| Term | Definition |
| “Board” | has the meaning ascribed to it in the Company Rulebook. |
| “Capital and Prudential Requirements” | has the meaning ascribed to it in the Company Rulebook. |
| “Client Agreements” | has the meaning ascribed to it in the Market Conduct Rulebook. |
| “Company Rulebook” | means the Company Rulebook issued by VARA pursuant to the Regulations, as may be amended from time to time. |
| “Compliance and Risk Management Rulebook” | means the Compliance and Risk Management Rulebook issued by VARA pursuant to the Regulations, as may be amended from time to time. |
| “Contracts for Difference” | means an agreement where the buyer and seller agree to exchange the difference between (i) the value of one or more Underlying Assets at the time the contract was entered into, and (ii) the value of those Underlying Assets at a later date stipulated in the agreement. |
| “Directive” | has the meaning ascribed to it in the Regulations. |
| “Distributed Ledger Technology” or “DLT” | has the meaning ascribed to the term ‘Distributed Ledger Technology' in the Dubai VA Law. |
| “Dubai VA Law” | means Law No. (4) of 2022 Regulating Virtual Assets in the Emirate of Dubai, as may be amended from time to time. |
| “Emirate” | means all zones across the Emirate of Dubai, including Special Development Zones and Free Zones but excluding the Dubai International Financial Centre. |
| “Entity” | means any legal entity or individual. |
| “Exchange Services” | has the meaning ascribed to it in Schedule 1 of the Regulations. |
| “Exchange Services Rulebook” | means this Exchange Services Rulebook issued by VARA pursuant to the Regulations, as may be amended from time to time. |
| “Exchange Traded Derivative” or “ETD” | means any instrument, contract, product or agreement between two or more Entities that derives its value, and/or its value fluctuates based on, the price of one or more Underlying Assets and whose price and/or settlement is denominated in a Virtual Asset. | ETDs include, but are not limited to— | a) | Contracts for Difference; | | b) | Futures; | | c) | Options; and/or | | d) | any other instrument, contract, product or agreement designated by VARA from time to time. |
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| "ETD Client" | has the meaning ascribed to it in Rule V.C.1 of this Exchange Services Rulebook. |
| “ETD Initial Margin” | means the minimum value of assets which must be deposited by the client in the ETD Trading Account, or otherwise available in the ETD Trading Account but not committed to an existing ETD position, prior to opening any new ETD position, which shall be calculated as follows— | (a) | for Retail Clients— | i. | a minimum of twenty percent (20%) of the notional position value of the new ETD position; or | | ii. | such greater amount as VARA may require for a specific VASP, ETD or Underlying Asset, from time to time; and
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| | (b) | for Qualified Investors and Institutional Investors— | i. | such amounts as determined by the VASP's policy; or | | ii. | such greater amount as VARA may require for a specific VASP, ETD or Underlying Asset, from time to time. |
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| "ETD Maintenance Margin" | means, in the context of the ETD Services, any additional margin, as may be required by a VASP under Rule V.G.2, that must be provided by the client to the ETD Trading Account to keep an ETD position open. |
| “ETD Margin” | means ETD Initial Margin and any ETD Maintenance Margin as defined in this Exchange Services Rulebook. |
| "ETD Services" | means any of the following— | a) | matching orders between buyers and sellers and conducting the purchase, sale or any other transaction between ETDs and Virtual Assets; or | | b) | maintaining an order book in furtherance of (a) above.
