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Favor Exchange Markets is Favor Exchange’s set of limit order books that are accessed by clients through the Favor Exchange Max and Favor Exchange trading platforms. The following set of Trading Rules governs orders placed via these trading platforms.
1.1 Favor Exchange operates a central limit order book trading platform, and settles trades in a number of Digital Asset and Fiat Currency Trading Pairs. Each Trader’s Account will list which Order Books are available to the Trader.
1.21 To place an Order on an Order Book, a Trader must have an Available Balance of the relevant Asset in their Account which is sufficient to cover the total value of the Order plus any applicable fees.
1.22 When a Trader places an Order, that quantity of the relevant Asset becomes subject to a Hold.
1.23 A Trader can place an Order as either a Limit Order, a Market Order, or a Stop Order.
1.24 A Trader may cancel an open Maker Order or Stop Order at any time before it is Filled. No fees are charged for canceled Orders.
1.31 A Limit Order is an Order to buy or sell a specified quantity of an Asset at a specified price.
1.32 A Limit Order will only ever Fill at the specified price or a better price.
1.33 A Limit Order with ‘post-only’ selected will only be posted to the Order Book if it would not be posted at the same price as an existing Order on the Order Book. A Limit Order with ‘post-only’ selected will always be a Maker Order.
1.34 A Limit Order without ‘post-only’ selected will be immediately posted to the Order Book (subject to any Time in Force Instructions) and can result in a Maker Order or a Taker Order, or an Order that is partially a Maker Order and partially a Taker Order.
1.35 Limit Orders may be placed with one of the following Time in Force Instructions.
1.41 A Market Order is an Order to buy or sell a specified quantity of an Asset at the best available price of existing Orders on the Order Book.
1.42 There is no guarantee that a Market Order will Fill at the price specified. A Market Order may Fill at a number of different prices, based on the quantity of the Market Order and the quantities of the existing Orders on the Order Book at the time.
1.43 Depending on the volume and prices of Orders on the Order Book at the time when a Market Order is posted, the Market Order may Fill at a price less favorable than the most recent trade price, in some cases significantly so. This is commonly referred to as ‘slippage’.
1.44 A valid Market Order will be immediately posted to the Order Book. A Market Order is always a Taker Order.
1.5 Stop Orders
1.51 A Stop Order is an instruction to post an Order to buy or sell a specified quantity of an Asset but only if and when the last trade price on the Order Book equals or surpasses the Stop Price.
1.52 Once a Stop Order has been placed, it is considered ‘active’ until it executes by posting the relevant Order when the Stop Price is triggered.
1.53 A Stop Order is not posted to the Order Book and is not visible to other Traders, but any resulting Order is posted and visible. All Stop Orders are placed without ‘post-only’ enabled.
1.54 A Stop Order must be placed as a Stop Limit Order which posts a Limit Order when the Stop Price is triggered.
1.55 A Stop Limit Order is not guaranteed to Fill. The Web Interface will display a warning each time a Trader attempts to place a Stop Order.
1.56 Stop Orders may be placed with one of the following Time in Force Instructions.
The Web Interface will display a warning to Traders who attempt to place an Order which would completely or partially fill at a price which is more than 2% away from the last trade price (slippage warning).
1.61 (Taker Order) If an Order is posted to the Order Book at the same price as one or more existing Orders, it is a Taker Order which will result in an immediate Fill at that price, to the extent of the total quantity of those existing Orders.
1.62 (Maker Order) To the extent that an Order is posted to the Order Book at a different price to all existing Orders, it is a Maker Order which will remain open at that price on the Order Book until:
1.63 Market Orders and Limit Orders are subject to a 10% protection point. Market and Limit orders will fill at prices up to 10% from the mid-point price between the best bid and best offer on the Order Book at the time the order was placed. If a Market or Limit Order would fill against orders beyond the protection point, the Order will partially fill up to the 10% price level and the matching engine will cancel all remaining portions of the Order.
1.64 Order Minimums: All Market Orders, Limit Orders, and Stop Orders placed on Favor Exchange Markets are subject to the minimum order size requirements listed at Favor Exchange.com/markets.
