6. Safeguarding Measures
Safeguarding Arrangements
Upon receipt of your Relevant Money by XREX, your Relevant Money shall be deposited and held by XREX in separate designated Safeguarding Account maintained by XREX with banks or other duly licensed financial institutions (each a “Safeguarding Institution”) by no later than the next Business Day following such receipt.
Upon receipt of your DPTs by XREX, your DPTs shall be deposited and held by XREX in separate designated Trust Account maintained with XREX and/or such other person that is appointed by XREX to safeguard your DPTs in accordance with Applicable Laws (“Safeguarding Person”).
Your Funds deposited in the Safeguarding Account and Trust Account will be held on trust by XREX on behalf of you and are segregated and maintained separately from XREX’s own corporate funds. Subject to the Applicable Laws, all assets deposited in the Safeguarding Account and the Trust Account cannot be used for the payment of the debts of XREX and are not liable to be taken under or pursuant to an enforcement order or a process of any court. However, you should be aware that XREX may exercise its right of set off against your Funds held on your behalf. If the Safeguarding Institution or the Safeguarding Person becomes insolvent, you may not be able to recover any of your Funds if the assets are insufficient to satisfy the claims of its creditors or it may take a long time for you to recover your Funds as the process of liquidation and the distribution of proceeds could take a long time.
Your Funds in the Safeguarding Account and the Trust Account are commingled and pooled with the Funds received from other users and are exposed to losses or shortfalls in the pooled funds. Any interest earned from your Funds maintained in the Safeguarding Account and the Trust Account are payable to XREX and will not accrue to you. In the event of any misappropriation of Funds in the Safeguarding Account and the Trust Account, you may suffer loss of your Funds. XREX shall not be responsible or liable to you or any other person or entity for any losses incurred by you in connection with any insolvency and/or default by any Safeguarding Institution and its representatives, except that the foregoing shall not exclude any liability in respect of any losses that are caused directly by fraud or negligence by XREX (as adjudged in a final, non-appealable decision of a court of competent jurisdiction or binding arbitration proceeding). You acknowledge that in the event that there are any outstanding amounts owed by you to XREX as designated by XREX (if any) (“Owed Amounts”), your Funds held in the Safeguarding Account and the Trust Account may be used to top up or cover for the Owed Amounts. In the event that the Safeguarding Account or the Trust Account is maintained with a Safeguarding Institution outside Singapore, you acknowledge that the laws and practices relating to Safeguarding Account and the Trust Account in the jurisdiction under which the Safeguarding Institution and the Trust Account is licensed, registered or authorised in may be different from the laws and practices in Singapore relating to the Safeguarding Account and the Trust Account (as the case may be). These differences may include, but are not limited to, varying requirements for segregation of assets, custodial arrangements, and any such differences may affect your ability to recover the Funds deposited in the Safeguarding Account and the Trust Account. The level of protection and recourse available to you may not be equivalent to that provided under Singapore’s laws and regulations governing the Safeguarding Account and the Trust Account.
In the event where your Funds are commingled with other users of XREX’s services, there is a risk that your interest may not be identifiable by separate physical documents or electronic records kept by XREX and it may be difficult to identify or earmark your Funds from those of other users. Nevertheless, XREX shall maintain records of your interest in the assets that have been commingled.
In order to provide sufficient safeguarding measures to your Funds, XREX shall not permit any withdrawal of your Funds from the Safeguarding Account and the Trust Account from any third parties that is not registered under your account, unless a validly executed authorisation letter has been provided to XREX. XREX shall ensure that each Safeguarding Institution and Safeguarding Person complies with the same.
