OKX Australia Financial Fixed Coupon Product Terms

1. Overview

1.1 These Fixed Coupon Product Terms ("Product Terms") apply to each accepted Order that identifies them. Capitalised terms not defined here have the meanings given in Part C or the Glossary of the OKX Australia Terms of Service ("TOS").

1.2 Each Order is a separate over-the-counter derivative transaction between you and OKX Australia Financial as principal and counterparty. The Order Confirmation, these Product Terms and the TOS form the agreement for that Order. The order of precedence in clause 24.24 of Part C applies.

1.3 The Product is available only to a person who is, and remains, an eligible Wholesale Client under Part C. You must not submit an Order, and must notify us promptly, if you cease to satisfy that requirement while an Order is outstanding.

1.4 You enter each Order as principal for your own account, based on your own assessment and any independent advice you consider necessary. Information made available by us is general information and is not personal financial, legal or tax advice.

2. Definitions

3. Fixed Coupon Product

3.1 Description

3.1.1 A Fixed Coupon Product is a non-principal-protected structured derivative. You pay the Investment Amount to us for a defined Term and receive fixed Coupons, subject to any Knock-Out Event. At expiry, the Settlement Currency depends on the Product orientation, the Observation Price, the Strike Price and any applicable Knock-In Event. Economically, a Bullish Product includes a put option sold by you to us and a Bearish Product includes a call option sold by you to us.

3.1.2 An Order may have no barriers, a Knock-In Barrier only, a Knock-Out Barrier only, or both barriers. A barrier clause does not apply if the corresponding barrier and observation schedule are not included in the Order Confirmation.

4. Order Terms and subscription

4.1 Order Terms

4.1.1 The Order Terms must specify at least:

(a) Bullish or Bearish orientation and the Underlying Currency Pair;

(b) the Investment Amount, Investment Currency and Target Currency;

(c) the Strike Price and, if applicable, the Knock-In Barrier and Knock-Out Barrier;

(d) the Coupon Rate, Coupon Accrual Start, Coupon Periods and Coupon Payment Dates;

(e) the Knock-In Observation Dates and Knock-Out Observation Dates, if applicable;

(f) the Expiration Date and Observation Time;

(g) any Settlement Date that differs from the date determined under these Product Terms;

(h) any fees that apply; and

(i) any different reference-price source, observation method, precision or rounding convention.

4.2 Formation and acceptance

4.2.1 An indicative quote or interim term sheet is not binding. Your electronic submission of an Order through the Platform constitutes an offer to enter into the Order. The Order becomes binding only when OKX Australia Financial accepts it by issuing an Order Confirmation.

4.2.2 The Order Confirmation records the final Order Terms and the applicable document versions. You must review it promptly and notify us of any apparent discrepancy. Information displayed elsewhere on the Platform does not vary the Order Confirmation unless we expressly agree in writing.

5. Coupon calculation and payment

5.1 Term Coupon Rate = Coupon Rate / 100 / 365 x number of days in the Coupon Period

5.2 Coupon = Investment Amount x Term Coupon Rate

5.3 Coupon is paid in the Investment Currency on or around each Coupon Payment Date unless the Order Confirmation states otherwise. Coupon is paid whether or not a Knock-In Event has occurred. If a Knock-Out Event occurs, Coupon accrues up to and including the Knock-Out Date, after which no further Coupon accrues or is payable.

5.4 The Coupon Rate is annualised. It is not the total Coupon payable for the Term and does not protect the Investment Amount against conversion loss.

6. Barrier events

6.1 Knock-In Event

6.1.1 A Knock-In Event occurs when the condition in the definition is first met on a Knock-In Observation Date. It does not terminate the Order. Once it occurs, it remains effective unless a later Knock-Out Event terminates the Order. If no Knock-In Barrier is specified, adverse settlement at expiry does not require a Knock-In Event.

6.2 Knock-Out Event

6.2.1 A Knock-Out Event occurs when the condition in the definition is met on a Knock-Out Observation Date. It terminates the Order on the Knock-Out Date, regardless of any earlier Knock-In Event. We will return the Investment Amount in the Investment Currency and pay Coupon accrued up to and including the Knock-Out Date on or around the Settlement Date.

7. Settlement at expiry

7.1 If no Knock-Out Event has occurred, the Settlement Amount and Settlement Currency are determined at the Observation Time on the Expiration Date as follows.

7.2 Bullish Product

7.3 Bearish Product

7.4 Coupons are paid separately under clause 5. We will credit the Settlement Amount to your Account on the Settlement Date or as soon as reasonably practicable afterwards.

8. Worked examples

These examples illustrate conversion only. They exclude Coupon, fees, rounding and tax and are not forecasts.

8.1 Bullish conversion

8.1.1 Investment Amount: 100,000 USDT. Strike Price: 95,000 USDT per BTC. A Knock-In Event occurs and the Observation Price at expiry is 80,000. Settlement Amount = 100,000 / 95,000 = approximately 1.052632 BTC.

8.2 Bearish conversion

8.2.1 Investment Amount: 1 BTC. Strike Price: 105,000 USDT per BTC. A Knock-In Event occurs and the Observation Price at expiry is 112,000. Settlement Amount = 1 x 105,000 = 105,000 USDT.

