BYDFi Policy for Managing Abnormal Trading Behavior

1. Overview

To regulate trading behavior, maintain market order, and ensure fair trading, BYDFi will monitor user trading activities. If abnormal trading behavior is detected, BYDFi may initiate an abnormal trading handling procedure and take corresponding management measures against the involved users.

2. Definition of Abnormal Trading Behavior

A user’s trading activity will be deemed abnormal if any of the following circumstances occur:

   1. Self-Trading Behavior

   Repeatedly trading with oneself, or conducting transactions between accounts under the same actual control (self-matching), including but not limited to:

• Single or multiple accounts with the same fund source or IP address.
• Synchronized trading behavior.
• Wash trading or matched orders between accounts under common control.

   2. Frequent Order Placement and Cancellation

   Placing and canceling orders frequently within a day in a way that may affect trading prices or mislead other market participants (frequent order cancellation).

   3. Large Order Placement and Cancellation

   Placing and canceling large orders multiple times within a day in a way that may affect trading prices or mislead other market participants (large-scale order cancellation).

   4. Excessive Daily Trading Volume

   Opening positions in a single trading product (including but not limited to BYDFi Futures, Spot, or Leveraged Trading) that exceed the daily opening transaction volume limit set by the exchange.

   5. Algorithmic or Programmatic Trading

   Using automated or programmatic methods to place orders that may affect BYDFi’s system stability or disrupt normal market trading operations.

   6. Improper or Manipulative Trading Intent

   Trading with improper or manipulative intent, as reasonably determined by BYDFi, including but not limited to:

• Executing trades at prices significantly deviating from the current market price to gain unfair profit.
• Manipulating market prices or depth intentionally to influence other traders.
• Exploiting BYDFi’s pricing mechanisms or technical vulnerabilities for unjust enrichment.
• Conducting wash trading or volume manipulation to create a false impression of market activity.

   7. Multi-Account Collusion

   Two or more accounts exhibiting coordinated or highly correlated activity (e.g., same controller or synchronized trading) that may constitute market manipulation or abuse. BYDFi may investigate and handle such accounts collectively.

   8. Other Circumstances

   Any other behaviors that BYDFi reasonably determines to be abnormal trading activities.

3. Handling of Abnormal Trading Behavior

To ensure the security and stability of BYDFi’s trading market, BYDFi reserves the right—without prior notice—to take the following actions against accounts involved in abnormal trading behavior:

1. Request the user to provide an explanation or report of trading activities.
2. Restrict, suspend, or terminate the user’s access to the BYDFi platform.
3. Limit position openings, require position liquidation within a specified period, or enforce forced liquidation.
4. Restrict deposits or withdrawals from the account.
5. Close the account and confiscate remaining assets.
6. Take any other actions deemed necessary according to BYDFi’s operational policies.

4. Disclaimer of Liability

Users participating in BYDFi trading must comply with applicable laws, regulations, and the platform’s trading rules. They must also accept BYDFi’s reasonable supervision and management of their trading activities and conduct themselves in a compliant manner.

BYDFi reserves the right to take all lawful and fair remedies against abnormal trading behaviors, including but not limited to restricting all trading activities of the involved accounts.

BYDFi shall not be held liable for any financial losses incurred due to violations of these rules.