Official Rules

SOFID Spot Trading Challenge

1. Sponsor

This promotion ("Promotion") is sponsored by Tulip HoldCo Ltd., known as Kraken ("Sponsor" or "Kraken"), located at 2nd Floor, Water’s Edge Building, Wickhams Cay II, Road Town, Tortola, British Virgin Islands.

Rewards under this Promotion will be paid by Tulip HoldCo Ltd. or an affiliate of Tulip HoldCo Ltd. acting on its behalf.

By participating in the Promotion, you agree to these Official Rules and the Kraken Terms of Service applicable to your jurisdiction of residence (https://www.kraken.com/legal/global-terms), which together form a binding contract between you and the Sponsor. Please read them carefully before entering.

2. Overview

The SOFID Trading Challenge is a promotional incentive rewarding eligible Kraken users for executing spot trades in SOFID markets on Kraken Pro during the Promotion Period.

This Promotion is not a sweepstakes or game of chance. No random drawing or alternative method of entry applies. Rewards are determined solely by participants’ SOFID trading volume rank relative to all other eligible participants, as described below.

 Participants who receive a Reward may also qualify for an additional Holding Bonus by maintaining a minimum average SOFID balance for 60 days following the date their Reward is credited. See Section 9.

3. Eligible Areas

The Promotion is open to eligible customers residing in the United States (excluding Florida, Maine, New York, Rhode Island, and Washington), and other jurisdictions where Kraken services are available.

Residents of the United Kingdom, the European Economic Area, Canada, and Japan are not eligible to participate in this Promotion.

Void where prohibited.

4. Eligibility

To participate, you must:

  • Reside in an Eligible Area listed above;
  • Be at least 18 years of age, or the age of majority in your jurisdiction if higher; and
  • Agree to these Official Rules and the Kraken Terms of Service (https://www.kraken.com/legal).

Kraken reserves the right to verify all eligibility requirements and may disqualify participants found in violation of these Rules or applicable laws.

5. Promotion Period

The Promotion begins at 11:00 UTC on September 30, 2026 and ends at 23:59 UTC on October 30, 2026.

All qualifying trades must be executed during this period, and after enrollment, to be eligible.

6. How to Participate

From the Kraken Pro app:

  1. Open the latest version of the Kraken Pro app.
  2. Tap More in the bottom navigation bar.
  3. Under Promotions, tap Promos.
  4. Scroll to the Competitions section and tap See all.
  5. Tap SOFID Trading Challenge.
  6. Tap Enroll Now.

To enroll on web (Kraken Pro):

  1. Go to Kraken Pro in your browser.
  2. In the top menu, click Loyalty.
  3. Select the Trading competitions tab.
  4. Select SOFID Trading Challenge.
  5. Click Enroll now.

To participate in the Promotion and qualify for a share of the 80,000 SOFID reward pool, eligible participants must enroll and then trade a minimum of 500 SOFID during the Promotion Period. Qualifying trades are spot trades in SOFID markets on Kraken Pro (BTC/SOFID, ETH/SOFID, and SOL/SOFID). Trades on SOFID/USD, SOFID/USDT and SOFID/USDC do not qualify. Only spot trading is required to participate.

Every participant who enrolls and meets the 500 SOFID minimum will receive a Reward. There is no limit on the number of Rewards available, and no element of chance is involved.

Each participant’s Reward is determined by their SOFID trading volume rank relative to all eligible participants during the Promotion Period.

Rewards are allocated as follows:

  • Tier 1 · Rank 1 · 6,400 SOFID
  • Tier 2 · Ranks 2–3 · 4,000 SOFID each
  • Tier 3 · Ranks 4–10 · 1,600 SOFID each
  • Tier 4 · Ranks 11–50 · 400 SOFID each
  • Tier 5 · Ranks 51–200 · 133.33 SOFID each
  • Tier 6 · Rank 201+ · Share of 18,400 SOFID, allocated proportionally based on each participant’s trading volume relative to all Tier 6 participants

Trading volume will be calculated based on the executed notional value, denominated in SOFID, of completed spot transactions in SOFID markets during the Promotion Period. Trading volume generated by subaccounts will not be counted toward a participant’s total trading volume. Cancelled, reversed, self-matching, or otherwise invalid transactions may be excluded at Kraken’s sole discretion. This is a rank-based reward structure. No element of chance is involved.

Where two or more participants have equal trading volume, the participant who reached that volume earlier will rank higher.

Reward amounts for Tiers 1 to 5 are fixed per rank. Where a rank within those tiers is not filled, the corresponding amount is not distributed and does not increase any other participant’s Reward. The total amount distributed as Rewards under Section 8 will not exceed 80,000 SOFID. Holding Bonuses under Section 9 are additional to this amount.

Only qualifying trades executed after enrollment in the Promotion will count toward a participant’s trading volume.

