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HOW TO TRADE ON THE EXCHANGE E-BOOK

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WELCOME TO THE CEDEX EXCHANGE!

CEDEX is the first blockchain based diamond commodity exchange.

CEDEX empowers investors to make smart, data-based, secured trades in diamonds. Diamond sellers enjoy a wide audience of potential buyers, with added layers of transparency and security.

This E-book will seek to give you some helpful information on the aspects and features of the exchange.

It is our hope that by the time you finish reading this E-book you’ll be fully ready for the diamond boom that CEDEX is leading.

SO LET’S GET STARTED!

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WHAT YOU’LL FIND IN THIS E-BOOK

Registering on CEDEX 1

The Importance of KYC/AML Procedures 2

Exchanges - Get Your CEDEX Coins 3

Crypto Wallets - Why and How 4

Your Dashboard 5

Knowing the DEX 6

The Diamond Categories 7

Selling a Diamond 9

Summary 10

8 Buying a Diamond

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If you want to trade or upload your diamond on the CEDEX exchange you’ll first need to complete your registration on CEDEX.com - a process that should take no more than a couple of minutes at most. If you’re a diamond supplier, please email CEDEX at support@cedex.com and we’ll get in touch with you shortly. To find out more, please go to CEDEX Diamond Supplier page.

STEP #1

Go to www.cedex.com and in the upper right corner click on the “sign up” button.

01 REGISTERING ON CEDEX

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STEP #2 Fill in all of your relevant information - make sure to list your FULL name, as it appears on your passport (more on why this is important in chapter 2), your email address, your password and complete the form by clicking the “sign up” button.

Please make sure that you’ve carefully read CEDEX Terms & Conditions that serve as the platform’s “Rule Book”, before confirming the checkbox.

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STEP #3

Check your inbox for our account verification email and click the link it contains to verify your account.

You’re done! Your account has been activated.

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Once you’ve created and registered your account, when you attempt to deposit you’ll be asked to proceed to account validation or verification by the CEDEX compliance department before you can start trading, this is known as - KYC/AML procedures. For those of you unfamiliar with the terms, here they are, briefly explained: KYC - Know Your Customer AML - Anti Money Laundering CEDEX is a self-regulated company that fully complies with the strictest requirements of European regulators. CEDEX is required, by law, to insure that customers are of legal age, hail from a country that allows them to hold an account with CEDEX, have a valid bank account and have a physical address that matches their account information. The documents you’ll need for the process are:

1. Fill out the compliance form, sign it, and upload to the compliance form in the identity verification page.

2. A valid international passport in English (valid for at least 6 months from the moment you send it to CEDEX)

3. A bank statement or utility bill clearly showing your name and address valid for at least 3 months from the moment you send it to CEDEX)

2 COMPLIANCE PROCEDURES

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4. Private diamond holders and suppliers may be asked to download, sign and upload additional documents to CEDEX before they can sell diamonds on the exchange.

CEDEX may request further documents in some cases, users will be notified of these requests individually.

All images/files (pdf files are recommended) must be clear and complete, images that are fuzzy or cut-off will NOT be accepted A few points to remember about the KYC/AML procedure: ● The account name MUST match the name on the passport, in full. ● The name on the bank statement/utility bill must match the name on the account and the passport. ● No alternative ID’s, driver’s licenses or documents will be accepted. ● You must inform CEDEX about any change in address and supply alternative documents. ● If your passport expires you must supply CEDEX with a new valid passport. ● Please note that images must be in one of the following formats: jpg, png, pdf. ● Files should NOT exceed 10mb. The KYC screen will automatically be displayed after you have completed email verification of your account. The completed information and uploaded files will be sent to our support/compliance team for review. Once the review is completed, you will be notified via email with your compliance approval status. Please follow the compliance department instructions in case some of the documents are missing or invalid. Notice that you will not be able to deposit or trade on the exchange before getting the compliance approval email.

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If you purchased CEDEX coins during the pre-sale or public sale - they would be waiting in your personal wallet you gave CEDEX during the ICO.

In order to get new or additional CEDEX Coins, you will need to purchase them in one of the presented below Cryptocurrency Exchanges. ● Coinbene ● IDEX

Other exchanges may be added in the future, so make sure you check CEDEX homepage for updates! Some exchanges may offer direct USD to CEDEX conversion, meaning you can fund your account and proceed to purchase CEDEX coins. Others may require you to convert your FIAT currency (e.g. USD) to Ethereum before you can buy CEDEX Coins.

Once you have purchased CEDEX coins you will need to transfer those coins to a secure wallet. Please be informed that some exchanges will ask you to pass their compliance process, in order to be eligible to receive their services. Please make sure to prepare your passport and other updated documents.

