# Contract Specifications, USD-Settled Knock-Out (Barrier) 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.

Draft 0.4, 20 October 2026 (Draft 0.3: 30 September 2026;
Draft 0.2: 16 September 2026; Draft 0.1: 10 September 2026). 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 6b, Barrier
markets) and Member Technical Handbook (together the "Member Documentation"),
the Complete Code Reference, and the venue's Statement on Netting Semantics
and the Venue-Initiated Flow (the "Netting Statement").

---

## 1. Status, definitions and interpretation

1.1 This document constitutes the contract specifications for the USD-settled
knock-out (barrier) contracts admitted to trading on the multilateral trading
facility operated by PM MTF Ltd (the "Company") under the trading name Kronos
X (the "Platform").

1.2 Capitalised terms not defined in this document have the meaning given to
them in the Rulebook (Section 3, Definitions and Interpretation). In this
document: a **Contract** is one bilateral knock-out contract created under
Section 3; the **Holder** is the Member that submitted the Request and holds
the Contract; the **Writer** is the Member whose Quote was accepted and that
wrote the Contract; a **Request** is the Holder's request for quotes on a
barrier market, stating the side, the quantity and the terms of Section 4; a
**Quote** is a Writer's firm offer of an Entry price on a Request; an
**Acceptance** is the Holder's acceptance of one Quote, which creates the
Contract; the **Entry** is the accepted Quote's price; the **Barrier** is the
knock-out level on the loss side of the Entry; the **Take Profit** is the
optional termination level on the profit side of the Entry; the **Expiry**
is the optional time at which a Contract that is still open settles; the
**Premium** is the Holder's maximum loss under the Contract, computed and
frozen at Acceptance under Section 5; the **Premium Share** is the share of the
Entry-to-Barrier distance the Premium represents; the **Knock-Out Rebate** is
the part of that distance the Premium does not cover; a **Strict Take Profit**
Contract is a Contract that pays only on a touch of its Take Profit before its
Expiry; an **Early Close** is the termination of a Contract by the Holder's
Request to the Writer under Section 8.5; the **Trading Parameters** are the
per-market values incorporated by reference under Section 7; the **Quantity
Step** is the quantity increment published in the Trading Parameters
(`qtyStep`), on which every quantity of a Request is a decimal multiple; the
**Minimum Notional** is the smallest value of a Request or of a Quote the
Platform accepts, published in the Trading Parameters (`minNotional`) and
applied under Section 6.4.

1.3 In case of conflict, the order of precedence is: (a) the Rulebook, (b)
these contract specifications, (c) the Trading Parameters (Section 7), (d) the
Member Documentation. A more specific numerical value published in the Trading
Parameters prevails over any illustrative value in this document.

1.4 These specifications are issued pursuant to the admission provisions of
the Rulebook (Admission of Financial Instruments to Trading) and form part of
the pre-trade information the Company makes available to Members under the
Rulebook's pre-trade information provisions.

## 2. Instruments covered and symbol convention

2.1 Each barrier market is identified by a symbol of the form `{BASE}-USD-KO`,
where `{BASE}` is the code of the Underlying named in the table of Section
2.2, being a digital asset, a currency, a precious metal, a crude oil benchmark,
an equity index or an exchange rate, and USD is the code of the quotation and settlement
currency (on USDJPY-USD-KO the price is the USD/JPY exchange rate, each point of it valued
1 USD at a fixed rate, Section 4.4). Every barrier market trades by request for quote only (Section 8);
the market mode published for it in the venue instrument reference is `RFQ`.

2.2 The barrier markets currently covered by these specifications, as listed
on the sandbox environment. The production environment lists the perpetual
contracts and the barrier markets; its instrument list differs from the
sandbox's, and the Company confirms it with the go-live listing:

