> For the complete documentation index, see [llms.txt](https://docs.vaultstreet.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.vaultstreet.com/legal/terms-of-service/vault-schedule-carry.md). # VAULT SCHEDULE — CARRY ## SCHEDULE 2 This Schedule 2 constitutes the Vault Schedule for the Carry Vault and forms part of the Terms of Service ("Terms") of Valiant Digital Assets Ltd. Capitalised terms used but not defined in this Schedule have the meanings given in the Terms. In the event of any inconsistency between this Schedule and the body of the Terms, the body of the Terms shall prevail. #### **1. Vault Identification**
Date of Schedule31 July 2026
Last Updated31 July 2026
Vault nameCarry Vault
Vault tokenVault Street Carry (CARRY)
Vault typeDiversified Higher Yield Credit and Market Neutral Vault
Smart contract address0xF05F7Ab9B05D9Dcf99B8E9bBAE8E5e4A3201D004
Blockchain networkEthereum mainnet (and/or such other network(s) as the Company may designate by updating this Schedule)
#### **2. Accepted Loaned Asset** The only accepted Loaned Asset for the Carry Vault is USD Coin (USDC) as issued by Circle Internet Financial, LLC. The Company may update the accepted Loaned Asset by amending this Schedule in accordance with the Terms. #### **3. Vault Token and Floating Net Asset Value** **CARRY is not a stablecoin.** The CARRY token represents a pro-rata claim on the Vault Pool. Its net asset value floats and is determined by reference to the value of the Eligible Underlyings held by the Vault Pool from time to time, less liabilities, accrued Protocol Fees and any adjustments made in accordance with Section 6 of the Terms. The Company makes no representation, and gives no undertaking, that: * the net asset value per CARRY token will be maintained at, or return to, any particular level; * CARRY will maintain any peg, parity or fixed relationship to the U.S. dollar, to USDC, or to any other asset; or * a User will receive on redemption an amount equal to or greater than the amount of the Loaned Asset originally deposited. The net asset value per CARRY token may decrease as well as increase, and may decrease materially and permanently, including as a result of credit losses in the underlying portfolio. A deposit into the Carry Vault is not a bank deposit, is not capital protected, and is not covered by any deposit insurance or investor compensation scheme in any jurisdiction. Users may lose some or all of the value of their Loaned Assets. References in this Schedule to net asset value per CARRY token mean NAV per Receipt Token as determined in accordance with Section 6 of the Terms. #### **4. Eligible Underlying Investments** The Carry Vault is designed to deploy Loaned Assets into the following categories of investment ("Eligible Underlyings"): * **Tokenised private credit facilities:** on-chain representations of interests in, or exposures to, secured or unsecured lending facilities extended to institutional borrowers, including without limitation digital asset trading firms, market makers and other financial intermediaries, whether structured as direct facilities, structured credit facilities, or interests in a lending pool or fund. The Company retains sole discretion to select, add, or remove facilities, originators and on-chain protocol integrations at any time without prior notice. * **Tokenised asset-backed credit:** on-chain representations of interests in portfolios of trade receivables, invoices, supply chain finance exposures, factoring facilities and similar short-duration self-liquidating credit assets. The Company retains sole discretion to select, add, or remove eligible issuers and on-chain integrations at any time without prior notice. * **Tokenised consumer and real estate secured credit:** on-chain representations of interests in portfolios of consumer loans, home equity lines of credit, mortgage-backed exposures and similar secured consumer credit instruments. The Company retains sole discretion to select, add, or remove eligible issuers and on-chain integrations at any time without prior notice. * **Tokenised payments and receivables financing:** on-chain representations of interests in facilities financing payment settlement, card receivables, remittance flows and similar payment-related working capital exposures. The Company retains sole discretion to select, add, or remove eligible issuers and on-chain integrations at any time without prior notice. * **Tokenised equipment and hardware collateralised credit:** on-chain representations of interests in lending facilities secured on physical or digital infrastructure assets, including without limitation computing hardware. The Company retains sole discretion to select, add, or remove eligible issuers and on-chain integrations at any time without prior notice. * **Market neutral basis and carry strategies:** long positions in spot, listed instruments, futures, or other derivatives hedged with corresponding short positions in futures, perpetual futures or other derivatives, executed on regulated and unregulated venues, and managed either internally by the Company or by one or more external managers appointed by the Company. The Company retains sole discretion to select, add, or remove strategies, external managers and execution venues at any time without prior notice. * **Tokenised T-Bill MMFs and investment grade fixed income funds:** on-chain representations of interests in money market funds whose portfolios consist primarily of short-term U.S. Treasury bills, and in funds or exchange-traded products whose portfolios consist primarily of investment grade fixed income instruments, held for liquidity management, collateral or defensive allocation purposes. The Company retains sole discretion to select, add, or remove providers and on-chain protocol integrations at any time without prior notice. * **Lending market collateral positions:** Eligible