| 1. |
In addition to all requirements in the Market Conduct Rulebook, Client Agreements for Lending and Borrowing Services shall set out the following, to the extent applicable—
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a. |
descriptions of the Virtual Assets lent, borrowed, and/or used as collateral that are sufficient to identify such Virtual Assets; |
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b. |
any loan-to-value ratio[s] applicable under the Client Agreement; |
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c. |
the respective rights of the VASP, the client and any other Entity involved in the Lending and Borrowing Services in respect of Virtual Assets that are the subject of the Client Agreement, including in respect of collateral; |
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d. |
how and when any interest is paid or payable, the applicable rate, or in the case of a variable rate, how it is calculated and how interest may vary and how such variations will be communicated by the VASP to the client; |
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e. |
how and when any Virtual Assets lent or borrowed, or held as collateral, are to be held and returned; |
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f. |
whether or not Virtual Assets of a client used by a VASP in the course of, or in connection with, carrying out any Lending and Borrowing Services, shall be held on behalf of the client; |
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g. |
the consent of the clients to the use of any Virtual Assets of the client in the course of the provision of Lending and Borrowing Services by the VASP shall be clearly and transparently obtained in accordance with all applicable laws; |
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h. |
any right of the client to withdraw any Virtual Assets lent or borrowed or held as collateral; |
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i. |
a statement explaining that client Virtual Assets used by the VASP in the course of the provision of Lending and Borrowing Services may be at risk, including the types and nature of such risks, and a statement on the likelihood and severity of any losses which may be suffered; |
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j. |
any rights of the VASP to vary the terms of the Client Agreement; |
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k. |
any rights of the VASP and the client to terminate the Client Agreement and the consequences of termination; |
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l. |
any terms relating to any fluctuation in value of the Virtual Assets to which the Client Agreement relates; |
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m. |
consequences of any event of default; |
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n. |
an explanation of the risks the client may be exposed to; |
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o. |
full details of the VASP’s client complaints procedure to enable clients to register complaints as required in relation to the VASP or the services provided by the VASP; and |
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p. |
any requirements necessary for compliance with the governing law of the Client Agreement.
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