Digital Asset, SHOP Token, Cashback and Holding Rewards Risk Disclosure

1. Digital-asset price risk

Digital-asset prices can be highly volatile. A digital asset may experience substantial price changes, reduced liquidity or loss of market access.

You should not hold or transact in a digital asset unless you understand and can bear the risk of loss.

2. No bank deposit insurance

Digital assets are not bank deposits.

Unless a separate product expressly states otherwise, digital assets accessible through SCHWARZMAN are not protected by FDIC deposit insurance, a bank deposit-guarantee scheme or an investor-compensation scheme.

3. Blockchain and network risk

Digital assets depend on blockchain or distributed-ledger networks that may be affected by congestion, forks, validator or miner behavior, governance changes, protocol bugs, smart-contract vulnerabilities, cyberattacks, network fees, transaction reorganization or loss of network support.

Transfers may be delayed or fail.

4. Irreversibility

Blockchain transactions may be irreversible. Sending an asset to the wrong address, an unsupported network or an incompatible wallet may result in permanent loss.

5. Wallet, infrastructure and third-party risk

Schwarzman LLC does not itself hold customer private keys and does not itself act as the digital-asset custodian.

Wallet, key-management, custody, conversion and settlement functionality may rely on independent service providers. A technical failure, cyber incident, operational interruption, legal restriction or financial failure affecting a provider may affect access to or use of digital assets.

6. Conversion and liquidity risk

Digital assets used for card payments may need to be converted. Execution prices can differ from a displayed reference price because of market movement, spread, liquidity, provider execution, network delays or settlement timing.

A displayed quote may expire before execution.

7. Stablecoin risk

Stablecoins are designed to reference another asset, but they are not risk-free. Risks may include de-pegging, issuer failure, reserve risk, redemption restrictions, liquidity problems, banking-partner failure, regulatory action and market disruption.

SCHWARZMAN does not guarantee that a stablecoin will always trade or redeem at its intended reference value.

8. SHOP Token

SHOP Token is a digital asset. Its value may decrease as well as increase and it may become less liquid, unavailable on a particular venue, technically unsupported or materially less valuable.

SCHWARZMAN does not guarantee that SHOP Token will:

• increase in value;
• maintain a minimum value;
• remain liquid;
• remain transferable;
• remain swappable to USDT or another asset at any particular price; or
• remain supported indefinitely.

Historical SHOP Token price or performance information is backward-looking only and is not a forecast.

9. Cashback

Eligible card payments receive 1% cashback in SHOP Token subject to program and transaction eligibility.

The cashback amount represents a reward based on the eligible payment and the applicable SHOP Token valuation used when the reward is calculated or credited.

Because the reward is paid in a digital asset, its market value may change after crediting.

Cashback may be withheld, corrected or reversed if the underlying card payment is refunded, reversed, charged back, fraudulent, ineligible or credited in error.

10. Holding rewards

Holding rewards are optional. Current rates or maximum rates are shown in the SCHWARZMAN application before confirmation.

Unless expressly stated otherwise in the application, holding-reward rates are variable, may change and are not guaranteed.

Any calculator, example or projection shown by SCHWARZMAN is illustrative only and is not a forecast, guarantee or promise of future return.

11. Holding period and liquidity

If you choose a fixed holding period, the relevant assets may be unavailable for spending, withdrawal or transfer during the selected holding period, subject to the conditions shown before confirmation.

You should not set aside assets that you may need during the holding period.

12. Reward and counterparty risk

Holding rewards depend on the structure and third-party infrastructure supporting the applicable reward feature. The legal, operational, market and counterparty risks may therefore differ by asset and reward option.

Participation may expose you to service-provider failure, operational interruption, changes in reward economics, market losses or changes in applicable law.

13. No guarantee of principal or return

No SCHWARZMAN statement should be interpreted as guaranteeing preservation of capital, SHOP Token appreciation, reward income, a minimum yield or a profitable outcome.

Assets remain exposed to market risk while held or set aside.

14. Regulatory risk

Digital-asset laws and regulatory treatment continue to develop. Changes in law, sanctions, regulatory classification or provider availability may cause an asset or feature to be restricted, modified or discontinued.

15. Tax risk

Digital-asset deposits, card-funded conversions, swaps, cashback, transfers and holding rewards may create tax consequences depending on your jurisdiction and circumstances.

SCHWARZMAN does not provide tax advice.

16. Security risk

Digital assets are attractive targets for phishing, malware, social engineering, account takeover and credential theft.

You are responsible for maintaining secure devices and credentials and for verifying wallet addresses and transaction instructions before transferring assets.

17. No investment advice

Information presented by SCHWARZMAN is for general information and product explanation only. It is not individualized investment, legal or tax advice.

18. Customer acknowledgment

By using digital-asset, SHOP Token, cashback or holding-reward functionality, you acknowledge that you understand the relevant risks and accept that digital assets and rewards may lose value, be delayed, be restricted or become unavailable.