Disclaimers

If any of the risks disclosed below, or other additional risks presently regarded to be immaterial actually materialise, these could result in you (i) losing all or part of your STBT Tokens; (ii) the Tokens failing to generate any returns; (iii) the failure of the Token Sale; and/or (iv) the destruction of the Tokens.

1. Indirect Exposure to U.S. Treasury Obligations. As described in clause 7.3.1 above, you understand that your ownership of STBT Tokens only grants you an unsecured debt obligation. It does not create a direct or indirect ownership interest in any of the Underlying Assets and the existence of the STBT Token Reserves Account does not create or represent any form of relationship between you and any of the broker-dealers or banks holding the Underlying Assets.

2. U.S. Treasury Obligations. The market value of direct obligations of the U.S. Treasury may vary due to, among other things, changes in interest rates. In addition, changes to the financial condition or credit rating of the U.S. government may cause the value of the STBT Token Reserves Account to decline, which could have an adverse effect on you.

3. Duration Risk. The duration of fixed-income financial instruments, including those comprising the Underlying Assets, is a measure of the portfolio’s sensitivity to changes in interest rates. Prices of fixed-income financial instruments with longer effective maturities are more sensitive to interest rate changes than those with shorter effective maturities. As a result, you further understand that holding long duration investments may expose the STBT Token Reserves Account (and therefore you) to certain magnified risks, which include but are not limited to, interest rate risk, credit risk and liquidity risk.

4. Trading Losses and Redemptions. The redemption amount that you receive will be reduced to reflect trading losses associated with the Underlying Assets. In calculating those trading losses, Prometheus will endeavor to settle U.S. Treasury securities with a shorter maturity first. However, if there are only longer term U.S. Treasury securities available as Underlying Assets at the time a redemption request is made, then selling such U.S. Treasury securities to satisfy a redemption may result in a trading loss. BY ENTERING INTO THESE STBT TOKEN PRODUCT TERMS, YOU ACKNOWLEDGE AND AGREE THAT, PROMETHEUS WILL DEDUCT FROM THE REDEMPTION AMOUNT PER STBT TOKEN OF ONE U.S. DOLLAR ($1.00) TRADING LOSSES AND/OR TRANSACTIONAL COSTS INCURRED IN CONNECTION WITH SALES OF UNDERLYING ASSETS THAT THE AFFILIATE ENTITY DEEMS NECESSARY TO EFFECT REDEMPTIONS. DEPENDING ON THE COMPOSITION OF THE UNDERLYING ASSETS AND THE TIMING OF ANY REDEMPTIONS YOU MAKE THESE MAY BE SUBSTANTIAL AND, AS A RESULT, MAY MATERIALLY AND ADVERSELY REDUCE THE AMOUNT OF U.S. DOLLAR PEGGED DIGITAL ASSETS YOU RECEIVE FROM THE REDEMPTION PROCEEDS.

5. Affiliated Transactional Activity. Certain individuals or entities affiliated with Prometheus or the Affiliate Entity are expected to hold, purchase, sell, lend, borrow, or otherwise engage in transactions using or involving the STBT Tokens for purposes of, among other things, making markets in the STBT Token, hedging the STBT Token Reserves Account and/or otherwise supporting the use or adoption of the STBT Token. This activity may involve, without limitation, minting or redeeming STBT Tokens for Prometheus’ own account and/or otherwise transacting in STBT Tokens. No individual or entity affiliated with Prometheus is under any obligation to engage in the aforementioned activities or engage in a specified threshold of transactional activity. These activities may affect the market for, and pricing of, any Digital Assets, STBT Tokens and/or the STBT Token Reserves Account to the extent involved in these activities.

6. Delays Related to Contributed Funds. Certain Account-holders may deposit large quantities of funds with Prometheus within a short period of time for the purpose of minting STBT Tokens. In such circumstances, Prometheus will use reasonable efforts to effect the creation of new STBT Tokens promptly, but it may take up to, and in some cases more than, two (2) U.S. business days to deploy such funds to acquire additional Underlying Assets. Any delay in investing such funds in additional Underlying Assets could have an adverse effect on the investment returns of the STBT Token Reserves Account during such time.

7. Ethereum. The Ethereum blockchain may experience backlogs, higher than normal transaction fees, changes to the network, failures, downtime or even a fork of the network. You understand that Prometheus does not own or control the Ethereum blockchain and is not responsible for the operation of Ethereum and makes no guarantees regarding the blockchain’s security, functionality or availability.

8. Blockchain Forks. The underlying operating rules of the Ethereum blockchain may change from time to time in such a way as to result in more than one related version of the Ethereum blockchain (each instance of any such change, a “Fork”). In the event of a Fork, Prometheus will evaluate the outcome and make a determination to support the STBT Token on one of the post-Fork blockchains. You further understand that Prometheus may continue to only provide services for the STBT Tokens that maintain on the supported blockchain post-Fork. For the avoidance of doubt, Prometheus reserves the right to migrate the STBT Token to another blockchain or a “layer 2” network in the future in its sole and absolute discretion.

