Terms Of Service
- The Website and the Markets are intended as a research and educational facility, not as an investment market or a gambling facility, and the Market Provider has been authorised to act as a futures dealer, and the contracts traded are treated as futures contracts under New Zealand law, in order to provide certainty as to the legal treatment of the contracts.
- The Financial Markets Authority role in authorising futures dealers is limited and does not imply approval or endorsement of the business, trading or solvency of the company concerned.
- The Financial Markets Authority has not approved any documentation of the Market Provider, or the terms and conditions on which it carries out its business.
- No political party or other organisation referred to on the Website in connection with any Market has (or has had) any role in the promotion or operation of this Website or any Market.
- Nothing on this Website constitutes an offer or invitation to trade with any person who is under 18 years of age and/or outside New Zealand. In trading on iPredict, traders warrant that they are complying with all laws in the jurisdiction in which they are present.
About the Website
- The Website supports the operation of a "predictions market", a facility for buying and trading futures contracts linked to political, business, economic or social events or circumstances. More detail is available in the "About the Markets" section of the Website.
- The Website is intended primarily as a tool for education, research and policy analysis; it is not a commercial trading facility or investment tool. The Market Provider remains the right to alter the Website and trading conditions in pursuit of said priorities. The Market Provider may also collect and publish aggregated and anonymised trading data in the pursuit of these primary intentions. If you intend to use the Website for a particular purpose, or to achieve a particular result, it is up to you to satisfy yourself that the Website will meet your needs.
- The Website is not a stock exchange, and there are no controls on market manipulation or trading on the basis of "inside information". You confirm that you fully understand the risks that this entails, or, if you do not understand these risks, you agree to obtain appropriate independent advice before using the Website.
Safety and security
You agree that you will not use the Website (directly or indirectly) to:
- defame, threaten, harass, abuse or invade the privacy of any Users or any of our staff, or send or disseminate offensive, obscene or objectionable material;
- advertise goods, services or websites without our permission, or send or disseminate "spam", "junk mail", "chain letters" or any kind of malicious software such as "viruses" or "spyware"; or
- gather or aggregate personal information about other Users.
- You agree not to access or attempt to access any password-protected area of the Website except with our authorisation (for example, where we supply you with a username and password allowing you access to such an area).
- You agree that you will not use the Website (directly or indirectly) to:
Opening a User Account
- To open a User Account you will need to complete the online application process set out on the Website, ensuring that all the information you provide to us (through the Website or otherwise) is and continues to be complete and accurate. Whether we accept your application for a User Account is entirely up to us.
By applying for a User Account, you represent, warrant and undertake to us that you:
- are 18 years of age or older;
- do not already have (and will, at no time while you have the User Account for which you are applying, have) a User Account, whether directly or indirectly (including through any company or other legal entity which you directly or indirectly control);
- have not previously had a User Account that has since been cancelled by us;
- are (and will at all times be) acting solely for yourself and not on behalf of any other individual, company or other legal entity; and
- may not do anything which would result in you breaching any of these representations, warranties and undertakings.
- will comply with all laws in the jurisdiction in which you are present.
- If we accept your application for a User Account, we will notify you at the email address listed in your Account Details and supply you with a username and password.
- You agree that you will keep your password secret and secure at all times, and that you will not (intentionally or otherwise) allow anyone else to use the Website through your User Account.
- In order to trade on the Website, you will need to deposit funds with the Clearing House. You can make deposits with the Clearing House by electronic transfer or by credit card, in accordance with the applicable instructions set out in the "Your Account" section of the Website, as updated by us from time to time ("Deposit Instructions").
- You must not deposit more than NZ$2,500 with the Clearing House in any 6 month period. You also must not deposit a cumulative total of $10,000, calculated as the total of all contributions paid by the participant less the total of all amounts reimbursed by the market provider. Where you deposit (or attempt to deposit) more than this amount, the Clearing House will be entitled to reject or return your payments.
