ALEDGER PLATFORM GENERAL RISK DISCLOSURE

Last Updated: March 15, 2025

IMPORTANT NOTICE

This General Risk Disclosure ("Disclosure") is provided by Aledger Network, LLC ("Aledger," "we," "us," or "our") to all users ("you" or "User") of the Aledger Platform.

PLEASE READ THIS DISCLOSURE CAREFULLY BEFORE USING THE PLATFORM OR PURCHASING ANY PRODUCTS OR SERVICES.

This Disclosure highlights the principal risks associated with using the Aledger Platform and participating in the Aledger ecosystem, including purchasing RWA Asset Packages, acquiring AFI Tokens, staking tokens, and operating nodes. This Disclosure is not exhaustive and does not disclose all risks.

BY USING THE PLATFORM, PURCHASING RWA ASSET PACKAGES, ACQUIRING AFI TOKENS, OR PARTICIPATING IN NODE OPERATIONS, YOU EXPRESSLY ACKNOWLEDGE AND ASSUME THE RISKS SET FORTH IN THIS DISCLOSURE.

1. GENERAL BLOCKCHAIN AND CRYPTOCURRENCY RISKS

1.1 Volatility Risk

The cryptocurrency market is highly volatile. The value of AFI Tokens and other cryptocurrencies can fluctuate significantly in a short period. You may experience substantial losses in the dollar value of your holdings. You should only use funds you can afford to lose.

1.2 Regulatory Uncertainty

The regulatory landscape for blockchain, cryptocurrencies, and related technologies is uncertain and rapidly evolving. Future regulatory changes may adversely affect the value, functionality, or legality of AFI Tokens or the Platform. We cannot guarantee that AFI Tokens or your use of the Platform will remain compliant with all applicable laws in all jurisdictions.

1.3 Technology Risks

Blockchain technology is relatively new and untested. Technical problems or limitations in blockchain technology may limit or prevent your use of the Platform or your ability to access or transfer your AFI Tokens. The Platform may be vulnerable to hacks, mining attacks, or other technological challenges.

1.4 Wallet Security Risks

If you lose your private keys or wallet credentials, you may permanently lose access to your AFI Tokens. We cannot recover lost private keys or passwords. You are solely responsible for maintaining the security of your wallet.

1.5 Smart Contract Risks

Smart contracts may contain bugs, vulnerabilities, or other issues that may lead to technical failures, security breaches, or the loss of funds. While we strive to use audited and secure smart contracts, we cannot guarantee they are completely free from errors or vulnerabilities.

2. PLATFORM-SPECIFIC RISKS

2.1 Business Model Risks

The Aledger business model involves innovative technologies and market approaches that may not achieve market acceptance or commercial success. The Platform may not attract sufficient users, partners, or revenue to sustain operations.

2.2 Operational Risks

The Platform may experience downtimes, delays, or failures due to technical issues, maintenance, or other operational factors. We may modify, suspend, or discontinue the Platform or certain features at any time.

2.3 Network Growth Risks

The value and functionality of the Aledger ecosystem depend on growing and maintaining an active network of users, device operators, and node operators. If the network fails to grow or sustain participation, the utility of AFI Tokens and the benefits of the ecosystem may be diminished.

2.4 Competition Risks

The market for decentralized network systems and related technologies is competitive and rapidly evolving. Competitors may offer superior products, services, or technologies that reduce demand for the Platform or AFI Tokens.

2.5 Dependency Risks

The Platform relies on various third-party services, software, and infrastructure. Problems with these dependencies could impact the functionality or security of the Platform.

3. AFI TOKEN RISKS

3.1 No Ownership or Governance Rights

AFI Tokens do not represent ownership in Aledger or grant holders any rights to dividends, profit-sharing, voting, or control over Aledger's management or operations, except as specifically described in the node governance system.

3.2 Utility Token Status

AFI Tokens are intended to be utility tokens for use within the Aledger ecosystem. However, regulatory authorities may determine that AFI Tokens should be classified differently, which could impact their value, utility, or legality.

3.3 Liquidity Risks

There may be limited or no liquidity for AFI Tokens. You may be unable to sell your AFI Tokens at a desired price or at all. The available markets for trading AFI Tokens may be unregulated and subject to manipulation or fraud.

3.4 Taxation Risks

The tax treatment of cryptocurrency transactions, including acquiring, holding, staking, and selling AFI Tokens, is uncertain and may vary by jurisdiction. You are responsible for determining the tax implications of your activities and for complying with applicable tax laws.

3.5 Token Economy Risks

The AFI Token economic model may not function as intended. Protocol revenue may be insufficient to support baseline returns, and the value mechanisms designed for AFI Tokens may not work effectively.

4. RWA ASSET PACKAGE RISKS

4.1 Device Performance Risks

WiFi devices included in RWA Asset Packages may not perform as expected due to technical limitations, manufacturing defects, connectivity issues, or other factors. Device performance directly impacts potential returns.

4.2 Return Calculation Risks

Returns from RWA Asset Packages are calculated based on multiple variables, including protocol revenue, network performance, and token value. These variables may not perform as expected, resulting in lower actual returns than projected returns.

4.3 No Guaranteed Returns

ALL RETURNS DESCRIBED IN CONNECTION WITH RWA ASSET PACKAGES ARE TARGETS ONLY AND NOT GUARANTEED. Actual returns may be higher or lower and depend on multiple factors outside of our control.

4.4 Revenue-Dependent Returns

Baseline returns are directly tied to protocol revenue. If protocol revenue is insufficient or non-existent, actual returns may be reduced proportionally or be zero.

