscription that may be made available to you (“Quoted Subscription”). The terms of any Quoted Subscription may refresh periodically, and you are solely responsible for ensuring that the terms of the Quoted Subscription are commercially acceptable to you. The terms of a Quoted Subscription will be available only within the specified time period. After the specified time period ends, there is no guarantee or assurance that you will be able to proceed with a Dual Investment Subscription on the same or similar terms as the Quoted Subscription. Binance will not be responsible in any way for any loss of opportunity or otherwise that may arise directly or indirectly from changes to the availability or the terms of the Quoted Subscription (including the price, APR, and/or DI Rewards), including as a result of any delay on your part in proceeding with a Quoted Subscription. Notwithstanding any prior action or anything to the contrary, Binance reserves full discretion and the right to final confirmation of any Dual Investment Subscription. If you attempt to proceed with a Quoted Subscription and we reject your application, you may generate another Quoted Subscription or submit a new RFQ.
After you have Subscribed to a Dual Investment, you will not be permitted to withdraw or otherwise deal with your Subscribed DI Assets or any DI Rewards until the Settlement Date.
Digital Assets that you agree to Subscribe to a Dual Investment will be treated as received when you accept and agree to the Subscription, provided that Binance reserves the right, at any time time and from time to time in its sole discretion and without prior notice, to:
a. specify a minimum or maximum amount of Digital Assets required to Subscribe to, and/or Auto-Compound, a Dual Investment; or
b. specify, introduce, alter or revoke Subscription Limits that may apply from time to time.
E. DI Rewards and Settlement Date
The DI Rewards will be calculated based on the applicable APR communicated on the Platform and will begin to accrue in respect of Subscribed DI Assets on (i) the day your Digital Assets are Subscribed to a Dual Investment or (ii) if you have instructed us to Auto-Compound your Dual Investment, the date on which your Subscribed DI Assets for a Current Transaction are re-Subscribed to the Future Transaction (each a “Subscription Date”).
By Subscribing to a Dual Investment, you agree that on the Settlement Date:
a. if the Target Price is Reached:
i. your Subscribed DI Assets will be automatically exchanged for Digital Assets in the Alternative Currency at the Target Price; and
ii. all DI Rewards that have been accrued to you will be automatically exchanged for Digital Assets in the Alternative Currency at the Target Price and credited to your Binance Account; or
b. if the Target Price is not Reached:
i. you will retain the Subscribed DI Assets, in the Deposit Currency; and
ii. all DI Rewards that have been accrued to you will be credited to your Binance Account in the Deposit Currency.
Your Subscribed DI Assets and the accrued DI Rewards will be credited to your Binance Account in the form of the Deposit Currency (if the Target Price is not Reached) or the Alternative Currency (if the Target Price is Reached) no later than 6 hours after the Settlement Date, subject to any Auto-Compound instruction that you have given to Binance.
F. Examples for Dual Investment Sell High and Buy Low
Your Subscribed DI Assets and the accrued DI Rewards (together, the “DI Assets”) to be credited to your Binance Account on the Settlement Date will be calculated as follows:
a. For Sell High Dual Investment if the Target Price is Reached:
( Subscribed DI Assets * Target Price ) * [ 1 + ( APR% * Subscription Period / 365 ) ]
b. For Buy Low Dual Investment if the Target Price is Reached:
( Subscribed DI Assets / Target Price ) * [ 1 + ( APR% * Subscription Period / 365 ) ]
c. For Dual Investment if the Target Price is not Reached:
DI Assets * [ 1 + ( APR% * Subscription Period / 365 ) ]
These examples are intended to illustrate how Dual Investment operates. They are not intended to represent in any way the performance or price volatility or stability of any particular Digital Assets or the Digital Asset markets in general. Some of the Digital Assets used in the examples are fictional.
G. Auto-Compound
If Auto-Compound is selected, the Current Transaction will close on the Settlement Date, and the Subscribed DI Assets together with the DI Rewards of the Current Transaction will be automatically Subscribed, on the Settlement Date of the Current Transaction, to a new Dual Investment transaction (“Future Transaction”). If Auto-Compound is not selected, the Current Transaction will close on the Settlement Date and the Subscribed DI Assets together with the DI Rewards will be credited to your Binance Account as described in section E above.
For the avoidance of doubt, the APR of Future Transactions may differ from the APR of Current Transactions. You understand and agree that the APR for Future Transactions will depend on prevailing market conditions and is provided by Binance as an estimate only. No such estimate shall be construed as a promise, guarantee, or warranty by Binance.
