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GENERAL TRADING TERMS AND CONDITIONS
Valid from 1.1.2017 In case of dispute, the Czech version of Terms and Conditions is superior to the English version of Terms and Conditions.
1. Definition of terms
The Terms and conditions are understood as the following general trading conditions as amended.
Digital currencies are countable immaterial possessions, which may be obtained via a purchase, may be converted and Exchanged for material possessions. The bitcoin is for instance such a Digital currency.
The Exchange of the Operator is the Website on the following address: https://www.bitstock.com, which provides brokering of Digital currencies with the use of Pairing orders.
A Client is a legal or a natural person registered with the Exchange of the Operator, who is over 18 years of age and is nowise limited in terms of their rights.
A Buyer is a Client who buys Digital currencies on the Exchange.
A Seller is a Client who sells Digital currencies on the Exchange.
The Operator is the company Digital Financial Services s.r.o, Švédská 19, 15000 Praha 5, Company Id. 02703874, registered with the Commercial Register kept by the Městský soud in Prague, section C, entry 222516.
Verification of an account is the Client’s identity verification carried out by the Operator using the Client’s personal documents in accordance with the directive Verification of Client’s Account located on this address: https://www.bitstock.com/info/aml
A Trading account is a virtual account maintained by the Operator, on which the latest state of the Client’s financial deposits is managed by the Operator. Financial deposits kept on the Trading account are credited on the account based on direct bank transfers carried out by the Client to the benefit of the bank account of the Operator or on the profit from the trades processed on the Exchange.
An Order is a Client’s order, which the Exchange carries out according to the Client’s instruction.
A Direct order is an order, which originates as a direct reaction to another order. A direct order may originate only as a reaction to another order to buy or sell bitcoins.
A Pairing order are two orders, which comply with the rules defined in the article no. 8 of these Terms and conditions.
Expiration time is the time, after which expiration the order is deleted from the Exchange and it becomes unprocessable.
An Advance for selling bitcoins is a financial amount, which is blocked on the Seller’s Trading account during a sale of bitcoins on the Exchange and which is partly or fully deducted from the Trading account to the benefit of the Operator and the Buyer, in case of closing the trade using the pairing orders and the Seller does not send all bitcoins, which have been included in the trade, on the basis of such closed trade to the Buyer.
The Depth of the market demonstrates the current supply and demand on the Exchange on various levels of the bitcoin rate.
Rigging the prices is a situation, where the Client or an organized group of Clients uses more accounts parallelly to reach for a better price with the purpose of enriching themselves.
2. INTRODUCTORY PROVISIONS
The Exchange abides by these Terms and conditions and each Client is bound to following them. By continuing with the registration process the Client declares that he/she is familiar and agrees with them, if you do not agree with the Terms and conditions, please, do not continue in the registration process.
The Operator in terms of operating the Exchange provides the Client with:
• opening and managing a free account, including ensuring Clinet’s access to this Account, which enables Clients to be informed about the current state of their finances on their Trading account
• processing of transactions of Digital currencies for financial funds among Clients
The Client acknowledges the risk, which derives from trading of digital currencies. The Client acknowledges the significant changes in the value of digital currencies compared to the real currencies. Due to significant changes on the global market the value of the Client’s investment may in fact substantially increase or decrease at any time. Digital currencies are anonymous and extensive unregulated worldwide system. Traders pin their faith in the digital, decentralized and partly anonymous system, which via peer to peer network and cryptography holds its integrity. Digital currencies are not controlled by any authority and it is impossible to cancel already processed payment in a digital currency. The Client should always consider whether his/her financial situation and the rate of the risks is apt to enable trading of digital currencies.
4. COMMERCIAL ACCOUNTS MANAGEMENT
The Client agrees by registering with the Exchange of the Operator that he/she will provide the Operator with current and true information ration on the Exchange Operator agrees that it will provide the current Operator, true, and complete information during registration and for the purposes of trading on the Exchange in particular. Furthermore, the Client agrees to using only one Trading account and that he/she will not be using other Trading accounts opened for other clients.
The Client is obliged not to give access to his/her Trading account to third parties as well as not to disclose any information regarding his/her Trading account.
The Client always checks that he/she uses the secure HTTPS protocol when connecting to the Exchange, which certified with a valid certificate. In case the Client’s web browser alerts an invalid certificate of the Exchange, any further action on such a website is essentially a great risk on the part of the Client.
