Risk & Disclosures

1. Nothing here is financial or investment advice

TradExim operates a technology platform. We do not provide investment, financial, legal, tax or accounting advice, and we do not make personal recommendations. We are not registered as an investment dealer, adviser or portfolio manager, and no communication from us should be read as a recommendation to buy, hold or dispose of anything.

Nothing on the Platform — including listings, descriptions, valuations, dashboards, analytics, charts, illustrative figures, marketing material, or communications from our staff — constitutes advice or an assurance of outcome. We do not assess whether any transaction is suitable or appropriate for you, your objectives, your financial situation, or your risk tolerance.

You are solely responsible for your own decisions. Obtain independent advice from a qualified professional in your jurisdiction before you participate.

2. Tokenized assets are not traditional securities

A token on the e-TradeFTZ platform is a digital record of an interest in, or a claim relating to, specific physical export equipment. It is not a share, bond, unit of a fund, deposit, or any other conventional security, and it does not behave like one.

In particular:

• No issuer covenant. There is no corporate issuer standing behind the token with a balance sheet, audited accounts, continuous disclosure obligations or a prospectus. What you hold is tied to one asset and one transaction chain.
• No shareholder rights. Holding a token does not give you voting rights, dividend entitlements, pre-emption rights, or the statutory protections attaching to shareholders of a company.
• No regulated intermediary protections. Protections that apply when you deal through a registered dealer or exchange — segregation rules, best-execution duties, compensation schemes, complaint escalation to a securities regulator — do not apply here.
• No deposit or investor insurance. Funds and holdings on the Platform are not insured by CDIC, SIPC, FSCS or any equivalent scheme in any jurisdiction.
• Different failure modes. A traditional security fails when the issuer fails. A token can fail because the equipment is misdescribed, the counterparty defaults, a smart contract is defective, a key is lost, or a border is closed — causes with no analogue in conventional markets.

The rights you actually hold are defined by the Platform's Terms of Use and by the documentation for the specific transaction — not by the token record itself. Read that documentation before committing.

3. Regulatory treatment is uncertain and may change

The legal characterization of tokenized real-world assets differs between jurisdictions and is still developing. A regulator in Canada or elsewhere may take the view that some or all activity on the Platform constitutes dealing in securities, derivatives, or a regulated financial service, whether or not that is our view.

If that occurs, the consequences could include restrictions on who may participate, forced changes to the structure of holdings, suspension of transfers, mandatory unwinding of positions, delisting of the Platform in a jurisdiction, or the Platform ceasing to operate there. Any of these could cause you loss or make your holding untransferable.

We make no representation that the Platform, or any transaction on it, is authorized, registered, exempt, or compliant in your jurisdiction. You are responsible for determining whether your participation is lawful where you are and where you do business.

Changes to sanctions, export control, customs, anti-money-laundering or capital-control regimes may prevent a transaction from completing after you have committed to it, and may prevent funds or equipment from moving.

4. Fractional ownership does not create liquidity

Dividing an asset into fractions makes it easier to describe a small position. It does not create a market for that position.

• There is no established secondary market, no market maker, and no guarantee that any buyer will exist at any price when you want to exit.
• Trading, where available, may be thin and sporadic. Prices at which small volumes trade may not reflect what a larger position could realize.
• Transfers may be restricted by lock-up periods, eligibility conditions, counterparty approval requirements, or compliance screening — all of which can delay or block an exit.
• The underlying asset is a single piece of physical equipment. It is inherently indivisible and slow to sell. A fractional holder cannot force a sale of the equipment, and typically cannot redeem a fraction for cash on demand.
• Fractional holders may be a minority alongside larger holders whose interests differ from yours, and decisions about the asset may be made without your agreement.

Assume you may be unable to exit at all. Plan on holding until the underlying transaction runs its course, and treat any earlier exit as a possibility, not an entitlement.

5. Blockchain transactions are generally irreversible

Once a transaction is confirmed on the Platform's blockchain network, it generally cannot be reversed, cancelled, amended, or recalled — by you, by us, or by anyone else. There is no chargeback mechanism and no equivalent of a bank payment recall.