The availability of the Auto-Compound feature is subject to the Subscription Limits.
Any election to enable or disable Auto-Compound can be changed up to 30 minutes before the Settlement Date.
Two types of Auto-Compound are available, as described below.
a. Basic Auto-Compound:
i. for a Buy Low Dual Investment, the Target Price for the Future Transaction will be set at an amount equal to the Spot Price on the Settlement Date minus the Distance;
ii. for a Sell High Dual Investment, the Target Price for the Future Transaction will be set at an amount equal to the Spot Price on the Settlement Date plus the Distance; and
iii. the Subscribed DI Assets will continue to be re-subscribed to new Future Transactions until the earlier of (A) the Target Price being Reached on the Settlement Date for the relevant Future Transaction and (B) you instruct Binance, at least 30 minutes before the Settlement Date, to disable “Auto-Compound”.
b. Advanced Auto-Compound:
i. for a Buy Low Dual Investment, the Target Price for the Future Transaction will be set at an amount equal to the Spot Price on the Settlement Date minus the Distance;
ii. for a Sell High Dual Investment, the Target Price for the Future Transaction will be set at an amount equal to the Spot Price on the Settlement Date plus the Distance;
iii. if the Target Price is not reached on the Settlement Date for a Buy Low Dual Investment or a Sell High Dual Investment, the Subscribed DI Assets will continue to be re-subscribed to new Future Transactions unless you instruct us, at least 30 minutes before to the Settlement Date, to disable “Auto-Compound” or switch to “Basic Auto-Compound”;
iv. if your Buy Low Dual Investment Target Price is Reached, the Subscribed DI Assets and the DI Rewards will be converted into the Alternative Currency and then subscribed to a new Future Transaction which will be a Sell High Dual Investment. The Target Price for the Sell High Dual Investment Future Transaction will be set at an amount equal to the Spot Price on the Settlement Date plus the Distance;
v. if your Sell High Dual Investment Target Price is Reached, the Subscribed DI Assets and the DI Rewards will be converted into the Alternative Currency and then subscribed to a new Future Transaction which will be a Buy Low Dual Investment. The Target Price for the Buy Low Dual Investment Future Transaction will be set at an amount equal to the Spot Price on the Settlement Date minus the Distance; and
vi. you may have the opportunity to automatically elect to repeat steps (iv) and (v), as applicable.
Binance may in its discretion change the Distance from time to time. Changes to the Distance will be displayed on the Platform at least 5 calendar days before the changes take effect and will only apply to Future Transactions.
H. Changing Your Auto-Compound Instructions
You may amend your Auto-Compound instructions of your Current Transaction at any time up to 30 minutes before the Settlement Date. You may:
a. enable or disable Auto-Compound, using the toggle button on the Binance website; and
b. change between Basic Auto-Compound and Advanced Auto-Compound.
You acknowledge and agree that it is your sole responsibility to be aware of the Settlement Date for a Current Transaction and the Settlement Date for any and all Future Transactions.
You acknowledge and agree that Binance may, at its sole and absolute discretion and without prior notice or any liability to you, modify the terms or application of the Auto-Compound feature to a Current Transaction or Future Transaction, or terminate the Auto-Compound feature, despite any instruction you may have provided to Binance.
I. General
Where any discrepancy arises between the translated versions of these Dual Investment Terms and the original English version of these Dual Investment Terms, the English version shall prevail.
You hereby appoint and authorize Binance as your agent to transact on your behalf in respect of Digital Assets that are in your Binance Account and which you have designated as available for the Dual Investment Services when you Subscribe to a Dual Investment or access the Dual Investment function on the Platform, with counterparties to execute the applicable buy or sell order at the Target Price for the relevant Dual Investment transaction in accordance with these Dual Investment Terms. Binance will have power and authority to do or cause to be done all acts and things that it determines to be desirable, necessary, ancillary or appropriate to implement and administer your authorization to transact and deal with the Digital Assets through the Dual Investment Services. You acknowledge and agree that Binance is acting as a fully disclosed agent and not as principal when transacting in respect of your Digital Assets through the Dual Investment Services.
Notwithstanding any other provision of these Dual Investment Terms, Binance reserves the right to terminate any Dual Investment Subscription on or before the Settlement Date of the Dual Investment Subscription if Binance determines, in its good faith discretion, that termination of the Dual Investment Subscription is appropriate or warranted due to exceptional market conditions or other events that have resulted in significant dislocation of the digital asset market generally or the market for Digital Assets in the Deposit Currency or Alternative Currency specifically.