In case the Client uncovers any action jeopardizing his/her Trading account’s security, namely regarding the abuse of Client’s Trading account, his/her access details or password, the Client is obliged to inform the Operator about such action without any delay.
If the Operator detects any dubious activity on a Client’s Trading account, especially if the Operator discovers that a Trading account is being used to legalize profits from criminal activities, that it has directly been used during committing a criminal activity or in any connection with a committed criminal or other illegal activity, the Client is obliged to provide the Operator with an explanation without delay and also be cooperative to dispose of discovered issues and adopt measures to rectify the flawed state in case the Client does not do so himself/herself. In such case the Operator is entitled to act at his discretion and inform the respective authorities as well as disable use of the Client’s Trading account furthermore.
The Operator reserves the right to block access to the Client’s Trading account for the required time in the following cases:
1. The Operator discovers Client’s violation of the Terms and conditions or any dubious activity on the Trading account of a Client or a Client does not carry out the compulsory verification of the account.
2. There was an attempt to obtain unauthorized access to the Exchange of the Operator by surmounting software security restricting the use or protecting the content.
3. Non-realized or false payments for services provided by the Operator to the Client as well as in relation to other Clients using the Exchange.
4. Emergency of unexpected operational difficulties, including repairs, modifications and updates of the software of the Exchange.
5. Decisions of a court, the prosecutor’s office, the police, government and administration as well as other authorities that have the jurisdiction to order the Operator thusly.
5. CLIENT´S ACCOUNT VERIFICATION
Right after user creates an account, he won’t be able to make a deal or a transaction until he become a verified client. To become a verified user, it is necessary to provide us with a copy of your personal documents. Documents will be personally verified by entrusted employees of the stock exchange BitStock.
What documents are needed?
In order to make a client verification, we have to authenticate bank account, personal data and permanent address of the user.
For verification of a bank account is necessary to send a copy or a screenshot of an account statement, important are personal data about a bank account owner – balances and movements of the bank account can be blackened.
Verification of personal data and permanent address is performed by verifying proof of identity (ID or passport) and by another document issued by the state authority (driving license or birth certificate).
If documents do not contain address it is needful to upload certificate issued by a state authority which contain your name and permanent address (e.g. listing from Czech Social Security Administration – OSSZ, a letter from the tax office, etc.). It is not acceptable to proof client’s address with invoice for gas, electricity or any other invoice or bill.
Copies of documents must be uploaded in an appropriate quality to be easily readable and Client can be identified. Documents must be valid.
To identify legal persons, we require the same documents from individuals who act as a legal entity. In a case of any doubt we reserve a right to make further checks.
How does identity verification work?
Client applies for identity verification in an account administration in a section „Verification“. In the section is a field for uploading a copy of the document (ID or passport). Client verification is done manually, after verification of provided data and check whether documents are readable, Client is considered as a verified client. Thereafter Client can freely trade and make transaction at BitStock exchange. Client will be informed about results of verification via email. If there were deposits of funds which crediting to account have been delayed, the funds will be automatically credited to the client’s account.
For client’s bank accounts apply following rules:
Client can use only that bank account which is registered at BitStock exchange. Deposit of funds from non-registered bank account won’t be credited to client’s account at BitStock exchange as deposits are made without variable symbol and system won’t be able to match transaction with Client.
Name of client’s account must contain first name and surname of Client as it is stated in the bank account. In a case of legal entity an account name must contain its name.
At first deposit of funds from a new account the transfer must contain a message for recipient: I buy bitcoin at bitstock.
How do we ensure a protection of entrusted documents? After uploading of a copy of your personal documents, documents will be immediately encrypted and safely stored. We are duly registered with the Office for Personal Data Protection under registration number 00051458 (for more info click here).
We are therefore obliged by law (Act No. 101/2000 Coll., Personal data protection) to protect entrusted documents against theft and unauthorized access.
Why is the verifying procedure necessary? Verification of the client’s identity including statement whether Client is or is not politically exposed person (PEP), is required by law 253/2008 Sb. “about certain measures against the legalization of proceeds from crime and terrorist financing” (for more info click here).
