LP Strategy is a configurable strategy built around the asset you allocate (the "Strategy Asset"). It may use one or more independent components: supplying the Strategy Asset to selected lending protocols; looping — depositing the Strategy Asset, or an approved wrapped or yield-bearing representation of it, as collateral, borrowing against it and redeploying the borrowed assets to create additional yield exposure; and staking eligible Strategy Assets to generate staking rewards. The specific component or combination of components depends on the configuration of the relevant strategy, available rates, market liquidity, and applicable risk limits; a specific LP strategy may use only one component, several components, or change the active component over time, and the components are not required to operate simultaneously.

How to read this document. Sections 2 and 3 describe how the strategy works and what you receive. They state design and intent, not outcome. Section 4 sets out what can go wrong, and the qualifications to sections 2 and 3 are stated there; it is not an exhaustive list of the circumstances in which a loss may arise. This document is information about a product. It is not investment advice and not a recommendation to deposit; take independent advice if you are unsure.

2.1 Lending markets. Where lending markets are used, the Strategy Asset may be supplied to selected lending protocols to generate interest paid by borrowers and, where applicable, protocol incentives. Lending rates are variable and depend on borrowing demand, market utilisation, available liquidity, and the terms of the relevant protocol.

2.2 Looping. Where looping is used, the Strategy Asset, or an approved wrapped or yield-bearing representation of the Strategy Asset, may be deposited as collateral. The strategy may borrow against the deposited collateral and redeploy the borrowed assets to create additional yield exposure. This process may be repeated within predefined collateral, leverage and risk limits. Looping may increase potential returns.

2.3 Staking. Where staking is used, an eligible Strategy Asset may be staked to generate staking rewards. Staking rewards are variable and depend on the parameters of the relevant network and on validator performance. Staked assets may be subject to a lock-up or unbonding period set by the relevant network, during which they cannot be withdrawn or redeployed.

2.4 Position management and reallocation. Only the components that are active under the configuration of the relevant LP strategy are used and monitored. Active positions may be adjusted or rebalanced as interest rates, asset prices, liquidity, collateral requirements, borrowing conditions, and market conditions change. Where permitted by the relevant strategy configuration, capital may be reallocated from one eligible component to another; this does not mean that all available components must be used at the same time.

3.1 Your result. Participant results are calculated in the Strategy Asset; rewards are calculated and accrued daily. A result may be positive or negative.

3.2 Costs the strategy bears. Trading, borrowing and execution costs. These reduce the strategy's result before anything is attributed to participants.

3.3 Fees and conditions. The fees, minimum amounts and withdrawal terms applicable to this strategy are set out in the strategy's conditions in the platform, and prevail over any figure repeated elsewhere.

3.4 Taxes. Any taxes arising from your participation are your responsibility, in accordance with the jurisdiction in which the company operates and your own. The company does not provide tax advice and does not determine your tax position.

Participation in the strategy involves risk. A participant may lose part or all of the funds allocated to the strategy. The relevance of each risk depends on the components actually used by the specific LP strategy. Descriptions of monitoring, limits and controls in this document describe how the strategy is designed to operate, not a promise that it will.

4.1 Lending market risk. Where lending markets are used, lending rates may decrease as borrowing demand and market utilisation change. Lending protocols may also experience bad debt, insufficient liquidity, withdrawal restrictions, or losses associated with borrower liquidations.

4.2 Protocol and smart contract risk. Where on-chain protocols or smart contracts are used, vulnerabilities, coding errors, configuration mistakes, governance risks, oracle failures, or malicious attacks may result in a partial or complete loss of funds.

4.3 Looping and leverage risk. Where looping is used, repeated borrowing and redeployment of assets may increase leverage. This may amplify borrowing costs, losses, collateral sensitivity, and liquidation risk.

4.4 Collateral and liquidation risk. A decline in collateral value, an increase in borrowing rates, or a change in collateral or margin requirements may require additional collateral or result in the partial or full liquidation of a position. Where Binance is used, the exchange may change its rules, including collateral valuation discounts (haircuts) and margin requirements, unilaterally and without notice. Where liquidation occurs, collateral may be sold in part or in full to repay borrowing, and a participant may receive back fewer units of the Strategy Asset than were allocated.

4.5 Wrapped and yield-bearing asset risk. Where wrapped or yield-bearing representations of the Strategy Asset are used, they may trade below the value of the underlying asset, lose their intended peg, become difficult to redeem, or be affected by smart contract, custodian, issuer, validator, protocol, or liquidity risks.

