Core Business Modules of CriptoAuge

Based on core services such as market trends, cryptocurrency trading, contract trading, wealth management, and new coin issuance, the CriptoAuge exchange provides diversified digital currency trading services to global users to meet the trading needs of different types of users. In addition, the CriptoAuge exchange is available on multiple platforms including IOS, Android, and Windows, supporting full business functions and enabling global users to conduct secure transactions anytime, anywhere.

3.1 Real-Time Market Information

CriptoAuge provides real-time cryptocurrency price information for multiple trading pairs and contracts, including hundreds of trading pairs with reference data such as prices, increases and decreases, highest and lowest prices, and 24-hour trading volumes, to support users' investment decisions with data.

In the future, CriptoAuge will develop a comprehensive market information system that integrates industry news, information, market trends, and data. It will provide users with important content such as the market trends of each digital asset listed on the platform, changes in major holding addresses, development progress, code updates, community activity, trading volumes, capital inflows and outflows, and industry information. It aims to provide timely, comprehensive, professional, and accurate information and data, closely monitoring industry applications,, hot topics, and policy developments. It is committed to providing the best products and services for blockchain entrepreneurs and digital currency investors.

• Information Strategy Development: Develop your own information strategy based on market trends.
• Copy Trading System: Users can choose to follow trades of trusted and successful investors.
• Mainstream Cryptocurrency Trading Information: Provides information services for cryptocurrency trading and OTC trading zones to global users.
• DeFi-Based Derivatives Trading Information: DeFi services such as liquidity staking, aggregators, NFTs, etc.

3.2 Fiat Currency Trading

Fiat currency trading refers to the purchase of digital assets using fiat currencies (such as RMB, USD, etc.) or the sale of digital assets for cash. It serves as our funding channel. The CriptoAuge fiat trading zone includes three main areas: quick buying and selling, C2C trading, and bulk trading. For example, in the C2C trading area, users can directly exchange fiat currencies for digital assets such as BTC, ETH, and USDT.

For beginners, the first step in digital asset trading is to purchase a digital asset. Some existing digital asset trading platforms have complicated procedures for buying and selling digital assets. To make it easier for new users, CriptoAuge offers a one-click purchase option, making it more convenient for people to participate in the cryptocurrency space.

CriptoAuge continues to establish legal fiat currency channels in various countries, with well-known banks providing services for fiat currency deposits, withdrawals, and settlements. It is also about to launch fiat currency trading pairs. These fiat channels and trading pairs will bring a large number of new users to the exchange. CriptoAuge will leverage the resources of traditional finance and the strengths of large institutions, having a more sensitive sense of legitimacy and regulatory compliance, and stronger support in financial licenses and traditional banking channels.

3.3 Cryptocurrency-to-Cryptocurrency (C2C) Trading

CriptoAuge connects to the entire network of cryptocurrency trading via API interfaces, providing investors with ample digital asset trading opportunities. Cryptocurrency trading is divided into three main sections: mainstream coins, potential coins, and newly listed coins, supporting trading of all mainstream cryptocurrencies on the market. Trading can be conducted at market price or through limit orders, depending on users' needs. To prevent abnormal market price fluctuations and personal financial losses caused by incorrect orders, CriptoAuge will offer real-time reminder services.

CriptoAuge supports trading markets for multiple mainstream cryptocurrencies such as USDT, BTC, ETH, TRX, XTZ, ADA, YFII, MLN, YFI, and MATIC. For example, if a user holds USDT, they can purchase any cryptocurrency that supports the USDT trading pair, and so on.

Example of CriptoAuge Cryptocurrency Trading Process:

• Step 1: Open the CriptoAuge official website and enter the cryptocurrency trading zone.
• Step 2: Select the trading zone (e.g., the BTC trading zone for pairs relative to BTC) and choose the cryptocurrency pair you wish to trade.
• Step 3: Choose to buy or sell the cryptocurrency, and select the order type (e.g., limit order, advanced limit order). For example, with a limit order, enter the price and quantity of the cryptocurrency you wish to buy, and click to purchase the virtual currency. In cryptocurrency trading, the trading fee is charged in the currency of the purchased cryptocurrency.

