Risk Disclosure

1. Important Notice

This Index Trackers Risk Disclosure applies to all Assetiko tracker products, benchmark-linked products, index-referenced products, market exposure products, synthetic exposure products, basket-linked products, calculation-based products, and any other Assetiko product described as a tracker, reference tracker, index tracker, market tracker, exposure tracker, or similar instrument.

This disclosure is separate from Assetiko's general risk disclosures and is intended to address risks specific to tracker products. It should be read together with the applicable product terms, methodology statement, pricing source notice, legal notices, platform terms, user agreement, restricted records, jurisdictional disclosures, and any other documents published or made available by Assetiko for the relevant product.

This disclosure is informational only. It does not constitute financial advice, investment advice, legal advice, tax advice, accounting advice, a recommendation, an offer, a solicitation, or an invitation to buy, sell, hold, trade, subscribe for, redeem, or otherwise deal in any Assetiko product.

By accessing, buying, selling, holding, transferring, trading, or otherwise interacting with any Assetiko tracker product, you acknowledge that you have read, understood, and accepted the risks described in this disclosure and in the applicable product terms.

2. Nature of Assetiko Tracker Products

Assetiko tracker products are tokenized instruments designed to reference the performance, value, level, calculation, methodology, or movement of a stated reference asset, index, benchmark, basket, market segment, calculation framework, or other reference source.

A tracker product may be designed to reflect, approximate, follow, calculate, or reference a particular exposure. It does not necessarily provide direct ownership of the underlying reference asset, index constituents, securities, fund shares, commodities, currencies, cash flows, income, dividends, distributions, voting rights, governance rights, redemption rights, or any other legal or beneficial interest in the underlying reference source.

Unless expressly stated in the applicable product terms, holding a tracker product does not make the holder a shareholder, fund investor, noteholder, creditor, beneficiary, partner, member, participant, or owner of the underlying reference asset or any component of the underlying reference source.

The rights of a holder are limited strictly to the rights, if any, expressly stated in the applicable Assetiko product terms.

3. Product Terms Control

Marketing pages, summaries, dashboards, charts, labels, token descriptions, icons, social posts, public explanations, educational content, and user interface displays are provided for convenience only. They do not replace or override the applicable product terms.

If there is any inconsistency between public-facing summaries and the applicable product terms, the product terms control.

Users should not rely on page summaries, visual interfaces, charts, simplified descriptions, or informal explanations as the complete statement of their rights, obligations, restrictions, or risks.

4. No Guarantee of Tracking Accuracy

Tracker products are designed to reference a stated exposure, but tracking may be imperfect.

The value, price, performance, return, volatility, liquidity, timing, or market behavior of a tracker product may differ from the relevant reference source for many reasons, including:

• Data delays
• Pricing source limitations
• Calculation timing
• Market holidays
• Exchange closures
• Time zone differences
• Methodology adjustments
• Fees, costs, spreads, or expenses
• Liquidity conditions
• Market maker activity or inactivity
• Smart contract or ledger mechanics
• Oracle delays or errors
• Platform interruptions
• Regulatory restrictions
• Transfer restrictions
• Disruption events
• Corporate actions
• Index rebalances
• Currency conversion effects
• On-chain market supply and demand
• Differences between official reference values and indicative values

Assetiko does not guarantee that any tracker product will perfectly match, replicate, or maintain parity with any reference source.

5. Reference Source Risk

A tracker product may depend on one or more reference sources, including but not limited to indices, benchmarks, baskets, exchange prices, official closing levels, net return levels, total return levels, calculated values, fund values, commodity references, rates, currency pairs, third-party data, or Assetiko-defined methodologies.

Reference sources may be incomplete, delayed, revised, discontinued, unavailable, incorrect, restricted, disputed, subject to licensing limitations, or affected by methodology changes.

A reference source provider may change its calculation method, eligibility rules, constituent selection process, weighting methodology, publication schedule, data access terms, licensing requirements, or other aspects of the reference source. Such changes may affect the tracker product.

Assetiko may not control the reference source and may have no ability to prevent changes, interruptions, suspensions, or discontinuation of the reference source.