| Symbol | Underlying | Quotation and settlement currency |
|---|---|---|
| BTC-USD-KO | Bitcoin (BTC) | US Dollar (USD) |
| ETH-USD-KO | Ether (ETH) | US Dollar (USD) |
| SOL-USD-KO | Solana (SOL) | US Dollar (USD) |
| BNB-USD-KO | BNB | US Dollar (USD) |
| XRP-USD-KO | XRP | US Dollar (USD) |
| SP500-USD-KO | S&P 500 equity index (one index point) | US Dollar (USD) |
| NDX100-USD-KO | Nasdaq-100 equity index (one index point) | US Dollar (USD) |
| XAU-USD-KO | Gold (one troy ounce) | US Dollar (USD) |
| WTI-USD-KO | WTI crude oil (one barrel) | US Dollar (USD) |
| BRENT-USD-KO | Brent crude oil (one barrel) | US Dollar (USD) |
| EUR-USD-KO | Euro (EUR) | US Dollar (USD) |
| GBP-USD-KO | Pound sterling (GBP) | US Dollar (USD) |
| JPY-USD-KO | Japanese yen (JPY); one unit of the contract is 1,000 Japanese yen, priced in USD per 1,000 JPY | US Dollar (USD) |
| HYPE-USD-KO | HYPE, the native token of the Hyperliquid network | US Dollar (USD) |
| DOGE-USD-KO | Dogecoin (DOGE) | US Dollar (USD) |
| ZEC-USD-KO | Zcash (ZEC) | US Dollar (USD) |
| NEAR-USD-KO | NEAR Protocol (NEAR) | US Dollar (USD) |
| TAO-USD-KO | Bittensor (TAO) | US Dollar (USD) |
| US500-USD-KO | US 500, a US large-cap equity index (one index point; the sandbox reference price source is the trade[XYZ] SP500 perpetual on Hyperliquid) | US Dollar (USD) |
| US100-USD-KO | US Tech 100, a US technology equity index (one index point; the sandbox reference price source is the trade[XYZ] XYZ100 perpetual on Hyperliquid) | US Dollar (USD) |
| XAG-USD-KO | Silver (one troy ounce) | US Dollar (USD) |
| USDJPY-USD-KO | USD/JPY, the exchange rate in Japanese yen per US dollar; one unit of the contract pays 1 USD for each 1.000 move of the rate, at that fixed rate (a quanto, as stated for the perpetual contract in the Contract Specifications, USD-Settled Tradfi Perpetuals) | US Dollar (USD) for settlement; the price is the USD/JPY rate, each point valued 1 USD |

2.3 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 (`GET /v1/instruments`) and the
documentation site (Section 7). ISIN and CFI codes are published there per
instrument; a Contract carries its own identifier as described in the Member
Documentation.

## 3. Nature of the contract

3.1 A Contract is a bilateral, cash-settled knock-out contract between one
Holder and one Writer, created by the Holder's Acceptance of the Writer's
Quote on a Request submitted through the Platform's request for quote
facility. The Holder that submits a `BUY` Request holds long with the Barrier
below the Entry; the Holder that submits a `SELL` Request holds short with the
Barrier above the Entry. The Writer quotes the Entry.

3.2 The Contract terminates AT the Barrier: the first mark price at or past
the Barrier terminates the Contract at the Barrier price whether or not the
mark price gapped through it. The Holder's loss under the Contract is bounded
by the Premium (Section 5), which the Holder pays at Acceptance, and the
Holder is never liquidated on the Contract: no Initial Margin and no
Maintenance Margin is charged to the Holder on it beyond the Premium.

3.3 A Contract may carry an optional Take Profit, at which it terminates on
the profit side in the same way, and an optional Expiry, at which a Contract
that is still open settles at the mark price within its terms. A Strict Take
Profit Contract pays only on a touch of its Take Profit before its Expiry and
forfeits the whole Premium at the Expiry otherwise.

3.4 A Contract is recorded in the Platform's bilateral contract registry. It
is not a Position within the meaning of the Rulebook's margin provisions, it
does not enter open interest, and it is not subject to the Auto Deleveraging
Process. The Writer is margined as a Member on the Contract under Section 9.

3.5 The Company is not a counterparty to any Contract. Contracts arise
between Members upon Acceptance in accordance with the Rulebook's provisions
on the conclusion of Transactions, and the Company acts solely as the operator
of the Platform. Neither party learns the identity of the other (Section 8.6).

3.6 The terms of a Contract cannot be modified after Acceptance. A Holder that
wants different terms cancels an open Request and submits a new one; an open
Contract ends only under Section 10.

## 4. Terms fixed at creation, underlying and price basis

4.1 The following terms are fixed at Acceptance and never change for the life
of the Contract: the side, the quantity, the Entry (the accepted Quote's
price), the Barrier (stated on the Request, on the knock-out side of the mark
price at the Request and of the Entry at the Quote and at Acceptance), the
optional Take Profit (on the profit side of the mark price at the Request and
of the Entry at the Quote and at Acceptance), the optional Expiry, the Strict
Take Profit election, the Premium and the Premium Share (Section 5).

