Venue Evaluation Policy

1. Purpose

Toadstool LLC ("Truffle") aggregates market data and routes trade execution across multiple venues, blockchains, and liquidity sources. This Venue Evaluation Policy establishes the criteria, processes, and ongoing oversight used to evaluate, select, and monitor each venue integrated into the platform.

The goal is to ensure that all integrated venues meet Truffle's standards for liquidity, execution quality, security, auditability, and regulatory posture, ultimately protecting the interests of platform users.

2. Venue Categories

Truffle evaluates venues across the following categories:

• On-Chain DEXs — Decentralized exchanges on supported blockchains (Base, Ethereum, Solana) including Uniswap, Jupiter, Raydium, and Aerodrome. Orders are routed through on-chain smart contracts.
• Tokenized Equity Platforms — Third-party platforms that issue or trade tokenized representations of private company equity, including PreStocks (Solana), Jarsy (Base), and Ventuals (Hyperliquid).
• Prediction Market Venues — External prediction market platforms from which Truffle aggregates market data, including Polymarket, Kalshi, Manifold, and Metaculus.
• OTC Secondary Markets — Off-chain secondary market venues and broker networks for private company shares, used for price discovery and counterparty matching.
• Data Providers — Third-party data feeds including CoinGecko, GeckoTerminal, SEC EDGAR, USPTO, and news aggregators that provide market data, fundamental data, and enrichment.

3. Evaluation Criteria

Each venue is evaluated across five core dimensions before integration and on an ongoing quarterly basis:

3.1 Liquidity

• Average daily trading volume and depth of order book
• Bid-ask spread consistency across market conditions
• Number of active market makers and liquidity providers
• Historical slippage data for trades of varying sizes

3.2 Latency and Execution Quality

• Average order-to-fill latency under normal and peak conditions
• Fill rate for limit orders at various price levels
• Block confirmation time and finality guarantees (for on-chain venues)
• API uptime and reliability (99.9% minimum threshold)

3.3 Security

• Smart contract audit history (for on-chain venues) — at least one reputable third-party audit required
• History of security incidents, hacks, or exploits
• Bug bounty program existence and payout history
• Custody model — non-custodial venues are strongly preferred
• Key management practices for any custodial components

3.4 Auditability

• On-chain verifiability of trade execution and settlement
• Availability of public transaction data for independent verification
• Open-source smart contract code (preferred) or verified bytecode
• Transparency of fee structures and fee distribution

3.5 Regulatory Posture

• Jurisdiction of operation and applicable regulatory framework
• Registration status with relevant regulators (SEC, CFTC, FinCEN)
• KYC/AML compliance procedures
• Sanctions screening and restricted country enforcement
• History of regulatory actions or enforcement proceedings

4. Integration Process

New venue integrations follow a structured process:

• Due Diligence Review — The venue is evaluated against all criteria in Section 3. A written assessment is produced documenting findings and risk rating (Low / Medium / High).
• Technical Integration — API or smart contract integration is developed in a sandbox environment. Integration code is reviewed for security vulnerabilities, error handling, and data validation.
• Testing Period — The venue is operated in a test mode with limited exposure for a minimum of 14 days. Performance metrics (latency, fill rate, uptime) are monitored.
• Approval — Integration proceeds to production only after successful completion of the testing period and sign-off on the due diligence assessment.

5. Ongoing Monitoring

All integrated venues are subject to continuous monitoring and quarterly reviews:

• Real-Time Monitoring — API health, response times, and error rates are monitored continuously. Venues experiencing sustained degradation (>1% error rate or >5s latency) are automatically deprioritized in routing.
• Quarterly Review — Each venue is formally re-evaluated quarterly against the criteria in Section 3. Changes in risk rating trigger escalation and potential integration suspension.
• Incident Triggers — Security incidents, regulatory actions, or significant operational failures trigger immediate review. Truffle reserves the right to suspend any venue integration immediately in the interest of user protection.

6. Current Integrated Venues

As of April 2026, Truffle integrates with the following venues and data sources:

7. Contact

For questions about venue evaluation or to suggest a new venue integration, contact partners@truffle.tech.