Pre-IPO Markets

What a Pre-IPO Position Is and Is Not

A position in a Pre-IPO market is a cash-settled perpetual position. It is not:

• Ownership of any share, equity interest, or security in the referenced company

• An allocation in the company’s IPO

• A right to acquire any share or security in the referenced company

• A claim against the issuer, its directors, officers, employees, shareholders, underwriters, or any party associated with the eventual public listing

Holders of Pre-IPO positions do not have voting rights, dividend rights, information rights, allocation rights, or any other rights typically associated with ownership of the referenced company’s equity.

Pricing

Pre-IPO markets reference an external pre-listing price feed. For internal compliance reasons, these price feeds are sourced externally rather than constructed internally. See Oracle Pricing for the current provider.

Transition to a regular market

When the referenced issuer completes its public listing, the Pre-IPO market is expected to transition to a spot-market price reference feed. This transition typically occurs once the underlying begins regular-way trading and sufficient external market data is available to support standard oracle pricing, usually during the first regular trading session after listing.

This assumes the company completes a public listing on a recognised exchange, in the expected jurisdiction and listing structure.

If a company goes public through a non-standard structure, such as a foreign exchange listing, depositary receipts, a direct listing, or a SPAC combination, Extended may handle the event in one of the following ways:

• Conversion: the perpetual market continues trading against an adjusted reference asset, with any necessary adjustments applied

• Settlement: the market and all open positions are settled at the Mark Price

Extended will choose the approach that best preserves the economics of the original market. Where practicable, the specific treatment will be communicated in an announcement published ahead of the event.

Risks

Pre-IPO markets carry risks including pricing risk, listing and conversion risk, settlement risk, and liquidity risk.