Compliance Measures

The X-AI Project employs a number of measures to ensure legal compliance throughout all phases of the project, from token issuance to platform operations to global market expansion.

1.Team of Compliance Advisors

X-AI has assembled an experienced team of legal advisors from top law firms around the world who specialize in blockchain and digital asset legal compliance matters. The main responsibilities of the advisory team include:

• Legal Risk Assessment: Regularly assessing the legal risks of X-AI's projects in various jurisdictions and updating the legal compliance strategy to ensure that the projects are always in compliance with the latest legal requirements.

• Compliance Strategy Development: Develop compliance strategies for local markets based on the legal requirements of different countries, including token issuance, marketing, user registration and transactions.

• Compliance Training: Provide regular legal compliance training for X-AI's internal team and external partners to ensure that all participants understand and comply with relevant laws and regulations.

2.Anti-Money Laundering (AML) and Know Your Customer (KYC) Processes

X-AI's AML and KYC processes strictly follow international standards to ensure that platform users' identities are verified and sources of funds are legal and transparent:

• Identity Verification: All users must provide valid identification documents (e.g. passport, ID card, driver's license, etc.) when registering and participating in XAI token purchases. We will use a combination of advanced identity verification technology and manual review to ensure the authenticity and accuracy of the user's identity.

• Risk Assessment: Users will be assessed for risk, including geographic location, transaction history and source of funds. High-risk users will be subject to stricter scrutiny to ensure the security and compliance of the platform.

• Monitoring and Reporting: X-AI will implement real-time monitoring to detect suspicious transaction activities. For any suspected money laundering or terrorist financing, we will immediately report to the relevant regulators and take appropriate measures.

3.Data Protection and Privacy

X-AI strictly abides by data protection regulations when processing user data to ensure that user privacy is not violated:

• Data encryption: All user data is subject to advanced encryption during storage and transmission to prevent data leakage and unauthorized access.

• Privacy Policy: We will develop and make public a transparent privacy policy detailing how user data is collected, used, stored and protected. Users can view and manage their personal information at any time.

• Third Party Data Processing Agreements: For outsourced data processing services, X-AI will enter into strict data protection agreements to ensure that third party service providers adhere to the same privacy and data protection standards.

4.Tax Compliance

The X-AI project will ensure tax compliance on a global basis to avoid legal risks due to tax issues:

• Tax filings: X-AI will complete tax filings and payment obligations on time according to the tax regulations of different countries and regions to ensure the project's tax compliance globally.

• Investor and User Tax Advice: We will provide general tax guidance to XAI token holders and platform users and recommend that they consult a professional tax advisor in accordance with the laws of their place of residence to ensure their personal tax compliance.

5.Ongoing Compliance Review and Updates

As the global blockchain and cryptocurrency legal landscape changes, X-AI will conduct regular compliance reviews and update its compliance strategy as needed:

• Legal Compliance Audit: A third-party professional organization will be engaged to audit X-AI's compliance on a regular basis to ensure that the program is operating in compliance with the latest laws and regulations.

• Policy Updates: Based on the results of audits and the latest legal changes, the program's compliance policies and operating procedures will be updated in a timely manner to ensure that X-AI is always in compliance with the legal requirements of various jurisdictions.