SuperStrat Emergency Powers Policy

Version 1.0.0 Date of last revision: 2026-09-02 Effective from: publication on the Interface

This Policy is an integral part of the SuperStrat Terms of Use (the "Terms") and is referred to in Section 3.3 of the Terms and in the Risk Disclosure. Capitalized terms have the meanings given in the Terms. It describes the emergency functions of the Protocol as deployed, who may exercise them, when, for how long, what is published, and what happens to withdrawn assets.

1. Purpose and Scope

1.1. Each Vault deployed through the Protocol includes two emergency functions held by the address holding that Vault's admin role (the "Admin"):

(a) Pause. The Admin may pause the Vault. While paused, new deposit requests, new redemption requests, valuation proposals, settlements and allocations of assets to the trading account are suspended. Claims of requests that were settled before the pause remain possible, and the curator-inactivity cancellation described in Section 1.3 remains available. The Admin may unpause the Vault at any time.

(b) Emergency withdrawal. While the Vault is paused, the Admin may withdraw the entire balance of the Deposit Asset held by the Vault contract to the Admin's own address. This balance includes the assets behind pending deposit requests, the assets behind pending redemption requests, and settled redemption amounts that have not yet been claimed. The withdrawal terminates the Vault permanently: after it, no further deposit, redemption, settlement, claim or trading function of that Vault can be executed.

1.2. Apart from the claim of an already settled request and the cancellation described in Section 1.3, the Protocol provides no function allowing a depositor to reclaim assets from a paused Vault. Once the emergency withdrawal has been executed, no claim and no cancellation can be executed any more, and the only route by which depositors recover value is the redistribution described in Section 6 of this Policy.

1.3. The emergency functions are distinct from the Protocol's curator-inactivity mechanism. If no settlement has occurred for seven consecutive days, a depositor may cancel a pending (unsettled) deposit or redemption request and recover the assets or Vault Shares behind it, provided the Vault has not been terminated; a pause does not suspend that mechanism. It reaches only pending requests held by the Vault contract and is not governed by this Policy.

1.4. The emergency withdrawal reaches only assets held by the Vault contract. Assets allocated for trading are held in a trading account controlled by the relevant Curator. Deposit Asset balances held in that trading account can be recalled to the Vault contract by the Curator at any time and, while the Vault is paused, by the Admin, in each case only to the extent the trading account has authorised the Vault to pull them. Assets committed to positions on a Prediction Market Venue, or moved by the Curator beyond the trading account, cannot be recalled by the Protocol; their recovery depends on the Curator.

2. Who Holds the Power

2.1. The emergency functions are exercisable only by the address holding the admin role of the relevant Vault. That address is stated on the Vault Sheet of each Vault, together with the identity of the person controlling it: the Operator, an Affiliate, or the Vault's Curator.

2.2. For every Vault operated by the Operator or an Affiliate, the admin role is held on a hardware wallet that is not used for any other purpose. The Operator recommends the same practice to every Curator holding an admin role, and the Curator Due Diligence Policy takes key hygiene into account.

2.3. The Operator holds and may exercise the emergency functions of a Vault only where the Operator itself holds that Vault's admin role. Where the admin role is held by a Curator, the Operator has no technical ability to pause that Vault or to withdraw its assets, and can only act as described in Section 6 of the Curator Terms.

2.4. A change of the address holding the admin role is subject to the Protocol's 48-hour timelock, during which the pending change is visible on-chain and may be cancelled by the current Admin.

3. Triggers

3.1. The Admin may pause a Vault only where the Admin reasonably believes that one of the following circumstances exists:

(a) an exploit of the Protocol or of the Vault is in progress or has occurred, or a credible vulnerability report indicates that assets are at risk;

(b) a privileged key of the Vault (admin, curator, oracle, or the trading account) has been compromised, or its compromise is reasonably suspected;

(c) a competent authority has ordered, or has required in a manner the Admin considers binding, that the Vault's activity be suspended;

(d) the trading account of the Vault at a Prediction Market Venue has been frozen, restricted or otherwise impaired in a manner that prevents the Vault's positions from being managed or liquidated;

(e) the Curator has engaged in conduct that endangers Vault assets, or has become unreachable in circumstances where continued operation endangers Vault assets; or

(f) a defect of the Protocol, of the Valuation Service or of a dependency makes settlement impossible or would make it produce an incorrect result.

