Pi42 - Trading Policy

This Trading Policy is applicable with effect from  [23rd February, 2024].

 

Pi42.com Platform (as defined hereafter) is owned, operated and managed by LIGHTNINGNODES TECHNOLOGIES PRIVATE LIMITED (CIN: U62099GJ2023PTC143842), having its registered office at 1302, Gala Empire, Drive-in-Road, Memnagar, Thaltej Road, Ahmedabad-380054, Gujarat (hereinafter referred to as “Pi42.com” or “Company” or “Us” or “We” or “Our”, which term shall mean and include our affiliates, group entities, related parties and service providers).

This Trading Policy is an integral part of the User Terms & Conditions. By signing up, accessing, using or continuing to browse through Pi42.com Platform or using our Services, whether as a guest or registered user, you agree that you have read, understood, and accepted each of the terms contained herein and agree to be bound by the same.

If you have objections to this Trading Policy, or any part thereof, and/or if you do not agree to be bound by these terms, or any part thereof, please do not access Pi42.com Platform and do not use our Services in any manner.

 

1 - INTRODUCTION

 

1 a) This Trading Policy governs the access to and use of Pi42.com Platform. This Trading Policy must be read in conjunction with the User Terms & Conditions.

 

1 b) We reserve the right to change, amend, remove, modify, suspend or discontinue this Trading Policy (in whole or in part). You shall regularly and periodically check this Trading Policy including before you make any transaction on Pi42.com Platform. We shall have no liability or responsibility whatsoever due to any such changes, additions, removals or modifications.


2 - DEFINITIONS

 

2 a) Unless the context requires otherwise, following terms shall have meanings ascribed to them as below.

 

2 b) “AML Regulations” means India’s Prevention of Money Laundering Act, 2002 and the rules, regulations, circulars and guidelines framed thereunder.

2 c) "Coin Wallet" or "Cryptocurrency Wallet" or “Digital Token Wallet” or “USDT Wallet” means an online VDA wallet accessible through Pi42.com Platform and owned and operated by a User for storage of their VDAs.  

2 d) “Cryptos” or “Cryptocurrencies” or “Digital Tokens” or “Digital Assets” or “Virtual Digital Assets” or “VDA” means any “virtual digital asset” as defined under the Indian Income Tax Act, 1961, as amended or superseded from time to time.

2 e) “Pi42 Account” means the registered account of the User on Pi42.com Platform.

 

2 f) “Pi42.com” means our electronic trading platform system which includes the aggregate of its computer devices, software, database, communication system and all programs and technical facilities associated therewith to enable the User to access Services, obtain Wallet information, receive notices from us and keep record of transactions, settlement obligations.

2 g) “Pi42.com Platform” collectively means and includes Pi42.com (as defined above), Pi42.com Android app, Pi42.com iOS app, Pi42.com web app, Pi42.com website https://pi42.com/, and other web assets on Pi42.com domain, together with the Pi42.com developer portal, public APIs and secure authentication for Users (all either existing or available in the future).

 

2 h) “Funds” or “Holdings” refers to both Digital Assets and/or INR, as the case maybe, held in the User’s Coin Wallet or INR Wallet.

 

2 i) “INR” means Indian Rupees.

 

2 j) “INR Wallet” means a virtually denoted ledger accessible through Pi42.com Platform and operated by a User, which ledger denotes the Users' INR Holdings and acts as a closed loop system that can only be used to trade with the Company.

2 k) “KYC” means know your customer requirements as determined by us or under the AML Regulations.

2 l) “Linked Bank Account” refers to any Indian bank account of the User which is authenticated or verified as per KYC requirements and from/to which the User can make top-ups/withdrawals from INR Wallet.

 

2 m) “Services” means all content, functionality and services made available to Users through Pi42.com Platform including but not limited to: (a) exchanging USD Tether (USDT), a VDA, or other VDAs for INR, after a User first credits their Pi42 Account balance with USDT / other VDAs by means of a VDA Wallet incoming transfer from their own external VDA wallet; (b) trading with the User in VDA/crypto-INR perpetual futures pairs (with an option for us to seek delivery in accordance with the User Terms and Conditions and this Trading Policy), for a transaction fee and (c) any other products, services or offerings as may be introduced from time to time. In respect of transactions, the Users accessing Pi42.com Platform will be contracting with the Company, which will be the counterparty to all transactions except with regard to VDA incoming transfers into a User's VDA Wallet (in which regard Pi42.com Platform merely facilitates the transaction as an intermediary).