Stock exchange Provider is the liable entity by the law mentioned above. Digital currencies are popular for legalization of earnings from criminal activity and are easy to exploit. Due to these reasons stock exchange Provider is liable to abide all the provisions of the Act and follow up the Act. Client’s verification means for stock exchange Provider that he is able based on request of the competent authorities prove client’s identity.
Currently, if someone is selling or allows sale of bitcoins to another party without having sufficient identity verification, then the person is exposing himself to a risk of being misused as an intermediary for transferring of earnings from criminal activity to bitcoins which can result in blocking bank account and investigation by the police.
Verification of Client as a legal entity Client makes registration on behalf of legal entity. Registration can be done only by person who is authorized to act in the name of the entity. Subsequently, registration of authorized person will be done as for individuals according the article above.
6. LIMITED TRANSACTIONS
Client is aware that Provider of stock exchange BitStock, company Digital Finance Services, s.r.o. is entitled to establish volume limits (for one transaction or sum of transactions) or limit a transaction volume of one Client, group of Clients or limit transaction volume for specific wallet with virtual currency without previous notice. Client will learn about application of such a restriction in a way that stock exchange BitStock will not perform the requested transaction by Client. Provider applies this procedure in accordance with the provisions of the ban on carry trade according to § 15 para. 1 point. b) Act no. 253/2008 Coll. as amended.
Client further agrees to use solely own funds, eventually virtual currency belonging to Client and not using funds belonging to other persons (natural or legal person).
Furthermore, Client commits that he/she will not misuse services of the company Digital Financial Services, s.r.o.
to transfer assets from or to countries which are considered from the viewpoint of prevention of money laundering or financing of terrorism as risky or high risky; a list of the countries is published and updated by organization FATF-GAFI through a website
o transfer assets to a person or from a person who has origin in a risky or highly risky country as stated above; by origin is meant:
for natural person, each state in which is the person citizen and at the same time all other countries where is the person registered for permanent residence or another residence
for natural person, each state in which is the person citizen and at the same time all other countries where is the person registered for permanent residence or another residence
Client commits to pay damages and costs of company Digital Financial Services, s.r.o. or fines imposed in administrative proceedings conducted by the supervisory authorities, if damages, costs or fines will occur as a result of violation of any provision of these Terms and Conditions by Client or by circumvention of Terms and Conditions, especially by splitting a transaction to many smaller transactions and by using more virtual currency wallets than necessary on purpose.
For a conversion of currencies other than EUR to convert them to EUR will be used exchange rate published by the Czech National Bank for the current day of trading. For conversion of virtual currency to fiat currency EUR will be used exchange rate of BitStock exchange at the time of trade (transaction) execution, rate is usual on major exchanges trading with this virtual currency.
7. TERMINATION OF ACTIVITY
The Client is entitled to close the account at his/her discretion. Provided a Client decides to close his/her account, the Operator disables access to the Client’s account, which however may not be carried out until all the Client’s liabilities towards both the Operator and other Clients, whom the Client has traded on the Exchange of the Operator, are fully met. After meeting all liabilities all remaining finances of the Client will be transferred to the Client’s bank account, which they were originally credited from.
The Operator reserves the right to close accounts, which have not been accessed by the Client for longer than 6 months after their opening or through which no transaction has been processed by the Client via the Exchange for longer than 12 months.
8. TRADING RULES
The Operator provides brokering of Digital currencies using Pairing orders. A Pairing order are two orders, which comply with the following rules:
a. One order from the pair is a sell order and the other is a buy order.
b. Both orders are set for the same Digital currency.
c. It applies that the buying limit price is greater or equal to the selling limit price.
d. Both orders have adequate minimum amount for realization. It therefore applies that the minimum amount for realization of any order is smaller or equal to the amount of the other order.
There exist two types of Pairing orders. Direct Pairing orders and Favorable Pairing orders.
Orders are Direct Pairing orders if they are pairing orders and just one of the pair is a Direct Pairing order.
Orders are Favorable Pairing orders if at the same time applies that:
a. They are not Direct Pairing orders.
b. They are pairing orders and at the same time there does not exist another order for any order of the pair, which is feasible to pair with and is simultaneously more favorable in terms of price than the other order from the given pair. An order is more favorable in terms of price if it has lower price in case of a buy order and higher price in case of a sell order.
Favorable Pairing orders always originate as a direct reaction to a level in the Depth of the market or they may originate by issuing a new order to buy or sell bitcoins where at the same time such an order is not a Direct Pairing order.
