Risks of tokenized gold exposure.

1. General risk warning

XAUa is a tokenized gold commodity product issued natively on XRPL and Stellar. It is designed to provide exposure to one fine troy ounce of gold per XAUa through one consolidated reserve portfolio and product framework.

XAUa is not risk-free. The value of XAUa may rise or fall, and a holder may lose money, including the full amount paid to acquire XAUa, 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 XAUa is provided for product information purposes only and should not be treated as a recommendation, offer, solicitation or personalized advice.

3. Nature of XAUa

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

4. Gold price risk

XAUa is linked to gold exposure. Gold prices can move materially because of interest rates, currency movements, inflation expectations, central bank activity, geopolitical events, ETF flows, market sentiment and liquidity conditions. A decrease in gold prices may reduce the market price and redemption value of XAUa.

5. No yield risk

Gold generally does not generate income, interest or dividends. XAUa 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

XAUa is supported by a diversified reserve portfolio that may include physical gold, gold ETFs, gold certificates, cash, cash equivalents and supported settlement assets. The reserve portfolio 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 gold risk

Physical gold 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 gold is held by an approved custodian, XAUa holders may not have direct access to that custodian or to specific bars.

8. Gold ETF and ETC risk

Gold ETFs or ETCs may be used for reserve liquidity and gold exposure. These instruments introduce tracking risk, market price risk, sponsor risk, custodian-chain risk, liquidity risk, trading halt risk, fee drag and regulatory risk. XAUa holders do not directly own ETF or ETC shares unless the Product Terms expressly state otherwise.

9. Gold certificate risk

Gold certificates may be included as supplemental reserve assets. They may involve issuer risk, documentation risk, settlement risk, counterparty risk, legal enforceability risk, liquidity risk and verification risk. Gold certificates are not the same as direct possession of physical bullion.

10. Coverage ratio risk

Coverage ratio calculations depend on gold reference prices, ETF pricing, certificate valuations, 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 XAUa 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

XAUa 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

XAUa depends on third-party service providers, including gold custodians, vault operators, brokers, banks, stablecoin issuers, auditors, reviewers and technology providers. A failure by any material counterparty may affect XAUa 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 400 XAUa 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 XAUa, and liquidity may differ materially between XRPL and Stellar. 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 XAUa quickly, at the reference value, or at all.

18. Secondary market price risk

XAUa 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 XAUa will trade at or near its reference value.

19. Blockchain, XRPL and Stellar risk

XAUa is issued natively on XRPL and Stellar. Holders are exposed to network disruption, transaction-finality risk, wallet risk, trustline risk, exchange-interface risk, protocol amendment risk, validator risk, ledger divergence and technical defects. Blockchain transactions may be irreversible.

Consolidated outstanding-supply reporting depends on timely and accurate ingestion of both ledgers. A network outage, indexer delay, API failure, reconciliation exception or issuer-controlled balance classification error may temporarily cause the published aggregate or network allocation to be delayed, incomplete or inaccurate. The issuer may correct or restate displayed figures after reconciliation without changing the underlying ledger records.

XRPL and Stellar use different account models, authorization controls, transaction formats, fee mechanisms and liquidity venues. A disruption or control action on one network may not occur at the same time or in the same manner on the other. Availability on one network does not guarantee availability, liquidity or settlement on the other.

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

Native XRPL XAUa and native Stellar XAUa share the same Assetiko Gold product terms and reserve framework, but they are separate network assets. They are not automatically interchangeable on-chain. Any issuer-operated conversion, redemption and reissuance, bridge, wrapped representation or smart-contract use introduces additional execution, timing, compliance, bridge, administrative-key, oracle and asset-mismatch risks.

22. Regulatory risk

XAUa 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 XAUa 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, ETF expense ratios, certificate costs, delivery fees, insurance fees, network fees, FX fees and compliance fees. Fees may change according to the Fee Schedule.

26. Valuation and pricing risk

XAUa valuation depends on data sources and calculation procedures. Risks include benchmark error, timing mismatch, ETF premiums or discounts, certificate haircuts, 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

XAUa 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 XAUa valuation, trading and redemption. Examples include gold market closure, ETF trading halt, broker failure, custodian restriction, stablecoin depeg, bank disruption, XRPL or Stellar 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 XAUa 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

XAUa 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.