LCT

Exchange Trading Rules

1. Introduction

1)These exchange trading rules (“Rules”) specify the requirements and conditions for Users to trade on the Virtual Asset exchange platform, mobile application, or other platforms (collectively, “Platform”) operated by LCT GLOBAL FZE (“LCT”), a company established in the Emirate of Dubai.

2)These Rules govern the use of the Platform, including access to the Order Book and the Orders placed via the Platform.

3)Capitalized terms not defined herein shall have the meanings ascribed to them in the LCT User Agreement (“User Agreement”) entered into between the User and LCT.

4)Each User expressly agrees to be bound by and comply with these Rules and any rules, procedures, notices, instructions, or directions issued by LCT pursuant to these Rules

5)Users must read and acknowledge the Risk Disclosure Statement before trading on the Platform.

6)These Rules form part of the User Agreement entered into between each User and LCT. In the event of any conflict between these Rules and the User Agreement, these Rules shall prevail.

7)These Rules, together with the User Agreement and the Risk Disclosure Statement, constitute a binding contract between LCT and each User of the Platform.

2. Applicability

1)These Rules shall apply to all Users and to all transactions facilitated on the Platform.

2)These Rules and any amendments thereto shall be effective from the date of publication.

3)Users of the Platform shall remain subject to these Rules until they cease to be a User, for any reason whatsoever. A former User shall remain bound by these Rules in respect of all activities conducted prior to the termination of the User’s access and privileges.

3. LCT’s Rights

Without limitation and in accordance with the Rules, LCT reserves the right to:

1)Notify the terms, conditions, rules, restrictions, and procedures for the registration of Users.

2)Establish the terms, conditions, rules, restrictions, and procedures for the admission and continued inclusion of Virtual Asset(s) or other tokens for trading on the Platform.

3)Define the terms, conditions, rules, restrictions, and procedures, including the timing, mode, and manner, for executing trades between Users, as well as the trading and settlement procedures on LCT’s market, in compliance with applicable laws and regulations.

3)Define the terms, conditions, rules, restrictions, and procedures, including the timing, mode, and manner, for executing trades between Users, as well as the trading and settlement procedures on LCT’s market, in compliance with applicable laws and regulations.

4)Determine and impose fees and other charges payable to LCT by Users.

5)Initiate disciplinary proceedings against Users and enforce disciplinary actions as outlined in Rules 13 and 14 of these Rules.

6)Take actions as LCT deems necessary to maintain fair and orderly trading within the market

7)Notify the terms, conditions, and procedures for suspending or terminating a User’s access to the Platform.

8)Impose restrictions on a User’s use of the Platform, including trading limits.

9)Suspend trading activities on the Platform, as deemed necessary.

10)Amend these Rules periodically to reflect changes in regulations or market conditions.

11)Undertake any measures or actions mandated by VARA or any other competent authority concerning LCT’s Platform, listed Virtual Assets, or Users.

12)Exercise any other rights granted to LCT under the User Agreement

13)Exercise any rights conferred under applicable laws and regulations

4. User Access and Code of Conduct

1)LCT enables Users to directly trade on the Platform, without the involvement of any intermediary or member, upon successful completion of the onboarding process of LCT.

2)LCT conducts due diligence of each new User before onboarding and monitors their ongoing compliance with the Applicable Laws and Regulations.

3)The admission of any applicant as a User shall be at the sole discretion of LCT.

4)LCT will grant access to the Platform or its services only to an applicant who has completed LCT's onboarding requirements, including KYC procedures.

5)As part of the onboarding process, applicants are required to provide LCT with relevant information and documentation for identity verification and other screening procedures. Based on LCT’s risk assessment, LCT may at its discretion, require an applicant to provide additional documents/information.

6)LCT shall, on an ongoing basis, review client due diligence (“CDD”) records to ensure that the records are up-to-date and that no identification documents provided have expired

7)The User acknowledges that LCT, either directly or through a third party, may conduct necessary checks to verify the User's identity, identify traces of money laundering, terrorist financing, fraud or other financial crimes or for other lawful purposes. These checks may include but are not limited to (a) verifying the User's identity information in public reports, such as their name, address, past addresses, or date of birth; and (b) taking actions that LCT deems reasonably necessary based on the results of such verifications and reports. Actions may include :

  • i.Warnings;
  • ii.Reprimands;
  • iii.Training;
  • iv.Establishing minimum qualification requirements;
  • v.Remediation plans;
  • vi.Compliance audits;
  • vii.Restitution;
  • viii.Contractually agreed penalties;
  • ix.Conditions on trading;
  • x.Trading prohibitions;
  • xi.Suspensions and restrictions to trading;
  • xii.Expulsions;
  • xiii.Cancellation of a client’s orders and any outstanding instructions from that client;
  • xiv.Report breaches to VARA; and
  • xv.Referrals for criminal prosecution.

4. User Access and Code of Conduct

1)LCT enables Users to directly trade on the Platform, without the involvement of any intermediary or member, upon successful completion of the onboarding process of LCT.

2)LCT conducts due diligence of each new User before onboarding and monitors their ongoing compliance with the Applicable Laws and Regulations.

3)The admission of any applicant as a User shall be at the sole discretion of LCT.

