Compliance

Last Update: 3/27/2025

Compliance is a pillar of Hydra Swap’s design philosophy, embedded into every layer of our technology, operational framework, and partner relationships. As a Web3 platform that prioritizes privacy, we recognize the importance of operating within global legal and regulatory boundaries while continuing to innovate responsibly. Our compliance approach combines industry-leading standards with adaptive systems, ensuring Hydra Swap meets the expectations of regulators, partners, and users worldwide—without compromising on decentralization or privacy. Legal & Regulatory Alignment Hydra Swap is strictly intended for lawful use. We operate with full awareness of evolving legal frameworks, integrating regulatory compliance as a core component of both frontend and backend operations. All services are designed to adhere to:

- KYC/AML policies through partner exchanges - Data privacy regulations (including GDPR) - Jurisdictional restrictions outlined by bodies such as the U.S. OFAC (Office of Foreign Assets Control) We maintain internal procedures based on our comprehensive Hydra Swap Compliance Policy, which is regularly updated to reflect the shifting global landscape. Selective Exchange Partnerships Hydra Swap partners exclusively with non-custodial exchanges that uphold rigorous compliance procedures. Each exchange is selected through a compliance-first vetting process that evaluates operational integrity, privacy protection, and adherence to international financial standards. Key protocols in place:

- Real-Time AML Screening: Every transaction is subjected to dynamic, risk-based AML scanning using advanced analytics tools. - Ongoing Partner Vetting: Exchange partners are routinely assessed to ensure continued compliance and responsiveness to regulatory updates. - Record Separation: Exchange 1 (sender side) and Exchange 2 (receiver side) store data independently, ensuring no single entity can reconstruct the full transaction trail—preserving both privacy and compliance. AML / ATF Collaboration Hydra Swap enforces Anti-Money Laundering (AML) and Anti-Terrorist Financing (ATF) standards through direct alignment with our exchange partners' regulatory protocols. These measures include:

- Compliance Liability Assignment: AML/ATF responsibility is handled by exchange partners, who implement real-time monitoring and screen transactions for sanctions or blacklisted activity. - OFAC-Adherence: Transactions are blocked when linked to sanctioned individuals or entities, in accordance with global regulatory directives. - Record Retention Standards: Single-use transaction data is retained temporarily (up to 72 hours) to facilitate compliance oversight, after which it is securely purged in accordance with privacy best practices.

Hydra Swap Internal Compliance Controls To uphold the highest integrity and mitigate misuse, Hydra Labs enforces key internal compliance practices:

- Geo-Blocking: Users from OFAC-sanctioned regions are restricted from accessing the platform. - TOR Network Restrictions: Access from anonymized networks is blocked to prevent circumvention of location and identity checks. - System Monitoring & Reporting: Our compliance team periodically reviews anonymized sender wallet data to assess AML/ATF system efficacy and optimize partner coordination. Hydra Swap is committed to delivering privacy that does not come at the cost of compliance—ensuring users can transact freely and securely in alignment with global regulatory standards.