CRYPTO HEARTS LLC RISK DISCLOSURE STATEMENT

Last Updated: August 29, 2026

Effective Date: August 29, 2026

IMPORTANT: PLEASE READ THIS ENTIRE RISK DISCLOSURE CAREFULLY BEFORE USING HEART.FI.

Stablecoins, blockchain networks, and custodial accounts involve significant risks. This Risk Disclosure Statement supplements our Terms of Service and is designed to help you understand the material risks of using the Heart.Fi platform.

THE SINGLE MOST IMPORTANT THING TO UNDERSTAND: Heart.Fi wallets are custodial. Your balance is held by a third-party custody partner, not by you. You hold a claim against that partner, not keys to an on-chain wallet. If that partner fails, freezes your account, or loses your funds, you may lose access to some or all of your balance and your recourse may be limited. This is a different risk from the one you take when you hold your own keys — Section 3 covers it.

BY USING OUR PLATFORM, YOU ACKNOWLEDGE THAT YOU HAVE READ, UNDERSTOOD, AND ACCEPTED THESE RISKS.

Price Fluctuations: The value of digital assets can change dramatically within short periods. The value of assets you send or receive may:

• Decrease significantly between transaction initiation and confirmation
• Lose a large share of its value in a single day
• Become worthless entirely

No Guaranteed Value: Digital assets have no government backing and no guaranteed value. Market sentiment, speculation, and external events can cause unpredictable price movements.

Fiat exposure: Even if you hold a stablecoin nominally pegged to the U.S. dollar, its value in your local currency moves with the USD exchange rate, and the rate you receive on conversion includes a spread.

Illiquidity: Some assets may have limited trading markets. You may be unable to convert or withdraw at a desired price or at all.

Irreversibility: BLOCKCHAIN TRANSACTIONS ARE PERMANENT AND IRREVERSIBLE. Once a transaction is confirmed:

• It cannot be reversed, cancelled, or modified
• Neither Heart.Fi nor our custody partner can recover sent funds
• No third party can undo the transaction
• Sending to an incorrect address results in permanent loss

Wrong network, wrong asset: Sending an asset to a Heart.Fi address on a network we do not support, or sending an unsupported token, may result in permanent loss. We have no obligation to attempt recovery and often cannot.

Instructions are final. Once you confirm a transfer, donation, conversion, or withdrawal, it cannot be recalled.

Transaction Failures: Transactions may fail due to:

• Insufficient network fees
• Network congestion
• Smart contract errors
• Wallet software issues
• User error
• A compliance hold or a decline by our custody partner

Even failed transactions may consume network fees. You are responsible for these fees regardless of outcome.

Delayed Transactions: Confirmation times vary with network conditions. During congestion, or while a compliance review is open, transactions may take hours or days, remain pending indefinitely, or fail after an extended period.

Your Heart.Fi balance is held by a third party.

When you complete identity verification, we instruct our custody partner ("Custody Partner") to open stablecoin wallets for you. Those wallets belong to, and are operated by, the Custody Partner.

What you actually hold. You hold a contractual claim on the Custody Partner, exercised through your Heart.Fi account. You do not hold private keys, you cannot export a seed phrase, and you cannot move funds independently of the Platform.

Counterparty and insolvency risk. If the Custody Partner, one of its banking partners, or a stablecoin issuer in the chain becomes insolvent, is placed into administration or receivership, is suspended by a regulator, or loses a licence:

• Your funds may be frozen for an extended period
• You may recover less than your full balance, or nothing
• You may rank as an unsecured creditor in an insolvency
• Recovery could take years, or fail entirely
• The outcome depends on the law of the jurisdiction where the partner is organized, not necessarily on yours

Segregation is not a guarantee. Customer funds are required to be held separately from a partner's operating funds. Segregation reduces, but does not eliminate, the risk of loss in an insolvency, a fraud, or an operational failure.

Freezing and seizure. Your balance may be frozen, held, reversed, or turned over — with or without notice to you — because of:

• Legal process, a court order, or a law enforcement demand
• Sanctions obligations
• Suspected fraud, money laundering, or breach of our Acceptable Use Policy
• A compliance decision by the Custody Partner that we cannot override
• A stablecoin issuer blacklisting an address that holds your funds

Operational dependency. If we or the Custody Partner suffer an outage, lose access to a network, terminate the partnership, or stop serving your jurisdiction, you may be unable to access or move your funds until the issue is resolved, and a migration may require you to verify your identity again.

Loss of account access. Because the wallet is custodial, losing your password does not by itself lose your funds — but regaining access requires re-verifying your identity to our and the Custody Partner's satisfaction. If you cannot, or if your account is closed for a compliance reason, you may be unable to reach your balance.

We are not the custodian, and our liability is capped. Crypto Hearts LLC does not hold your funds. Our liability for losses, including losses caused by the Custody Partner, is limited by Section 14 of the Terms of Service — in most cases to the greater of the fees you paid us in the preceding twelve months or one hundred U.S. dollars.