2 n) “User” or “You” or “Your” means visitors to Pi42.com Platform or persons otherwise using Pi42.com Platform or availing of the Services, directly or indirectly, including by transacting on Pi42.com Platform.

 

2 o) “Wallet(s)” refers to the “Coin Wallet” and/or “INR Wallet” provided to the User, as the case maybe.

 

3 - YOUR WALLETS

3 a) Upon creation/activation of your Pi42 Account and till such time your Pi42 Account is active, you will be provided access to an INR Wallet and a USDT Wallet address to enable you to trade perpetual futures contracts or store Digital Assets supported on Pi42.com Platform. You are required to maintain a minimum balance of Funds before you initiate any sale/purchase order. We reserve the right to refuse to execute/effect any order and/or transaction initiated by you, if they are in contravention of the KYC-AML Policy or non-compliant with directions of appropriate enforcement authorities.

 

3 b) Terms of INR Wallet

 

i) As part of your Pi42 Account, an INR Wallet facility is provided to you for storage of your INR Holdings. You can only transfer INR denominated funds (and not any other currency whatsoever) from your Linked Bank Account to your INR Wallet. You are the owner of INR balances in your INR Wallet. INR Wallet is a non-interest-bearing account and you will not receive any interest on Funds held therein. Any INR funds paid by you are an advance and must be utilised within 300 days or   withdrawn by you into your Linked Bank Account failing which we will attempt to return the funds to you. In case we are unable to return the Funds with reasonable efforts, we have no option but to forfeit the amount with intimation to you.

ii) When you make an INR transfer from your Linked Bank Account to INR Wallet, your Funds shall reflect in your INR Wallet subject to any delays in the relevant banking channels, payment gateway transfers or similar issues. If your top-up/transfer is invalidated for any reason, Pi42.com shall not be liable to you to any extent and you have no recourse against us.

 

iii) We shall monitor transfers made into your INR Wallet for high-risk & fraudulent transactions as per our AML Policy available at KYC-AML Policy.  If your transfers are classified as high-risk transactions or are suspected of fraud, we will place a hold on the transfer and may ask you for more information on you as may be required. We will conduct a review and will accordingly either clear or cancel the transfer. If the transfer is cleared, we will notify you and update your INR Wallet. Otherwise, we will cancel the transfer and the funds shall be returned to your Linked Bank Account or forfeited. We will notify you by email and/or in the account history tab of your INR Wallet if the top-ups are cancelled. We reserve the right to delay withdrawals while screening for risk, request that you provide additional information to verify your identity, and limit the amount you can withdraw until the information is verified.

As part of your Pi42 Account, a USDT Wallet address facility is provided to you for transfer of your Digital Assets. Pi42 allows Users to have only one INR Wallet. For USDT deposits, the USDT gets converted to INR after a compliance check. When the amount gets credited, only then the Users can start the trading on the Pi42 Platform.

3 c) Transfer or withdrawal requests. Wallet-to-wallet deposits or transfers to and from between Users or different Pi42 Accounts are not permitted. You may withdraw surplus Funds from your INR Wallet at any time by placing a withdrawal request. Pi42.com will endeavour to process each withdrawal request as reasonably as practicable and the same shall be subject to the User Terms and Conditions, the AML Policy, this Trading Policy, and such restrictions and limits as may be notified on Pi42.com Platform from time to time.

 

3 d) You agree and understand that your Wallets are not closed loop instruments which are not regulated by the Reserve Bank of India. You cannot use funds  in your INR Wallet  for settlement of payment obligations for purchase of goods/ services / VDAs from third parties other than Pi42.com. You can use such Funds only to trade in VDAs  and/or to trade in perpetual futures  contracts with the Company through Pi42.com Platform. You agree and understand that Pi42.com does not operate a payment system.

4 - CUSTODY AND TITLE OF DIGITAL ASSETS

 

4 a) Appointment: You agree to hereby appoint us to act as the custodian of the Digital Assets held by you in the Coin Wallet, to be held in trust by us for your benefit in accordance with this Trading Policy, and we accept such appointment and the obligations, duties, and responsibilities set out in this Trading Policy. You agree, understand and authorise Pi42.com to enter into agreements or arrangements with third party service providers for custodial services and ledger services as may be required for maintenance and operation of the Wallets from time to time.

 

4 b) Title: The Digital Assets held in trust will be fully-paid assets legally and beneficially owned by you.