6. Methodology Risk

Each tracker product may rely on a specific calculation methodology. The methodology may define how values are calculated, when values are updated, which data sources are used, how disruptions are handled, how reference values are scaled, how corporate actions are treated, how distributions are reflected, and how exceptional circumstances are addressed.

Methodologies may be complex and may not behave as users expect under all market conditions.

A methodology may include assumptions, approximations, adjustments, fallback rules, discretion, valuation windows, calculation timing, or data hierarchies. These may cause the tracker value to differ from the visible market price of the reference source or from a user's expectation of fair value.

Assetiko may amend, replace, suspend, or discontinue a methodology if permitted by the applicable product terms.

7. Official Reference Value vs Indicative Market Value

A tracker product may display more than one value.

An Official Reference Value may be calculated according to the applicable product methodology and approved pricing source hierarchy.

An Indicative Market Value may be shown for informational purposes using intraday, delayed, estimated, public, third-party, or proxy data.

An On-Chain Market Price may be determined by actual trading activity, available liquidity, order books, AMMs, market maker quotes, spreads, and supply and demand.

These values may differ from each other.

Users should not assume that an indicative value is official, that an on-chain market price equals fair value, or that a tracker product can always be bought, sold, or redeemed at any displayed value.

8. Market Risk

Tracker products are exposed to market risk. The relevant reference source may rise or fall due to market movements, investor sentiment, economic conditions, interest rates, inflation, corporate earnings, liquidity conditions, volatility, geopolitical events, regulatory developments, currency movements, sector rotations, commodity cycles, credit conditions, or other market factors.

The value of a tracker product may decline significantly, including to zero in extreme circumstances.

Past performance, historical index performance, back-tested performance, simulated performance, displayed charts, or prior reference values do not guarantee future results.

9. Volatility Risk

Tracker products may be volatile. Prices may move sharply over short periods.

Volatility may be higher where the reference source includes concentrated markets, growth sectors, emerging markets, small-cap components, illiquid instruments, leveraged exposures, commodity-linked exposures, thematic baskets, or synthetic calculation frameworks.

On-chain trading may amplify volatility due to limited liquidity, thin order books, AMM pool imbalance, slippage, arbitrage delays, market maker withdrawal, or sudden user activity.

10. Liquidity Risk

There may be limited or no liquidity for a tracker product.

Users may be unable to buy, sell, transfer, redeem, or exit a position at a desired time, price, or size. Order books may be thin. AMM pools may be shallow. Spreads may be wide. Market makers may pause, reduce, or stop quoting.

Liquidity may be affected by:

• Market conditions
• Regulatory restrictions
• Token transfer settings
• Trust line permissions
• Issuer controls
• Blockchain network conditions
• AMM depth
• DEX order book depth
• Volatility
• Data source disruptions
• User demand
• Asset-specific restrictions
• Jurisdictional limitations

A displayed reference value does not guarantee available liquidity at that value.

11. Slippage and Price Impact Risk

Trades may execute at prices materially different from expected prices.

Large trades, low-liquidity pools, fragmented liquidity, stale quotes, fast markets, high volatility, or poor pathfinding may cause significant slippage or price impact.

Users are responsible for reviewing transaction details, expected output, minimum received amounts, slippage settings, trust lines, network fees, and transaction paths before submitting transactions.

12. Premium and Discount Risk

A tracker product may trade above or below its official reference value or indicative market value.

Premiums and discounts may arise due to liquidity conditions, market sentiment, supply and demand, transfer restrictions, market maker activity, pricing delays, data source differences, arbitrage limitations, regulatory conditions, wallet support, exchange support, or blockchain-specific trading mechanics.

Assetiko does not guarantee that a tracker product will trade at or near its reference value.

13. Oracle and Data Source Risk

Tracker products may depend on data sources, APIs, pricing feeds, oracles, calculation agents, vendors, exchanges, index providers, or internal systems.

Data may be delayed, incomplete, inaccurate, unavailable, manipulated, corrupted, misread, improperly formatted, or incorrectly transmitted.

Oracle or data failures may result in incorrect displays, incorrect indicative values, incorrect calculations, delayed updates, paused operations, market disruption, or user confusion.

