The xBTC Service offers a mechanism for users to wrap and unwrap Bitcoin (BTC) across different blockchain networks. This agreement outlines the terms governing your use of this service, your rights, and the associated risks.
Understanding the xBTC Service
The xBTC Service (the "Service") is provided by OKX, allowing eligible users to subscribe for and redeem a wrapped Bitcoin asset known as xBTC. By using this Service, you enter into a binding agreement with OKX and confirm that you have read, understood, and accepted all the terms set forth herein.
In the event of any conflict between this Agreement and the OKX Terms of Service, the provisions of this Agreement shall take precedence. All other provisions of the OKX Terms of Service not modified here remain in full effect.
Eligibility and User Responsibilities
Who Can Use the Service?
The Service is not available to all users or in all jurisdictions. OKX reserves the sole right to determine eligibility, which may require maintaining an OKX account in good standing and passing Know Your Customer (KYC) requirements.
Your Confirmations and Agreements
By using the Service, you understand and confirm that:
- You are eligible to use OKX services and are bound by this Agreement.
- You possess the necessary experience and risk tolerance for investing in non-guaranteed digital asset products.
- Your use of the Service complies with the laws of your country or region.
- You are the legal owner of all digital assets in your OKX account, and their sources are legitimate.
You further agree that you will not use the Service for any prohibited businesses or illegal activities, including money laundering, terrorist financing, fraud, or any form of market manipulation.
How the xBTC Service Works
Subscribing for xBTC
Subscription occurs when you withdraw BTC from your OKX account to a supported blockchain wallet address. This action triggers a smart contract to mint xBTC. By subscribing, you acknowledge that:
- xBTC is an on-chain asset and cannot be held in your OKX account.
- Subscriptions may not be instantaneous and can be delayed, rejected, or failed at OKX's discretion.
- xBTC is not available for spot or derivatives trading on the OKX Platform.
- Selling, transferring, or otherwise disposing of xBTC may also dispose of your underlying BTC and redemption rights.
👉 Explore more about the subscription process
Redeeming xBTC
Redemption is the process of converting xBTC back to BTC. This is done by depositing xBTC into your OKX account. By redeeming, you acknowledge that:
- Redemptions may not be instantaneous and can be delayed, rejected, or failed.
- While OKX endeavors a 1:1 redemption ratio, this ratio may diverge on other platforms, for which OKX is not responsible.
- The underlying BTC held by OKX is subject to risks, and in the event of a shortfall, redemptions may be proportional.
The Nature and Risks of xBTC
xBTC is a digital asset minted and burned via a smart contract. It is subject to significant technological risks, including smart contract vulnerabilities, hacking, and unforeseen actions on supported blockchains.
Key specific risks include:
- Loss of Access: Delays or failures in subscription or redemption may temporarily prevent access to your assets.
- No Value Guarantee: OKX does not guarantee the value of the underlying BTC or the market value/liquidity of xBTC on other platforms.
- Third-Party Risk: The performance of third-party software or technology that interacts with xBTC is not guaranteed.
- Regulatory Risk: Regulatory changes may impact OKX's ability to offer the Service.
- Illicit Activity Risk: xBTC associated with fraud, sanctions, or illegal activity may be burned without notice, nullifying redemption rights.
- Service Discontinuation: OKX may suspend or cease the Service at any time at its sole discretion.
Fees and Pricing
OKX may charge a fee for withdrawing BTC from the platform, which will be displayed at the time of your request. No other fees are charged for the subscription or redemption process itself. You agree that all digital asset prices and exchange rates are solely determined and published by OKX.
Account Suspension and Service Termination
OKX may suspend, cancel, or terminate your access to the Service at its sole discretion. Common reasons include failure to provide requested identity verification information, court orders, compliance with applicable laws, or providing inaccurate information.
In the event of a termination of the Service, OKX will continue to permit redemptions subject to the terms of this Agreement.
User Representations and Liability
Your Warranties
You represent and warrant that:
- The source of your BTC and xBTC is legal and its ownership is undisputed.
- The assets are not subject to any litigation, preservation, or judicial freeze.
- You will not infringe on OKX's rights and are not on any sanctions list.
Limitation of Liability and Risk Disclosure
THE SERVICE IS PROVIDED ON AN "AS IS" AND "AS AVAILABLE" BASIS. OKX MAKES NO WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.
You expressly agree that you use the Service at your own risk. Digital assets are highly volatile and involve market risk, smart contract risk, liquidity risk, and legal risk, among others. You are solely responsible for all trading and non-trading activities and any resulting gains or losses.
OKX shall not be liable for losses arising from:
- Your misunderstanding of this Agreement.
- Service interruptions due to maintenance, hacker attacks, telecom failures, force majeure events, or other technical difficulties.
- Changes in software protocols underlying digital assets.
- Market volatility or operational challenges.
Frequently Asked Questions
What is xBTC?
xBTC is a wrapped Bitcoin representation minted on supported blockchains through a smart contract developed by OKX. It allows BTC to be used on networks beyond its native blockchain. It is minted upon subscription and burned upon redemption.
How do I convert my BTC to xBTC?
You can subscribe for xBTC by initiating a withdrawal of BTC from your OKX account to a supported blockchain wallet address. The platform's smart contract will then mint the equivalent amount of xBTC, which will be sent to your provided wallet.
What are the biggest risks of using the xBTC service?
The primary risks include smart contract failure, hacking, price volatility of the underlying BTC, lack of liquidity for xBTC on external platforms, potential service suspension by OKX, and regulatory changes that could impact the service's availability.
Can OKX terminate the xBTC service?
Yes, OKX reserves the right to suspend or terminate the Service at any time at its sole discretion. In such an event, the company will typically continue to allow users to redeem their xBTC for a period, subject to the terms of this agreement.
What happens if the smart contract has a problem?
xBTC relies on the integrity and security of its underlying smart contract. If the contract is manipulated, hacked, or fails due to an unforeseen flaw, it could lead to a partial or total loss of your xBTC. OKX accepts no liability for such technological risks.
Is there a fee for using the xBTC service?
OKX may charge a network fee for the initial withdrawal of BTC from its platform. However, there are no additional subscription or redemption fees for the wrapping and unwrapping process itself. Always check the fee schedule before completing a transaction.
Indemnification and Miscellaneous Terms
You agree to indemnify and hold harmless OKX, its affiliates, and their directors and employees from any claims or losses arising from your use of the Service or violation of this Agreement.
OKX reserves the right to modify this Agreement at any time. Continued use of the Service after changes are posted constitutes acceptance of those changes. This Agreement is governed by the laws of England and Wales. Any disputes will first be referred to mediation in Hong Kong, and if unresolved, will be settled by binding arbitration in Hong Kong.
You may not transfer your rights under this Agreement without OKX's prior written consent. OKX may transfer its rights upon serving notice to you. The headings in this Agreement are for convenience only and do not affect its interpretation. OKX has the sole and final discretion to interpret this Agreement.