Explanation on the Situations Affecting Market Prices and Platform Operation and the Measures and Precautions Taken

1. PURPOSE AND SCOPE

This Statement Regarding the Situations Affecting Market Prices and Platform Functioning and the Measures and Precautions Taken  has been prepared to inform OKX TR clients about economic, political, technological or systemic events and the occurrence of extraordinary situations that can lead to sudden and unexpected fluctuations in market prices and such as lack of liquidity in the market, trading suspension, technical failures affecting the functioning of the platforms, cyber attacks or natural disasters and the measures and precautions taken in this context. The obligations in this  will  apply as of the date the relevant legislation provisions enter into force.

2. CONDITIONS AFFECTING MARKET PRICES AND PLATFORM OPERATION

2.1. Crypto asset markets are shaped by supply and demand, so the value of crypto assets can be affected by speculative and manipulative transactions. In other words, due to the nature of crypto assets, there is a high risk of loss as well as profit. The values in these markets are subject to uncontrollable and irrational market dynamics and can change rapidly,     unpredictably and unforeseeably in an instant.     

2.2. Liquidity conditions in crypto asset markets may vary according to the supply and demand balance, the issuance quantity and terms of the crypto asset, the transactions conducted by individuals holding the relevant crypto asset, and other criteria. For this reason, crypto asset markets have variable liquidity levels and markets with low liquidity may increase volatility. Therefore, there are no liquidity guarantees for crypto assets, and depending on market conditions, these markets may change significantly in a very short period of time, and as a result, liquidity in the relevant crypto asset may increase or decrease, or there may not be a liquid market where you can sell your crypto asset.                         

2.3. There are many risks involved in transactions with crypto assets, including, but not limited to, cyber security breaches, restriction of market access, technical failures, termination of the network program, depreciation of crypto assets      and risks arising from the savings of project owners.

2.4. The Client should be aware of the wide range of risks that may arise when using an internet-based system. These risks may be related to hardware, software or internet connection failures. In this context, in order to raise client awareness, but by no means in a limiting manner, some examples of risks that the client may face include: malware infection; unauthorized access by third parties to the client's information and digital assets; cyber-attacks; artificial intelligence-based attacks; social engineering attacks; cryptoasset network failures;      computer viruses; communication interruptions; system failures and delays. In addition, other malware threats such as spyware, trojans, worms and phishing may also emerge that can harm the client or their devices. Such risks change every day with advancing technology and can take on different appearances. The client should check that the hardware, software, internet connection and other environmental elements are free from risks.                

2.5. The Risk Disclosure Form should be reviewed for detailed information and our clients should conduct their own research on both blockchain systems and the crypto assets they purchase and continue their transactions with due consideration of the risks. 

3. PRECAUTIONS AND MEASURES

3.1. Platform security is a key priority for OKX TR. In order to provide clients with a secure, uninterrupted and transparent crypto asset trading experience, comprehensive measures are implemented in many areas from information security to system resilience. The platform is constantly monitored against existing and emerging threats and protection mechanisms are updated by OKX TR. 

3.2.Reliable technology partnerships are utilized to protect client assets; regular security scans and analyses are conducted to detect systemic vulnerabilities. Rapid response and precautionary processes are implemented against identified risks.

3.3.In order to ensure the continuity of critical data, our systems are backed up automatically at regular intervals and in the event of a possible system failure, a fast recovery process is activated by preserving data integrity. Backup processes are periodically tested and updated. 

3.4.Within the scope of preventing cyber threats, security teams consisting of professionals specialized in their fields are in charge; continuous monitoring, analysis and auditing activities are carried out to ensure the holistic security of the system.

3.5.In order to increase the resilience of the platform against external threats, penetration tests are regularly conducted; through these tests, potential security vulnerabilities are identified and, to the extent possible, necessary improvements are planned and implemented in advance.

3.6.OKX TR is subject to regular security audits conducted by both internal audit units and independent third parties. These audits examine all layers of the platform's infrastructure, update security protocols, and identify areas for improvement.

3.7.The Client is responsible for the security of their account and must securely protect the password and/or other information used to access their account. Additionally, the Client must ensure that they can monitor the status of their account at all times.

3.8.Scenario-based business continuity and disaster recovery plans are prepared to ensure that business processes are not interrupted in extraordinary situations, and these plans are tested periodically.

3.9.A multi-channel communication protocol is implemented via e-mail and in-app notification to quickly inform clients about any interruptions or important events that may occur on the platform.

3.10.The system capacity of the platform is designed to be scalable to a certain extent in order for the system to be able to meet the intense trading volume in case of sudden market movements.

3.11.System performance, transaction volume and unusual movements are constantly monitored; automatic warning mechanisms are activated when suspicious activities are detected.

3.12.Manual authorization processes have been established to temporarily restrict certain functions on the platform (e.g. order submission or withdrawals) in unusual circumstances.

3.13.Communication protocols have been developed to coordinate with liquidity providers and infrastructure service providers in emergencies.

3.14.Cyber security awareness trainings are organized periodically for both employees and clients, raising awareness especially against social engineering and phishing attacks.