Risk Disclosure Statement

Please read this Risk Disclosure Statement carefully. It describes some of the principal risks of a Bitcoin Equity Loan and of buying, holding, and owning Bitcoin. It is general in nature and does not describe all of the risks or all of the considerations that may be relevant to your circumstances. You should enter into a loan only if you understand the nature of your obligations and your exposure to these risks, and you should consider whether a Bitcoin Equity Loan is appropriate for you in light of your knowledge, experience, financial objectives, and resources. In this Statement, "Pyrus" (the "Company," "we," "us," or "our") means Pyrus Financial Inc., together with its subsidiaries and affiliates, including Pyrus Credit LLC, which originates and services loans. Capitalized terms used but not defined here have the meanings given in your Loan Agreement.

What a Bitcoin Equity Loan is, and is not

A Bitcoin Equity Loan is a fixed-rate, closed-end U.S. dollar installment loan used to purchase Bitcoin. You make a down payment toward the purchase price of a stated quantity of Bitcoin, Pyrus finances the remainder (the "Amount Financed"), and the Bitcoin is purchased on your behalf and held as collateral for your loan with a third-party custodian until your loan is repaid in full, at which point it is returned to you.

It is not a margin loan, a line of credit, or a Bitcoin-backed loan, and it is not an investment product, a security, or a deposit. Buying Bitcoin with borrowed money can magnify losses: you are obligated to repay the full Amount Financed plus interest and fees in U.S. dollars regardless of what happens to the price of Bitcoin.

You must repay your loan regardless of Bitcoin's price

Your obligation to make your scheduled monthly payments and to pay interest and fees is absolute and unconditional. It does not depend on the price or performance of Bitcoin. Because you pay interest and fees in addition to the purchase price, the total amount you pay over the life of the loan will exceed the price of the Bitcoin at the time it was purchased, and may substantially exceed the value of the Bitcoin you ultimately receive. You can lose money even if the price of Bitcoin rises, and you can lose a great deal of money if it falls.

Bitcoin is highly volatile and may lose substantial or all of its value

The price of Bitcoin can be extremely volatile and unpredictable and is driven by market forces of supply and demand. Bitcoin is not legal tender, is not backed by any government or central bank, and derives its value from the continued willingness of market participants to exchange value for it. That willingness could decline or disappear, which could result in a permanent and total loss of value. The Bitcoin returned to you at the end of your loan may be worth far less than the sum of your down payment, payments, interest, and fees, and could, in an extreme case, be worth little or nothing.

No margin calls, but no reduction of your obligation

A decline in the market price of Bitcoin, regardless of magnitude, will not trigger a margin call, require you to post additional collateral, or accelerate your loan, and is not by itself an event of default. This is a feature of the product, but it does not reduce or change your obligation to repay. You remain fully responsible for your scheduled payments, interest, and fees even if the collateral is worth less than what you owe.

Pyrus owns the collateral during the loan; you bear counterparty and insolvency risk

Until your loan is repaid in full and your other obligations are discharged, full legal and beneficial ownership of the collateral Bitcoin is held in Pyrus's name, not yours. You do not have a custodial or property interest in the specific Bitcoin during the loan. Instead, you have a contractual right to a return of an equivalent amount of Bitcoin after you repay in full, subject to Pyrus's rights and remedies. As a result, you are exposed to the credit and insolvency risk of Pyrus and of any custodian or other party that holds the collateral. If Pyrus or a relevant custodian were to become insolvent, you could become an unsecured creditor and could lose some or all of the collateral or its value, and your rights could be delayed or impaired. The collateral may be held in an omnibus account together with the collateral of other borrowers.

Use of collateral

Subject to applicable law, Pyrus may pledge the collateral to a third party for the sole purpose of obtaining funding for loans. Collateral that is pledged in this way is held by that party or its custodian, which increases the number of parties on whose performance and solvency you depend and may affect your ability to recover the collateral.