4)LCT will grant access to the Platform or its services only to an applicant who has completed LCT's onboarding requirements, including KYC procedures.

5)As part of the onboarding process, applicants are required to provide LCT with relevant information and documentation for identity verification and other screening procedures. Based on LCT’s risk assessment, LCT may at its discretion, require an applicant to provide additional documents/information.

6)LCT shall, on an ongoing basis, review client due diligence (“CDD”) records to ensure that the records are up-to-date and that no identification documents provided have expired.

7)The User acknowledges that LCT, either directly or through a third party, may conduct necessary checks to verify the User's identity, identify traces of money laundering, terrorist financing, fraud or other financial crimes or for other lawful purposes. These checks may include but are not limited to (a) verifying the User's identity information in public reports, such as their name, address, past addresses, or date of birth; and (b) taking actions that LCT deems reasonably necessary based on the results of such verifications and reports. The necessary rights and/or powers could be:

  • xvi.Warnings;
  • xvii.Reprimands;
  • xviii.Training;
  • xix.Qualification minimums;
  • xx.Remediation plans;
  • xxi.Compliance audits;
  • xxii.Restitution;
  • xxiii.Contractually agreed penalties;
  • xxiv.Conditions on trading;
  • xxv.Trading prohibitions;
  • xxvi.Suspensions and restrictions to trading;
  • xxvii.Expulsions;
  • xxviii.Cancellation of a client’s orders and any outstanding instructions from that client;
  • xxix.Report any breaches to VARA; and
  • xxx.Criminal referrals.

8)LCT may, in its absolute discretion, accept the applicant as a User, if the applicant complies with Rule 4, and satisfies the criteria in Rule 5.

9)LCT retains the absolute right, without any liability or obligation to provide an explanation, to suspend or terminate a User's access to the Platform in accordance with the terms outlined in the User Agreement and these Rules. In case of such suspension or termination of access, LCT will notify the user via email or other forms of communications permitted by the User.

10)LCT shall engage in ongoing monitoring of the User's transactions on the Platform and retains the right to request supplementary documentation or information from the User concerning any transaction conducted on the Platform.

11)LCT reserves the right to classify the User as a Retail Investor or an Institutional Investor, in accordance with the Applicable Laws and Regulations.

5. Eligibility Criteria

By registering to open and use a LCT Account, the applicant represents and warrants that they:

1)A natural person above 21 years of age or a legal person validly organized and in good standing under applicable laws and regulations.

2)As a natural person or legal person, have full legal capacity and sufficient authorization to be bound by and comply with these Rules.

3)Have not previously been suspended or terminated as a User of LCT or any other virtual asset exchange.

4)Do not have an existing account with LCT.

5)If a natural person, are applying for an account exclusively for their own use and not on behalf of any other person.

6)If acting as an employee, agent, or representative of a legal entity, have all necessary rights and authorizations to bind the legal entity and to access and use the Platform on its behalf.

7)Have full power and authority to enter into the User Agreement and, by doing so, will not violate any other agreement to which the applicant is a party.

8)Are not located in, nor a citizen or resident of, any state, country, territory, or jurisdiction where access to the Platform or the use of LCT’s services is restricted or prohibited by LCT (e.g., jurisdictions subject to economic sanctions).

9)Have not been named on any sanctions list nor are otherwise subject to any applicable sanctions.

10)Have sufficient technical competence to use the facilities of the Platform.

11)Have read and understood the Risk Disclosure Statement and acknowledge the risks associated with the use of the Platform and virtual assets in general.

12)Have not been convicted of any offense involving a crime or financial impropriety.

13)Are not a Politically Exposed Person (“PEP”) as defined under applicable laws and regulations.

An applicant will only be granted access to the Platform if they meet all of the criteria outlined in Rule 5 to LCT’s satisfaction. This procedure has been implemented to ensure that only qualified and appropriate applicants are granted access, thereby enhancing the safety and reliability of the Platform for all Users.

6. Compliance

1) Responsibility of the User:
It is the User’s responsibility to comply with these Rules, the User Agreement, and all applicable laws and regulations related to the use of the Platform.

2) Legality of Funds:
The User declares that all funds used for trading on the Platform originate from legitimate sources and are not derived from illegal activities. The User agrees that LCT may require the User to provide or collect the necessary documentation and information to verify the legality of the sources of their funds, in accordance with applicable laws and regulations.

3) Cooperation with Authorities:
LCT cooperates with competent authorities globally and retains the authority to seize, freeze, or terminate User accounts and funds that are flagged or investigated by such authorities.

4) Compliance with Requests for Information:
A User must comply with or procure compliance for any request by LCT for explanation or verification of information provided by or on behalf of the User.

5) Reporting to Authorities:
LCT may immediately report to the competent authority any User conduct suspected to constitute market abuse, financial crime, or a breach of applicable laws and regulations. LCT may share necessary details, including information related to the User’s positions in the Order Book, particularly details of any large positions held or changes to position limits.

6) Requests for Information:
6)LCT may, by written notice, require information from a User concerning any matter that relates to these Rules, the integrity of the Platform, or the market, or which LCT deems necessary to ensure compliance with applicable laws and regulations.

7) Provision of Accurate Information:
A User must not knowingly, recklessly, or carelessly provide LCT with any information (including information provided for the purpose of becoming a User) that is false, misleading, or inaccurate.

