I. Trading Behavior and Characteristics of Ultra-Short-Term Trading
1.1 Ultra-short-term users
1. Trading accounts that open and close positions rapidly within a very short time (within 3 minutes) and accumulate 5 such transactions per day will be classified as prohibited ultra-short-term trading.
2. Orders with a daily holding time of less than 3 minutes account for more than 50% of the total number of orders.
3. Orders with a daily holding time of less than 3 minutes account for more than 50% of the total transaction value.
4. The average daily holding time for a single account is less than 3 minutes.
1.2. High-frequency users
A single account makes 60 or more trades per day (opening or closing a position counts as one trade).
If multiple linked accounts are involved in transactions, and the cumulative number of transactions by these linked accounts exceeds 60 per day, it will be treated as high-frequency order placement.
II. Types and Characteristics of Related Accounts
Multiple linked accounts place orders for the same product, the same direction, similar proportions of lots, similar opening prices, and similar closing prices within the same time period.
Using the same account or multiple linked accounts, within the same time period, for the same product, in different directions, and with similar proportions of lots, open and close positions using manual or pending orders.
Using the same device to create multiple users at different times, or having multiple associated users with the same IP address.
They exploit system vulnerabilities to obtain API interfaces and then conduct transactions using programs, scripts, web crawlers, and other related methods.
If there are multiple linked accounts making transactions, and the cumulative number of transactions by these linked accounts exceeds 60 per day.
III. Types and characteristics of order brushing, A/B account manipulation, and high-frequency illegal trading
Multiple linked accounts place orders for the same product, the same direction, similar proportions of lots, similar opening prices, and similar closing prices within the same time period.
Using the same account or multiple linked accounts, within the same time period, for the same product, in different directions, and with similar proportions of lots, open and close positions using manual or pending orders.
In a very short time, opening and closing positions can be done quickly, within 3 minutes.
If a single UID has ≥50 daily trading orders, and the proportion of orders with an opening/closing cycle of ≤3 minutes exceeds 50% of the total order volume, trading will be immediately suspended, withdrawals will be prohibited, all principal and illegal profits will be confiscated, and no appeals will be accepted.
If a single UID has between 20 and 50 trading orders per day, and the trading volume of orders with an opening and closing cycle of ≤3 minutes accounts for more than 70% of the total trading volume, all illegal profits will be confiscated and the principal will be refunded. However, an appeal can be made through customer service to apply for the lifting of the trading restrictions.
IV. Types and Characteristics of Wash Trading
Password theft. Password theft refers to the act of using stolen transaction passwords to conduct transactions between the stolen passwords and the user's controlled account, disrupting transaction management order and achieving the purpose of transferring funds.
Wash trading involving related accounts. This refers to the act of two or more related accounts, through pre-planning or prior agreement with others, simultaneously submitting orders at the same price. One account buys high and sells low, resulting in a clear loss, or buys low and sells high, resulting in a clear profit, thereby transferring funds from the client's account to their own account.
The agent transfers funds from the principal's account through wash trading. This involves the agent using the principal's account to conduct transactions with their own account, thereby transferring funds from the principal's account to their own account.
Identifying linked accounts: Information such as similar registration time, same registration IP, and same deposit/withdrawal address.
V. Abnormal trading behaviors as stipulated by the exchange
Excessive trading behavior in the market: Large intraday trading volume;
Self-trading behavior;
The combined holdings of related accounts under actual control exceed the exchange's position limits;
The actual related accounts used wash trading and other methods to manipulate market prices and illegally profit.
Account theft: Customers illegally steal other people's accounts and passwords, or use linked accounts to conduct illegal or irregular transactions and transfer funds;
Using accounts and linked accounts to engage in fraudulent transactions;
Illegal quantitative trading;
Using one's own account, or multiple accounts, to engage in A/B trading;
High-frequency trading, illegal quantitative trading, or arbitrage trading;
The actual related accounts engaged in abnormal convergent trading activities.
VI. Penalties for clients engaging in illegal transactions such as wash trading and order brushing.
According to the relevant regulations of the exchange, the exchange will impose certain penalties on investors who violate the rules, such as ordering rectification and confiscating illegal gains. For minor offenses, penalties may include warnings, forced liquidation, and suspension of new trading positions; for serious offenses, penalties may include public criticism, forced liquidation, suspension of new trading positions, account freezing, and being declared a "market entrant." If the offense involves violations of the laws of the country in which the violation occurred, the exchange will transfer the case to judicial authorities and pursue legal action through the courts.
*Special Note: The specific parameters mentioned above are for reference only. FalconX has a comprehensive risk control system that automatically identifies violations based on transaction behavior data. The platform reserves the right to the final interpretation of any violations. If you have any questions about your account being banned from trading, please contact the platform's online customer service at any time.
VII. Risk Control of Options Contracts
To ensure fairness in the options market, FalconX uses transparent and impartial data sources to set option parameters. The platform rigorously monitors all trading activities; any attempt to undermine market fairness by exploiting product data patterns or vulnerabilities, or to use improper means to harm the interests of other users, is considered illegal arbitrage. For the first instance of a violation, the platform will implement a refund and risk control measure to ensure the rights of unaffected users are protected.
If serious violations are discovered, the platform will permanently impose risk control measures on the offending account, restricting its privileges and preventing further unfair transactions. This measure aims to protect the transaction security and fair competition of all users and maintain a healthy platform ecosystem.
To learn more about the specific risk control rules and related processing regulations, users are welcome to contact FalconX's official customer service at any time. We will provide detailed answers and support to ensure that every user can trade in a fair and just environment.