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| For the avoidance of doubt, matching orders between buyers and sellers and conducting the purchase, sale or any other transaction between ETDs and fiat currency is not permitted under this Exchange Services Rulebook. |
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| “ETD Services Agreement” | means the terms and conditions governing the relationship between the VASP and the ETD Client in relation to the ETD Services, which shall form part of the Client Agreement between the VASP providing ETD Services and the ETD Client. |
| “ETD Trading Account” | means a type of client account with the VASP, through which dealings in ETDs are executed and ETD Margin is required to be posted by the ETD Client. |
| “Futures” | means an agreement to buy or sell one or more Underlying Assets at a predetermined price. |
| “Group” | has the meaning ascribed to it in the Company Rulebook. |
| “Initial Margin” | means the minimum value of assets which must be deposited by the client in the Margin Trading Account, or otherwise available in the Margin Trading Account but not committed to an existing Margin Trading position, prior to the client opening any new Margin Trading position, which shall be calculated as follows— | | (a) | for Retail Investors— | | | i. | a minimum of twenty percent (20%) of the notional position value of the new Margin Trading position; or | | | ii. | such greater amount as VARA may require for a specific VASP, Virtual Asset or client, from time to time; and | | (b) | for Qualified Investors and Institutional Investors— | | | i. | such amounts as determined by the VASP's policy; or | | | i. | such greater amount as VARA may require for a specific VASP, Virtual Asset or client, from time to time. |
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| “Institutional Investor” | has the meaning ascribed to it in the Market Conduct Rulebook. |
| “Insurance Fund" | means the fund established by the VASP in relation to the provision of the ETD Services to cover negative equity balances, in whole or in part, as required in Rule V.I.1 of this Exchange Services Rulebook. |
| “Licence” | has the meaning ascribed to it in the Regulations. |
| “Licensed” | means holding a valid Licence. |
| “Maintenance Margin” | means the value of assets which must be deposited by the client in the Margin Trading Account, or otherwise available in the Margin Trading Account but not committed to an existing Margin Trading position, to keep a Margin Trading position open. |
| “Margin” | means the Initial Margin and any Maintenance Margin provided by a client. |
| “Margin Trading” | means the financing made by a VASP of a proportion or multiple of the market value of the Virtual Assets financed on margin, and secured as collateral by the Virtual Assets available in the Margin Trading Account or any other collateral in the cases exclusively stated in these Rules. |
| “Margin Trading Account” | means a type of client account with the VASP, through which dealings in Virtual Assets financed on Margin are executed. |
| “Margin Trading Agreement” | means the agreement between the VASP and the client specifying the terms and conditions governing the relationship between them in relation to Margin Trading. |
| “Market Conduct Rulebook” | means the Market Conduct Rulebook issued by VARA pursuant to the Regulations, as may be amended from time to time. |
| “Market Offences” | has the meaning ascribed to it in the Regulations. |
| “Operational Exposure” | has the meaning ascribed to it in the Regulations. |
| “Options” | means an agreement that grants the buyer the right, but not the obligation, to buy or sell one or more Underlying Assets at a specified price. |
| “Paid-Up Capital” | has the meaning ascribed to it in the Company Rulebook. |
| "Perpetual ETD" | has the meaning ascribed to it in Rule V.H.1 of this Exchange Services Rulebook. |
| “Qualified Investor” | has the meaning ascribed to it in the Market Conduct Rulebook. |
| “Regulations” | means the Virtual Assets and Related Activities Regulations 2023, as may be amended from time to time. |
| “Retail Investor” | has the meaning ascribed to it in the Market Conduct Rulebook. |
| “Rule” | has the meaning ascribed to it in the Regulations. |
| “Rulebook” | has the meaning ascribed to it in the Regulations. |
| “Senior Management” | has the meaning ascribed to it in the Company Rulebook. |
| “Technology and Information Rulebook” | means the Technology and Information Rulebook issued by VARA pursuant to the Regulations, as may be amended VARA from time to time. |
| “UAE” | means the United Arab Emirates. |
| "Underlying Asset" | means— | a) | a Virtual Asset; or | | b) | any other asset or type of asset approved by VARA and stipulated in a VASP's Licence. |
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| “VA Activity” | means the activities listed in Schedule 1 of the Regulations, as may be amended from time to time. |
| “VARA” | means the Dubai Virtual Assets Regulatory Authority. |
| “VASP” | means an Entity authorised by VARA to conduct VA Activity(ies) in the Emirate. |
| “Virtual Asset” or “VA” | has the meaning ascribed to it in the Dubai VA Law. |
| “Working Day” | has the meaning ascribed to it in the Regulations. |