Prohibited Use Policy

This Prohibited Use Policy (this "Policy") sets forth the jurisdictions, activities, and conduct that are strictly prohibited on the XEX platform operated by 3-102-954669 S.R.L., a sociedad de responsabilidad limitada organized under the laws of the Republic of Costa Rica (operating as "XEX"), and its affiliated entities (collectively, "XEX," "the Platform," "we," "us," or "our"). This Policy is incorporated by reference into, and forms a part of, the XEX Terms of Service. By accessing or using the Platform, you represent and warrant that you are not located in, organized under the laws of, or a resident or national of any Prohibited Jurisdiction, and that you will not engage in any Prohibited Activity, as defined herein.

XEX reserves the right, in its sole and absolute discretion, to amend, modify, or expand this Policy at any time. Your continued use of the Platform constitutes acceptance of any such changes. It is your responsibility to review this Policy regularly. Violations of this Policy may result in immediate and permanent loss of access to the Platform, forfeiture of assets, and referral to law enforcement authorities.

1. Prohibited Jurisdictions

XEX does not offer services to, and may not be accessed or used by, any person or entity that is located in, organized under the laws of, or a resident or national of any of the following Prohibited Jurisdictions. This prohibition applies regardless of whether the individual or entity would otherwise be eligible to use the Platform.

1.1 Comprehensively Prohibited Jurisdictions

The following jurisdictions are comprehensively prohibited. No person or entity associated with these jurisdictions may access or use the Platform in any capacity:

• United States of America (including all states, territories, and possessions) — pending the acquisition of requisite federal and state licenses and registrations. This prohibition shall remain in effect until XEX publicly announces that U.S. persons are eligible to access the Platform.
• Democratic People's Republic of Korea (North Korea)
• Islamic Republic of Iran
• Syrian Arab Republic (Syria)
• Republic of Cuba
• Russian Federation (Russia)
• Crimea Region (including the Autonomous Republic of Crimea and the City of Sevastopol)
• Donetsk People's Republic (so-called) and the Luhansk People's Republic (so-called), being the non-government controlled areas of the Donetsk and Luhansk oblasts of Ukraine
• Republic of the Union of Myanmar (Burma)
• Republic of South Sudan

1.2 Additional Restricted Jurisdictions

The following jurisdictions are subject to significant restrictions. Persons and entities associated with these jurisdictions are prohibited from accessing or using the Platform except where explicitly permitted by applicable sanctions regulations and XEX's internal compliance policies:

• Central African Republic
• Democratic Republic of the Congo
• Libya
• Federal Republic of Somalia
• Republic of Yemen
• Republic of Zimbabwe
• Republic of Belarus
• Bolivarian Republic of Venezuela — with particular respect to transactions involving the Government of Venezuela, Petróleo de Venezuela, S.A. (PdVSA), and any person or entity acting on behalf of or owned or controlled by the Venezuelan government

1.3 Jurisdictions Where Digital Asset Trading Is Prohibited by Law

In addition to the jurisdictions listed above, XEX prohibits access and use of the Platform by any person or entity located in, or subject to the laws of, any jurisdiction where the trading, holding, or transfer of digital assets or virtual currencies is prohibited by applicable law or regulation. It is your sole responsibility to determine whether your access to and use of the Platform is lawful in your jurisdiction. XEX makes no representation that the Platform or any of its services are appropriate or available for use in any particular jurisdiction.

1.4 Prohibition on Circumvention

The use of virtual private networks ("VPNs"), proxy servers, the Tor network, or any other technology or method to disguise, conceal, or misrepresent your true location, IP address, or jurisdiction for the purpose of circumventing the geographic restrictions set forth in this Policy is strictly prohibited. XEX employs advanced detection mechanisms, including but not limited to IP geolocation analysis, device fingerprinting, behavioral analytics, and blockchain analytics, to identify users attempting to circumvent jurisdictional restrictions.

Any attempt to access or use the Platform from a Prohibited Jurisdiction through any means, or to provide false, misleading, or incomplete information regarding your location, residency, or nationality, constitutes a material breach of the Terms of Service and this Policy and may result in the immediate and permanent suspension or termination of your account, forfeiture of all assets held on the Platform, and referral to applicable law enforcement and regulatory authorities.

