Tokenized Stocks — Product Disclosure

This disclosure explains how tokenized stocks work inside the HOLD app. It applies to HIHODL TECHNOLOGIES OÜ, a company incorporated in Estonia ("HOLD", "we", "us"). Read it together with our Terms of Service, the Investment Risk Disclosure, and the Restricted Jurisdictions list. Nothing here is investment, tax, or legal advice.

1. What a tokenized stock is

A tokenized stock (for example AAPLx, TSLAx, or SPYx) is a blockchain token that tracks the price of an underlying share or fund. The tokens made available in HOLD are issued by a third-party issuer, Backed Finance AG and its affiliates ("Backed"), under a base prospectus approved in the European Union / Liechtenstein. Each token is intended to be backed 1:1 by the corresponding underlying security held by the issuer or its custodians.

A tokenized stock is a security (a transferable financial instrument), not a cryptocurrency. It is not the underlying share itself. Holding the token does not make you a shareholder of the underlying company.

2. HOLD's role — a non-custodial, passive interface

HOLD is self-custodial wallet software. In relation to tokenized stocks:

• HOLD is not a broker-dealer, exchange, investment firm, financial adviser, or issuer, and does not provide investment advice, portfolio management, or personal recommendations.
• HOLD does not issue, mint, redeem, hold, or take custody of tokenized stocks. The tokens are generated and held under your sole control in your own wallet, on the Solana network.
• HOLD does not match orders, operate an order book, act as counterparty to your trade, or hold client money or client assets.
• When you buy or sell a tokenized stock, you initiate and authorize a peer-to-pool swap that executes against public, third-party on-chain liquidity (a decentralized exchange aggregator). HOLD provides only the interface that helps you construct and broadcast that transaction from your own keys.

Backed's own documentation states that its tokens are offered only through licensed entities and that distributors are responsible for complying with the regulatory requirements in the jurisdictions where they operate. HOLD provides passive, non-custodial software and does not act as Backed's distributor or agent.

3. No voting or shareholder rights

A tokenized stock does not confer voting rights, and it does not make you a registered shareholder of the underlying company. You do not acquire the governance, pre-emption, or other rights attached to directly holding the underlying share. Any economic events (such as price movements, corporate actions, or splits) are handled by the issuer under its own terms and may be reflected in the token differently from a directly held share.

4. Issuer and counterparty risk

Your tokenized stock is a claim whose value depends on the issuer (Backed) and the custodians and counterparties it relies on. Backed is exposed to the credit risk of the institutions with which it holds cash, crypto, and securities, including the depositary institutions holding the underlying shares that collateralize the tokens.

If the issuer, a custodian, or another counterparty fails to meet its obligations or becomes insolvent, access to the underlying securities may be delayed or impossible, and you may face a partial or total loss of your invested capital. Because the product is non-custodial, HOLD cannot reverse a transaction, recover the underlying share, or compensate you for issuer or counterparty failure.

5. How buying and selling works

• You spend a stablecoin you already hold (for example USDC on Solana) to receive the tokenized stock, or the reverse when selling.
• The transaction is a token swap executed on-chain against third-party liquidity. Prices are set by that market, not by HOLD, and can differ from the last-traded price of the underlying share and from the price shown before you confirm.
• On-chain transactions are irreversible once broadcast. You are responsible for verifying the details before you confirm.
• Network fees, swap fees, and price slippage may apply and are shown, where available, before you confirm.
• Underlying stock markets have opening hours; on-chain token liquidity does not, so a token's price may move when the underlying market is closed.

6. Eligibility, identity verification, and restricted regions

Tokenized stocks are offered only to eligible users in supported regions. They are not offered to U.S. Persons or to persons in the United States, Canada, the United Kingdom, or Australia, or in any other restricted jurisdiction. The underlying tokens have not been and will not be registered under the U.S. Securities Act of 1933 and are offered only outside the United States to non-U.S. Persons in reliance on Regulation S.

Access to tokenized stocks in the app requires you to complete identity verification (KYC) and to be resident in a supported region. We apply both a location check and a verified-residence check. Your wallet, swaps, and other features are unaffected by these controls. See the full Restricted Jurisdictions list.

7. Taxes

You are solely responsible for determining and meeting any tax obligations arising from buying, holding, or selling tokenized stocks, including any obligation to report gains, income, or holdings to the relevant authorities. HOLD does not provide tax advice.

8. Risk warning

Investing carries risk. The value of a tokenized stock can go down as well as up, and you may get back less than you put in, including a total loss. Past performance is not a reliable indicator of future results. Do not invest more than you can afford to lose. Read the full Investment Risk Disclosure before you trade.

9. Contact

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