Risk Disclosure Statement

IMPORTANT — READ CAREFULLY BEFORE PURCHASING DEMGT

Purchasing, holding, or transacting in DEMGT involves significant risk, including the risk of TOTAL LOSS of the value of your purchase. DEMGT is a utility token and is not a regulated investment product, deposit, or financial instrument. There are no guarantees of any return, liquidity, utility, or future development. You should not purchase DEMGT unless you fully understand the risks set out in this Statement and are prepared to bear those risks, including the risk of losing the entire value of your purchase. If you do not understand these risks, you should not purchase DEMGT and should consult an independent financial, legal, and tax advisor.

1. Purpose of This Statement

This Risk Disclosure Statement ("Statement") is provided by DE Asset Management ("we," "us," or "our") in connection with the offering, sale, and use of DEMGTTOKEN ("DEMGT," "Token"). This Statement is incorporated by reference into our Terms of Use and must be read in conjunction with them.

The risks described below are not exhaustive. There may be other risks not currently known to us, or that we currently consider immaterial, that could materially affect the value, utility, or operation of DEMGT. You are solely responsible for assessing the risks of participating in any DEMGT-related activity.

By purchasing, holding, or transacting in DEMGT, you acknowledge that you have read, understood, and accepted the risks described in this Statement.

2. Risks Related to the Token

2.1 Total Loss of Value

The value of DEMGT may decline, including to zero. You may lose the entire amount you paid for DEMGT. There is no minimum value, floor price, redemption guarantee, or buyback obligation. We do not guarantee any liquidity, secondary market, or ability to sell or exchange DEMGT for any other currency, asset, or value.

2.2 No Investment Return

DEMGT is a utility token. It is not a security, investment contract, share, or financial product. There is no expectation, promise, or guarantee of:

• Any profit, return, dividend, interest, yield, or capital appreciation;
• Any share of revenues, profits, or assets of DE Asset Management or any affiliate;
• Any voting, governance, or ownership rights in DE Asset Management or any related entity;
• Any redemption, conversion, or refund rights.

2.3 Price Volatility

The price of DEMGT, like other cryptocurrencies, may be extremely volatile. Prices may fluctuate significantly within short periods of time. Volatility may be driven by many factors, including but not limited to: market sentiment, macroeconomic conditions, regulatory developments, technological changes, security incidents, social media activity, and the actions of large holders or coordinated groups. Past performance is not indicative of future results.

2.4 Limited Liquidity

There is no guarantee that a liquid market for DEMGT will develop or be maintained. Even if DEMGT is listed on decentralized exchanges, trading volumes may be low, spreads may be wide, and you may be unable to sell or exchange DEMGT at a price you consider acceptable, or at all. Liquidity may be withdrawn or impaired at any time.

2.5 No Insurance or Government Guarantee

DEMGT is not insured by the Canada Deposit Insurance Corporation (CDIC), the Canadian Investor Protection Fund (CIPF), the U.S. Federal Deposit Insurance Corporation (FDIC), the U.S. Securities Investor Protection Corporation (SIPC), or any similar deposit or investor protection scheme in any jurisdiction. There is no government, central bank, or other authority that guarantees the value of DEMGT or backstops losses.

3. Risks Related to Cryptocurrency and Blockchain Technology

3.1 Smart Contract Risk

DEMGT is implemented through smart contracts deployed on the Ethereum blockchain. Smart contracts are computer code and may contain bugs, vulnerabilities, or design flaws that could result in loss of tokens, theft, or operational failures. Even audited smart contracts have, in the past, suffered exploits resulting in total or partial loss of user funds. We do not guarantee that the smart contracts underlying DEMGT are free of vulnerabilities.

3.2 Blockchain Network Risk

The Ethereum blockchain and other underlying networks may experience congestion, downtime, forks, attacks (including 51% attacks), or protocol changes that could affect the availability, functionality, or value of DEMGT. Transaction confirmation times and fees (gas) may vary significantly and may make transactions slow or uneconomic at times.

3.3 Loss of Private Keys

DEMGT is held in cryptocurrency wallets controlled by private keys. If you lose access to your private keys or recovery phrase, your DEMGT may be permanently inaccessible. We cannot recover lost private keys or reverse transactions. You are solely responsible for the secure storage of your private keys and wallet credentials. There is no "forgot password" function on a blockchain.

