Cha & Kwon Law Offices advised an overseas business operator engaged in a virtual asset-related partnership business by reviewing, revising, and preparing a service partnership agreement to be entered into with a virtual asset trading platform.

The business structure involved the partner bringing users to the trading platform and receiving commissions based on the trading performance of those users, which would then be utilized in accordance with the partner’s business model. The key issues included the criteria for calculating commissions, payment procedures, account restrictions arising from users’ violations, and the scope of commission clawbacks.

Cha & Kwon Law Offices specified the transactions and items to be included in or excluded from the commission calculation, and structured the agreement so that commissions would be calculated and paid on a regular basis based on trading performance. We also clarified the settlement structure by addressing payment deadlines, treatment of delayed payments, and limited conditions for clawbacks.

In addition, we designed the agreement to prevent the partner’s relevant accounts or partnership rights from being unfairly restricted on the grounds of its business operations. We also structured the agreement so that, even where certain users engage in violations, the scope of measures would be limited to the relevant users and related transactions.

Cha & Kwon Law Offices provides contract drafting advisory services for contractual relationships between virtual asset trading platforms and business partners by clarifying settlement structures and enhancing the stability of the business arrangement.