2. Prohibited Activities

You may not use the Platform, directly or indirectly, in connection with any of the following activities (collectively, "Prohibited Activities"). This list is non-exhaustive, and XEX reserves the right to determine, in its sole discretion, that any activity not expressly listed below constitutes a Prohibited Activity if such activity is illegal, harmful, or contrary to the purposes for which the Platform is intended.

2.1 Money Laundering and Terrorist Financing

Using the Platform to launder money, finance terrorism, or otherwise process, transfer, convert, or conceal the proceeds of criminal activity is strictly prohibited. This includes, without limitation, the placement, layering, or integration of illicit funds through trading activity, deposits, withdrawals, or transfers conducted on or through the Platform, as well as any attempt to provide material support or resources to designated terrorist organizations, foreign terrorist fighters, or individuals engaged in terrorism-related activity.

2.2 Market Manipulation

The following forms of market manipulation are strictly prohibited on the Platform:

• Wash Trading: Executing trades where you are simultaneously or substantially the buyer and the seller, or colluding with another party to execute trades that create a misleading appearance of trading activity, volume, or price movement without a genuine change in market position or beneficial ownership.
• Spoofing: Placing orders with the intent to cancel them before execution for the purpose of creating a false or misleading impression of market demand or supply, or to manipulate or influence the price of any asset.
• Layering: Placing multiple orders at various price levels with the intent to create a misleading impression of depth of market, and canceling such orders before execution, in order to manipulate or influence the price of any asset.
• Pump-and-Dump Schemes: Coordinating or participating in schemes to artificially inflate the price of an asset through misleading, deceptive, or fraudulent communications, and subsequently selling the asset at the inflated price.
• Front-Running: Trading on the basis of material, non-public knowledge of pending orders or transactions, including but not limited to customer orders, block trades, or market-moving information.
• Any other trading activity that is intended to, or has the effect of, artificially influencing the price, volume, or market conditions of any asset listed on the Platform.

2.3 Fraud and Identity Theft

Using the Platform to perpetrate or facilitate fraud, including but not limited to identity theft, impersonation of any person or entity, creation of accounts using false or stolen identities, submission of falsified documents or information during the verification process, phishing, social engineering, or any other deceptive practice intended to obtain unauthorized access to accounts, assets, or information belonging to another person.

2.4 Use of Stolen Funds or Credit Cards

Depositing, transferring, or otherwise introducing to the Platform any funds, digital assets, or value that are derived from theft, fraud, unauthorized access, or any other criminal activity. This includes, without limitation, the use of stolen, cloned, counterfeit, or unauthorized credit cards, debit cards, bank accounts, or payment instruments to purchase digital assets or fund an account on the Platform.

2.5 Tax Evasion

Using the Platform to evade, avoid, or circumvent any applicable tax obligation, including but not limited to income tax, capital gains tax, value-added tax, withholding tax, or any other tax imposed by any jurisdiction. You are solely responsible for determining your tax obligations and for accurately reporting and paying all taxes owed in connection with your use of the Platform. XEX does not provide tax advice and makes no representation regarding the tax consequences of any transaction.

2.6 Sanctions Evasion

Using the Platform to evade, avoid, or circumvent any economic or trade sanctions administered or enforced by the United States (OFAC), the European Union, the United Nations Security Council, the United Kingdom (HMT/OFSI), or any other applicable sanctions authority. This includes, without limitation, conducting transactions on behalf of, for the benefit of, or at the direction of any sanctioned person, entity, or jurisdiction, or using the Platform to process, route, or facilitate transactions that are designed to circumvent sanctions restrictions.

2.7 Operating a Money Services Business

Using the Platform to operate, whether formally or informally, a money services business, money transmission business, payment service, currency exchange service, or any similar financial service for or on behalf of third parties, unless you have obtained all required licenses and registrations and have received prior written authorization from XEX.

2.8 Circumventing Trading Limits or Restrictions

Attempting to circumvent, bypass, or evade any trading limits, withdrawal limits, deposit limits, verification requirements, or other restrictions imposed by XEX on your account, including but not limited to creating multiple accounts, using accounts held by other persons, or employing technical means to override system-imposed limitations.

