Kaffea-X Market Rulebook

I. Introduction

Kaffea-X is a digital marketplace for the spot trading of specialty green coffee. Our mission is to ensure transparency, trust, and operational efficiency for all participants across the coffee value chain. This rulebook sets forth the standards, procedures, and responsibilities applicable to all users of the platform.

II. Eligibility & Access

2.1 Account Types

Users may register as:

• Traders (Importers, Exporters, Roasters or Cooperatives)
• Researchers (Consulting Firms, Academia and Government Agencies – without trading rights)

2.2 Onboarding

All new accounts undergo due diligence and must be approved by Kaffea-X's Onboarding team within 2 business days. Users must provide accurate information and agree to subscription terms.

2.3 Revocation of Access

Kaffea-X reserves the right to suspend or revoke access due to:

• Collusion or manipulation
• Non-payment
• Repeated failure to fulfill obligations

III. Listings & Offerings

3.1 Coffee Listing Requirements

Each offering must:

• Contain full set of coffee attributes, including at least one cupping note
• Be assigned a KUPIC* (universal identifier)
• Be approved by Kaffea-X's Operations team before going live

3.2 Sample Policy

If a seller opts to provide samples:

• Minimum of 10 bags (Kaffea-X to supply bags) of 250g samples per listed coffee must be sent to the nearest Kaffea-X’s operating center (North America, Europe and Southeast Asia)

3.3 Listing Visibility

• Seller identities are hidden from buyers during the bidding process and until a trade affirmation is issued to both parties.
• Each listing has two distinct IDs: a buyer-facing one and a seller facing one.

IV. Bidding & Transactions

4.1 Trade Execution

Trades are binding when:

• A seller accepts a bid and does not revoke during the 5-minute affirmation window
• Bids that exceed the seller's predetermined reserve spread are auto-accepted on behalf of the seller
• A buyer accepts a seller's counter-offer and does not revoke during the 5-minute affirmation window

4.2 Agreements

• Kaffea-X generates electronic 'Sale Contract' as referred to in the User Agreement following the 5-minute affirmation window
• Parties have 60 minutes to sign
• Buyer must fully fund escrow within 2 business days post trade contract signature

4.3 Bids and Counter-Offers

• Valid for 60 minutes
• Can be explicitly accepted or rejected by receiving party until expiration
• Cannot be exercised by either party once expired
• Can be cancelled by initiating party unless explicitly accepted or rejected by counterpart until expiration

4.4 Sample Requests

• Cost: Kaffea-X will charge $75 per sample request
• Available only upon seller offering samples as part of listing specifications
• Dispatched only upon buyer request and payment of the sample fee based on availability

V. Settlement & Escrow

5.1 Escrow Requirement

• All trades settle via third-party escrow service
• Escrow holds buyer funds for domestic trades, until warehouse confirmation of coffee readiness for shipment or for international trades, exporter provides the documentation listed on the Kaffea-X User Agreement. See sales contract.

5.2 Transaction Costs

• 1% from seller proceeds to Kaffea-X
• 1% from seller payable to escrow agent
• 1% from buyer payable to escrow agent
• Kaffea-X does not control the escrow fees, and any adjustments made by the escrow provider will take effect automatically for future transactions.
• Kaffea-X retains the user's method of payment on file and reserves the right to charge appropriate fees as applicable in the event of:

• automated annual subscription renewal
• automated subscription upgrade in the event of exceeding maximum allowable annual trading volume for current subscription tier
• additional users (beyond the first 2)
• sample fees
• penalty fees

5.3 Coffee Delivery

• Instructions are issued to seller’s warehouse post funding of escrow by the buyer
• Coffee is available for buyer pick up:

• for domestic trades, upon confirmation of delivery readiness by warehouse
• for international trades, upon presentation by the seller of the required documentation as stated in the User Agreement

VI. Conduct & Integrity

6.1 Market Behavior

• No collusion or coordinated trading
• No misleading listings or spoofing
• All users must register and trade in good faith

6.2 Surveillance

Kaffea-X continuously monitors:

• Order behavior
• Pricing patterns
• Device/IP clustering
• Counterparty concentration

6.3 Contractual Violations

Violations may lead to:

• Trade cancellation
• Financial penalties (1% per infraction payable by the party at fault)
• Account suspension or denial of access

VII. Disputes & Cancellations

7.1 Binding Trades

After notice of trade affirmation, trades are binding. Cancellations thereafter require mutual agreement or are escalated to arbitration under the terms of the sales contract.

7.2 Arbitration

Arbitration rights are provided by the terms of the standard Green Coffee Association (GCA) Agreement or the European Contract of Coffee (ECC) Agreement, whichever version applies to any given transaction.

VIII. Platform Availability & Downtime

Kaffea-X will maintain platform uptime to the best of its ability. Users will be notified of planned outages. In case of technical disruption, trades in process may be paused prescheduled or cancelled.

IX. Amendments

Kaffea-X reserves the right to modify this rulebook at any time. Users will be notified of changes and given reasonable time to comply.

End of Document