Collateral Liquidation Framework Agreement

Updated: 7 September 2026

1. Introduction

This collateral liquidation framework agreement (the “Framework”) sets out, in a transparent manner, the process by which collateral pledged by Users, in accordance with the Terms of Services found here (the “Terms”), is applied in connection with transactions entered into with the Investment Firm. This Framework supplements the Investment Firm's Terms and forms part of the information provided to Users regarding margin, collateral, liquidation and enforcement arrangements.

Unless otherwise defined herein, capitalised terms used in this Framework shall have the same meaning ascribed to them in the Terms.

2. Collateral Structure

As mentioned under Section 1.9 of the Terms, whenever a User wants to engage in transactions with the Investment Firm:

• The User grants a pledge (security interest) in favour of the Investment Firm over the Pledged Accounts (i.e. your Accounts with the Investment Firm holding certain financial instruments (which may include tokenised equities or other financial instruments made available by the Investment Firm from time to time) and your Account with OKX EEA holding all fiat and crypto-assets); and

• Legal and beneficial ownership of the Assets in the Pledged Accounts remains with the User subject to the security provisions as provided for in Section 9 of the Terms.

The pledge and the security interest secure the Secured Obligations (as defined in the Terms), including all present and future obligations of the User arising out of or in connection with transactions such as margin requirements, settlement deficits, close-out exposures, and any other amounts payable under the Terms.

The types of crypto-assets currently accepted as eligible collateral include:

• BTC

• ETH

• SOL

• USDC

• DOGE

• USDG

The types of financial instruments currently accepted as eligible collateral can be found under Annex 1 of this Framework.

The Investment Firm may amend the list of eligible collateral in accordance with its internal risk policies and will publish any updates transparently. Haircuts or valuation adjustments applicable to eligible collateral are calibrated based on underlying liquidity, volatility and market depth and other relevant risk characteristics of the relevant asset or financial instrument, and are made publicly available.

The Investment Firm shall designate and hold only such portion of the User’s assets as is reasonably necessary to cover the User’s current and potential exposure arising from trading - with all other assets remaining available to the User for withdrawal, use and trading in the ordinary course.

3. Margin Monitoring and Liquidation Trigger

User’s positions are subject to ongoing margin monitoring through the Investment Firm's automated risk and margin engine. Liquidation may be triggered where:

• The User fails to meet initial or maintenance margin requirements;

• A margin shortfall or deficit arises;

• An Enforcement Event occurs under the Terms.

As a matter of operational practice, the system will generally issue a liquidation risk notice (via email, in-app notification or other platform communication) where margin levels approach critical thresholds. If the User does not remedy the shortfall, the Investment Firm may proceed with liquidation of Users' assets in accordance with the Terms.

User's consent to such liquidation and collateral realisation is provided upfront through acknowledgment and acceptance of the Terms and does not require separate transaction-specific authorisation at the time of enforcement.

4. Order of Collateral Application (“Order of Liquidation”)

In the event that collateral must be applied to satisfy a loss or deficit, the following structured and predefined order of application will apply. This order is designed to reflect prudent risk management principles and to minimise unnecessary market impact.

Step 1 - Assessment of Pledged Fiat Balances

The Investment Firm (operationally via OKX EEA) will first assess whether sufficient pledged fiat currency is available in the User’s account. Fiat currency is prioritised because it represents the most liquid and operationally efficient settlement asset. Where sufficient fiat is available, the required amount will be transferred from the User’s account held with OKX EEA to the Investment Firm’s proprietary account to settle the exposure.

Step 2 - Application of Pledged Crypto-Assets

If fiat balances are insufficient to cover the loss, the Investment Firm will rely on pledged crypto-assets held with OKX EEA. A predefined and transparent ranking methodology is applied when selecting which crypto-assets are to be liquidated. This ranking is based on:

• Market liquidity;

• Volatility characteristics;

• Market depth and ease of conversion; and

• Operational efficiency.

As a general principle, the most liquid and least volatile crypto-assets will be liquidated first in order to reduce potential slippage and market impact.

Step 3 - Application of Pledged Financial Instruments

If pledged fiat currency and crypto-assets are insufficient to satisfy the relevant loss or deficit, the Investment Firm may realise pledged financial instruments that have been designated as eligible collateral, including tokenised equities or other eligible financial instruments offered by the Investment Firm from time to time.

The selection and realisation of pledged financial instruments will be carried out in accordance with the applicable collateral eligibility criteria, valuation methodology, haircuts and liquidation parameters. Relevant factors may include market liquidity, volatility, market depth, available execution arrangements and the orderly execution of the relevant instrument.

Step 4 - Valuation, Conversion and Realisation

Where crypto-assets or financial instruments must be realised to satisfy a deficit:

• The Investment Firm's risk engine and/or applicable valuation systems will determine the relevant value using appropriate and current market pricing feeds or other relevant valuation sources;

• Applicable haircuts will be applied in accordance with the published collateral parameters; and

• The selected crypto-assets will be liquidated in accordance with the predefined ranking logic and pledged financial instruments will be realised in accordance with the applicable execution and liquidation arrangements for the relevant instrument.

The liquidation process is automated (as applicable) and governed by objective system parameters.

5. Settlement and Application of Collateral Proceeds

For clarity, the settlement mechanics operate as follows:

Where the User Incurred a Loss

In respect of fiat currency and crypto-assets held with OKX EEA, OKX EEA transfers, as applicable, settlement currency only (being USD and/or stablecoins):

• Fiat currency; or

• The USD and/or stablecoin proceeds resulting from the liquidation of crypto-assets

from the User’s pledged assets to the Investment Firm’s proprietary account in order to settle the exposure.

Where pledged financial instruments safeguarded by the Investment Firm are required to be realised, the Investment Firm may sell or otherwise realise the relevant instruments in accordance with Section 4 above. The resulting proceeds will be applied solely towards satisfaction of the relevant User's Secured Obligations.

Where the User Realises a Profit

The Investment Firm transfers the corresponding profit amount from its proprietary account to the User’s account held with OKX EEA.

The Investment Firm does not hold ongoing User fiat currency or crypto-asset balances outside such settlement arrangements. For the avoidance of doubt, this does not affect the Investment Firm's separate safeguarding of User financial instruments pursuant to its trustee, custodian and nominee authorisation.

6. Legal Basis for Enforcement

The application and liquidation of collateral are grounded in the legal framework set out in the Terms, including:

• The Security over Assets held with the Investment Firm and/or OKX EEA, as applicable;

• The right of set-off;

• The irrevocable mandate by way of security; and

• The margin and liquidation provisions.

By accepting the Terms and the applicable collateral/security provisions, the User provides advance consent to the transfer, liquidation and application of collateral in the event of margin deficiency or enforcement. No additional consent is required at the time of liquidation.

7. Transparency and Disclosure

This Framework is intended to provide a clear and comprehensive explanation of:

• How losses are calculated;

• How collateral is valued;

• The order in which assets may be applied; and

• The roles of the Investment Firm and OKX EEA in the settlement process, including the distinction between User fiat/crypto-assets held by OKX EEA and User financial instruments safeguarded by the Investment Firm.

Annex 1

List of Financial Instruments that can be used as Collateral