Risk Disclosure Statement

Last Updated: June 2, 2024

The Trading of any Digital Asset does entail certain risks. This risk disclosure statement cannot and does not disclose all risks and other aspects involved in holding, trading, or engaging in Digital Assets. Risks include, but are not limited to, the following:

Market Risk: The market for Digital Assets is still new and uncertain. No-one should have funds invested in Digital Assets or speculate in Digital Assets that they are not prepared to lose entirely. Whether the market for one or more Digital Asset moves up or down, or whether a particular Digital Asset will lose all or substantially all of its value, is unknown. This applies both to both long and short traders as well as individual investors. Participants should be cautious about holding Digital Assets.

Liquidity and Listing Risk: Markets for Digital Assets have varying degrees of liquidity. Some are quite liquid while others may be thinner. Thin markets can amplify volatility. There is never a guarantee that there will be an active market for an investor or trader to sell, buy, or trade Digital Assets or ancillary products. Furthermore, any market for Digital Assets may abruptly appear and vanish. XMG makes no representations or warranties about whether a Digital Asset that may be used now or in the future or if at all on the associated Platforms or Website. Any Digital Asset is subject to delisting without notice or consent.

Legal Risk: The legal status of certain Digital Assets may be uncertain. This can mean that the legality of holding or trading them is not always clear. Whether and how one or more Digital Assets constitute property, or assets, or rights of any kind may also seem unclear. Participants are responsible for knowing and understanding how Digital Assets will be addressed, regulated, and taxed under applicable law.

Exchange Risk (Counterparty Risk): Having Digital Assets on deposit with any third party in a custodial relationship has risks associated with it as well. These risks include security breaches, risk of contractual breach, and risk of loss. Participants should be wary of allowing third parties to hold their Private Keys or Digital Assets for any reason. Digital Asset transactions cannot be reversed, once a Digital Asset is sent to a Digital Wallet Address, whether intentionally or by a fraudulent or accidental transaction, you accept the risk that you may lose access and any claim to those Digital Assets indefinitely or permanently.

Trading Risk: In addition to liquidity risks, values in any Digital Asset marketplace, whether it be centralized or decentralized, are volatile and can shift very quickly. Participants in any Digital Asset market are warned that they should pay close attention to their holdings and trading activity, and how they may be impacted by sudden and adverse shifts in trading and other market activities on any platform they may use.

Banking Risk: Any stablecoin project, such as XMG Tokens, relies on financial institutions and counterparties to hold funds, cash equivalents, and other assets to back the tokens that are issued, outstanding, and freely circulating. These parties have their own policies and may change their view and acceptance of any stablecoin at any time. This may result in delays and other barriers to redemption and sale. XMG Token holders should be aware of these risks at all times. Additionally, Reserves held at or through financial institutions or intermediaries may be subject to the risk of loss, theft, insolvency, and governmental and regulatory freezes and seizures.

Counterparty Risk: Assets backing digital assets such as XMG Tokens, including digital assets, which may be subject to volatility, insolvency and illiquidity, as well as loan receivables owed to XMG, which may be subject to the risk of default, insolvency, inability to collect, and illiquidity.

Valuation Risk: XMG Tokens are backed 100% by XMG’s Reserves. Those Reserves are not insured and could be subject to unexpected diminution in value or to governmental and regulatory freezes and seizure. This may result in delays and other barriers to redemption and sale. XMG Tokens are not a fiat currency and are not issued, backed, or guaranteed by any government. As with all investments, there is a risk of loss in owning XMG Tokens. XMG Token holders should be aware of these risks at all times.