7. 💸Total TOTALLoss LOSS RISKRisk (OTCM UTILITYUtility TOKEN)Token)

🔴 Your Tokens May Become Completely Worthless

CriticalYOUR LossTOKENS ScenariosMAY forBECOME OTCMCOMPLETELY Utility Token:WORTHLESS.

8. 🎢Extreme EXTREMEVolatility VOLATILITY RISKSRisks (OTCM UTILITYUtility TOKEN)Token)

⚡PriceMovementsCan

Be Violent and Unpredictable Risk Description 📉 Risk Description Extreme Swings Token prices may experience movements exceeding 90% in a single day ⚡ Flash Crashes Prices can drop dramatically in seconds 🐋 Whale Risk Large holders may significantly impact price 🦠 Sentiment Driven Value derives from platform utility and market sentiment 💧 Liquidity Risk May be unable to sell at desired prices   9. 🏦Staking STAKING RISKSRisks (OTCM UTILITYUtility TOKEN)Token) 💰StakingInvolvesAdditional Risks Risk Description 🔐 Risk Description Lock-up Risk Staked tokens may be locked during critical price movements 🎢 APY Volatility Staking rewards depend on ST22 trading volume and may vary significantly 🐛 Smart Contract Risk Staking contracts may fail or be exploited 💸 Opportunity Cost Staked tokens cannot be sold during price increases ⚔️ Reward Reduction APY may decrease if more participants stake   10. 🗳️Protocol GOVERNANCE RISKS (OTCM UTILITY TOKEN) 🏛️ DAOGovernance Participation Risks Risk Description 🗳️ Risk Description Governance Attacks Malicious actors may attempt to influence governance 📊 Minority Position Your votes may be outvoted by larger holders ⚙️ Parameter Changes DAOProtocol Governance may change protocol parameters affecting token value 🔐 Governance Limitations CategoryThe 142 Transfer Hook compliance requirementscontrols are immutable and cannot be modified by DAOgovernance vote   PART C: GENERAL RISKS (BOTH TOKEN TYPES) 11. 🎭 MARKET MANIPULATION RISKS 🎪Market Manipulation Remains Possible Despite Protections Risks While OTCM implements 42 Transfer Hook security controls, manipulation risks remain: Risk Description Mitigation 📈📉 Risk Description Mitigation Pump and Dump Coordinated buying followed by selling Circuit breakers, wallet limits 🔄 Wash Trading Fake volume creation Transfer Hook monitoring 🐋AML analytics via Chainalysis KYT + TRM Labs Whale Accumulation Large position building 4.99% wallet concentration limit 📱 Social Manipulation False information spreading Cannot be prevented by technology Coordination 🤝 Coordination Private groups coordinating trades Difficult to detect   12. 🧠 PSYCHOLOGICAL RISKS 🎰 Trading Involves Psychological Risks 🚨 MENTAL HEALTH WARNINGS: 🎰 Addiction Risk → Token trading can be psychologically addictive 😱 FOMO Pressure → Fear of missing out may cause irrational decisions 👥 Social Pressure → Community pressure may influence poor choices 😭 Emotional Trading →involves Decisionspsychological basedrisks. on emotions rather than analysis 💔 Financial Stress → Losses can cause significant emotional distress If you are experiencing: experiencing Difficultydifficulty controlling trading behavior Tradingbehavior, trading affecting relationships or responsibilities Emotionalresponsibilities, emotional distress from trading losses Borrowinglosses, or borrowing money to trade Please— please seek professional help. Trading should not negatively impact your mental health or financial stability.   13. 🔧Operational OPERATIONAL RISKSRisks 🤝 Third-Party Dependencies Dependency Risk 🏦 Dependency Risk Empire Stock Transfer Custodian failure affects ST22 backing ⛓️ Solana Network Network issues affect all trading 📊 Oracle Systems Oracle failures affect custody verification 🔄 RPC Providers (Helius) RPC issues may prevent transactions 👛 Wallet Software Wallet bugs may cause losses   🏢 Business Continuity Risks Risk Description 👤 Risk Description Key Person Risk Loss of critical team members 💰 Funding Risk Platform may exhaust operational funds 🏃 Competition Risk Better platforms may emerge 📱 Technology Risk Technology may become outdated 🐻 Market Conditions Prolonged bear markets may affect viability   14. 🌍Geographic GEOGRAPHIC RESTRICTIONSRestrictions 🚫ProhibitedJurisdictions The following cannot use OTCM Protocol:Restriction Restriction Details 🏴‍☠️ Details OFAC Sanctioned Countries All OFAC-sanctioned jurisdictions ❌ Crypto-Prohibited Jurisdictions Jurisdictions where crypto trading is illegal 🇺🇸 Certain US States States with specific restrictions 📜 Non-Accredited (ST22) Non-accredited U.S. investors cannot purchase ST22 tokens   15. 