J. Definitions
Advanced Auto-Compound means the Auto-Compound feature as described in clause 24(b).
Alternative Currency means the type of Digital Asset (e.g. Bitcoin) that you have agreed to exchange your Subscribed DI Assets and DI Rewards for, if the Target Price for your Dual Investment is Reached.
APR means the annual percentage rate at which DI Rewards are earned by you in respect of your Subscribed DI Assets, as indicated and agreed at the time of your Subscription for each Dual Investment.
Auto-Compound means the automatic Subscription of Subscribed DI Assets and any accrued DI Rewards from a Current Transaction into a new Dual Investment transaction on the Settlement Date of the Current Transaction, using the next available Settlement Date as the applicable Settlement Date.
Basic Auto-Compound means the Auto-Compound feature as described in clause 24(a).
Buy Low Dual Investment means the Dual Investment as described in clause 18.
Current Transaction means a Dual Investment entered into by you, and existing at the time you elect to enable the Auto Compound feature in accordance with these Dual Investment Terms.
Deposit Currency means the type of Digital Asset (e.g. Bitcoin) you deposit as Subscribed DI Assets when Subscribing to a Dual Investment.
DI Assets has the meaning provided in clause 18.
DI Rewards means the amount, calculated based on the applicable APR, that Binance agrees to pay you, either in the Deposit Currency, or an equivalent amount in the Alternative Currency converted at the Target Price, on the Settlement Date in respect of your Subscribed DI Assets.
Distance means the percentage difference applied to the Spot Price on the Settlement Date of a Current Transaction, for the purpose of determining the Target Price for the immediately following Future Transaction. The actual percentage will be determined by Binance in its discretion, having regard to the Target Price guidance shown in the Plan Overview at the time of Subscription. The Distance will be applied (i) as a premium to the Spot Price to determine the Target Price for a Sell High Dual Investment and (ii) as a discount to the Spot Price to determine the Target Price for a Buy Low Dual Investment.
Dual Investment means a Buy Low Dual Investment or Sell High Dual Investment transaction entered into by you in accordance with these Dual Investment Terms including, without limitation Future Transactions.
Dual Investment Services has the meaning provided in clause 2.
Dual Investment Terms has the meaning provided in clause 1.
Future Transaction has the meaning provided in clause 20.
Quoted Subscription has the meaning provided in clause 12.
Reached means, in relation to a:
a. Buy Low Dual Investment, that the Settlement Price is equal to or lower than the Target Price at the Settlement Date; and
b. Sell High Dual Investment, that the Settlement Price is equal to or greater than the Target Price at the Settlement Date.
RFQ has the meaning provided in clause 12.
Sell High Dual Investment means the Dual Investment as described in clause 18.
Settlement Date means the date on which the Dual Investments are settled, and the DI Assets (either in the Deposit Currency or Alternative Currency depending on whether the Target Price is Reached) are either (a) re-Subscribed to a Future Transaction if Auto-Compound is enabled or credited to your Binance Account, which occurs every Tuesday and Friday at 08:00 UTC.
Settlement Price means the time-weighted average price of a Digital Asset on the Platform or, if not available, a cryptocurrency data aggregator (such as CoinMarketCap.com or any similar data aggregator on which the relevant Digital Asset is then listed) in the 30 minutes before the Settlement Date, as determined by Binance in its good faith discretion.
Spot Price means, on any date, the fair market price of a Digital Asset on the Platform or, if not available, a cryptocurrency data aggregator (such as CoinMarketCap.com or any similar data aggregator on which the relevant Digital Asset is then listed) at the relevant time, as determined by Binance in its good faith discretion.
Subscribe means using Digital Assets for the purposes of entering into a Dual Investment, and Subscribing and Subscription shall be construed accordingly.
Subscribed DI Assets means the Digital Assets you deposit with Binance when entering into a Dual Investment, denominated either in the Deposit Currency (prior to the Settlement Date or if the Target Price has not been Reached) or the Alternative Currency (if the Target Price has been Reached as at the Settlement Date).
Subscription Date has the meaning provided in clause 15.
Subscriptions Limits means the minimum and maximum amounts of Digital Assets that you may use to Subscribe for each Dual Investment or the quantity of any other matter that we may determine from time to time and at our sole discretion.
Subscription Period means the number of days in which you accrue DI Rewards in respect of a Dual Investment in accordance with these Dual Investment Terms, as indicated and agreed at the time of your Subscription for each Dual Investment.
Target Price means the price at which you have agreed to exchange your Subscribed DI Assets and all accrued DI Rewards in the Deposit Currency for the Alternative Currency.