7. Enforcement

1) Supervisory Authority of LCT:
LCT is authorized to supervise its market and monitor the conduct of Users on the Platform in accordance with the Rules. This includes exercising powers such as surveillance, monitoring, review, examination, and investigation to ensure compliance with these Rules, the User Agreement, and Applicable Laws and Regulations.

2) Request for Information:
In exercising its powers, LCT may, at its sole discretion, request Users to produce any accounts, documents, books, contracts, or other records as necessary.

3) Scope of Investigations:
LCT, through its officers, employees, or agents, including auditors, may investigate the conduct and affairs of a User in the following circumstances

(a)Suspected breaches of these Rules, regardless of how the suspected breach comes to LCT’s attention.

(b)Complaints against a User concerning acts or omissions.

(c)Matters that may affect fair and orderly trading.

4) Disclosure of Information:
In connection with an investigation, the User acknowledges that LCT reserves the right to disclose information or documents provided by or relating to the User under the following conditions:

(a)To institute, carry on, or defend legal proceedings, including court proceedings.

(b)When compelled by law in any jurisdiction.

(c)To discharge LCT’s functions, particularly in maintaining high standards of integrity and fair dealing.

(d)With the consent of the User from whom the information was obtained or to whom the information relates.

5) Notification of Investigation:
LCT is under no obligation to notify a User that an investigation is underway.

6)Outcome of Investigations:
If, following an investigation, LCT determines at its sole discretion that a User has breached these Rules, it may take disciplinary action against the User in accordance with these Rules.

7) Record of Investigations:
LCT shall document all investigations and any disciplinary actions taken against a User. This information will be recorded in the User’s compliance record.

8) Obligation to Assist:
Users must provide all reasonable assistance requested by LCT or its agents during an investigation. This includes responding within the timeframes specified by LCT

8.User’s Ongoing Responsibilities

1)The User agrees to comply with the following ongoing obligations:

a)Refrain from engaging in prohibited activities, including but not limited to market manipulation, market abuse, misleading acts or practices, fraudulent transactions, or any involvement in financial crimes.

b)Avoid using web crawlers, scraping tools, or similar techniques to access the Platform or extract data without prior authorization.

c)Abstain from sending or receiving Virtual Assets to or from wallet addresses suspected of involvement in financial crimes or illegal activities.

d)Avoid actions that place an excessive or unfairly large burden on the Platform or interfere with, intercept, or misuse any systems, data, or information on the Platform

e)Refrain from attempting to reverse engineer, disassemble, or otherwise access the source code, underlying ideas, concepts, or algorithms of the Platform.

f)Respect intellectual property rights and avoid infringing upon LCT’s or any third party's copyright, patent, trademark, or other intellectual property.

g)Maintain a strong, secure password to safeguard their Account and prevent unauthorized access or use.

h)Implement and maintain suitable security measures to protect the environment in which the Platform is accessed, ensuring prevention of virus attacks and unauthorized access.

i)Cooperate fully with LCT and any Competent Authority in investigations related to the User’s activities on the Platform.

j)Ensure all required notifications under Rule 9 are made promptly and in a timely manner.

k)Adhere to all undertakings made by the User, as well as the terms outlined in the User Agreement.

l)Comply with procedural, operational, and technical requirements specified by LCT for using the Platform, as updated from time to time.

m)Keep all information and documents provided to LCT, including Customer Due Diligence (CDD) details, accurate and up-to-date.

n)Promptly pay any applicable fees or charges under these Rules.

o)Indemnify and hold harmless LCT, its directors, officers, employees, and agents against any liabilities, claims, actions (or threatened actions), proceedings, demands, costs, expenses, damages (including attorney fees and fines or penalties imposed by any Competent Authority), or investigations arising from or related to:

i.The User’s access or use of the Platform;

ii.Breach of these Rules or the User Agreement;

iii.Violation of Applicable Laws, Regulations, or third-party rights. LCT reserves the right to control and manage the conduct and settlement of any third-party claims, using counsel of its choosing and at the sole expense of the User.

p)Observe high ethical standards, ensuring fair and orderly trading while preserving market integrity, and act with honesty, integrity, fairness, due skill, and care when conducting activities on the Platform.

q)Refrain from any actions or conduct that may damage or harm the reputation of LCT.

r)Continuously meet the criteria outlined in Rule 5 for as long as they remain Users of the Platform.

s)Ensure that all personal data provided to LCT is accurate, up-to-date, and correct.

2)The User is fully responsible for all acts, omissions, and activities conducted through their Account.

3)The User shall act as the principal in all interactions with LCT and activities conducted on the Platform.

4)The User must not engage in any Prohibited Conduct, as outlined in Rule 12 of these Rules.

5)The User shall not:

(a) Coordinate prices (including quotations), trades, or trade reports with any other market participant or person;

(b) Direct or request another market participant to alter a price (including a quotation); or

(c) Engage, directly or indirectly, in conduct that threatens, harasses, coerces, intimidates, or improperly attempts to influence another User, market participant, or any other person.

6)The User is responsible for ensuring that they have:

(a) Sufficient authority to transact business on their Account;

(b) Adequate knowledge and understanding of their responsibilities under these Rules and Applicable Laws and Regulations at all times; and

(c) Sufficient knowledge, understanding, and experience regarding financial markets, Virtual Assets, and trading.