3.4 Hacking, Theft, and Phishing

Cryptocurrency holders are frequent targets of hacking, phishing, social engineering, and malware attacks. You are responsible for securing your devices, accounts, and credentials. We are not liable for any loss arising from compromise of your wallet, exchange account, email, or other personal credentials, even where caused by sophisticated attacks.

3.5 Irreversible Transactions

Blockchain transactions are generally irreversible. If you send DEMGT or any other cryptocurrency to an incorrect address, or fall victim to a scam, the transaction cannot be reversed by us or by the blockchain. You are solely responsible for verifying all transaction details before confirming.

3.6 Wallet Compatibility

DEMGT is an ERC-20 standard token and is compatible only with wallets and exchanges that support the ERC-20 standard on the Ethereum network. Sending DEMGT to an incompatible address (for example, a Bitcoin address, or an Ethereum address on the wrong network) may result in permanent loss.

4. Regulatory Risks

4.1 Evolving Regulatory Landscape

The regulatory treatment of cryptocurrencies, tokens, and related activities is rapidly evolving in Canada and worldwide. New laws, regulations, guidance, court decisions, or enforcement actions could materially affect DEMGT, including:

• Reclassification of DEMGT as a security or other regulated financial instrument, requiring registration, exemption, or cessation of activities;
• New licensing, registration, capital, or compliance requirements applicable to DEMGT or to DE Asset Management;
• Restrictions on the issuance, sale, marketing, or use of DEMGT in specific jurisdictions;
• Tax law changes affecting the treatment of cryptocurrency transactions;
• Enforcement actions against DE Asset Management, related parties, or service providers.

Any of the above could materially and adversely affect the value, utility, or availability of DEMGT, potentially resulting in total loss.

4.2 Jurisdiction-Specific Prohibitions

DEMGT may not be lawful to purchase, hold, or use in your jurisdiction. You are solely responsible for determining the legality of DEMGT in your jurisdiction and complying with applicable law. We make no representation that DEMGT is lawful or appropriate for use in any particular jurisdiction. Restrictions or prohibitions may be imposed at any time, with or without notice.

4.3 Anti-Money Laundering and Sanctions Compliance

DE Asset Management is registered as an MSB with FINTRAC and is subject to AML, CTF, and sanctions compliance obligations. We may suspend, restrict, or terminate accounts or transactions where required by law or where we identify suspected non-compliance. You may be required to provide additional information or documentation at any time, and failure to comply may result in loss of access to the Services and to your DEMGT holdings held with us.

4.4 Tax Risks

The tax treatment of cryptocurrency transactions varies by jurisdiction and is complex. In Canada, cryptocurrency transactions may be treated as taxable events generating capital gains, business income, or other taxable income, depending on the circumstances. Other jurisdictions have different rules. You are solely responsible for determining and paying any tax obligations arising from your DEMGT activities. We do not provide tax advice and recommend that you consult a qualified tax professional.

5. Risks Related to DE Asset Management and the DEMGT Ecosystem

5.1 Project Execution Risk

The DEMGT ecosystem, including the proposed DEMGTTOKEN Villages, SME funding programs, and other ecosystem initiatives, is in early stages of development. There is no guarantee that:

• Any roadmap milestone will be achieved on time, in full, or at all;
• Any planned product, service, or feature will be developed, launched, or maintained;
• DEMGT will achieve widespread adoption or commercial success;
• The business model underlying the DEMGT ecosystem will prove viable;
• Sufficient capital, talent, or operational capacity will be available to execute the project.

Failure to execute on roadmap commitments may materially and adversely affect the value and utility of DEMGT.

5.2 Key Personnel Risk

The DEMGT project depends on the continued involvement of key personnel at DE Asset Management. The loss of one or more key persons, including through death, disability, departure, or regulatory action, could materially and adversely affect the project.

5.3 Conflicts of Interest

DE Asset Management, its principals, affiliates, partners, employees, and advisors may hold DEMGT and may have economic interests that differ from those of other token holders. These persons may buy, sell, or otherwise transact in DEMGT at any time, subject to applicable lock-up periods and compliance requirements. Such transactions may affect the price of DEMGT.

