KDX has the authority to take any action deemed appropriate to preserve market integrity. Such actions include, but are not limited to, the halting of trading, modifying risk-mitigating parameters, restricting all Customer or specific Customer access to KDX, restricting Order types, cancelling Open Orders, or any other actions deemed to be in the best interest of KDX.
Protecting Fair Trading for Everyone
KDX is committed to maintaining a fair, secure, and orderly trading environment for all users. To achieve this, KDX has the authority to take actions when necessary to preserve market integrity and protect our trading community.
What Does "Market Integrity" Mean?
Market integrity means ensuring that:
- Trading is fair for all participants
- The platform operates securely and reliably
- Market manipulation is prevented
- All users have equal opportunities to trade
What Actions Can KDX Take?
When necessary to protect the market and users, KDX may take one or more of the following actions:
Trading Controls
- Halt trading: Temporarily stop all trading activities on the platform or for specific assets
- Cancel open orders: Remove pending orders that have not yet been filled
- Restrict order types: Limit which types of orders can be placed (for example, allowing only certain order types during volatile periods)
Risk Management
- Modify risk parameters: Adjust trading limits, position sizes, or other safety measures to reduce risk during uncertain market conditions
Access Controls
- Restrict platform access: Limit access to KDX for all customers or specific customers if necessary to protect market integrity
Other Protective Actions
KDX may take any other actions deemed necessary and in the best interest of the platform and its users. These actions are always taken with the goal of maintaining a safe and fair trading environment.
When Are These Actions Taken?
These measures are implemented when KDX determines they are necessary to:
- Prevent market manipulation or abuse
- Protect users during extreme market volatility
- Address technical or security concerns
- Comply with regulatory requirements
- Maintain orderly and fair market conditions
Market Manipulation is Strictly Prohibited
Market manipulation of any kind is not allowed on KDX. All customers must trade fairly and honestly.
What is Market Manipulation?
Market manipulation includes any actions taken by a customer (or people working together with a customer) that are intended to:
- Deceive or mislead other traders: Tricking other users into making trading decisions based on false information
- Artificially control prices or volume: Manipulating the price or trading volume of an asset in an unfair way
- Support manipulation activities: Helping, enabling, financing, or endorsing any of the above activities
Market manipulation can include actions both on KDX and outside the platform. KDX and the Securities Commission (SC) may identify additional types of manipulation from time to time.
Common Examples of Market Manipulation
Here are some specific examples of prohibited manipulative practices:
- Front-running: Trading ahead of large orders with knowledge of upcoming trades
- Wash trading: Buying and selling the same asset to create false activity
- Bear raiding: Spreading negative information to drive prices down artificially
- Spoofing: Placing fake orders to trick others, then canceling them
- Layering: Placing multiple orders at different prices to manipulate market perception
- Churning: Excessive trading to generate fees without real investment purpose
- Quote stuffing: Flooding the market with orders to slow down or confuse other traders
Consequences of Market Manipulation
KDX takes market manipulation very seriously. If you are identified as engaging in market manipulation:
- First offense: You will receive a stern warning and be added to our blacklist for monitoring
- Repeat offense: You will be fully prohibited from trading on KDX permanently
Self-Trade Prevention
To prevent you from accidentally trading with yourself, KDX has an automatic self-trade prevention system. This protects you from unintentionally matching your own buy and sell orders.
What is a Self-Trade?
A self-trade happens when your own buy order (Taker Order) would match with your own sell order (Maker Order), or vice versa. This is generally not intentional and doesn't benefit you as a trader.
How Does KDX Prevent Self-Trades?
KDX automatically prevents self-trades from happening. Here's how it works:
When Both Orders Are the Same Size
If your maker order and taker order are the same quantity and would match with each other, both orders will be automatically cancelled. This prevents the self-trade entirely.
Example: You have a sell order for 10 coins and accidentally place a buy order for 10 coins at the same price. Both orders will be cancelled.
When Orders Are Different Sizes
If your maker order and taker order are different quantities and would match with each other:
- The smaller order will be completely cancelled
- The larger order will be reduced by the amount of the smaller order
- The remaining portion of the larger order will stay open in the order book
Example: You have a sell order for 15 coins and accidentally place a buy order for 10 coins at the same price. The buy order (10 coins) will be cancelled, and your sell order will be reduced to 5 coins, which remains open.
All actions taken by KDX are designed to protect you and the wider trading community, ensuring everyone can trade in a secure and fair environment.
Having trouble? Contact us at support@kineticdax.zendesk.com