Function Risk Disclosure Statement

Effective Date: 2025-12-12

This Risk Disclosure Statement (this "Statement") applies to the Services provided by FireSpire Limited or its affiliates (the "Company", "we", "us" or "our"), as defined in our Terms and Conditions (the "Terms"). All capitalized terms used but not defined herein shall have the meanings given to them in the Terms.

Digital Assets (including BTC and FBTC) are highly risky and could result in the total loss of your investment due to various circumstances. Under certain market conditions, you may find it difficult or impossible to liquidate a position. You should fully inform yourself about the risks involved, including those detailed below. You should consider whether transactions in Digital Assets are suitable for you based on your investment objectives, financial circumstances, and risk tolerance. If in doubt, you should seek appropriate professional advice. This Statement does not disclose all risks and should not be regarded as professional advice.

By using the Services, you represent that you are fully aware of the associated risks and agree that you are solely responsible for determining the nature, suitability, and appropriateness of these risks for yourself. You agree and understand that you access and use the Services at your own risk.

1. No Advice or Recommendation

The Company provides an execution-only service and does not advise on the merits of any particular trade, trading risk, or associated tax consequences. The Company does not provide any financial, investment, or legal advice. Any information provided via the Services is for informational purposes only and is not intended to be, and shall not be construed as, financial advice, investment advice, or a trading recommendation. You are solely responsible for determining whether any investment, strategy, or transaction is appropriate for you based on your personal judgment and circumstances.

2. Operational and Technology Risks

• Reliance on Internet and Technology: The Services are heavily reliant on the Internet and other digital technologies, which are inherently vulnerable to interruption, delay, loss of data, or breaches in confidentiality. The Internet may be unreliable or unavailable at times, which could prevent transactions from being executed according to your instructions. The Company's systems, including those for order routing and execution, may experience hardware or software failures, resulting in orders not being executed as intended or at all.

• Jailbreak Risk: The security and operation of the Services may be compromised if the security features of the device on which you access our Services have been modified (e.g., a "jailbroken" or "rooted" device). The Company does not guarantee the functioning, security, or operation of the Services on such modified devices.

• Complexity and Technical Understanding: Digital Assets and blockchain technology are complex and often described in highly technical language. A comprehensive understanding of applied cryptography and computer science may be necessary to appreciate the inherent risks fully. Your use of our Services does not indicate our endorsement of any underlying technology and should not substitute for your own independent understanding of the associated risks.

3. Market, Liquidation, and Third-Party Protocol Risks

The Services may enable access to third-party decentralized finance (DeFi) protocols (“Third-Party Protocol”), that are completely independent of us, for activities like lending or borrowing. Engaging in such activities exposes you to severe risks, including:

• Market-Driven Liquidation:

• Rapid Price Movements: A rapid drop in the value of your collateral can cause your loan-to-value (LTV) ratio to breach liquidation thresholds faster than you can react, leading to automatic liquidation by the Third-Party Protocol, resulting in loss of collateral, liquidation penalties (typically 5-10%), and slippage.

• Flash Crashes / Black Swan Events: Extreme, rapid price movements can cause immediate and total liquidation, where the value of your collateral becomes insufficient to cover your debt, leading to a total loss of your principal.

• Network Congestion: High network congestion can cause transaction fees (gas prices) to become prohibitively expensive, preventing you from executing critical rebalancing or risk-mitigation transactions in time, resulting in liquidation.

• Third-party Protocol Failures:

• Protocol Exploits: The underlying DeFi protocol (e.g., Aave, Morpho) could itself contain a vulnerability that is exploited, leading to a loss of your deposited collateral or borrowed assets.

• Oracle Failure: If a Third-Party Protocol's price oracle provides incorrect data, it could trigger an unnecessary liquidation or fail to trigger a necessary one, both of which can result in losses.

• Protocol Pause/Upgrade: A Third-Party Protocol may pause operations or undergo an upgrade during market volatility, preventing you from managing your position and leading to liquidation once the protocol resumes.

4. Risks from Other ThirdParties

• Vault Managers and Aggregators: If you use third-party vault managers or aggregators(collectively, “Third-Party Service Provider”) to automate strategies, you are exposed to additional risks, including:

• Smart Contract Exploit: A bug in the Third-Party Service Provider'ssmart contract could lead to total loss of assets;

• (ii) Algorithm or Infrastructure Failure: The Third-Party Service Provider's rebalancing logic may fail, or its systems may go offline during critical periods, leading to unmanaged liquidations;

• (iii) Insolvency or Malicious Activity: The Third-Party Service Providercould become insolvent, or a malicious actor could gain control, leading to loss of your assets.

• Custodians: Your underlying BTC is held by the designated wallet account maintained by the qualified Custodian(“Third-Party Custodian” or “Custodian”). You are exposed to:

• Infrastructure Failure: Loss of keys or server failures could permanently lock your BTC;

• Security Failure: A hack of the Third-Party Custodian's systems could lead to the theft of your BTC;

• (iii) Insolvency: If the Third-Party Custodian becomes bankrupt, the recovery of your assets may be subject to legal proceedings with no guarantee of success.

5. Fraud, Cyberattack, and Malicious Activities

The digital asset space is a prime target for malicious actors. You are exposed to risks including, but not limited to, phishing, hacking, malware, distributed denial-of-service (DDoS) attacks, sybil attacks, and exploitation of smart contract vulnerabilities. Such events may undermine the networks we rely on, impact the value and functionality of Digital Assets, and lead to the theft, loss, or destruction of your assets. There is generally no mechanism for the recovery of lost or stolen Digital Assets.

6. Legislative and Regulatory Risks

The regulatory landscape for Digital Assets is unsettled and changes rapidly. Legislative or regulatory actions in any jurisdiction could adversely affect the use, transfer, exchange, and value of Digital Assets, and may even cause a Digital Asset to lose all value. The Services may become unavailable in your jurisdiction due to changes in law, and we may be forced to suspend or terminate your access. You are solely responsible for ensuring that your use of our Services complies with all applicable laws in your jurisdiction.

7. Taxation Risks

The tax treatment of Digital Asset transactions is uncertain and varies significantly by jurisdiction. It is your sole responsibility to determine what, if any, taxes apply to your transactions and to report and remit the correct tax to the appropriate tax authorities. You should consult your own tax advisor before engaging in any transactions.

8. Acknowledgement

You hereby expressly acknowledge, agree, and confirm that:

• You have received, read, understood, and accepted all risks described in this Statement, including the risk of total loss of your Digital Assets.

• This Statement is an integral part of the Terms and Conditions. Your acceptance of the risks herein is a fundamental prerequisite to your use of the Services.

• You agree that the limitations of liability, release, and indemnification provisions set forth in Sections 14, 15, and 16 of theTerms and Conditions fully apply to, and are reinforced by, the risks disclosed in this Statement.

• The Company, its affiliates, and their respective directors, officers, employees, and agents shall not be liable for any direct, indirect, incidental, special, consequential, or punitive damages, or any loss of profits, Digital Assets, or data, arising out of or relating to any of the risks disclosed herein.