Trading involves risk, including the risk of loss. Nothing in this Promotion constitutes investment advice or a recommendation to trade, acquire, or hold any asset.

7. Prohibited Conduct

The following behaviors will result in immediate disqualification and forfeiture of eligibility:

  • Wash trades, self-dealing, or coordinated trading among participants;
  • Any form of manipulative, fraudulent, or abusive trading activity;
  • Use of multiple accounts, VPN circumvention, or any method designed to artificially inflate volume;
  • Violation of the Kraken Terms of Service or these Rules.

Kraken reserves the right, in its sole discretion, to determine whether conduct is prohibited and to disqualify participants accordingly. Kraken’s determinations are final and binding.

8. Rewards

To receive a Reward, a participant must, before reward fulfillment, have: (a) a Kraken Pro account in good standing; and (b) completed at least Intermediate KYC verification, plus any additional verification required by Kraken or applicable law in the participant’s jurisdiction. If a participant does not satisfy these requirements at the time of distribution, Kraken reserves the right to withhold the Reward.

  • Reward Type: Fixed per tier for Tiers 1–5; Tier 6 is a proportional share of 18,400 SOFID based on trading volume relative to all Tier 6 participants.
  • Reward Calculation: Determined by the participant’s rank tier as set out in Section 6 above.
  • Reward Distribution: Rewards will be credited to eligible users’ Kraken accounts within 30 days after the Promotion Period ends.
  • Number of Prizes: Variable, dependent on the number of qualifying participants.
  • Transferability: Rewards are non-transferable and non-assignable prior to crediting to the participant’s Kraken account and are not redeemable for cash.

Kraken reserves the right to substitute a reward of equal or greater value if necessary.

9. Holding Bonus

 This Section 9 applies only to participants who receive a Reward under Section 8.

  • Hold Period: The 60 consecutive calendar days beginning on the date the Reward is credited to the participant’s Kraken account ("Day 0").
  • Requirement: The participant must maintain an average SOFID balance in their Kraken account of at least 1.25 times their Reward amount across the entire Hold Period. Average balance is calculated as the arithmetic mean of the participant’s end-of-day SOFID balance, measured at 23:59 UTC on each day of the Hold Period. Balances held in subaccounts are not counted.
  • Bonus Amount: A fixed amount, payable in SOFID, determined by the participant’s reward tier:
  • Tier 1 · 960 SOFID
  • Tier 2 · 600 SOFID
  • Tier 3 · 240 SOFID
  • Tier 4 · 60 SOFID
  • Tier 5 · 20 SOFID
  • Tier 6 · An amount equal to 15% of the participant’s Reward
  • Bonus Distribution: Credited to the participant’s Kraken account within 30 days after the end of the Hold Period.
  • Account Standing: The participant must have a Kraken account in good standing at the end of the Hold Period and at the time of distribution. Kraken reserves the right to withhold the Holding Bonus where this condition is not met.

Any SOFID required to reach the 1.25x average balance threshold beyond the Reward itself must be acquired by the participant. Kraken does not provide that additional balance. Acquiring, holding, or disposing of any digital asset is your own decision and is undertaken at your own risk. Nothing in this Promotion constitutes investment advice or a recommendation to acquire or hold SOFID or any other asset.

The Holding Bonus is a one-time promotional payment made by Kraken. It is not interest, yield, a dividend, or a return on any asset, it is not paid or funded by the issuer of SOFID, and it does not accrue, compound, or continue beyond the Hold Period. Nothing in this Promotion offers or describes an interest-bearing, yield-bearing, or investment product.

The Holding Bonus is offered only to the extent permitted by applicable law in the participant’s jurisdiction. Kraken reserves the right to withdraw, suspend, or modify the Holding Bonus, in whole or in part or as to any jurisdiction, at any time.

10. Disqualification and Enforcement

Kraken may, at its discretion, withhold or revoke any Reward or Holding Bonus, or disqualify a participant, if:

  • Eligibility criteria are not met;
  • Fraud, manipulation, or gaming behavior is detected; or
  • The participant’s account is closed, suspended, or restricted during or after the Promotion Period or the Hold Period.

All Kraken determinations regarding eligibility, calculations, and rule violations are final and non-appealable.

Kraken reserves the right to reverse, reclaim, or adjust any Reward or Holding Bonus credited if prohibited conduct or ineligibility is identified after distribution.

11. Taxes

  • U.S. participants: Rewards with a fair market value of USD 2,000 or more may be reportable to the IRS (Form 1099), and Kraken may request additional tax information (e.g., Form W-9) before distributing your Reward.  The Reward and the Holding Bonus are aggregated for this purpose. Where this threshold is met, Kraken may withhold distribution until the requested information is provided.
  • Participants outside the U.S. are responsible for reporting and paying any taxes or duties associated with their rewards in accordance with local law.
  • Rewards will be valued at fair market value (SOFID/USD) at the time of crediting for tax reporting purposes.
  • Kraken does not provide tax advice.

