Common use of Default Event Procedure Clause in Contracts

Default Event Procedure. In the case that Participant becomes subject to a Default Event, Zero Hash shall take the below actions, as necessary, upon receiving notification from the Participant of a Default Event or upon Zero Hash becoming aware of Participant’s Default Event in any other capacity: 1. Zero Hash shall review the outstanding balance owed by Participant as a result of Transaction Obligations associated with any trading activity on the Transaction Platforms. 2. Zero Hash shall prevent withdrawals from a Participant's Available Account if Participant has any outstanding Transaction Obligations or outstanding accrued fees. 3. Zero Hash shall inform relevant Transaction Platform(s). 4. Zero Hash shall liquidate some or all of Participant’s assets to cover outstanding Transaction Obligations. Zero Hash may liquidate such assets by submitting orders on Transaction Platforms, on other trading platforms, via third party execution brokers, via an Auction Event, or any other method as Zero Hash may determine in its sole discretion. 5. Zero Hash makes no guarantee that it will execute the liquidating orders and/or trades at prices that are the then-prevailing best market price for any particular Contract. 6. Zero Hash may, in its sole discretion and upon reasonable notice to Participant, determine to adopt a liquidation fee that will be assessed against a Defaulting Participant. The liquidation fee shall be applied against the notional value of the liquidated amount and any related cost. Related costs may include, but shall not be limited to, costs associated with the liquidation, hedging costs, and other costs incurred by Zero Hash related to managing the Defaulting Participant's default. 7. Zero Hash may, in its sole discretion, utilize funds set aside by a Transaction Platform or other affiliated entity or partner entity, to apply such funds against any Defaulting Participant's counterparties' losses that remain uncured. 8. In the event that the actions taken by Zero Hash in Items 1-7 above are insufficient to cure the default, Zero Hash may take all other legal actions and remedies to cure the default. 9. Participant acknowledges that a Transaction Platform may maintain its own default event procedures, and in the event of any conflict, such Transaction Platform's default event procedures may supersede the procedures described herein.