Dear Users,

To maintain the normal trading order of the contracts market, safeguard the trading fairness for the majority of users and the stability of the platform system, we have recently detected through monitoring that some users have engaged in high-frequency, short-cycle and concentrated trading activities in small-cap crypto contracts. Given the limited liquidity of small-cap cryptos, such behaviors may exert an impact on market prices and amplify systemic risks.

In light of the above, the Platform will implement a special risk control strategy targeting the trading behaviors of users conducting frequent transactions in small-cap crypto contracts. The details are hereby announced as follows:

1. Definition of Small-Cap Crypto Contracts

Small-cap crypto contracts refer to contract products in the contracts market that feature low liquidity and high price volatility, resulting from the relatively limited market capitalization, trading activity or market depth of their underlying assets.

Contracts that meet one of the following characteristics (including but not limited to) may be identified as small-cap crypto contracts by the Platform:

• Low Trading Volume and Market Depth
  • Average daily trading volume or order book depth is significantly lower than that of mainstream contract products
  • Large orders are prone to cause a material impact on prices
• High Price Volatility
  • Significant price fluctuations within a short period of time
  • Prone to rapid rallies, sharp drops or abnormal price movements
• Limited Number of Trading Participants
  • Limited number of active trading accounts
  • High trading concentration
• Relatively Insufficient Market Maturity
  • Short listing period with an underdeveloped price discovery mechanism
  • Vulnerable to the impact of individual events or market sentiment

The Platform will implement dynamic classified management of contract products based on market liquidity, volatility, transaction structure and risk assessment models. The identification of small-cap crypto contracts is subject to adjustment in line with changes in market conditions, without separate individual notice.

2. Scope of Application

• Accounts with high-frequency position opening and closing activities in small-cap crypto contracts
• Accounts that conduct multiple reverse trades or wash trades within a short period of time
• Accounts whose trading frequency and trading volume in low-liquidity contracts are significantly higher than the market average

3. Details of Risk Control Measures

For the aforementioned trading behaviors, the Platform may take the following measures (including but not limited to) based on risk assessment results:

• Restrictions on trading frequency and trading activities
• Leverage and position limits
• Adjustment of margin requirements and risk parameters
• Ongoing monitoring of account trading behaviors

4. Notes on Implementation

The above risk control measures will be automatically identified and dynamically enforced based on the Platform's systematic risk control model, without separate individual notice.

5. Risk Warning

Small-cap crypto contracts are subject to high price volatility and limited trading depth. High-frequency trading activities may rapidly amplify risks amid extreme market conditions.

Thank you for your understanding and support.