Default and loss of collateral

If an event of default occurs under your Loan Agreement, for example, if you fail to make payments as required, your entire outstanding balance may become immediately due, and Pyrus may exercise the remedies of a secured creditor, including selling or transferring the collateral and applying the net proceeds to what you owe. You remain responsible for any remaining deficiency after the collateral is applied, plus collection costs and, where permitted, attorneys' fees. You could therefore lose the collateral and still owe money. Default and late or missed payments may also be reported to consumer reporting agencies and can harm your credit.

Cost of credit; fees; execution

A Bitcoin Equity Loan carries interest and fees that increase your total cost of borrowing. Your annual interest rate, annual percentage rate, origination and other fees, and payment schedule are disclosed in your Loan Agreement and the Truth in Lending Act disclosures delivered with it. The Bitcoin purchase is executed at prevailing market prices, and an execution spread or slippage (as disclosed in your Loan Agreement) may apply, so the effective price you pay for the Bitcoin may be higher than a quoted spot price. Pyrus or its affiliates may earn a spread when converting currencies or digital assets.

No deposit insurance or investor protection

A Bitcoin Equity Loan is not a bank account or deposit. The collateral and any digital assets held in connection with the Services are not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC), the Securities Investor Protection Corporation (SIPC), or any other government deposit insurer or investor-protection fund.

Custody, security, and technology risks

The collateral is held by a third-party custodian. No custodian, technology, or security measure is completely secure. Digital assets and the systems that support them may be targets of fraud, theft, hacking, malware, or other cyberattacks, and a loss of private keys could render assets permanently inaccessible. Bitcoin transactions are generally irreversible once recorded on the blockchain, and transfers made to an incorrect or incompatible address, or in an incorrect amount, may be unrecoverable. Network congestion, outages, and other technical issues may delay or prevent transactions, including the return of collateral, and the timing and mechanics of any return depend on the custodian's then-current systems and procedures.

Hard forks and network changes

Bitcoin operates on open-source software that may change over time, including through a "hard fork" that splits the network. A hard fork or other network event may affect the value, function, or availability of the collateral. Pyrus may, in its sole discretion, determine which network and asset to support and is not obligated to support, monitor, deliver, or credit you for any forked or new asset.

Regulatory and legal uncertainty

The legal and regulatory treatment of Bitcoin, digital-asset custody, and digital-asset lending continues to evolve and varies by jurisdiction. Future legislative, regulatory, or judicial developments could restrict or prohibit the purchase, holding, transfer, or return of Bitcoin, impose new requirements on Pyrus or its custodians, or otherwise adversely affect your loan, the collateral, or its value.

Tax consequences

The tax treatment of acquiring, holding, and disposing of Bitcoin, and of the transactions contemplated by your loan, is complex and uncertain. Pyrus does not provide tax, legal, accounting, financial, or investment advice. You are solely responsible for determining and satisfying any tax obligations arising from your loan and from your acquisition, holding, or disposition of Bitcoin, and you should consult your own advisors. Pyrus may be required to report information or withhold taxes to the extent required by applicable law.

No advice; suitability

Information Pyrus provides is for general informational purposes only and is not a recommendation, solicitation, or advice to enter into a loan or to buy, hold, or sell Bitcoin. Pyrus is not acting as your broker, agent, fiduciary, or advisor. You are solely responsible for evaluating whether a Bitcoin Equity Loan and the acquisition of Bitcoin are appropriate for you, and you bear the consequences of that decision.

Platform availability and operational risk

Access to the Services may be interrupted, delayed, or unavailable, including during periods of high volatility or volume or due to hardware, software, network, or third-party failures. Such events may affect your ability to apply for a loan, make a payment, or access information, and Pyrus is not responsible for losses resulting from them except to the extent required by applicable law.

Your loan may be sold, transferred, or serviced by others

Pyrus may sell, assign, or transfer your loan and its interest in the collateral, including to affiliates or a financing or securitization vehicle, and may appoint a servicer to administer your loan. Your obligations remain the same, but the party to whom you make payments or direct communications may change. You will be notified of a change in servicer to the extent required by applicable law.

If anything in this Statement is unclear, consider seeking independent financial, legal, or tax advice before entering into a loan. You may contact Pyrus with questions at support@pyrusfinancial.com.

Last updated: March 12, 2026