Assetiko may use fallback sources or disruption procedures where permitted by the applicable product terms, but fallback procedures may not eliminate losses or discrepancies.

14. Timing and Market Hours Risk

Reference markets may operate during specific hours, while blockchain networks may operate continuously.

A tracker product may trade on-chain during periods when the reference market is closed, the official reference value is stale, the index provider is not publishing updates, or relevant markets are observing holidays.

This may create gaps between the on-chain market price and the latest available reference value.

Different exchanges, jurisdictions, reference sources, and data vendors may observe different calendars, trading sessions, publication schedules, and settlement times.

15. Currency and FX Risk

A tracker product may be denominated, displayed, calculated, or traded in a currency or unit different from the currency of the underlying reference source or its components.

Currency movements may affect the reference value, indicative value, on-chain market price, or user returns.

FX conversion methods, data sources, timing, spreads, and rates may differ from user expectations.

Users may also face additional currency risk if their personal base currency differs from the tracker product's displayed or settlement currency.

16. Accumulating and Distribution Treatment Risk

Some tracker products may use an accumulating, total return, net return, reinvestment-style, or methodology-defined distribution treatment.

This does not mean that holders will receive dividends, interest, distributions, income, coupons, cash flows, or pass-through payments.

Unless expressly stated in the applicable product terms, any dividend, income, distribution, or similar economic effect reflected by a reference source is treated only as part of the calculation methodology and is not separately payable to holders.

Users should not assume that any tracker product provides income rights, dividend rights, fund rights, shareholder rights, or entitlement to cash distributions.

17. Corporate Action and Rebalance Risk

Reference sources may be affected by corporate actions, index rebalances, constituent changes, mergers, acquisitions, spin-offs, delistings, suspensions, bankruptcies, special dividends, rights issues, stock splits, changes in free float, changes in eligibility, or other events.

A tracker product's methodology may treat such events in ways that differ from user expectations.

Assetiko may rely on the reference source provider, data vendors, calculation rules, or product terms to determine the effect of such events.

Corporate action and rebalance events may affect pricing, tracking, liquidity, market behavior, and user outcomes.

18. Concentration Risk

Some tracker products may reference concentrated indices, sectors, regions, factors, themes, markets, asset classes, or methodologies.

A tracker product that appears diversified may still be heavily affected by a small number of components, countries, sectors, issuers, currencies, or market drivers.

Concentration can increase volatility and losses.

19. Emerging Market and Frontier Market Risk

If a tracker product references emerging markets, frontier markets, or similar exposures, additional risks may apply.

These include:

• Political instability
• Capital controls
• Currency restrictions
• Lower liquidity
• Less developed market infrastructure
• Settlement risk
• Custody risk
• Regulatory unpredictability
• Accounting and disclosure differences
• Sanctions risk
• Higher volatility
• Market closure risk
• Foreign ownership restrictions
• Exchange accessibility limitations

Such risks may materially affect reference values, on-chain prices, liquidity, and the ability to calculate or maintain the tracker product.

20. Sector, Theme, and Basket Risk

Tracker products referencing sectors, themes, custom baskets, or thematic exposures may be more concentrated and volatile than broad market exposures.

Themes may fall out of favor. Sector performance may diverge from broad markets. Basket constituents may be affected by common risks. Custom methodologies may be less established than traditional indices.

The fact that a product references a popular theme, sector, technology, commodity, strategy, or macro trend does not reduce risk.

21. Synthetic Exposure Risk

Some tracker products may be synthetic, calculation-based, or reference-based rather than backed by direct ownership of the underlying components.

Synthetic or calculation-based structures may introduce additional risks, including methodology risk, issuer risk, counterparty risk, liquidity risk, valuation risk, reference source risk, and legal interpretation risk.

Users must carefully review whether a tracker product is physically backed, synthetically referenced, internally calculated, externally calculated, collateralized, uncollateralized, or otherwise structured.

Unless expressly stated in the applicable product terms, users should not assume that a tracker product is backed by or redeemable for the underlying assets.

