WUBU FZCO | RISK DISCLOSURES | JULY 2024

This Risk Disclosure Statement (“Statement”) intends to give an overview of the potential risksassociated with virtual assets and the use of the services provided by WUBU FZCO (“Wubu”/“Company”/ “we”/ “us”/ “our”) by users (“you”/ “your”). Wubu is licensed by the Dubai VirtualAssets Regulatory Authority (“VARA”) to undertake ‘Broker Dealer Services’ (“Services”) andthisStatement has been prepared in accordance with VARA’s licensing conditions as well as allapplicable UAE regulations and guidance, the client agreement you execute with us (“ClientAgreement”), and international best practices. Wubu may make amendments to this Statement, asmay be deemed appropriate, necessary or if so, directed by the VARA and/or the concernedregulators.

This Statement provides details of the material risks associated with using our Services butdoesn’t cover each and every risk or how they might impact you individually. There might beother risks we haven’t foreseen. The intent of this Statement is to emphasize the material riskstied to trading virtual assets and using our Services rather than diving into the technical andfinancial aspects of each risk and/or how such risks may impact your personal circumstances.

We urge users to read and comprehend this Statement before trading virtual assets or availing ourServices. By engaging with our Services, you recognize and agree to the risks described in thisStatement and any other risks linked to trading virtual assets. You are requested to evaluate theserisks independently and make investment choices based on your analysis, resources, research,and experience. Any decision regarding investments or strategies is entirely your responsibility.Be aware that Wubu won’t be accountable for any loss or damage, direct or indirect, resultingfrom the mentioned risks or related events.

1. SUSPENSION OF SERVICES

You acknowledge and understand that we may experience system interruptions or delays due tooutages, power loss, telecommunications failure, disasters, cyberattacks, system malfunctions, orother events and such interruptions or delays may affect our Services to you temporarily. We donot guarantee that our Services will be completely free from harm and uninterrupted and/oravailable at any particular time or that our Services will not be subject to unplanned serviceoutages or network congestion. In the event of any disruptions, we retain the sole discretion tomake appropriate modifications or adjustments to our Services. This can range from changing thepayment terms to cancelling orders altogether. Further, during such suspensions, you may not beable to access your virtual assets. Our Client Agreement specifies the situations in whichServices may be temporarily suspended.

2. MARKET AND LIQUIDITY RISKS

a) Market condition risks: The valuation of virtual assets which are bought or sold by you maybe influenced by market conditions, which may be either favourable or adverse. This meansthat the value of a virtual asset may fluctuate and may lose their value in full or in part.

b) Divestment concerns: In some scenarios, virtual assets may pose challenges duringdivestment. For instance, some might lack liquidity, making them tough to sell, or might fetcha price lower than the acquisition cost when you aim to divest.

3. DEFAULT AND CONTRACT TERMINATION

Upon opening an account with us, should any default event transpire, or should any act oromission by you result in an actual or potential breach of the Client Agreement, we reserve theright to close, terminate, suspend or modify any transaction or your account in accordance withthe Client Agreement. Any charges or pending payments from you, will be adjusted inaccordance with the Agreement.

4. RISKS RELATED TO VIRTUAL ASSETS

a) Virtual assets are not legal tenders: Virtual assets, often termed cryptocurrencies, digitalassets, or digital currencies, are not considered official currencies (i.e. legal tender) in mostjurisdictions. Their value isn’t backed by central banks or governments, leading to potentialnon-recognition and non-acceptance in various situations.

b) Market risk and volatility: The value of virtual assets are influenced by broad marketmovements, external events and global economic changes, resulting in potential losses.Engaging in virtual asset trading exposes users to profound market risks, underpinned byerratic price volatility. The volatility in this space is so significant that valuations can shiftdramatically, and often suddenly, without any preceding indicators. Historical performancecharts are not reliable yardsticks for forecasting future trends. Given the unpredictable natureholding onto virtual assets demands vigilance. You should be cautious about holding virtualassets and are warned that you should pay close attention to your position and holdings, andhow you may be impacted by sudden and adverse shifts in trading and other marketactivities. Investment in virtual assets could result in losses in parts or even entirety ofinvestment. You should not invest funds that you are not prepared to lose in their entirety.Further the price of virtual assets on one platform might differ considerably from anotherplatform due to liquidity variances. While we make reasonable efforts to establish reliablepricing policies and practices, there can be unforeseen impacts on virtual asset valuesaffecting the prices of our Services. You acknowledge and understand that we can’tguarantee that our provided price for any virtual asset or Services will always be better thanprices on other exchanges or platforms.

