Platform

Components

Q: Where is OTCOTCM Meme CorpProtocol located?

A:

🏢 Corporate Headquarters:

Headquarters

OTCM Protocol, Inc.
(Wyoming Digital Asset Corporation)

Registered Agent:
Wyoming Registered Agent LLC
1712 Pioneer Ave, Suite 500
Cheyenne, WY 82001

General Inquiries: info@otcm.io
Issuer Relations: issuers@otcm.io
Compliance: compliance@otcm.io
Legal: legal@otcm.io

🌐 Online Presence

Q: Why did the company change from OTC Meme Corp. 240to VaughnOTCM Dr,Protocol, SteInc.?

A: Alpharetta,The GArebranding 30009reflects Email:our support@otc.evolution from a meme

Why Wyoming?

💰 BusinessBUSINESS ModelMODEL & Revenue

Q: How does OTCOTCM MemeProtocol make money?

A: Revenue from transaction fees only:on ST22 Tokenized Securities trading:

💡

Revenue Sources:

Sources

on companyinitialpurchases)

Source	Description
💱 Trading Fees	4% of every ST22 transaction
🪙 everyMinting tradeFees	$1,000 - $25,000 per tokenization (includingtiered)
🏦 OTCM Utility Token Staking	Protocol fees fund staking rewards

Fee Distribution

┌─────────────────────────────────────────────────────────────┐
│                    FEE DISTRIBUTION                          │
├─────────────────────────────────────────────────────────────┤
│                                                               │
│  Transaction: $10,000 ST22 Trade                             │
│                                                               │
│  Total Fee: 5.0% = $500                                      │
│                                                               │
│  ┌─────────────────────────────────────────────────────┐    │
│  │ OTCM Protocol Treasury: 4.0% = $400                 │    │
│  │ ├── Protocol Operations: 40%    = $160              │    │
│  │ ├── OTCM Staking Rewards: 30%   = $120              │    │
│  │ ├── Development Fund: 20%       = $80               │    │
│  │ └── Insurance Reserve: 10%      = $40               │    │
│  └─────────────────────────────────────────────────────┘    │
│                                                               │
│  ┌─────────────────────────────────────────────────────┐    │
│  │ Issuer Revenue: 1.0% = $100                         │    │
│  │ └── Paid directly to issuer wallet                  │    │
│  └─────────────────────────────────────────────────────┘    │
│                                                               │
└─────────────────────────────────────────────────────────────┘

What We Don't Charge

coststocompaniesor traders
• 📈
revenuemodel

Item	Cost
🚫 NoPlatform upfrontAccess	Free
🚫 Volume-basedWallet Creation	Free
🚫 KYC Verification	Free
🚫 Monthly Fees	None
🚫 Listing Fees	None (beyond minting fee)

---

Q: What's the OTCM tokenUtility utility?

Token?

A: OTCM is our platform utility token: — completely separate from ST22 Tokenized Securities:

// OTCM utilityUtility Token features
pub struct OTCMUtilityOTCMUtilityToken {
    // Token Classification ⚖️
    pub classification: TokenClassification {
        token_type: "Utility Token",
        is_security: false,           // NOT a security
        asset_backing: None,          // NO asset backing
        regulatory_status: "Utility token, not covered by Category 1"
    },

    // Governance featuresFeatures 🗳️
    pub governance: GovernanceRights {
        voting: "Protocol upgradesparameter and parameters"changes",
        proposals: "Submit improvement proposals",
        dao_participation: "Community decisiongovernance",
        making"weight: "Voting power proportional to staked OTCM"
    },

    // Economic benefitsBenefits 💰
    pub economics: EconomicBenefits {
        fee_discounts: "Reduced10-50% trading feesfee whendiscounts staked"based on stake tier",
        staking_rewards: "Revenue8-40% sharingAPY forfrom stakers"protocol fee revenue",
        priority_access: "Early access to new ST22 launches",
        validator_rewards:enhanced_limits: "NodeHigher operationtransaction earnings"limits for stakers"
    },

    // Platform accessAccess 🔓
    pub access: PlatformAccess {
        advanced_features:premium_features: "PremiumAdvanced trading tools",
        api_access: "Developer integration"API access",
        institutional_tools:analytics: "Professional-grade market analytics",
        support: "Priority customer support"
    }
}

OTCM

vs.