9.Notification Obligations

The User must notify LCT as soon as practicable in the following circumstances:

1) If the User has committed or may have committed a breach of these Rules, the User Agreement, or any relevant Applicable Laws and Regulations.

2) If a Competent Authority is investigating the User or has initiated any investigation, disciplinary action, or enforcement proceedings against the User.

3) Upon receipt of an injunction or the imposition of a sanction by any Competent Authority that may materially affect the User’s usage of the Platform or their obligations under these Rules.

4) If the User discovers or suspects any unauthorized access or use of their Account or identifies any security breaches related to their Account.

5) In the event of any material changes in the User’s ability to comply with these Rules, the User Agreement, or the Applicable Laws and Regulations.

6) If there are any changes or anticipated changes affecting the User’s ability to meet the criteria set out herein, or any circumstances that render the User unable to comply with the criteria under Rule 5.

7) If there is a need to report a material incident related to the User’s Account, including but not limited to significant operational issues or security concerns.

Notifications must be submitted through the appropriate channels as specified by LCT, including but not limited to the user interface or other means communicated by LCT from time to time. Failure to provide timely notification in these circumstances shall constitute a breach of these Rules by the User

10. Listing and Trading

1)LCT reserves the sole discretion to permit Virtual Assets for trading. A notice will be issued by LCT with key details regarding the admission, including the effective date and the duration of the pre-open trading session (if any).

2)Order Book: LCT operates an Order Book-based trading platform offering various Virtual Asset-to-Virtual Asset and Virtual Asset-to-fiat currency Trading Pairs. Trades are settled in either Virtual Assets or fiat currencies. User Accounts will display available Order Books.

3)The Platform operates 24/7, except during Interruptions and Downtime as defined under these Rules.

4)Orders

(a)LCT may offer various order types to its users from time to time, as described in more details herein.

(b)A User may place Orders subject to the following conditions: users must maintain an Available Balance sufficient to cover the total value of the Order including any applicable fees chargeable by LCT.

(c)Upon placing an Order, the relevant quantity of the applicable Virtual Asset / fiat currency the User’s Account will be subject to a Hold in the User’s Account.

(d)Users can place an Order in two different ways i.e., (i) a Limit Order; (ii) a Market Order.

(e)Users can cancel an open Limit Order at any time before it is Executed. No fee will be charged for successfully canceled Orders.

5)Limit Orders

(a)Limit Order: A Limit Order is an Order specifies a maximum or minimum execution price. 

(b)A Limit Order will only be Executed at the specified price or a better price, i.e. a lower price for a purchase or higher price for a sale.

(c)Default setting: “Good till canceled”, meaning the Orders remains open until the User cancels it.

6)Market Orders

(a)Market Order: A Market Order is an Order to buy or sell a specified quantity of a Virtual Asset at the current best available market price of existing Orders on the Order Book.

(b)A Market Order is not guaranteed to Execute at a particular price. A Market Order may be Executed at a number of different prices, based on the quantity of the Market Order and the quantities of the existing Orders on the Order Book at the time of placing a Market Order.

(c)Depending on the volume and prices of Orders on the Order Book, when a Market Order is posted, the Market Order may be Executed at a price less favorable than the most recent trade price which is considered as a ‘slippage’.

(d)A valid Market Order will be immediately posted to the Order Book. 

(e)A Market Order is always a Taker Order.

7)Posting of Orders to the Order Book

(a)“Taker Order”: If an Order is posted to the Order Book at the same price on the other side as one or more existing Orders, it is a Taker Order which will result in an immediate Fill at that price, to the extent of the total quantity of those existing Orders.

(b) “Maker Order”: To the extent that an Order is posted to the Order Book at a different price to all existing Orders, it is a Maker Order which will remain open at that price on the Order Book until:

i.it is canceled by the User; or

ii.it is completely Filled by one or more Taker Orders placed by another User at the same price.

8) Order Protections Users may enable a price protection point (PPP) to limit execution prices relative to the mid-point price on the Order Book. If PPP is enabled, Market and Limit Orders will Fill or be Executed at prices up to the PPP from the mid-point price between the best bid and best offer on the Order Book at the time the Order was placed by the User. If a Market or Limit Order would Fill against Orders beyond the PPP, the Order will partially Fill up to the PPP level and the matching engine will cancel all remaining portions of the Order.

9) Order Minimums/Maximums All Orders placed on the Platform are subject to a minimum order size depending on the Order Book, which Users can view at the Platform. In addition, all Orders are subject to a dynamic maximum order size that varies based on the order book depth.  Updating Order Parameters: LCT will periodically update these Order parameters. Users can refer to the latest parameters on LCT’s website. 

10) Position Limits A User’s maximum position limit in any Order Book shall be the greater of (a) US$1,000,000 or (b) 1% of the average daily transaction volume for the market in the immediately preceding 30 days. 

11) Matching Engine and Order Priority

(a) Orders are matched based on Price-Time Priority, ensuring fairness and consistency.

