A: Transparent 5% fee structure:

Fee

Distribution

┌─────────────────────────────────────────────────────────────┐
│                    FEE BREAKDOWN                             │
├─────────────────────────────────────────────────────────────┤
│                                                               │
│  You Trade: $10,000 of ST22 Tokens                           │
│                                                               │
│  Total Fee: 5.0% = $500                                      │
│                                                               │
│  ┌─────────────────────────────────────────────────────┐    │
│  │ OTCM Protocol: 4.0% = $400                          │    │
│  │ ├── Protocol Operations                             │    │
│  │ ├── OTCM Staking Rewards                            │    │
│  │ ├── Development                                     │    │
│  │ └── Insurance Reserve                               │    │
│  └─────────────────────────────────────────────────────┘    │
│                                                               │
│  ┌─────────────────────────────────────────────────────┐    │
│  │ Issuer: 1.0% = $100                                 │    │
│  │ └── Paid to underlying company                      │    │
│  └─────────────────────────────────────────────────────┘    │
│                                                               │
│  You Receive: $9,500 worth of ST22 tokens                    │
│                                                               │
└─────────────────────────────────────────────────────────────┘

A: No hidden platform fees,fees. butComplete consider:cost breakdown:

// Complete fee breakdown
interface CompleteFees {
  // Platform feesFees (transparent)Transparent) ✅
  platform: {
    trading: "1.1%5.0% curve,total 0.4%(4.0% post-graduation",
    automatic: "Deducted automatically",
    purpose: "Platform operationsProtocol + custody"1.0% Issuer)",
    application: "Both buys and sells",
    deduction: "Automatic from transaction"
  };

  // Network feesFees ⛽
  network: {
    solana: "~$0.001001-0.01 per transaction",
    gasOptimized:comparison: "50%Significantly cheaperlower than industry average"Ethereum",
    purpose:variability: "BlockchainMay operationincrease costs"during congestion"
  };

  // No Additional Fees 🚫
  noFees: {
    accountFees: "No monthly or annual fees",
    withdrawalFees: "No withdrawal fees",
    kycFees: "Verification is free",
    listingFees: "No fees to access tokens"
  };

  // Potential additionalIndirect costsCosts 💡
  potential:indirect: {
    slippage: "Post-graduationLarge DEXorders trading"may move price",
    spread: "Buy/sellBid/ask pricespread differences"on CEDEX",
    bridging:timing: "IfPrice movingchanges toduring other chains"execution"
  };
}

Q: Can I avoidreduce fees by holding OTCM tokens?

(not
(not

Coverage	Status	Reason
🏦 FDIC insuranceInsurance	❌ Not covered	Not a bank deposit)deposit
🛡️ SIPC coverageCoverage	❌ Not covered	Not a brokerage account)account
💰 Platform guaranteesGuarantees	❌ None	No guarantee against loss
🔒 Investment insuranceInsurance	❌ Not covered	Not an insured investment

✅ What IS Protected:

immutability

Protection	Description
🏦 SharesQualified Custody	Backing shares held at SEC-registered custodianEmpire Stock Transfer
🔐 SmartTransfer contractHook Controls	42 mathematically-enforced security auditscontrols
🔴 Circuit Breakers	Trading halts at 30% price decline
📊 Wallet Limits	4.99% maximum prevents concentration
🚫 OFAC Screening	Sanctions compliance on every trade
🔄 Protective Conversion	Automatic conversion on adverse issuer events
⛓️ Blockchain Immutability	Transparent, tamper-proof transaction records
🔍 TransparencyCustody Verification	Real-time 1:1 backing verification (~400ms)

What Protective Conversion Provides

Trigger Event	Protection
💸 Issuer Bankruptcy	Series M converts to common stock
🏛️ SEC Enforcement	Series M converts to common stock
⚖️ Criminal Indictment	Series M converts to common stock
🔄 Adverse Merger	Series M converts to common stock

⚠️ Important Limitation: throughProtective on-chainconversion recordsgives

you

common stock, which may have zero value in bankruptcy. It ensures you have the same rights as other shareholders, not a guarantee of recovery.

---

Q: What if I lose my wallet keys?