This means that:

• A transfer sent to a wrong or mistyped address is likely to be permanently lost.
• A transfer sent in the wrong amount, or to the wrong counterparty, cannot be pulled back; recovery depends entirely on the recipient's voluntary cooperation.
• A transfer induced by fraud, phishing, or a compromised device will still execute, and will still be final.
• An instruction you submit is your instruction. We are not able to undo it and are not responsible for losses arising from your error.

Verify every address, amount and counterparty before you confirm. Where the Platform offers a confirmation or review step, use it.

6. Smart contract risk

Tokenization, transfer, escrow release and related functions on the Platform are executed by smart contracts — software that runs automatically on the blockchain network. Software contains defects.

• Bugs and logic errors. A contract may behave differently from what its documentation describes, may mishandle an edge case, or may lock funds or tokens in a state from which they cannot be recovered.
• Exploits. A vulnerability may be discovered and exploited by an attacker, potentially resulting in the loss or unauthorized transfer of tokens or funds.
• Audits are not guarantees. Where a contract has been reviewed or audited, that review reduces but does not eliminate risk. Audited contracts have failed before. Where we have not stated that a contract has been independently audited, you should assume it has not been.
• Upgrades and administrative keys. Contracts may include administrative functions — to pause activity, correct an error, freeze an address, or upgrade logic. These functions are necessary to operate a permissioned platform, but they mean that a party holding those keys can affect your holding. Compromise or misuse of an administrative key could cause loss.
• Dependency risk. Contracts may depend on external data sources or other contracts. A failure or manipulation upstream can produce an incorrect result downstream.

Code executes as written, not as intended. Where the behaviour of a contract conflicts with what you expected, the contract's behaviour is what will occur.

7. Wallet and key custody risk

Access to tokens depends on private keys. How those keys are held changes the nature of the risk you carry, and both models carry real risk.

7.1 Custodial wallets — where we hold the keys

If you have not connected your own external wallet, the Platform generates and holds a wallet on your behalf, and TradExim controls the private keys for it. This is provided as an operational convenience so that you can participate without managing keys yourself. You should understand what it means:

• You do not control the keys. Your ability to move or dispose of your tokens depends on the Platform continuing to operate, to hold the keys securely, and to act on your instructions.
• A compromise of our key management systems, or an insider acting improperly, could result in the loss of tokens held in custodial wallets.
• If TradExim becomes insolvent, is wound up, or ceases operations, access to custodially-held tokens may be delayed, disputed, or lost. The legal treatment of custodially-held tokenized assets in an insolvency is unsettled, and you may rank as an unsecured creditor rather than as the owner of an identifiable asset.
• We may be compelled by a court, regulator or authority to freeze, seize or transfer custodially-held assets, and may be prohibited from telling you.
• Custodial holdings are not insured, and are not segregated in the way a regulated custodian's client assets would be, unless we expressly state otherwise in writing.
• We may suspend access to a custodial wallet where required for compliance, security, or under our Terms of Use.

7.2 Self-custody wallets — where you hold the keys

If you connect your own wallet, you alone control the keys, and you alone bear the consequences:

• If you lose your private key, seed phrase, or recovery method, your tokens are permanently unrecoverable. Neither we nor anyone else can restore access.
• If your key is stolen — through malware, phishing, a compromised device, a fraudulent signature request, or a leaked backup — an attacker can move your tokens irreversibly.
• Approving a malicious transaction or granting an unlimited approval to a hostile contract can drain a wallet.
• Wallet software and hardware are third-party products with their own defects and failure modes. We do not control them and are not responsible for them.

Neither model is risk-free. Custodial custody replaces your key-management risk with our operational and insolvency risk. Self-custody removes our insolvency risk but makes every key mistake permanent and final. Choose deliberately.

8. Blockchain network risk

The Platform relies on a permissioned blockchain network. Networks can fail, degrade, or behave unexpectedly.

• Network outages, validator failures, or consensus problems may delay or prevent transactions from being recorded, including during periods when you most want to act.
• Forks, chain reorganizations, or protocol changes may alter transaction history, invalidate records, or require migration of assets.
• Because the network is permissioned, a limited set of operators maintains it. Their failure, withdrawal, coordinated action, or compromise could affect the availability and integrity of the ledger.
• Data written to the ledger is designed to be permanent. Information recorded there — including transaction records and wallet addresses — generally cannot be corrected or erased, even if it was entered in error.
• Cryptographic methods that secure the network today may weaken over time as computing capability advances.

