Alternative Settlement Events

Alternative settlement events and methodologies for Pre-IPO Perpetuals by trade[XYZ].

IPOP markets are designed to operate during the period leading up to an expected listing. Each market includes parameters for scenarios in which the anticipated listing does not occur as expected:

• 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 unforeseen events including repeated or significant delays.

• Listing Grace Period: The period after the Anticipated Listing Date during which a postponement, deferral, or failure to list does not by itself constitute extraordinary delay or trigger alternative settlement.

Unless the applicable market specifications state otherwise, the default alternative settlement price is the time-weighted average price, or TWAP, of the IPOP market from market launch through the settlement date. A full-period TWAP is intended to reflect price discovery over the life of the market rather than a short lookback window or a single price. 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

The xyz deployment may use another methodology where the default full-period TWAP would not reasonably reflect fair value at settlement. Examples include:

• Transaction Events: The referenced issuer is acquired, taken private, recapitalized, or completes another transaction that establishes a transaction price before or instead of a public listing. 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 a non-standard listing outcome will be stated 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

1. Trading begins on May 1 at an initial reference price.

2. If the issuer lists on or before July 29, the market may convert to a standard externally priced perpetual in accordance with its specifications.

3. If the issuer has not listed and no revised near-term listing is reasonably expected, the market may use alternative settlement on or after July 29.

4. Unless another methodology is announced, the settlement price is the market’s TWAP from May 1 through the settlement date.