(b) “Price-Time Priority” means that each time a Taker Order is posted: The Taker Order is matched with the earliest in-time Maker Order at the best price on the Order Book; and to the extent that the Taker Order is not completely Filled by that Maker Order, it is matched with any subsequent Maker Orders at that price, in the sequence those Maker Orders were posted; and to the extent that the Taker Order is not completely Filled by one or more Maker Orders described above, it is matched with one or more Maker Orders at the next best price, in the sequence those Maker Orders were posted, and this process is repeated until the Taker Order is completely Filled.

(c) All Users are subject to the same Price-Time Priority.

(d) Subject to Time in Force Instructions, an Order may be matched with a number of corresponding Orders at the same price.

(e) Users understand and acknowledge that the Taker Orders are matched with the best available existing Maker Orders. This means that a Limit Order placed outside the market (i.e. a Sell Order below the highest existing Buy Order, or a Buy Order above the lowest existing Sell Order) will be Filled by the best available existing Order rather than an existing Order with the same price as the Limit Order.

(f) It is important to note that the market price of virtual currencies are determined by supply and demand dynamics, not by the exchange. LCT only sets transaction fees for institutions and users, not the market price of assets.

12) Fills and Settlement

(a) When a Maker Order is matched with a Taker Order, those Orders are Filled. An Order may be matched with and filled by one or more Orders at the same price.

(b) All partially or fully Filled Orders are settled in real-time, by debiting and crediting the relevant balances of Virtual Assets and/or amount of fiat currency in both Users’ Accounts. LCT ensures final settlement of a Virtual Asset transaction within 24 hours unless external factors delay the process. Such external factors include any limitations or malfunctioning of any DLT that is not controlled by the LCT or its group.

(c) Subject to daily withdrawal limits and the User Agreement, a User may immediately withdraw all Virtual Assets and/or amount of fiat currency in their Account.

13) Trading Fees

(a) LCT’s fee structures are transparent, fair, and non-discriminatory. LCT will not impose any fee that disrupts the fair and orderly functioning of any market involving Virtual Assets. Fees may vary between Order Books.

(b) LCT charges a Maker fee for each Maker Order and a Taker fee for each Taker Order that is posted to the Order Book. The fee is charged in the Quote Asset and is calculated as a percentage of the Order quantity.

(c) A fee is charged by debiting the User’s Order for the amount of the fee at the time the Order is Filled.

(d) If an Order is posted to the Order Book partially as a Maker Order and partially as a Taker Order, a Maker fee applies to the portion posted as a Maker Order and a Taker fee applies to the portion posted as a Taker Order.

(e) Users understand and acknowledge that certain Users may be eligible for volume-based fee discounts based on their historical trading volume across all Order Books. Such Users will be notified of any applicable discounts while trading on the Platform.

14) Notification
Users will receive a confirmation notification every time they have placed an Order, canceled an Order, and when that Order is partially or completely Filled.

15) Order Records
LCT maintains detailed audit trails s for all Ordes, includingr:

  • User identification number;
  • Date and time of the Order;
  • Trading Pair;
  • Order type and whether it is to buy or sell a Virtual Asset
  • Order Status whether the Order is open, partially filled, filled or cancelled;
  • Price at which the Order is placed, Filled and/or canceled;
  • Price and Fee where the Order is Filled; and
  • Quantity: order size measured in Virtual Asset units (Trading Pair).

16) Market Integrity

(a) All Executed Orders are final and will not be reversed unless:

LCT is compelled to do so by any Applicable Laws and Regulations;

The Order has been Filled or Executed due to a serious technical error. In such circumstances, LCT will make all reasonable efforts to restore all Users to the position they would have been in if the error had not occurred.

(b) LCT reserves the right to cancel Open Orders at its sole discretion, including but not limited to the following circumstances:

Orders placed by Users who, at LCT’s sole discretion, have engaged in abusive use of the Platform, for example, market manipulation, wash trading, using the API in a manner which unreasonably burdens the Platform, or other illegal or similar activities.

Orders which under the circumstances involve an error with respect to price, quantity, or other parameters - a ‘clearly erroneous transaction’.

If required by any Applicable Law and Regulations, including specifically where LCT is required to suspend or terminate a User’s Account in accordance with these Rules

If required for routine or unscheduled maintenance, or other technical reasons

17) Access

(a) All Users have equal access to the Order Books. LCT does not provide prioritized access to any User.

(b) LCT has the authority to take any action deemed appropriate to preserve market integrity. Such actions include, but are not limited to, the halting of trading, modifying risk-mitigating parameters, restricting User access to the Platform or any Order Book, restricting order types to post-only or limit only, canceling orders resting in the Order Book, or any other actions deemed to be in the best interest of the Platform. 

(c) LCT may reserve the right to restrict access, suspend trading, or modify the Platform for the following reasons: 

emergency maintenance (including unscheduled maintenance);

planned or unplanned system and software updates; and 

due to any other event or occurrence that LCT considers, in its sole discretion, to be a reason to suspend or shut down the operations on the Platform.

In addition to the actions that LCT may undertake as provided under the Rules, Users acknowledge and agree that LCT reserves the right (without any liability resulting of LCT or any LCT affiliates involved in the provision of the LCT services) to disable, update, cancel, restrict or otherwise modify any content, components or features of the Platform. 

18) Interruptions

(a) In the event that technical issues hinder or degrade Users' ability to place or cancel Orders, access LCT APIs, or use the Platform—affecting the operation of Order Books or matching engines—LCT may, at its sole discretion, take any of the following actions for one or more Order Books:

Temporarily disable the depositing or withdrawing of Assets.

