Covered Amount

Enhancing User Experience with Volatility Management Mechanism (VMM) Support:

Following extensive product testing, the VNST Solutions has identified instances of price impacts during Mint and Redeem conversions. In response, VNST Solutions is committed to optimizing the user experience during the conversions.

To achieve this, the VMM will be implemented to offer users a predetermined covered amount in the event of market volatility during the conversion process.

In greater detail, by establishing a defined covered price, the VMM will automatically assist users with a specified amount should they encounter market fluctuations during transactions. This strategic measure ensures that users not only navigate through potential price variations seamlessly but also receive an equivalent or enhanced volume compared to their initial conversion, fostering a heightened level of satisfaction and reliability in the conversion experience.

Notes:

The covered amount is adjustable at different time intervals.

When the covered amount for Mint (or Redeem) reaches its limit, the conversion feature will automatically temporarily suspend until one of the following scenarios occurs:

1. Available covered amount is replenished.

2. The VNST exchange rate aligns with the market rate.

• Example of a Minting transaction:

A user trades 100 USDT and receives between 2,400,000 to 2,500,000 VNST (depending on the market rate at that time).

Hence, the minimum amount of VNST the user receives is 2,400,000 VNST. During the transaction process, market fluctuations causing price impact arise.

The user receives slightly less than 2,400,000 VNST.

At this point, if the covered amount is sufficient, the VNST Protocol will automatically support user's transactions, allowing 100 USDT to receive 2,400,000 VNST.

• Example of a Redeeming transaction:

A user trades from 2,500,000 to 2,400,000 VNST to receive 100 USDT (depending on the market rate at that time).

Thus, the maximum amount of VNST the user needs to convert to receive 100 USDT is 2,500,000 VNST. During the transaction process, market fluctuations causing price impact arise.

The user needs to convert more than 2,500,000 VNST to receive 100 USDT.

At this point, if the covered amount is sufficient, the VNST Protocol will automatically support user's transactions, allowing user to transact up to 2,500,000 VNST while receiving 100 USDT."