4.2 A Request without an Expiry opens an open-ended Contract that ends only at
the Barrier, at the Take Profit, by an Early Close or under Section 10, on a
market that publishes no maximum contract life; on a market that publishes
one (Section 7.1, `maxContractLifeHours`) every Request must state an Expiry
within that life measured from the Request, and a Request without an Expiry or
beyond it is refused (the Complete Code Reference, code 2027). A Strict Take
Profit Contract always requires a Take Profit and an Expiry within the strict
maximum contract life published for the market.

4.3 The underlying of each Contract is the value of the Underlying expressed in
the settlement currency, as represented by the mark price the Company computes
and publishes for the barrier market, sourced from the same reference price
line as the perpetual contract of the same Underlying; on USDJPY-USD-KO the
underlying is the USD/JPY exchange rate itself, in Japanese yen per US dollar,
each point of it valued 1 USD at a fixed rate and never converted at the
prevailing rate (the quanto of the Contract Specifications, USD-Settled Tradfi
Perpetuals, Section 4.4). The mark price is the
reference for the termination events of Section 10, for the quote guard of
Section 8.4 and for the Writer's margin. The methodology and staleness
safeguards are described in the Member Documentation.

4.4 Prices on the Platform are quoted per one unit of the Underlying (per BTC,
per index point, per troy ounce, per barrel, per unit of the base currency as
stated in Section 2.2; on USDJPY-USD-KO the price is the USD/JPY rate and one
unit is one point of it valued 1 USD, Section 4.3) and move on the price increment (tick) published in the
Trading Parameters, displayed as Tick Size. Quantities are decimal numbers of
units of the Underlying on the Quantity Step of the market (Section 6.2); an
integer quantity is always on the step.

## 5. Premium, knock-out rebate and strict take profit

5.1 The Premium is a frozen share of the Entry-to-Barrier distance:

```
Premium = |Entry - Barrier| x quantity x Premium Share / 10,000
```

in the settlement currency, where the Premium Share is stated in basis points.
On an ordinary Contract the Premium Share is `10000 - knockOutRebateBps` of the
market; on a Strict Take Profit Contract it is the market's
`strictTakeProfitPremiumBps`. A Writer may quote its own higher Premium Share
on a Request, never a lower one (member API reference, revision 3.58). The
Premium is reserved from the Holder's account at Acceptance as the Holder's
whole requirement under the Contract (Section 9.2); at the Barrier the Holder
pays exactly the Premium and the Writer receives it. The Knock-Out Rebate is
the part of the Entry-to-Barrier distance the Holder does not pay for.

5.2 `knockOutRebateBps` and `strictTakeProfitPremiumBps` are published per
market on `GET /v1/instruments`. Every market listed in Section 2.2 carries a
Knock-Out Rebate of 1,000 basis points (an ordinary Premium Share of 9,000
basis points, 90 percent of the distance) and a strict Premium Share of 5,000
basis points (50 percent of the distance) at the date of this draft. Both
values are frozen on the Contract at Acceptance; a change of either re-prices
Contracts created after its publication only and never an existing Contract.

## 6. Settlement asset and contract size

6.1 The settlement currency of every Contract covered by this document is the
US Dollar (USD). The Premium is paid, margin is provided, profit and loss is
settled and fees are charged exclusively in the settlement currency.

6.2 The quantity of a Contract is a decimal number of units of the Underlying
(an index point, a troy ounce, a barrel, a unit of the base currency, 1,000
Japanese yen on JPY-USD-KO, one point of the USD/JPY rate valued 1 USD on
USDJPY-USD-KO, or a unit of the digital asset), priced in the
settlement currency, on the Quantity Step of the barrier market, which is the
Quantity Step of the perpetual contract of the same Underlying listed on the
Platform (Section 7.2). One unit of quantity is one unit of the Underlying:
the contract multiplier is 1 on every barrier market and is published as
contractMultiplier in the venue instrument reference (GET /v1/instruments) as
confirmation of this term; fractional quantities arise from the Quantity Step
alone and never from the multiplier. Where the Company reports positions in
lots under Article 58 of Directive 2014/65/EU, a lot on a barrier market is
one Quantity Step of a unit of the Underlying, the basis on which the
perpetual contract of the same Underlying is reported.

6.3 The notional value of a Contract, its Premium and every settlement amount
under it are the applicable price or price distance multiplied by the
quantity, in the settlement currency: the notional is the Entry times the
quantity, the Premium is computed under Section 5.1, and a termination pays
the distance between the Entry and the termination price times the quantity,
bounded by the Premium on the loss side.

