What is a Position Limit?  

A position limit defines the maximum number of virtual assets (“VA”s) you are allowed to hold in all your accounts (e.g. custody account, trading account & etc.). This is to ensure the exposure to VAs is reasonable according to your profile.  

You may check your position limit in the “Account Overview” page under “Account limits & fee”.   

How is the position limit calculated?  

Except for institutional professional investors (“PI”s) and qualified corporate PIs, your initial position limit is calculated based on your investment risk tolerance, financial situation (e.g. your liquid asset, net worth investment capital and exposure to VAs) and personal circumstances (e.g. your investment objectives and experience). The position limit will be reviewed regularly to ensure it remains appropriate.  

For institutional PIs and qualified corporate PIs, your initial position limit would mainly be calculated based on your financial situation (i.e. your liquid asset).  

What constitutes as position limit usage?  

The position limit usage of your account will be updated promptly and calculated in notional value (USD) based on the reference price* of the VAs. The below constitute the position limit usage:  

1. VAs held in your accounts on our platform  
2. Outstanding orders to buy VAs with fiat, both on-platform and off-platform (for the avoidance of doubt, this excludes VA/VA trading).  

*Refers to 1) last trade price on our platform; or 2) average of the last trade price of large external exchanges if 1) is not available or has not been updated for > 10 seconds.  

What happens if the position limit is breached?  

You will not be able to place new orders to buy VA with fiat until the position limit breach has been resolved.   

For the avoidance of doubt, VA/VA pair and selling of VA for fiat will not be restricted.  

You may resolve the breach of position limit through the actions below:  

1. Selling of VAs in your accounts (for the avoidance of doubt, this excludes VA/VA trading)  
2. Withdrawing your VAs from your Custody Account.  
3. Request for position limit increase  

How do I request for a position limit increase?  

You may contact our Customer Support Team to request for a position limit increase. You will be requested to submit some relevant information / documents as a supporting for the request.   

Additional Notes  

• Risk Factor Statement: Virtual assets are highly volatile and involve significant risks. Position and trading limits may not fully protect against losses, please ensure you understand the relevant risks.  

• Regulatory Compliance: As an SFC-licensed platform, we adhere to strict standards under Hong Kong laws and regulations, including the Anti-Money Laundering and Counter-Terrorist Financing Ordinance.  

• Data Privacy: Personal and financial information you provide is protected under the Personal Data (Privacy) Ordinance (Cap. 486) and our privacy policy.  

For further assistance, contact our Customer Support Team at cs@ex.io