9. Reference price fallback and extraordinary events

9.1 If the Primary Source is unavailable, suspended, manifestly erroneous or materially disrupted at an observation point, we will determine the Observation Price using the following sequence, stopping at the first step that produces a reliable price:

(a) one or more alternative exchanges or trading venues that we determine in good faith and in a commercially reasonable manner are representative of the relevant market; if more than one source is used, we may use an arithmetic mean after excluding an anomalous price that deviates by more than 10% from the median of available prices;

(b) if no reliable alternative source is available, a price determined in good faith and in a commercially reasonable manner having regard to the last reliable price, prices for analogous instruments and other relevant market data; or

(c) if a reliable price still cannot be determined, postponement to the next Business Day on which it can be determined, for a maximum of five Business Days.

9.2 A Knock-In or Knock-Out observation affected by a disruption will be postponed. A barrier event will not be treated as having occurred solely because of an internally determined fallback price unless we are satisfied, acting in good faith and in a commercially reasonable manner, that the price represents fair market value at the relevant time.

9.3 If a protocol fork, hard fork, airdrop, token migration, change in consensus mechanism, delisting, material change to the Underlying Currency Pair or another extraordinary event materially affects an Order, we may make adjustments reasonably necessary to preserve its economic effect. Adjustments may include changes to prices, barriers, observation dates, settlement assets or calculation methods. If no reasonable adjustment is sufficient, we may terminate the affected Order under the termination clause below.

9.4 We will make determinations and adjustments under this clause in good faith and in a commercially reasonable manner, document the basis for a material determination, and notify you as soon as reasonably practicable. This clause does not exclude liability that cannot lawfully be excluded.

10. Early unwind

10.1 You have no right to cancel or terminate an accepted Order. If we make early unwind requests available for an Order, you may request an unwind through the channel we specify. We may accept or reject the request. Before execution, we will provide an indicative unwind amount for your confirmation. Once confirmed, the unwind is irrevocable.

10.2 The unwind amount will reflect the mark-to-market value of the Order, including the remaining time to expiry, the prevailing price of the Underlying Currency Pair, volatility, liquidity and reasonable unwind costs. It may be materially less than the Investment Amount.

11. Termination and manifest error

11.1 We may terminate an affected Order if performance becomes unlawful, a regulatory action materially affects the Product, a force majeure or market disruption continues for more than five Business Days, an extraordinary event cannot be addressed by a reasonable adjustment, or continued performance is not reasonably practicable without materially changing the economic effect of the Order. We may also terminate an affected Order if we restrict, suspend or terminate your access to the Structured Products Service or your Account under clause 9 of the TOS and determine that the Order cannot remain outstanding or be settled in the ordinary course.

11.2 On termination, we will calculate a close-out amount in good faith and in a commercially reasonable manner by reference to the mark-to-market value of the Fixed Coupon Product, after reasonable unwind costs. The close-out amount may be materially less than the Investment Amount. Any Coupon accrued and unpaid up to the termination date will be paid in addition to the close-out amount. We will notify you of the basis of calculation and aim to credit the amount within two Business Days after termination.

11.3 If an accepted Order contains a manifest error that materially affects its economic terms, we may correct it with your agreement or cancel it after notifying you. On cancellation, we will promptly return the Investment Amount in the Investment Currency and neither party will retain a benefit arising solely from the error.

12. Product-specific risks

12.1 Conversion risk. The Investment Amount may be converted at the Strike Price when the market price is materially less favourable. The market value received may be substantially less than the Investment Amount and could suffer a significant or near-total loss of economic value.

12.2 Short-option risk. Coupon is consideration for an embedded option sold by you to us. Coupon may be insufficient to compensate for adverse market movement.

12.3 Knock-In risk. A Knock-In Event can materially change the expiry outcome and, once triggered, is irreversible unless a later Knock-Out Event terminates the Order. More frequent observations increase the probability of a Knock-In Event.

12.4 Knock-Out and reinvestment risk. A Knock-Out Event ends the Order early, stops further Coupon and may require reinvestment at a lower rate.

12.5 Path-dependency and barrier risk. The outcome depends on observations throughout the Term, not only the price at expiry. A brief price movement on an Observation Date may trigger a barrier event even if the price later recovers.

12.6 Annualised-rate risk. The Coupon Rate can appear large even though the Coupon for a short Coupon Period is small.

12.7 Valuation and timing risk. Each Observation Price is an average over the observation window and may differ from a spot price before, during or after that window.

12.8 Liquidity risk. There is no secondary market. An early unwind may be unavailable or may return materially less than the Investment Amount.

12.9 Counterparty and conflicts risk. You rely on OKX Australia Financial to perform the Order. We make determinations affecting the Order and may hedge with a Related Party, as described in Part C.

12.10 Technology, network, regulatory and tax risk. Operational delays, network events, changes in law and tax treatment may affect performance or the value of settlement.

12.11 The common Structured Product and derivatives risks in Part C also apply.

13. Document version

13.1 The version of these Fixed Coupon Product Terms identified in the Order Confirmation governs that Order. A later version applies only to an Order accepted after the later version takes effect, unless a change to an outstanding Order is required by law or you expressly agree to it.

13.2 Nothing in these Product Terms excludes, restricts or modifies a right or remedy that cannot lawfully be excluded, restricted or modified.