6.4 The Minimum Notional is 100 USD on every market listed in Section 2.2
(Section 7.2). A Request whose quantity is not an exact multiple of the
Quantity Step, or whose notional value is below the Minimum Notional, is
rejected by the Platform in accordance with the Rulebook (Section 26,
Rejection or Cancellation of Orders or Quotes by the Company), and so is a
Quote whose notional value is below it. The notional value is the quantity
times the mark price on an opening Request, the quantity times the Entry on
every Quote, and, on a close Request under Section 8.5, the whole quantity of
the Contract times the mark price (the Writer's close Quote at its price), so
that a Contract whose whole quantity is worth less than the Minimum Notional
at the mark price ends at its Barrier, its Take Profit or its Expiry and not
by an Early Close. The Minimum Notional does not apply to a Contract's
termination under Section 10, so that a Contract of any size always settles.

## 7. Trading Parameters incorporated by reference

7.1 The following per-market values are 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: Tick Size;
Quantity Step (the Quantity Step of the perpetual contract of the same
Underlying, Section 6.2); Minimum Quantity; Minimum Notional; maximum order
size and
maximum position size (which may be expressed in base-asset units or in
notional value); the Knock-Out Rebate (`knockOutRebateBps`) and the strict
Premium Share (`strictTakeProfitPremiumBps`); the strict take-profit maximum
contract life (`strictTakeProfitMaxLifeHours`, 24 hours unless the market
publishes its own); the maximum contract life of an opening Request
(`maxContractLifeHours`, Section 7.4); the quote guard band and floors
published as `barrierGuard` (`entryBandBps`, `minTakeProfitBps`,
`minBarrierBps`) and the mark price staleness timeout
(`staleMarkTimeoutSec`), all applied under Section 8.4; the margin tier
schedule of the market (the Writer's margin, Section 9); maker and taker fee
rates; the trading state of the instrument; and the trading hours of the
market. The contract multiplier of Section 6.2 is not a Trading Parameter; it
is a term of these specifications and changes only under Section 15. The Tick
Size and the Quantity Step of a listed market, and with them the Minimum
Quantity, which equals the Quantity Step, are changed only by a re-listing
under Section 7.5, never in place.

7.2 The Company publishes the prevailing Trading Parameters at all times
through the API (`GET /v1/instruments`) and the documentation site. Members
are responsible for ensuring that they are aware of the prevailing values (the
Rulebook's margin provisions in respect of margin parameters, and its
pre-trade information provisions in respect of pre-trade information). The
Trading Parameters of the sandbox listing at the date of this draft are:

| Symbol | Tick Size | Quantity Step (`qtyStep`) | Minimum Notional (`minNotional`) | Opening-accept quote band (`barrierGuard.entryBandBps`, basis points of the mark) | Take-profit distance floor (`barrierGuard.minTakeProfitBps`) | Barrier distance floor (`barrierGuard.minBarrierBps`) | Mark staleness (`staleMarkTimeoutSec`) | Maximum contract life (`maxContractLifeHours`) |
|---|---|---|---|---|---|---|---|---|
| BTC-USD-KO | 0.5 | 0.0001 | 100 USD | 50 | 10 | 10 | 60 s | 8,784 h (366 days) |
| ETH-USD-KO | 0.05 | 0.001 | 100 USD | 50 | 10 | 10 | 60 s | 8,784 h (366 days) |
| SOL-USD-KO | 0.01 | 0.01 | 100 USD | 50 | 10 | 10 | 60 s | 8,784 h (366 days) |
| BNB-USD-KO | 0.05 | 0.001 | 100 USD | 50 | 10 | 10 | 60 s | 8,784 h (366 days) |
| XRP-USD-KO | 0.0001 | 1 | 100 USD | 50 | 10 | 10 | 60 s | 8,784 h (366 days) |
| SP500-USD-KO | 0.1 | 0.001 | 100 USD | 30 | 10 | 10 | 60 s | 8,784 h (366 days) |
| NDX100-USD-KO | 0.1 | 0.001 | 100 USD | 30 | 10 | 10 | 60 s | 8,784 h (366 days) |
| XAU-USD-KO | 0.1 | 0.001 | 100 USD | 30 | 10 | 10 | 60 s | 8,784 h (366 days) |
| WTI-USD-KO | 0.001 | 0.01 | 100 USD | 50 | 10 | 10 | 60 s | 8,784 h (366 days) |
| BRENT-USD-KO | 0.001 | 0.01 | 100 USD | 50 | 10 | 10 | 60 s | 8,784 h (366 days) |
| EUR-USD-KO | 0.0001 | 1 | 100 USD | 20 | 10 | 10 | 60 s | 8,784 h (366 days) |
| GBP-USD-KO | 0.0001 | 1 | 100 USD | 20 | 10 | 10 | 60 s | 8,784 h (366 days) |
| JPY-USD-KO | 0.0001 | 1 (= 1,000 JPY) | 100 USD | 20 | 10 | 10 | 60 s | 8,784 h (366 days) |
| HYPE-USD-KO | 0.01 | 0.01 | 100 USD | 50 | 10 | 10 | 60 s | 8,784 h (366 days) |
| DOGE-USD-KO | 0.00001 | 1 | 100 USD | 50 | 10 | 10 | 60 s | 8,784 h (366 days) |
| ZEC-USD-KO | 0.05 | 0.001 | 100 USD | 50 | 10 | 10 | 60 s | 8,784 h (366 days) |
| NEAR-USD-KO | 0.0001 | 1 | 100 USD | 50 | 10 | 10 | 60 s | 8,784 h (366 days) |
| TAO-USD-KO | 0.01 | 0.01 | 100 USD | 50 | 10 | 10 | 60 s | 8,784 h (366 days) |
| US500-USD-KO | 0.1 | 0.001 | 100 USD | 30 | 10 | 10 | 60 s | 8,784 h (366 days) |
| US100-USD-KO | 0.1 | 0.001 | 100 USD | 30 | 10 | 10 | 60 s | 8,784 h (366 days) |
| XAG-USD-KO | 0.001 | 0.01 | 100 USD | 50 | 10 | 10 | 60 s | 8,784 h (366 days) |
| USDJPY-USD-KO | 0.001 | 0.01 (quanto, 1 USD per 1.000) | 100 USD | 20 | 10 | 10 | 60 s | 8,784 h (366 days) |