🚫Disclaimers DISCLAIMERSand AND LIMITATIONSLimitations ❌ NO WARRANTIES OR GUARANTEES 🚨 OTCM PROTOCOL, INC. PROVIDES THE PLATFORM "AS IS" WITHOUT WARRANTIES: 📈 No Profitability Guarantee → We do not guarantee any returnsWarranties or profits 🏦 No Value Guarantee → Token values may decline to zero 💧 No Liquidity Guarantee → We cannot ensure tokens remain tradeable 🖥️ No Platform Guarantee → The platform may cease operations 🔄 No Recovery Guarantee → Lost funds generally cannot be recovered ⚖️ No Regulatory Guarantee → Regulatory framework may change ⚖️ Limitation of LiabilityGuarantees Limitation Description 💸 Limitation Description Maximum Liability Our maximum liability is limited as specified in Terms of Service ❌ No Consequential Damages We are not liable for indirect, incidental, or consequential damages 📋 No Investment Advice Nothing on our platform constitutes investment, legal, or tax advice 👤 Your Responsibility You are solely responsible for all trading decisions Indemnification 🛡️ Indemnification You agree to indemnify OTCM Protocol from claims arising from your use   16. ✅Acknowledgment ACKNOWLEDGMENTand AND ACCEPTANCEAcceptance 📋 By Usingusing OTCM Protocol, Youyou Acknowledge: acknowledge:   For ST22 TokenizedDigital Securities: ✅•       You understand ST22 tokens are SECURITIES under federal securities laws ✅•       You qualify as an accredited investor under SEC Rule 501 (U.S.) or as a non-U.S. person under Reg S ✅•       You understand you may lose your entire investment ✅ •       You have reviewed the specific risks of the underlying company ✅ •       You understand Category 1 protections do NOT guarantee against loss ✅ •       You understand protective conversion may result in worthless common stock   For OTCM Utility Token: ✅•       You understand OTCM Utility Token has NO asset backing ✅•       You understand it is a utility token,token, NOT a security ✅•       You accept the risk of total loss of all funds ✅ •       You understand staking rewards are NOT guaranteed   For Both Token Types: ✅ •       You have read and understood ALL risk disclosures ✅ •       You will not invest more than you can afford to lose ✅ •       You will comply with all applicable laws ✅ •       You will maintain security of your own wallets ✅ •       You accept all risks associated with blockchain-based assets 🚨  FINAL WARNING ⚠️ INVESTING IN ST22 TOKENIZED SECURITIES AND OTCM UTILITY TOKENS INVOLVES SUBSTANTIAL RISK OF LOSS. 📜 ST22 TOKENIZED SECURITIES ARE SECURITIES. Investing in securities can result in loss of your entire investment. Category 1 compliance provides certain protections but does NOT guarantee against loss. 🎫 OTCM UTILITY TOKENS HAVE NO ASSET BACKING. They are speculative digital assets that may become worthless. 🛡️ THE PLATFORM, WHILE IMPLEMENTING CATEGORY 1 COMPLIANT INFRASTRUCTURE, CANNOT PROTECT YOU FROM MARKET LOSSES, ISSUER FAILURES, OR THE INHERENT RISKS OF SECURITIES AND DIGITAL ASSET INVESTMENTS. 💸 IF YOU CANNOT AFFORD TOMAY LOSE YOUR ENTIRE INVESTMENT,INVESTMENT. DOTHERE NOTIS PARTICIPATE. NO GUARANTEE 📞OF CONTACTANY FORRETURN. QUESTIONS PROCEED IfONLY you do not understand any of these risks: 🚫 DO NOT USE THE PLATFORM UNTILIF YOU DO FULLY UNDERSTAND AND ACCEPT ALL RISKS.   Contact for Questions onplatform Considerwhetherparticipation Resources:Resource 📧Contact General / InvestorsEmail:  legal@otcm.invest@otcm.io 📚Chief Technology Officer frank@otcm.io Educational Materials:Materials otcm.info Available 💼 Professional Advice:Advice  Consult with qualified financial, legal, and tax advisors 🤔 Self-Assessment: is  appropriate for your financial situation 📋Document DOCUMENT INFORMATIONInformation Field Value 📄 Field Value Document Version 3.0 📅 8.0 Effective Date JanuaryMarch 2026 Entity Jurisdiction 📍Wyoming Corporation Jurisdiction Wyoming, United States ⚖️ Governing Law WyomingNew Jersey State Law and Federal Securities Law 🏛️ Regulatory Framework SEC Category 1 Model B — Release No. 33-11412 (Issuer-SponsoredMarch Tokenized17, Securities)2026)   By clicking "“I Accept"Accept” or using the platform, you confirm you have read, understood, and accepted all risks described in this document. ⚠️ This Risk Disclosure document may be updated at any time. Users are responsible for reviewing current disclosures regularly. Continued use of the platform constitutes acceptance of updated disclosures.   🛡️ Critical Reminder: This document exists to protect you from financial harm. These are legitimate warnings about securities and digital assets that can cause significant financial loss. Please take them seriously. © 2026 OTCMGroovy Protocol,Company, Inc. dba OTCM Protocol  |  All Rights Reserved ST22 TokenizedDigital Securities are securitiesCategory 5 Digital Securities under federalSEC–CFTC securitiesRelease lawsNo. pursuant to SEC Category 133-11412 (Issuer-SponsoredMarch Tokenized17, Securities) framework.2026). The OTCM Utility Token is a utility token with no asset backing. Groovy Company, Inc. dba OTCM Protocol is a Wyoming Corporation (CIK: 1499275). Back to top