9. Counterparty and settlement risk in cross-border trade

Every transaction on the Platform depends on other parties doing what they agreed to do, across borders, over time. This is the most common way trade transactions produce loss.

• Seller default. An exporter may fail to ship, ship late, ship non-conforming equipment, or ship nothing at all after receiving value. It may become insolvent between commitment and delivery.
• Buyer default. An importer may fail to fund, refuse delivery, dispute the goods, or become insolvent. A refused shipment can leave equipment stranded and incurring cost.
• Guarantor and agency risk. Where a guarantor, export credit agency, or government programme is involved, cover may be conditional, capped, subject to exclusions, or slow to pay. A guarantee may not respond to your particular loss, and the guarantor itself may default or have its mandate changed.
• Escrow and banking chain risk. Escrow depends on banks, correspondent banks, and payment processors. Funds may be delayed, frozen, screened, returned, or deducted at any point in that chain. Compliance holds are routine in cross-border payments and can last a long time. A bank in the chain may itself fail.
• Documentary risk. Trade settlement turns on documents — bills of lading, certificates of origin, inspection certificates, customs declarations. Documents may be incorrect, late, rejected, forged, or lost, and a discrepancy can block release of funds or goods.
• Timing mismatch. Value often moves before goods arrive, or goods move before value clears. Whoever is exposed during that gap carries the risk of the other side failing.
• Enforcement risk. Pursuing a defaulting counterparty across borders is slow, expensive, and frequently uneconomic. A judgment obtained in one jurisdiction may be difficult or impossible to enforce in another.

Verification and approval of a counterparty by TradExim is a screening step, not a guarantee. It does not warrant a counterparty's solvency, capacity, honesty, or continued good standing, and it does not transfer that party's risk to us. TradExim does not guarantee performance, payment, delivery, or title in any transaction.

10. Equipment and valuation risk

Listing information is supplied by sellers. Unless the listing expressly states that an independent appraisal or inspection has been performed and identifies who performed it, no independent appraisal or inspection has been performed.

• Descriptions, specifications, condition statements, hours of use, service history, photographs and stated values are the seller's representations. We do not verify them.
• A stated valuation is the seller's figure. It may be optimistic, stale, based on replacement cost rather than realizable value, or simply wrong. It is not a price at which the equipment can be sold, and not a price at which your interest can be exited.
• Equipment values move with commodity cycles, industry demand, technological obsolescence, model supersession, and the availability of parts and service. Specialized equipment can lose most of its value quickly when demand in its sector falls.
• Used industrial equipment often carries defects that are not apparent from documentation or photographs, and that only emerge on inspection or in operation.
• Where an appraisal has been obtained, it is an opinion at a point in time, prepared on stated assumptions, for a stated purpose. It is not a guarantee of value and may not be relied on as one.
• Any yield, return, appreciation or resale figure shown on the Platform is illustrative only, is frequently derived from seller-supplied inputs, and is not a forecast or promise.

Conduct your own due diligence. Where the amount at stake justifies it, commission your own inspection and appraisal before committing.

11. Physical asset, title and insurance risk

• Loss or damage. Equipment can be damaged, destroyed, lost at sea, stolen, or degraded in transit or storage. Insurance may be absent, insufficient, subject to exclusions, or slow to pay, and a claim may be denied.
• Title defects. A seller may not hold clear title. Undisclosed liens, security interests, retention-of-title clauses, leases or third-party claims may exist and may survive a transfer. Title registries for movable equipment are incomplete and vary by jurisdiction.
• Possession is not on-chain. A token record does not physically secure the equipment. Where legal title, possession, and the token record diverge, resolving that divergence depends on courts and law in the relevant jurisdiction — not on the ledger.
• Custody and storage. Equipment held pending shipment or resale incurs storage, maintenance and demurrage costs, and may deteriorate.
• Regulatory seizure. Equipment can be detained or confiscated by customs or other authorities for licensing, sanctions, safety or documentation reasons.

