Biton Risk Trading Management Measures

To further standardize cryptocurrency trading behavior, maintain fair market order, prevent risks, and protect the legal rights of cryptocurrency market participants, the trading platform will monitor and manage cryptocurrency trading behaviors. If abnormal trading behaviors are detected, the platform has the right to take corresponding measures against the involved participants:

1. Definition of Abnormal Trading Behavior

Including but not limited to:

• Using platform mechanism loopholes for arbitrage, including but not limited to self-dealing behavior, using multiple devices and accounts to manipulate fees, commissions, trading coupons, hedging, etc.

• Consolidating positions in related accounts controlled by the actual operator beyond the exchange’s position limits.

• Using related accounts for wash trading, market manipulation, or trading to control market prices for illicit profits.

• Account hijacking behavior; customers illegally stealing others’ account credentials or using related accounts to trade and transfer funds illegally.

• Using one’s own account or multiple accounts to perform AB warehouse trading.

• High-frequency or illegal quantitative trading, arbitrage trading.

• Related accounts engaging in abnormal convergence trading behaviors.

• Participation in price manipulation or any other malicious market activities.

• Potential damage to other users or the platform by exploiting service vulnerabilities or other unreasonable methods.

• Participation in any other activities deemed harmful to the market by the platform.

2. Types and Characteristics of Account Hijacking and Wash Trading

• Account Hijacking
  Account hijacking refers to using stolen credentials from another account holder to trade between the hijacked account and the attacker’s own controlled account, disrupting trading management and transferring funds.

• Related Account Wash Trading
  In two or more related accounts, through premeditated actions or agreements with others, trades are executed at the same price within the same time. One account buys high and sells low, resulting in clear losses, or sells low and buys high, making clear profits, thereby transferring funds from the client’s account to the attacker’s personal account.

• Wash Trading by Authorized Accounts
  The authorized person uses the client’s account to trade with their own account, transferring the client’s funds into the attacker’s own account.

• Identification of Related Accounts
  Identified by similar registration times, the same registration phone number, or identical deposit/withdrawal addresses.

3. Types and Characteristics of Wash Trading, AB Warehousing, and High-Frequency Trading

• Multiple related accounts placing orders at the same time with the same direction, similar trade amounts, and similar opening prices.

• Using the same account or multiple related accounts to place orders in the same time period for the same product, with different directions but similar trade amounts, either manually or using pending orders, for opening and closing positions.

• Opening and closing positions quickly in less than 3 minutes.

• Using low liquidity assets to perform large and frequent opening and closing transactions for profits.

4. Contract High-Frequency Wash Trading Types and Characteristics

• Number of orders with a holding time of less than 3 minutes per day is greater than or equal to 12 orders.

• The proportion of daily transactions with a holding time of less than 3 minutes is greater than or equal to 30%.

• Single account daily average holding time is less than 3 minutes.

• Agents provide rebates to related accounts or transfer commissions to other accounts for wash trading.

• If multiple related accounts are trading, and the total number of trades exceeds 100 times per day, they will be treated as high-frequency wash trading for wash trading operations.

• Other abnormal trading situations: including but not limited to using small trades to extend the total account holding time, or arbitrage by mass registration of new accounts for a one-time wash trading operation.

• Using the same IP or multiple related accounts to manipulate market prices while simultaneously opening and closing positions to achieve profits or manipulate time for fee arbitrage.

5. Penalty Measures for Clients Engaging in Illegal Trading

In accordance with relevant regulations, the platform will penalize users who violate the rules based on these measures. Penalty methods include but are not limited to warnings, commission deductions, restricting account functions, suspending services, rolling back abnormal transactions, etc.

• For users with relatively mild violations, penalties may include warnings, suspension of trading permissions, cancellation of orders, and position reversals.

• For users with more serious violations, additional penalties may include deduction of part of the rebate, cancellation of high-frequency rebates, and deductions of certain violation-related high-frequency rebates.

• For users with severe violations, further penalties will include the deduction of all rebates, account freezing, freezing of trading functions, and being declared a "market banned participant."