4.5 Market Saturation Risks

As more devices are added to the network, returns may be diluted or reduced. The market for the services provided by the devices may become saturated, reducing demand and revenue potential.

5. NODE OPERATION RISKS

5.1 Staking Risks

Staking AFI Tokens to operate nodes involves locking your tokens for specified periods. During the lock period, you cannot transfer or sell your staked tokens, even if the token value is declining or you need liquidity.

5.2 Node Requirement Risks

Node requirements, including staking amounts, may change over time as described in the Node Operator Cooperation Agreement. You may need to stake additional tokens or meet new requirements to maintain your node status.

5.3 Team Building Risks

Node operation success depends partly on your ability to build and manage a team. Team building involves unique challenges and may require significant time, resources, and skills.

5.4 Competitive Ranking Risks

Certain node rewards, particularly for higher-level nodes, are distributed based on competitive rankings. Your node may not achieve the rankings necessary to receive these rewards, regardless of your efforts.

5.5 Compliance Risks

Operating a node may subject you to additional regulatory requirements, depending on your jurisdiction. You are responsible for understanding and complying with all applicable laws and regulations.

6. TECHNOLOGY AND SECURITY RISKS

6.1 Cyber Security Risks

The Platform may be subject to cyberattacks, including but not limited to malware attacks, denial-of-service attacks, and phishing attempts. Such attacks could result in temporary or permanent loss of functionality or user funds.

6.2 Software Vulnerabilities

The software used to operate the Platform may contain bugs or vulnerabilities. We strive to identify and address such issues promptly, but we cannot guarantee that all vulnerabilities will be discovered and fixed before they are exploited.

6.3 Internet Infrastructure Risks

The Platform relies on the internet infrastructure, which may be vulnerable to attacks or technical failures. Problems with internet connectivity, DNS services, or other internet infrastructure could impact the functionality and accessibility of the Platform.

6.4 Data Loss Risks

Despite our security measures, it is possible that user data could be compromised or lost. You should maintain backups of important information related to your account and activities on the Platform.

6.5 Upgrade Risks

Updates or upgrades to the Platform or underlying blockchain networks may introduce new risks or technical issues. Such changes could temporarily or permanently impact the functionality or security of the Platform.

7. LEGAL AND REGULATORY RISKS

7.1 Compliance with Local Laws

Laws and regulations regarding cryptocurrencies, blockchain technology, and related activities vary by jurisdiction and are rapidly evolving. Your use of the Platform may be subject to regulations in your jurisdiction that we are not aware of or that change after you begin using the Platform.

7.2 Anti-Money Laundering and KYC Requirements

We may be required to implement anti-money laundering (AML) and know-your-customer (KYC) procedures at any time. Such requirements may necessitate the collection of additional personal information and may restrict or delay your use of the Platform.

7.3 Tax Reporting Obligations

Cryptocurrency transactions may create tax reporting obligations. Tax laws and regulations regarding cryptocurrencies are complex and vary by jurisdiction. Failure to comply with tax obligations could result in penalties, interest, or legal action.

7.4 Intellectual Property Risks

Third parties may claim that aspects of the Platform or AFI Tokens infringe their intellectual property rights. Such claims, even if meritless, could result in litigation, adversely affect the Platform, or require changes to the Platform.

7.5 Legal Action Risks

We may be subject to legal actions or regulatory enforcement that could adversely affect the Platform, AFI Tokens, or your use of the Platform. Such actions could result in significant legal and financial costs or require changes to the Platform.

8. RISK MITIGATION

While risks cannot be eliminated, you can take steps to mitigate some risks:

8.1 Due Diligence

Conduct thorough research and due diligence before using the Platform, purchasing RWA Asset Packages, acquiring AFI Tokens, or operating nodes. Review all documentation carefully and seek professional advice if necessary.

8.2 Investment Limits

Only commit funds that you can afford to lose. Consider limiting your exposure to an amount that would not significantly impact your financial wellbeing if lost entirely.

8.3 Security Best Practices

Implement security best practices, including using strong passwords, enabling two-factor authentication when available, using secure internet connections, and being vigilant against phishing and other social engineering attacks.

8.4 Diversification

Consider diversifying your digital asset holdings across multiple projects and platforms to reduce concentration risk.

8.5 Stay Informed

Stay informed about regulatory developments, platform updates, and security advisories related to the Platform and AFI Tokens.

9. ACKNOWLEDGMENT

By using the Platform, purchasing RWA Asset Packages, acquiring AFI Tokens, or operating nodes, you acknowledge and agree that:

• You have read and understood this Disclosure;

• You have conducted your own research and due diligence;

• You understand and accept all risks described in this Disclosure;

• You are responsible for determining whether your use of the Platform is legal in your jurisdiction;

• You are responsible for complying with all applicable laws and regulations;

• You will not hold Aledger responsible for any losses or damages you may incur; and

• You have the necessary experience and knowledge to understand the risks involved.

10. UPDATES TO THIS DISCLOSURE

We may update this Disclosure from time to time to reflect changes in risks or for other reasons. The most current version will be posted on the Platform. Your continued use of the Platform after we post any modified Disclosure indicates your acceptance of the modified Disclosure.

11. CONTACT INFORMATION

If you have any questions about this Disclosure, please contact us at:

Amaterasu Research LL Email: [e-mail]

THIS DISCLOSURE DOES NOT CONSTITUTE LEGAL, FINANCIAL, OR INVESTMENT ADVICE. YOU SHOULD CONSULT WITH LEGAL, FINANCIAL, TAX, AND OTHER PROFESSIONAL ADVISORS BEFORE USING THE PLATFORM, PURCHASING RWA ASSET PACKAGES, ACQUIRING AFI TOKENS, OR OPERATING NODES.