22. Issuer Risk

Tracker products may depend on the issuer's ability to maintain systems, publish information, manage operations, apply methodologies, interact with service providers, maintain compliance procedures, and continue supporting the product.

Issuer actions or failures may affect the tracker product.

These may include delays, operational failures, insolvency, business interruption, regulatory action, legal disputes, cyber incidents, mismanagement, incorrect disclosures, failed integrations, or discontinuation of support.

The existence of a tracker product on-chain does not eliminate issuer risk.

23. Counterparty and Service Provider Risk

Assetiko may rely on third parties, including data vendors, infrastructure providers, wallet providers, exchanges, market makers, liquidity providers, custodians, developers, auditors, index providers, API providers, cloud providers, legal advisers, compliance providers, and other service providers.

Failures, disputes, insolvency, cyber incidents, outages, data restrictions, licensing issues, or service interruptions involving third parties may affect tracker products.

Assetiko does not guarantee uninterrupted access to any third-party service.

24. Blockchain and XRPL Risk

Tracker products may be issued, held, transferred, or traded on the XRP Ledger or other blockchain networks.

Blockchain risks include:

• Ledger congestion
• Network outages
• Validator issues
• Protocol changes
• Amendment risk
• Transaction failure
• Incorrect destination or trust line setup
• Irreversible transactions
• Wallet compromise
• Loss of keys
• Phishing
• User error
• DEX pathfinding issues
• AMM pool risk
• Trust line configuration errors
• Network fee changes
• Unexpected behavior of blockchain features

Transactions on blockchain networks may be irreversible. Assetiko may be unable to reverse, recover, or correct mistaken transfers.

25. Smart Contract, Protocol, and Technical Risk

Where tracker products interact with smart contracts, automated market makers, decentralized exchanges, bridges, scripts, APIs, bots, token features, or other technical systems, technical risk applies.

Bugs, exploits, vulnerabilities, incorrect configuration, compromised keys, coding errors, dependency failures, integration issues, or malicious activity may result in losses.

Even audited systems may fail.

26. Wallet and Custody Risk

Users are responsible for the security of their wallets, private keys, seed phrases, devices, accounts, and signing permissions unless a regulated custodian or other service provider is expressly engaged under separate terms.

Loss of keys may result in permanent loss of access. Compromised wallets may result in theft. Assetiko may not be able to recover lost or stolen tracker products.

Users should understand how trust lines, token settings, network fees, destination tags, memo fields, and transaction signing work before interacting with any tracker product.

27. Transfer Restriction and Permissioning Risk

Some tracker products may be subject to transfer restrictions, eligibility requirements, whitelisting, authorization requirements, jurisdictional limitations, holding restrictions, lockups, blacklists, sanctions screening, compliance reviews, or other limitations.

A user may be unable to receive, hold, transfer, sell, trade, or redeem a tracker product if they do not satisfy applicable requirements.

Restrictions may change over time.

Permissioning may reduce liquidity and may cause market fragmentation.

28. Freeze, Deep Freeze, Clawback, and Issuer Control Risk

Depending on the product configuration and applicable legal structure, certain tracker products may include issuer controls such as freeze, deep freeze, clawback, trust line authorization, transfer restrictions, or other issuer-level controls.

Such controls may allow the issuer or authorized parties to restrict transfers, prevent movement, recover tokens, or limit participation in certain circumstances.

These features may be used for legal, regulatory, compliance, sanctions, court order, fraud prevention, error correction, investor eligibility, or operational reasons.

Where a product does not include a particular control, Assetiko may be unable to intervene even in cases of fraud, theft, mistake, user error, or legal dispute.

Users should review the relevant product terms and public issuer settings before interacting with any tracker product.

29. AMM and DEX Risk

Tracker products may trade on decentralized exchanges, automated market makers, or other on-chain venues.

DEX and AMM risks include:

• Low liquidity
• Slippage
• Impermanent loss for liquidity providers
• Pool imbalance
• Stale prices
• Oracle-free pricing
• Arbitrage delay
• Pathfinding issues
• Failed transactions
• Front-running-like effects
• Unexpected routing
• Incorrect pair selection
• Token impersonation
• Trust line confusion
• Liquidity withdrawal by others
• AMM fee changes
• Premium or discount to reference value

Providing liquidity is different from holding a tracker product and carries separate risks.