ST22:

Critical

Distinction

Factor	OTCM Utility Token	ST22 Tokenized Securities
⚖️ Classification	Utility Token	Securities
💎 Asset Backing	None	1:1 Preferred Series "M" shares
🏦 Custody	User wallets	Empire Stock Transfer
🎖️ Investor Restrictions	None	Accredited investors only
📜 Regulatory Framework	Utility token analysis	SEC Category 1
🔧 Primary Function	Governance, fees, staking	Equity ownership

⚠️ Critical: The OTCM Utility Token is NOT a security and has NO asset backing. It should not be confused with ST22 Tokenized Securities.

---

Q: How is OTCOTCM MemeProtocol different from pump.fun or other platforms?

A: KeyFundamental differentiators:differences in regulatory approach, asset backing, and target market:

Comparison Table

framework

Feature	pump.fun	Other Meme Platforms	OTCOTCM MemeProtocol
⚖️ Regulatory Status	Unregulated	Varies	SEC Category 1 Compliant
💎 Asset Backing	None	SpeculativeNone	✅ 1:1 realReal sharesPreferred Shares
🏦 Custody	None	None	SEC-Registered Transfer Agent
📜 Token Classification	Meme coins	Meme coins	Securities (acknowledged)
🔒 Share Permanence	N/A	NoneN/A	✅Irrevocable SEC-registeredcustody partnerdeposit
🏢 PermanenceIssuer Participation	TemporaryOptional	WithdrawableOptional	✅Required Permanent(40%+ depositscommitment)
🎯 CompaniesFocus	NoPure participationspeculation	OptionalGeneral memes	✅Illiquid Requiredsecurities commitmentliquidity
🛡️ FocusSecurity Controls	Pure memesMinimal	General tokensMinimal	✅42 DormantTransfer OTCHook securitiescontrols
🎖️ ComplianceInvestor Requirements	MinimalNone	VariesNone	✅Accredited investors only
🔄 "HoweyConversion Shield"Rights	None	None	Convertible to common stock
🏛️ Institutional Ready	No	No	Yes

Why These Differences Matter

OTCM Protocol Advantage	Benefit
⚖️ Category 1 Compliance	Regulatory clarity enables institutional participation
💎 Real Asset Backing	Tokens represent actual equity, not speculation
🏦 Qualified Custody	Investor assets protected by SEC-registered custodian
🛡️ Transfer Hook Controls	Mathematical security prevents rugpulls, manipulation
🎖️ Accredited Investors	Sophisticated investors who understand risks
🔄 Protective Conversion	Token holders protected in adverse scenarios

Target Market Comparison

Platform Type	Target Market	Value Proposition
🎭 Meme Platforms	Retail speculators	Entertainment, viral potential
💱 DEXs	Crypto traders	Decentralization, liquidity
🏦 Traditional Markets	Institutional investors	Regulatory compliance, depth
🎯 OTCM Protocol	Trapped shareholders	Liquidity for illiquid securities

💡 Our Unique Value: OTCM Protocol serves ~$50 billion in trapped shareholder value across companies that lost 15c2-11 eligibility, grey market securities, and illiquid OTC stocks. We're not competing with meme platforms — we're solving a real liquidity problem.

---

⚖️ LegalLEGAL & Compliance

COMPLIANCE

Q: How does OTCOTCM MemeProtocol avoidcomply with securities law violations?

laws?

A: OurWe operate under the "HoweySEC Shield"Category 1 (Issuer-Sponsored Tokenized Securities) framework ensuresestablished tokensby aren'tthe securities:January 28, 2026 Joint Statement:

// HoweySEC ShieldCategory implementation1 Compliance Framework
class HoweyShieldFrameworkCategory1Compliance {
  // EliminatesRegulatory securitiesPosition classification 🛡🏛️
  protectionsposition = {
    // NoST22 expectationtokens ofARE profitssecurities
    from company efforts
    profitExpectation: {
      source:classification: "TradingSecurities activity,under notfederal companysecurities performance"laws",
    company:framework: "CannotSEC influenceCategory token1 price"(Issuer-Sponsored Tokenized Securities)",
    value:offering: "Market-drivenRegulation priceD discovery"Rule 506(c) exempt offerings",
    investors: "Accredited investors only (verified)"
  },;