In the event that you are of the view that it has incurred losses due to XREX’s fraud or negligence, you shall provide a written report containing full details of such losses. You should also comply with mitigation measures set out in Paragraph 1.4.b. Upon receiving the written report, XREX shall conduct an investigation into your claims. You agree to provide all information and/or documentation which XREX may request for in order for XREX to conduct its investigation. Such information could include a comprehensive account of the incidents, the documentations and records reflecting losses suffered, personal identification number and your bank account information for the purposes of identity verification, and such other information that XREX may reasonably require. XREX shall compensate you for any loss of Funds arising from any fraud or negligence on the part of XREX, as XREX may determine in its sole and absolute discretion or as may be adjudged in a final, non-appealable decision of a court of competent jurisdiction or binding arbitration proceeding, in accordance with the Safeguarding Institution’s policies or insurance schemes.
XREX shall comply with all recordkeeping obligations under any written law as applicable and ensure each Safeguarding Institution complies with the same. XREX shall also notify you should there be any fees and costs for the safeguarding of your Funds.
XREX maintains and stores a minority portion of customer assets in the settlement wallet, which are used as ready liquidity for daily trading, withdrawal and other transactional activity. This minority proportion of customer assets will be maintained by rebalancing to a specific target percentage that complies with Applicable Laws. Assets are managed between the settlement wallet and vault storage systems to ensure that we have the minimum amount of funds in the settlement wallet required to facilitate the immediate liquidity needs of our customers.
To mitigate the risk of loss of customer assets due to cyber attacks, XREX takes extensive security measures to protect your assets, including strategically storing a vast majority of assets offline in secure, guarded vault storage facilities that are not connected to the internet so that they are more resistant to threats. In addition, all settlement wallet private keys are stored in an isolated, dedicated service, in an encrypted format.
XREX shall inform you of any rights or entitlements (if any) arising from your Funds held within the Safeguarding Institution, or any information relating your Funds. The information in this Section shall be detailed to you via electronic messaging or email.
XREX shall provide you with your monthly statement of account with the following particulars:
transactions to purchase or sell assets entered into by you and the price at which the transactions are entered into;
the status of every asset in XREX’s custody held on behalf of you, including any asset deposited with the Safeguarding Institution;
the movement of each of your asset, the date of and reasons for such movement, and the amount of the asset involved;
the movement and balance of relevant money received from, or on account of, you in respect of the provision of XREX’s services; and
a detailed account of all financial charges and credits to your account during the monthly statement period, unless the detailed account of financial charges and credits has been included in any contract note or tax invoice issued by XREX to you.
XREX shall also provide you with your statement of account as soon as practicable upon your written request. However, Section 6.11 shall not apply if:
there is no change to any of those particulars since the date on which the last statement of account was made up to;
XREX has made available to you, on a real-time basis, those particulars in the form of electronic records stored on an electronic facility and you have consented to those particulars being made available to you in this manner; or
you requested, in writing, not to receive the statement of account on a monthly basis from XREX.
You confirm and agree, in including for the benefit of the Safeguarding Institution(s) that:
the Safeguarding Account arrangements do not result in you being a party to any agreement with the Safeguarding Institution(s), and you will have no right to enjoy or enforce any benefit under such agreement;
the Safeguarding Institution(s) does not owe any obligation to you and you have no right to claim against the Safeguarding Institution(s) in relation to any services provided by the Safeguarding Institution(s) to XREX,
and your rights and obligations (if any) in relation to any services provided by XREX to you are exclusively against or to XREX only, and not against or to the Safeguarding Institution(s).
XREX reserves the right to impose and/or modify any fees or costs associated with the safeguarding of your Funds. Such fees or costs shall be set out in the Fee Schedule, which can be found in the XREX Pay Help Center and may be periodically updated by us at our sole and absolute discretion. You agree to pay XREX the fees and costs by authorising us to deduct and/or debit your Funds for any such fees or costs. We reserve the right to change or modify our Fee Schedule, including increasing our fees in the Fee Schedule, in accordance with Paragraph 11.4. The updated Fee Schedule will apply prospectively to the relevant Services that take place following the effective date of such updated Fee Schedule.
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