1.65 Order Maximums: All Market Orders, Limit Orders without ‘post-only’ selected, and Stop Orders placed on Favor Exchange Markets are subject to the maximum order sizes listed at Favor Exchange.com/markets.
1.66 ‘Post-only’ Limit Orders do not have a maximum order size. The size can be in any increment of the base currency above the minimum order size requirements.
1.67 Updating Order Parameters: Favor Exchange Markets will periodically update these Order Minimums, Order Maximums, and total number of Orders allowed per Order Book to reflect the current state of our marketplace and the notional value of the assets. Favor Exchange.com/markets
1.71 Favor Exchange Markets matches Taker Orders with Open Maker Orders on each Order Book based on Price-Time Priority.
1.72 Price-Time Priority means that each time a Taker Order is posted: The Taker Order is matched with the earliest in time Maker Order at the best price on the Order Book; and To the extent that the Taker Order is not completely Filled by that Maker Order, it is matched with any subsequent Maker Orders at that price, in the sequence those Maker Orders were posted; and To the extent that the Taker Order is not completely Filled by one or more Maker Orders described above, it is matched with one or more Maker Orders at the next best price, in the sequence those Maker Orders were posted, and this process is repeated until the Taker Order is completely Filled.
1.73 All Traders on accessing Favor Exchange Markets are subject to the same Price-Time Priority.
1.74 Subject to Time in Force Instructions, an Order may be matched with a number of corresponding Orders at the same price.
1.75 Taker Orders are matched with the best available existing Maker Orders. This means that a Limit Order placed outside the market (i.e. a sell Order below the highest existing buy Order, or a buy Order above the lowest existing Sell Order) will be Filled by the best available existing Order rather than an existing Order with the same price as the Limit Order.
1.81 When a Maker Order is matched with a Taker Order, those Orders are Filled. An Order may be matched with and Filled by one or more Orders at the same price.
1.82 Favor Exchange Markets settles all Filled Orders immediately, by debiting and crediting the relevant balances of Assets in both Traders’ Accounts.
1.83 Subject to daily withdrawal limits a Trader may immediately withdraw all Assets in their Account.
1.91 Favor Exchange Max and Favor Exchange charge a Maker fee for each Maker Order and a Taker fee for each Taker Order that is posted to the Order Book. The fee is charged in the Quote Asset and is calculated as a percentage of the Order quantity.
1.92 A fee is charged by debiting the Trader’s Available Balance for the amount of the fee at the time that the Order is posted.
1.93 If an Order is posted to the Order Book partially as a Maker Order and partially as a Taker Order, a Maker fee applies to the portion posted as a Maker Order and a Taker fee applies to the portion posted as a Taker Order.
1.95 Volume-based fee discounts are available to all traders based on trades over the trailing 30 day period across all order books.
All Trades are Final
2.1 All Fills are final and will not be reversed unless:
2.12 Favor Exchange may cancel Open Orders in the following circumstances:
2.21 All Traders have equal access to the Favor Exchange APIs and Web Interfaces. Favor Exchange does not provide prioritized access to any Trader.
2.22 Favor Exchange Market Operations has the authority to take any action deemed appropriate to preserve market integrity. Such actions include, but
are not limited to, the halting of trading, modifying risk-mitigating parameters, restricting Trader access to Favor Exchange Max or Favor Exchange, restricting order types to post-only or limit only, canceling orders resting in the order book, or any other actions deemed to be in the best interest of the Exchange.
2.31 If technical reasons prevent or degrade Traders’ ability to place or cancel Orders, or prevent or degrade access to Favor Exchange APIs or the Web Interfaces or affect the operation of Favor Exchange Markets Order Books or matching engines, then Favor Exchange may, in its discretion, take one or more of the following actions in respect of one or more Order Books;
2.32 If access to Favor Exchange Max or Exchange through the Web Interface is unavailable for 5 minutes or longer, Favor Exchange will move Favor Exchange Max and Exchange to Cancel-Only Mode as soon as possible.