The nine rows from HYPE-USD-KO are the sandbox listing of 30 September 2026,
in force from the date venue operations announce their listing on the
environment; SP500-USD-KO, NDX100-USD-KO, BNB-USD-KO, BRENT-USD-KO and
JPY-USD-KO stay listed beside them. Each value in the table is the value published on `GET /v1/instruments`
(`qtyStep`, `minNotional`, `barrierGuard`, `staleMarkTimeoutSec`,
`maxContractLifeHours`) and is applied at the Acceptance of an opening
Request, or at the Request for the maximum contract life, from the date venue
operations announce its activation on the environment (the rejection codes
2039 to 2043 and 2027 are described in the member API reference, section 6b,
and in the Complete Code Reference). The Quantity Step and the Minimum
Notional of the table apply on the sandbox environment from the re-listing
date venue operations announce (of the thirteen markets listed before Draft
0.3, the nine whose perpetual contract trades fractional units are re-listed
under Section 7.5 with their symbols unchanged and the other four take the
Minimum Notional in place; the nine rows from HYPE-USD-KO list
with these values from their first day;
the rejection codes 2002 and 2028) and on the production environment from the
listing; until that date a sandbox market still serving the earlier listing
publishes a Quantity Step of 1 and a Minimum Notional of 5 USD, and the value
in force is always the published one. The
Knock-Out Rebate, the strict Premium Share and the strict maximum contract
life are stated in Sections 5.2 and 7.1. The figure in force is always the
published one: where this table and the published value differ, the published
value prevails (Section 1.3).

7.3 The band of a market is 50 basis points at listing. After 30 days of mark
prices on a market the Company sets its band to the smallest multiple of 10
basis points at or above the 99th percentile of the market's mark price
movement over its staleness window (60 seconds),
never below 20 and never above 50 basis points. On the sandbox environment the
Company has set the band of the currency markets at 20 and of the gold and
equity index markets at 30 basis points (the table of Section 7.2), and a new
market of the currency or equity index class lists at its class band:
USDJPY-USD-KO at 20 and US500-USD-KO and US100-USD-KO at 30 basis points from
their first day; every other market of the sandbox listing of 30 September
2026, XAG-USD-KO included, lists at 50. The minimum distances of the
take profit and of the barrier from the entry price are 10 basis points of
the entry price on every market. A change of the band applies to acceptances
after its publication through the API and never re-prices an existing
Contract. The band is a value
of the market, identical for every Member, and a change of it is announced
and takes effect on the notice track the Rulebook provides for a change of
Trading Parameters (seven Business Days).

