Tokenized Stocks — Investment Risk Disclosure

This disclosure summarizes the main risks of buying, holding, and selling tokenized stocks in the HOLD app. Read it together with the Product Disclosure and our Terms of Service. It is not exhaustive.

1. Market risk

Prices move. The value of a tokenized stock follows the price of the underlying share or fund, which can fall sharply and without warning due to company performance, economic conditions, interest rates, or broader market sentiment. You may lose some or all of your capital. Past performance is not a reliable indicator of future results.

2. Issuer and counterparty risk

A tokenized stock is a claim against a third-party issuer (Backed Finance) and depends on the custodians and counterparties holding the underlying securities. If the issuer, a custodian, or another counterparty defaults or becomes insolvent, access to the underlying shares may be delayed or impossible, and you may face a partial or total loss. HOLD does not guarantee the issuer's obligations and cannot compensate you for their failure.

3. No shareholder rights

Holding a tokenized stock does not make you a shareholder of the underlying company. You have no voting rights and none of the other legal rights of directly holding the share. Corporate actions may be handled by the issuer differently from a directly held share.

4. Liquidity and pricing risk

Tokenized stocks trade against on-chain liquidity, which can be thin. You may not be able to sell quickly, or at all, at a price close to the underlying share. The price you receive can differ from the last-traded price of the underlying and from the price shown before you confirm (slippage). On-chain liquidity trades around the clock, so a token's price can move while the underlying stock market is closed.

5. Technology, custody, and irreversibility risk

Tokenized stocks are settled on the Solana blockchain and held non-custodially in your own wallet. You are solely responsible for the security of your keys and recovery phrase. On-chain transactions are irreversible once broadcast: HOLD cannot cancel, reverse, or refund a trade, and cannot recover funds lost to a mistaken transaction, a lost recovery phrase, a smart-contract flaw, an oracle failure, or network congestion or outage.

6. Currency risk

Tokenized stocks are priced and traded in a stablecoin (for example USDC). If the value shown to you is converted into your local currency, exchange-rate movements and any de-pegging of the stablecoin can affect what you actually receive.

7. Regulatory risk

Tokenized securities are a developing area, and the legal and regulatory treatment varies by country and can change. Future regulation, or a change in a provider's regulatory status, could restrict, suspend, or end the availability of tokenized stocks, or affect your ability to hold or sell them. Availability is limited to eligible users in supported regions and excludes restricted jurisdictions.

8. No advice; your responsibility

HOLD is not a broker, adviser, or issuer, and provides no investment, tax, or legal advice and no personal recommendation. Any information in the app (including prices, charts, and company names) is for general information only. You are solely responsible for your own investment decisions and for any tax arising from them. Consider taking independent professional advice before you invest.

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