Risk Disclosure

Effective 3 June 2026

1. Introduction; Defined Terms

1.1  This Risk Disclosure (this “Disclosure”) sets out certain risks associated with participation in the Spondula ecosystem. In this Disclosure, unless the context otherwise requires: (a) “Spondula”, “we”, “us”, or “our” means the operator of the Spondula ecosystem; (b) “you”, “your”, or the “User” means the natural or legal person who accesses or uses the Spondula ecosystem; (c) “S-Token(s)” means the digital tracking instruments described in clause 10; and (d) “Operators” means the independent ecosystem participants described in clause 9.

1.2  You acknowledge and accept that participation in the Spondula ecosystem involves certain risks, and that you shall, before using the Spondula ecosystem, carefully consider such risks and ensure that you understand how the ecosystem operates.

1.3  By accessing or using the Spondula ecosystem, you acknowledge and accept that you are solely responsible for your own decisions and participation.

2. No Financial Advice

2.1  Spondula does not provide financial advice, investment advice, tax advice, accounting advice, or legal advice.

2.2  You acknowledge and accept that you shall seek independent professional advice where appropriate.

3. Non-Custodial Wallet Risk

3.1  Spondula provides non-custodial wallet infrastructure. You are solely responsible for safeguarding your devices, your recovery credentials, and your authentication methods.

3.2  You acknowledge and accept that the loss of your recovery credentials may result in the permanent loss of access to your assets, and that Spondula cannot recover private keys or recovery phrases on your behalf.

4. Irreversible Transaction Risk

4.1  You acknowledge and accept that transactions may be irreversible once confirmed.

4.2  You shall carefully verify recipient S-Handles, amounts, and transaction details before confirming any transaction, and you acknowledge and accept that incorrect transfers may not be recoverable.

5. Technology Risk

5.1  You acknowledge and accept that digital systems may experience, without limitation, bugs, technical failures, network interruptions, service outages, and software vulnerabilities.

5.2  While Spondula seeks to minimise operational risk, you acknowledge and accept that no technology platform can guarantee uninterrupted availability.

6. Cybersecurity Risk

6.1  You acknowledge and accept that you may be exposed to risks including, without limitation, malware, phishing attacks, social engineering, device compromise, and credential theft.

6.2  You are solely responsible for maintaining appropriate security practices.

7. Regulatory Risk

7.1  You acknowledge and accept that laws and regulations relating to digital assets, wallets, payments, compliance, and blockchain technology may change over time.

7.2  You acknowledge and accept that future legal or regulatory developments may affect the availability of certain services, features, jurisdictions, or ecosystem participants.

8. Liquidity Risk

8.1  Spondula does not provide liquidity and does not guarantee liquidity.

8.2  You acknowledge and accept that the ability to buy, sell, exchange, or transfer certain S-Tokens may depend on, without limitation, market conditions, available counterparties, independent Operators, proprietary traders, and liquidity providers.

8.3  You acknowledge and accept that you shall not assume that liquidity will always be available.

9. Counterparty Risk

9.1  You acknowledge and accept that certain ecosystem services involve interaction with independent participants such as Operators, proprietary traders, liquidity providers, and payment providers, and that such entities operate independently from Spondula.

9.2  You acknowledge and accept that Spondula cannot guarantee the continued availability of any particular participant.

10. S-Token Risk

10.1  S-Tokens are digital tracking instruments.

10.2  You acknowledge and accept that S-Tokens are not bank deposits, not savings accounts, not guaranteed investments, and not government-backed products.

10.3  You acknowledge and accept that holding an S-Token does not necessarily confer ownership of the underlying reference asset. For the avoidance of doubt, you should refer to the S-Token Disclaimer for further detail.

11. Price Volatility Risk

11.1  You acknowledge and accept that certain S-Tokens may track assets that experience significant market fluctuations, and that the value of tracked assets may rise or fall over time.

11.2  You acknowledge and accept that past performance does not guarantee future performance.

12. No Guarantee of Value

12.1  Spondula does not guarantee future value, price stability, liquidity, profitability, market demand, or appreciation.

12.2  You acknowledge and accept that you participate at your own discretion and risk.

13. Third-Party Service Risk

13.1  You acknowledge and accept that certain services may rely upon third-party providers, including, without limitation, identity verification providers, payment providers, banking partners, technology providers, Operators, and proprietary traders.

13.2  You acknowledge and accept that disruptions affecting third parties may affect the availability of certain services.

14. Compliance Risk

14.1  You acknowledge and accept that access to certain services may be restricted due to, without limitation, legal requirements, regulatory requirements, sanctions requirements, fraud prevention measures, and risk management decisions.

14.2  You acknowledge and accept that completion of identity verification does not guarantee access to all ecosystem services.

15. Tax Responsibility

15.1  You are solely responsible for understanding and complying with any tax obligations that may arise from your participation in the ecosystem.

15.2  For the avoidance of doubt, Spondula does not provide tax advice.

16. Availability of Services

16.1  You acknowledge and accept that not all services, features, payment methods, assets, Operators, or ecosystem participants may be available in every jurisdiction, and that availability may change over time.

17. Changes to the Ecosystem

17.1  You acknowledge and accept that the Spondula ecosystem may evolve over time.

17.2  You acknowledge and accept that features, services, participants, policies, limits, and operational processes may be modified, expanded, suspended, or discontinued.

18. Your Responsibility

18.1  You are solely responsible for understanding the risks involved, protecting your credentials, verifying transaction details, complying with applicable laws, and making independent decisions regarding your participation in the ecosystem.

18.2  Participation in the Spondula ecosystem is entirely voluntary.

18.3  For the avoidance of doubt, this Disclosure shall be read alongside the Terms of Use.