1. OVERVIEW

Cregis Custody FZE ("Cregis", the "Firm") maintains an insurance coverage framework intended to mitigate specific, defined risks associated with the provision of Virtual Asset Custody Services.

This Insurance Coverage Disclosure (the "Disclosure") is provided for transparency purposes only and outlines the scope, limitations, and procedural aspects of the Firm's insurance arrangements.

This Disclosure is made in accordance with applicable requirements and expectations of the Dubai Virtual Assets Regulatory Authority (VARA) and must be read together with the Firm's Client Agreements and the Legal and Regulatory Disclosures.

2. SCOPE OF COVERAGE

2.1 Covered Risks

Cregis maintains insurance coverage that may respond to the following:

• Dishonest or fraudulent acts or omissions
• Loss, destruction, or compromise of cryptographic key material
• Theft or unauthorised access

2.2 Exclusions

The insurance coverage does not extend to, and shall not respond to:

• market price fluctuations or volatility;
• loss of value, liquidity, or marketability of Virtual Assets;
• client or end-user error, including incorrect instructions or compromised credentials;
• failures, insolvency, or acts of third-party service providers, blockchain networks, or protocols;
• forks, protocol changes, or network disruptions, unless expressly covered under the policy.

3. COVERAGE LIMITS AND AGGREGATE NATURE

• Coverage limits are subject to the terms and conditions of the applicable insurance policy.
• Subject to insurer approval and the payment of additional premiums, aggregate coverage limits may be adjusted from time to time.
• Insurance coverage is maintained at the custodian level. Clients are not named insureds or beneficiaries under the policy and do not have any direct rights of action against the insurer.
• Where multiple clients are affected by a single insured event, any compensation payable by the insurer may be allocated on a pro-rata or other equitable basis, as determined in accordance with the insurance policy and applicable law.
• Coverage limits, terms, and conditions may be amended periodically to reflect changes in risk exposure, insurer requirements, or market practice.

4. CLAIMS NOTIFICATION AND HANDLING PROCESS

In the event of a suspected incident that may qualify for insurance coverage:

4.1 Client Notification

Clients must notify Cregis promptly at: [email protected]

4.2 Internal Investigation

Cregis will conduct a formal internal investigation to:

• assess the nature and scope of the incident;
• determine whether the event falls within the scope of insured risks; and
• quantify any potential loss.

4.3 Claim Submission

Where the incident is assessed as potentially covered, Cregis will submit a claim to the insurer in accordance with the insurer's claims procedures and policy requirements.

4.4 Claim Determination

Any determination, adjustment, or settlement of a claim is made solely by the insurer in accordance with the terms of the applicable insurance policy.

5. IMPORTANT DISCLAIMERS

• Insurance coverage does not guarantee full recovery of Virtual Assets or their value.
• The existence of insurance should not be relied upon as a substitute for independent risk assessment by clients.
• Cregis makes no representation or warranty regarding the approval, timing, or amount of any insurance payout.
• This Disclosure does not constitute an insurance contract, an offer of insurance, or a commitment to compensate clients beyond Cregis's contractual obligations.
• In the event of any inconsistency between this Disclosure and a Client Agreement, the Client Agreement shall prevail.

6. FURTHER INFORMATION

Subject to confidentiality, regulatory restrictions, and insurer limitations, clients may request additional high-level information regarding the Firm's insurance arrangements by contacting:

[email protected]