2.9 Cyber Attacks and Platform Security Violations

Engaging in any activity that compromises or attempts to compromise the security, integrity, or availability of the Platform, including but not limited to:

• Distributed denial-of-service ("DDoS") attacks or any other form of network or application-layer attack
• Unauthorized access or attempted access to XEX's systems, servers, databases, or infrastructure
• Exploitation of software vulnerabilities, misconfigurations, or security weaknesses
• Injection attacks, cross-site scripting, or other code-based attacks
• Interception, modification, or interference with network traffic or communications
• Introduction of malware, ransomware, viruses, worms, Trojan horses, or other malicious code

2.10 Unauthorized Scraping and Data Mining

Accessing, scraping, crawling, harvesting, mining, or otherwise collecting or extracting data or information from the Platform through automated means (including bots, spiders, scrapers, or similar technologies) without the prior written authorization of XEX. This prohibition does not apply to the use of XEX's official API services in accordance with the applicable API Terms of Service.

2.11 Multiple Account Abuse

Creating, maintaining, or using multiple accounts for the purpose of circumventing trading restrictions, verification requirements, or promotional limitations; engaging in wash trading or market manipulation; abusing referral programs, bonuses, or incentive programs; or otherwise engaging in conduct that is deceptive, unfair, or contrary to the intended use of the Platform. Each individual may maintain only one account, and each entity may maintain only the number of accounts expressly authorized by XEX.

2.12 Exploitation of Platform Bugs or Vulnerabilities

Exploiting any bug, error, vulnerability, or unintended behavior of the Platform or any of its systems, smart contracts, or services for personal gain or to the detriment of XEX or any other user, without promptly disclosing the bug or vulnerability to XEX through our official Bug Bounty program or at security@xex.to. If you discover a bug or vulnerability, you are required to report it immediately and to refrain from exploiting it. Any funds or profits obtained through exploitation of a bug or vulnerability are the property of XEX and must be returned immediately upon request. Failure to do so will be treated as theft and may result in criminal prosecution.

2.13 Illegal Gambling

Using the Platform to conduct, facilitate, or participate in illegal gambling or any wagering activity that is not authorized under applicable law. This includes using the Platform's trading functionality as a proxy for gambling where the predominant purpose of the activity is wagering rather than bona fide investment or trading.

2.14 Distribution of Malware or Phishing

Using the Platform, any XEX communication channel, or any XEX branding or intellectual property to distribute malware, conduct phishing campaigns, distribute fraudulent communications, or otherwise attempt to deceive or defraud XEX users or the general public. This includes creating or distributing fake websites, applications, or communications that impersonate XEX.

2.15 Intellectual Property Infringement

Using the Platform in any manner that infringes, misappropriates, or violates the intellectual property rights of XEX or any third party, including but not limited to copyrights, trademarks, patents, trade secrets, or other proprietary rights.

2.16 General Prohibition

Using the Platform in connection with any activity that would cause XEX to violate any applicable law, regulation, rule, order, or directive of any governmental authority or regulatory body, whether or not such activity is expressly listed in this Policy. You agree that XEX is not obligated to determine whether your use of the Platform complies with all laws applicable to you, and that you bear sole responsibility for ensuring such compliance.

3. Consequences of Violation

If XEX determines, in its sole and absolute discretion, that you have engaged in any Prohibited Activity or have accessed or used the Platform from a Prohibited Jurisdiction, or if XEX reasonably suspects that you have done so, XEX may take any or all of the following actions, without prior notice or liability to you:

3.1 Account Suspension and Termination

XEX may immediately suspend or terminate your account, restrict your access to the Platform, and disable all trading, deposit, and withdrawal functionality. Suspension or termination may be temporary or permanent, at XEX's sole discretion.

3.2 Forfeiture of Balances

Any and all digital assets, fiat currency, tokens, or other value held in your account may be frozen, seized, or forfeited. Where assets are forfeited, you shall have no further claim to such assets, and XEX shall have no obligation to return, refund, or compensate you for any forfeited assets. Forfeiture of assets shall be in addition to, and not in lieu of, any other remedies available to XEX.