1）Cryptocurrency Trading Mechanism

The CriptoAuge trading system facilitates cryptocurrency-to-cryptocurrency trading, with automatic order matching by the system. It includes the following four types of order placement:

• Buy-Limit Order: Buyers can set a purchase price. If there are matching sell orders in the market, the system will automatically match them. If there are no matching sell orders or the quantity is insufficient, the remaining buy order will be placed in the buy order book, awaiting system matching.
• Buy-Market Order: Buyers cannot set a purchase price. The system automatically matches sell orders in the market, starting from the lowest price and moving upwards. If the quantity of sell orders is insufficient, the remaining buy order will be placed in the buy order book, awaiting system matching.
• Sell-Limit Order: Sellers can set a selling price. If there are matching buy orders in the market, the system will automatically match them. If there are no matching buy orders or the quantity is insufficient, the remaining sell order will be placed in the sell order book, awaiting system matching.
• Sell-Market Order: Sellers cannot set a selling price. The system automatically matches buy orders in the market, starting from the highest price and moving downwards. If the quantity of buy orders is insufficient, the remaining sell order will be placed in the sell order book, awaiting system matching.

2）Merchant Mechanism

In the OTC market of CriptoAuge, all transactions must be conducted through merchants who publish purchase and sell orders. Users can select corresponding orders for buying and selling cryptocurrencies. Merchants earn profits through the price difference in buying and selling. Only agents on the platform have the merchant permissions to publish advertising orders using the merchant system. The specific rules of the merchant system are as follows:

• Publishing Advertising Orders: Choose the type of advertisement (sell or buy), define the order limit, the quantity of the cryptocurrency, and the price. The limit is calculated in RMB, with a minimum and maximum transaction amount set. The user's transaction amount cannot be lower than the minimum amount and cannot exceed the quantity of the cryptocurrency multiplied by the price. The quantity of the cryptocurrency is the total amount of the cryptocurrency for purchase or sale in the order. For sell orders, the system automatically checks that the quantity does not exceed the asset balance; otherwise, the advertisement cannot be published. The pricing rule is based on a floating ratio from the platform's guided price, with lower prices for sell orders ranking higher and higher prices for buy orders ranking higher. In case of the same price, orders are sorted by submission time. The guided prices for buy and sell orders are set by the backend administrator and can be set separately.
• Advertising Management: Merchants can manage submitted advertisements and those in the trading process. Advertisements that have not been traded can be taken on or off the shelf, and modified (including changes to the limit, quantity, and price). Advertisements in the trading process cannot be taken off the shelf or modified, but can be used for payment and confirmation of release operations. If merchants or users do not confirm payment within 15 minutes, the order will be automatically canceled. If payment is confirmed but not actually made, or if payment is made but not confirmed by the other party, the backend can be contacted for manual confirmation of receipt or order cancellation.

3.4 Contract Trading

CriptoAuge offers a variety of contract trading services, including second-based contracts, delivery contracts, and perpetual contracts. CriptoAuge has achieved controllable losses in contract trading.

1. Second-Based Contracts

CriptoAuge is creating more opportunities for players in the second-based contract market to help them earn profits.

The gameplay of CriptoAuge second-based contracts is as follows:

• Users first select the cryptocurrency to trade on the CriptoAuge platform (e.g., BTC, ETH, LTC, BCH, EOS, XRP) and choose the trading time interval, ranging from shorter durations like 1min, 3min, 5min to longer durations up to 60min.
• Then, users set the trading amount and stop-loss/stop-profit levels within their acceptable risk range.
• CriptoAuge will conduct technical analysis of the currency's directional trend using its self-developed intelligent system, provide users with the basis for accurately judging the direction of price movement, and place orders based on the analysis.
• After placing the order, the system will automatically count down, and at the end of the specified time, the system will automatically settle the profit or loss to the trading account.

CriptoAuge adopts a new model, high-frequency trading, and a matching engine that stably supports large data volumes, high performance, and high concurrency. It uses a distributed architecture with rapid deployment of market and depth data, a firewall for attack prevention on the front end, and a covert separation deployment on the back end. It employs MD5+RSA (asymmetric encryption algorithm) to ensure account and password security and uses OSS+CDN static file acceleration mechanisms to ensure data file security. At the same time, it integrates five major systems—trading, financing, investment, tools, and expansion—endowing the system with powerful integration and scalability. Moreover, supported by substantial financial strength and lawful compliance, CriptoAuge is making profit-making for users simpler, faster, and more efficient.

