How does Cicada ensure asset compliance and meet regional regulatory requirements?

We are pleased to outline the compliance framework and operational structure for our platform, designed to ensure regulatory adherence and transparency:

1. Compliance Framework

（1）License Application Structure: The platform operates under a hierarchical architecture where the platform agreement itself is not subject to a financial license. Instead, individual asset issuers are responsible for obtaining relevant licenses based on their operational jurisdictions (e.g., Hong Kong VASP, U.S. MSB).

（2）Regulatory Design: This structure assigns compliance obligations to specific asset issuers, ensuring alignment with regional regulatory requirements.

2. User Guidance

（1）Risk Awareness: Users are encouraged to develop a thorough understanding of investment risks, recognizing that token liquidity is driven by organic market dynamics.

（2）Investment Focus: Emphasis should be placed on the quality and fundamentals of underlying assets, rather than short-term trading opportunities.

3. Transparency and Verification

（1）Disclosure Requirements: All sub-assets must provide comprehensive compliance documentation.

（2）Fund Traceability: The flow of funds is fully traceable via blockchain explorers, ensuring transparency and accountability.

Protocol Asset Management (PAM) Model

Our platform is built on the PAM model, which maintains an open protocol while clearly delineating compliance responsibilities to asset owners. This architectural design fundamentally distinguishes our approach from traditional financial platforms. Investors are advised to adopt an “agreement-based” mindset, focusing on understanding the operational mechanisms of the Cicada protocol, as opposed to conventional platform-centric thinking.