This document governs your use of the Prediction Market feature on the Phemex platform and sets out the material risks associated with this product. It forms part of the Phemex Terms of Use. By accessing the Prediction Market feature, you confirm that you have read, understood, and accepted the terms and disclosures below.

1. What Is the Prediction Market Feature

The Prediction Market feature allows you to trade event-based contracts whose value depends on whether a specific real-world event occurs. These are referred to as Event Contracts.

Each Event Contract has a binary outcome. If the specified event occurs, the contract settles at its maximum value (typically $1.00 per contract). If it does not occur, the contract settles at zero. The price of a contract reflects the market's collective probability estimate for the event at any given time.

Event Contracts are not securities, futures, options, investment products, or savings instruments. Each contract settles based on a verified real-world outcome: contracts held by participants on the correct side of the outcome settle at their full value, while contracts on the incorrect side settle at zero. These are speculative instruments, and you may lose the full amount invested. You should only participate if you fully understand how they work and can afford to lose the full amount you invest.

2. Phemex's Role

Phemex provides a technology interface through which you may access Event Contracts listed on the Polymarket platform. Phemex does not create, curate, list, or settle any Event Contract.

Phemex transmits your orders to Polymarket for execution using your deposited USDT/USDC balance. All market outcomes are determined exclusively by Polymarket's resolution infrastructure. Phemex has no ability to influence, modify, override, or reverse any resolution decision.

Phemex does not act as your agent, broker, investment adviser, or fiduciary in connection with any Event Contract transaction. Phemex is not a counterparty to any trade you place.

Phemex makes no representations regarding the accuracy, completeness, timeliness, or reliability of any Event Contract listing, pricing, or outcome.

3. Eligibility and Geographic Restrictions

The Prediction Market feature is available only to users who meet all of the following conditions at the time of each trade:

• you are at least 18 years of age, or the higher minimum age required by your jurisdiction;

• you are not located in, resident of, or accessing the feature from a Restricted Jurisdiction (defined below); and

• participation in event contract trading is not prohibited under the laws applicable to you.

Restricted Jurisdictions

Certain countries and regions restrict or prohibit participation in prediction market products. These currently include, but are not limited to, parts of the United States, the United Kingdom, Germany, the Netherlands, Belgium, Portugal, France, Switzerland, Australia, and Singapore. This list is subject to change at any time without prior notice as a result of regulatory developments.

Phemex applies geographic access controls based on IP address detection. These controls do not guarantee that all restricted users are excluded, and do not constitute a legal assessment of your eligibility. It is your sole responsibility to verify that your participation is lawful in your jurisdiction each time you access this feature.

If your jurisdiction becomes restricted after you have open positions, Phemex may restrict your access without prior notice and may require you to close open positions within a specified period. Phemex is not liable for any losses arising from mandatory position closures due to the application of geographic restrictions.

4. Fees

Phemex charges a platform fee of 1% on each Event Contract trade, in addition to any fees charged by Polymarket. The total fee applicable to your trade will be displayed before order confirmation.

Fees are non-refundable except where required by applicable law. Phemex reserves the right to modify the fee structure upon reasonable notice.

5. Risk Disclosure

Participation in the Prediction Market feature involves significant financial risk. The following risks are material and you should understand each of them before trading.

5.1 Capital Loss Risk

You may lose the full amount you invest in any single Event Contract position.

Event Contracts are binary instruments. If the event resolves against your position, your entire investment in that contract is lost. There is no partial recovery. You should never invest more than you can afford to lose entirely.

5.2 Market Resolution and Oracle Risk

Event Contract outcomes are determined by designated resolution sources. These may include news agencies, official data providers, or decentralised oracle protocols. Phemex has no control over and no ability to influence, modify, or reverse any resolution decision.

Resolution errors.

Resolution sources may produce incorrect, delayed, ambiguous, or disputed outcomes. In documented cases, prediction market oracles have produced outcomes that market participants considered erroneous. There is no guarantee that such errors will be corrected or that your financial outcome will be reversed.

Dispute finality.

Where a resolution outcome is disputed, the dispute is resolved under Polymarket's rules and the applicable oracle protocol. Phemex is not a party to this process and cannot advocate on your behalf. Phemex's liability in connection with any resolution error or oracle failure is excluded to the maximum extent permitted by applicable law.

Ambiguous events.

Some events may not occur in a manner that clearly satisfies or fails the contract's resolution criteria. The contract may be voided, settled at a mid-point value, or resolved in ways that differ from your expectation. You should only trade contracts whose resolution criteria you fully understand before entering a position.

