Risks of tokenized silver exposure.

1. General risk warning

XAGa is a tokenized silver commodity product issued on the XRP Ledger. It is designed to provide exposure to one fine troy ounce of silver per XAGa through a diversified reserve portfolio.

XAGa is not risk-free. The value of XAGa may rise or fall, and a holder may lose money, including the full amount paid to acquire XAGa, due to market movements, reserve asset risk, issuer risk, custodian risk, redemption risk, regulatory action, blockchain failure, stablecoin disruption, operational failure, fraud, cyberattack, sanctions restrictions or other events.

2. No advice

Assetiko Commodities Ltd. does not provide investment, financial, legal, tax, accounting, commodity trading, regulatory or custody advice. Information published about XAGa is provided for product information purposes only and should not be treated as a recommendation, offer, solicitation or personalized advice.

3. Nature of XAGa

Each XAGa is intended to represent one fine troy ounce of silver exposure supported by reserve assets. Holder rights are contractual and limited to the rights expressly stated in the XAGa Product Terms, Reserve Methodology, Redemption Policy and related documents.

4. Silver price risk

XAGa is linked to silver exposure. Silver prices can move materially because of interest rates, currency movements, inflation expectations, industrial demand, geopolitical events, inventory conditions, market sentiment and liquidity conditions. A decrease in silver prices may reduce the market price and redemption value of XAGa.

5. No yield risk

Silver generally does not generate income, interest or dividends. XAGa holders should not expect yield unless a separate program expressly offers one under separate terms. Trading spreads, redemption fees, physical delivery costs, custody costs, network fees, FX costs and settlement conversion costs may reduce effective returns.

6. Reserve asset risk

XAGa is supported by a physical silver reserve framework and supporting settlement assets. The reserve framework may be affected by valuation risk, liquidity risk, counterparty risk, operational risk, legal risk, encumbrance risk and settlement risk.

The issuer seeks to maintain adequate reserve coverage, but reserve value may fluctuate and may not always be immediately available for redemption.

7. Physical silver risk

Physical silver held as part of the reserve may be subject to vault risk, custody risk, insurance limitations, theft or loss, force majeure, transport risk, assay risk and jurisdiction risk. Even where silver is held by an approved custodian, XAGa holders may not have direct access to that custodian or to specific bars.

8. Reserve concentration risk

XAGa is centered on physical silver backing. This creates concentration in silver reserve exposure, custody arrangements, silver market liquidity and physical delivery procedures rather than a diversified reserve basket.

9. Custody documentation risk

Physical silver backing depends on custodian records, bar lists, insurance materials, verification materials and reconciliation procedures. Documentation may be delayed, incomplete, restricted, unaudited, corrected later or subject to interpretation by custodians, auditors, insurers or legal advisers.

10. Coverage ratio risk

Coverage ratio calculations depend on silver reference prices, confirmed physical silver quantities, cash valuation, outstanding token counts and product liabilities. A published coverage ratio may be delayed, estimated, unaudited or subject to later correction. A coverage ratio above 100.00% does not eliminate risk.

11. Undercoverage risk

An undercoverage event may occur if reserve value falls below total XAGa obligations due to reserve asset loss, valuation decline, operational error, fraud, cyberattack, market disruption, legal restriction or stablecoin failure. If undercoverage occurs, holders may experience delayed redemption or reduced recovery.

12. Issuer risk

XAGa holders are exposed to the issuer's ability to operate the product. Issuer risk includes insolvency risk, operational risk, governance risk, compliance risk, financial risk, conflict risk and key person risk. Reserve structuring may seek to separate product assets from operating assets, but separation depends on legal documentation, custody arrangements and applicable law.

13. Custodian, broker and counterparty risk

XAGa depends on third-party service providers, including silver custodians, vault operators, brokers, banks, stablecoin issuers, auditors, reviewers and technology providers. A failure by any material counterparty may affect XAGa value, redemption or operations.

14. Redemption risk

Digital redemption and physical redemption are subject to conditions. Redemption may be delayed, restricted, rejected, suspended or modified due to compliance review, jurisdictional limitations, insufficient liquidity, market disruption, stablecoin disruption, network disruption, operational limits or legal restrictions.

15. Digital settlement asset risk

Digital redemptions may be paid in supported settlement assets such as USDV, RLUSD, USDC or USDT, subject to availability and product terms. Settlement assets may involve depeg risk, freeze risk, redemption risk, network risk, bridge risk, counterparty risk and regulatory risk.

A holder who chooses a settlement asset accepts the risks of that asset and network.

16. Physical redemption risk

Physical delivery may be requested only for eligible redemptions of 1,000 XAGa or more, through approved arrangements in London, Zurich, Singapore or Hong Kong SAR, and is not offered in the United States. It remains subject to written issuer confirmation, custodian availability and compliance approval. Physical delivery may involve jurisdiction risk, minimum size risk, bar size risk, residual settlement risk, delivery cost risk, delay risk, loss risk, compliance risk and tax or customs risk.