Where you deposit funds in accordance with the Deposit Instructions, the Clearing House
will hold those funds on trust for you as follows:
- the funds will be held in a Market Clearing Account;
- the Market Clearing Account will also contain funds deposited by other Users, but the Clearing House will maintain a separate ledger for the funds deposited by you (referred to as your "Ledger");
- the Clearing House will be entitled to any interest accumulated on the funds held in the Market Clearing Account; this interest will not be held on trust for you or anyone else, and the Clearing House is entitled to pay it over to the Market Provider;
- you can request withdrawal of funds from your Ledger by electronic transfer, in accordance with the applicable instructions set out in the "Your Account" section of the Website, as updated by us from time to time, and the Clearing House will be obliged to pay to you any funds in your Ledger (excluding, for the avoidance of doubt, any funds designated as Frozen Funds) as soon as practicable, and in any event no later than three working days after receiving a request or instruction from you to do so (except to the extent (if any) that funds in your Ledger consist of contributions from a "sponsor" of a Market which that "sponsor" has required not to be disbursed until after the liquidation date of that Market);
- where you withdraw funds, the Clearing House will be entitled to deduct a portion of the funds withdrawn and pay them to the Market Provider as a fee in accordance with clause 8 below;
- the Clearing House can debit funds from your Ledger to correct manifest errors, such as mistaken payments;
You may not trade on the Website with funds credited to your Ledger that are not from one
of the following sources:
- a payment made to the Clearing House by you for your own benefit;
- a payment made to the Clearing House by the "sponsor" of a Market as a "sponsor's contribution" (as defined in the Futures Contracts (iPredict Limited) Declaration and Exemption Notice 2008); or
- trading activities on the Website.
- If the Clearing House becomes aware that a payment other than a payment of a kind referred to above has been credited to your Ledger, the Clearing House will refund it as soon as practicable. If a payment has been deposited by the "sponsor" of a Market, and credited to your Ledger, in excess of the maximum amount which that "sponsor" is permitted (in accordance with the terms agreed between that "sponsor" and the Market Provider) to deposit for credit to your Ledger, the Clearing House will refund it to that "sponsor" as soon as practicable.
Trading and Settlement
- The Website facilitates the trading of futures contracts ("Claims") tied to the outcome of political, business, economic, sociological or demographic events and circumstances ("Factors"). A pool of associated Claims relating to the same Factor/s is called a "Market".
The Market Provider creates Claims and makes them available:
- for Users to Short Sell individually to other Users, who can then trade them amongst themselves; or
- for Users to purchase in bundles of two or more different Claims with mutually exclusive criteria for their respective Payouts ("Bundles" and "Bundled Claims"); once purchased, Bundled Claims can be unbundled and traded individually.
- Each Claim entitles its holder to the payment of a specified amount ("Payout") if on its Expiry Date certain specified conditions are met. Whenever a Claim is traded through the Website, this Contingent Payment Right is transferred as part of the Claim.
When you purchase a Bundle:
- the Clearing House will debit the Maximum Payout of that Bundle from your Ledger, to be paid out in satisfaction of the Actual Payout/s which become/s payable to the relevant User/s holding the Claims in that Bundle on the Expiry Date.
When you Short Sell a Claim, you are:
- immediately selling that Claim (including that Contingent Payment Right) to another User.
The Website will display the Bundles currently available for purchase, and the combined Maximum Payout of each Bundle.
- To purchase a Bundle, enter a purchase order for that Bundle on the designated page of the Website, specifying the number of Bundles you wish to purchase.
- The Market Provider reserves the right not to accept any one or more purchase orders for any reason. Without limiting the foregoing, your purchase order will not be accepted if your Ledger balance (excluding, for the avoidance of doubt, any amounts designated as Frozen Funds) is less than the combined Maximum Payout of the Bundles in your purchase order.
If your purchase order is accepted:
- the Clearing House will debit your Ledger balance by the aggregate Maximum Payout of the Bundles in that purchase order; and
- the Market Provider will add each Claim from the Bundles in that purchase order to your Portfolio.
