Exchange Trading Rules

1.Purpose & scope

These Exchange Trading Rules (the "Rules") govern all trading activity on the FUDEX.IO peer-to-peer exchange operated by Fudex DAO, LLC, a Wyoming Corporation ("FUDEX"). They apply to every registered member and form part of the Terms of Service. Capitalized terms not defined here have the meaning given in the Terms.

2.Market structure

• Instruments. Only tokenized funds listed by FUDEX (ERC-3643 book-entry securities) may be traded, quoted against USDC.
• Trading model. All trades occur by one member accepting another member's open offer. There is no matching engine, no order queue, and no priority rules — an offer belongs to the first member who validly accepts it.
• Settlement. Every trade settles wallet-to-wallet through the platform escrow contract, and every settlement is reported automatically to Empire Stock Transfer, the custodian of record.
• Hours. The market operates 24/7. Oracle NAV updates may pause outside underlying market hours (Section 7).

3.Membership & access

• Unregistered visitors may view fund information only.
• Trading, posting offers, deposits and withdrawals require a registered account, completed identity verification (KYC), and a wallet on the ERC-3643 whitelist.
• Each natural person may hold one membership. Operating multiple accounts, or trading on behalf of an unverified third party, is prohibited.
• Members must keep contact details current; changing a verified email or mobile number triggers re-verification, during which trading is paused.

4.Offers

• An offer states: side (buy or sell), fixed price in USDC, minimum and maximum trade size, and a settlement window.
• Offers are firm: while open, you must honor any valid acceptance within your stated limits.
• You may withdraw an open offer at any time before it is accepted. Withdrawal after acceptance is a settlement failure (Section 9).
• You must have sufficient balance to cover your offer's maximum: tokens for sell offers, USDC for buy offers. Balances backing an accepted trade are locked immediately.
• Offer limits per member (maximum open offers, per-trade caps) are shown in your Account and may vary with verification tier.

5.Trade formation

1. A member selects a counterparty's offer and specifies an amount within the offer's limits.
2. On confirmation, a binding trade forms at the offer's fixed price — no renegotiation.
3. Both legs (tokens and USDC) are locked into the escrow contract.
4. The trade settles per Section 6. Once settled on-chain, it is final and irreversible.

6.Escrow & settlement

• Instant offers settle automatically once both legs are escrowed — typically within seconds.
• Windowed offers (e.g. "≤ 5 minutes") give the offer's maker that long to release after the taker funds. Failure to release within the window opens a dispute and pauses the maker's other offers.
• Escrowed assets cannot be withdrawn, re-offered or spent while a trade is pending.
• Each settlement is reported to the transfer agent's master registry; your on-chain balance and the registry are reconciled continuously.
• Settlement can only occur between whitelisted wallets — the token contract enforces this; attempts to route around it fail at the protocol level.

7.Pricing & NAV reference

• Members set offer prices freely. The platform displays each fund's oracle NAV and each offer's premium or discount to it for transparency.
• The oracle publishes NAV on-chain at regular intervals; it may lag the underlying fund's official NAV, especially outside the underlying market's hours.
• "Last P2P price" reflects the most recent settled trade and is informational — it is not a quote, and FUDEX does not guarantee any price.
• FUDEX may flag offers priced extremely far from NAV with an additional confirmation step to protect members from fat-finger errors. The flag does not block the trade.

8.Market conduct

The following conduct is prohibited and grounds for suspension or termination:

• Wash trading — trading with yourself or related accounts to fabricate volume or price history.
• Offer spoofing — posting offers you do not intend to honor, or repeatedly withdrawing offers to mislead the market.
• Price manipulation — coordinating offers, settlements or withdrawals to move displayed prices or premiums.
• Reputation manipulation — trades or disputes designed to inflate your metrics or damage another member's.
• Off-platform settlement — agreeing on-platform but settling outside escrow, or soliciting members to trade off-platform.
• Misuse of information — trading on material non-public information about a listed fund or the platform.

We monitor trading activity for these patterns and report suspected market abuse where legally required.

9.Reputation system

Reputation metrics are displayed beside every offer you post. Repeated settlement failures lower your completion rate, can restrict your offer limits, and may lead to suspension.

10.Trade disputes

1. If a counterparty misses a settlement window, the escrow enters dispute state automatically; both sides are notified and the disputed assets remain locked.
2. Either member may also open a dispute from the trade record or via Account → Customer Support.
3. FUDEX support reviews escrow state, on-chain evidence and offer terms, and resolves the dispute by releasing or returning the escrowed assets according to these Rules — typically within 2 business days.
4. Dispute outcomes affect completion rates. Frivolous or abusive disputes are themselves a violation of Section 8.
5. Settled trades cannot be disputed — on-chain settlement is final.

11.Halts, suspensions & delistings

• Market halts. We may pause trading in a fund when its oracle NAV is stale or unreliable, when the underlying fund halts, or when required by law or the transfer agent. Open escrows settle or unwind per Section 10.
• Member suspensions. Accounts may be restricted for verification lapses, suspected market abuse, or settlement failures. Open offers are withdrawn on suspension.
• Delistings. If a fund is delisted, members are notified in advance where possible; remaining holdings are de-tokenized at NAV and proceeds returned to linked bank accounts.

12.Fees & records

A flat 0.20% trading fee applies to each settled trade, displayed before confirmation and deducted at settlement. Trade records — including offer terms, escrow events and settlement confirmations — are available in your Portfolio and retained per our Privacy Notice. Fee changes are prospective and notified in advance.

13.Amendments

We may amend these Rules to reflect platform, market or regulatory changes. Material changes will be announced in-app and by email before taking effect; continued trading after the effective date constitutes acceptance. Questions about these Rules: trading@fudex.io or Account → Customer Support → "P2P trading".