The xBTC User Agreement outlines the terms and conditions governing your use of the xBTC service provided by OKX. This comprehensive guide ensures you understand how the service works, what risks are involved, and your responsibilities as a user.
Overview
The xBTC Service ("Service") is offered by OKX to eligible users who wish to subscribe for and redeem xBTC — a wrapped form of Bitcoin (BTC) designed for on-chain compatibility across supported blockchains. By using this service, you confirm that you have read, understood, and agreed to these Terms, which become legally binding upon your use of the Service.
This Agreement takes precedence over any conflicting terms in other OKX policies or documents unless explicitly stated otherwise. All undefined terms are governed by the broader OKX Terms of Service.
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Eligibility Requirements
To use the xBTC Service, you must meet specific eligibility criteria:
- Be an active OKX user with an account in good standing.
- Have completed Know Your Customer (KYC) verification.
- Reside in a jurisdiction where the Service is available.
- Comply with all applicable laws and regulations.
OKX reserves the right to determine eligibility at its sole discretion. You acknowledge that OKX may hold your digital assets during your participation in the Service and confirm that:
- You are legally permitted to use digital asset services.
- You possess the knowledge and risk tolerance necessary for non-guaranteed investments.
- You are the rightful owner of all assets in your account, with funds derived from legitimate sources.
- Your use of the Service does not violate local laws.
Additionally, you agree not to engage in prohibited activities such as money laundering, fraud, terrorist financing, or market manipulation.
You also accept that using the Service involves inherent risks, including:
- Volatility in digital asset prices leading to potential total loss.
- Technological disruptions affecting access to your assets.
- Market fluctuations impacting value.
- Changes to OKX’s policies or Terms without prior notice.
How the xBTC Service Works
Subscribing to xBTC
When you withdraw BTC from your OKX account to a supported blockchain address, you automatically subscribe to xBTC. This process involves wrapping your BTC into an on-chain token format compatible with external networks via an OKX-developed smart contract.
Key points about subscription:
- xBTC exists only on-chain and cannot be held within your OKX account.
- There may be delays between initiating withdrawal and receiving xBTC.
- OKX may reject or suspend subscriptions at any time without notice.
- Subscriptions are subject to compliance checks, including Travel Rule requirements.
- Once subscribed, xBTC can only be converted back to BTC through the official redemption process.
Transferring, selling, or staking xBTC may result in the loss of underlying BTC and redemption rights.
Redeeming xBTC
Redemption occurs when you deposit xBTC into your OKX account. Upon receipt, it is unwrapped back into standard BTC.
Important redemption details:
- Processing times may vary; instant conversion is not guaranteed.
- Redemption requests may be rejected or fail unexpectedly.
- While OKX aims for a 1:1 BTC redemption rate, discrepancies may occur on third-party platforms — OKX is not liable for such variances.
- If the total BTC held by OKX is less than the minted xBTC supply due to unforeseen events, redemptions will be processed proportionally.
Nature of xBTC
xBTC is an on-chain digital asset minted and burned via smart contracts. As such, it is exposed to technological risks including:
- Smart contract vulnerabilities.
- Hacking or unauthorized access.
- Limited or no trading market availability.
Although OKX strives to segregate user BTC used for subscriptions, it may pool these assets in omnibus accounts at its discretion. Applicable custody rules from the main OKX Terms apply.
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Specific Risks of Using xBTC
Beyond general digital asset risks, using xBTC comes with unique considerations:
- Processing Delays: Failed or delayed subscriptions/redemptions may temporarily lock your assets, potentially resulting in financial loss.
- No Value Guarantee: OKX does not guarantee the value of underlying BTC or liquidity of xBTC on external platforms.
- Security Risks: Like all digital assets, xBTC is vulnerable to theft, hacking, and fraud.
- Third-Party Dependencies: OKX does not control third-party software, tools, or blockchain networks interacting with xBTC.
- Regulatory Uncertainty: Changes in regulations could impact service availability.
- Burn Mechanism: xBTC linked to illicit activity (e.g., sanctioned addresses, stolen funds) may be burned without notice or recourse.
- No Third-Party Versions: OKX does not support unofficial or modified versions of xBTC.
- Service Discontinuation: OKX may suspend or terminate the Service at any time without warning.