30. Market Maker and Liquidity Provider Risk

Assetiko may rely on market makers or liquidity providers to support trading, but there is no guarantee that any market maker or liquidity provider will continue quoting, maintain liquidity, honor indicative spreads, or support a product during volatile or stressed conditions.

Market makers may widen spreads, reduce size, pause quoting, withdraw liquidity, or exit the market.

The presence of a market maker does not guarantee liquidity, price stability, or tracking accuracy.

31. Redemption and Convertibility Risk

Unless expressly stated in the applicable product terms, tracker products may not be redeemable for cash, underlying assets, reference components, securities, fund units, commodities, or any other asset.

Even where redemption is available, it may be subject to minimum amounts, eligibility checks, fees, delays, settlement windows, market conditions, compliance reviews, jurisdictional restrictions, liquidity conditions, or suspension.

Users should not assume that they can redeem a tracker product at reference value.

32. Regulatory Risk

Tracker products may be affected by laws, regulations, regulatory guidance, enforcement actions, licensing requirements, securities laws, commodities laws, derivatives laws, fund regulations, digital asset rules, sanctions, tax rules, exchange rules, data licensing rules, consumer protection rules, and other legal frameworks.

Regulatory treatment may be uncertain and may change.

A tracker product may become restricted, unavailable, suspended, delisted, modified, or discontinued due to regulatory developments.

Users are responsible for understanding whether they are legally permitted to access, hold, trade, or transfer a tracker product in their jurisdiction.

33. Jurisdictional Risk

Tracker products may not be available in all jurisdictions or to all users.

Assetiko may restrict access based on location, citizenship, residence, entity type, accreditation status, professional investor status, sanctions status, compliance review, legal advice, or other criteria.

Users may be required to provide information, complete onboarding, pass checks, or accept additional terms.

Access to a website does not mean a product is available or lawful in a user's jurisdiction.

34. Tax Risk

Tracker products may have tax consequences.

Tax treatment may depend on the user's jurisdiction, status, holding period, transaction type, product structure, gains, losses, income treatment, transfers, staking, liquidity provision, redemption, and reporting obligations.

Assetiko does not provide tax advice. Users should consult their own tax advisers.

35. Accounting Risk

Businesses, funds, institutions, and other entities may face accounting considerations when holding or transacting in tracker products.

Accounting treatment may be uncertain or may change. Users should consult their own accounting advisers.

36. Data Licensing and Intellectual Property Risk

Reference sources, index names, benchmarks, trademarks, data feeds, and related materials may be subject to intellectual property rights, licensing restrictions, and usage limitations.

Assetiko's use of any index name, reference name, benchmark description, or data source is solely for identification of the relevant reference methodology or market exposure, unless otherwise expressly disclosed.

Assetiko is not affiliated with, sponsored by, endorsed by, issued by, sold by, promoted by, or approved by any reference source provider, index provider, exchange, benchmark administrator, data vendor, or underlying issuer unless expressly stated in formal documentation.

Changes in data licensing or intellectual property permissions may affect the availability, display, calculation, or continuation of a tracker product.

37. Website, Interface, and Display Risk

Assetiko websites, dashboards, charts, token pages, search tools, calculators, wallet displays, explorer pages, and other interfaces may show simplified, delayed, estimated, incomplete, or incorrect information.

Visual displays may differ from official product records or on-chain data.

Users should verify information through official product terms, official notices, ledger data, transaction details, and approved sources before acting.

Assetiko does not guarantee that any interface will be uninterrupted, error-free, complete, or current at all times.

38. Cybersecurity Risk

Tracker products and related infrastructure may be exposed to cyber risks, including hacking, phishing, malware, credential theft, domain spoofing, API compromise, DNS attacks, smart contract exploits, wallet attacks, social engineering, insider threats, and service provider breaches.

Cyber incidents may result in loss, theft, suspension, data compromise, incorrect pricing, platform downtime, or other harm.

Users must take appropriate security precautions.