c) Irreversible transactions and limited legal recourse: Given the decentralized nature of virtualasset transactions, once executed, transactions cannot be reversed. To the extent that any ofyour virtual assets are incorrectly or fraudulently transferred, they are likely to beirretrievable. Furthermore, where virtual assets have been lost, stolen or destroyed under

circumstances rendering a party liable to you, then you may have limited recourse against theresponsible party.

d) Transferability of virtual assets: There may be circumstances wherein you may not be able totransfer your virtual assets to external virtual asset wallets. These circumstances amongstothers include,; exceeding virtual asset transfer limits established for your account inaccordance with our internal risk and anti-money laundering processes and policies; flaggingof destination wallet addresses as tainted/suspicious wallet addresses; system maintenance;suspensions of trading/withdrawals in particular virtual assets required under applicable lawby regulatory authorities or to protect the fair and orderly operation of the market; and otherevents out of our control.

e) Delays in transactions and transfers: Transfer times for virtual assets can vary due to networkcongestion, technological issues, or other unforeseen delays. Further, virtual asset transfersare subjected to screening processes in line with the applicable regulatory standards andlegislation. Certain patterns and sizes of transactions could be subject to enhanced scrutinywhich could result in delays or rejection of the transfer request. This may impact your abilityto transfer virtual assets in your account.

f) Liquidity risk: Selling virtual assets quickly without affecting their market price becomeschallenging, especially in less liquid markets or during market disruptions. Thin investmentmarkets can amplify volatility and heightened responsiveness to buying and selling pressurescompared to more actively traded markets. Such illiquidity could potentially affect the abilityto place orders, thus, potentially resulting in losses or delays in accessing funds.

g) Liquidity slippage risk: While we make efforts to monitor and maintain liquidity of virtualassets in relation to which we provide Services, market conditions might create a lack ofliquidity and devaluate the asset or cause a strong slippage on price when executing an order.You acknowledge and understand that price fluctuation occurring after you place an ordercan affect its execution price. Further, you acknowledge that limit orders will only beexecuted when the requested price is achieved rather than the published price. This meansthat there is a possibility that a limit order is only executed partially (or in certain extremesituations the order is not executed at all).

h) Public record of transactions: Transactions involving virtual assets are recorded on publicledgers, which, while not directly linking identities, can lead to potential privacy concerns. Inthe past, flaws in the source code for virtual asset networks have exposed users’ personalinformation.

i) Market manipulation and fraud risk: The virtual asset market, is susceptible to manipulativepractices and fraudulent schemes, which can distort prices and market integrity. The marketis subject to an increased risk of fraud, including the potential for amongst others, bucketshops, ponzi schemes and pump and dump schemes. Such targeted schemes may result in theunrecoverable loss of virtual assets or a loss of part or all of your virtual assets, and you maynot benefit from legal protections.

j) Increased cyber-attack risk: Virtual asset platforms and wallets are enticing targets forhackers. Virtual assets, by their inherent nature, are especially susceptible to cyber threats.The digital space in which they operate makes them prime targets for various malevolentactivities. Hackers and fraudulent entities often set their sights on these assets, orchestratingsophisticated attacks. These can include inter-alia:

a. Distributed Denial of Service (“DDoS”): Overwhelming services by flooding themwith information requests;

b. Sybil attacks: A malicious actor takes over multiple nodes in a network, essentiallygaining undue influence;

c. Phishing: Deceptive attempts to gather sensitive data by impersonating trustworthyentities;

d. Social engineering: Manipulating individuals into divulging confidential information;e. Hacking: Unauthorized intrusion into systems or networks;f. Smurfing: Flooding networks with traffic by spoofing an IP address;g. Malware: Malicious software designed to damage, disrupt or gain unauthorized

access;h. Majority-mining, consensus-based or other mining attacks: Exploiting the consensus

mechanism of blockchain networks to gain control; andi. Spoofing: Disguising communication from an unknown source as coming from a

trusted one.The decentralized and digital structure of virtual assets and the underlying distributed ledgertechnology amplifies the potential risks associated with cyber threats. If these attacks aresuccessful, they could lead to significant losses, including the potential complete loss of yourvirtual assets. Moreover, legal protections may not apply to such targeted malicious acts.