3.3 Reporting to Authorities

XEX may report your identity, account information, transaction history, and any other relevant information to applicable law enforcement agencies, financial intelligence units, tax authorities, regulatory bodies, and other governmental authorities in any jurisdiction. Such reporting may be made with or without a specific request from the relevant authority, where XEX determines that such reporting is warranted by the nature and severity of the violation.

3.4 Civil and Criminal Prosecution

XEX reserves the right to pursue all available civil remedies against you, including but not limited to claims for damages, injunctive relief, and recovery of legal fees and costs. In addition, XEX may cooperate with law enforcement authorities in the criminal prosecution of any person engaged in Prohibited Activities, and you acknowledge that Prohibited Activities may constitute criminal offenses carrying substantial penalties, including imprisonment.

3.5 Permanent Ban

Any person or entity found to have engaged in Prohibited Activities or accessed the Platform from a Prohibited Jurisdiction may be permanently banned from the Platform. A permanent ban prohibits you from creating any new account, accessing the Platform through any means, and using any XEX product or service, indefinitely. XEX employs technological measures to enforce permanent bans and may take legal action against individuals who attempt to circumvent such bans.

3.6 Disgorgement of Profits

XEX reserves the right to recover and disgorge any and all profits, gains, or other financial benefits that you have obtained through or in connection with any Prohibited Activity. You agree that any profits derived from Prohibited Activities are the property of XEX and that XEX may deduct, set off, or recover such amounts from any assets held in your account or through any other legal means available.

3.7 No Liability

You acknowledge and agree that XEX shall have no liability whatsoever for any losses, damages, costs, expenses, or inconvenience arising from or in connection with any action taken by XEX pursuant to this Section 3, including but not limited to account suspension or termination, asset forfeiture, transaction reversal, or reporting to authorities. You further agree to indemnify, defend, and hold harmless XEX, its officers, directors, employees, agents, and affiliates from and against any and all claims, liabilities, damages, losses, and expenses (including reasonable legal fees) arising from or in connection with your violation of this Policy.

4. Reporting Mechanism

XEX encourages all users, employees, and members of the public to report suspected violations of this Policy. Reports may be submitted through the following channels:

4.1 How to Report

• Email: Send a detailed report to compliance@xex.to. Please include as much information as possible, including the username or account identifier of the suspected violator (if known), a description of the suspected prohibited activity, dates and times of the observed activity, any relevant transaction hashes, wallet addresses, or other identifiers, and any supporting evidence or documentation.
• In-Platform Reporting: Where available, use the in-platform reporting functionality to flag specific transactions, accounts, or content for review by the Compliance team.
• Anonymous Reporting: XEX accepts anonymous reports. If you wish to submit a report anonymously, you may do so via email without providing identifying information. While anonymity may limit our ability to follow up or provide feedback, all anonymous reports are reviewed and investigated with the same diligence as identified reports.

4.2 Whistleblower Protections

XEX is committed to protecting individuals who report suspected violations of this Policy in good faith. XEX strictly prohibits retaliation against any person who makes a good-faith report of a suspected violation, cooperates with an investigation, or refuses to participate in a Prohibited Activity. Retaliation includes any adverse action, whether direct or indirect, taken against a reporter in response to their report, including but not limited to account closure, restricted access, harassment, intimidation, or discrimination. Any XEX employee found to have retaliated against a reporter will be subject to disciplinary action, up to and including termination of employment.

4.3 Investigation Process

All reports of suspected violations are reviewed by the XEX Compliance team and are investigated promptly and thoroughly. Investigations are conducted in a confidential manner to the extent practicable, consistent with the need to conduct a thorough investigation and comply with applicable legal obligations. XEX may, in its sole discretion, take interim protective measures (such as account suspension) during the pendency of an investigation. The outcome of an investigation, including any actions taken, is determined by the Compliance team in consultation with legal counsel and senior management.

Contact Information

If you have any questions about this Prohibited Use Policy, please contact us at compliance@xex.to.

This Policy is effective as of the date set forth above and supersedes all prior versions of XEX's Prohibited Use Policy. XEX reserves the right to amend, modify, or replace this Policy at any time, in its sole discretion, with or without prior notice. Your continued access to or use of the Platform after any such change constitutes your agreement to the revised Policy.