# Legal Disclaimers

## General Risk Disclosures

Please consider information in this Risk Disclosure Statement (“Statement”) as a general overview of the risks associated with the services offered by Collaterize and its affiliates (the “Services”) made for your awareness only. We do not intend to provide investment or legal advice through this Statement and make no representation that the Services described herein are suitable for you or that information contained herein is reliable, accurate or complete. We do not guarantee or make any representations or assume any liability regarding financial results based on the use of the information in this Statement, and further do not advise to rely on such information in the process of making a fully informed decision whether or not to use the Services. The risks outlined in this Statement are not exhaustive and this Statement only outlines the general nature of certain risks associated with crypto assets, and does not discuss in detail all risks associated with holding or trading crypto assets. Users should undertake their own assessment as to the suitability of using crypto assets and associated Services based on their own investigations, research and based on their experience, financial resources, and goals. You should not deal with crypto assets unless you understand their nature and the extent of your exposure to risk. Note that specific disclosures and terms of service will apply with respect to various offerings of Collaterize, which will be published separately. Users should refer to those terms in addition to the disclosures herein when deciding whether to utilize the Services. For the purpose of this Statement “you”, “your”, and “User” mean a user of our services and “we”, “us”, “our”, or “Collaterize”, mean Collaterize Group S.A.S. Users are strongly advised to read this Risk Disclosure Statement carefully before deciding to start using the Services. RISK OF LOSS IN TRADING CRYPTO ASSETS CAN BE SUBSTANTIAL AND YOU SHOULD, THEREFORE, CAREFULLY CONSIDER WHETHER SUCH ACTIVITY IS APPROPRIATE FOR YOU IN LIGHT OF YOUR CIRCUMSTANCES AND FINANCIAL RESOURCES. YOU SHOULD BE AWARE OF THE FOLLOWING:

**Crypto Assets Are Not Legal Tender In Most Jurisdictions**

The majority of crypto assets are neither recognized as legal tender nor backed by any central government or financial institution (except in a few limited and specific cases). Each country applies its own standards and regulations regarding crypto assets, which may change over time. There is no guarantee that a third party accepting crypto assets today will continue to do so in the future. The use of crypto assets relies on a digital, decentralized, and partially anonymous system based on peer-to-peer networks and cryptographic protocols, whose integrity is not maintained by any central authority.

Users are solely responsible for ensuring that their crypto asset-related activities comply with the laws and regulations applicable in their country of residence. They must carefully assess the legal, tax, and regulatory implications before engaging in any transaction or holding crypto assets. Neither merchants, platforms, nor any third parties are required to accept crypto assets as a means of payment, and their recognition varies across jurisdictions. Anyone choosing to buy, hold, or use crypto assets does so at their own risk and must be fully aware of the associated legal and financial uncertainties.

**Loss of value, Volatility and Uncertainty of Future Performance**

There is typically limited or no fundamental reasoning behind the pricing of crypto assets, creating the risk of volatility and unpredictability in the price of crypto assets relative to fiat currencies. Crypto assets have had historically higher price volatility than fiat currencies, including irrational and extreme moves in price as the process for valuation can be speculative and uncertain.

**Liquidity Risk**

Crypto assets can have limited liquidity that can make it difficult or impossible to sell or exit a position when desired. This can occur at any time, especially during periods of high volatility.

**Market forces**

Trading in crypto assets may be susceptible to irrational market forces, such as speculative bubbles, manipulation, scams, and fraud.

**Financial Crime and Cyber Attacks**

Cyber crime relating to crypto assets can be more prevalent than other financial crime as the ecosystem is totally digital and traditional governance and risk mitigants may be lacking. For example, a 51% attack is an attack on a blockchain by any person or group of persons who control more than 50% of the network. Attackers with majority control of a network can interrupt the recording of new blocks, alter payment history, and subvert funds. Users are susceptible to malware and fake/hijacked addresses and other forms of cyber-attacks and Users should always take care of passwords and double check the addresses and URLs before loading software or interacting with any platform, protocol, or service.

**Absence of Control**

Collaterize is not a broker, agent or advisor and has no fiduciary relationship or obligation to Users in connection with any transaction or other decision or activity undertaken by you using the Services. We do not control whether your use of the Services is consistent with your financial goals. It is up to Users to assess whether their financial resources are appropriate for their respective activity with us and risk appetite in the products and services you use.

