Notice on Securities

The notice is to inform all participants (“investors”) of Chintai Network Services Pte. Ltd. on our best practices and controls in relation to due diligence conducted on issuers, management of defaults, and security of investors’ funds and account, so that all participants can make better informed investment decisions on offers of securities by issuers.

1. Due Diligence Check on Issuers

1.1 The scope and adequacy of the due diligence review for listing of security tokens of the issuer is typically determined by factors including:

(i) The type of issuer or person who is the subject of the due diligence;

(ii) The nature of the securities; and

(iii) The nature of the industry and business and the jurisdiction(s) in which the operations of the issuer is based

(iv) Experience of the board of directors and senior management

(v) Financial performance and prospects, compliance and general risk functions

(vi) Existing public disclosure and commentary by credit-rating agencies/third party, if any

2. Customer’s Monies

2.1 The funds for operating our business are completely segregated from your money for your investment. Your money is maintained by Propine Technology Pte. Ltd. (“Propine”), our appointed custodian in a trust account for all our investors' monies maintained with DBS Bank Ltd. Propine currently holds a capital markets services license issued by the Monetary Authority of Singapore (“MAS”) for providing custodial services under the Securities and Futures Act. DBS Bank Ltd is currently licensed to carry on banking business in Singapore.

2.2 Our custodian holds monies received on your account in an omnibus customer trust account together with monies that they hold for other customers. This means that such monies in the trust account will be commingled with the monies of other customers. The risks of this commingling is that it is administratively and operationally difficult, if not impossible (in view of the constant fluctuation of the aggregate balance in such account), to account separately for each of our customers' respective interest due on their respective cash balances in the omnibus customer account as dividends will be received on an aggregate basis.

2.3 In the event of insolvency of the bank, custodian or other financial institution holding the omnibus customer trust account, you understand that you may not be able to fully recover your monies. Further, as your monies are commingled with those of other customers in the same account, you may potentially be exposed to the losses of other customers.

2.4 We shall only pay monies in the trust account belonging to you to bank accounts belonging to you. If we are not satisfied that the monies deposited by you came from bank accounts belonging to you, we will refund such monies to you unless we are required under applicable laws to withhold the monies. Likewise, we will only repay your monies to bank accounts belonging to you.

3. Customer’s assets

3.1 We may whether directly or indirectly (custodians/ sub-custodians/ trustees/ nominees ("custodian") or otherwise), hold Investments purchased for you in an omnibus custody account, aggregated with other investments of our other customers, and/or the customers of these Custodians, and such investments may not be held in your name. This means that your investments will be commingled with the assets of our other customers and/or the customers of these custodians. Given such commingling, the investments may be registered collectively in our name, the name of the custodian and your entitlements may not be identifiable as separate certificates, titles or electronic records.

(a) If there are any dividends, interests, rights, benefits or other proceeds in relation to your investments resulting from such commingling, we shall have full discretion as to the allotment of such dividends, interests, rights, benefits or other proceeds;

(b) In the event of insolvency or default of the custodian, you understand that you may not be able to fully recover your investments held in the omnibus custody account. Any shortfall in the Investments may be shared among you and our other customers and/or the customers of the custodians pro rata. As your Investments are commingled with those of other customers in the same account, you may potentially be exposed to the losses of other customers.

4. Computation trust and/or custody accounts

Computations are performed on every business day of the total amount of customer’s monies and/or assets deposited in trust and/or custody accounts. Account statements will be made available to you by electronic means whenever you effected a transaction so that you can check the balances of your funds and/or assets in your Chintai account.

5. Management of Issuer’s Default and/or Platform Cessation

In the event of issuer default or the voluntary or involuntary cessation of our platform, we may offer measures such as establishing communication channels between the investors and the issuer, appointing a professional debt collector, or commencing legal proceedings against the issuer to assist our investors to recover their debt from the defaulted issuers. We will seek investors’ consent before incurring any costs that will be borne by the investors for debt recovery efforts.

6. Account Security

We implement 2 factor authentication when you login to your account, making investment /withdrawal orders or changes to your account. You are required to satisfy the authentication methods in order to authorize the transactions. All information and transaction data relating to your account are encrypted in our database and are routinely backed up to ensure the confidentiality, integrity and availability of your account details.