DISCLOSURES

Pricing Methodology

LTP solicits quotes from multiple liquidity providers and, upon receipt, selects a provider to route the order. This automated selection process considers factors such as latency, quote expiration time, historical fill data, token characteristics, volatility, and additional relevant metrics. LTP applies a markup to the quote received from the chosen liquidity provider.

Order Routing Practice

LTP collaborates with multiple liquidity providers to secure quotes for its customers, considering various factors, including price, latency, historical fill data, token specifics, and market volatility. LTP has established partnerships with reputable exchanges, including OKX FZE and Binance FZE, among other liquidity providers.

VA Specific information

Liquidity Fintech FZE (“LTP”) provides virtual asset brokerage and does not issue, control or manage any underlying virtual assets or blockchain protocols. Virtual assets made available through LTP are sourced via third-party liquidity providers, including regulated exchanges, and availability is dependent on support from such providers. Information relating to virtual assets, including pricing, market data and project-related information, is obtained from publicly available third-party sources such as CoinMarketCap, CoinGecko, TradingView and official project websites. Clients may be redirected to such external sources for further information. LTP does not independently verify or guarantee the accuracy or completeness of such information. Certain virtual assets may be associated with smart contracts deployed on public blockchains; however, smart contract audit reports are not available for all virtual assets. LTP does not conduct proprietary smart contract audits and relies on publicly available disclosures from token issuers or independent third parties where available, and where such information is not publicly available, this will be disclosed accordingly. Clients should refer to LTP's Risk Disclosure for a full description of risks associated with virtual assets.

Custody, Clearing and Safekeeping of Assets for Other VASPs

LTP does not hold or maintain funds or Virtual Assets, nor does it provide clearing services for other Virtual Asset Service Providers (VASPs) offering Broker-Dealer services. LTP's services are focused solely on providing trading access to its customers and do not include custodial or clearing functions for other VASPs.

Protection of Client Asset Ownership

LTP has implemented robust arrangements to ensure the protection and integrity of clients' ownership of assets held on the platform. All client assets are securely held in segregated accounts, separate from LTP's proprietary holdings, to prevent any commingling. Additionally, LTP follows stringent custody protocols, enhanced security measures, and regular audits to uphold clients' ownership rights and ensure full compliance with regulatory standards. Clients can access and verify their asset holdings at any time, reinforcing our commitment to transparency and asset protection.

Client Referrals and Introduction Arrangements

LTP does not refer or introduce clients to other entities, including other Virtual Asset Service Providers, in connection with the provision of Broker-Dealer Services.

The VASP has no referral, introduction, or reciprocal arrangements in place with any third party and does not receive any monetary or non-monetary benefits, inducements, or consideration in connection with the referral or introduction of clients.

Third-Party Custody and Asset Holding Arrangements

LTP utilises select third-party custodians, including Komainu MEA FZE, to safeguard clients' Virtual Assets. These custodians are subject to applicable regulatory requirements and industry best practices to ensure secure storage and handling of Virtual Assets.

LTP maintains Client Money Accounts with Zand Bank P.J.S.C., a Dubai, UAE-incorporated bank. Client funds are held in designated client money accounts on a segregated basis, separate from LTP's own funds, and are operated in accordance with applicable regulatory requirements.

These client money accounts function as ring-fenced accounts, whereby funds are held on behalf of clients and may only be used for the purposes of executing client instructions or returning funds to the originating client account.

LTP implements internal controls and reconciliation processes to ensure proper segregation, safeguarding, and accurate recording of all client assets held with third-party custodians and banking partners.

Other Disclosable Matters

As at the date of this disclosure, there is no additional information relating to the VASP's business or activities that VARA has required to be disclosed.