# Contract Specifications, Fixed Yield Contracts

**Kronos X, operated by PM MTF Ltd**

> **DRAFT for review by the Head of Legal, not yet in force.** This document
> becomes effective only upon publication on the Website following approval
> under the amendment procedure of the Rulebook. Until then, nothing in it
> creates rights or obligations, and the published member documentation and
> Rulebook prevail in full. The names in Section 2 are the confirmed product
> names; the symbol is what the trading interfaces carry.

Draft 0.3, 20 October 2026 (Draft 0.2 was 10 September 2026; the changes of
Draft 0.3 are listed at the end of this document). Applies to every market
listed in Section 2 of this document. Companion documents: the PMX Rulebook Financial Instruments (the
"Rulebook"), the Kronos X member API reference (section 6h, Yield contracts)
and Member Technical Handbook (together the "Member Documentation"), and the
Complete Code Reference.

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## 1. Status, definitions and interpretation

1.1 This document constitutes the product terms for the fixed yield contracts
offered on the systems of the multilateral trading facility operated by PM MTF
Ltd (the "Company") under the trading name Kronos X (the "Platform"). A fixed
yield contract is a fixed-term, fixed-rate delivery of one Asset between two
Members (the Principal to the Writer at acceptance, the Principal plus a Reward
fixed at acceptance to the Taker at Maturity). It is a Financial Instrument
within the meaning of the Rulebook (on the fiat markets a swap relating to
interest rates or yields, on the crypto-asset markets a derivative contract on
the crypto-asset, Part III of the First Appendix of Law 87(I)/2017; the
Company's classification of 10 September 2026) and is not a Position within
the meaning of the Rulebook's margin provisions. The Rulebook governs the
Members' relationship with the Company (membership, conduct, Market Segments,
default management, fees and the amendment procedure) and applies to these
contracts as this document provides.

1.2 Capitalised terms not defined in this document have the meaning given to
them in the Rulebook. In this document: the **Asset** is the currency or
digital asset a Yield Contract market (a market of kind SWAP on the API) is
denominated in (Section 2); the **Writer** is
the Member that posts an Offer and receives the Principal; the **Taker** is
the Member that accepts an Offer and delivers the Principal; an **Offer** is
the Writer's standing statement of rate, tenor, size, minimum take and
validity on a Yield Contract market; a **Contract** is the bilateral obligation created
by each acceptance of an Offer; the **Principal** is the quantity of the
Asset the Taker delivers at acceptance; the **Reward** is the additional
quantity of the Asset the Writer owes at Maturity; **Maturity** is the moment
the Contract's tenor ends.

1.3 In case of conflict, the order of precedence is: (a) the Rulebook, (b)
these contract specifications, (c) the Trading Parameters (Section 6), (d) the
Member Documentation.

## 2. Instruments covered, names and symbol convention

2.1 Each Yield Contract market is identified by a symbol of the form
`{ASSET}-TBILL-SWAP` (the fiat markets) or `{ASSET}-STAKE-SWAP` (the
crypto-asset and stable-asset markets), where `{ASSET}` is the code of the
Asset. The tokens TBILL, STAKE and SWAP in a symbol are identifiers only: no
contract references a bill rate, a staking activity or a floating leg. Every
money leg of a Contract is settled in the Asset; the market's quotation
currency (US Dollar) has no economic role.

2.2 The Yield Contract markets currently covered by these specifications, with
the names under which they are presented to Members and their clients:

| Symbol | Name | Asset | Tenor range (days) | Maximum annualised rate |
|---|---|---|---|---|
| USD-TBILL-SWAP | USD Fixed Yield Contract | US Dollar (USD) | 7 to 364 | 20 percent (2000 basis points) |
| EUR-TBILL-SWAP | EUR Fixed Yield Contract | Euro (EUR) | 7 to 364 | 20 percent (2000 basis points) |
| BTC-STAKE-SWAP | BTC Fixed Yield Contract | Bitcoin (BTC) | 1 to 365 | 30 percent (3000 basis points) |
| ETH-STAKE-SWAP | ETH Fixed Yield Contract | Ether (ETH) | 1 to 365 | 30 percent (3000 basis points) |
| SOL-STAKE-SWAP | SOL Fixed Yield Contract | Solana (SOL) | 1 to 365 | 30 percent (3000 basis points) |
| USD1-STAKE-SWAP | USD1 Fixed Yield Contract | USD1 | 1 to 365 | 30 percent (3000 basis points) |

2.3 The name says what the Taker receives (a Reward at a rate fixed at
acceptance, in the Asset) and what the contract is (a delivery of a quantity
of the Asset now against that quantity plus the fixed Reward at Maturity). It
does not describe, and the Company does not represent, any holding of a
treasury bill or any staking activity by the Company or by the Writer. **The
Company never verifies what the Writer does with the Asset.**

2.4 The authoritative list of admitted instruments, including any instrument
admitted or removed after the date of this document, is the venue instrument
reference published through the API and the documentation site (Section 6).

