Settlement and Delivery

All Settlement Prices will be determined solely by the Exchange.

In the absence of a clerical error, payments of funds or transfer of funds to and from the Clearinghouse, including, but not limited to, intraday and end-of-day Margin payments, delivery payments, and security deposits, are final and unconditional when effected and cannot be reversed.

Delivery failures are subject to the Exchange-specific delivery Rules for the respective Contract and are assigned by the Clearinghouse in a manner to minimize the number of Participants impacted and assigns failures by newest to oldest positions.

Clearing Members must use Approved Financial Institutions and Settlement Facilities approved for use by the Clearinghouse.

Clearing Members must pay Margin calls by the deadline set by the Clearinghouse. An extension of time for such payments may be granted in writing by the President of the Clearinghouse.

In the event a Clearing Member fails to perform its delivery obligations to the Clearinghouse, for the avoidance of doubt, Clearing Members will not, under any circumstances, be required to own, hold, or control the underlying asset under these Rules unless the Clearing Member holds positions requiring delivery in its own proprietary account, but Clearing Members are responsible for ensuring their Customers, as Participants, are able to satisfy or satisfy their obligations regarding delivery and acceptance thereof under the applicable Rules.

In a Clearing Member default that involves a delivery failure, the Clearinghouse will ensure the financial performance to the Clearing Member whose actions or omissions did not cause or contribute to the delivery failure (the "Affected Clearing Member"). The Clearinghouse powers will include, but are not limited to, the right to sell or liquidate the underlying asset subject to delivery and to distribute the proceeds as appropriate and access the funds and collateral available in a default in accordance with Rule 817. For purposes of this Rule, "financial performance" means payment of commercially reasonable costs of the Affected Clearing Member related to replacing the failed delivery but does not include physical performance or legal fees. For the avoidance of doubt, payment of reasonable costs will be based on the price of the underlying asset when delivery should have been made, and the Clearinghouse is not obligated to make or accept delivery of the actual Digital Asset. 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.

An Affected Clearing Member seeking financial performance must provide prompt notice to the Clearinghouse of the delivery failure and a good faith estimate of any financial performance being sought within one (1) hour of the delivery deadline for the product. This deadline may be extended by the Exchange for extenuating circumstances in its sole discretion. An Affected Clearing Member seeking financial performance must provide the Clearinghouse with a detailed statement with supporting documentation of the amount sought, as well as any other documentation requested by the Clearinghouse.

Settlement and Delivery Timelines:

1. Final Physical Settlement Timeline. All remaining open positions at Final Settlement serve as a binding Delivery Notice to the Clearinghouse.

   Day	Time	Event
   T	10:00	Trading terminates; Final Settlement Prices reported to Clearinghouse.
   	12:00	Clearinghouse finalizes delivery assignments; Settlement Bank processes funds transfers and Settlement Facility processes asset transfers. Delivery complete; margins released.
   	13:00	Settlement Bank and Settlement Facility complete processing.

2. Daily Settlement Timeline

   Day	Time	Event
   T	16:00	Daily Settlement Prices reported; Clearinghouse calculates Margin requirements.
   	18:00	Clearinghouse submits settlement amounts to Clearing Members and Settlement Bank.
   T+1	09:30	Settlement Bank processes funds transfers.

3. Intraday Settlement Timeline. Performed as-needed; may not occur daily.

   Day	Time	Event
   T	11:00	Daily Settlement Prices reported; Clearinghouse calculates Margin requirements.
   	12:00	Clearinghouse submits settlement amounts to Clearing Members and Settlement Bank.
   	13:00	Settlement Bank processes funds transfers.

4. Spot Settlement Timeline

   Day	Time	Event
   T	15:00	Exchange Transactions reported; Clearinghouse nets positions.
   	15:30	Clearinghouse finalizes delivery assignments; Settlement Bank processes funds transfers and Settlement Facility processes asset transfers.
   	16:30	Settlement Bank and Settlement Facility complete processing.