  // PermanentSeven shareCategory lockup1 preventsRequirements manipulation✅
  manipulation:requirements = {
    prevention:directIssuerAuthorization: "CompaniesBoard cannotresolution accessrequired",
    officialShareholderRegister: "Certificate of Designation filed",
    regulatedCustody: "Empire Stock Transfer (SEC-registered)",
    trueEquityBacking: "1:1 Preferred Series M shares",
    permanence:clearOwnershipChain: "IrrevocableCUSIP deposit+ structure"Golden Medallion Guarantee",
    independence:investorProtection: "Token42 valueTransfer independentHook ofcontrols",
    company"tokenStandardCompliance: "SPL Token-2022 with Transfer Hooks"
  },;

  // Compliance withInfrastructure SEC🛡️
  guidanceinfrastructure secGuidance:= {
    framework:kycAml: "FebruaryFull 2025Bank memeSecrecy coinAct guidance"compliance",
    utility:accreditation: "ClearSEC utilityRule token501 characteristics"verification required",
    decentralization:ofacScreening: "NoReal-time centralsanctions controlscreening",
    post-launch"recordKeeping: }"7-year transaction record retention",
    transferHooks: "42 mathematically-enforced controls"
  };
}

Why

We




Embrace

Securities

Classification

Old Approach (Rejected)	New Approach (Adopted)
❌ "Howey Shield" avoidance	✅ SEC Category 1 compliance
❌ Claim tokens aren't securities	✅ Acknowledge tokens ARE securities
❌ Untested legal theories	✅ Established SEC framework
❌ Regulatory uncertainty	✅ Regulatory clarity
❌ Institutional exclusion	✅ Institutional participation enabled

Compliance Advantage

Benefit	Description
⚖️ Regulatory Clarity	Operating within clear SEC framework
🏦 Institutional Access	Category 1 compliance enables institutional participation
🛡️ Investor Protection	Full securities law protections apply
📊 Market Credibility	Securities market legitimacy
🔒 Enforcement Protection	Good faith compliance reduces enforcement risk

---

Q: What is the "Howey Shield" and why don't you use it anymore?

A: The "Howey Shield" was our former approach (now deprecated) that attempted to structure tokens to avoid securities classification:

Why We Abandoned the Howey Shield

Howey Shield Problem	Category 1 Solution
❌ Untested legal theory	✅ SEC-endorsed framework
❌ Subject to enforcement risk	✅ Clear compliance pathway
❌ Institutional investors excluded	✅ Institutions can participate
❌ "Meme token" perception	✅ Securities market credibility
❌ Regulatory arbitrage	✅ Regulatory compliance
❌ Limited legal standing	✅ Established securities law

Strategic Evolution

REGULATORY STRATEGY EVOLUTION
─────────────────────────────

2024-2025: "Howey Shield" Approach (DEPRECATED)
├── Goal: Avoid securities classification
├── Method: Structure tokens to "fail" Howey test
├── Risk: Untested, subject to SEC enforcement
└── Status: ABANDONED

2026+: SEC Category 1 Compliance (CURRENT)
├── Goal: Operate as compliant securities
├── Method: Satisfy all Category 1 requirements
├── Benefit: Regulatory clarity, institutional access
└── Status: ACTIVE

💡 Key Insight: The January 28, 2026 SEC Joint Statement provided a clear, compliant pathway that is superior to attempting to engineer around securities laws.

---

Q: What happens if regulations change?

A: Built-inOTCM flexibility:Protocol is built with regulatory adaptability:

Regulatory

🔧Change PlatformPreparedness

canadapttonewrequirements
• 🏦
Existingtokensremainbacked

Scenario	Response
📜 byCategory real1 sharesFormalized	Already compliant; continue operations
⚖️ New SEC Rulemaking	Adapt Transfer Hooks and procedures
🏛️ Congressional Legislation	Framework designed for flexibility
🌍 International Expansion	Multi-jurisdiction compliance frameworkarchitecture

Built-In Protections

Protection	Description
🏦 Custody Independence	Shares safe at Empire regardless of OTCM status
🔄 Protective Conversion	Token holders can convert to common stock
📜 Legal Documentation	Tripartite Agreement addresses regulatory changes
💰 LegalCompliance reservesReserves	Reserves maintained for regulatory adaptation
🔧 Upgradeable Controls	Transfer Hooks can be updated for new requirements

What Doesn't Change

Permanent Feature	Reason
💎 1:1 Backing	Fundamental to value proposition
🏦 Qualified Custody	Required for Category 1
🔒 Irrevocable Deposit	Core investor protection
🔄 Conversion Rights	Protected by Certificate of Designation

---

Q: Is OTCM Protocol registered as a securities exchange?