2. Delivery Contracts

A delivery contract is an agreement between the two parties to conduct the contract delivery and purchase/sale at a specified time (delivery date) and at a specific price (token price). Delivery contracts come in weekly and quarterly forms. During the delivery period, trading is not allowed, with slight differences across platforms. The leverage available for delivery contracts is relatively lower. This contract is a digital currency contract denominated and settled in USDT, with regular deliveries.

CriptoAuge delivery contracts are settled in cash. Cash settlement means that the underlying asset is delivered in the form of currency. For CriptoAuge delivery contracts, the asset is USDT. CriptoAuge delivery contracts expire on the last Friday of each quarter. For example, the BTCUSD 0925 contract will expire on the last Friday of the third quarter of 2022, which is September 25, 2022. This is also known as the delivery date, as it is the time when the underlying asset is delivered.

The margin used for CriptoAuge delivery contracts is USDT, and the contracts are also settled in USDT, with trading fees paid in USDT. Like other CriptoAuge products, delivery contracts follow a multi-tiered fee structure. Additionally, they offer some supplementary functions. For example, certain tiers can offer discounted rates (or fee rebates) to market makers. This means that traders who can provide liquidity to the market will essentially earn profits. If you have an open contract, you must pay a delivery fee of 0.015%.

3. Perpetual Contracts

The CriptoAuge platform supports USDT margin perpetual contracts in isolated margin mode. Users can earn profits from the rise or fall of digital asset prices by choosing to go long (buy) or short (sell) based on their judgment of price movement. Perpetual contracts have no delivery date, and users can hold them indefinitely.

Contract trading rights and profit/loss calculation:

• Account Equity: The total equity of the USDT-based perpetual account for that cryptocurrency. The account equity for each contract is calculated independently and does not affect each other. Calculation method: Total equity of the USDT-based perpetual account = Account balance + Unrealized profit/loss.
• Account Balance: The quantity of the cryptocurrency held in the user's USDT-based perpetual contract account.
• Unrealized Profit/Loss: The profit or loss of the user's current position in the USDT-based perpetual contract for that cryptocurrency, which changes with the latest transaction price.

Unrealized profit/loss for long positions = (1/Average position price - 1/Latest transaction price) * Number of long contracts * Contract face value * Latest transaction price

Unrealized profit/loss for short positions = (1/Latest transaction price - 1/Average position price) * Number of short contracts * Contract face value * Latest transaction price

3.5 New Coin Issuance

CriptoAuge has the authority to issue new coins independently. Third-party projects can conveniently, securely, and efficiently issue their own tokens on the CriptoAuge platform, gaining initial consensus and liquidity aggregation.

CriptoAuge focuses more on undervalued projects in the market and high-quality new coins that are excluded by other trading platforms due to high barriers to entry. The platform's design aims to fully ensure market fairness and transparency. It can also meet regulatory compliance requirements for security, auditing, reporting, and analysis in the safest and most effective way.

CriptoAuge combines the characteristics of digital assets with the experience of world-class trading platforms and regulatory agencies to form a set of standards and mechanisms for screening new coins. Through continuous iteration and improvement of these standards and mechanisms, CriptoAuge works with market investors to discover the value of digital assets, allowing new coins to gain market recognition as soon as possible and giving investors and users the opportunity to subscribe to new coins first.

Additionally, CriptoAuge has a comprehensive set of standards for reviewing new coin issuances to ensure the balance of market value and the authenticity of projects, maximizing the protection of investors' and users' rights.

• New Coin Listing Procedure Review: For new listings, CriptoAuge first reviews whether they comply with the platform's listing procedures, from application for listing projects, registration and filing of application documents, submission to the listing committee for review, issuance of review opinions to listing preparations.
• Code Review: The project review committee has a specialized code review department that comprehensively reviews the architecture, readability, maintainability, feasibility of code functionality, and security of the code system for new listings.
• Whitepaper Review: To avoid the phenomenon of whitepapers being filled with empty promises and to protect investors' rights, the project review committee has a whitepaper review department that conducts in-depth analysis and review of the authenticity and rationality of whitepapers.
• Legal Compliance Review: The project review committee will also have a dedicated legal audit department to review the legal compliance of each new listing, ensuring it meets the legal requirements of the project's location and avoiding related non-compliance risks.
• Financial Review: The project review committee has a financial audit department that reviews the token distribution revealed in the whitepaper and requires the project team to regularly disclose the use of raised funds to ensure the rationality of the project's financial usage.