39. Operational Risk

Operational failures may affect tracker products.

Examples include human error, incorrect data entry, failed scripts, misconfigured issuer settings, wrong token metadata, delayed updates, communication errors, failed deployments, broken links, incorrect product pages, liquidity mismanagement, or failure to process required actions.

Operational risk may exist even where the underlying blockchain is functioning correctly.

40. Conflicts of Interest

Assetiko, affiliates, issuers, service providers, market makers, liquidity providers, related entities, or personnel may have interests that conflict with those of users.

Such parties may hold tracker products, provide liquidity, manage pools, publish methodologies, operate websites, receive fees, conduct transactions, support products, or make decisions affecting tracker products.

Potential conflicts may be disclosed in applicable product terms or other documentation where required.

41. Fees and Costs

Tracker products may be subject to fees, spreads, costs, expenses, transfer costs, network fees, AMM fees, market maker spreads, data costs, platform costs, methodology costs, issuance costs, redemption costs, or other charges.

Some fees may be embedded in pricing or reflected indirectly through spreads, tracking difference, pool mechanics, or methodology adjustments.

Users should review applicable product terms and transaction details.

42. Suspension, Modification, or Discontinuation Risk

Assetiko may suspend, modify, replace, wind down, or discontinue a tracker product where permitted by the applicable product terms.

Reasons may include regulatory changes, data unavailability, reference source discontinuation, market disruption, low liquidity, operational failure, force majeure, legal risk, technical failure, cybersecurity risk, commercial impracticality, or other circumstances.

Users may experience losses, delays, restricted transfers, changed methodologies, or limited exit options in such cases.

43. Force Majeure and Extraordinary Events

Tracker products may be affected by events beyond Assetiko's control, including market closures, wars, terrorism, sanctions, pandemics, natural disasters, cyberattacks, infrastructure failures, exchange outages, regulatory bans, banking disruptions, data vendor failures, blockchain network disruptions, or other extraordinary events.

Assetiko may be unable to calculate, publish, support, trade, redeem, or maintain a tracker product normally during such events.

44. User Responsibility

Users are responsible for conducting their own due diligence before interacting with any tracker product.

Users should carefully review:

• Applicable product terms
• Methodology statements
• Risk disclosures
• Legal notices
• Jurisdictional restrictions
• Token issuer settings
• Trust line configuration
• On-chain liquidity
• Price sources
• Transfer restrictions
• Tax implications
• Wallet security
• Transaction details

Users should not interact with tracker products unless they understand the product, the reference methodology, the token mechanics, the risks, and the possibility of total loss.

45. No Reliance on Informal Communications

Users should not rely on informal communications, social media posts, chat messages, community statements, summaries, marketing content, third-party websites, unofficial price feeds, influencer statements, or unofficial explanations as definitive product terms.

Only formal Assetiko product documents, official notices, and applicable on-chain records should be treated as authoritative, subject to the hierarchy stated in the relevant product terms.

46. No Investment Advice

Assetiko does not provide personalized investment advice.

No Assetiko tracker product should be interpreted as suitable for any particular user unless suitability has been formally assessed by an authorized professional under an applicable legal framework.

Users should consult independent financial, legal, tax, accounting, and technical advisers before making decisions.

47. Acknowledgment of Risk

By accessing, buying, selling, holding, transferring, trading, providing liquidity for, or otherwise interacting with any Assetiko tracker product, you acknowledge that:

• You understand that tracker products are high-risk instruments
• You may lose some or all of your value
• Tracking may be imperfect
• Liquidity may be limited or unavailable
• On-chain prices may differ from reference values
• Product access may be restricted
• Regulatory treatment may change
• Data sources may fail or be delayed
• Blockchain transactions may be irreversible
• Assetiko does not guarantee returns, liquidity, redemption, price stability, or tracking accuracy
• You are responsible for your own decisions and due diligence

48. Final Statement

Assetiko tracker products are designed to provide tokenized reference exposure through defined methodologies and on-chain infrastructure. They involve material risks and may not be suitable for all users.

Users should not interact with any tracker product unless they fully understand the product structure, reference methodology, legal limitations, technical mechanics, and risks involved.