Cancel Open Orders.

Restrict the ability to place new Orders by enabling Cancel-Only Mode.

Fully disable Order Books.

Restrict sign-in access.

Disable the LCT APIs.

Suspend access to the Site.

(b) If the Platform remains inaccessible for 5 minutes or more, LCT may transition the Platform to Cancel-Only Mode.

(c) In the event that the Platform operates in Cancel-Only Mode, it will be restored to full functionality only after the Platform has been accessible for at least 5 consecutive minutes and LCT determines that it is safe to resume full operations.

19) Self-Trade Prevention

(a) Users are not able to place an Order which would result in self-execution—i.e., where the same User would act as both the maker and taker for the trade.

(b) If two Orders of the same quantity would result in self-execution, Users will have the option of either (a) canceling the Maker Order, (b) canceling the Taker Order, or (c) canceling both the Maker and Taker Orders.

20) Flash Crashes and Circuit Breakers LCT does not implement circuit breakers or automated trading halts triggered by predetermined price thresholds. However, as outlined in Rule 11, LCT retains the discretion to halt trading when deemed necessary.

21) Prohibition of Market Manipulation

(a) Users are strictly prohibited from engaging in any form of market manipulation. LCT reserves the right to take appropriate action, including account suspension or termination against Users found engaging in any of the prohibited practices.

(b) Market manipulation is defined as any actions taken by a market participant or a person acting in concert with a participant that is intended to:

Deceive, mislead, or unfairly exploit other Users or LCT;

Artificially control or manipulate the price or trading volume of an Asset; or

assist, facilitate, fund, support, or or endorse any of the above activities.

(c) Examples of Market Manipulation include, but are not limited to:

• Front-running: Executing trades based on non-public information about pending orders.

• Wash trading: Creating false impressions of trading activity by simultaneously buying and selling the same Asset.

• Spoofing: Placing orders with the intent to cancel them before execution to manipulate prices.

• Layering: Submitting multiple orders at different price levels to create a misleading perception of demand or supply.

• Churning: Excessively trading to inflate transaction volumes without intent to execute meaningful trades.

• Quote Stuffing: Flooding the market with a high volume of orders to slow down other participants.

11. Delisting of virtual assets and suspension of trading

LCT reserves the right to delist a listed Virtual Asset or suspend trading in relation to a Virtual Asset if:

(a) The delisting or suspension is mandated by a Competent Authority or approved by the VARA;

(b) The delisting or suspension is necessary for LCT to comply with Applicable Laws and Regulations;

(c) The delisting or suspension is required to ensure the fair and orderly operation of the Platform;

(d) The relevant Virtual Asset exceeds or is likely to exceed any specific parameters published on the Platform, including where, in LCT’s discretion, a Virtual Asset, is exhibiting unusual or excessive price volatility;

(e) such delisting or suspension is required as a result of a hard fork affecting the relevant Virtual Asset; and 

(f) such delisting or suspension is required in connection with a Downtime.

12.Prohibited Conduct

1) Users are strictly prohibited from engaging in, facilitating, supporting or endorsing any behavior involving market abuse, fraud or any conduct contrary to LCT’s AML procedures. Such prohibited behaviors include, but are not limited to:

(a) engaging in any conduct that is misleading the market: sharing, publishing, broadcasting or disseminating false or misleading information regarding Virtual Assets, with the intent to deceive or mislead the market ;

(b) engaging in conduct amounting to market manipulation, including any order intended to:

create or execute fictitious transactions or knowingly place an Order for a fictitious transaction;

Execute pre-arranged Orders discussed with another market participant before placement, aimed at creating an artificial price, fictitious trade, or any other disruptive, fraudulent, non-competitive, or unfair impact on the Platform.;

Misrepresent or potentially misrepresent the supply and/or demand for a Virtual Asset;

(c) creating an abnormal or artificial price.

(d) engaging in any behavior designed to establish an abnormal or artificial price for a Virtual Asset.

2) Each User acknowledges and agrees that any detection or reasonable suspicion by LCT of the prohibited techniques or activities listed above may result in disciplinary action. This action will be taken in accordance with LCT's Rules, and Users found or reasonably suspected to have engaged in such activities may face penalties, including, but not limited to, account suspension or termination.

3) Users shall refrain from engaging in any trading practice or conduct on the Platform that:

(a) Demonstrate an intentional or reckless disregard for the orderly Execution of transactions; or

(b) Constitutes “spoofing” defined as placing bids or offers with the intent to cancel them before execution.

13.Default Rules and Disciplinary Actions

1) “Default Event” is defined as any of the following occurrences:

(a) A material failure by a User to fulfill obligations under the User Agreement, these Rules, undertakings provided by the User, or any other agreement between the User and LCT.

(b) A material breach of these Rules or the User Agreement by the User.

(c) Material misrepresentation(s) made by the User.

(d) The User is declared bankrupt or seeks a voluntary arrangement regarding its debts.

(e) The User engages in or attempts to engage in any form of Market Abuse.

(f) The User becomes subject to enforcement proceedings, sanctions, formal notifications, or injunctions by a Competent Authority.