A: Lost keys = lost tokens permanently.permanently. No recovery possible.

// Wallet security best practicesrequirements
interface WalletSecurity {
  // Critical measuresMeasures 🚨
  critical: [
    "Backup seed phrasesphrase securely"on paper/metal, stored securely offline",
    "Never store seed phrase digitally (no photos, cloud, email)",
    "Never share private keys"keys with anyone",
    "Use hardware wallets for largeholdings amounts">$10,000",
    "ConsiderTest multi-signaturerecovery setups"process before storing significant funds"
  ];

  // Recovery optionsReality 🔄
  recovery: {
    seedPhrase:withSeedPhrase: "OnlyFull wayrecovery to recover access"possible",
    socialRecovery:withoutSeedPhrase: "NotIMPOSSIBLE available"— tokens lost forever",
    customerSupport:otcmSupport: "Cannot help withrecover lost keys",
    blockchain: "Transactions are irreversible",
    };
}




---

⚡ Advanced Trading

Q: What is copy trading?

A: Automatically replicate successful traders:

// Copy trading system
class CopyTradingSystem {
  // Trader selection 🎯
  traderMetrics = {
    performance:legal: "VerifiedNo on-chainrecourse P&L",for winRate:lost "Percentage of profitable trades",
    sharpeRatio: "Risk-adjusted returns",
    consistency: "Performance over time",
    community: "Follower validation"keys"
  };

  // RiskHardware managementWallet 🛡️Recommendations riskControls🔒
  =hardware: {
    positionLimits:ledger: "MaximumLedger allocationNano perX/S trade"Plus — excellent Solana support",
    stopLosses:recommended: "AutomaticFor lossany limitation"holdings >$10,000",
    maxDrawdown:security: "PortfolioKeys protection",never diversification:leave "Across multiple strategies"device"
  };
//}

Wallet Security Checklist

✅	Security Measure
☐	Seed phrase written on paper/metal
☐	Seed phrase stored in secure location (safe, bank box)
☐	No digital copies of seed phrase
☐	Hardware wallet for large holdings
☐	Recovery process tested
☐	Wallet software updated
☐	Verified official wallet websites

---

Q: How itdo worksTransfer ⚙️Hooks processprotect =me?

{

A: step1:42 "Select traders based on verified metrics", step2: "Allocate capital with risk parameters", step3: "Tradescontrols execute automatically on every transaction:

Transfer Hook Security Architecture

┌─────────────────────────────────────────────────────────────┐
│              TRANSFER HOOK PROTECTION                        │
├─────────────────────────────────────────────────────────────┤
│                                                               │
│  Every ST22 Transaction Must Pass ALL Checks:                │
│                                                               │
│  ┌─────────────────────────────────────────────────────┐    │
│  │ 🏦 CUSTODY VERIFICATION (6 controls)                │    │
│  │    ✓ 1:1 backing exists at Empire Stock Transfer    │    │
│  │    ✓ Oracle providing valid data                    │    │
│  │    ✓ Custody account in good standing               │    │
│  └─────────────────────────────────────────────────────┘    │
│                                                               │
│  ┌─────────────────────────────────────────────────────┐    │
│  │ 🪪 INVESTOR VERIFICATION (8 controls)               │    │
│  │    ✓ Buyer KYC verified                             │    │
│  │    ✓ Buyer is accredited investor                   │    │
│  │    ✓ Seller KYC verified                            │    │
│  └─────────────────────────────────────────────────────┘    │
│                                                               │
│  ┌─────────────────────────────────────────────────────┐    │
│  │ 🚫 OFAC SCREENING (5 controls)                      │    │
│  │    ✓ Buyer not on sanctions list                    │    │
│  │    ✓ Seller not on sanctions list                   │    │
│  └─────────────────────────────────────────────────────┘    │
│                                                               │
│  ┌─────────────────────────────────────────────────────┐    │
│  │ 📊 POSITION LIMITS (5 controls)                     │    │
│  │    ✓ Buyer won't exceed 4.99% of supply             │    │
│  └─────────────────────────────────────────────────────┘    │
│                                                               │
│  ┌─────────────────────────────────────────────────────┐    │
│  │ 🔴 CIRCUIT BREAKERS (4 controls)                    │    │
│  │    ✓ No 30%+ price decline triggered                │    │
│  │    ✓ No unusual volume spike                        │    │
│  └─────────────────────────────────────────────────────┘    │
│                                                               │
│  ALL PASS? ──► Transaction Approved                          │
│  ANY FAIL? ──► Transaction Blocked                           │
│                                                               │
└─────────────────────────────────────────────────────────────┘

---

⚡ ADVANCED TRADING

Q: What order types are available?