7.4 Maximum contract life: 8,784 hours (366 days), measured from the Request;
a Request without an Expiry or beyond it is refused. The ground recorded for
this term is that an open-ended contract is an unfunded writer carry with no
tenor pricing; the operator has not admitted that product term. The value is
published at all times through the API (`GET /v1/instruments`,
`maxContractLifeHours`) and the documentation site, applies to Requests
submitted after its activation on the environment, and never affects a
Contract already open or a close Request. A market that publishes no maximum
contract life admits open-ended Contracts (Section 4.2).

7.5 Every Request, Quote and open Contract on a barrier market is held on its
Tick Size and Quantity Step, so the Company does not change either value on a
listed market in place. A change of either 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 values and the date. On that date the market
is removed from trading under Section 10.4: every open Contract on it is
terminated with the termination reason FINAL_SETTLEMENT within its terms, and
no Request on it can be quoted or accepted any more. The market is then listed
again with the new values, under the symbol named in the announcement, and
Contracts opened on it carry the new values from their Acceptance. The Minimum
Notional and the other Trading Parameters of Section 7.1 may be amended
without a re-listing.

## 8. Trading model, quotes and acceptance

8.1 Contracts are created by request for quote only, under the Trading Rules
of the Rulebook as applied to request-for-quote trading. There is no central
limit order book on a barrier market.

8.2 A Quote is a firm offer of an Entry price for the quantity and terms of
the Request, valid for the period the Writer states within the bounds
published in the Member Documentation. The Platform shows every open Request
to the Members eligible to quote it without naming the Holder, and shows every
Quote to the Holder without naming the Writer. A Writer may withdraw or
replace its Quote before it is accepted.

8.3 Only the Holder's Acceptance of one Quote concludes a Transaction and
creates the Contract; a Request closes on Acceptance, on cancellation or at
the end of its quoting window.

8.4 The Platform will not execute the acceptance of a quote for a knock-out
contract where the quoted entry price deviates from the prevailing mark price
by more than the band published for that market on the Website and via the
API, or while no current mark price is available, or where the take profit or
the barrier lies closer to the entry price than the published minimum
distance. A refused acceptance leaves the RFQ and the quote open. The same
guard refuses the acceptance of a quote whose Take Profit the mark price has
already reached or whose Barrier the mark price has already reached or
crossed. A distance exactly at the floor is admitted, and the early close of
Section 8.5 is not subject to the band. The values in force are published per
market as `barrierGuard` and `staleMarkTimeoutSec` on `GET /v1/instruments`
(Section 7.2); the refusal codes are 2039 (band or no current mark price),
2040 and 2043 (a level already reached), 2041 and 2042 (a distance below the
floor), each described in the Complete Code Reference.

8.5 The Holder may close an open Contract early by a close Request addressed
through the Platform to the Contract's Writer only. Only the Writer may quote
the close Request, at a price strictly inside the Contract's terms (between
the Barrier and the Take Profit, or on the profit side of the Barrier where
there is no Take Profit); the Holder's Acceptance closes the Contract AT that
price with the termination reason EARLY_CLOSE. A close Request and the
Writer's close Quote are subject to the Minimum Notional and to the maximum
order size at the Contract's whole quantity (Section 6.4); a Contract outside
either bound ends under Section 10 and not by an Early Close. A knock-out, a
take-profit termination, an Expiry or a termination under Section 10 while a
close Request is open cancels the close Request.

8.6 Requests, Quotes and Acceptances are anonymous: the Holder never learns
which Member wrote the Contract and the Writer never learns which Member holds
it. A Member's Market Segments configuration applies: a Request is shown to,
and may be quoted by, only those Members that are mutually eligible with the
Holder, and a Member whose ability to trade is restricted under the Rulebook
(suspension, reduce-only, default management) can neither open a Request nor
have its Quote accepted, as the case may be.

## 9. Writer margin and default management

9.1 The Writer is margined as a Member on every Contract it has written, on
the margin tier schedule published for the market and bounded by the
Contract's Take Profit distance where one exists, in accordance with the
margin provisions of the Rulebook. Margin is calculated at the level of the
Member.

9.2 The Holder's requirement under a Contract is the Premium, reserved at
Acceptance and thereafter tracking the remaining Entry-to-Barrier distance
less the Knock-Out Rebate, so that an unrealised loss and the released
requirement cancel tick for tick: no margin call ever arises from the
Contract's own mark-to-market and a Holder is never liquidated on a Contract;
the knock-out is the Holder's close-out. Losses elsewhere in a Member's
account are the only thing that can end its Contracts early (Section 9.3).

