Regulation Standards and Procedures for Abnormal Tradings

Regulation Standards and Procedures for Abnormal Tradings

In order to regulate market tradings and protect the rights and interests of investors, the platform has issued the "Regulation Standards and Procedures for Abnormal Transactions".

A.Definition of abnormal trading behavior

including but not limited to:

1. Trade on his own, using multiple devices and accounts to collect fees, rebates, bonuses, hedging, etc.

2. Total amount of holding positions under the linked account exceeding the position limit of the exchange

3. Trade with other users but make use of wash trades or matched orders and other ways to manipulate market prices and make profits by violating market trading rules and regulations.

4. Hacking other users accounts. Trade by using other users accounts or linked accounts to transfer fund and related illegal behaviors.

5. Use personal account or multiple accounts to conduct hedging trading.

6. High-frequency trading, making bulk trading illegally or arbitraging.

7. Conducting illegal trading on several linked accounts.

8. Participating in price manipulation or making other malicious market behaviors.

9. Use loopholes in the service or other unreasonable means to harm other users or the platform.

10. OTC transactions that are suspected having money laundering, fraud, malicious transactions and other illegal behavior.

11. Participate in any activities that the platform deems harmful to the market.

B.Types and Features of Hacking Trading, Wash Trades

1. Hacking trading

Hacking trading refers to stealing the trade password of another person, and trading

of the counterparty between the account controlled by the person so as to disturbing the trading management order and transferring funds;

2. Linked accounts wash trades

In two or more linked accounts, users pre-plan or reach an agreement with others in advance, to declare at the same price at the same time, one account buys high and sells low to lose obviously or buys low and sells high to earn profits obviously, in order to transferring funds from the client's account to his free account.

3. Delegate transfers the principal's fund by doing wash trades

Delegate makes counterparty trading with his own account and the principal's account, in order to transfer funds from his account to the principal's account.

4) Linked accounts

Accounts with similar registration time, same login device, same registered IP, same deposit and withdrawal address, etc. will be identified as Linked Accounts.

C.Types and Features of Illegal Tradings with High Frequency and High Cancellation

1.Multiple linked accounts, in the same time period, the same kind of token, the same direction, the similar proportions, the similar opening price and closing price for placing orders

2.Use the same account or multiple linked accounts to open and close positions with the same token, different directions, and similar proportions in the same time period, using manual or pending order tradings.

3.Quickly open and close positions within 5 minutes.

D.Types and Features of Illegal Tradings with High Frequency

1. The daily transaction frequency of a single account, is more than or equal to 150 times whether (open, partial liquidation, or close a position will be counted as 1 time); or the period of order opening and closing is less than 3 minutes, accounting for more than 50% of all orders; or the total value of position held less than 3 minutes, accounts for more than 50% of all position values.

2. The average daily holding time is less than 3 minutes.

3. The affiliate partner rebates the commission to his associated account or transfers the commission to other accounts for the operation of brushing orders.

4. If there are multiple linked account transactions, and the number of linked account transactions exceeds 150 times a day, it will be processed as high-frequency brushing.

5. Other abnormal transactions, including but not limited to abnormal transactions extending the holding time and brushing orders through a large number of new accounts, etc.

E.Types of OTC Tradings Involving Money Laundering, Fraud, Malicious Behavior

1. Account operations with attributes of faking or agency: when the user is detected by the platform risk control that his account is sold, lent, leased, or delegated to be used by others people, or there are agency buying or selling for others, there is suspicion of money laundering behavior; 

2. Receive or transfer digital assets or funds from illegal sources: when the user knows or judges based on reasonable common sense that the coins or funds received on other platforms/WeChat groups are from illegal sources, but still ignore the risk and directly transfer the suspected money into the platform, there is suspicion of money laundering behavior;

3. Risk trading behavior of not binding a valid payment information inconsistent with verified personal identity or providing the buyer with a payment method inconsistent with the personal identity verified on the platform;

4. Fraudulent behavior of clicking paid but not paying, and making false transfer records; or having received money but claiming not receiving by giving fake evidence;

5. Frequent cancellation of orders, adding risk remarks for payment, malicious trading low-priced orders and other malicious trading behaviors;

6. Other illegal trading behaviors

F.For clients who violate the regulation trading rules:

According to the relevant rules of the platform, the platform will impose certain penalties on users who violate the rules, such as ordering corrections and confiscation of illegal gains. 

If the case is suspected to be lighter, the platform will give warnings, forcibly close the position and suspend the opening of the position and other penalties; 

if the circumstances are serious, the platform will publicize the criticism, forcibly close the position, suspend the opening of the position, freeze the account, declare it as "market forbidden", and list as punishment measures; 

if there is an act of suspected violation of the laws of the country where the country is located, the platform will take measures such as legal transfer to the judicial organs and prosecution through the courts.

LBank Community

Telegram | Twitter | Facebook | Medium | LinkedIn

Click here to download for iOS or Android

If you have problems, please contact LBank official email: service@lbank.info, and we will provide sincere, friendly and immediate service. We also welcome you to join LBank official English community to discuss the latest issue (Telegram): https://t.me/LBank_en.

Risk Warning: Investing in digital assets is extremely risky. Digital asset prices are subject to high market risk and price volatility. The value of your investment may go down or up, and you may not get back the amount invested. You are solely responsible for your investment decisions and LBank is not liable for any losses you may incur. Past performance is not a reliable predictor of future performance. This material shall not be construed as financial advice in any case. LBank reserves the right in its sole discretion to amend or change or cancel this announcement at any time and for any reason without prior notice.