A: Depends on trading phase:

Bonding Curve Phase

Order Type	Available	Notes
🎯 Market Order	✅	Instant execution at curve price
📊 Limit Order	❌	Not available on bonding curve
🛑 Stop Loss	❌	Not available on bonding curve

Post-Graduation (CEDEX)

feestoproviders"

Order Type	Available	Notes
🎯 Market Order	✅	Execute at best available price
📊 Limit Order	✅	Set your account",price, step4:wait "Payfor performancefill
🛑 };Stop }Loss	✅	Automatic sell at trigger price
📈 Stop Limit	✅	Stop + limit combination

---

Q: Can I provide liquidity?

A: Yes, after tokens graduategraduation to DEX:CEDEX:

💧

Liquidity Provision Process:

on

CEDEX

• 🏊‍♂️

  Step	Action
  1️⃣	Navigate to LP section for specific ST22 token
  2️⃣	Add equal values of tokenST22 and+ SOL/USDCSOL 💰(or USDC)
  3️⃣	Receive LP tokens representing your share
  4️⃣	Earn percentage of all trading fees
  5️⃣	Withdraw anytime (subject to Transfer Hook checks)

  LP Considerations

  Factor	Description
  💰 Rewards	Share of 5% transaction fees
  ⚠️ Impermanent Loss	Risk ofif prices diverge significantly
  🔐 Transfer Hooks	Still apply to LP operations
  🎖️ Accreditation	Must be accredited investor

  ⚠️ Risk Warning: Liquidity provision carries impermanent loss

• 🔄risk. CanUnderstand withdrawthis anytime
concept before

providing liquidity.

---

Q: Can I convert tokens back to actual shares?

A: PotentiallyProtective yes,conversion is the primary mechanism, but withindividual restrictions:redemption may be possible:

Protective Conversion (Automatic)

// Protective conversion — automatic triggers
interface ProtectiveConversion {
  // Trigger Events ⚠️
  triggers: {
    bankruptcy: "Issuer files Chapter 7, 11, or 13",
    secEnforcement: "SEC takes enforcement action",
    criminalIndictment: "Company or officers indicted",
    dissolution: "Company dissolves",
    adverseMerger: "Merger without Series M protection"
  };

  // Process 🔄
  process: {
    detection: "Oracle monitors for trigger events",
    verification: "Empire Stock Transfer confirms",
    conversion: "Series M converts to common stock per Certificate",
    notification: "Token holders notified on-chain",
    claim: "Token holders claim common shares"
  };

  // Important Limitations ⚠️
  limitations: {
    valueGuarantee: "NO — common stock may be worthless",
    timing: "Conversion takes 5-10 business days",
    registration: "Common stock subject to securities laws"
  };
}

Individual Redemption (If Available)

Requirement	Details
🎖️ Eligibility	Must be accredited investor
⚖️ Rule 144	SEC restrictions apply
⏰ Holding Period	May be required
📊 Volume Limits	May apply
🏢 Issuer Status	Depends on company reporting status

// Individual redemption process (if available)
interface TokenRedemptionIndividualRedemption {
  // Eligibility 🎯
  eligibility: {
    companies: false,           // PermanentlyNEVER — permanently blocked
    individuals:accreditedIndividuals: true, // May redeem for Series M shares
    institutions: true,         // Subject to verification
    foreigners:nonAccredited: "Dependsfalse        on// RuleCannot 144"hold ST22
  };

