Alternative Events

Extraordinary events, IPO cancellations, and alternative settlement.

IPOP markets are designed to operate through the period leading up to an expected listing. Each market is configured with two parameters that govern non-listing scenarios:

• Anticipated Listing Date: The expected public listing date. This date may reflect an estimate, it may differ from the actual listing date, and the estimate itself may be subject to change. The anticipated listing date may be referenced for alternative settlement on the basis of Extraordinary Delay, to prevent an IPOP market from continuing indefinitely in the wake if unforseen events including repeated or significant delays.

• Listing Grace Period: The period following the Scheduled Listing Date during which a postponement, deferral or non-occurrence of the Listing shall not, by itself, constitute an Extraordinary Delay or otherwise invoke Alternative Settlement.

By default, the alternative settlement price is the time-weighted average price (TWAP) of the IPOP market from the market launch date through the settlement date. This design is intended to reduce reliance on a short lookback window or single point-in-time price and instead reflect the market’s broader price discovery over the full course of price discovery. It will also be applied to the point at which a decision to invoke alternative settlement has been made, such that there is no incentive to trade or manipulate the price to influence alternative settlement once such information has been made available.

Settlement Considerations

XYZ may apply an alternative settlement methodology where the default would not reasonably reflect fair value at settlement. The principal cases:

• Transaction Events: The referenced issuer is acquired, taken private, recapitalized, or otherwise consummates a transaction that establishes a transaction price prior to or in lieu of a public listing, in which case settlement may reference that transaction price. A transaction that does not foreclose a subsequent public listing (such as a partial tender or minority recapitalization) is not expected to trigger settlement on its own.

• Extended IPOP Markets: The market has been active long enough that full-life TWAP no longer reasonably reflects current fair value. Settlement may reference a shorter, more recent TWAP, or another methodology specified in the settlement announcement.

• Adverse Events: The referenced issuer experiences a material adverse event (such as insolvency, regulatory enforcement, or material restatement) that effectively forecloses the expected listing, in which case settlement may reference an alternative price that reflects fair value following the event.

Any alternative methodology, or conversion treatment for non-standard listing outcomes, will be specified in the settlement announcement for the affected market.

Example Settlement

Parameter	Value
IPOP Contract Launch Date	May 1, 2026
Anticipated Listing Date	May 30, 2026
Listing Grace Period	60 days

Step-by-step:

1. On May 1, 2026, an IPOP market launches at a reference price set by XYZ. Trading begins; the market price evolves with order flow.

2. The IPOP's expected listing date is May 30, 2026. The market is configured with an Anticipated Listing Date of May 30, 2026 and a 60-day Grace Period.

3. If the underlying issuer lists by July 29, the market converts to a standard externally-priced perpetual.

4. If the underlying issuer has not completed its public listing by May 30, and there have been no material guidance to suggest a revise near term listing date, the market may resolved via alternative settlement on July 29.

5. During the Listing Grace Period, if the underlying issuer lists, the market may still convert to a standard externally-priced perpetual.

6. The settlement price would be calculated using a TWAP of the underlying issuer's IPOP market price from May 1 through July 29, unless otherwise specified.