Balances on Heart.Fi are held in stablecoins — tokens whose issuers aim to maintain a fixed value against a fiat currency, usually the U.S. dollar.

A stablecoin is not a dollar, and not legal tender. It is a liability of a private issuer. Its value depends entirely on that issuer's reserves, solvency, and willingness and ability to redeem.

Depeg risk. A stablecoin can trade below its intended value, briefly or permanently, because of:

• Reserve shortfalls, mismanagement, or fraud
• The failure of a bank holding the issuer's reserves
• Loss of market confidence or a redemption run
• Loss of liquidity on the venues where it trades

Issuer action against you. Stablecoin issuers can freeze or blacklist specific addresses, including an address holding your balance, at their own discretion or on legal instruction. Neither Heart.Fi nor the Custody Partner can reverse that.

Redemption. You generally cannot redeem a stablecoin directly with its issuer. Your ability to convert to fiat depends on the Custody Partner and its banking partners continuing to offer that service in your jurisdiction.

Regulatory change. Stablecoin regulation is evolving quickly. New rules could restrict which stablecoins are available to you, force a migration to a different asset, or make a stablecoin unavailable in your jurisdiction.

Where fiat deposits and withdrawals are available, they are operated by our Custody Partner and its licensed affiliates and banking partners.

A virtual account is not a Heart.Fi bank account. Crypto Hearts LLC is not a bank and does not hold deposits.

Not FDIC-insured. Your Heart.Fi balance is not FDIC-insured. Any pass-through deposit insurance that may apply to fiat sitting at a banking partner protects only against the failure of that specific bank, is subject to that bank's conditions and to correct recordkeeping, and does not protect against the failure of the Custody Partner, a stablecoin depegging, or loss of your Heart.Fi balance.

Returns and reversals. A bank or payment network can return or recall a deposit after it has been credited to you — for example an ACH return. Your balance will be debited for the returned amount and associated costs, and you owe any shortfall.

Third-party deposits. Deposits from an account not in your own name may be rejected, returned, or held for compliance review.

Incorrect details. If you supply incorrect bank details for a withdrawal, the payment may fail, be delayed, or reach the wrong recipient, and recovery may be impossible.

Timing. Deposits and withdrawals are subject to banking cut-off times, settlement periods, holidays, and compliance review. We do not guarantee timing.

Conversion cost. Every fiat conversion carries a spread built into the quoted rate, in addition to any stated fee. Rates displayed elsewhere in the Platform are indicative only.

Verification is mandatory for holding a balance, receiving donations, or moving funds. It carries its own risks.

You may fail. Verification can fail because of a document our provider cannot read, a name mismatch, a jurisdiction we cannot serve, a screening match, or a decision by our Custody Partner. If you fail:

• You cannot open custodial wallets or use fiat rails
• A campaign you planned may be unable to accept funds
• Where lawful and possible, we will help you withdraw an existing balance; where the law prohibits returning funds, we cannot

Automated decisions. Verification, sanctions screening, and transaction monitoring are partly automated and can produce false positives. You can request human review (see the Privacy Policy), but some decisions cannot be explained or overridden because the law prohibits it.

Loss of access mid-relationship. We and our partners may re-verify you at any time. If you cannot complete re-verification — for example because your documents have expired or you have moved to an unsupported jurisdiction — your account may be limited or closed.

Sensitive data. Verification requires you to hand over government identity documents and a biometric liveness check to us and our partners. Any organization holding such data is a target for attackers. See the Privacy Policy for how it is handled, shared, and retained.

Hacking and Theft: Digital assets are an attractive target. Risks include:

• Breaches at platforms, custodians, and their vendors
• Account takeover through phishing and social engineering
• SIM swapping attacks
• Malware and keyloggers
• Credential reuse across services
• Physical theft of devices

Account takeover. Because your Heart.Fi wallet is custodial, someone who gains control of your account — your email, your password, your second factor — may be able to move your funds. Protecting your account credentials is protecting your money.

Smart Contract Vulnerabilities: Smart contracts, including stablecoin contracts, may contain programming errors, security vulnerabilities, exploitable design flaws, or unintended behaviors. Smart contracts generally cannot be modified after deployment. Bugs may result in permanent loss of funds. Audits reduce but do not eliminate risk.

Third-Party Risk: Our Platform relies on third parties — the Custody Partner, banking partners, identity verification providers, blockchain infrastructure — that may experience security breaches, service outages, data loss, or discontinuation of service.

Evolving Regulations: Rules governing stablecoins, custody, and cross-border transfers vary by jurisdiction and are changing rapidly. Future changes could:

• Prohibit or restrict transactions in your jurisdiction
• Require additional identity disclosure
• Impose new taxes or reporting requirements
• Restrict cross-border transfers
• Force us or our partners to stop serving you

Uncertain Legal Status: Legal classification varies globally. In some jurisdictions the assets may be banned or restricted, tax treatment may be unclear, consumer protections may not apply, and legal recourse may be limited.

Reporting. We and our partners may be required to report information about you and your transactions to tax authorities, financial intelligence units, and regulators — sometimes without being permitted to tell you.

