Digital Assets Risk Disclosure

Version effective as of 1. February 2024

1. Digital Assets Risk Disclosure

1.1 This risk disclosure supplements the Digital Assets Contract between the Client and GOFINTECH (the “Contract”). Capitalised Terms in this risk disclosure document shall have the same meaning as defined in the Contract. This risk disclosure provides a description of certain risks associated with the Services and Digital Assets. Additional risks that are not foreseen or identified in the Contract or in this risk disclosure may occur as not all risks of Digital Assets can be anticipated. Due to the new technology on which Digital Assets are based on, new risks may occur.

1.2 GOFINTECH does not provide any advice regarding Digital Assets and recommends that the Client obtains professional advice before investing in Digital Assets.

2. Risk profile of Digital Assets

2.1 The fair value of Digital Assets mainly depends on the willingness of market participants to exchange Fiat Currency for Digital Assets, Digital Assets with Digital Assets or to accept Digital Assets as payment and may be extremely difficult to assess and may ultimately prove to be much lower than anticipated.

2.2 Digital Assets may incorporate a large number of financial and non-financial rights, claims and/or assets, including rights and obligations not usually found in (traditional) financial markets instruments such as equity and fixed income securities. Clients wishing to acquire Digital Assets must carefully review the rights and obligations incorporated in Digital Assets before making any investment decisions.

2.3 GOFINTECH does not offer the possibility to exercise all or part of the rights incorporated in the Digital Assets, and the Client may be able to exercise such rights only by first transferring the Digital Assets to the Clients own DLA. Such transfers may be subject to restrictions, as detailed in the Contract, the Offer Documents and/or the Subscription Documents.

2.4 Digital Assets trading requires knowledge of Digital Asset markets. Clients should review and ensure that they understand the functioning of Digital Assets and the relevant Smart Contracts before they invest in a particular Digital Asset.

2.5 There is no guarantee that Smart Contracts, or even the Distributed Ledger network on which they operate, are bug- free and will function according to the Issuers or the Clients expectations. Furthermore, a Digital Asset Issuer may retain the possibility to amend the code of the Smart Contract at any time. GOFINTECH is under no obligation to provide custody services for any Digital Asset, paper certificate or other replacement for the Digital Assets.

2.6 Changes to the legal and regulatory framework and related measures may significantly increase Digital Assets transaction costs. By using the Services and trading Digital Assets, the Client bears the risk related to the uncertainty as to the legal, regulatory and tax treatment of Digital Assets and/or Transactions.

2.7 If Digital Assets are deposited with a Sub-custodian, GOFINTECH (i) shall not be held liable for any loss directly or indirectly attributable to the insolvency or bankruptcy or similar event affecting the relevant Sub-custodian, and (ii) may assign to the Client any claims for the return of the Digital Assets (or the reimbursement of their counter value) to the extent such claim exists and can be freely assigned to the Client.

2.8 The Digital Assets may neither be listed on a securities exchange nor be subject to insider trading and market manipulation regulations.

3. Risks related to Staking

3.1 Depending on the Distributed Ledger, participation in validation mechanisms may involve locking the relevant Digital Assets for a minimum period of time and/or transferring those Digital Assets to a specific Smart Contract. GOFINTECH does not provide advice on validation mechanisms of Distributed Ledgers and has not verified that such mechanisms are safe or function properly. The Client bears the risk that these mechanisms will be compromised or will not function properly. It is the Clients responsibility to understand and perform the verifications the Client deems necessary or appropriate on the validation mechanisms of Distributed Ledgers.

3.2 If the Client instructs GOFINTECH to stake Digital Assets with a specific Sub-custodian, GOFINTECH will, on that basis, instruct – in its name, but for the account and at the sole risk of the Client - the relevant Sub-custodian to do what the Sub- custodian considers necessary to stake the Digital Assets of the Client. GOFINTECH will only act as an intermediary and will not control how the Sub- custodian is utilizing the relevant Digital Assets. The Client is therefore responsible for doing his own due diligence on any Sub- custodian and such Sub-custodians staking services that Client instructs GOFINTECH to use.

3.3 The Client bears the risk that Digital Assets that the Client decided to Stake will be lost or compromised, including due to actions of the Sub- custodians. Staked Digital Assets may, in certain circumstances and on certain Distributed Ledgers, be subject to so-called "slashing" penalties, which may result in the Digital Assets being destroyed or "burned". These penalties may for example be imposed if they are used to validate transactions and other operations in a way that breaches the rules and protocols of the relevant Distributed Ledger.

3.4 When the Client instructs GOFINTECH to stake Digital Assets through a specific Sub-custodian, the Client acknowledges that GOFINTECH has not and does not undertake to perform due diligence verifications on the services of Sub-custodians (including any third parties appointed by them, such as delegates, custodians and/or validators) relating to Staking.

3.5 There is no guarantee that the Client will receive any reward in respect of staked Digital Assets. Receiving rewards depend on a number of factors beyond GOFINTECHs control. The Client acknowledges that, by Staking his Digital Assets, the Client (a) relinquishes any control on such Digital Assets for a possibly extended period of time, and (b) bears the risk that any Sub-custodian will be unable to unstake or otherwise return Digital Assets, without any assurance that any reward will be available and ultimately effectively transferred to GOFINTECH for the account of the Client.