2) LCT, at its absolute discretion, may declare a relevant User as a ‘Defaulter’ upon the occurrence of a Default Event. This declaration will be communicated to the Defaulter via email.

3) Upon declaring a User as a Defaulter, LCT may initiate, taking into account the severity of the Default Event, inter-alia, any of the following disciplinary actions:

(a) Issue a written warning to the Defaulter.

(b) Require the Defaulter, via written notice, to provide specific information or documentation within a stipulated timeframe to assist LCT in its investigation of the Default Event.

(c) Require the Defaulter, via written notice, to remedy the Default Event, if feasible and deemed appropriate by LCT, within a timeframe specified by LCT.

(d) Cancel some or all Orders or transactions associated with the Defaulter.

(e) Liquidate some or all of the Defaulter’s Virtual Assets to the credit of the Defaulter's Account.

(f) Suspend or terminate the Defaulter’s access to the Platform.

(g) Restrict the Defaulter’s access to their Accounts.

4) LCT reserves the right to report any Default Event and any corresponding disciplinary action to the relevant Competent Authorities. LCT is under no obligation to notify the User before making such as report to any Competent Authority.

14.Penalties for Rule Violations

1) In the event of a violation of any of these Rules, the User shall be subject to penalties as determined by LCT.

2) Penalties for the violation of these Rules may include, but are not limited to: fines, suspension or termination of the User's account or any other actions deemed appropriate by LCT at its sole discretion.

3) LCT reserves the right to modify the penalties applicable to Rule Violations at any time, at its discretion.

4) Users will be notified of any changes to the penalties for Rule violations as and when such changes occur.

15.Access to Information

1) All Users are provided with full and equal real-time access to LCT’s market data (“Market Data”), which is made available through the Platform.

2) Market Data includes:

All Limit Orders placed on the Order Book, including price, quantity, and time.

All Fills or Executions including price, quantity, and time.

3) Market Data does not include:

Canceled Orders on the Order Book, including price, quantity, and time.

Information about which User placed or canceled an orders.

4) LCT Corporate Operations

LCT does not engage in any trading activities on the Platform. LCT operates as an intermediary, enabling Users to execute trades independently. This ensures that all trading activities on the Platform are free from LCT’s influence or bias.

5) LCT Employee Access
LCT strictly prohibits its employees from using inside, corporate, or proprietary information to trade Virtual Assets on the Platform.

16.Downtime

From time to time, LCT may suspend trading temporarily for maintenance or upgrades. When feasible, the following process will be followed for closing and re-opening trading:

Step 1: Announcement of Downtime

- Announce scheduled Downtime via the Platform, or Twitter.

- For scheduled Downtime, the announcement will typically be made at least (10) days in advance.

- For unscheduled Downtime, LCT will provide as much prior notice as possible.

Step 2: Downtime Initiation: Trading will be temporarily suspended as per the announcement.

Step 3: Immediately after Downtime Completion

- All Order Books will enter the 'Post-only' Mode (Where Limit Orders can be placed but not executed).

- An announcement will be made regarding this the operational change 

- To ensure a fair and orderly marketplace, LCT may at in its discretion cancel all resting Limit Orders in an Order Book before transition the market to Post-only Mode or to Limit-only Mode

Step 4: Transition to Limit-Only Mode

- At least one (1) minute after the completion of Step 3 (or longer if deemed necessary), all Order Books will transition to Limit-Only Mode (where only Limit Orders can be placed and executed)

- An announcement will be made on the Platform or Twitter

Step 5: Resumption of Full Trading

- At least ten (10) minutes after the completion of Step 4 (or longer if necessary), all Order Books will transition to Full-Trading Mode (where all Order types are permitted).

- Announce will be made on the Platform.

17.Amendment

LCT may amend these Rules from time to time by publishing an updated Rules on the Platform at least fifteen (15) days prior to the effective date of such amended Rules.

18.Custody and safekeeping arrangements

1) Title and Control

(a) Ownership of fiat currency and Virtual Assets held by Users remains with the Users at all times. Users bear the risk of any loss incurred as the owner of such assets. It is important to note that none of the fiat currency or Virtual Assets held in a User's Account are considered the property of LCT.

(b) Users retain full control over the fiat currency and Virtual Assets in their Account. They may withdraw their assets at any time, subject to Downtimes and other restrictions set forth in these Rules and other applicable policies.

(2) User Virtual Asset

(a) A User's Virtual Assets, credited to their Account, will be held by LCT on behalf of the User in a segregated User Virtual Asset wallet, separate from LCT’s proprietary assets at all times.

(b) Any Virtual Asset received by LCT from Users will be securely stored by LCT or a designated Custodian. LCT will maintain sole control over the private keys.

(c) LCT does not provide interest on the Virtual Assets held on behalf of Users.

(d )Users' Virtual Assets will be pooled into an omnibus wallet. While the assets of different Users are not physically segregated, they remain distinct from LCT’s proprietary Virtual Assets.

(e) LCT will conduct a daily reconciliation of the Virtual Assets held on behalf of Users. Users may access their Virtual Asset balances by logging into their Account.

3) Fiat Currency

(a) LCT currently offers fiat currency services to its customers.

(b) Additional details are provided in the “Client Money Rules.”

