Slice Financial Risk Disclosure Statement

1. Introduction and Purpose This Risk Disclosure Statement (“Notice”) provides a comprehensive description of the risks associated with investing, trading, and holding Virtual Assets and tokenized Real World Assets (RWAs) through Slice Financial.

• All users and clients of our Brokerage and Issuance Services are strongly advised to carefully study the risks described herein before engaging in any transaction.

• Capitalized terms in this Notice are defined in our Brokerage Terms of Business, the current version of which is published and available on the Slice Financial platform (www.slicefinancial.ai).

2. General Disclosures and Conflicts of Interest At present, Slice Financial formally declares that:

• There are no identified conflicts of interest arising out of Slice Financial’s trading or business activities.

• There are no past convictions or prosecutions of any member of the Slice Financial senior management or Board of Directors, whether before the courts of the UAE, the United States, Europe, or the courts of any other jurisdiction.

• No Financial Advice: We do not provide professional financial, legal, or tax advice, and nothing in this Notice or on our platform shall be construed as such. You must not make any investment decision without first conducting your own independent research and consulting with your professional advisors. We have no obligation to inform you about the tax or legal consequences of your Virtual Asset trading activities.

3. Nature of the Investments and Associated Risks While most of the Virtual Assets brokered by Slice Financial are backed by tangible Real World Assets (such as real estate, classic cars, and precious metals), investors must understand the inherent risks of tokenized ecosystems:

• Market and Volatility Risk: There is a risk of unpredictability and volatility in the price of Virtual Assets relative to fiat currencies. Trading in Virtual Assets may be susceptible to irrational market forces.

• Liquidity Risk: Dispersed liquidity may pose challenges when trying to exit a position, particularly during periods of market stress. There is no absolute assurance that you will always be able to sell or liquidate your Virtual Assets on demand.

• Valuation Challenges: Due to potential market fragmentation and the innovative nature of tokenization technology, determining the real-time value of a given Virtual Asset may sometimes prove difficult.

• Capital Risk: You accept and confirm your understanding that Virtual Assets may lose their value in part or in full, may not always be easily transferable, and may be subject to market manipulation.

4. Custody, Settlement, and Asset Security Slice Financial takes the security of both digital and physical assets with the utmost seriousness, employing a bifurcated approach to custody:

• Physical Asset Custody: The tangible Real World Assets backing your tokens are safely stored and managed in bonded, fully insured third-party vault facilities located in secure jurisdictions including Vienna, Dubai, New Jersey, Florida, and Hong Kong.

• Virtual Asset Custody: The digital tokens you custody with us are under the control of Slice Financial; however, Slice Financial is not a standalone Virtual Assets Regulatory Authority (VARA) regulated Custody service provider. We provide Virtual Asset Custody strictly as an incidental activity to our Brokerage Services by leveraging licensed third-party custodians and robust technology providers:

  • Hex Trust acts as the primary custodian for all Virtual Assets, with the exception of Hedera-based tokens.

  • Brandbox Limited provides the custodial technology solution for all Hedera-based tokens.

  • Note: Details of the specific custody model for each Virtual Asset will be clearly set out in the relevant issuance White Paper. Slice Financial selects providers only after performing exhaustive due diligence, analyzing regulatory statuses, and implementing strict internal risk management protocols.

5. Fiat and Payment Services To seamlessly bridge Traditional Finance (TradFi) and Decentralized Finance (DeFi), Slice Financial utilizes highly regulated third-party providers for all fiat currency services:

• Zand Bank: An authorized UAE bank utilized for Slice Financial’s operational accounts and Client Money Accounts.

• Wio Bank: Utilized for Slice Financial operational accounts.

• Total Processing: Engaged as our primary payment services provider.

6. Intermediary Operations

• Slice Financial does not hold or maintain funds or Virtual Assets, nor do we provide clearing services, for other Virtual Asset Service Providers (VASPs) providing Broker-Dealer Services.

• Slice Financial does not introduce our clients to any other external VASPs.

7. Technology, Cybersecurity, and Network Risks

• Cybersecurity: The digital nature of Virtual Assets leads to an inherent risk of cyber-attacks. Transferring from or storing Virtual Assets in digital wallets exposes the assets to loss due to security breaches (e.g., hacking, phishing, social engineering, malware, spoofing). Recovering lost or stolen Virtual Assets may be impossible.

• Distributed Ledger Technology (DLT) Risks: Virtual Assets rely on cryptographic and algorithmic protocols (such as smart contracts on Ethereum, Polygon, and Base). This rapidly evolving technology may uncover technical flaws requiring the intervention of decentralized development communities. Malicious actors could exploit these vulnerabilities to misappropriate assets.

• Platform and Connectivity Risks: Trading on an online platform exposes participants to internet-related risks. Interruptions, delays, corruption of data, or loss of confidentiality may occur due to hardware, software, network connectivity issues, or third-party vendor failures. Slice Financial cannot guarantee absolute uninterrupted access.

• Asset Verification: Virtual Asset balances are maintained on the blockchain via public addresses and accessed through private keys. The pseudo-anonymous nature of blockchain ledgers can pose asset verification challenges for regulators and auditors, potentially increasing the risk of fraud or targeted schemes.

8. Regulatory and Legal Risks The legal status of certain Virtual Assets remains uncertain and varies significantly from one jurisdiction to the next.

• Regulatory changes or actions by VARA (Dubai), the SEC (USA), MiFID/MICA authorities (Europe), or any non-VARA regulators may adversely affect the use, transfer, exchange, and value of Virtual Assets.

• You bear the ultimate responsibility to ensure that your use of our services complies with the applicable laws in your jurisdiction of residence.

9. Limitation of Liability Anyone who uses our Site or Brokerage Services acknowledges and explicitly agrees that Slice Financial shall not be responsible or otherwise liable for any direct, indirect, or consequential loss or damage of any kind arising from the occurrence, in full or in part, of any of the aforementioned risk events. You are required to read the specific White Paper and any related offering memorandums associated with individual Virtual Asset issuances prior to investing.

10. Amendments to this Statement In addition to the provisions herein, we may make additional disclosures or amend this statement from time to time to comply with the evolving requirements set out under the VARA Broker-Dealer Services Rulebook, Market Conduct Rulebook, and Compliance and Risk Management Rulebook.

Changes To Our Risk And Disclosure Statement Any modifications made to this Risk and Disclosure Statement in the future will be posted on this page and, where appropriate, notified to you via email. Please check back frequently to remain informed of any updates or changes.