k) Account security risk: Failure to use robust security practices can render your accountsvulnerable. This includes risks from phishing, malware, and other malicious activities.Unauthorised access may be gained by third parties of your login credentials to gain accessto your account, including through carelessness or forgetfulness by the account holder, or thethird-party obtaining control over another device or account used by you in connection withany enhanced security measures enabled for your account. It is not possible to eliminate allsecurity risks. You acknowledge and accept that you are responsible for keeping youraccount and log-in details safe, and you may be responsible for all the transactions conductedthrough your account, whether authorised by you or not.

l) Legal risk: The regulatory framework for virtual assets is evolving and can change withoutnotice. Changes in laws and regulations by VARA and/or any relevant regulatory authoritymay materially affect the value, and use of virtual assets.

m) Enforcement action: Regulatory bodies may take action against virtual asset platforms orusers, leading to potential disruptions, losses, or legal consequences. In circumstances wherethere are regulatory interventions, changes to the legal landscape, or situations making ouroperations untenable or financially unviable in a particular jurisdiction, we may decide tohalt our Services. This may result in you losing access to your account and may further resultin the loss of any virtual assets stored or held on your account.

n) Third party risks and outages: Relying on third-party platforms or services introduces the riskof platform outages or malfunctions, which can impact the execution and placing orders orasset access. Third parties including payment service providers, liquidity providers,custodians, IT service providers and banking partners may be involved in the provision ofour Services. You may be subject to the terms and conditions of these third parties. Youacknowledge and understand that you may suffer losses incurred from the actions oromissions of such third parties, including those engaged by or partnered with us for theprovision of our own Services to you and those engaged by yourself and/or the buyer/selleras the case may be, for the use of our Services (e.g., the banking or wallet service providers).While the performance of the providers engaged by us is monitored constantly, an outage atone of the firm’s partners could affect you in the short-term. To the extent legallypermissible, we shall not be held responsible for any loss that these third parties may causeyou when you are using our Services.

o) Information technology risk: There are risks associated with utilizing an internet-basedsystem including, but not limited to, the failure of hardware, software, internet connectionand malicious software introduction. We do not control signal power, reception, routing viathe internet, configuration of your equipment or the reliability of your connection. Failure ofthe foregoing may result in your transaction either not being executed according to yourinstructions, or not executed at all, and/or failure and/or delay of electronic communications.

p) No investment advice: While we provide a platform for virtual asset transactions, we do notoffer investment advice. All investment decisions should be made based on personalresearch, risk tolerance, and financial situation. We provide execution-only services.

q) Taxation risks: The tax characterization of virtual assets is uncertain and you must seek yourown tax advice in connection with acquisition, storage, transfer and use of any virtual asset,which may result in adverse tax consequences to you, including, without limitation,withholding taxes, transfer taxes, value added taxes, income taxes and similar taxes, levies,duties or other charges and tax reporting requirements. It is your responsibility to report andpay any taxes that may arise from transacting using our Services, and you acknowledge thatwe do not provide tax advice in relation to any transaction carried out using our Services.You are encouraged to seek independent legal and tax advice regarding the above and beforemaking any virtual asset transaction.

r) Unanticipated risks: The risks described herein are neither intended to be a comprehensivenor an exhaustive list of risk factors. You remain responsible for taking care to understandthe technology, economic and legal nature of virtual assets and for carefully managing yourexposure in accordance with that understanding and your risk appetite for innovative, volatileand speculative new technologies and virtual assets.

Please read this Statement carefully.Please note that the above listed risks are only indicative and not exhaustive.