Legal Documents

Definition of Abnormal Transactions

KONG SHING WEALTH COMPANY LIMITED (hereinafter referred to as the "Company") has formulated the following definitions of abnormal transactions based on the summary of past abnormal transaction cases and the actual needs of normal client transactions:

1. Short-Term Trading
When 30% or more of the trading volume in the suspected abnormal transaction orders has a holding period of less than 10 minutes.

2. Hedging and Locking Positions
When 30% or more of the trading volume in the suspected abnormal transaction orders consists of hedging and locking positions established within 10 minutes.

3. Intensive Trading
A client uses the same account and multiple computer terminals to conduct trading activities simultaneously, intending to create misleading information about huge transaction volume in the market through "intensive trading" methods.

4. Plug-In Software
A client uses third-party software (i.e., "plug-in software") to place orders and conduct transactions by exploiting software vulnerabilities. (If EA trading is required, please contact the online customer service staff of Huantaichang Global)

5. Malicious Heavy Positioning
A type of transaction that takes advantage of "quote delays" on the Internet or computers to intentionally or "maliciously" enter and exit "heavy positions" multiple times within 5 minutes, and earn price spreads that do not reflect the market price on the trading platform within a short period of time.

6. Abnormal Trading Volume
Significant variations in trading volume, such as a sudden change in transactions from 0.1-0.5 lots to 5-10 lots.

7. Money Laundering Suspicions
Frequent transaction inflows and outflows involving money laundering activities.

In addition to the above situations, network delays, network failures, computer malfunctions, quote errors, or quote system vulnerabilities may all cause the quotes on the trading platform to fail to accurately reflect real-time market prices. To protect the fairness of online transactions and the rights and interests of the majority of clients, Huantaichang Global does not accept any behavior of placing orders and conducting transactions by exploiting platform vulnerabilities or malfunctions.

Company's Handling Methods for Abnormal Transactions:

1. Review Mechanism
When a client requests a withdrawal, we will review all transactions of the client from the last withdrawal (or from account opening for the first withdrawal) to the current withdrawal. Based on trading volume statistics, if 30% or more of the trading volume in the transaction orders has a holding period of less than 10 minutes, we will conduct a further review of the account, which will take at least 5 working days.

2. Account Restrictions
During the review period, the account will be prohibited from opening new positions. If there are still open positions during this period, the relevant transactions may be canceled.

3. Loss Handling
If the loss amount of the transaction orders during the review period is less than 10% of the transaction principal, 15% of the deposited amount will be deducted as the cost incurred by abnormal transactions, and the remaining balance will be issued to the client.

4. Profit Handling
If the transaction orders during the review period are profitable, all profits will be deducted, and 15% of the deposited amount will be charged as the cost incurred by abnormal transactions, after which the remaining balance will be issued to the client.

5. Account Freezing
Accounts defined as having abnormal transactions will be permanently frozen, and the relevant persons will be placed on a blacklist.

6. Reserved Rights
The above does not represent all definitions of abnormal transactions. In case of accounts with suspected abnormal transactions not covered by the above definitions, the Company may place them on the freeze list after further review, which will take an extended period of 90 days. The Company reserves the right of final interpretation.

Friendly Reminder:

Accounts with abnormal transactions often open and close positions within a short period of time (the same applies to hedging and locking positions), which will ultimately harm the client's rights and interests. Clients need to pay high transaction costs for this and find it difficult to earn substantial profits. More importantly, such behaviors may violate the "Anti-Money Laundering" regulations and lead to client doubts and complaints. As a responsible financial institution, it is necessary for us to learn from this, remain vigilant, and strictly guard against abnormal transaction activities on an ongoing basis.