xStocks U.S. Stock Product – Risk Disclosure and Disclaimer

Before investing in xStocks, potential investors are strongly encouraged to review the risk disclosures published on backed.fi, including:

1. xStocks Base Prospectus and Final Terms

xStocks are issued by Backed Assets (JE) Limited, a private limited company registered in Jersey (the "Issuer"). The product is made available to eligible Kraken users via Payward Digital Solutions Ltd. (PDSL), a Kraken subsidiary licensed by the Bermuda Monetary Authority to conduct digital asset business.

Please note that xStocks holders do not own the underlying stocks or company shares, nor do they possess any shareholder rights. xStocks only provide economic exposure to the price performance of the referenced stocks. Holders do not have voting rights, dividend entitlements, or any claim on residual assets in the event of the issuing company’s liquidation. Additionally, investors have no right to access non-public information about the underlying company.

All xStocks investments are subject to fees outlined in the Base Prospectus. As a result, actual returns may differ from those of holding the corresponding stocks directly during the same time period.

2. High-Risk Warning

Investing in xStocks carries significant risk, including the potential loss of your entire principal. xStocks are speculative instruments that involve complex structures and rely heavily on technical infrastructure. They are not suitable for inexperienced or risk-averse investors.

Before investing, please ensure that:

• You fully understand the product structure and associated risks;
• You are not investing more than you can afford to lose;
• You conduct sufficient research on the underlying assets and assess your personal risk tolerance and product suitability.

3. By investing in xStocks, you acknowledge and accept the following risks:

• Market Risk: Price volatility, company performance, or changes in regulation may impact the value of xStocks.
• Platform Risk: The technical stability, security, and financial standing of platforms like BigONE and Backed may affect your investments.
• Liquidity Risk: Limited market activity could result in an inability to buy or sell xStocks in a timely manner.
• Parameter Adjustment Risk: Changes in platform rules or operational parameters may influence asset behavior and returns.
• Operational Risk: System failures, technical errors, cyberattacks, or API malfunctions could affect your trading experience.
• Regulatory Risk: Regulatory interventions could force the platform or issuer to suspend or terminate services, potentially causing losses.
• Custodial and Third-Party Risk: Insolvency or default by custodians or counterparties may lead to asset freezing or non-payment.