3.6 The Client is solely responsible for assessing the tax consequences of staking his Digital Assets and complying with applicable tax laws and practice.

4. Valuation / liquidity risks

4.1 Due to the large dependency on supply and demand of Digital Assets, the volatility of the value of Digital Assets is (perceived as) high, changes and advances in technology, fraud, theft and cyber-attacks and regulatory changes, among others, may increase volatility further – elevating the potential of investment gains and losses.

4.2 Investments in Digital Assets are deemed highly speculative investments and can thus be extremely risky. The Client acknowledges that Digital Assets are not supervised by authorities or institutions such as central banks and that, therefore, there is no authority or institution which may intervene to stabilize the value of Digital Assets and/or prevent or mitigate irrational price developments. The volatility and unpredictability of the price of Digital Assets relative to Fiat Currency may result in substantial or total loss over a short period of time in combination with purchasing or selling Digital Assets. The Client acknowledges and agrees that he shall access and use the Service at his own risk.

4.3 Depending on the market conditions, it may be difficult or impossible to liquidate Digital Assets positions rapidly for a reasonable price, in particular if GOFINTECH is unable to trade the Digital Assets at a certain time or permanently. Such conditions may occur, for example, when no third-party provider is willing to trade the Digital Assets or if trading is halted in specific circumstances, or in case of unusual market activity. The execution of a transaction will be particularly difficult when the volatility of a particular Digital Asset is high.

4.4 If GOFINTECH is not be able to (i) purchase or sell digital Assets and/or (ii) execute any orders or transactions, the Client’s ability to purchase or sell Digital Assets or to liquidate may be equally limited. In such circumstances the Client may find it difficult or impossible to be able to purchase or sell Digital Assets.

5. Transaction and IT risks

5.1 Digital Assets rely on the underlying Distributed Ledger technology to be recorded and transferred. The acquisition of Digital Assets, as well as their transfer on a Distributed Ledger are usually not reversible and subject to fees payable in crypto currencies.

5.2 The Client may experience losses due to one or more of the following IT risks (list non-exhaustive): system failures, hardware failures, software failures, network connectivity disruptions, and data corruption.

5.3 The functioning of the Digital Assets is based on the early stage Distributed Ledger technology that is likely to undergo significant changes in the future. Technological advances such as cryptography, code breaking and specific computing techniques may pose a risk to the security of Digital Assets. In addition, alternative technologies may negatively affect the price and the liquidity of the Digital Assets.

5.4 The functioning of Digital Assets relies on open-source software. Developers of such open-source software are not employed or controlled by GOFINTECH or the Sub-custodians. Developers may introduce weaknesses and programming errors into the open-source software, keeping Digital Assets exposed to weaknesses, programming errors and threats of fraud, theft and cyber-attacks.

5.5 Distributed Ledger networks have experienced a surge in the number of transactions over the last few years. An increasing number of transactions coupled with the inability to implement changes to Distributed Ledger technology may result in a slower processing time of Transactions.

6. Occurrence of hard forks and other attacks

6.1 The Client is aware that the functioning of Distributed Ledgers, as well as further improvements of such functioning (e.g. ability to increase the number of transactions, reduce processing time, reduce transaction fees, implement security updates), relies on the collaboration and consensus of various stakeholders, among others, developers enhancing the open-source software related to Digital Assets or so called "miners" facilitating the processing of transactions.

6.2 Any disagreement among stakeholders of a particular Distributed Ledger may result in a split of a relevant Digital Asset into two or more incompatible versions (such an event called a "Hard Fork"). Hard Forks may lead to the instability of a specific version of a relevant Distributed Ledger and cause the Digital Assets to be duplicated, i.e., one version of the Digital Assets will remain on a specific version of the Distributed Ledger, while the other version of the Digital Assets will be traded on another version of the same Distributed Ledger. In such a case, the issuer of the Digital Assets is expected to determine which version of the Distributed Ledger is supported. In addition, Hard Forks or the threat of a potential Hard Fork may prevent the establishment of Digital Assets as a viable alternative to the way assets are traditionally traded. Hard Forks or the potential of a Hard Fork may limit GOFINTECHs ability to process Transactions and lead to an increase of the fees.

6.3 Transactions in Digital Assets are largely done anonymously and make it an attractive target for fraud, theft and cyber-attacks to steal Digital Assets or disrupt the underlying infrastructure, including e.g. the "51% attack" where persons with malicious intents may take control over a relevant Distributed Ledger network by providing 51% of the computer power in the relevant network, or via a "denial of service attack". The attackers would be able to prevent new transactions from gaining confirmations, allowing them to halt payments between some or all users. They would also be able to reverse transactions that were completed while they were in control of the network, meaning they could double-spend the respective Digital Assets.

7. Data protection / public nature of Distributed Ledgers

7.1 The Clients should be aware that any transfer, purchase and sale of Digital Assets may be recorded in a public Distributed Ledger and may therefore be visible to the public.

7.2 Distributed Ledgers on which Digital Assets are issued and/or recorded are neither the property of, nor under any control of GOFINTECH or the Sub-custodians. Information available on the respective Distributed Ledgers may be processed, exploited or misused by third parties, including in unforeseen ways.