 

5 - TERMS FOR PLACING ORDERS

 

5 a) Orders: You have the option to place buy/sell orders for perpetual futures contracts traded through Pi42.com Platform using limit orders and market orders. In a limit order, you can specify the exact price at which the order is to be executed (whether or not that is the market price at the time you place the order) (“Limit Order”). In a market order, you choose to immediately buy or sell based on the price displayed on Pi42.com Platform at the time you place the order (“Market Order”). You must maintain availability of sufficient balance in your INR Wallet before placing any orders failing which such orders may be rejected.  

5 b) Authorization: When you submit an order through Pi42.com Platform, you authorise us to execute a transaction as per your instructions in accordance with such order and charge you a fee for our Services.

 

5 c) Errors: Pi42.com provides you with the tools to verify your order before confirming it so that you have the opportunity to catch a mistyped order. Pi42.com will not be responsible for losses/damages/costs induced by mistyped or otherwise wrongly placed orders. Notwithstanding the foregoing, in the event we determine, at our sole discretion, that as a result of a technical issue an executed order did not reflect the fair market value for the applicable Digital Asset or perpetual futures contract, we may cancel or correct such order.

 

5 d) Cancellation Policy. Orders initiated by you on Pi42.com Platform are final, irreversible, non-refundable and non-cancellable to the extent such orders are executed whether fully or partially. Limit Orders can be cancelled, amended until the point of execution. Once a transaction is initiated by you on Pi42.com Platform, the said transaction is absolute and unconditional. You cannot seek or claim or demand refund or reversal for any reason whatsoever nor can it be cancelled, modified or reversed by us/ anyone else upon your/ third-party request. Pi42.com reserves the right to cancel/negate any orders if such orders are placed during scheduled or unscheduled downtime or violates any terms. We reserve the right at our sole discretion whether or not to accept any order or instruction and we are not responsible for any losses incurred as a result of our decision to cancel or refuse an order placed by you.

 

5 e) No Refund. You will not be entitled to refund or cancellation in following circumstances:

i) you fail to provide us with any information or documents when requested in accordance with the User Terms and Conditions, the AML Policy or this Trading Policy,

ii) we suspect that the User has, or is, engaged in, or has in any way been involved in any fraudulent or illegal activity, any money laundering, any terrorist financing, or breach of any relevant laws in any jurisdiction.

 

5 f) Execution, Volatility.You agree and understand that the algorithm of Pi42.com provides the price for a specific quantity of Digital Assets or perpetual futures contracts based on various factors like high volatile nature and market fluctuations, exchange fees, changes in prices in the order book, fractions of Digital Assets or perpetual futures contracts available for transactions and you are aware that specific price shown on Pi42.com Platform which is based on algorithms may change during the actual execution of trade on Pi42.com Platform. You can view the details of the actual execution of the transaction  under your Pi42 Account. You consent to Pi42.com absorbing any negative change and/ or retaining or refunding (at its sole discretion) to you, any positive change of price variation in executing the orders.

 

5 g) Suspicious Activity. We may decline to process any transaction from your Wallet or any orders or any other service offered by us or any part thereof without any notice and may limit or suspend your use of one or more Services at any time, in our sole discretion. Pi42.com may delay transactions if we believe the transaction (a) is suspicious, (b) may involve fraud or misconduct, (c) violates applicable laws or third party rights, (d) violates the terms of this Trading Policy, the AML Policy and/ or the User Terms and Conditions, or (d) is otherwise required to be delayed, in our sole and absolute discretion. You understand that Pi42.com shall have no liability or responsibility for such termination/suspension or any losses arising therefrom. We reserve the right to block any user from making bank transfers if there are reasonable grounds to believe that the same (a) is not in accordance with the terms of this Trading Policy, the AML Policy, the User Terms and Conditions and/or applicable law and/or (b) it is suspicious that the user is misusing or fraudulently transacting. We may report such suspicious activities to the concerned statutory/law enforcement agencies. Any withdrawal found to be suspicious will be held back and reversed. The Wallet facility will also be suspended for operations and no transactions will be possible pending an investigation.

 

6 - FEES

 

6 a) Creation of a Pi42 Account on Pi42.com Platform and usage of Pi42.com Platform is free.

 

6 b) Transaction Fee. Trading on Pi42.com Platform is subject to payment of a fee on each transaction executed, which shall be chargeable on each trade basis as provided in the fee schedule as stated on Pi42.com Platform and accessible at https://pi42.com/fee-structure. By placing and confirming an order on Pi42.com Platform, you agree to pay the transaction fee.