4.6 Interest-rate and incentive risk. Lending rates, borrowing costs, and protocol incentives may decrease, disappear, reverse, or become negative after applicable transaction and execution costs.

4.7 Staking risk. Where staking is used, staked assets may be subject to lock-up or unbonding periods set by the relevant network, during which they cannot be withdrawn or redeployed, including in adverse market conditions. Staking rewards may decrease or cease as network parameters change. Validator downtime or misbehaviour may result in penalties imposed by the network (slashing) that reduce the amount staked.

4.8 Exchange risk. Where Binance is used, the strategy is exposed to operational, cybersecurity, liquidity, custody, withdrawal, regulatory, and counterparty risks associated with the exchange.

4.9 Oracle risk. Where a protocol depends on oracle data, incorrect, delayed, manipulated, or unavailable data may cause incorrect asset valuations, failed transactions, improper liquidations, or other losses.

4.10 Blockchain and network risk. Where on-chain components are used, network congestion, blockchain failures, validator problems, governance decisions, increased transaction fees, or changes to protocol parameters may affect access to funds or strategy execution.

4.11 Liquidity risk. Limited liquidity, withdrawal restrictions, price slippage, delayed transactions, or unsuccessful rebalancing may negatively affect strategy performance.

4.12 Other risks, and past performance. The value and performance of the strategy may be affected by market, political, economic, credit, regulatory, operational, technological, and other conditions. Past performance is not a guarantee of future results.

5.1 Changes.
The company may change the parameters of the strategy. Activation, deactivation and reallocation between the components described in section 2 occur within the strategy's configuration as described in 2.4. Where Binance is used, the exchange values collateral at a discount it sets and may change unilaterally and without notice, and calculates margin requirements and liquidation under its own methodology; lending protocols and blockchain networks may change their terms and parameters under their own rules. The strategy's current conditions are shown in the platform.

5.2 Status of this description.
This description explains how the strategy operates. Your relationship with the company is governed by the User Agreement and the documents it incorporates, including the strategy's conditions in the platform; where this description differs from them, they prevail, and nothing here extends the company's obligations. It is a summary: it does not describe every feature of the strategy or every circumstance in which a loss may arise. Statements about how the strategy is designed to operate, how markets, protocols or venues behave and how third parties may act are the company's present understanding, not representations or warranties. Words such as "seeks", "intended" and "designed" describe objectives, not outcomes.

The strategy may use borrowed funds and operates on cryptocurrency exchanges and on-chain protocols, where positions can be liquidated. Deposit only an amount you could lose without it affecting your circumstances.

5.3 Definitions.

Strategy Asset — the asset a participant allocates to the strategy.

Component — one of the independent approaches the strategy may use: lending markets, looping, or staking.

Lending protocol — an on-chain protocol through which supplied assets are lent to borrowers in exchange for interest.

Utilisation — the share of assets supplied to a lending market that is currently borrowed.

Protocol incentives — rewards a protocol distributes to users who supply assets.

Bad debt — borrowing on a lending protocol that is not repaid and is not fully covered by the borrower's collateral.

Looping — repeatedly depositing collateral, borrowing against it, and redeploying the borrowed assets.

Wrapped / yield-bearing representation — a token that stands in for another asset; a yield-bearing one is designed to accrue yield to its holder.

Peg — the intended fixed relationship between a representation and its underlying asset.

Collateral — assets pledged to secure borrowing.

Discount (haircut) — the reduction an exchange applies to the market value of an asset when counting it as collateral.

Margin — the collateral value an exchange recognises as available to support open positions.

Stablecoin — a crypto asset designed to track the value of a fiat currency.

Staking — committing an asset to support the operation of its blockchain network in exchange for rewards.

Validator — a participant that operates a node on a blockchain network and to which staked assets are delegated.

Unbonding period — the period set by a blockchain network after a request to unstake, during which staked assets remain locked and cannot be withdrawn or redeployed.

Slashing — a penalty imposed by a blockchain network on staked assets when a validator fails to follow the network's rules.

Oracle — an external data feed on which an on-chain protocol relies.

Liquidation — the forced reduction or closing of positions and/or sale of collateral by an exchange or protocol under its own methodology when its collateral or margin requirements are not met.

Slippage — execution of an order at a worse price than expected at the time it was placed.