3.2. The Admin may execute the emergency withdrawal only where a circumstance listed in Section 3.1 exists and the Admin reasonably concludes that the assets held by the Vault contract cannot be protected by the pause alone, or that the Vault cannot resume normal operation. Before executing it, the Admin recalls to the Vault contract every Deposit Asset balance that can be recalled from the trading account under Section 1.4, so that the withdrawal and the redistribution under Section 6 cover as much of the Vault's assets as possible.

3.3. Neither function may be used to obtain a commercial advantage, to prefer one depositor over another, to avoid a settlement the Admin merely finds inconvenient, or for any purpose other than the protection of Vault assets and compliance with Applicable Law.

4. Time Limit

4.1. A Vault may remain paused for at most 30 consecutive days.

4.2. Before that period expires, the Admin must either: (a) unpause the Vault, allowing normal operation to resume; or (b) execute the emergency withdrawal and publish the distribution plan described in Section 6.

4.3. Where the circumstance that justified the pause persists at the end of the 30-day period and the Admin considers that neither option is safe, the Admin publishes on the Interface, before the period expires, the reasons for extending the pause and the date, not more than 30 days later, at which the Admin will decide. A pause may be extended in this manner no more than once.

5. Publication

5.1. Within 24 hours of any pause, unpause, emergency withdrawal or extension under Section 4.3, the Admin publishes a notice on the Interface and on the page of the affected Vault stating: (a) the action taken and the time of the on-chain transaction; (b) the category of trigger under Section 3.1, described in sufficient detail for depositors to understand the situation without compromising an ongoing security response; and (c) the expected next step and, where applicable, the date by which the Admin will decide under Section 4.

5.2. Where the Admin is a Curator, the Curator publishes the notice through the Vault's news section on the Interface. The Operator may add its own notice on the Vault page.

5.3. Every on-chain emergency action is in any event visible on the Polygon PoS blockchain through the events emitted by the Vault contract.

6. Destination and Redistribution of Withdrawn Assets

6.1. Assets withdrawn through the emergency withdrawal are transferred by the Protocol to the address holding the admin role, as stated on the Vault Sheet. No other destination is technically possible.

6.2. Where the Operator or an Affiliate is the Admin, withdrawn assets are held solely for redistribution to the persons entitled to them and are not used for any other purpose.

6.3. Entitlements are determined as follows: (a) each holder of Vault Shares, including holders of Vault Shares locked behind a pending redemption request, is entitled to a share of the withdrawn assets pro rata to the Vault Shares held, valued at the last net asset value validated by a settlement before the pause; (b) each depositor with a pending deposit request is entitled to the Deposit Asset amount of that request, which was never allocated to trading; and (c) each depositor with a settled but unclaimed redemption is entitled to the settled amount. Where the withdrawn assets are insufficient to satisfy all entitlements in full, the amounts in (b) and (c) are satisfied first, and the remainder is distributed pro rata among the persons entitled under (a).

6.4. Within 30 days of the emergency withdrawal, the Admin publishes on the Interface a claim procedure identifying the entitled addresses and amounts, and begins distribution. Distribution is made to the wallet address recorded on-chain as the holder or controller of the relevant Vault Shares or requests, unless a competent authority orders otherwise.

6.5. Assets recovered from the Vault's trading account after the withdrawal, if any, are added to the distribution under the same rules.

6.6. The Admin keeps a record of the withdrawal, the entitlement calculation and each distribution, and makes the calculation available to any entitled person on request.

7. What This Policy Does Not Do

7.1. This Policy describes how the Operator will exercise powers it holds. It does not create any right, claim or remedy against the Operator or its Affiliates beyond those stated in the Terms, and it is subject to Sections 11, 12 and 13 of the Terms.

7.2. This Policy does not apply to a Vault whose admin role is held by a third-party Curator, except that the Curator Terms require the Curator to exercise the emergency functions in accordance with Sections 3, 4, 5 and 6 of this Policy and make the Curator alone responsible for doing so.

7.3. This Policy does not guarantee that a pause or an emergency withdrawal will prevent loss. Assets committed to positions on a Prediction Market Venue, and any assets the Curator has moved beyond the reach of the recall described in Section 1.4, are outside its reach, and an exploit may complete before the Admin can act.

8. Review

This Policy is reviewed at least once a year and whenever the emergency functions of the Protocol change. Each review is dated and the version number incremented. Because the Terms incorporate this Policy by reference, an amendment to it is governed by Section 18 of the Terms.

SuperStrat Emergency Powers Policy, Version 1.0.0. The authoritative version of this document and its cryptographic hash are published at superstrat.io/emergency-powers.