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EXCHANGES - CEDEX COINS

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Before you start trading, you must first learn how you can fund your account. For those of you well versed in the world of cryptocurrencies - this chapter will be informative but not a “must read” as you will probably know most of its content by heart. But for those of you just learning the ropes - we suggest you read carefully as the content of the chapter may save you both time and money. Before we begin we should clarify something basic - the wallets referred to in this chapter ARE NOT the wallet contained within your CEDEX account - they are external to the site and may interface with it to transfer coins to and from it, but just as your CEDEX wallet cannot replace them - they cannot replace it. So why do you need a wallet? Well, just like in the real world - you need something to keep your funds in. The CEDEX coin is an ERC-20 compatible coin, which would mean that it ought to work well enough with ETHER wallets that have support for such coins, but if you have any doubts - we urge you to contact our support staff at support@cedex.com before taking any action. There are countless wallets of varying kinds available on the internet, with more popping up all the time, and while CEDEX cannot outright recommend any of them (simply because we aren’t fully aware of every single wallet around) here are a couple of those most often used on the site: ● Myetherwallet ● Metamask The most accurate guide on opening a “Myetherwallet” account can actually be found on the “Myetherwallet” site itself at the following link: https://kb.myetherwallet.com/getting-started/creating-a-new-wallet-on-myetherwallet.html Follow the instructions there, complete the Verification Process (KYC) if required, and you will be able to get a wallet that you can use to store and transfer CEDEX coins to/from. It is VERY important to safeguard and not misplace your private key, if lost - it is highly unlikely ANYONE will be able to help you restore it and quite possible you will lose all access to funds located in your wallet!!! Please read our guide on How to Add CEDEX Coins to Your Cryptocurrency Wallet.

Once you have verified that you’ve got CEDEX coins in your wallet you can go ahead and transfer them to your CEDEX account where you can begin investing.

4 CRYPTO WALLETS. WHO, WHERE, WHY & HOW

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The dashboard is the central hub for most of your activity on the CEDEX exchange. It will hold your account settings, financial information, information about diamonds you upload for sale, bids you’ve made on various diamonds and more. Here is just a brief look at some of the information you’ll be able to see on your dashboard: ● Wallet and coins information ● Diamonds you’ve uploaded to the exchange ● Current bids on diamonds and their status

Additional information may be added to the dashboard along with new features on the exchange. Important things you can do and check for on the dashboard: ● Insure your private and financial information is accurate ● Add/change/remove wallet information ● Check your current account balance ● Check the status of various bids ● Modify/cancel bids ● Receive updates about the status of your diamonds

5 MY DASHBOARD

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The CEDEX Exchange is powered by the DEX, a revolutionary machine-learning algorithm that evaluates each diamond’s ask price vs. its EMP (Estimated Market Price). The DEX score evaluates the diamond based on: gemological perfection, market prices & liquidity of each individual category. By making diamond appraisal valuations transparent and coherent, the DEX has removed the most significant obstacles preventing diamonds from becoming a viable asset class. All that’s left for you to do is pick your next best investment.

The DEX combines gemological data for each diamond, various diamond indices and global inventory data to provide each and every diamond on the CEDEX exchange a rating that will reflect its real market value.

6 THE DEX ALGORITHM

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The DEX will be used for the most part, “behind the scenes” from the user’s standpoint. When you upload, buy or sell a diamond on the exchange you will see how your diamond is rated; the evaluation is done in accordance with the DEX machine learning algorithm.

Conversely - if you’re buying a diamond and you want to see diamonds of a different rating or expand/reduce the field to more specific or general terms you can also adjust the price range to better reflect what you’re after.

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Have you heard this phrase before - “No two diamonds are exactly alike”? That’s very true, but in the case of CEDEX that’s not only true, it is extremely critical to how you can buy, sell, trade and invest in diamonds.

CEDEX and its proprietary DEX algorithm, rate diamonds not only according to their own worth but also by the specific category to which they belong, this is because these two diamonds are in 2 entirely different price categories. CEDEX will initially be offering diamonds that fall into one of 4 major categories:

3/4 Carat Round Collection & GH Clean Ave. Price $3,600 US 70 points to 79 points Round diamonds. Comprised from top five colors available in the diamond industry and the four rarest charities. 1 Carat Round Collection & GH Clean Ave. Price $7,500 US 1 Carat to 1.19 Carat Round diamonds. Comprised from top five colors available in the diamond industry and the four rarest charities. 1.5 Carat Round Collection & GH Clean Ave. Price $10,000 US 1.5 Carat to 1.99 Carat Round diamonds. Comprised from top five colors available in the diamond industry and the four rarest charities. 2 Carat Round Collection & GH Clean Ave. Price $14,000 US 2 Carat to 2.49 Carat Round diamonds. Comprised from top five colors available in the diamond industry and the four rarest charities.