12. Cross-border, political and legal risk

Transactions span multiple legal systems. Risks include changes in export or import licensing, imposition of tariffs or quotas, new sanctions designations affecting a counterparty or a route, expropriation, civil unrest, war, port closures and strikes, corruption and demands for improper payments, capital controls restricting the movement of funds out of a jurisdiction, and the practical difficulty of obtaining and enforcing legal remedies abroad.

Any of these can prevent a transaction from completing after you are committed, strand goods or funds, or extinguish the economic value of a position.

13. Currency and payment risk

Transactions may involve more than one currency. Exchange rates move, sometimes sharply, between commitment and settlement, and can materially change what you receive. Conversion spreads, correspondent bank charges, and intermediary deductions reduce net proceeds and are not always visible in advance. Where any digital asset or stablecoin is used in a payment leg, it carries its own volatility, redemption, reserve and depegging risks, which are outside our control.

14. Platform and operational risk

• The Platform may be unavailable due to maintenance, outage, cloud provider failure, or attack, potentially at a moment when you need to act. There is no guarantee of continuous access.
• Data displayed may be delayed, incomplete or incorrect, including holdings, valuations and statuses.
• Despite our security measures, the Platform may be subject to unauthorized access, and information or assets could be compromised.
• TradExim is an early-stage business. It may fail to secure funding, may restructure, may discontinue features, or may cease operations. If it does, the Platform's tools for viewing, transferring and exiting positions may become unavailable, and there is no assurance an orderly wind-down would preserve the value of your holding.
• The Platform depends on third parties — cloud hosting, verification providers, payment processors, wallet software, blockchain operators. A failure at any of them can interrupt or defeat a transaction.

15. Conflicts of interest

TradExim earns revenue from activity on the Platform. That creates an incentive for transactions to occur, which may not always align with the interests of any individual participant. We may also have commercial relationships with sellers, guarantors, agencies, or service providers whose listings or services appear on the Platform, and the order or prominence in which listings appear does not indicate quality, endorsement, or suitability. We do not act as your agent or fiduciary, and we are not obliged to prioritize your interests over our own or over another participant's.

16. Projections, illustrations and past performance

Any forward-looking statement on the Platform — expected returns, timelines, throughput, demand, resale values — is an estimate based on assumptions that may prove wrong. Illustrative or sample figures shown in demonstrations, marketing material or dashboards are for explanation only and do not represent actual or achievable results.

Past performance is not indicative of future results. A prior transaction settling successfully says nothing about whether the next one will.

17. Tax

The tax treatment of tokenized asset holdings, cross-border trade income, and disposals varies by jurisdiction and by your circumstances, and is unsettled in many places. You are solely responsible for determining, reporting and paying any tax, duty, levy or withholding arising from your activity, and for any penalties or interest for failing to do so. We do not provide tax advice and do not calculate your tax position for you. Obtain independent tax advice.

18. Suitability and the possibility of total loss

Participation may be unsuitable for you. It is likely to be unsuitable if you need access to your funds at a predictable time, if you cannot bear the loss of the entire amount committed, if you do not understand blockchain-based holdings or cross-border trade settlement, or if the amount would represent a large share of your available capital.

Consider committing only what you can afford to lose completely, diversifying rather than concentrating in a single asset or counterparty, and taking independent advice before proceeding.

There is no guarantee of return of capital, no guarantee of any return, and no guarantee that you will be able to exit a position at any time or at any price.

19. Your acknowledgement

By using the Platform and by committing to any transaction on it, you acknowledge and agree that you have read and understood this statement; that you are participating at your own risk and on your own judgement; that you are not relying on TradExim or its personnel for advice, valuation, or assurance of outcome; that you accept the possibility of total loss; and that you meet the eligibility requirements in our Terms of Use.

This statement should be read together with the Terms of Use — in particular the sections on our role, disclaimer of warranties, and limitation of liability — and the Privacy Policy. It does not limit any liability that cannot be limited under applicable law, and nothing in it is intended to exclude liability for fraud or fraudulent misrepresentation.

20. Questions

If anything in this statement is unclear, ask us before you participate:

• Email: info@e-tradeftz.com
• Mail: TradExim, 270 George St. N, Peterborough, Ontario, K9J 3H1, Canada.

We can explain how the Platform works. We cannot tell you whether a transaction is right for you — that requires an independent adviser who knows your circumstances.