A: No. OTCM Protocol operates CEDEX (Compliant Exchange for Digital Securities) as a technology platform, not a registered securities exchange:

Regulatory Status

Registration	Status	Notes
📜 Securities Exchange	Not registered	Not operating as national securities exchange
💼 Broker-Dealer	Not registered	Not effecting transactions for others
📊 Investment Advisor	Not registered	Not providing investment advice
🏦 Transfer Agent	Not registered	Empire Stock Transfer provides this service
💵 Money Transmitter	Analyzed per state	Digital asset, not money transmission

How CEDEX Operates

Function	Description	Regulatory Basis
💱 Trading Venue	Provides technology for ST22 trading	Technology platform
🔐 Transfer Hooks	Enforces compliance on transactions	Smart contract infrastructure
📊 Price Discovery	Bonding curve and order matching	Algorithmic matching
🛡️ Compliance	KYC/AML/accreditation verification	Service provider

Regulatory Considerations

Consideration	Analysis
⚖️ ATS Registration	Under analysis; may seek ATS registration
🏛️ SEC Guidance	Monitoring for additional guidance on tokenized securities trading
📜 State Requirements	Compliance with applicable state laws
🌍 International	Jurisdiction-specific analysis

⚠️ Disclaimer: Regulatory classifications are subject to SEC interpretation. OTCM Protocol maintains dialogue with regulatory counsel and monitors developments.

---

🛡️ SECURITY & TECHNOLOGY

Q: What are Transfer Hooks and how do they protect investors?

A: Transfer Hooks are 42 mathematically-enforced security controls that execute on every ST22 transaction:

How Transfer Hooks Work

┌─────────────────────────────────────────────────────────────┐
│                 TRANSFER HOOK EXECUTION                      │
├─────────────────────────────────────────────────────────────┤
│                                                               │
│  User Initiates ST22 Transfer                                │
│            │                                                  │
│            ▼                                                  │
│  ┌─────────────────────────────────────────────────────┐    │
│  │           TRANSFER HOOK CHECKS                       │    │
│  │  ┌─────────────────────────────────────────────┐    │    │
│  │  │ 🏦 Custody Verification (6 controls)        │    │    │
│  │  │    • 1:1 backing confirmed                  │    │    │
│  │  │    • Empire Stock Transfer status OK        │    │    │
│  │  └─────────────────────────────────────────────┘    │    │
│  │  ┌─────────────────────────────────────────────┐    │    │
│  │  │ 🪪 Investor Verification (8 controls)       │    │    │
│  │  │    • KYC status verified                    │    │    │
│  │  │    • Accredited investor status confirmed   │    │    │
│  │  └─────────────────────────────────────────────┘    │    │
│  │  ┌─────────────────────────────────────────────┐    │    │
│  │  │ 🚫 OFAC Screening (5 controls)              │    │    │
│  │  │    • Sender not sanctioned                  │    │    │
│  │  │    • Receiver not sanctioned                │    │    │
│  │  └─────────────────────────────────────────────┘    │    │
│  │  ┌─────────────────────────────────────────────┐    │    │
│  │  │ 📊 Position Limits (5 controls)             │    │    │
│  │  │    • Receiver won't exceed 4.99%            │    │    │
│  │  └─────────────────────────────────────────────┘    │    │
│  │  ┌─────────────────────────────────────────────┐    │    │
│  │  │ 🔴 Circuit Breakers (4 controls)            │    │    │
│  │  │    • No 30%+ price drop                     │    │    │
│  │  └─────────────────────────────────────────────┘    │    │
│  │  ┌─────────────────────────────────────────────┐    │    │
│  │  │ ⏰ Vesting (6 controls)                     │    │    │
│  │  │    • Tokens vested and transferable         │    │    │
│  │  └─────────────────────────────────────────────┘    │    │
│  │  ┌─────────────────────────────────────────────┐    │    │
│  │  │ 🔄 Protective Conversion (4 controls)       │    │    │
│  │  │    • No adverse trigger events              │    │    │
│  │  └─────────────────────────────────────────────┘    │    │
│  │  ┌─────────────────────────────────────────────┐    │    │
│  │  │ 📋 Record Keeping (4 controls)              │    │    │
│  │  │    • Audit trail updated                    │    │    │
│  │  └─────────────────────────────────────────────┘    │    │
│  └─────────────────────────────────────────────────────┘    │
│            │                                                  │
│       All Pass?                                              │
│       /        \                                             │
│     Yes         No                                           │
│      │           │                                           │
│      ▼           ▼                                           │
│  ┌────────┐  ┌────────┐                                     │
│  │APPROVED│  │BLOCKED │                                     │
│  └────────┘  └────────┘                                     │
│                                                               │
└─────────────────────────────────────────────────────────────┘