7 THE DIAMOND CATEGORIES

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As CEDEX progresses and expands we plan on offering different carats, colors, cuts and clarities so as to best reflect the existing diamond market as a whole. When you’re searching for a diamond on the CEDEX exchange selecting an appropriate category is the first step you’ll take.

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On the CEDEX exchange you’ll be able to bid both on a single diamond and on a diamond category. Let’s take a closer look at how it actually works. If you would like to bid on a single diamond – follow these simple steps:

1. Open an Account Open an account on CEDEX.com

2. Compliance Successfully complete the KYC/AML process

8 TRADING DIAMONDS -BUYING

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3. Allocate Funds Deposit CEDEX Coins into your account. Trading on the exchange can only be done using CEDEX Coins.

4. Choose a specific diamond from the Top Diamond List:

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5. Click on the diamond you are interested in to view more details about:

6. When you select a diamond you would like to trade on - click on the “place an order” button. You can also click on the GIA link to view the diamond details and check its GIA certificate.

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7. Decide how much you wish to bid for the diamond. For instance, USD 3000.

8. Select the Order Type. At this point, CEDEX exchange supports the following order types: Market, Limit by Price, and Limit by DEX. When you choose the Market Order type, it means you are looking for an immediate trade execution and willing to pay the proposed ASK price for the selected diamond. If you chose the Limit by Price order, you can set the max ASK price you are willing to pay. The platform lets you specify the order amount in CEDEX coins or in USD.

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The DEX Order - is perhaps the most attractive order type. It uses the DEX algorithm to select the best diamond to fit your needs within the limits of your budget. More so, the Limit DEX allows investors to set bids automatically through the system that would be relative to the fair market price of the specific diamond:

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9. Match on Order Book Once a price match is obtained, the settlement process begins. The Diamond Digital Certificate is created and visible on the blockchain.

10. Settlement Process Your diamond is now allocated from diamond supplier, transferred to GIA for re-verification and from there to custodian. The process may take up to 21 business days to complete.

11. Payment & Ownership

Once the diamond reaches the secured custodian, the Diamond Digital Certificate is transferred to the buyer and you become its legal owner. On the same time, the payment is sent to the seller.

12. Resell You can now modify price and re-sell the diamond in the exchange.

13. Physical Delivery The diamond can also be delivered directly to your home in selected countries.

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Bidding on a Specific Diamond Category

If you would like to bid on a certain diamond category, here’s how you should act. Please note that the process is similar to bidding on a single diamond, however, there are also crucial differences. 1. Open an Account Open an account on CEDEX.com

2. Compliance Successfully complete the KYC/AML process

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3. Allocate Funds Deposit CEDEX Coins into your account. Trading on the exchange can only be done using CEDEX Coins.

4. Choose a specific diamond category from the presented 4 options:

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Diamond categories group the diamonds according to a common gemological profile, financial performance and a price range. On the left navigation panel, you can change the selected category and get access to a huge inventory of diamonds falling into this category.

5. When you select a diamond category you would like to trade on - click on the “place an order on this

category” button. You ca also click on the GIA link to view the diamond details and check its GIA certificate.

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6. Decide how much you wish to bid for the diamond. For instance, USD 3000.

7. Select the Order Type: Market, Limit by Price, and Limit by DEX. Limit DEX, as we’ve already mentioned above, allows investors to set bids automatically through the system that would be relative to the fair market price of the specific diamond.

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For example: DEX 100 represents the diamonds Estimated Market Price (EMP). In the example here we booked a DEX order of 110 on 3 diamonds-> The system will calculate the appropriate price for each diamond and place a bid below the EMP.

8. Match on Order Book Once a price match is obtained, the settlement process begins. The Diamond Digital Certificate is created and visible on the blockchain.

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DIGITAL DIAMOND CERTIFICATE (DDC) A DDC is created, representing a diamond’s ownership. Including: owner ID, status, gem composite score, gem subcategory, media, designated custodian information, and arrival time at the custodian’s location.

9. Settlement Process Your diamond is now allocated from diamond supplier, transferred to GIA for re-verification and from there to custodian. The process may take up to 21 business days to complete. 10. Payment Once the diamond reaches the secured custodian, payment is sent to the seller. 11. Ownership The Diamond Digital Certificate is transferred to the buyer and you become its legal owner. 12. Resell You can now modify price and re-sell over the exchange. 13. Physical Delivery The diamond can also be delivered directly to your home in selected countries. If you wish to find out more information about the physical diamond delivery process, go to Physical Diamond Delivery page. Please also check the Taxes Import Law about the polished diamonds prior to starting the process.

