Risk Disclosure

BEFORE USING ANY OF PEARL LABS’ SERVICES, INCLUDING ALTO.MONEY, YOU SHOULD ENSURE THAT YOU FULLY UNDERSTAND AND CAN AFFORD TO UNDERTAKE THE RISKS INVOLVED.

BY USING PEARL LABS’S SERVICES AND ALTO.MONEY, YOU AGREE TO THE TERMS OF USE AND THIS RISK DISCLOSURE.

You agree and understand that you access and use Alto.Money at your own risk.

This brief statement does not disclose all of the risks associated with the use of Alto and related applications and services. The risks listed below, therefore, do not constitute an exhaustive list, and additional significant risks may be applicable.

No Investment Advice.

Pearl Labs does not provide investment, tax, or legal advice, and you are solely responsible for determining whether any financial transaction strategy or related transaction is appropriate for you based on your personal investment objectives, financial circumstances, and risk tolerance. You agree and understand that you are solely responsible for determining the nature, potential value, suitability, and appropriateness of these risks for yourself, and that Pearl Labs does not give advice or recommendations regarding borrowing and lending digital assets.

Pearl Labs may provide information including but not limited to blog posts, articles, podcasts, tutorials, and videos. The information contained therein does not constitute investment advice, financial advice, trading advice, or any other sort of advice, and you should not treat any of the content as such. Pearl Labs does not recommend that any digital asset should be bought, earned, sold, lent out, or held by you, and will not be held responsible for the decisions you make to buy, sell, trade, lend, or hold digital assets based on the information provided by us.

General Risks.

As with any asset, the value of digital assets, including USDO, can decrease and there can be a substantial risk that you can lose all of your funds. You should consult your financial advisor, legal or tax professional regarding your specific situation and financial condition and carefully consider whether buying, trading, lending, borrowing or holding digital assets is suitable for you. You acknowledge that digital assets are not subject to protections or insurance provided by the Federal Deposit Insurance Corporation or the Securities Investor Protection Corporation.

You should be aware that you may sustain a total loss of your funds by accessing Alto.Money, and that under certain market conditions, you may find it difficult or impossible to liquidate a position.

You further understand and acknowledge that:

• the risk of loss in borrowing and lending and holding digital assets may be substantial and losses may occur over a short period of time;

• USDO is an over-collateralized Omnichain stablecoin, but may not remain pegged to the U.S. Dollar at all times and in general digital assets which are meant to mimic or follow the price of another asset (e.g., any fiat currency, commodity) may not always accurately reflect such prices, which can fluctuate above or below its intended value;

• the price and liquidity of digital assets have been subject to large fluctuations in the past and may be subject to large fluctuations in the future;

• legislative and regulatory changes or actions at the state, federal, or international level may adversely affect the use, transfer, exchange, and value of digital assets;

• digital assets, including USDO, are not legal tender and are not backed by the government;

• transactions in digital assets may be irreversible, and, accordingly, losses due to fraudulent or accidental transactions may not be recoverable;

• the value of digital assets may be derived from the continued willingness of market participants to exchange fiat currency or digital assets for digital assets, which may result in the potential for a permanent and total loss of value of a particular digital asset should the market for that digital asset disappear.

Past performance is no guarantee of future results.

Regulatory Risks.

Digital assets are largely unregulated in most parts of the world, and limited protection may be afforded to users in the event of loss. Different jurisdictions may treat digital assets differently, and the cross-border nature of the blockchain and of digital assets may make them subject to the laws of various jurisdictions. You must always make sure that any use you make of any digital asset is compliant with all applicable laws.

Different jurisdictions may impose specific tax rules and treatments to digital assets. You must ensure you understand the tax implications of your activities, and always comply with all reporting and payment obligations applicable to you.

Risks Related to the USDO & ALTO.

USDO and ALTO tokens (“USDO”, “ALTO”, or “Tokens”) should not be held for any speculative investment purposes or other financial purposes. Tokens are to be used for their utilities within the Alto ecosystem only.

USDO and ALTO Tokens do not entitle their holders to any share in Pearl Labs’ profits. Moreover, Pearl Labs is not required to provide a refund to you for any reason, to repurchase any Tokens from you, or to redeem Tokens for any consideration whatsoever. Pearl Labs cannot and does not guarantee or make any representations regarding the transferability, future use, price, or value of USDO or ALTO Tokens.

USDO may be subject to depegging from the US dollar and or unexpected loss of value. As with other digital assets, USDO and ALTO Tokens are susceptible to a wide variety of risks, including the risk of theft, loss of keys, irreversibility of transactions, failure of the underlying blockchain, and regulatory risks.

Applicable laws and regulations, including regulatory changes and enforcement actions, may limit the utility, functionality, accessibility and transferability of the Tokens, and have a substantial detrimental effect on their value.

USDO and ALTO have not been and are not intended to be registered under the U.S. Securities Act, the UK Financial Services and Markets Act, or the applicable Laws of any other jurisdiction. Pearl Labs does not intend or undertake to register the Tokens for trading on any securities exchange. There is a risk that the Tokens may be viewed as a security, financial instrument, specified investment, or other regulated instrument. If this occurs, the Tokens may not be transferred except pursuant to an exemption from, or a transaction not subject to, the applicable registration requirements of the applicable Laws. These restrictions may limit the transferability, value and liquidity of the Tokens.

PEARL LABS DOES NOT INVITE YOU TO PARTICIPATE IN THE PEARL LABS / ALTO ECOSYSTEM.

PEARL LABS INVITES YOU TO ALWAYS DO YOUR OWN RESEARCH, KEEP YOUR PRIVATE KEYS SAFE, AND CLOSELY ASSESS YOUR RISK TOLERANCE.