5.3 Regulatory Risk

The legal and regulatory status of prediction market products is evolving across jurisdictions. Regulatory authorities may, at any time, determine that Event Contracts constitute regulated financial instruments, unlicensed gambling, or otherwise prohibited activity. Any such determination may result in:

• immediate restriction of your access to this feature;

• mandatory closure of your open positions; or

• legal liability for your participation, depending on the laws of your jurisdiction.

This product may be modified, suspended, or discontinued at any time without prior notice as a result of regulatory changes affecting Phemex or its infrastructure providers. No minimum continuation period is guaranteed.

Phemex does not provide legal advice. If you are uncertain about the regulatory status of prediction market products in your jurisdiction, you should seek independent legal counsel before participating.

5.4 Market Manipulation and Information Asymmetry Risk

Prediction markets may attract participants who possess material non-public information regarding the event being predicted. You may be trading against counterparties with an informational advantage. Phemex and Polymarket prohibit the use of insider information to trade, but such conduct may be difficult to detect in real time.

Prices displayed in prediction markets represent collective probability estimates only. They do not constitute factual statements about future events, investment advice, or any form of prediction or guarantee by Phemex.

5.5 Liquidity Risk

Not all Event Contracts will have sufficient market liquidity for you to enter or exit a position at your desired price or time. Bid-ask spreads may be wide, particularly for less popular events. Liquidity may decrease significantly as an event approaches its resolution date. Phemex does not guarantee the continuous availability of any specific market and may delist or suspend any Event Contract at any time.

5.6 Platform and Infrastructure Risk

The availability of the Prediction Market feature depends on the continued operation of third-party infrastructure. In the event of technical failure, regulatory action against Phemex's infrastructure provider, or termination of the relevant technology partnership, the feature may be suspended or discontinued without prior notice. Phemex is not responsible for losses arising from the unavailability of third-party infrastructure, oracle failures, smart contract errors, or other technical issues outside Phemex's direct control.

5.7 Political Event Contracts

Certain Event Contracts available on Prediction Market relate to political events, including elections, referendums, legislative outcomes, and government policy decisions. Political event contracts are subject to heightened regulatory scrutiny across a number of jurisdictions. In several countries and regions, participation in trading or wagering on political events is explicitly prohibited under applicable law, regardless of how such activity is characterised, and irrespective of whether the platform through which such trading occurs is otherwise authorised to operate.

The availability of political event contracts on the Phemex Prediction Market does not constitute a representation by Phemex that accessing or trading such contracts is lawful in your jurisdiction. Phemex does not promote political event contracts. By accessing any political event contract, you confirm that such participation is not prohibited under the laws applicable to you.

Phemex reserves the right to restrict access to political event contracts in specific jurisdictions at any time without prior notice.

6. Limitation of Liability

To the maximum extent permitted by applicable law, Phemex's aggregate liability to you in connection with the Prediction Market feature shall not exceed the total platform fees paid by you to Phemex in the 30 days preceding the event giving rise to the claim.

Phemex shall not be liable for any indirect, incidental, special, consequential, or punitive damages arising from your use of the Prediction Market feature, including loss of profits, financial losses resulting from Event Contract outcomes, losses arising from oracle errors or resolution disputes, or losses resulting from the suspension or discontinuation of the feature.

7. No Investment Advice

Nothing on the Phemex platform, including market prices, trending contracts, or any other content related to the Prediction Market feature, constitutes investment advice, financial advice, trading advice, or any other type of professional advice. You should not treat any market price or content on this platform as a recommendation to buy or sell any Event Contract. Phemex strongly recommends that you seek independent financial and legal advice before participating.

8. Amendments and Discontinuation

Phemex may amend these terms at any time. Material changes will be communicated via the Phemex platform or by email. Your continued use of the Prediction Market feature following the effective date of any amendment constitutes your acceptance of the revised terms.

Phemex reserves the right to suspend, modify, or discontinue the Prediction Market feature at any time, with or without prior notice, including as a result of regulatory changes, technical issues, or the termination of its agreement with any third-party infrastructure provider.

9. User Acknowledgment

By accessing the Prediction Market feature, you confirm that:

• You have read and understood this document in its entirety;

• You understand the binary, speculative nature of Event Contracts and the risks described in Section 5;

• You are legally permitted to access and participate in prediction market products in your jurisdiction;

• You are at least 18 years of age, or the minimum legal age required in your jurisdiction, whichever is higher;

• You accept that you may lose the entire amount invested in any position;

• You have not relied on any representation by Phemex regarding the likelihood of any event, the expected profitability of any position, or the legal status of this product in your jurisdiction; and

• You understand that Phemex does not provide investment advice in connection with Event Contracts and does not act as your agent or fiduciary.