**Availability of Services**

We do not guarantee that the Services will be available at any given time or that the Services will not be subject to unplanned service interruptions or network congestion. You may not be able to buy, sell, store, transfer, redeem, send, or receive crypto assets when you want to.

**Technology Risk**

The risks of crypto assets being transacted via new technologies (including distributed ledger technologies) include, among other things, anonymity, irreversibility of transactions, accidental transactions, transaction recording, and settlement. Transactions in crypto assets on a blockchain relies on the proper functioning of complex software, which exacerbates the risk of access to or use of crypto assets being impaired or prevented. Moreover, there is risk of failures, defects, hacks, exploits, protocol errors, or unforeseen circumstances that might occur in connection with a crypto asset or the technologies on which the crypto asset is based.

**Irreversible Transactions**

Transactions in crypto assets are generally irreversible. As a result, losses due to fraudulent or accidental transactions may not be recoverable.

**Third Party Risk**

Third parties such as payment providers, custodians, exchanges, and banking partners may be involved in the provision of the Services. You may be subject to the terms and conditions of these third parties, and Collaterize cannot be responsible for any losses these third parties may cause you.

**Complaints Procedure**

In accordance with applicable laws and regulations, and pursuant to Collaterize obligations with respect to the quality of service and transparency, any User or Client shall have the right to submit a complaint concerning the services provided by the Company. All complaints must be submitted in writing and transmitted exclusively by email to the following address: support@collaterize.com. The subject line of the email must clearly state the term “Complaint” to ensure proper identification and processing. An acknowledgment of receipt will be provided within five (5) business days of receiving the complaint. The Company will aim to provide a reasoned response or resolution within fifteen (15) business days. In exceptional circumstances, where a resolution cannot be provided within this period, the Company will inform the complainant of the reason for the delay and provide a final response no later than thirty-five (30) business days from the date of receipt.

**Taxation and Disclosure of Information**

You are responsible for determining the taxes to which you may be subject and their application when using the Services. It is your responsibility to report and pay any taxes that may arise from transactions and you acknowledge that Collaterize does not provide legal or tax advice regarding such transactions. If you have concerns about your tax treatment or obligations you may wish to seek independent advice.You understand that when, where, and as required by applicable law, Collaterize will disclose available information relating to transactions transfers, distributions or payments to the appropriate regulatory and tax authorities or other public authorities. Similarly, when, where and as required by applicable law, Collaterize will withhold taxes related to your transactions, transfers, distributions or payments.\
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**Issuer Responsibilities**

Tokens available on the Collaterize platform are not registered securities, investment contracts, or financial instruments under applicable laws. They are intended strictly as utility tokens and must not be marketed, sold, or presented as instruments designed to generate a return or profit for purchasers.

Each Issuer is solely responsible for ensuring that their project and associated token comply with all applicable laws and regulations, both in their own jurisdiction and in the jurisdictions of their users. Issuers must not make any express or implied representations, statements, or commitments regarding the future value of the token, its price appreciation, or any potential for profit. Language that may reasonably be interpreted as constituting an investment offer or a promise of financial return must be strictly avoided. Collaterize does not provide legal, financial, or tax advice. Issuers are strongly encouraged to seek independent advice from qualified legal counsel prior to launching any token or asset on the platform.&#x20;

By using the Collaterize platform, Issuers expressly acknowledge and accept full responsibility for the legal and regulatory compliance of their tokenized asset issuance. The issuance of a tokenized asset constitutes a serious legal and commercial undertaking. Any misrepresentation, omission, or false promise made in connection with a project may expose the Issuer to significant legal liability and reputational risk. Issuers are expected to maintain the highest standards of transparency, honesty, and accuracy in describing the nature, purpose, and functionality of their tokens.

**No Investment and Legal Advice**

Communications or information provided by Collaterize shall not be considered or construed as investment advice, financial advice, trading advice, or any other type of advice. The User is the only party who can determine whether an investment, investment strategy or related transaction is appropriate based on his or her personal investment objectives, financial situation and risk tolerance, and shall be solely responsible for any losses or liabilities that may result.

**Regulatory Risk**

The regulation of crypto assets and platforms is uncertain in many jurisdictions and Collaterize cannot be held responsible for compliance with legal rules of countries from which customers, on their own initiative, access the Services. Moreover, changes in rules applicable to crypto assets may considerably impact on the prices of those assets and are unpredictable. You further acknowledge the above list of risks is non- exhaustive and there may also be unpredictable risks.