5.4 Reliance on Third Parties

The DEMGT ecosystem relies on third-party service providers, including blockchain infrastructure providers, decentralized exchanges, wallet providers, KYC vendors, banking partners, and software developers. Failure, breach, or termination by any third-party provider could disrupt the Services and adversely affect DEMGT.

5.5 Forks, Migrations, and Discontinuation

We may, at our discretion or as required by law, undertake actions including but not limited to: migrating DEMGT to a different blockchain, modifying smart contracts, conducting token swaps, pausing transfers, or discontinuing the Token entirely. Any such action could affect the value, utility, or availability of DEMGT. We will provide notice of material actions to the extent reasonably practicable, but advance notice may not always be possible.

6. Market and Adoption Risks

6.1 Competition

The cryptocurrency and cross-border payments markets are highly competitive. DEMGT competes with thousands of other tokens, traditional payment networks (SWIFT, Wise, Western Union, etc.), stablecoins, central bank digital currencies, and other emerging technologies. There is no guarantee that DEMGT will achieve or maintain any meaningful market share or use case.

6.2 Adoption Risk

The utility and value of DEMGT depends on adoption by users, merchants, partners, and ecosystem participants. There is no guarantee that the level of adoption necessary to support the use cases described on the Website will be achieved. Adoption may be slow, may stall, or may decline.

6.3 Reputation Risk

The cryptocurrency industry has experienced numerous high-profile failures, frauds, and controversies. Negative events affecting the broader industry, including those unrelated to DEMGT, may adversely affect public perception, regulatory treatment, and market value of DEMGT.

7. Operational and Security Risks

7.1 Website and Platform Availability

The Website and any platforms operated by us may experience downtime, interruption, errors, or unavailability due to technical issues, maintenance, cyberattacks, or other causes. During such periods, you may be unable to access information, conduct transactions, or use Services.

7.2 Data Security

Although we implement security measures to protect user data, no system is fully secure. A breach of our systems could result in unauthorized access to personal information, account credentials, or transaction data, with potential consequences including financial loss and identity theft.

7.3 Operational Errors

Errors in our internal operations, smart contract deployment, key management, or third-party integrations could result in loss of funds, mispriced transactions, incorrect token issuance, or other adverse outcomes. While we maintain controls and procedures to minimize such risks, they cannot be eliminated.

8. Forward-Looking Statements

The Website, the Litepaper, and other marketing materials may contain forward-looking statements, including statements regarding our intentions, plans, expectations, roadmap, partnerships, and projected ecosystem developments. These statements are based on current expectations and assumptions and are subject to significant risks, uncertainties, and changes. Words such as "expect," "intend," "plan," "believe," "will," "may," "should," and similar expressions identify forward-looking statements. Actual results may differ materially from those expressed or implied. We undertake no obligation to update or revise any forward-looking statements except as required by applicable law.

9. No Advice

Nothing on the Website or in this Statement, the Litepaper, or any other communication from us constitutes financial, investment, legal, tax, or other professional advice. We do not consider your personal financial situation, objectives, or risk tolerance. You should consult independent qualified advisors before making any decision relating to DEMGT.

10. Acknowledgment

By purchasing, holding, or transacting in DEMGT, you acknowledge that you have:

• Read and understood this Risk Disclosure Statement in its entirety;
• Sufficient knowledge of cryptocurrency, blockchain technology, and the operation of utility tokens to evaluate the risks;
• Conducted your own independent investigation and, where appropriate, sought independent professional advice;
• Determined that DEMGT is suitable for you based on your financial situation, objectives, and risk tolerance;
• Accepted the risks described in this Statement, including the risk of total loss;
• Confirmed that participation in DEMGT is lawful in your jurisdiction;
• Confirmed that you are not a Restricted Person and are not located in a Restricted Jurisdiction (as defined in the Terms of Use).

11. Updates to This Statement

We may update this Statement from time to time. Material changes will be communicated through prominent notice on the Website. The "Last Updated" date at the top of this Statement indicates when the most recent changes were made. Your continued use of the Services after updates take effect constitutes acceptance of the revised Statement.

12. Contact

For questions regarding this Risk Disclosure Statement, please contact: