Derivations Trading Rules

Dear SAFEX Users,

General Provisions These rules are established to regulate cryptocurrency contract trading activities, maintaining market order and protecting investors' legitimate rights and interests based on the principles of fairness, openness, and justice.

Risk Control Users should be aware of the risks in contract trading and adjust their position ratios and margins timely to avoid risks. Severe price fluctuations could lead to the liquidation of your entire margin balance. SAFEX shall not be held responsible for any losses incurred due to the use of contracts. SAFEX reserves the right to monitor users' risk ratios in real-time and may take appropriate measures based on changes in risk ratios. Risk control measures include but are not limited to:

• Implementing trading permissions restrictions, such as "close-only" restrictions;

• Dynamically adjusting risk control parameters based on market risk ratios;

• Prohibiting high-risk users from transferring funds or trading;

• Deducting rebates, freezing accounts, etc.

Our risk control system will identify users engaging in illegal arbitrage across multiple accounts and devices through multi-dimensional feature recognition (including but not limited to transaction fee churning, rebates, hedging, bonus manipulation, etc.).

Examples of Abnormal Trading Behavior in Exchanges High-frequency order placing and malicious fee churning; knock-out, hedging, and AB warehouse order placing; ultra-short line operations; exploiting minor coin spreads for short-term arbitrage; exploiting service loopholes or other unreasonable means to harm other users or the platform.

Characteristics of High-Frequency Order Placing and Malicious Fee Churning Utilizing the exchange's rebate mechanisms for user orders, conducting arbitrage or fee arbitrage through high-frequency trading. Accounts with daily transaction counts reaching 50 (open+close counts as one transaction) will be considered as high-frequency order placing. Accounts with a high proportion of orders with open and close cycles shorter than a specified duration within a day may trigger risk control.

Characteristics of Knock-Out, Hedging, and AB Warehouse Transactions Conducting long and short locking order placing through associated accounts, including locking orders in the same or highly related trading varieties; frequent bidirectional opening and locking in the same account. Abnormal converging transactions among multiple associated accounts.

Characteristics of Ultra-Short Line Trading Engaging in systematic trading that rapidly opens and closes positions, with order cycles shorter than specified times. Performing five or more transactions per day (open+close counts as one transaction) will be considered ultra-short line trading.

Other Actions Disrupting a Fair and Reasonable Trading Environment Other behaviors considered by the platform to disrupt a fair and reasonable trading environment.

Special Statement: The above parameters are for reference only. Our risk control technology will automatically identify trading behaviors based on transaction data. SAFEX reserves the final right to interpret any form of rule violation. If you have any questions, feel free to contact our online customer service. Risk Warning: Digital assets are an innovative product with significant price volatility. Please make rational decisions based on your own risk tolerance. We will continue to strive to provide you with superior products and services!

SAFEX Operations Team