Buying digital currency on the Exchange of the Operator is when the Client has issued a buy order, which has been directly or favorably paired to a sell order in arbitrary time interval from the moment it was issued. It applies that this time interval is shorter or equal to the order’s expiration time.
Selling digital currency on the Exchange of the Operator is when the Client has issued a sell order, which has been directly or favorably paired to a buy order in arbitrary time interval from the moment it was issued. It applies that this time interval is shorter or equal to the order’s expiration time.
In case the buyer buys digital currency on the Exchange of the Operator, the adequate amount is not written off the Trading account immediately but it is temporarily blocked. As soon as the seller meets his/her liability, the amount on the buyer’s account is unblocked and transferred to the Trading account of the seller. Next, the advance of the seller for the trade is unblocked. After trade’s validity verification the fee for processing the trade is subtracted to the benefit of the Operator. The amount of the fee is given in the "fee table" located on the following address: https://www.bitstock.com/info/info#fees
The seller is obliged to meet his/her liabilities towards the buyer in such a way that the required amount of the digital currency comes into ownership of the buyer within 24 hours. Provided it has not been realized, the Operator is entitled to impose a contractual fine amounting the seller’s blocked amount known also as the Advance for selling bitcoins. In such case the finances of the buyer are unblocked and he/she receives a part of the Advance for selling bitcoins. The seller is fined only to such extent, which directly corresponds to the amount of unsent bitcoins, if for instance the seller sends to the buyer a half of required bitcoins, the amount of the fine set by the Advance for selling bitcoins decreased only just to one half.
The basic amount of the Advance for selling bitcoins for the seller (hereinafter referred to as "Basic advance for selling bitcoins") is a given by the "fee table" here: https://www.bitstock.com/info/info#fees. The current amount of the Advance for selling bitcoins is further calculated dynamically for the sellers, who on the Exchange completed at least 5 trades, where the seller sold bitcoins to a buyer. With these sellers the last 5 trades (sales of bitcoins) of a seller are always checked and if in these trades there has been recorded not sending of merely a part of the required amount (the trades have been thwarted), the amount of the Advance for selling bitcoins will automatically be increased by 30 EUR compared to the amount of the Basic advance for selling bitcoins per each thusly prevented trade, the limit is eventually the advance amounting in total 150 EUR/1BTC. The buyer will receive 70% of the amount of the Basic advance for selling bitcoins as the compensation. The Operator will receive 30 % of the amount of the Basic advance for selling bitcoins and the total mount of the Advance for selling bitkocins, which is calculated from the history of trades as stated in this paragraph.
In case the trade has still not been completed on the Exchange and thus there is a threat of a sanction imposition on the Seller although the Seller has completed the trade and is aware of this matter he is obliged to inform the Operator about the matter. Provided that the Seller does not inform the Operator at least one hour prior to the expiration time of the trade, the Operator does not guarantee any loss on part of the seller.
Provided that the buyer has received digital currency on the basis of a completed trade but due to a technical or other type of error the result was the cancellation of the trade and crediting the finances originally designated for payments within the existing trade back to the buyer, the buyer is obliged to contact the Operator and leave these finances on his/her trading account until the situation is resolved. If the buyer tries to use these finances to complete another trade or withdraw them directly, such an action will be considered a transgression in case the amount of the damage is lower than 200 EUR. Otherwise it is considered a criminal offence under the Act 40/2009 Sb., Czech Republic.
The Operator does not in any case guarantee that the buyer or the seller finds a suitable offer to sell or to buy.
The Operator is not responsible for digital currency Exchange, which is carried out among the clients. The risk is merely on the side of the clients. The seller is responsible for correct transfer and the buyer is responsible for his/her data to be true and valid. The Operator here acts merely as an arbiter, who oversees proper meeting of liabilities and reserves the right to fine clients in case of not meeting their obligations.
In case the seller transfers the digital currency to an incorrect address either inadvertently or deliberately, such a liability is considered unmet. In such case the seller is obliged to send the digital currency again or he/she is fined for not meeting the liability. Damage claims may be requested only from the owner of the target address, where he/she inadvertently transferred the digital currency. Furthermore, the Operator is not responsible for any transfer errors caused by the peer to peer networks of third parties, which mediate digital currency transactions.