Underlyings deposited as collateral on one or more DeFi lending protocols selected by the Company at its discretion for the purpose of generating a leveraged yield spread. The Company retains sole discretion to select, add, or remove lending protocol integrations without prior notice. * **Liquidity Reserve assets:** USDC and/or other liquid stablecoins. The Company may add or remove categories of Eligible Underlyings by updating this Schedule with not less than five (5) calendar days' notice published on the Platform, except where an immediate change is required by applicable Law, in which case the Company may act immediately and shall provide notice as soon as reasonably practicable. #### **5. Strategy Description** The Carry Vault pursues a diversified credit and market neutral carry strategy as follows: (a) USDC deposited by Users is deployed across a portfolio of Eligible Underlyings selected by the Company at its discretion, with the objective of generating a return in excess of that available from short-term U.S. Treasury exposure by accepting credit risk, liquidity risk and counterparty risk. No level of return is targeted, promised or guaranteed. (b) A Liquidity Reserve is maintained in USDC and/or other liquid assets for the purpose of supporting redemptions in the ordinary course. The size of the Liquidity Reserve is determined by the Company by reference to the redemption profile of the underlying portfolio and an internal stress assumption on redemption demand. (c) Eligible Underlyings may be deposited as collateral on selected DeFi lending protocols to borrow additional USDC or other eligible stablecoins at the prevailing variable market rate, and the borrowed assets may be redeployed into Eligible Underlyings, with variable leverage ratios, but subject to the Target Leverage Ratio. (d) Market neutral strategies may be executed by the Company directly or through one or more external managers, with assets held at third-party custodians, prime brokers, or trading venues, whether regulated or unregulated. (e) Net yield generated by the strategy, less applicable Protocol Fees, is reflected in the value of the Vault Pool and accrued proportionally to Users' claims. #### **6. Leverage Parameters** Target Leverage Ratio: 4x The Target Leverage Ratio represents a guideline ratio and not a commitment. Actual leverage will vary based on market conditions and the Company's risk management decisions. Leverage may be reduced or eliminated at any time without notice. #### **7. Valuation**
Valuation PointDaily, as at 12:00 UTC
ReconciliationWeekly, on each Wednesday, or where that day is not a Business Day, the immediately following Business Day
Primary valuation sourcesNet asset values, marks, statements and reports supplied by the issuer, sponsor, investment manager or administrator of each Eligible Underlying; for positions held on lending protocols and trading venues, on-chain and venue-reported balances; for Liquidity Reserve assets, prevailing market price or oracle price
Stale valuation periodA valuation is treated as stale where it has not been refreshed within 10 Business Days after the date on which the relevant issuer, sponsor, investment manager or administrator is scheduled or reasonably expected to publish an updated valuation, or, where no such date is identifiable, within 45 days of the date as at which the most recent valuation was determined
PublicationNAV per Receipt Token published on the blockchain network
The determination of Net Asset Value, the application of adjustments, the designation of Excluded Assets and the suspension of valuation are governed by Section 6 of the Terms. The determination of Net Asset Value in respect of a Valuation Point may be performed after that Valuation Point, and takes effect as at that Valuation Point. In determining Net Asset Value as at a Valuation Point, the Company uses, in respect of each asset or position, the most recent valuation available to it as at that Valuation Point, which may have been determined as at an earlier date. Users should note that valuations of Eligible Underlyings are supplied by third parties on their own methodologies and schedules, that the frequency with which an underlying valuation is refreshed may be less frequent than the Valuation Point, and that Net Asset Value determined at a Valuation Point may therefore incorporate marks which are not contemporaneous. **Smoothing.** The Company determines NAV per Receipt Token on a smoothed basis in respect of income only. Net income identified at a Reconciliation is reflected in NAV per Receipt Token progressively over the period to the following Reconciliation, rather than in a single step. Any reduction in the value of the Vault Pool, including any adjustment made under Section 6 of the Terms, any impairment, write-down, default or loss, and the designation of any Excluded Asset, is reflected in full at the Valuation Point at which it is determined and is not smoothed. Accordingly, NAV per Receipt Token at any Valuation Point may be lower than, and will not exceed, the amount that would result from dividing Net Asset Value determined at that time by the number of Receipt Tokens then in issue. Users depositing or redeeming between Reconciliations transact at the NAV per Receipt Token then applicable, and no adjustment is made in respect of the difference. The Company may amend or discontinue the smoothing methodology, and the frequency of Reconciliation, at any time. #### **8. Fees**
Protocol fee1.0% per annum of Net Asset Value, excluding any Excluded Asset, accrued daily and deducted from the Vault Pool
Performance fee10% of the increase in net asset value per CARRY token, subject to a high watermark, such that no Performance fee is payable until the net asset value per CARRY token exceeds the highest net asset value per CARRY token at which a Performance fee was previously crystallised.
