Risk Disclosure Statement

1. Important notice — please read carefully

This Risk Disclosure Statement ("Disclosure") describes the principal risks of using the 1st.finance platform operated by MBZF Holdings ("we", "us", or "our") and of acquiring, holding, trading, or investing in Digital Assets and Tokenized Assets through it.

Investing in Digital Assets and Tokenized Assets involves a high degree of risk and may not be suitable for everyone. You may lose some or all of your invested capital. You should not invest money that you cannot afford to lose.

This Disclosure is not exhaustive and does not constitute investment, financial, legal, or tax advice. It is not a personal recommendation. You are responsible for your own decisions and should seek independent professional advice where appropriate. By using the Platform, you confirm that you have read, understood, and accepted the risks described here, which form part of our Terms of Service.

2. General investment risk

• Capital at risk. The value of investments can go down as well as up. You may receive back less than you invested, and you may lose your entire investment.
• No guaranteed returns. Unless expressly and bindingly stated in product documentation, no return, yield, income, distribution, or capital protection is guaranteed.
• Past performance. Past performance, illustrative figures, and projections are not reliable indicators of future results.
• Suitability. We do not assess whether any product is suitable or appropriate for you. Different products carry different risk profiles.

3. Digital Asset and cryptocurrency risk

• Volatility. Digital Assets are highly volatile. Prices can move significantly within short periods, including falling to zero.
• Liquidity. Some Digital Assets may become illiquid, making it difficult or impossible to sell at a desired time or price.
• Irreversibility. Blockchain transactions are generally irreversible. Errors in addresses, networks, or memos/tags may result in permanent and unrecoverable loss.
• Loss of access. Loss of credentials or compromise of your Account or security factors may result in loss of access to your assets.
• Network risk. Blockchain networks may experience congestion, forks, attacks, bugs, or failures outside our control, which may affect transactions and asset value.

4. Tokenized Asset risk

Tokenized Assets (including tokenized equities, treasury instruments, real-estate interests, and similar products) carry specific risks:

• Nature of the instrument. A Tokenized Asset is a digital instrument whose value may be linked to an underlying asset. Holding a Tokenized Asset may not give you the same legal rights as holding the underlying asset directly, including ownership, voting, or dividend rights, except as expressly stated in the product documentation.
• Issuer and counterparty risk. The value and performance of a Tokenized Asset may depend on the issuer, structurer, custodian, or other counterparties, who may default or fail to perform.
• Backing and redemption. Where a product is described as "backed" by an underlying asset, your ability to realize that backing depends on the terms of the product, the solvency of relevant parties, and operational and legal factors. Backing does not guarantee value or redemption.
• Valuation. Tokenized Assets may be difficult to value, and displayed prices may be indicative, delayed, or differ from realizable value.

5. Product-specific risks

5.1 Tokenized equities and securities

Equity-linked products are exposed to the performance of the underlying companies and markets, including market, sector, currency, and corporate-event risk. Tokenized exposure may differ from direct ownership and may not confer shareholder rights.

5.2 IPOs and early-stage offerings

IPO, pre-IPO, and early-stage opportunities are speculative and carry elevated risk, including limited information, limited liquidity, lock-up periods, dilution, and a significant risk of partial or total loss.

5.3 Tokenized treasury and fixed-income products

Although often considered lower-risk, these products remain subject to issuer, interest-rate, liquidity, structural, and operational risks. Stated yields are not guaranteed unless expressly and bindingly stated, and "instant" or "daily" liquidity features may be subject to conditions.

5.4 Real-estate products

Fractional tokenized real-estate interests are exposed to property-market risk, illiquidity, vacancy and tenant risk, valuation uncertainty, maintenance and management costs, currency risk, and local legal and tax factors. Rental yields and distributions are guaranteed.

5.5 Lending and borrowing

Collateral-backed lending and borrowing carry the risk of liquidation: if the value of your collateral falls below required thresholds, your collateral may be sold, potentially at a loss and without further notice, to repay the loan. Interest rates, margin requirements, and liquidation parameters may change.

5.6 Automated and bundled products

Automated investment strategies and curated asset bundles carry the risks of their underlying components, plus model, execution, and rebalancing risk. Automation does not guarantee profit or prevent loss.

5.7 Swaps and OTC

Swap and over-the-counter transactions carry pricing, slippage, execution, settlement, and counterparty risks.

6. Platform and operational risk

• Availability. The Platform may be unavailable or interrupted due to maintenance, technical issues, cyber-attacks, or events beyond our control, which may prevent you from transacting.
• Execution. Orders and transactions may be delayed, fail, or execute at prices different from those displayed.
• Data accuracy. Prices, valuations, yields, and other data may be inaccurate, delayed, or sourced from third parties.
• Custody. Assets held on or through the Platform are subject to custody and operational risks, including the risk of loss due to security incidents, insolvency, or failure of service providers.
• Security. Despite our measures, no system is fully secure. Unauthorized access, fraud, or theft may result in loss.

7. Regulatory and legal risk

• Evolving regulation. The legal and regulatory treatment of Digital Assets and Tokenized Assets is uncertain and evolving. Changes in law or regulation may adversely affect the availability, value, legality, or tax treatment of products, and may require us to restrict, modify, or discontinue Services.
• Jurisdictional restrictions. Products may not be available in all jurisdictions. It is your responsibility to ensure that your use of the Platform is lawful in your jurisdiction.
• No deposit protection. Unless expressly and accurately stated, Digital Assets and Tokenized Assets are generally not covered by deposit-guarantee or investor-compensation schemes. You may have limited or no recourse in the event of loss.

8. Tax risk

The tax treatment of acquiring, holding, trading, and disposing of Digital Assets and Tokenized Assets depends on your individual circumstances and jurisdiction and may change. You are solely responsible for determining and meeting your tax obligations. We do not provide tax advice; consult a qualified tax adviser.

9. Currency and conversion risk

Funding, holding, and converting between fiat currencies, stablecoins, and other Digital Assets exposes you to exchange-rate and conversion risk. Amounts credited following a wire transfer or conversion may differ from amounts you expect due to exchange rates, fees, and timing.

10. No advice and your responsibility

Nothing on the Platform constitutes investment, financial, legal, accounting, or tax advice or a personal recommendation. All decisions are made at your own discretion and risk. You should carefully consider your financial situation, objectives, knowledge, experience, and risk tolerance, and seek independent professional advice where appropriate.

11. Acknowledgement

By using the Platform, you acknowledge that you have read and understood this Risk Disclosure Statement, that you understand the risks of Digital Assets and Tokenized Assets, and that you accept those risks.

12. Contact

For questions regarding this Risk Disclosure, contact:

MBZF Holdings
Avlonos 1, Maria House, Nicosia, Cyprus
Email: hq@1st.finance