Why Transfer Hooks Matter

Protection	Without Transfer Hooks	With Transfer Hooks
🎖️ Accreditation	Anyone can buy	Only verified accredited investors
🚫 Sanctions	Sanctioned parties can transact	Real-time OFAC blocking
📊 Concentration	Whales can accumulate	4.99% wallet limit enforced
🔴 Volatility	No circuit breakers	30% drop triggers halt
🏦 Backing	No verification	1:1 verified every ~400ms
🎭 Rugpull	Possible	Mathematically impossible

---

Q: What technology stack does OTCM Protocol use?

A: Purpose-built for SEC Category 1 compliance:

Technology Stack

Layer	Technology	Purpose
⛓️ Blockchain	Solana	High throughput, low latency
🪙 Token Standard	SPL Token-2022	Transfer Hook support
🔐 Security	Transfer Hooks	42 compliance controls
🏦 Custody Oracle	Custom	Real-time Empire verification
💱 Trading	CEDEX	Compliant order matching
🌐 Frontend	React/TypeScript	User interface
🔧 Smart Contracts	Rust/Anchor	On-chain logic

Why Solana?

Advantage	Benefit for Category 1
⚡ Speed	~400ms block times enable real-time verification
💰 Low Fees	Sub-cent transactions make compliance affordable
🔐 Token-2022	Native Transfer Hook support for compliance
🏗️ Infrastructure	Mature ecosystem, institutional adoption
📊 Throughput	65,000+ TPS handles institutional volume

---

📞 CONTACT & SUPPORT

Q: How do I contact OTCM Protocol?

A: Multiple channels for different needs:

Purpose	Contact
📧 General Inquiries	info@otcm.io
🏢 Issuer Relations	issuers@otcm.io
🛡️ Compliance	compliance@otcm.io
⚖️ Legal	legal@otcm.io
🔧 Technical Support	support@otcm.io
🐛 Bug Reports	security@otcm.io

Response Times

Channel	Expected Response
📧 Email	24-48 hours
💬 Discord	Same day
🐦 Twitter/X	24 hours
🆘 Urgent Security	4 hours

---

📋 Document Information

Field	Value
📄 Document Version	3.0
📅 Last Updated	January 2026
📍 Jurisdiction	Wyoming, United States
🏛️ Regulatory Framework	SEC Category 1 (Issuer-Sponsored Tokenized Securities)
🏢 Entity	OTCM Protocol, Inc. (Wyoming Digital Asset Corporation)

---

⚠️ Disclaimer: This FAQ provides general information about OTCM Protocol, Inc. and its services. It does not constitute legal, tax, or investment advice. ST22 Tokenized Securities are securities under federal securities laws and are available only to verified accredited investors. The OTCM Utility Token is a utility token with no asset backing and is not a security. Consult qualified professionals for specific guidance.

---

© 2026 OTCM Protocol, Inc. | All Rights Reserved

OTCM Protocol, Inc. is a Wyoming Digital Asset Corporation operating SEC Category 1 compliant tokenized securities infrastructure. ST22 Tokenized Securities are securities under federal securities laws pursuant to SEC Category 1 framework.