# 1. Purpose
This Index Termination Policy (the "Policy") describes the circumstances and procedures under which Adjacent Markets, Inc. ("Adjacent") may discontinue the calculation and publication of a prediction market index (an "Index"). Although an Index termination is not a common occurrence, Adjacent recognizes that circumstances may arise in which continuation of an Index is no longer appropriate. This Policy sets out the process Adjacent follows in such cases.

# 2. Circumstances for Termination
An Index may be terminated for reasons including, but not limited to:
- Lack of commercial viability or insufficient market demand
- Unavailability, suspension, or material deterioration in the quality of necessary data inputs from prediction market exchanges or other data providers
- Structural changes to the underlying prediction markets that render the Index no longer representative of its stated objective (e.g., exchange discontinuation of a relevant contract category)
- Natural lifecycle conclusion, where the Index was designed around a specific event or time-bounded category of markets, and that category has fully resolved with no successor markets anticipated
- Changes in market structure, regulatory requirements, or exchange rules that make continuation impracticable
- Material changes in the definition of the target market or strategy that would render the Index no longer representative
- Strategic decisions by Adjacent's management

# 3. Index Evaluation
Index termination proposals are brought before the Index Committee ("AIC") for review and assessment. The AIC will assess the circumstances, the number of potentially affected stakeholders, and the economic and financial impact of terminating the Index, as appropriate.
In the event that an Index is not licensed to any client and has no stakeholders or investable products linked to it, the AIC may approve the termination of the Index without further action.

# 4. Consultation and Notification
If an Index is in use, the AIC will require that a consultation is issued to clients and stakeholders prior to termination. The consultation will include:
- The identity of the Index being considered for termination
- The proposed timetable for termination
- The reason(s) for the proposed termination
- Instructions for submitting feedback
Adjacent will aim to allow a minimum of **two (2) weeks** for feedback during the consultation period where possible.
The AIC will review all feedback received and make a final determination as to whether to terminate the Index. Following a decision to terminate, Adjacent will issue a notice to clients and stakeholders containing:
- A summary of feedback received during the consultation
- The decision made with respect to termination and the rationale
- The timetable for termination, providing at least three (3) months notice of the termination date

# 5. Emergency Termination
In certain situations beyond the control of Adjacent, it may be necessary to terminate an Index without full consultation and/or at short notice. This may arise, for example, because of:
- Sudden cessation of a prediction market exchange or platform on which key constituents trade
- Abrupt regulatory action prohibiting the continuation of relevant markets
- Loss of access to data inputs that cannot be substituted in a timely manner
- Other circumstances that make it impossible to maintain a viable or representative Index
In such circumstances, Adjacent will provide stakeholders with as much advance notice as is practicable and will document the reasons for the emergency termination.

# 6. Event Contract Market-Specific Considerations
Event contract indexes have lifecycle characteristics that differ from traditional equity indexes. The following circumstances are expressly addressed by this Policy:
## Finite Lifecycle Indexes
Adjacent's current Index products are designed to be continuous and rolling. In the event that Adjacent develops an Index explicitly designed with a finite lifecycle (e.g., tied to a specific one-time event or a defined term), the AIC may approve termination of that Index upon conclusion of its lifecycle without requiring a full stakeholder consultation, provided that the finite lifecycle was disclosed in the Index methodology at launch and no clients hold active products linked to the Index.
## Successor Index
Where practicable and appropriate, Adjacent will endeavor to launch or designate a successor Index to provide continuity for clients and stakeholders. Notice of any successor Index will be included in the termination notice.
## Exchange or Platform Discontinuation
If a prediction market exchange on which a material portion of an Index's constituents trade ceases operations or materially curtails its market offerings, the AIC will assess whether the Index can continue with substitute data sources or a revised constituent set. If continuation is not feasible, emergency termination procedures under Section 5 apply.

# 7. Final Termination
On the specified termination date, the Index will cease to be calculated and all deliveries of the terminated Index will cease. Adjacent will retain historical Index data in accordance with its record retention policies.

# 8. Transition
Where practicable, Adjacent will provide information regarding alternative indexes, successor indexes, or transition arrangements to assist affected clients and stakeholders in managing their exposure. Transition information will be included in termination notices and published on Adjacent's website where applicable.

# 9. Documentation
All Index terminations and related approvals, including any consultation documentation, feedback received, and notices issued, are documented and retained.

# 10. Approval and Review
This Policy is reviewed by the AIC as required if there are material changes to applicable law, regulation, or market structure. Amendments require approval by the CEO and COO of Adjacent Markets, Inc.
Questions or correspondence regarding this Policy may be directed to governance@adjacentresearch.xyz.