Arkham Trading Rules
The following set of rules (“Trading Rules”) governs trading activity on the Arkham Exchange (the “Platform”) by users of the Platform (each a “Trader” and collectively the “Traders”). The Platform will offer Traders the ability to trade a number of cryptocurrencies (“Digital Assets”) and perpetual swaps (“Perps”). If the Platform finds or suspects that the Traders violate the Trading Rules, the Platform may cancel or reverse transactions, suspend Traders, refuse access to the Platform, or take other actions which may negatively impact Traders. Arkham reserves the right to change or modify any of the Trading Rules governing the use of the Platform at any time and in Arkham’s sole discretion.
Third-Party Access Prohibition
Only the Trader that is the natural person or entity that completed the onboarding process with the Platform is allowed to execute trades on the Platform by accessing the account on the Platform (the “Account”).
Traders are forbidden from providing any third-parties access to the Platform, including, without limitation, by providing usernames and passwords, lending physical devices, or otherwise allowing third-parties to use the Platform.
Traders must only participate in the Platform by using their own funds. Traders are not allowed to trade on the Platform using funds provided by third-parties.
Orders
Traders can trade on the Platform by placing a transaction request (an “Order”) in a variety of different ways, including a limit order, a market order, a stop order, and such other order types as Arkham may make available to Traders. When successfully submitted, Orders are posted to the Platform (the “Order Book”).
Traders may cancel an Order before it is executed. The Platform does not charge fees for successfully canceled Orders.
The Platform does not guarantee that Orders will execute (“Fill”).
The Platform may restrict or cancel Orders in its sole discretion to improve the trading experience on the Platform, protect against market manipulation, protect other Traders, and for any other lawful reason.
Traders understand and agree that the Platform may delay executing an Order, during which time prices in the underlying Digital Asset may change significantly.
Limit Orders
A limit order is an Order to buy or sell a specified quantity or notional amount of a Digital Asset at a specified price (“Limit Order”).
The Platform will only Fill a Limit Order at the specified price or a better price. The Platform will try to Fill the Limit Order until the Trader cancels the Limit Order.
Traders can also choose to initiate a limit immediate or cancel Order (“Limit IOC”). In a Limit IOC, an Order will be posted only if it will be immediately Filled and any remaining quantity is canceled.
Market Orders
A market Order is an Order to buy or sell a specified quantity of Digital Asset at the current market prices of other Orders on the Platform (“Market Order”).
The Platform will try to Fill Market Orders as soon as possible. The Platform does not guarantee that it will Fill any Market Order.
Market Orders may Fill at prices less favorable than the most recent prior trade. Traders utilizing Market Orders risk Fills at unfavorable prices and accept that risk by choosing to execute a Market Order as opposed to other Orders, like Limit Orders.
Market Orders will only Fill at prices within the price protection point, which is described in Section 7.1 below. If a complete or partial Market Order cannot Fill, the remaining portion of the Market Order will be cancelled.
A valid Market Order will be automatically posted to the Order Book. A Market Order is always considered a “Taker” Order for purposes of the fees charged, which are defined in the Platform’s Terms and Conditions.
Stop Orders
When the last trade price equals, falls below, or exceeds the Stop Price; and
For Perps, if the mark price or index price equals, falls below, or exceeds the Stop Price.
The Platform will attempt to Fill Stop Orders unless they are cancelled.
Stop Orders are not visible to other Traders.
A Stop Order may be placed as a Limit Order when the Stop Price is triggered (“Stop Limit Order”), executed as a Limit IOC Order per Section 3.3 above (“Stop Market Order”).
The Platform does not guarantee that Stop Orders will Fill.
Posting of Orders to the Order Book
If an Order is posted to the Order Book at the same price as one or more existing Orders (“Taker Order”), it will result in a Fill at that price, to the extent of the total quantity of those existing Orders.
To the extent an Order is posted at a different price to all existing Orders (“Maker Order”), it will remain open until the Trader cancels the Market Order or is Filled by one or more Taker Orders.
Order Protections; Order Minimums and Maximums
Market Orders are subject to a price protection point (“PPP”). Market Orders will Fill at prices up to (or in the case of a sell order, down to) the PPP from the mid-point price between the best bid and best offer at the time the Order was placed. If a Market Order would Fill against Orders beyond the PPP, the Order will partially Fill up to the PPP and the matching engine will cancel all remaining portions of the Order. By default, the PPP level is set at 10% beyond the best bid in which the Order could Fill.
Order Minimums: All Market Orders, Limit Orders, and Stop Orders placed on the Platform are subject to minimum and maximum order size requirements that will be set by the Platform and will change from time to time. The Platform will cancel Orders that do not satisfy the minimum or maximum.
Updating Order Parameters: The Platform may set maximums and minimums in particular Digital Assets at its complete discretion.
Matching Engine and Order Priority
The Platform matches Taker Orders with Maker Orders based on Price-Display-Time Priority.
“Price-Display-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 available price; 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. To the extent that the Taker Order is not completely Filled by one or more Maker Orders described above, it is either 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, or it is canceled if there are no remaining Maker Orders at or better than the limit price (if a Limit Order) or PPP (if a Market Order).
An Order may be matched with one or several corresponding Orders at the same price.
Taker Orders are matched with available Maker Orders. This means that a Limit Order placed outside the market will be Filled by the best available existing Order rather than an existing Order with the same price as the Limit Order.
Settlement
Perps
Market Integrity
All Filled Orders are final and non-refundable.
All Trades that are Filled are final and will not be reversed unless Arkham is compelled to do so by any applicable law or regulation.
The Platform may cancel Orders for any reason, in Arkham’s sole discretion, including, but not limited to, in the following circumstances:
Orders placed by Traders that Arkham suspects or finds have engaged in abusive use of the Platform through, for example, market manipulation;
Orders which, under the circumstances, involve an error with respect to price, quantity, or other parameters or other clearly erroneous transactions;
if required by any applicable law or regulation, including specifically where Arkham is required to suspend or terminate an Account; or
if required for technical or other reasons.
Market Manipulation and Self-Trading
Traders are strictly prohibited from engaging in market manipulation.
Traders are prohibited from placing an Order in which Traders intend for the Order to be Filled by the same Trader, or other Accounts owned or controlled by the Trader, to intentionally artificially increase volume or price in any Digital Asset.
Traders are prohibited from engaging in any trading activity on the Platform which is designed to intentionally artificially increase the volume or price in any Digital Asset.
Traders are prohibited from placing any type of Order for which it does not intend to be Filled for the purpose of intentionally artificially increase the volume or price in any Digital Asset.
Traders are prohibited from coordinating with other Traders on the Platform to intentionally artificially increase the volume, price, or demand in any Digital Asset.
Traders are prohibited from trading on the Platform while in possession of material non-public information concerning the subject Digital Asset.
Traders are prohibited from defrauding other Traders on the Platform. This prohibition includes defrauding other Traders on the Platform while engaging in any of the following, pump and dumps, trading with inside information, falsely promoting a Digital Asset to artificially inflate the price or volume, spoofing, churning, quote stuffing, or wash trading.
Flash Crashes and Circuit Breakers