Discretionary Exclusion

In rare but critical cases, OLTA may enact a discretionary exclusion of an underlying asset from an index even if the asset passes all eligibility filters.

This mechanism provides a rapid response tool to protect the protocol in scenarios where automated rules are insufficient or too slow to mitigate severe risk.

Situations that may trigger exclusion:

• Reputational scandals or public controversy involving the asset’s issuer

• Legal or regulatory escalation (e.g., sanctions designation, cease-and-desist orders)

• Abandonment of the project, critical governance failure, or malicious forks

• Structural conflicts or risks compromising investor protection or regulatory standing

Operational Process:

• Immediate action may be taken by core contributors (via smart contract admin rights or multisig) in urgent cases

• A governance vote is then initiated retroactively to validate or overturn the exclusion, ensuring transparency and community oversight

• All discretionary actions are logged and published for auditability

This framework applies solely to index constituents not to users or general protocol access.