 

6 c) Deposit Top-up of Digital Assets in USDT Wallet address will incur fees. Top-up of INR through Instant Bank Transfer-IMPS and Manual Bank Transfer by NEFT/IMPS/RTGS is  free of charge, as prescribed in the Platform. The fee applicable on withdrawal of INR shall be as provided in the Fee Structure. Top-ups and withdrawals of Digital Assets or INR will be subject to withdrawal limits provided in the Fee Structure.

 

6 d) Payment of Fees. You authorise us and/or our designated payment processor to charge or deduct Funds from your Wallet for any applicable fees owed in connection with exchange transactions you undertake on Pi42.com Platform.

 

7 - NO SUITABILITY REVIEW; NO INVESTMENT ADVICE

 

7 a) No-Broker, Agent Relationship. You agree that:

i) We are the counter-party to all transactions except with regard to VDA incoming transfers into your Wallet (in which regard we merely facilitate the transaction as an intermediary) and that we do not act as your broker, agent, or advisor, or in any fiduciary capacity, and

ii) no communication or information provided to you by us shall be considered or construed as advice.

Pi42.com shall carry out instructions placed by the Users through the Pi42 Account on an execution-only basis. Pi42.com neither manages the Pi42 Account nor advises the users. Pi42.com is entitled to execute a transaction placed as per User instructions even if the transaction is not beneficial for the User. Save and except and unless expressly undertaken under these Terms of Trading Policy and/or other agreement executed with the User, Pi42.com is under no obligation whatsoever to monitor or advise the User on the status of any transaction, to make margin calls, or to close out any of the users’ open positions

 

7 b) You acknowledge and agree that, in the course of providing the Services to you, neither Pi42.com nor its representatives provide any advice or recommendations regarding the purchase or sale of any Digital Asset or perpetual futures contacts, nor do they make any determination of your general investment needs or objectives or of the suitability of the proposed purchase or sale of any Digital Asset or perpetual futures contracts. You are responsible for your investment decisions and transactions, for any profits or losses, and for any tax consequences that may result. You further acknowledge and agree that, in the course of providing the Services to you, neither Pi42.com nor its representatives provide you with any legal, tax, or accounting advice regarding the profitability of any Digital Asset or perpetual futures contracts or investment or any decision in respect thereof, nor does Pi42.com or its representatives consider your financial situation, investment knowledge, investment objectives, and risk tolerance when accepting orders from you. You will not solicit or rely upon any such advice from Pi42.com or any of its employees and agree that Pi42.com will have no liability therefore whatsoever. Additionally, the material accessible through Pi42.com does not constitute a representation that the purchase of Digital Assets or perpetual futures contract is suitable or appropriate for you. Please also refer to our disclosure document available at Risk Disclosures.

 

8 - TAXES

 

8 a) It is your sole responsibility to determine, collect, report, and submit any / all taxes applicable to the payments you make or receive in connection with the use of the Services / transactions you undertake on Pi42.com Platform to the appropriate tax authority in India or under any other applicable laws. We are not responsible for determining whether any taxes apply to the transactions carried out by you on Pi42.com Platform or the Services availed by you, or for collecting, reporting or remitting any taxes arising from any transaction undertaken by you via Pi42.com Platform or Services. You acknowledge that any income from transactions involving VDAs  could be treated as business income or as a capital gain, depending on the circumstances, including your trading practices. You are solely responsible for determining, reporting and submitting the applicable taxes on the income you derive from such transactions in VDAs.

 

8 b) You hereby authorize us to withhold / collect any applicable tax and deposit on your behalf in accordance with this Clause. In cases where we withhold / collect tax, we shall provide you with evidence of such withholding / collecting as per the statutory requirements. You would be solely responsible for claiming any credits, refund or exemption(s), if any, from tax authorities. Pi42.com shall not be responsible in any manner whatsoever for the same. You also agree to remit to us, on demand, any additional funds if required, to discharge any such liability in relation to rewards in kind.

 

8 c) All fees, commissions, interests, and other charges of Pi42.com are exclusive of any applicable goods and services tax which shall be borne by you and separately charged. In case any further Goods and Services Tax (“GST”) is made applicable on the Services or the transactions on Pi42.com Platform in the future, we reserve the right to separately charge such GST which shall be borne by You. You agree that perpetual futures do not amount to 'virtual digital assets', 'goods' or 'services'.