2.33 If Favor Exchange Max or Exchange is in Cancel-only Mode, it will be restored to fully operational only after access through the Web Interface becomes available for at least 5 minutes and Favor Exchange deems is it safe to restore Favor Exchange Max and Exchange to fully operational.
2.34 Favor Exchange will notify Traders of the move to or from Cancel-Only Mode via @Favor ExchangeMarkets on Twitter
2.41 Traders are not able to place an Order which would result in self-execution—i.e., where the same Trader would act as both the maker and taker for the trade.
2.42 If two Orders of the same quantity would result in self-execution, both Orders are canceled.
2.43 If two Orders of different quantities would result in self-execution, the smaller Order is canceled and the larger order is decremented by an amount equivalent to the smaller quantity. The remainder of the larger order remains Open.
2.51 Favor Exchange Markets does not use circuit breakers or automated trading halts based on predetermined price bands. As provided in Section
2.22 and 2.31, Favor Exchange Markets Market Operations may, in its discretion, halt trading.
2.61 Traders are prohibited from engaging in Market Manipulation.
2.62 Market Manipulation of any kind is strictly prohibited. Market Manipulation is defined as actions taken by any market participant or a person acting in concert with a participant which are intended to:
2.63 Market Manipulation specifically includes, without limitation: front-running, wash trading, spoofing, layering, churning, and quote stuffing.
3.1 All Traders have full and equal real-time access to Market Data. Market Data is made available through the Web Interface or the Favor Exchange Max or Exchange APIs.
3.12 Market Data comprises the following:
3.13 Market Data does not include the following:
3.21 Favor Exchange, Inc., which owns and operates Favor Exchange Max and Exchange, also trades its own corporate funds on Favor Exchange Max and Exchange.
3.22 Favor Exchange does not have any special priority and is subject to the same Price/Time/Priority and fee structure as all other Traders.
3.23 The Favor Exchange application which trades on Favor Exchange Markets only trades based on Market Data and does not have access to inside information. It does not engage in any front-running.
3.31 Favor Exchange policies prohibit all Favor Exchange employees from using inside, corporate or proprietary information to trade Digital Assets.
3.32 Favor Exchange Employees are required to trade Favor Exchange supported assets on Favor Exchange Maxducts (either Favor Exchange Consumer or Pro), subject to Favor Exchange’s employee trading policy and trade surveillance program.
4.1 From time to time, Favor Exchange Max or Exchange may suspend trading temporarily for maintenance or upgrades. Absent extenuating circumstances, Favor Exchange Max and Exchange will follow this process for closing and re-opening trading;
Step 1: Announce Scheduled Downtime
Step 2: Scheduled Downtime Begins
Step 3: Immediately after Scheduled Downtime is Completed
Step 4: At least 1 minutes after Step 3; or longer if necessary
Step 5: At least 10 minutes after Step 4; or longer if necessary
In these Favor Exchange Markets Trading Rules, the following words and phrases have the corresponding meanings.
Favor Exchange Prime provides clients with access to trade execution and automated trade routing services through the Favor Exchange Prime Trading Platform. The following Trading Rules govern the receipt, execution and settlement of orders placed via the Trading Platform. Capitalized terms used herein without definition shall have the meaning assigned to them in the Favor Exchange Prime Broker Agreement.
1. Accepted Order Types
1.1 The Trading Platform shall accept the following types of Orders to purchase or sell specified Digital Assets as specified below, provided that the Trading Platform may also accept other order types as Favor Exchange may make available from time to time.
1.11 Limit Order: A Limit Order is an Order to buy or sell a specified quantity of a Digital Asset at a specified price and will only fill at the specified price or a better price. Limit Orders may be placed with Time in Force Instructions, which may include:
1.12 Market Order: A Market Order is an Order to buy or sell a specified quantity of a Digital Asset at the best available all-in price, or such other pricing methodology as may be agreed with Favor Exchange from time to time. For the purposes of these Trading Rules, “all-in price” shall mean a price that is reflective of all transactional or other associated fees, costs, interest charges or expenses applicable to executing that Order. Due to changing market conditions, there is no guarantee that a Market Order will fill at a specified price or that the specified quantity will be fully executed. A Market Order may fill at a number of different prices. Depending on volume
and prices on the Connected Trading Venues at the time a Market Order is submitted, the Market Order may fill at a price less favorable than the most recently observed trade price, in some cases significantly so. A valid Market Order will be immediately routed from the Trading Platform to the Connected Trading Venues.
