XUSD: Security Audits, Transparency and Trust

1 . S E C U R I T Y A U D I T S : T R A N S P A R E N C Y A N D T R U ST

Security is at the core of XUSDPrime. To ensure the highest level of safety within the rapidly evolving world of blockchain, *biweekly security audits* will be performed, and the results will be recorded directly to the blockchain. **XUSD Blockchain Holdings* is deeply committed to ensuring that **XUSDPrime* remains secure and trustworthy. This means that at any given time, users can verify the security status of XUSDPrime, fostering trust and transparency while ensuring that users can trust the integrity of the contract and its adherence to best security practices.

2 . K N O W N E X C H A N G E A D D R E S S E S : F A I R T R A D I N G

XUSDPrime introduces the concept of known exchange address cataloging. Why is this significant? These known

exchange addresses are recorded directly within the smart contract to ensure that trading below the base minimum price is barred from taking place via these known exchanges. This feature ensures fair trading, price

stability and yet further protects users from potential price manipulation tactics employed by hackers, scammers and bad actors of all kinds.

3. M A R K E T O P E R A T I O N S : P R E C I S I O N A N D E F F I C I E N C Y

Every day, precisely at **midnight GMT*, **XUSDPrime* will undergo a market closing and opening procedure much like traditional

markets. This is a crucial time when the available pool value and the Base Minimum Price (BMP) are calculated and applied. The Central

Controller Application, in tandem with the smart contract's logic, evaluates the current trade volume at market close. If the rate of trade has surged by more than 25% ABOVE the BMP, this volume is factored into establishment the new BMP for that trading day. This
mechanism offers a unique opportunity to further protect the daily trade profits relished by XUSDPrime traders. It creates a potential scenario where daily trade profits are locked in at each market close and opening - ensuring investment profits for the future.

The entire process is designed for minimal downtime. Market closures and openings are typically expected last no more than 5 minutes*, ensuring traders experience minimal disruptions. However, there's a biweekly exception when a security audit is performed. On these days,the process is designed to last no longer than 15 minutes*, ensuring the utmost security without compromising trading efficiency.

4. M A R K E T O P E R A T I O N S : P R E C I S I O N A N D E F F I C I E N C Y

Every day, precisely at **midnight GMT*, **XUSDPrime* will undergo a market closing and opening procedure much like traditional markets. This is a crucial time when the available pool value and the Base Minimum Price (BMP) are calculated and applied. The Central Controller Application, in tandem with the smart contract's logic, evaluates the current trade volume at market close. If the rate of trade has surged by more than 25% ABOVE the BMP, this volume is factored into establishment the new BMP for that trading day. This mechanism offers a unique opportunity to further protect the daily trade profits relished by XUSDPrime traders. It creates a potential scenario where daily trade profits are locked in at each market close and opening - ensuring investment profits for the future.

The entire process is designed for minimal downtime. Market closures and openings are typically expected last no more than 5 minutes*, ensuring traders experience minimal disruptions. However, there's a biweekly exception when a security audit is performed. On these days,

the process is designed to last no longer than 15 minutes*, ensuring the utmost security without compromising trading efficiency.

5 . M A N U A L & C H A I N L I N K P O O L V A L U E S E T T I N G

In the realm of ensuring both the accuracy and flexibility of the XUSDPrime smart contract, two distinct mechanisms have been introduced for setting the pool value: *Manual Pool Value

Setting* and Chainlink Pool Value Setting.

A. M A N U A L P O O L V A L U E S E T T I N G

This feature empowers XUSD Blockchain Holdings to directly input the current pool value as assets are assigned to the active asset pool. It's particularly advantageous in scenarios where:

- Immediate adjustments are required due to swift market changes.

- It serves as a fallback mechanism, especially if the Chainlink oracle faces temporary issues.

- It offers unparalleled control and flexibility, allowing for adjustments based on precise off-chain data as provided as well as controlled by our Central Controller Application.

To safeguard against potential misuse, this manual mode can be toggled on or off by XUSD Blockchain. Notably, when Chainlink is active, the manual mode is automatically deactivated to maintain data integrity - and vice versa.

B . C H A I N L I N K P O O L V A L U E S E T T I N G

Harnessing the power of **Chainlink*, a renowned decentralized oracle network, **XUSDPrime* can automatically determine the current pool value via value inputs made to the system via the automation of new assets assigned to the pool. This integration brings forth several key benefits:

- The decentralized nature of Chainlink ensures data is both tamper-proof and consistently reliable.

- Real-time data updates mean the pool value reflects current commodities market conditions.

- Chainlink's data aggregation from multiple sources guarantees the utmost accuracy in the pool value.

For added flexibility, **XUSD Blockchain Holdings* can set or modify the Chainlink address, ensuring data is always sourced from the most reliable oracle. If, for any reason, Chainlink* is

deactivated, the manual mode stands ready as a backup.

I N S U M M A R Y

The dual mechanism of Manual & Chainlink Pool Value Setting in XUSDPrime perfectly balances automation with control. **Chainlink's* decentralized, real-time data is complemented by the manual mode's adaptability and rapid response capability. This synergy ensures that all stakeholders have access to the most current and accurate pool

value, further solidifying trust and transparency within the **XUSDPrime* ecosystem.