## 3. Nature of the contract

3.1 A Contract is a bilateral agreement between one Writer and one Taker,
created by the Taker's acceptance of a size of the Writer's Offer on the
Platform, under which (a) the Taker delivers the Principal to the Writer at
acceptance, and (b) the Writer delivers the Principal plus the Reward to the
Taker at Maturity, all in the Asset.

3.2 Offers are anonymous and are accepted through the Platform's request for
quote facility: the Writer posts an Offer (rate, tenor, size, minimum take,
validity), the Platform shows it to eligible Members without naming the
Writer, and any Member admitted to the market other than the Writer may accept
a size of it. Quotes do not exist on Yield Contract markets. An Offer may be
accepted in part by several
Takers, each acceptance creating a separate Contract; the Writer may withdraw
the untaken remainder at any time; an Offer lapses at the end of its validity.

3.3 A Contract has no price and no market value on the Platform. It is not a
Position within the meaning of the Rulebook's margin provisions, carries no
Initial or Maintenance Margin, is not marked to market and does not enter
open interest, liquidation or auto-deleveraging.

3.4 **The Writer's obligation is unsecured.** The Company holds nothing against
the Writer's obligation to return the Principal and the Reward, does not
verify what the Writer does with the Asset, and does not guarantee the
Writer's performance. Section 9 states what happens when a Writer cannot pay
in full at Maturity.

3.5 There is no early termination at the request of either party. A
Contract runs to its Maturity; the Company terminates a Contract before its
Maturity only under Section 10 (removal of the market from trading).

## 4. Rate, tenor and Reward

4.1 The **rate** is stated by the Writer in whole annualised basis points, from
1 to the market's maximum (Section 2), and is fixed for the life of every
Contract taken from the Offer.

4.2 The **tenor** is stated by the Writer in whole days within the market's
range (Section 2). Maturity is the moment exactly `tenor x 86,400` seconds
after the acceptance that created the Contract. Days are calendar days
including weekends and holidays; the Rulebook's Business Day definition does
not apply to the tenor.

4.3 The **Reward** is computed at acceptance and fixed:

```
Reward = floor( Principal x rate x tenor / (10,000 x 365) )
```

in the Asset, rounded DOWN to the sixth decimal (the Platform's unit of
account in every currency and asset), on an actual/365 fixed day-count basis.
The rate is a simple annualised rate on an actual/365 fixed basis; it is not
a discount yield and is not directly comparable to a Treasury bill yield
quoted on an actual/360 discount basis. The Reward does not change with the
calendar, with market rates or with the Asset's price. Illustration: 1 BTC at
450 basis points for 30 days earns 0.003698 BTC; 10,000 USD at 420 basis
points for 91 days earns 104.712328 USD.

## 5. Settlement asset and money movements

5.1 Every payment under a Contract is made in the Asset, from and to the
parties' accounts on the Platform, and is recorded in each Member's ledger.

5.2 At acceptance the Principal is debited from the Taker and credited to the
Writer, and each party pays the Company's fee (Section 11). The Taker must
hold the Principal plus its fee freely available in the Asset at acceptance,
otherwise the acceptance is rejected; on the USD market "freely available"
additionally means within the Member's available margin balance, so that
funds supporting the Member's Positions in other markets are never applied.

5.3 At Maturity the Platform debits the Writer and credits the Taker with the
Principal plus the Reward (the "Amount Due"), to the extent of the Writer's
freely available balance in the Asset at that moment (nil while the Writer is
in default management under the Rulebook: in liquidation, in default, or with
an open unwind), without notice or demand and without any action by either
party. Section 9 governs a shortfall.

5.4 A halt of the Yield Contract market suspends the posting and acceptance of Offers
but not the settlement of Maturities. A halt of the Platform as a whole under
the Rulebook defers the settlement of Maturities to the first settlement
cycle after trading resumes.

## 6. Contract size and Trading Parameters incorporated by reference

6.1 Sizes are quantities of the Asset on the market's Quantity Step. The
Trading Parameters state per market the Quantity Step, the minimum single
acceptance (displayed as Minimum Notional, expressed in the Asset), the
maximum size of one Offer and of one acceptance (Maximum Order Quantity), the
maximum quantity a Member may have outstanding on the market in both roles
together (Maximum Position Quantity), the tenor range, the maximum rate, the
maker and taker fee rates and the trading hours of the market. The Company
publishes them at all times through the API (`GET /v1/instruments`) and the
documentation site.