1.13 TWAP Orders: The Time Weighted Average Price Order (“TWAP Order”) seeks to complete the Order by splitting it into small pieces that will be independently traded at different time intervals across Connected Trading Venues using a range of execution strategies. A Trader can specify a TWAP Order’s: i. Buy/Sell direction; ii. Quantity; iii. Limit Price; iv. Start time; and v. Duration.
1.14 Stop Orders: Favor Exchange Prime may make Stop Orders available to clients.
2.1 Favor Exchange directs Orders to the Connected Trading Venues on an automated basis using Favor Exchange Prime’s trading algorithms. The trading logic incorporates a variety of factors relating to the Order and the Connected Trading Venues, which may include but will not be limited to:
2.2 Trading Controls: To help reduce the likelihood of human error, Favor Exchange Prime has implemented trading controls on Market Orders that apply to Order entry and Order execution. Specifically, Orders are subject to a protection point, to be determined in Favor Exchange’s sole discretion, and will fill at prices no more than 2% beyond the expected all-in price at the time of order placement.
3.1 Available funds: To submit and execute an Order, Client must have sufficient funds or credit in its Trading Balance to cover the total value of the
Order plus any applicable fees. After an Order is submitted, the associated funds become subject to hold until the Order is filled or any part of the remaining Order is cancelled.
3.2 Order Minimums: All Orders placed via the Trading Platform may be subject to minimum order size requirements specified by Favor Exchange.
3.3 Order Maximums: All Orders placed via the Trading Platform may be subject to maximum order sizes specified by Favor Exchange.
4.11 Client may submit buy or sell Orders through its account on the Trading Platform by specifying the Order type, quantity, asset type, and any other supported criteria required for a particular Order type.
4.21 Orders marked as complete or confirmed cannot be cancelled, reversed or modified.
4.3 Client Cancellation
4.31 A Trader may cancel an open Order at any time before it is completed, but we do not guarantee that Orders can be canceled once submitted to the Trading Platform.
4.32 No fees are charged for canceled portions of Orders.
4.4 Favor Exchange Prime Cancellations and Modifications
4.41 In its sole discretion, Favor Exchange may cancel Open Orders in the following circumstances and will attempt to promptly notify clients of such cancellation:
4.42 In its sole discretion, Favor Exchange may modify a client’s completed Order due to a remarking or repricing performed by the applicable Connected Trading Venue with respect to the relevant Order.
5.1 Favor Exchange Prime supports specified trading pairs that will be made available to the client when accessing its account on the Trading Platform.
6.1 Unless otherwise agreed, Favor Exchange Prime charges an all-in fee for completed Orders. A fee is charged by debiting the client’s account for the amount of the fee at the time that the Order is executed. Favor Exchange does not charge fees for unfilled Orders. Please review your Fee Schedule for further details.
6.2 Favor Exchange Prime’s fees charged to clients may not be a direct pass-through of Connected Trading Venues and/or other third-party fees and rebates. Costs passed on to clients may be greater than the costs paid by Favor Exchange Prime to the relevant Connected Trading Venue or third party.
7.1 Favor Exchange Prime provides the Favor Exchange Prime APIs and Trading Platform to clients on a non-preferential basis, subject to Favor Exchange Prime’s rules regarding Market Manipulation and subject to Favor Exchange Prime’s API Supplement. Favor Exchange Prime does not provide prioritized access to any Client. Favor Exchange Prime has the authority to take any action deemed appropriate to preserve market integrity. Such actions include, but are not limited to, the halting of trading, modifying risk-mitigating parameters, restricting Client access to Favor Exchange Prime, restricting order types to post-only or limit only, canceling resting orders, or any other actions deemed to be in the best interest of preserving market integrity on Favor Exchange Prime.