The Website will display the Claims currently available for Short Selling.
- To Short Sell a Claim, enter a sell order for that Claim on the designated page of the Website, specifying the maximum quantity of Claims you wish to Short Sell ("Offer Quantity") and the minimum price per Claim at which you wish to sell them ("Offer Price").
- Your short sell order will only be accepted if there are enough Claims available to fill it, and your Ledger balance is greater than or equal to the combined Maximum Payout of all the Claims in that order.
- If your short sell order is accepted, it will enter the matching process (see clause 7.7), and the Clearing House will debit your Ledger balance by the combined Maximum Payout of the Offer Quantity (and designate that amount as Frozen Funds).
- You can withdraw your short sell order at any time to the extent it remains unmatched, in which case the Clearing House will credit your Ledger (from the Frozen Funds) with the combined Maximum Payout of the unmatched Offer Quantity.
- To the extent your short sell order is matched with another User's buy order (see clause 7.7), the Clearing House will credit your Ledger with the combined Purchase Price of the Matched Quantity.
Selling on market
To sell a Claim in your Portfolio to another User, enter a sell order for that Claim,
specifying the maximum quantity you wish to sell ("Offer Quantity") and minimum price
per Claim ("Offer Price").
- Your sell order will only be accepted if it is entered before the Claim's Expiry Date, and the holdings of that Claim in your Portfolio (excluding any Claims already covered by another current sell order) are greater than or equal to the Offer Quantity.
- If your sell order is accepted, it will enter the matching process (see clause 7.7) but you can withdraw it at any time to the extent that it remains unmatched.
To the extent that your sell order is matched with another User's buy order (see
- the Clearing House will credit your Ledger with the combined Purchase Price of the Matched Quantity; and
- the Market Provider will remove the Matched Quantity from your Portfolio.
- To sell a Claim in your Portfolio to another User, enter a sell order for that Claim, specifying the maximum quantity you wish to sell ("Offer Quantity") and minimum price per Claim ("Offer Price").
Buying on market
To buy a Claim from other Users, enter a buy order for that Claim, specifying the maximum quantity you wish to buy ("Bid Quantity") and the maximum price per Claim ("Bid Price").
- Your buy order will only be accepted if it is entered before the Claim's Expiry Date, and your Ledger balance is greater than or equal to the combined Bid Price of the Bid Quantity.
- If your buy order is accepted, it will enter the matching process (see clause 7.7), and the Clearing House will debit your Ledger with the combined Bid Price of the Bid Quantity (and designate that amount as Frozen Funds).
- You can withdraw your buy order at any time to the extent it remains unmatched, in which case the Clearing House will credit your Ledger (from the Frozen Funds) with the combined Bid Price of the unmatched Bid Quantity.
To the extent that your buy order is matched with another User's sell order (see
- the Clearing House will debit the combined Purchase Price of the Matched Quantity from your Frozen Funds, and credit it to the Ledger of that other User;
- if the combined Purchase Price of the Matched Quantity is smaller than the combined Bid Price of the Matched Quantity, the Clearing House will credit your Ledger (out of the Frozen Funds) with the difference between the two; and
- the Market Provider will add the Matched Quantity to your Portfolio.
In each Market, buy orders, sell orders and short sell orders only result in transactions where they are matched with each other. This matching is automated by software operated by the Market Provider, as follows:
- Unmatched buy orders are ranked in one queue, and unmatched sell orders and short sell orders in another.
- The orders in each queue are ranked by Bid Price (high to low) and Offer Price (low to high) respectively; orders with the same price are ranked by time of entry (earliest to latest).
The highest ranked order in each queue is compared. No match will occur unless the Bid
Price is equal to or higher than the Offer Price. If this condition is met, then:
- if the Bid Quantity and Offer Quantity are equal, both orders are matched in their entirety and removed from the queue;
- if the Bid Quantity and Offer Quantity are unequal, each order is matched to the extent of the smaller quantity; the smaller order is removed from the queue, but the remainder of the larger order becomes the next order in the queue after the removed order;
- the Matched Quantity is the quantity matched under paragraph (i) or (ii) above; and
- the Purchase Price for each Claim in the Matched Quantity is the price of whichever order entered the queue first. That is, the price of a trade is set by the price of the previously unmatched order.