For coin listing risk control, the first phase of CriptoAuge's product risk control mainly focuses on due diligence before product launch, including the rationality check of historical data and parameters in the database, and the use of historical trading data or standardized derivative contracts and their market value to conduct on the model to assess its design rationality.

The second phase of CriptoAuge's product risk control focuses on the stable operation of the product. It establishes standardized access terms for various financial products and sets up sequential lock mechanisms in the form of smart contracts. After all reviewed financial products go live, they are listed and sold in a decentralized blockchain data format, forming a financial product library. In this stage, investors can freely choose products, which will not mislead investors due to human factors. The descriptions of all listed coins are supported by data generated after strict, and these data cannot be changed or deleted permanently.

3.6 Wealth Management Services

CriptoAuge offers a variety of cryptocurrency-based wealth management and investment products. In addition to existing mainstream digital assets, the platform also provides services such as indices, funds, insurance-like products, and margin trading to meet the diverse risk and return preferences of users. For example, CriptoAuge's cryptocurrency wealth management investments support multiple mainstream cryptocurrencies such as BTC, ETH, and USDT. The CriptoAuge wealth management account is a value-added product. The platform will distribute the majority of the interest income from leveraged lending based on the proportion of coins in the user's wealth management account. After transferring idle assets to the wealth management account, users can enjoy the returns from the account on a daily basis, with compound interest calculated daily and no minimum coin deposit requirement.

The CriptoAuge wealth management account product will create continuous value for users holding coins. Users participating in wealth management can lend their cryptocurrency assets and withdraw or redeem their principal at any time according to their actual situation to earn interest. Even without engaging in cryptocurrency trading, they can increase their digital asset holdings. CriptoAuge aims to provide diversified options for diverse users while ensuring the security of digital currencies. Aggressive users can entrust their digital assets to earn short-term profits, while long-term holders can entrust their digital assets to the platform to increase their holdings without trading. In the future, based on real-time market demand, CriptoAuge will support more cryptocurrencies and launch diversified cryptocurrency wealth management products. In addition to supporting more digital assets, it will also offer products with different lock-up periods and higher returns to provide reasonable cryptocurrency wealth management investment returns for investors.

1. Interest-bearing Coin Deposits

Fixed-term and demand deposits for interest-bearing coin deposits are one of the core products of CriptoAuge wealth management and a demonstration of yield trading services.

CriptoAuge wealth management will facilitate connections between users with idle digital assets and those in need of borrowing. It features flexible deposits and withdrawals, interest calculation by the hour, and customizable interest rates.

After transferring digital assets to CriptoAuge, the system will determine whether the lending is successful based on the user-set lending interest rate at each hour mark. If successful, the user will earn interest for that hour; otherwise, no interest will be earned, and the user will have to wait for the next hour's matching result.

As a cryptocurrency derivative wealth management product for investors, CriptoAuge wealth management offers two types: demand and fixed-term. Demand wealth management can be subscribed to or redeemed at any time, while fixed-term wealth management requires subscription and redemption based on rules.

The fixed-term/demand yield of CriptoAuge wealth management is principal-protected, ensuring 100% safety of the principal. It also has unique advantages such as instant deposit and withdrawal, stable principal protection, and low investment thresholds.

CriptoAuge wealth management not only offers instant withdrawal services but also significantly enhances its clearing and settlement capabilities through distributed architecture and other technologies, providing users with an extremely low investment threshold. This allows small and medium-sized investors holding a small amount of digital assets to participate in investments and earn considerable returns. While ensuring the absolute safety of investors' principal, CriptoAuge wealth management adopts a settlement model based on a "daily" unit, giving investors more security and filling the gap of no T+0 products in the digital currency financial services industry. When investors need to use the assets in CriptoAuge wealth management, the T+0 feature allows assets within the CriptoAuge protocol to be redeemed and credited in real-time at any time, making the entire process simple and efficient.

2. Token Investment Services

CriptoAuge's cryptocurrency wealth management and investment will build a professional token investment service system through smart contracts, forming a compliant industry standard, and will open up decentralized services to more token investment institutions in the future.