12. Privacy

By participating, you consent to the collection and processing of personal information for purposes of administering the Promotion and fulfilling rewards.

Personal information will be processed in accordance with the Kraken Privacy Policy (https://www.kraken.com/legal/privacy) and may be shared with service providers as needed to comply with applicable laws, regulations, and reporting obligations.

Participation in this Promotion does not constitute consent to receive marketing communications.

13. Limitation of Liability

By participating in this Promotion, you agree that to the extent permitted by applicable law, you hereby do release and hold harmless Tulip HoldCo Ltd. and its affiliates, officers, directors, employees, and agents (collectively, "Kraken") from any damage, injury, death, loss, claim, action, demand, or other liability (collectively, "Claims") that may arise from your acceptance, possession and/or use of any Reward or your participation in this Promotion, regardless of whether such Claims, or knowledge of the facts constituting such Claims, exist at the time of entry or arise at any time thereafter.

BY PARTICIPATING IN THE PROMOTION, YOU AGREE THAT TO THE EXTENT PERMITTED BY APPLICABLE LAW: (1) ANY AND ALL DISPUTES, CLAIMS AND CAUSES OF ACTION THAT CANNOT BE RESOLVED BETWEEN YOU AND KRAKEN ARISING OUT OF OR CONNECTED WITH THE PROMOTION WILL BE RESOLVED INDIVIDUALLY, WITHOUT RESORT TO ANY FORM OF CLASS ACTION; (2) ANY AND ALL CLAIMS, JUDGMENTS AND AWARDS WILL BE LIMITED TO ACTUAL THIRD-PARTY, OUT-OF-POCKET COSTS INCURRED, (IF ANY), NOT TO EXCEED TWENTY FIVE DOLLARS ($25.00), BUT IN NO EVENT WILL ATTORNEYS’ FEES BE AWARDED OR RECOVERABLE; (3) UNDER NO CIRCUMSTANCES WILL YOU BE PERMITTED TO OBTAIN ANY AWARD FOR, AND YOU HEREBY KNOWINGLY AND EXPRESSLY WAIVE ALL RIGHTS TO SEEK, PUNITIVE, INCIDENTAL, CONSEQUENTIAL OR SPECIAL DAMAGES, LOST PROFITS AND/OR ANY OTHER DAMAGES, OTHER THAN ACTUAL OUT-OF-POCKET EXPENSES NOT TO EXCEED TWENTY FIVE DOLLARS ($25.00), AND/OR ANY RIGHTS TO HAVE DAMAGES MULTIPLIED OR OTHERWISE INCREASED; (4) YOUR REMEDIES ARE LIMITED TO A CLAIM FOR MONEY DAMAGES (IF ANY) AND YOU IRREVOCABLY WAIVE ANY RIGHT TO SEEK INJUNCTIVE OR EQUITABLE RELIEF.

14. Dispute Resolution and Governing Law

Dispute resolution and governing law are governed by the Kraken Terms of Service applicable to you based on your jurisdiction of residence: https://www.kraken.com/legal/global-terms. If you are uncertain which Terms of Service apply to you, please visit https://www.kraken.com/legal.

15. Force Majeure

Kraken is not responsible for any delay, suspension, or cancellation of this Promotion caused by acts of God, natural disasters, epidemic, government order, labor dispute, war, terrorism, or any other event beyond its reasonable control.

Kraken is not responsible for, and assumes no liability arising from, any technical or operational failures affecting the Promotion, including but not limited to platform outages, downtime, latency, interruptions or errors in trade execution or order matching, loss or corruption of data, network or connectivity failures, or any hardware, software, or telecommunications malfunction. Trading volume that cannot be validly recorded or verified as a result of such events may be excluded from a participant’s total at Kraken’s sole discretion.

Kraken does not guarantee uninterrupted or error-free operation of the Kraken platform during the Promotion Period  or the Hold Period, and is not liable for any inability to participate, trade, or qualify for a Reward  or Holding Bonus arising from such failures.

16. General Terms

  • Kraken reserves the right to modify, suspend, or terminate the Promotion at any time, for any reason, without prior notice.
  • Participation constitutes acceptance of these Official Rules.
  • Failure to enforce any term does not constitute a waiver.
  • If any provision of these Rules is held invalid or unenforceable, the remaining provisions remain in full force and effect.
  • In the event of conflict between these Rules and any marketing materials, these Rules shall control.

Sponsor: Tulip HoldCo Ltd. 2nd Floor, Water’s Edge Building, Wickhams Cay II, Road Town, Tortola, British Virgin Islands https://www.kraken.com