Client Assets Custody Services Statement
【Updated as at 17 June 2020】
Virtual assets transactions are highly risky and therefore not suitable for the vast majority of people. You acknowledge and understand that investments in virtual assets may result in partial or total loss of your investment and therefore you are advised to decide the amount of your investment on the basis of your loss-bearing capacity. You acknowledge and understand that accordingly you are a sophisticated and professional investor and if you are in any doubt, you have sought assistance from your own independent advisers (financial, tax, accounting or legal).
In addition, as the virtual assets market is relatively new, there may be unforeseen or unpredictable risks. You are advised to carefully consider and use clear judgment to assess your own financial position (with full appreciation and acceptance of the risks) before making any decisions to be involved in any virtual assets transaction. Any and all losses arising therefrom will be borne solely by you and we shall not be held liable in any manner whatsoever or howsoever caused.
HKSTOX Limited (the “Company”), a company incorporated in Hong Kong under the laws of Hong Kong, shall operate the website apx.hk, a platform dedicated to the custody and transaction of virtual assets and the provision of related services (the “Website” or “Services”).
1. Virtual Assets’ Custody and Settlement
The HKSTOX Limited shall provide custodial service to users’ assets through its affiliate called “HKSTOX Finance Limited” (the “Custodian”), which is also incorporated in Hong Kong. The Custodian is a trust or corporate service provider (“TCSP”) company which has received a TCSP licence from the Hong Kong Companies Registry. Having a separate and independent Custodian provides users with added comfort, security and peace of mind that users’ virtual assets are held by a third party and not by the Company itself.
When opening an account on or through the Website, users shall open accounts on the Company’s service called “HKSTOX Finance Custody”, which is a custodial account service holding and safekeeping users’ virtual assets.
When using the Website/ Services of the Company, users shall be deemed to have understood and agreed that:
- their virtual assets are deposited with and managed by the Custodian independently of the Company
- the Company shall share users ‘personal information with the Custodian only for the limited purposes of customer verification and proper commercial purposes
- the Company shall also be required to open a custody account with the Custodian, to hold the Company’s own virtual assets (representing fees/ commissions). Except using the Company’s virtual or other assets in such Custodian account for proper commercial purposes (eg settling platform trading and other fees, bounty release, and settlement of marketing activity funds), the Company shall not be involved in the trading/ buying/ selling or other market activity of virtual assets
- users’ virtual assets are segregated and kept separate from all other users’ virtual assets
- the Company is not able to obtain access, custody or use of users’ virtual assets held by the Custodian for or on behalf of users (including without limitation, for lien, pledge, collateral, on-lending, marketing, trading or other improper commercial purposes)
The Custodian shall use isolated hot and cold wallets, to store users’ virtual assets. Ninety-eight (98%) of users’ virtual assets will be stored in a secure cold wallet that is continuously upgraded, and the rest will be stored in a secure hot wallet to meet users’ needs for liquidity purposes.
- Fiat Assets’ Custody and Settlement
In addition to virtual asset accounts, the Custodian shall also manage users’ fiat assets and shall create fiat sub-accounts for users which shall allow users to deposit and/ or withdraw fiat from their fiat account. Such fiat assets held by the Custodian shall be created by the Custodian with Bank of Communication (Hong Kong) Limited, with an office at 20 Pedder Street, Central, Hong Kong.
2.1 Procedure for Deposits of Fiat Assets from the Users’ Custodian Accounts
The Website/ Service shall only currently allow and accept fiat currency in USD.
The Custodian shall accept a users’ telegraphic or wire transfer (“TT”) or direct deposit to the Custodian’s bank account (at any branch) of the relevant fiat asset/ currency only via the Custodian’s bank account, which shall be made available to users after a user’s account has been successfully verified and a valid user account registered with the Website.
Following such transfer or direct deposit, the user must take a screenshot of the transfer or deposit receipt or confirmation and upload to via the Website, which clearly shows the user’s full name, bank account details and the exact full amount. Any of the relevant information which is missing may cause delays for the crediting of the users’ account by the Custodian.
The cut-off time for an user to request a fiat asset deposit is 3 pm Hong Kong time from Monday to Friday. Any deposit requests submitted after 3 pm or on a weekend (or public holiday) shall be processed in the next business day.
After having verified the actual fiat assets received and confirmed by the receipt/ confirmation, the Custodian shall credit the users’ account.
Under no circumstances shall the Website or Custodian accept any direct cash deposit or any third-party deposit/ transfers (e.g. deposits or transfers from the person who are unknown or un-verified by the Custodian or the Company)
2.2 Procedure for Withdraws of Fiat Assets from the Users’ Custodian Accounts
In cases where a user is requesting to withdrawal fiat assets from its Custodian, the Custodian shall check the users’ available balance as the user’s request for withdrawal.
The cut-off time for an user to request a fiat asset withdrawal is 12 pm Hong Kong time from Monday to Friday. Any withdrawal requests submitted after 12 pm or on a weekend (or public holiday) shall be processed in the next business day.
The estimated time of the arrival of the fiat assets in the user’s bank account shall vary depending on bank processing speed and the inter-bank market protocols (which are beyond the control of the Company, Custodian and Website, and for which none of them shall be responsible for). However, typically such withdrawal requests shall be completed and arrived in the user’s Hong Kong bank account after five (5) business days, with international bank transfers potentially taking a little longer.
All withdrawals shall only be to a target receiving bank account which is the same bank account which was originally registered with the Website upon the users’ registration, screening and verification. The Website, the Company and the Custodian all respectively reserve their right to not process any withdrawals, withdrawal requests or similar requests, unless the conditions of this paragraph have been satisfied in full at the sole satisfaction of any of those parties.
The Custodian, Website and the Company shall also not be responsible for any losses or liabilities as a result of any foreign currency conversions, exchange rate fees, taxes, withholding, restrictions which are payable by the user in respect of the receipt of such fiat asset withdrawal requests.
The Custodian also does not accept any withdrawal request or instruction to pay or transfer any fiat assets to a third party or third party account, irrespective of any relationship with or to the user.