6.2 The Trading Parameters are incorporated into these specifications by
reference and may be amended by the Company in accordance with the Rulebook
without an amendment of this document, except the Quantity Step of a listed
market, which is changed only by a re-listing under Section 6.4, never in
place. An amendment applies to Offers posted and Contracts created after it;
the rate, tenor and Reward of an existing Contract are never changed.

6.3 The Company additionally limits the number of Contracts a Member may have
outstanding across all Yield Contract markets and the number outstanding on one market;
the prevailing values are stated in the Member Documentation.

6.4 Every Offer and every open Contract on a Yield Contract market is held on
the market's Quantity Step, so the Company does not change it on a listed
market in place. A change of the Quantity Step is made only by a re-listing of
the market, announced in advance on the Website and through the documentation
site, naming the market, the new value and the date. On that date the market
is removed from trading under Section 10: every Offer on it is withdrawn and
every open Contract is settled as Section 10.1 states. The market is then
listed again with the new Quantity Step and with no Offer and no open
Contract, under the symbol the announcement names. The other Trading
Parameters of Section 6.1 may be amended under Section 6.2 without a
re-listing.

## 7. Eligibility, anonymity and Market Segments

7.1 A Member may act as Writer or as Taker on a Yield Contract market only
once the Company has admitted it to that market under the objective criteria
published for the SWAP_COUNTERPARTY class in the annex to these specifications
(Rulebook section 10): the Member's client category is eligible counterparty
or professional, the Member has executed the Swap Product Annex to its
Membership Agreement, and the Member has completed conformance testing on the
test environment's swap markets. The admission covers both roles and is
granted per market. A refused admission may be raised through the complaints
procedure of the Rulebook (section 38). Only a Market Maker Member (a Member
the Company has designated as such under the Rules, section 3 and the Market
Maker Agreement, Rules lines 118 and 187 to 191) may act as Writer, and only
on its own account against proprietary capital; the Company designates as
Market Maker Member for the Yield Contract markets every Member that applies
and meets the Market Maker Member requirements, and
the Market Maker Agreement records the Member's acknowledgement that its
obligation to return Principal plus Reward is unsecured and sets out the terms
on which the designation ends. Any Member may act as Taker. The venue
publishes the rule in force per market as `swapWriterEligibility` on `GET
/v1/instruments` (`MARKET_MAKER` once enforced, code 3013 otherwise; `ANY`
while the sandbox has not activated it). A Member's ability to trade may be
restricted under the Rulebook (suspension, reduce-only, default management),
or its Market Maker designation may have ended, in which case it can neither
post nor accept Offers as the case may be, and its standing Offers are refused
at the next acceptance attempt and withdrawn.

7.2 A Member's Market Segments configuration applies: an Offer is shown to,
and may be accepted by, only those Members that are mutually eligible with
the Writer. Neither party learns the identity of the other.

## 8. Reporting and records

8.1 Every acceptance is recorded on the Platform, reported to both parties in
their execution records with the rate in place of a price and the Company's
fees, and kept in the Company's records. Yield Contract markets are subject to
the transaction reporting and order record-keeping obligations that apply to
the Company's other Financial Instruments (the Company's classification of 10
September 2026; the Company's reporting record admits the Yield Contract
markets from the date it announces); the Company keeps its own records of
every Offer, acceptance and settlement.

## 9. Shortfall at Maturity, claims and the Writer block

9.1 If, at Maturity, the Writer's freely available balance in the Asset (nil
while the Writer is in default management under the Rulebook: in liquidation,
in default, or with an open unwind) is below the Amount Due, the Platform
pays the Taker the available part and records the remainder as a **claim** of
the Taker against the Writer under the Contract. The Contract is then in
DEFAULTED status.

9.2 While any Contract written by a Member carries an outstanding claim, that
Member may not post a new Offer on any Yield Contract market, and its standing Offers
are withdrawn. The block is lifted automatically when the last such claim is
paid in full.

9.3 The Platform retries every outstanding claim continuously (at each
settlement cycle, at least once per second) from whatever balance the Writer
then holds freely available in the Asset, paying the Taker in the order the
Contracts were created, and closes a Contract as CURED when its claim is paid
to zero. Each partial payment is reported to both parties.

9.4 The Company's role in a shortfall is limited to the mechanics in this
Section. The Company does not itself pay a claim, does not hold collateral
against it, and does not pursue the Writer on the Taker's behalf; the claim
remains an obligation of the Writer toward the Taker. On the Taker's written
request the Company will identify to the Taker the Writer of a Contract in
DEFAULTED status. Members that offer Yield Contract markets to their own
clients must disclose this to them.