DIAMONDS Upload a single or multiple

diamonds to the CEDEX exchange

VERIFICATION All diamonds uploaded to CEDEX are sent to a GIA

lab for verification and certificate update

CUSTODIAN Once the diamond is

verified and approved, it’s sent to a secured custodian

for safekeeping (Geneva/ Hong Kong)

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Selling a diamond on the CEDEX is a great way for suppliers and retailers to increase their exposure and potential market size. It is also a great way for a private diamond holder looking to liquidate their diamond/s to avoid the huge surcharges that would usually be associated with selling the diamond. Diamond Flow on the Exchange: 1. SELLER

The diamond is uploaded to the exchange, where its evaluated; given a DEX score based on the requested asking price vs. the Estimated Market Price (EMP)

2. BUYER

Can bid on a single or multiple diamond, once there is a match, the Diamond Digital Certificate is transferred to the buyer and the buyer becomes the diamond’s legal owner

Here are the steps one would need to take to sell a diamond on the CEDEX exchange:

1. Open Account Open an account on CEDEX.com, register as an investor and complete the KYC/AML processes in order to upload your diamond. 2. Verification Send your diamond to a GIA lab for verification and certificate update. 3. List on CEDEX Exchange Your diamond is uploaded to the exchange and you set your asking price. 9. Resell The diamond is now ready to be resold on the CEDEX exchange.

9 SELLING A DIAMOND

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Selling Diamonds as a Diamond Supplier The CEDEX promise: All transactions on the CEDEX exchange are transparent and secure - for all parties involved, from supplier to private diamond holders and investors.

Qualification:

In order be a qualified diamond supplier on the CEDEX Global Diamond Commodity Exchange:

• Supplier must be registered to one of the following three diamond exchanges:

• ISDE (Israeli Diamond Exchange) – Ramat Gan (Israel)

• Antwerp – Belgium Antwerp Diamond Bourse (Beurs Voor Diamanthandel) • Mumbai (India) BHARAT Diamond Bourse (BDB) • Or be permitted to have a registered diamond company in Hong Kong or New York • Suppliers must license to import & export diamonds. • Suppliers are required to follow the KP regulations. • Diamond suppliers and their inventories (including GIA certificates) must be located in one of

the following hubs: • Ramat Gan, Israel • Antwerp, Belgium • Mumbai, India • Hong Kong • New-York, US

Sale:

• Once your inventory is uploaded to the exchange, you can access your user dashboard and manage your inventory & bid/ask prices.

• Your inventory can be sold through other various channels – you are not required to list exclusively via • CEDEX as long as the inventory is updated. • Suppliers will update CEDEX immediately via the user dashboard if one or more diamond(s) are under

negotiation. • Inventory uploaded or removed via API/CSV/XML may take up to 15 minutes to update on CEDEX’s

trading platform. • Inventory uploaded to CEDEX already contains your asking prices. Each diamond will be rated in its

category by the DEX algorithm. You can then decide if you wish to adjust your asking price according to the DEX scoring.

• Once there is a match (with your asking price) in the system, CEDEX will send a purchase order document by email containing the purchase details. The settlement process commences automatically.

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Selling Diamonds as a Private Diamond Holder The CEDEX promise: All transactions on the CEDEX exchange are transparent and secure - for all parties involved, from supplier to private diamond holders and investors.

Qualification:

In order be a qualified diamond supplier on the CEDEX Global Diamond Commodity Exchange:

Qualified diamond holders are: any person or entity is not a Diamond supplier/ diamond company in possession of a diamond, who seeks to upload and sell their diamond via the CEDEX exchange. All diamonds must be polished & unmounted, in accordance with country restrictions with any applicable laws. Sale:

Selling your diamond on the exchange:

• Once the diamond reaches the custodian, it will be uploaded to the exchange and can be traded/purchased.

• All relevant information will appear in your account, where you can also manage your inventory & bid/ask prices.

• Once there is a match (for your exact asking price) in the system, the settlement process automatically begins.

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This E-book contained quite a bit of information, we know. We also know that it could be 10 times longer if we wanted to explain every single detail as well as we wanted to. We hope that after reading it you have a better grasp of what makes CEDEX work, how it plans to bring about the diamond boom and how you can use it to buy and sell diamonds easily while making a profit!

If you have questions about the CEDEX, how to use the exchange or any of the content on this E-book we invite you to join the great CEDEX community across the following platforms: Facebook: https://www.facebook.com/cedexEN/ Twitter: https://twitter.com/CedexOfficial Reddit: https://www.reddit.com/user/Cedexofficial Steemit: https://steemit.com/@cedexofficial Telegram: https://t.me/joinchat/Fu9Tng8MwZ574gdVPt1eSw Telegram Support Channel: https://t.me/joinchat/H9JXnhBlOp7Dcazy1yTPuw Or if you have a specific question - you can always email our support team at support@cedex.com Please make sure to read CEDEX Rulebook, prior to starting any activity on CEDEX exchange.

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