19.Conflict of interests

Actual or potential conflicts of interest may arise in various aspects of operations and must be effectively managed through appropriate strategies. Below are key scenarios of conflict of interest and the strategies employed to address them

1) Conflicts Between Exchange Employees and Trading Activities

(a) Employees may have access to market information that could lead to insider trading.

(b) Management Strategy: Enforce strict internal policies that prohibit employees from using insider information for trading. Implement rigorous monitoring and audit procedures to ensure compliance.

2) Listing Approval Conflicts with Exchange Interests

(a) The exchange may have an incentive to favor its own interests when selecting cryptocurrencies for listing, such as promoting its own tokens or those of partners.

(b) Management Strategy: Establish a transparent listing approval process to ensure that all cryptocurrencies are evaluated based on the same set of objective criteria.

3) Market Manipulation

(a) The exchange or its affiliates may attempt to manipulate market prices for undue advantage.

(b) Management Strategy: Implement market surveillance systems to detect and prevent manipulation. Investigate any abnormal trading behaviors and take appropriate action.

4) Management of Customer Funds

(a) There may be risks of misusing customer funds if not properly managed and segregated from the exchange’s operational funds.

(b) Management Strategy: Ensure that customer funds are held separately from the exchange's operational funds and utilize trusted third-party custody services for safekeeping.

5) Data Privacy and Security

(a) Customer data could be misused, such as for marketing purposes or exposed to unauthorized access.

(b) Management Strategy: Implement robust data security measures to protect the privacy and safety of customer information.

6) Technical Risks and Trading System Stability

(a) The trading system may experience technical failures that could disrupt market fairness and efficiency.

(b) Management Strategy: Ensure high-quality system maintenance and upgrades, along with effective disaster recovery plans to minimize downtime and system failures.

7) Transparency and Disclosure

(a) The exchange might fail to adequately disclose risks and fees associated with its services.

(b) Management Strategy: Provide clear and transparent terms of service, including details on fees, risks, and other critical information that customers need to make informed

20. Complaints

Any individual may file a complaint with LCT in accordance with LCT's Complaints Handling Policy, regarding any aspect of LCT's operation of the Platform. LCT will address all complaints in line with the procedures outlined in the Complaints Handling Policy, which is available on the Platform.

21.Whistleblower Policy

Please refer to the Whistleblower Policy.

22.Definitions

In these Trading Rules, the following words and phrases have the corresponding meanings:

• Account: An account held with LCT in the name of the User on the Platform.

• Applicable Laws and Regulations: Provisions of laws, statutes, ordinances, rules, regulations, permits, certificates, judgments, decisions, decrees, or orders of any Competent Authority applicable to LCT or the Users.

• Available Balance: A User’s Total Asset Value minus any amounts held for Open Orders and fees.

• Base Asset: The Asset being traded on the Order Book; the first Asset in the Trading Pair. For example, in the BTC-USD Order Book, BTC is the Base Asset and USD is the Quote Asset.

•Cancel-only Mode: A mode where Users cannot place new Orders but can cancel Open Orders. No Orders will be filled.

• Competent Authority: VARA and any other regulatory, judicial, or law enforcement authority with jurisdiction over the activities of LCT, the Platform, or the Users.

• Default Event: As defined in Rule 13 of these Rules.

• Fill or Execution: The matching of two Orders.

• Full-Trading Mode: The normal operation of the LCT Platform, where Users can place Market Orders and Limit Orders and cancel Orders.

• Hold: The setting aside of Assets allocated to an Order.

• Limit Order: An Order to buy or sell a specified quantity of an Asset at a specified price.

• Limit-only Mode: A mode where Users can place and cancel only Limit Orders. Only Limit Orders can be filled; Market Orders will be rejected.

• Market Order: An Order to buy or sell a specified quantity of an Asset at the best available price of existing Orders on the Order Book.

• Order: An instruction to buy or sell a specified quantity of the Base Asset at a specified price in the Quote Asset.

• Order Book(s): The Order Books where Orders are placed for trading in a Trading Pair.

• Open Order: A Maker Order that has been posted but not filled, canceled, or expired.

•Post-only Mode: A mode where Users can only place an Order if it would be posted to the Order Book as a Maker Order. An Order that would be posted as a Taker Order will be rejected. No Market Orders may be placed, and no Orders will be filled. Resting Orders may be canceled.

• Quote Asset: The Asset used as the denomination in trading on the Order Book, and the second Asset in the Trading Pair. For example, in the BTC-USD Order Book, BTC is the Base Asset and USD is the Quote Asset.

• Scheduled Downtime: A planned temporary outage for maintenance or upgrades. See section 16.

• Total Asset Value: The gross value of all of a User’s Assets for the relevant Order Book, expressed in the Quote Asset based on the last trade price. This includes all Assets allocated to Open Orders.

• Trading Pair: Each pair of a Base Asset and a Quote Asset offered on the LCT Platform.

• User: Any person (individual or legal entity) who accesses, downloads, or uses the Platform or any services of LCT, and meets the eligibility criteria specified by LCT.

• Virtual Asset: A digital representation of value that can be digitally traded, transferred, used as an exchange or payment tool, or for investment purposes. This includes Virtual Tokens and any other digital representation of value as determined by VARA.

• Virtual Token: A digital representation of a set of rights that can be digitally offered and traded through a Virtual Asset platform.