9. Smart Contracts. Smart contracts are computer codes that can be created and run by the users of the network on which such smart contract is based. A smart contract can take information as an input, process that information through the rules defined in the computer code and execute certain actions, such as Digital Asset transactions, that have been programmed into the smart contract. The use of smart contracts with respect to the STBT Tokens creates risk exposure because smart contracts use experimental cryptography. The occurrence of software bugs or other flaws cannot be ruled out and may potentially result in the theft or destruction of funds. As a result, you understand such smart contract related-risks and understand that Prometheus has the right to upgrade or modify the smart contract(s) related to the STBT Token to maintain and/or improve upon the underlying code as determined in its sole and absolute discretion, if legally obligated or compelled to do so by a court of law or other governmental authority with proper jurisdiction.

10. Limitation of Liability. For the avoidance of doubt, clause 6 of the Agreement, entitled “Liabilities,” is expressly made applicable to the STBT Token and Prometheus’ liability in connection with the use of, or transactions involving, STBT Tokens is subject to the limitations set forth therein.

11. Operational Challenges. The STBT Token may be adversely affected by operational challenges, which include, but are not limited to, Prometheus or the Matrixdock platform being subject to sophisticated cyber-attacks, unexpected surges in activity or other operational or technical difficulties that may cause interruptions to the STBT Token services. STBT Token services may experience operational issues or technical failures, including any delays or issues with banking partners, service providers or other agents that lead to delays, including delays in creating and/or redeeming STBT Tokens. You further understand and accept the risk of transaction failure resulting from unanticipated or heightened technical difficulties, and agree not to hold Prometheus accountable for any related losses.

12. Securing of Credentials. Prometheus will not be responsible for your failure to implement reasonable measures to secure your Account or relevant access credentials, or any loss of or unauthorised use of any access credentials.

13. Regulatory Considerations. The regulatory status of STBT Tokens and blockchain technology is unclear or unsettled in many jurisdictions, which leads to heightened regulatory risk. It is difficult to predict how or whether regulatory agencies may apply existing regulation with respect to STBT Tokens, blockchain technology and its supporting applications.

14. No Deposit Insurance. You understand that the funds, Digital Assets and STBT Tokens held in your Account are not subject to deposit insurance protection.

15. USDC Conversion. The issuer of USDC is Circle Internet Financial, LLC (“Circle”). According to Circle's USDC Terms, as may be updated from time to time, “USDC is fully backed by an equivalent amount of U.S. Dollar-denominated assets held by Circle with U.S. regulated financial institutions in segregated accounts apart from Circle’s corporate funds, on behalf of, and for the benefit of, [u]sers.” Circle's USDC Terms further state that “Circle does not guarantee that the value of one (1) USDC will always equal 1 USD ($1) on other platforms.” The risk of a run on USDC and Circle may be exacerbated during times of stress and/or if there is a high volume of redemptions in a short period of time. Circle's failure to maintain a dollar-peg for USDC or satisfy timely redemptions could cause USDC holders to lose confidence in the stabilisation mechanism, which may lead to a run on USDC and Circle. The most recent version of Circle’s USDC Terms is available at https://www.circle.com/en/legal/usdc-terms.

16. USDT Conversion. The issuer of USDT for international customers is Tether International Limited (“Tether”). According to Tether’s Terms of Service, as may be updated from time to time, “Tether Tokens are 100% backed by Tether’s Reserves”. Tether’s Terms further state that “Tether reserves the right to delay the redemption or withdrawal of Tether Tokens if such delay is necessitated by the illiquidity or unavailability or loss of any Reserves held by Tether to back the Tether Tokens, and Tether reserves the right to redeem Tether Tokens by in-kind redemptions of securities and other assets held in the Reserves. Tether makes no representations or warranties about whether Tether Tokens that may be traded on the Site may be traded on the Site at any point in the future, if at all.” The most recent version of Tether’s USDT Terms is available at https://tether.to/en/legal/

17. Use Cases (3CRV). The potential Decentralised Finance Use Cases for STBT Tokens will depend on the liquidity and demand for STBT Tokens in any 3CRV pool set up. If you choose to participate in staking in the 3CRV pool, any such service provided to you will be facilitated by Matrixdock or its partners acting as a transaction validator on the Curve Network and providing its private nodes for staking on your behalf. Any applicable Network Contribution Rewards will be determined by the protocols of the Curve Network and will be credited less any commission(s) for the Matrixdock services, which may be changed without notice at Matrixdock’s discretion. You acknowledge and understand that Matrixdock does not guarantee that you will receive any Network Contribution Rewards and such staking services do not constitute a fixed deposit product or issuance of securities. Withdrawal of staked assets may be delayed as a result of protocol unstaking periods or network conditions.