- Where any buy orders, sell orders or short sell orders for a Claim remain outstanding on the Expiry Date of that Claim, those orders will automatically be withdrawn.
- We may suspend the trading of any Claim on the Website at any time and for any period. While trading is suspended, the matching process will be paused and you will not be able to enter any orders, but this will not affect your ability to withdraw your unmatched orders.
Within such time after a Claim's Expiry Date as may be specified in the relevant Rules, the Market Provider will:
- examine the Rules applicable to the Claim and judge whether or not the Rules require a Payout and, if so, what the Actual Payout is; and
- post notice of its decision on the homepage of the relevant Market, and liquidate that Claim (and all the others in the same Market) in accordance with clause 7.13.
- The Market Provider's decision under clause 7.10 (including its interpretation of the Rules and its findings of fact in applying them) will be final. By accepting these terms and conditions you waive your right to seek other remedies (to the maximum extent permitted by law).
- If you are dissatisfied with a decision made by the Market Provider, you agree that you will engage with us in good faith in an attempt to resolve the issue before seeking any further remedy.
Payout and liquidation
Within such time after the outcome of the Market being judged under clause 7.10 as may be specified in the relevant Rules (but subject to the resolution of any dispute over that decision):
- for each Claim in that Market which you Short Sold the Clearing House will credit your Ledger (out of the Frozen Funds) with the difference between the Maximum Payout and the Actual Payout;
- for each Claim in that Market which you Short Sold and which is then in the Portfolio of another User, the Clearing House will debit the Actual Payout from your Frozen Funds and credit it to the Ledger of that other User; and
- for each Claim in that Market which is then in your Portfolio, the Clearing House will credit your Ledger with the Actual Payout and the Market Provider will remove the Claim from your Portfolio.
- The Market Provider sets fees according to the structure listed on the iPredict Fees page.
Cancelling your account
- You can cancel your User Account by logging in to the Website and following the online cancellation process, but your cancellation will not take effect unless and until your Ledger balance is zero and you have no Claims in your Portfolio (and accordingly no unmatched buy orders, sell orders, short sell orders or orders or requests for Bundles).
- The Market Provider is entitled at any time to suspend or prohibit you or any other person from trading on the Website. In addition, we may cancel your User Account at any time, for any reason, without any explanation or advance notice.
If we cancel your User Account, you will not be able to log in to your User Account, use
any of the features of the Website which require a User Account, or withdraw any funds;
and in the following order:
- we will notify you of the cancellation, by sending an email to the email address in your Account Details;
- we may cancel any or all of your unmatched buy orders, sell orders and short sell orders, and we may sell on your behalf any or all of the Claims in your Portfolio at or around their Current Market Value;
- in any current Market where you have Short Sold Claims, we may buy an equivalent number of those Claims from any other User, at or around their Current Market Value, on your behalf and debit your Ledger accordingly;
- the Clearing House will pay the remaining funds in your Ledger (to avoid doubt, excluding any Frozen Funds) to the bank account listed in your Account Details;
- we may delete your User Account, although we will be entitled to retain any information we reasonably believe is or may be necessary to enable us to meet our current or future legal obligations and/or any policy we have about information retention.
neither the Market Provider nor the Clearing House nor any of their respective
shareholders, directors, officers, employees, contractors or advisers (each a "Relevant
Person") will be liable for:
any loss or damage arising:
- in connection with a change in services provided by a third party (or a change in the terms on which those services are provided) that affects our ability to operate or maintain the Website; or
- as a result of our tortious default (including negligence); or
- any amount exceeding your then current Ledger balance.