  // Process ⚙️
  process: {
    step1: "Submit redemption request"request via CEDEX",
    step2: "Empire Stock Transfer verifies eligibility",
    step3: "Rule 144 compliance verified",
    step4: "Tokens burned on-chain",
    step4:step5: "SharesSeries convertedM andshares delivered"registered to holder",
    timeline: "5-10 business days"
  };

  // Restrictions ⚖️
  restrictions: {
    rule144: "SEC restrictionsholding apply",period holding:and "Periodvolume requirements",
    volume: "Limitations may apply"restrictions",
    affiliates: "Additional restrictions for company restrictions"insiders",
    registration: "Shares remain restricted securities",
    transferability: "Limited secondary market for shares"
  };

  // Why Redeem? 🤔
  reasons: {
    votingRights: "May want voting rights (if Series M has none)",
    directOwnership: "Prefer traditional share ownership",
    estatePlanning: "Simpler for estate purposes",
    taxPlanning: "Tax advisor recommendation"
  };
}

💡




Most

Investors:

Continue holding ST22 tokens for liquidity and trading convenience rather than redeeming for underlying shares.

---

❓ ADDITIONAL QUESTIONS

Q: What are trading hours?

A: 24/7/365 — blockchain never closes:

Factor	Status
⏰ Trading Hours	24 hours, 7 days, 365 days
🌍 Time Zones	No restrictions
🏛️ Holidays	Trading continues
🔧 Maintenance	Rare, announced in advance

⚠️ Note: Volatility may be higher during off-hours when liquidity is lower.

---

Q: Can non-US investors participate?

A: Depends on jurisdiction:

Jurisdiction	ST22 Access	Requirements
🇺🇸 United States	✅	Accredited investor verification
🇬🇧 United Kingdom	⚠️	May be available, jurisdiction check
🇪🇺 European Union	⚠️	Varies by country
🇨🇦 Canada	⚠️	Provincial requirements
🚫 Prohibited	❌	OFAC sanctioned countries

Prohibited Jurisdictions

Country	Reason
🇰🇵 North Korea	OFAC sanctions
🇮🇷 Iran	OFAC sanctions
🇸🇾 Syria	OFAC sanctions
🇨🇺 Cuba	OFAC sanctions
🇷🇺 Crimea Region	OFAC sanctions

---

Q: How do I report taxes on ST22 trading?

A: Consult a tax professional. General guidance:

Event	Typical Treatment
💰 Purchase ST22	Cost basis established
📈 Unrealized Gain	Not taxable until sale
💵 Sell ST22	Capital gain/loss (short or long-term)
🔄 Protective Conversion	May be taxable event — consult advisor
🎁 Dividends (if any)	Ordinary income

⚠️ Important: ST22 Tokenized Securities are securities. Standard securities tax treatment applies. Consult a qualified tax professional.

---

📞 SUPPORT

Q: How do I get help?

A: Multiple support channels:

Channel	Contact	Best For
📧 Email	support@otcm.io	Detailed questions
💬 Discord	discord.gg/otcmprotocol	Community support
📚 Documentation	docs.otcm.io	Self-service
🐦 Twitter/X	@OTCMProtocol	Updates
🆘 Urgent	urgent@otcm.io	Time-sensitive issues

Response Times

Priority	Response Time
🔴 Critical (funds at risk)	4 hours
🟡 High (trading issue)	24 hours
🟢 Normal	48 hours
🔵 General inquiry	72 hours

---

📋 Document Information

Field	Value
📄 Document Version	3.0
📅 Last Updated	January 2026
📍 Jurisdiction	United States
🏛️ Regulatory Framework	SEC Category 1 (Issuer-Sponsored Tokenized Securities)
💱 Trading Venue	CEDEX (Compliant Exchange for Digital Securities)

---

⚠️ Risk Warning: ST22 Tokenized Securities are speculative investments. You may lose your entire investment. Only invest what you can afford to lose. Past performance does not guarantee future results. ST22 tokens are securities under federal securities laws and are available only to verified accredited investors.

---

© 2026 OTCM Protocol, Inc. | All Rights Reserved

ST22 Tokenized Securities are securities under federal securities laws pursuant to SEC Category 1 (Issuer-Sponsored Tokenized Securities) framework. Trading is available only to verified accredited investors.