Risk Disclosure Statement

Last Updated: December 2025

Important Notice

PLEASE READ THIS RISK DISCLOSURE CAREFULLY BEFORE USING OPENHOUSE

Investing in tokenised real estate involves significant risks. You should only invest money you can afford to lose completely. This document outlines key risks but is not exhaustive. You should seek independent financial advice if you are unsure whether this investment is suitable for you.

1. Capital Risk

Your capital is at risk. You may lose some or all of your invested capital. There is no guarantee that you will receive any return on your investment, and you may receive back less than you originally invested.

2. Property Market Risks

2.1 Market Volatility

• UK property values can decrease as well as increase

• Property markets are cyclical and subject to economic conditions

• Local market conditions may adversely affect specific properties

• Brexit, interest rates, inflation, and employment all affect property values

2.2 Rental Income Risk

• Rental income is not guaranteed

• Properties may experience void periods without tenants

• Tenants may default on rent payments

• Rental values may decrease due to market conditions

• Maintenance and repair costs may exceed expectations

• Management issues may reduce net rental income

2.3 Property-Specific Risk

• Individual properties are undiversified investments

• Structural problems, neighbour disputes, or local issues may significantly impact value

• Planning decisions or infrastructure changes may affect property values

• Properties may require unexpected capital expenditure

3. Liquidity Risk

• Property tokens may be difficult to sell quickly

• The secondary market may have limited liquidity

• You may need to sell at a significant loss to exit your position

• Large sale orders may negatively impact token prices

• There is no guarantee that a buyer will be available when you wish to sell

• Liquidity pools may be depleted during periods of high selling pressure

4. Technology Risks

4.1 Smart Contract Risk

• Smart contracts may contain bugs, errors, or vulnerabilities

• Exploits or hacks could result in permanent loss of funds

• Smart contract upgrades may introduce new risks

• We conduct security audits but cannot guarantee code is error-free

4.2 Blockchain Risk

• The Base network may experience congestion, delays, or failures

• Hard forks or protocol changes may affect token functionality

• Bridge failures between networks may cause losses

• Gas fees may increase significantly during network congestion

4.3 Wallet Security

• Loss of private keys means permanent, irreversible loss of access to your tokens

• Wallet compromises through phishing, malware, or social engineering may result in theft

• We cannot recover lost private keys or stolen funds

• You are solely responsible for securing your wallet credentials

4.4 Platform Risk

• Technical failures may temporarily or permanently prevent access

• Cybersecurity incidents may affect Platform operations

• Third-party service providers (Privy, Supabase, etc.) may experience outages

5. Regulatory Risks

5.1 Evolving Regulations

• Cryptocurrency and tokenisation regulations are rapidly evolving

• New laws may restrict, prohibit, or require licensing of our activities

• Regulatory changes may affect the legal classification of tokens

• We may be required to cease operations in certain jurisdictions

5.2 Compliance Requirements

• KYC/AML requirements may become more stringent

• Tax treatment of tokenised real estate may change

• Cross-border restrictions may be imposed on token transfers

5.3 Enforcement Risk

• Regulatory actions could suspend or terminate Platform operations

• Legal proceedings may freeze assets or prevent transactions

• Changes to FCA guidance may affect how we operate

6. Counterparty Risks

6.1 Property Management

• Third-party property managers may underperform or act improperly

• Management companies may fail or become insolvent

• Disputes with property managers may affect rental income

6.2 Service Provider Risk

• Payment processors, custodians, and other providers may fail

• Service disruptions may affect Platform functionality

• Provider insolvency may impact operations

6.3 Issuer Risk

• OpenHouse Technologies LTD may face financial difficulties

• Corporate failure could impact ongoing management of properties

• Key personnel departures may affect operations

7. Tax Considerations

• Tax treatment of tokenised real estate is complex and evolving

• You may be liable for capital gains tax, income tax, or other taxes

• Tax rules vary by jurisdiction and personal circumstances

• You are solely responsible for your own tax obligations

• We strongly recommend seeking professional tax advice

8. No Financial Advice

OpenHouse does not provide investment, financial, legal, or tax advice. All information on our Platform is for informational purposes only and should not be relied upon as advice.

Before investing, you should:

• Conduct your own thorough due diligence

• Consult qualified professional advisers

• Only invest money you can afford to lose entirely

• Understand all risks before proceeding

• Consider whether this investment is suitable for your circumstances

9. Past Performance

Past performance is not a reliable indicator of future results. Any historical returns, projected yields, or example calculations shown on the Platform are illustrative only and do not guarantee future performance.

10. Acknowledgement

By using OpenHouse, you acknowledge that:

• You have read and understood this Risk Disclosure Statement

• You understand the risks of investing in tokenised real estate

• You are investing entirely at your own risk

• You have the financial ability and willingness to bear potential total loss

• You have not relied on any advice from OpenHouse in making investment decisions

• You have had the opportunity to seek independent professional advice

• You meet the eligibility requirements to use our Platform