9.3 If a Member's Available Funds fall below its Maintenance Margin, the
Company applies the liquidation process of the Rulebook (Section 20,
Liquidation of Positions) to the Member's Positions and, as part of it,
terminates every Contract that Member holds or has written under Section 10.1
(TEAR_UP) at the mark price within each Contract's terms. The Auto
Deleveraging Process does not apply to Contracts. The operational behaviour,
including the allocation of venue-initiated closes across a Member's
reporting identifiers, is described in the Netting Statement, which is
incorporated by reference.

## 10. Termination and settlement

10.1 A Contract terminates on the first of the following events and settles
in the settlement currency between the Holder and the Writer, the Company not
being a party:

| Event | Termination reason published | Settlement |
|---|---|---|
| The first mark price at or past the Barrier | KNOCK_OUT | AT the Barrier price: the Holder loses the Premium and the Writer receives it; the Knock-Out Rebate is not paid by either party. No fee. |
| The first mark price at or past the Take Profit | TAKE_PROFIT | AT the Take Profit price: the Writer pays the Holder the Entry-to-Take-Profit distance times the quantity. No fee. |
| The Expiry, on a Contract still open | EXPIRY | At the mark price on the first price tick at or past the Expiry, within the Contract's terms: the Holder's result is floored at minus the Premium and capped at the Take Profit distance; on a Strict Take Profit Contract the whole Premium is forfeited whatever the mark price. No fee. |
| The Holder's Acceptance of the Writer's close quote (Section 8.5) | EARLY_CLOSE | AT the Writer's quoted price, within the Contract's terms; maker and taker fees as on the opening Acceptance (Section 11). |
| The liquidation of the Holder or of the Writer under the Rulebook (Section 9.3) | TEAR_UP | At the mark price within the Contract's terms, as at an Expiry: the Holder's result is floored at minus the Premium and capped at the Take Profit distance. No fee. |
| The removal of the market from trading or another termination initiated by the Company under the Rulebook (Section 10.4) | FINAL_SETTLEMENT | At the fair settlement price the Company determines, within the Contract's terms. No fee. |

10.2 Every settlement under Section 10.1 is zero-sum between the Holder and
the Writer: the amount debited from one party is the amount credited to the
other, and it is recorded in each Member's ledger with the termination reason
published in the Member Documentation.

10.3 The Company's calculations of the Premium, of profit and loss and of
collateral are binding and final as provided in the Rulebook's settlement
provisions.

10.4 If the Company removes a barrier market from trading under the Rulebook,
every open Contract on it is terminated under Section 10.1 (FINAL_SETTLEMENT)
at a fair settlement price the Company determines within the Contract's terms,
and a close Request open on such a Contract ends with it. Every other Request
open on the market stays open but can no longer be quoted or accepted, and
closes under Section 8.3 on cancellation or at the end of its quoting window.

## 11. Fees

11.1 The Company charges its maker fee to the Writer and its taker fee to the
Holder on the notional of the opening Acceptance and, in the same way, on an
Early Close, at the rates published in the fee schedule and the Trading
Parameters, in accordance with the fee provisions of the Rulebook. No fee is
charged on a knock-out, a take-profit termination, an Expiry or a termination
under Section 10.4. Fees are charged in the settlement currency at the time
of each execution and recorded in the Member's ledger.

## 12. Reporting and records

12.1 Every Acceptance is recorded as a Transaction on the Platform and
reported to both parties in their execution records with the Company's fees.
Contracts on the markets of Section 2.2 are within the scope of the Company's
transaction reporting and reference data obligations as a trading venue; the
Company reports them under its own identifier scheme for barrier contracts as
described in the Member Documentation, and keeps its own records of every
Request, Quote, Acceptance and termination.

## 13. Risk information

13.1 A Holder's loss under a Contract is bounded by the Premium, which is paid
in full at Acceptance and is lost in full at the Barrier; a Strict Take Profit
Contract loses the whole Premium at its Expiry without a touch of the Take
Profit whatever the mark price. A Writer's exposure is the whole
Entry-to-Take-Profit distance times the quantity where a Take Profit exists
and is otherwise bounded only by the movement of the Underlying's price; a
Writer receives at most the Premium (the Entry-to-Barrier distance less the
Knock-Out Rebate, times the quantity) and bears the market risk of the
Underlying for the life of the Contract. Because a Contract terminates AT the
level on the first mark price
at or past it, a Contract whose Barrier or Take Profit sits close to the Entry
can terminate on ordinary price noise within seconds of its creation; the
minimum distances and the quote band of Section 8.4 exist to refuse such
Contracts, and Members remain responsible for the levels they request and
quote. 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.