The Operator guarantees that the sale and buy offers, which are listed on the Exchange, are up-to-date and are being placed by actual and verified clients.
The Operator reserves the right to be able to verify the trades of a client at any time in case of a suspicion of Rigging the prices. Provided that it has been proven that such rigging actually occurred, the Operator reserves the right to block the client’s account and bestow a financial fine on the client, whose extent will depend upon the level of the damage caused.
9. CLIENT´S DECLARATION
By agreeing to the Terms and Conditions, Client also declares that he/she decided to use BitStock exchange due to one or all of reasons listed below:
evaluation of its assets and speculation
Bitcoin purchases from other persons and subsequent conversion to fiat currencies
Bitcoin purchases and subsequent payment for purchasing of goods or services in virtual currency Bitcoin
fiat currency conversion to virtual currency Bitcoin
Client agrees if none of the reasons stated above do not match client’s interest to use BitStock exchange, Client must immediately communicate the specific reason for using this service.
Client is aware that Provider in accordance with provision of the Act No. 253/2008 Coll. as amended is obligatory to examine the sources of funds or other property that applies to transactions made on the stock exchange Bitstock.
In accordance with above mentioned commitments, Client declares the source of funds or property is one of the listed sources:
income from business or employment
income from the sale of other property
Client agrees if none of the sources of funds or property stated above do not reflect reality, Client must immediately communicate the specific source of funds or property. Provider is entitled to contact Client and ask Client to add obtained information and documents.
10. FINANCIAL CONSULTING
The Operator does not provide any investment services or any other type or character of consultancy. Any information, which is provided by the Operator to the Clients on the Exchange, are not intended to be an advice or a recommendation of any sort.
Each and every decision to buy or sell digital currency is the client’s decision and the Operator does not bear any responsibility for potential property losses and damages caused to the clients.
11. OMEZENÍ ODPOVĚDNOSTI
The client is aware that the Operator is not responsible for damages, profit loss, income loss, business loss, data loss, any indirect or resulting loss caused by negligence or illegal deliberate conduct of Clients and third parties and also if the Client violates his/her obligations set by these Terms and conditions. Furthermore, the Operator is not responsible for damages caused by a fault or an intent of third parties.
The Operator is not responsible for damages or detriments caused by force majeure and for damages, which were caused by the decisions of a court, the prosecutor’s office, the police, government and administration as well as other authorities that have the jurisdiction over the Operator, just as for the damages and detriments caused to the Clients by changes of legislation and Terms and conditions.
Any complaint the client is entitled to apply either in person at the Client Centre on at Elizabeth Peškové 1, Prague 5, or by phone at +420 270 007 477, and in MCC working hours Mon - Fri 10:00-19:00 pm.
In view of the fact that e-mail communication is not secure, the Operator is not responsible for damage incurred as a result of its abuse.
12. RESERVED RIGHTS OF THE OPERATOR
The Operator is entitled to terminate operation of the Exchange according to his decision. The clients will be informed about a termination of the Exchange by e-mail. In such a case the Operator is obliged to complete ongoing trades and settle mutual liabilities between him and the clients. After the settlement the Operator is further obliged to transfer all finances, which he administered, to the bank accounts of the clients after subtraction of all liabilities towards the Operator within 30 calendar days the latest.
Unless stated otherwise, all web content on the Exchange of the Operator is a sole property of the Operator and is protected by copyright and other applicable laws and regulations. Software, texts, images, graphics, charts and graphs used on the website of the Exchange are the property of the Operaotr. The content must not be copied, reproduced, modified, transferred or distributed in any form or by any means. Any use of the content without provable consent of the Operator is a violation of copyright.
13. MODIFICATION OF TERMS AND CONDITIONS
The Operator reserves the right to modify, add or remove any provision from these Terms and conditions (hereinafter referred to as "Change of Terms and conditions") at his discretion and the Clients must be informed about the change of Terms and conditions in advance via e-mail. For legal relations between the Client and the Operator the version of the Terms and conditions valid on the day of the order issue is always decisive.
If the Client decides to continue in use of the Exchange of the Operator even after a Change of Terms and conditions, the Client confirms that he/she is informed and agrees to them. It is the Client’s responsibility to act according to the new Terms and conditions.
14. DECISIVE RIGHT
These Terms and conditions comply with and are put into effect in accordance with the legislation of the Czech Republic.