8 d) We believe that you are a tax-compliant citizen abiding by the laws of the Income Tax Act, 1961, the Goods and Services Tax Act, 2017, and any other applicable laws. You agree and confirm that you have filed your income tax returns in the past two years in accordance with the Income Tax Act, 1961, and all the provisions of the Income Tax Act, 1961 are applicable to you.

 

9 - TRADING, SETTLEMENT AND ACCOUNTS - TERMS AND CONDITIONS

9 a) Order Placement and Execution:  You acknowledge that all orders placed through Pi42.com Platform will be subject to order execution mechanisms at Pi42.com's discretion. Pi42.com will send online confirmation of the order execution to You via electronic mail or SMS, and this confirmation will be considered valid execution. You must promptly review all confirmations of orders, transactions, or cancellations received through electronic means and report any discrepancies to Pi42.com within twenty-four hours.

 

9 b) Reporting and Account Discrepancies: Any errors in reports, confirmations, or transaction history, including execution prices, scripts, or quantities, must be brought to Pi42.com's notice in writing via electronic mail to [[email protected] ] within 24 (Twenty-four) hours of receiving the concerned report. Other discrepancies in the confirmation or account should also be notified to Pi42.com in writing via electronic mail to the foregoing email address within twenty-four hours of receiving the initial notice. Pi42.com reserves the right to accept or reject Your  objections.

 

9 c) Delayed Reports and Statements: Pi42.com may experience delays in generating transaction reports due to factors beyond its reasonable control. In such cases, Pi42.com may forward late reports to You, and You agree not to hold Pi42.com responsible for any losses resulting from such late reports or any errors in the statements received from the exchange.

 

9 d) Order Rejections and Lapses: Pi42.com reserves the right to reject orders for various reasons, including non-availability of funds, VDAs margin amount, suspension of trading activities, law enforcement communications, or cyber or blockchain-related factors. If an order is not executed on Pi42.com Platform for any reason, Pi42.com may consider the order as lapsed.

 

9 e) Disruptions and System Failures: You acknowledge that electronic trading systems such as Pi42.com Platform, may experience temporary disruptions, breakdowns, or failures. In the event of non-execution or cancellation of trade orders due to such events, Pi42.com may cancel related requests and will not be liable for executing the desired transactions. Pi42.com  is not responsible for any losses incurred by You due to such disruptions beyond its control.

 

9 f) Compliance with Rules: You agree to comply with all applicable laws and with all terms and policies of Pi42.com while transacting or otherwise using Pi42.com Platform

 

9 g) Liquidation: Pi42.com shall be entitled, but shall have no obligation, to make margin calls to you in respect of your transactions. If a margin call is made, it will be made through Pi42.com Platform, by email, or other electronic means. You are responsible for monitoring your Pi42 Account and for maintaining sufficient margin at all times to satisfy applicable margin requirements, especially during volatile periods, regardless of whether or not a margin call has been made. Any failure to satisfy a margin call or any failure to otherwise maintain sufficient margin in your Pi42 Account may lead to your positions being subject to liquidation. Pi42.com shall have no liability to you or any third party in connection with any failure by you in this connection.

9 h) Users Responsibility for Orders: Any order made by the User, even if mistaken, using their allotted user name and credentials will be considered a valid order for which the User will be fully responsible. Cancellation or modification of orders is not guaranteed and will be processed only if the User’s request is received and executed before the order is processed.

 

9 i) Order Confirmation: You shall not presume an order as executed, cancelled, or modified until a confirmation from Pi42.com is received. Delayed transmission of confirmations due to technical factors shall not entitle  you to presume the status of the order without written confirmation from Pi42.com.

9 j) Discretionary Trading Permissions: Pi42.com may, at its sole discretion, allow or disallow You from trading in perpetual futures contracts or otherwise transacting on Pi42.com Platform and impose conditions as deemed fit.

9 k) Delivery: Delivery in perpetual futures contracts is different from traditional futures contracts which is what Pi42 offers to the Users.  As long as Users maintain sufficient margin in their Wallet at all times to satisfy applicable margin requirements for their open positions, Users can hold their long or short positions perpetually. Users only deal with buying and selling of contracts and the users can hold the same perpetual futures contracts indefinitely. Perpetual futures contracts maintain a price close to the base price of the order known as Funding Fees (please refer to the Fee Structure here),  by which the Users gets as credit or debit in their INR Wallet.