## 14. Trading Hours

14.1 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. On a barrier market whose
Underlying's reference market is closed (the currency, index, metal and oil
markets over their weekends), the mark price stops ticking, becomes stale
after the published staleness timeout and every opening Acceptance is refused
under Section 8.4 until it resumes; open Contracts persist and their
termination events resume with the mark price. A connection interruption
during a software release (the venue restart advisory) is not a closure:
Requests, Quotes and Contracts persist and the market resumes in the trading
state it had.

## 15. Amendments

15.1 The Company may amend these contract specifications in accordance with
the amendment procedure of the Rulebook (Amendments to the Rules). This
includes the contract multiplier term of Section 6.2. 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 7 of this document and do not
constitute an amendment of these specifications; a change of the Tick Size or
the Quantity Step of a listed market is made only by the re-listing of Section
7.5.

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

**Changes in Draft 0.2 (16 September 2026).** Fractional quantities on the
Quantity Step of the perpetual contract of the same Underlying and the
Minimum Notional of 100 USD, on the operator's instruction of 16 September
2026: Section 1.2 defines the Quantity Step and the Minimum Notional; Section
4.4 states that quantities are decimal numbers of units on the Quantity Step;
Section 6.2 states the quantity as a decimal number of units on the Quantity
Step of the perpetual contract of the same Underlying, keeps the contract
multiplier of 1 as confirmation that one unit of quantity is one unit of the
Underlying and states the lot basis of the Company's position reporting;
Section 6.4 states the Minimum Notional of 100 USD, where it is valued (the
mark price on an opening Request, the Entry on every Quote, the whole quantity
of the Contract at the mark price on a close Request) and its consequence for
a Contract below it, termination never being floored; Section 7.1 ties the
Quantity Step to the perpetual contract; the table of Section 7.2 gains the
Quantity Step and Minimum Notional columns with the activation sentence;
Section 8.5 carries the cross-reference. Draft 0.1 described one contract as
one whole unit of the Underlying with a Minimum Notional of 5 USD. The DRAFT
banner is unchanged: this document remains subject to the review of the Head
of Legal and is not yet in force.

**Changes in Draft 0.3 (30 September 2026).** The sandbox listing of 30
September 2026 on the operator's decisions of that day: Section 2.1 names an
exchange rate among the Underlyings; the tables of Sections 2.2 and 7.2 gain
the nine barrier markets HYPE-USD-KO, DOGE-USD-KO, ZEC-USD-KO, NEAR-USD-KO,
TAO-USD-KO, US500-USD-KO, US100-USD-KO, XAG-USD-KO and USDJPY-USD-KO, the two
equity index markets described neutrally with their sandbox reference price
source named, and USDJPY-USD-KO paying a fixed 1 USD per 1.000 of the
USD/JPY rate; Sections 2.1, 4.3, 4.4 and 6.2 carry the quanto's carve-out (its
price is the USD/JPY rate, one unit a point valued 1 USD); Section 7.2 carries
the activation sentence of those rows and says which markets the re-listing
sentence concerns; Section 7.3 states the class band at which a sandbox market
of a calibrated class lists. No existing row or Trading Parameter changes, and
no term changes for any other market. The DRAFT banner is unchanged.

**Changes in Draft 0.4 (20 October 2026).** Member API revision 3.83: Section
2.2 states that the production environment lists the perpetual contracts and
the barrier markets, its instrument list confirmed with the go-live listing
(Draft 0.3 called the production listing pending); Section 7.1 states that
the Tick Size and the Quantity Step, and with them the Minimum Quantity, change
only by the re-listing of the new Section 7.5 (the advance announcement, the
removal under Section 10.4 with the final settlement of every open Contract,
and the new listing under the announced symbol); Section 7.2 names the
re-listing of the nine fractional markets as one under Section 7.5 instead of
by internal instrument identifiers, which no member surface serves; Section
10.4 states what the Platform does with a Request open at the removal of a
market (a close Request ends with its Contract, every other Request stays open
but can no longer be quoted or accepted and closes under Section 8.3), where
Draft 0.3 said that every open Request and close Request was cancelled, which
the Platform does not do; Section 15.1 carries the cross-reference. No row and
no other term changes. The DRAFT banner is unchanged.

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*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).*