Charitable solicitation. If you run a campaign, fundraising may be a regulated activity where you or your donors are located, requiring registration or disclosures. That obligation is yours, not ours.

Compliance Obligations: You are responsible for understanding and complying with laws applicable to you, including tax reporting and payment, anti-money-laundering requirements, securities regulation, and sanctions.

Network Risks: Blockchain networks may experience:

• Network attacks (51% attacks, spam attacks)
• Consensus failures
• Protocol bugs
• Hard forks creating competing chains
• Validator centralization

Newer or less established networks carry materially higher risk of outage, reorganization, and attack than mature ones.

Protocol Changes: Protocols may undergo changes that affect transaction processing, change fee structures, modify security assumptions, create or destroy assets, or render existing software incompatible.

Interoperability Risks: Multi-chain operation involves bridge vulnerabilities, cross-chain transaction failures, incompatible standards, and oracle failures.

Platform software. The Heart.Fi applications and the systems of our partners may contain bugs that cause incorrect balances to be displayed, transactions to be delayed or duplicated, or service to be interrupted. A displayed balance is an indication, not a guarantee.

No Government Insurance: Your Heart.Fi balance is NOT protected by:

• The Federal Deposit Insurance Corporation (FDIC)
• The Securities Investor Protection Corporation (SIPC)
• Any government insurance or compensation scheme
• Any central bank guarantee

The limited exception is described in Section 5: pass-through deposit insurance may apply to fiat sitting at a banking partner, protecting only against that bank's failure, and not against the failure of the Custody Partner, a stablecoin depeg, or loss of your balance.

Unlike a bank deposit, there is no safety net.

Limited Legal Recourse:

• The entity actually holding your funds may be organized in a jurisdiction far from yours
• Jurisdiction and applicable law may be unclear
• Enforcement of judgments may be impractical
• Recovery of lost funds may be infeasible
• Our own liability to you is contractually capped (see Section 14 of the Terms of Service)

No Guarantee of Use: When you donate:

• We verify a campaign creator's identity, not the truth of their story
• We do not verify how recipients use funds
• Recipients may use donations differently than stated
• Charitable status claims may be false
• Donations are final — you have no refund right and no recourse through us if funds are misused

Fraud. Fundraising platforms attract fraudulent campaigns. Identity verification raises the cost of fraud; it does not eliminate it. Do your own due diligence before donating, especially for large amounts.

Tax Implications:

• Donations to individuals are generally NOT tax-deductible
• Only donations to organizations that independently qualify may be deductible
• You may owe tax on appreciated assets you donate
• Recipients may owe income tax on what they receive
• Tax treatment varies by jurisdiction
• Consult a tax professional about your situation

Recipient Risks: Recipients may convert donations at unfavorable rates, lose funds through their own security failures, fail identity verification and be unable to withdraw, or face regulatory restrictions on receiving funds in their jurisdiction.

Publicity. Depending on your visibility settings, your display name and donation may be publicly visible on a campaign page, and the underlying transaction is publicly visible on-chain.

Not Financial Advice: Heart.Fi does not provide financial, investment, tax, or legal advice. We do not recommend specific assets, guarantee returns, advise on tax treatment, or provide legal guidance. Nothing on the Platform is a solicitation to invest.

Not a bank, not a charity. Crypto Hearts LLC is not a bank, a money services business, a money transmitter, a broker-dealer, an investment adviser, or a registered charity. We do not hold your funds and we do not administer any charitable fund.

Platform Availability: We do not guarantee uninterrupted service. The Platform may be unavailable due to maintenance, technical issues, cyber attacks, partner outages, regulatory action, or force majeure.

Feature availability varies. Custodial wallets, fiat deposits, fiat withdrawals, and supported currencies differ by jurisdiction and by your verification outcome, and may be withdrawn at any time.

Limited Liability: As stated in our Terms of Service, our liability is significantly limited. You may be unable to recover losses from Crypto Hearts LLC.

By using the Platform, you represent that:

1. You have read and understood this Risk Disclosure Statement
2. You understand that Heart.Fi wallets are custodial and that you do not hold the keys to them
3. You understand that your balance is a claim against a third-party custody partner and is not insured
4. You understand that stablecoins can lose their peg and that issuers can freeze funds
5. You understand that blockchain transactions are irreversible and that donations are final
6. You have the financial ability to bear potential losses
7. You will not risk more than you can afford to lose
8. You accept sole responsibility for your transactions
9. You will conduct your own research before transacting or donating
10. You understand that Heart.Fi cannot guarantee protection against losses

BY USING THE HEART.FI PLATFORM, YOU ACKNOWLEDGE AND AGREE THAT:

• You have read this entire Risk Disclosure Statement
• You understand the risks described here, including custodial, stablecoin, fiat, and verification risk
• You accept these risks voluntarily
• You will not hold Crypto Hearts LLC responsible for losses resulting from these risks
• You have sought independent professional advice where appropriate

If you do not understand or accept these risks, do not use the Platform.