7.2 Favor Exchange generally acts in an agency capacity for purposes of Orders, but may also act in a principal capacity with respect to certain Orders. For example, in order to fill residual Order size such as when a portion of an Order may be below the minimum size accepted by the Connected Trading Venues, Favor Exchange Prime will fill the order from its inventory. Such residual portions of an Order will be filled at a fair market price and will be reflected in the Order Confirmation.
7.3 Favor Exchange, Inc., which owns and operates Favor Exchange Prime, also trades its own funds on Favor Exchange Prime for testing, operational and commercial purposes. Favor Exchange maintains procedures for avoiding and managing conflicts of interest when undertaking proprietary trading activities. Any Favor Exchange-owned account on the Trading Platform does not have any special priority, access to material non-public information with respect to the Trading Platform’s price quotes, does not engage in front-running ahead of clients and is subject to the same rules of access as any other client.
7.4 Favor Exchange policies prohibit all Favor Exchange employees from using inside, corporate or proprietary information to trade Digital Assets. Favor Exchange Employees are required to trade in accordance with Favor Exchange’s employee trading policy and under the supervision of the Favor Exchange trade surveillance program.
8.1 If Favor Exchange determines that a client’s account has been compromised, or if technical reasons prevent or degrade the client’s ability to submit or cancel Orders, or prevent or degrade access to Favor Exchange Prime APIs or the Trading Platform (including connecting to any Connected Trading Venue), then Favor Exchange Prime may, in its sole discretion, take one or more of the following actions:
8.2 If access to Favor Exchange Prime through the Trading Platform is unavailable, Favor Exchange may move Favor Exchange Prime to Cancel-Only Mode as soon as possible. If Favor Exchange Prime is in Cancel-only Mode, it will be restored to fully operational only after access through the Trading Platform becomes available and Favor Exchange deems it safe to restore Favor Exchange Prime to fully operational. Favor Exchange will notify clients of the move to or from Cancel-Only Mode via and https://www.fextrade.exchange and Favor Exchange.com/status .
8.3 Downtime: From time to time, Favor Exchange Prime may experience unscheduled downtime. Favor Exchange Prime may also suspend trading temporarily for scheduled maintenance or upgrades. Absent extenuating circumstances, Favor Exchange Prime will announce the commencement and completion of scheduled downtime via: status.prime.Favor Exchange.com.
8.4 To ensure a fair and orderly marketplace, Favor Exchange Prime may in its discretion cancel all open orders prior to reopening the Trading Platform.
9.1 Where available, Orders may be subject to self-trade prevention (“STP”). Where utilized, STP would help ensure that cancellation of two Orders from the same Client to avoid self-execution.
9.2 Where two Orders of different quantities would result in self-execution, the smaller Order is canceled, and the larger order is decremented by an
amount equivalent to the smaller quantity. The remainder of the larger order remains open and unfilled.
9.3 All Clients that operate algorithmic proprietary trading applications may be subject to STP. Such clients include any Client that trades for its own account and does not trade for end-customer accounts. Such clients may submit a request to opt-out or otherwise override the use of STP controls. Such requests will be granted at Favor Exchange’s sole discretion.
10.1 Favor Exchange Prime settles all filled Orders immediately upon receipt of confirmation from the Connected Trading Venue(s), by debiting and crediting the relevant balances of Digital Assets in Trader’s Account. Subject to applicable daily withdrawal limits a Trader may immediately request to withdraw all Digital Assets in their Account.
11.1 Favor Exchange Inc. does not use circuit breakers or automated trading halts based on predetermined price bands. Favor Exchange Prime may, in its sole discretion, halt trading on the Trading Platform. The Connected Trading Venues may apply circuit breakers, which could lead to disruptions of services provided via Favor Exchange Prime from time to time.
12.1 Traders are prohibited from directly or indirectly engaging in Market Manipulation on the Trading Platform, including any Market Manipulation that may harm a Connected Trading Venue. Market Manipulation is defined as actions taken by any market participant or a person acting in concert with a participant which are intended to:
12.2 Market Manipulation specifically includes, without limitation: front-running, wash trading, spoofing, layering, churning, and quote stuffing.