Fees and Pricing
OKX may charge a fee for withdrawing BTC from the platform — this fee is displayed during transaction initiation. No additional fees apply for subscribing to or redeeming xBTC.
All digital asset prices and exchange rates are determined solely by OKX and are subject to change based on market conditions.
Suspension, Cancellation, or Termination
OKX has full discretion to suspend, cancel, or terminate the Service or your access at any time. Common reasons include:
- Failure to provide identity or fund source verification.
- Legal or regulatory obligations requiring action.
- Provision of inaccurate or outdated information.
- Breach of compliance requirements.
Even if the Service is terminated, redemption functionality will remain available under existing Terms.
User Representations and Warranties
You represent and warrant that:
- Your BTC and xBTC originate from legal sources and are free of disputes.
- These assets are not subject to litigation, liens, freezes, or enforcement actions.
- You will not infringe upon OKX’s rights.
- You are not listed on any government or international sanctions list.
- You will notify OKX immediately if any representation becomes invalid due to legal changes.
Failure to uphold these warranties allows OKX to cease service provision and seek indemnification for resulting losses.
Limitation of Liability
Risk Disclosure
Your use of the xBTC Service is entirely at your own risk. The Service is provided “as is” and “as available,” without warranties of any kind — express or implied — including merchantability, fitness for a purpose, accuracy, or reliability.
Some jurisdictions do not allow disclaimer of implied warranties; therefore, this exclusion may not apply to you.
Key disclaimers include:
- Digital asset values are highly volatile — significant losses can occur rapidly.
- OKX makes no guarantees regarding price stability, market conditions, or technology performance.
- Users bear full responsibility for their decisions and must conduct independent due diligence.
Operational Limitations
OKX is not liable for losses arising from:
- System maintenance or outages.
- Cyberattacks or technical failures.
- Force majeure events (e.g., natural disasters, war, government actions).
- Third-party errors or regulatory changes.
You accept that transaction failures may occur due to unforeseen technical challenges, and OKX bears no responsibility for resulting losses.
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Prohibited Activities and Account Controls
OKX strictly prohibits unfair trading practices. If you engage in:
- Market manipulation,
- Insider trading,
- Price distortion,
- Or any illegal activity,
OKX may restrict, suspend, or close your account at its discretion. It also reserves the right to cancel transactions to protect market integrity. No liability is assumed for losses incurred due to these protective measures.
Indemnification
You agree to indemnify and hold harmless OKX, its affiliates, directors, officers, and employees from any claims, damages, fines, or legal costs arising from your use of the Service or breach of these Terms.
Miscellaneous Provisions
Integration with Other Documents
This Agreement includes system specifications, product guides, and policy updates issued by OKX. In case of conflict, this Agreement prevails.
Amendments
OKX may modify these Terms at any time without prior notice. Continued use after updates constitutes acceptance. Always review the latest version online.
Governing Law and Dispute Resolution
This Agreement is governed by English law. Any disputes will follow a two-step process:
- Mediation through the Hong Kong International Arbitration Centre (HKIAC).
- If unresolved within 90 days, binding arbitration under HKIAC rules with three arbitrators seated in Hong Kong. Proceedings are conducted in English.
Assignment and Interpretation
You may not transfer your rights under this Agreement without written consent from OKX. OKX may assign its rights with prior notice.
Section headings are for convenience only and do not affect interpretation. OKX retains sole authority to interpret this Agreement.
Frequently Asked Questions (FAQ)
Q: What is xBTC?
A: xBTC is a wrapped version of Bitcoin created by OKX to enable BTC usage on supported blockchains outside the OKX platform.
Q: Can I trade xBTC on OKX?
A: No. xBTC cannot be traded on OKX’s spot or derivatives markets — it exists solely as an on-chain token.
Q: Is there a fee for redeeming xBTC?
A: No direct fee applies for redemption. However, standard blockchain network fees may apply during transfers.
Q: What happens if I send xBTC from a non-supported wallet?
A: Only deposits from supported blockchains will be recognized. Sending from unsupported chains may result in permanent loss.
Q: Why might my subscription or redemption fail?
A: Failures can occur due to network congestion, incorrect addresses, system maintenance, or security reviews. Always verify transaction details.
Q: Who controls the xBTC smart contract?
A: The smart contract is developed and maintained by OKX but operates autonomously on decentralized networks subject to inherent risks.