• Blockchain: A distributed ledger that records transactions between parties in a verifiable and permanent way.
• Delivering Participant: The Participant that is required to deliver the underlying commodity through the Settlement Facility.
• Digital Asset: Bitcoin, and any other "digital currency" which is a "commodity" under the Commodity Exchange Act, as amended. For this purpose, "digital currency" means any type of digital unit that is used as a medium of exchange or a form of digitally stored value (including digital units of exchange that (1) have a centralized repository or administrator, (2) are decentralized and have no centralized repository or administrator, and/or (3) may be created or obtained by computing or manufacturing effort).
• Digital Asset Delivery Address: A unique identifier that serves as a virtual location where a Digital Asset can be sent.
• Receiving Participant: The Participant that is required to take delivery of the underlying commodity through the Settlement Facility.
• Settlement Facility: The Digital Asset delivery facility, Bitnomial Settlement, LLC, or any successor organization authorized by the Exchange. Bitnomial Settlement, LLC is authorized by the Exchange and not licensed, approved, or registered with the CFTC.
• Transfer: Transmission of a Digital Asset between the Settlement Facility and a Delivering or Receiving Participant. Delivery shall be fully effected and transferred if reflected by a consensus of nodes on the Digital Asset Blockchain and after being confirmed as such by the Settlement Facility.

1. A Participant and its respective Clearing Member carrying a position that is required to make or take delivery hereby guarantees and assumes full and unconditional responsibility for the performance of all delivery requirements set forth in the Rules.

2. Participants are required to register accounts for the purpose of making or taking delivery with the Settlement Facility and Clearinghouse before the start of the delivery period. A Participant may effect delivery only through the Settlement Facility.

3. In the event of a default or failure of a Clearing Member during the delivery period or process, the Clearinghouse shall not be obligated to make or take delivery of Digital Assets.

4. Any Participant intending to make or take delivery of a Digital Asset pursuant to a Futures Contract shall maintain a valid Digital Asset Delivery Address on record with the Settlement Facility to deliver and/or receive and to hold the respective Digital Asset.

5. Any Participant intending to make delivery of a Digital Asset agrees to transfer control of that asset to the Settlement Facility in anticipation of delivery in accordance with Exchange Rules.

6. Each Delivery Participant represents and warrants, to the best of its knowledge, to each Receiving Participant, the Exchange, the Clearinghouse, and the Settlement Facility that the Digital Asset subject to delivery is free and clear of all adverse claims, security interests, liens and encumbrances of any kind whatsoever. Each Participant acknowledges and agrees that the Exchange, the Clearinghouse, and the Settlement Facility provide no representation or warranty as to good or marketable title to any Digital Asset subject to delivery. Each Receiving Participant hereby waives any right to bring a claim, whether in law or equity, against the Exchange, the Clearinghouse, and the Settlement Facility with respect to any defect in, or lack or failure of, good or marketable title of any Digital Asset delivered to Receiving Participant.

7. The rights and obligations of Clearing Members for contracts cleared by the Clearinghouse, including but not limited to rights and obligations regarding clearing and settlement, variation payments and performance at expiration, shall be as set forth in the By-Laws and Rules of the Clearinghouse.

8. Clearing Members will not, under any circumstances, be required to own, hold, or control Digital Assets under Exchange Rules, but Clearing Members must ensure, through position monitoring and communication with their customers, as Participants, that such customers are able to satisfy their obligations regarding delivery and acceptance thereof under the applicable Clearinghouse and Exchange Rules.

9. Clearing Members must confirm that Delivering Participants deliver the appropriate amount of Digital Asset to the Settlement Facility during the Delivery Period.

10. All Participants and their respective Clearing Members with obligations to make or take delivery are subject to the Clearinghouse Rulebook.

1. Notice. Upon final settlement, all open positions serve as a binding delivery notice to the Clearinghouse. The Delivery Notice is not transferable.

2. Final Settlement Price. The final settlement price shall be the sole basis for delivery.

3. Final Delivery. Final delivery will be made in the manner specified by the Exchange.

   1. Upon instruction by the Clearinghouse to the Exchange, the delivery of Digital Assets pursuant to Futures Contracts shall be effected by the Settlement Facility by transferring the relevant amount of the Digital Asset from the Digital Asset Delivery Address of the Delivering Participant to the Digital Asset Delivery Address of the Receiving Participant on the Digital Asset's Blockchain. Delivery shall be fully effected and transferred if reflected by a consensus of nodes on the Digital Asset's Blockchain and after being confirmed as such by the Settlement Facility (a "Transfer").

   2. Upon a Transfer of Digital Assets from the Digital Asset Delivery Address of the Delivering Participant to the Digital Asset Delivery Address of the Receiving Participant on the Digital Asset's Blockchain, each Participant hereby agrees that all title, ownership and control of such Digital Asset, and all risk of loss associated with the misappropriation or loss of such Digital Asset, shall reside solely with the Receiving Participant.

   3. Neither the Exchange nor the Clearinghouse will have any responsibility or liability to any Person for the use of, or any failure, error, action or omission of, the Settlement Facility.

1. All transaction fees required to make delivery of Digital Assets through the Settlement Facility must be paid by the Participant that is seeking to make delivery in addition to the full delivery amount.

2. All transaction fees required to take delivery of Digital Assets through the Settlement Facility must be paid by the Participant seeking to take delivery.

3. The Settlement Facility is authorized to deduct the transaction fees from the delivery amount in the case of a Participant taking delivery.

1. The failure of the Delivering Participant to deliver sufficient Digital Assets to the Digital Asset Delivery Address in a timely manner shall constitute a delivery failure by the Participant and subject them to disciplinary action. Clearing Members are financially liable for delivery failures of their accounts, including customer accounts, and must pay financial performance upon delivery failure. "Financial performance" means payment of commercially reasonable costs in US Dollars related to replacing the failed delivery but does not include physical performance or legal fees. Payment of reasonable costs will be determined at the sole discretion of the Exchange based on the final settlement price of the contracts that should have been delivered.

2. If a Participant is required to pay funds pursuant to Rule 1103, but fails to deposit such funds in order to make timely payment on the date required, the Exchange may, in its sole discretion, impose a fine upon the Participant pursuant to the schedule of fines listed in Chapter 6 and any other compensation due to the late or inaccurate delivery.

1. To qualify a Digital Asset as eligible for delivery, the Digital Asset sent through the Settlement Facility must be accepted as valid by the Digital Asset Blockchain consensus protocol and must be at a block depth acceptable to the Settlement Facility.

2. New Digital Assets that are created as a result of a fork in the Digital Asset protocol during the term of a futures or options contract are not eligible for contract delivery. New Digital Assets created as a result of a fork in the Digital Asset protocol while the Settlement Facility is in the process of delivery will not be delivered to the Participant taking delivery of the forked Digital Asset. The Settlement Facility will return the new Digital Assets created, less any transaction fees, to the Participant making delivery at a later date determined by the Exchange. In the case of a fork where it is not clear which is the new Digital Asset chain, the Exchange has sole discretion to determine which chain will be delivered and which will be returned.

In connection with, and as a condition to, performing the functions assigned to it herein with respect to Digital Asset delivery, the Settlement Facility will maintain all books and records relating to Transfers of Digital Assets. Such records must be available for inspection by the Exchange and the CFTC and must be maintained in a form acceptable to the Exchange for a period of not less than 5 years from the date of the relevant transaction. Further, the Settlement Facility shall maintain a set of operational procedures to which the Exchange shall access and shall keep the Commission informed of any material changes to such procedures.