9.5 While the Writer is in default management no amount is paid out under a
Contract. An Amount Due falling in that period is recorded in full as a claim
and is paid on the first settlement cycle after default management ends, from
the Writer's then freely available balance in the Asset. The Company pays no
claim from its own funds (Section 9.4). This Section is without prejudice to
the Company's powers under the Rulebook's Liquidation of Positions and
Default of a Member provisions.

## 10. Removal from trading

10.1 If the Company removes a Yield Contract market from trading under the Rulebook,
every open Contract on it is settled at the Principal plus the Reward accrued
pro rata for the whole days elapsed since acceptance (rounded down, and never
more than the full Reward), in the Asset, with Section 9 applying to any
shortfall. Outstanding claims survive the removal until paid.

## 11. Fees

11.1 The Company charges its maker fee to the Writer and its taker fee to the
Taker on the Principal of every acceptance, in the Asset, at the rates
published in the Trading Parameters, at the time of the acceptance. No fee is
charged at Maturity, on a claim payment or on a settlement under Section 10.
Fee tiers and fee programmes under the Company's fee schedule do not apply to
Contracts on Yield Contract markets: every Member pays the rates published in
the Trading Parameters for the market.

## 12. Risk information

12.1 A Taker bears the credit risk of the Writer for the full Amount Due: the
Writer's obligation is unsecured, the Company holds no collateral against it,
and a shortfall at Maturity becomes a claim whose payment depends on the
Writer's later balance. A Taker also bears the market risk of the Asset for
the tenor: the Principal is returned in the Asset, whatever the Asset's value
in any other currency at Maturity. There is no early termination. Members are
referred to the risk information provisions of the Rulebook and remain
responsible for their own assessment and for any obligations toward their
underlying clients.

## 13. Trading Hours

13.1 Every market listed in Section 2 of this Specification trades continuously,
24 hours a day, every calendar day of the year, weekends and public holidays
included. There is no daily open, close or auction on these markets (a
SECURITY market with an auction schedule is governed by its own specification
and by section 6j of the Member Documentation). Trading in a market is
interrupted only by a
suspension, halt or removal under Section 11 of the Rulebook (including a
venue-wide suspension), by the circuit breaker under Section 13 of the
Rulebook, or by the reduce-only and post-only sessions described in the
Member Documentation. The Company operates no daily or weekly closure. The
only scheduled interruption is the venue's standard maintenance window,
Saturday 02:00 to 06:00 UTC, published under this Section as a standing
exception to the trading hours; maintenance inside it is announced at least
48 hours in advance on the Website and in the member portal. Most releases
are rolling and need no window; a release that needs one keeps the restart
contract of section 10.7 of the Member API reference (advisory frame, close
1001, 503 with Retry-After, FIX Logout, cursor backfill). A release that
requires the Platform to stop is announced on the Website at least five
Business Days before the window (Business Day as defined in the Rulebook),
naming the date, the start time in UTC and the expected duration. A scheduled
closure outside that window is published on the Website in advance under this
Section with the notice the Rulebook requires for a material amendment; an
unplanned stop is a suspension under Section 11 of the Rulebook. The current
trading state of each market is published at all times on `GET /v1/status`,
`GET /v1/instruments` and the `venueEvents` channel. Funding on perpetual
contracts settles on the schedule published per market (an 8 hour UTC grid,
or one local-time window per calendar day for the daily-settled markets)
whether or not the underlying reference market is open. Daily allowances and
daily flow statements are kept per UTC calendar day. A connection
interruption during a software release (the venue restart advisory) is not a
closure: orders, positions and contracts persist and the market resumes in
the trading state it had.

## 14. Amendments

14.1 The Company may amend these contract specifications in accordance with
the amendment procedure of the Rulebook. Amendments are published on the
Website and through the documentation site; where the Rulebook requires
notice, the notice period stated there applies. Changes to Trading Parameters
are made under Section 6 of this document and do not constitute an amendment
of these specifications; a change of the Quantity Step of a listed market is
made only by the re-listing of Section 6.4.

14.2 These specifications are governed by the governing law provisions of the
Rulebook.

**Changes in Draft 0.3 (20 October 2026).** A change of the Quantity Step of a
listed market is a re-listing (member API revision 3.83, section 2a): Section
6.2 excepts it from the Trading Parameters amended in place, the new Section
6.4 states the advance announcement, the removal under Section 10 with every
Offer withdrawn and every open Contract settled, and the new listing under the
announced symbol, and Section 14.1 carries the cross-reference. Draft 0.2 made
the Quantity Step amendable like any other Trading Parameter, which read as a
change in place. No other term changes. The DRAFT banner is unchanged.

---

*PM MTF Ltd. This document is part of the Kronos X member documentation set
and is revision-controlled alongside the member API reference (revision 3.83).*