• Managing Token Investment Products: For investors, the opaque operations and low communication efficiency of traditional equity investment institutions have always been an intractable pain point. The token investment service system can help traditional investment institutions manage their own token investment products while deeply serving community investors.
• Engaging Investors: By developing modules such as co-investment and voting, investors can fully participate in various investment activities in the community, activating collective wisdom and gathering resources for the community.
• Compliance: Strengthening the management of professional digital asset management institutions and ensuring their lawful and compliant development is a major challenge. A highly transparent token investment service system will be a boon to the entire industry.
• Building Independent Tokenized Investment Management Communities: Relying on the token investment service system, a vast number of professional investment managers will be able to issue their own tokens in the future, building their own independent investment management communities and entering the blue ocean of digital asset investment.

3. Cryptocurrency Portfolio Investment Products

CriptoAuge's cryptocurrency wealth management and investment have launched cryptocurrency options and index portfolio investment products, and will continue to introduce various innovative products based on market demand in subsequent exchanges.

• Cryptocurrency Options: We will issue Bitcoin options and other cryptocurrency options. Due to the unique characteristics of options, such as high leverage, no liquidation, and no proration or forced reduction, we believe that options will be one of the best investment vehicles for cryptocurrency wealth management and investment.
• Cryptocurrency Futures: We are launching cryptocurrency futures, supporting not only mainstream coins like BTC and ETH but also other popular ICO coins. We will further optimize the mainstream futures business design in the market, adopting dynamic maximum leverage and dynamic position limit risk control models to reduce the risk of transaction liquidation. This is to adapt to the high price volatility and risk of ICO coins, providing users with a better trading experience and returns for their DeFi wealth management investments.
• Index Portfolio Investment: As the variety of cryptocurrency wealth management and investment products continues to increase, the difficulty for users to understand and select investment products is also rising. We collaborate with major exchanges and well-known industry experts to launch index and portfolio investment tools. These tools leverage the strong trend-following nature of index products, the effectiveness of technical analysis, and the ability to avoid single-variety black swan events, helping users trade better.

4. Staking and Lending Investment

Currently, the infrastructure for major cryptocurrencies has been established, but some auxiliary tools based on the buying, selling, and use of cryptocurrencies are still in flux to some extent. After the maturation of functions such as trading, investing, paying, and wealth management, and with the surging market investment demand, cryptocurrencies urgently need innovative approaches. DeFi staking and lending, as an important factor and method for driving market liquidity, is beginning to gain recognition from market investors. Against this backdrop, CriptoAuge is exploring new models of cryptocurrency staking and lending, launching DeFi staking and lending functions to enable holders of digital assets to directly and continuously obtain the circulating value of digital assets.

With the increasing market demand for cryptocurrency staking and lending, various types of lending platforms have emerged in the market. These include fast-matching platforms, order-matching platforms, quick-lending platforms, and platforms that combine order matching and quick lending. In terms of collateral coins, most products offer multiple collateral options with no clear advantages or disadvantages between them. However, differences can be seen in aspects such as the type of pledge, borrowing interest rates, pledge ratios, and fees. Currently, lending types are mainly divided into two categories: C2C matching and platform lending.

Lending types that integrate both forms, represented by CriptoAuge, are more readily accepted in the market and have a competitive edge. By combining the two models, CriptoAuge facilitates faster borrowing for borrowers. Although investors can currently only match automatically in the back-end and cannot see the investment targets, the CriptoAuge platform is actively optimizing and will soon achieve further functional improvements. The services provided by CriptoAuge include three aspects: First, pledging and borrowing, where borrowers pledge digital assets such as BTC as collateral and choose the borrowing term and interest rate; second, lending and wealth management, where lenders deposit USDT/CNYT into CriptoAuge and select lending conditions such as lending terms and interest rates; third, matching and completion, where the platform matches the borrower's needs with the lender's conditions, allowing borrowers to immediately obtain funds.

In terms of borrowing interest rates, there are differences among platforms. However, for borrowers, lower interest rates are more attractive and competitive. Regarding pledge ratios, the general BTC pledge rate is 70%, while the coin pledge rate allows users to set it within the range of 45%-75%. However, the higher the pledge rate, the higher the risk of liquidation for borrowers. In this regard, CriptoAuge is actively exploring the optimal pledge rate through intelligent optimization and continuous algorithm improvement, using a scientific model. It clearly has an edge in risk control.