17. Liquidity risk

There may be limited liquidity for XAGa. Liquidity depends on market makers, trading demand, reserve transparency, redemption availability, USDV liquidity, network access and market stress. A holder may not be able to sell XAGa quickly, at the reference value, or at all.

18. Secondary market price risk

XAGa may trade above or below its reference value. Secondary market price may be affected by demand and supply, redemption friction, market sentiment, trading pair liquidity, volatility and information delays. The issuer does not guarantee that XAGa will trade at or near its reference value.

19. Blockchain and XRPL risk

XAGa is issued on the XRP Ledger. Holders are exposed to network disruption, transaction finality risk, wallet risk, trustline risk, exchange interface risk, amendment risk, validator risk and technical bug risk. Blockchain transactions may be irreversible.

20. Wallet and private key risk

Holders are solely responsible for their wallets, private keys, seed phrases, signing devices and transaction instructions. Losses may occur due to lost seed phrases, phishing, malware, wrong addresses, wrong networks, fake issuers, compromised devices or user error. The issuer may be unable to reverse or recover blockchain transactions.

21. Smart contract and cross-chain risk

If XAGa is ever represented on other networks, wrapped, bridged, mirrored or used in smart contracts, additional risks may arise, including bridge failure, smart contract bugs, admin key risk, oracle risk, chain split risk and wrapped token mismatch. Native XRPL XAGa and any other network representation should not be assumed to have identical rights unless expressly stated.

22. Regulatory risk

XAGa may be subject to regulation as a commodity-linked product, digital asset, security, derivative, e-money product, stored value product, investment product or another regulated instrument depending on jurisdiction. Regulatory risk includes product classification risk, licensing risk, marketing restriction risk, transfer restriction risk, redemption restriction risk, custody regulation risk, stablecoin regulation risk and enforcement risk.

23. Sanctions, AML and compliance risk

The issuer may restrict, freeze at the platform level, reject, delay or refuse transactions, accounts or redemptions where required by law or internal risk policies. Compliance-related restrictions may arise due to sanctions, AML risk, fraud risk, market abuse, tax reporting, identity mismatch, law enforcement requests or internal policy.

24. Tax risk

Holding, transferring, trading or redeeming XAGa may have tax consequences. Treatment may depend on holder jurisdiction, holder type, transaction type, asset classification, holding period, physical delivery, customs rules and settlement asset conversion. The issuer does not provide tax advice.

25. Fee and expense risk

Fees may reduce holder returns. Potential fees include issuance fees, redemption fees, custody fees, storage fees, inspection fees, delivery fees, insurance fees, network fees, FX fees and compliance fees. Fees may change according to the Fee Schedule.

26. Valuation and pricing risk

XAGa valuation depends on data sources and calculation procedures. Risks include benchmark error, timing mismatch, custodian record delay, assay or weight adjustment, stablecoin valuation, FX conversion, data provider failure and manual override risk. Published reference values may be delayed, indicative, estimated or corrected later.

27. Proof of reserve and reporting risk

Assetiko may publish reserve reports, coverage metrics, dashboards, statements or independent reviews. These disclosures may have timing gaps, scope limitations, data dependencies, valuation limits, restricted records, error risk and no guarantee of solvency, redemption availability or future performance. Named custody providers, exact facilities, serial or bar lists, insurance schedules, routes, counterparty details and audit workpapers may remain confidential and be disclosed only after a verified request and issuer approval.

28. Conflicts of interest

Potential conflicts may arise between the issuer, affiliates, market makers, custodians, brokers, liquidity providers and holders. Conflicts may include reserve selection, fee incentives, market support, liquidity allocation, related-party services and information timing.

29. Market manipulation and fraud risk

XAGa may be affected by fraud, misinformation, fake issuer accounts, fake websites, phishing, imitation tokens, pump-and-dump schemes or manipulative trading. Holders should verify the official issuer address, official domain, token code, wallet prompts, redemption portals and source of announcements.

30. Suspension and emergency action risk

The issuer may suspend, delay, restrict or modify issuance, redemption, transfers, market support, reserve reporting, physical delivery, settlement rails or product terms to protect reserves, legal compliance, holders, operational integrity or market stability.

31. Market disruption risk

Market disruption events may affect XAGa valuation, trading and redemption. Examples include silver market closure, custodian restriction, broker failure, custodian restriction, stablecoin depeg, bank disruption, XRPL disruption, regulatory orders, war, sanctions or cyberattack. During disruption, the issuer may apply backup pricing, valuation haircuts, redemption delays, settlement substitutions or operational suspensions.

32. Product wind-down risk

The issuer may wind down, terminate or restructure XAGa if continued operation becomes commercially, legally, technically or operationally impractical. Wind-down proceeds may be less than the price paid by a holder.

33. Suitability risk

XAGa may not be suitable for all holders. It may be unsuitable for persons who need guaranteed principal, immediate liquidity, bank deposit protection, guaranteed physical delivery or certainty of regulatory treatment, or for persons who cannot use digital wallets safely, complete KYC or tolerate loss.