- any loss or damage arising:
- You can use that software, and those materials and data, as part of the ordinary use of the Website, but you are not entitled to copy, reproduce, reverse compile, adapt, transmit, distribute, sell, sub-licence, commercialise or otherwise deal with the software, materials or data (or any part of them), except to the extent of any entitlement you may have at law which cannot be excluded or surrendered by contract.
By uploading any material to the Website, you:
- represent and warrant to us that you own all the intellectual property rights in that material; and
- grant us a worldwide, irrevocable, royalty-free, perpetual, transferable right to use, copy, modify, delete (in whole or part), and/or distribute those materials in any form, medium or technology.
- We and the Clearing House may collect and hold your personal information, including details which you provide when you apply for a User Account, and information relating to your use of the Website. If you do not provide this information, we may be unable to provide you with access to, and/or use of, the Website.
We and the Clearing House will hold the information for the following purposes:
- to facilitate the proper functioning of the Website (including to ensure the integrity and security of the market);
- to comply with legal obligations relating to financial reporting and record-keeping; and/or
- for the purpose of conducting academic research.
- Under the Privacy Act 1993, you have the right to request any personal information which we and the Clearing House hold about you; you may request that there be attached to the information a statement of any correction sought but not made. We or the Clearing House may charge you a fee for the reasonable cost of responding to any of these requests.
- You will have access to some of the information held about you through the interface of your User Account. If you would like access to any other information we and/or the Clearing House hold about you, please contact us using the contact details provided on the Website.
- The email address you provide will only be used for the purposes of this Website and will never be on-sold.
Third party Advertisements
- The Website may contain paid advertisements linking to other websites. Neither we nor the Clearing House may control the content of such website or advertisements. In those advertisements, and on those websites, all offers to sell and statements relating to goods and services are the responsibility of, and are given by, the operator of the relevant website.
- Account Details
- means the contact and personal details which you provide to us in your application for a User Account, as updated by you from time to time through the online form provided on the Website for that purpose;
- Actual Payout
- means the Payout (if any) which is actually payable in accordance with the Rules of a Claim in light of the circumstances at the Claim's Expiry Date, as determined by the Market Provider under clause 7.10;
- Bid Price and Bid Quantity
- are defined in clause 7.5;
- is defined in clause 7.1(a);
- Clearing House
- means Predictions Clearing Limited;
- Current Market Value
- means the current price of a Claim as reported on the Website (taking into account recent trades in that Claim, and determined in accordance with the methodology selected by the Market Provider);
- Expiry Date
- means the expiry date of a Claim, as set out in its Rules, whether that date is (i) a specified date or (ii) a date described by referring to the day, or number of days (including, for the avoidance of doubt, the number of working days or other specified type of days) after a specified future act or event happens or circumstance occurs);
- Frozen Funds
- has the meaning given in clause 7.1;
- Market Clearing Account
- means a call deposit account maintained with a registered bank in the name of the Clearing House;
- Market Provider
- means iPredict Limited;
- Matched Quantity
- means the portion of a Bid Quantity and an Offer Quantity matched under clause 7.7, expressed as a number of Claims;
- Maximum Payout
- means (i) in relation to a Claim, the maximum Payout possible under the Rules relating to that Claim if all the conditions of that Claim are satisfied to their fullest, and (ii) in relation to a Bundle, the maximum Payout possible under the Rules relating to the Claims in that Bundle of any of those Claims if all the conditions of that Claim are satisfied to their fullest.
- Offer Price and Offer Quantity
- have the meanings given to them in clauses 7.4 and 7.6;
- means the amount specified in (or calculated under) the Rules of a Claim as being payable from the Clearing House to the holder of the Claim, if one or more specified conditions is satisfied;
- Purchase Price
- means the purchase price for a Claim, as determined under clause 7.7(c)(iii);
- has the meaning set out in clause 7.2;
- Short Sell
- means to sell a Claim to another User under clause 7.4; and Short Sold has a corresponding meaning;
- means you and anyone else with a User Account;
- User Account
- means an individual trading account at the Website;
- means the website and trading facility whose homepage is at www.ipredict.co.nz.