Basis: return net of the Protocol fee.
Hurdle: 0%.
Crystallisation: Monthly
Withdrawal feeNone
Other feesSubject to any new fee types introduced in accordance with the Fee Change mechanics in the Terms
Fees and expenses charged at the level of an underlying fund, facility, external manager or trading venue are borne by the Vault Pool in addition to the fees stated above and are reflected in the net asset value of the relevant Eligible Underlying. Such fees are not rebated to Users and are not included in the fee levels stated in this Section. #### **9. Withdrawal / Redemption Terms** | Redemption structure | Epoch-based with a stated notice deadline and settlement date | | ------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | Redemption Request Cut-Off Time | 00:00 UTC on the 27th day of the month | | Settlement Period | Redemptions are processed by no later than the 5th day of a calendar month (the ”Redemption Settlement Target”) immediately following the month in which the redemption request has been submitted, provided that such redemption request has been submitted by no later than the Redemption Cut-off Time | | Extended processing | Up to 20 Business Days after the relevant Redemption Settlement Target in periods of elevated redemption volumes, market stress, or Force Majeure Events | | Minimum redemption amount | None | | Express redemption | For aggregate redemptions not exceeding 10% of Net Asset Value in the specific calendar month: processed on a best efforts basis by the next Business Day. This target is non-binding and subject to available Vault liquidity at the time of the request | | Redemption pricing | NAV per Receipt Token determined as at the latest Valuation Point falling on or before the date on which the redemption is processed | | Redemption currency | USDC | **Suspension.** The Company may suspend the determination of Net Asset Value and redemptions in respect of the Carry Vault in the circumstances set out in Section 6 of the Terms. All redemption obligations are limited to the User's pro-rata share of the Vault Pool at the time of processing and are subject to the limited recourse and extinguishment provisions of the Terms. Processing timelines are non-binding operational targets only. #### **10. Vault-Specific Risk Factors** The Carry Vault's strategy involves deploying USDC into a diversified portfolio of credit and market neutral exposures, including private credit facilities, asset-backed and receivables-backed credit, secured consumer credit, hardware-collateralised credit, and hedged basis positions, and may involve using those positions as collateral to borrow additional assets on DeFi lending markets. This creates a distinct set of economic, credit, liquidity, valuation and operational risks that are additional to, and separate from, the smart contract and operational risks described elsewhere in the Terms. These risks include, but are not limited to, the following: **No Peg and Floating Net Asset Value.** As set out in Section 3, CARRY is not a stablecoin and carries no expectation of redemption at par. The net asset value per CARRY token may fall below the value of the Loaned Assets deposited by a User, and any such fall may be permanent. Users should not treat CARRY as a cash-equivalent or store-of-value instrument. **Credit Risk and Risk of Principal Loss.** A substantial portion of the Vault Pool is exposed to the creditworthiness of private borrowers, originators and facility sponsors. These exposures are not government obligations, are generally unrated, and in many cases are not secured, or are secured only on assets whose value is itself volatile or difficult to realise. A default, restructuring, fraud, or deterioration in the credit quality of an underlying borrower or originator will reduce the value of the Vault Pool and may result in a permanent loss of principal to Users. Historic performance of an originator or facility is not indicative of future performance. **Private Credit Opacity and Idiosyncratic Risk.** Private credit exposures are typically not traded on any market, are valued infrequently, and carry limited public disclosure. The Company's assessment of an exposure depends substantially on information provided by the originator or issuer, which may be incomplete, delayed, or inaccurate. Losses may become apparent only after a material delay, and may crystallise abruptly rather than progressively. **Recovery, Enforcement and Insolvency Risk.** Where an underlying borrower defaults, recovery depends on off-chain enforcement against collateral or claims in jurisdictions which may be slow, costly, or unfavourable to creditors. The Vault Pool may hold an indirect interest through a tokenised wrapper rather than a direct contractual claim against the underlying borrower. In the insolvency of an intermediate issuer, servicer or special purpose vehicle, the Vault Pool may rank behind other creditors, may have no proprietary claim to underlying assets, and may recover substantially less than the carrying value of its position, or nothing. **Liquidity Mismatch and Suspension Risk.** The Carry Vault's liabilities to Users are subject to the redemption terms in Section 9, while its assets are subject to the redemption terms of the underlying issuers, which are typically weekly, monthly, or longer, and which may themselves be gated or suspended. This mismatch is inherent to the strategy. In periods of elevated redemption demand or market stress, the Liquidity Reserve may be exhausted, and redemptions may be delayed for extended periods or suspended entirely. A User may be unable to exit at a time of their choosing, and may be compelled to remain exposed to a deteriorating portfolio. **Valuation Risk and Net Asset Value Asymmetry.** Many Eligible Underlyings are valued by reference to marks produced by the issuer, its administrator, or an oracle, rather than by observable market prices. Such marks may be stale, may be produced on differing methodologies, and may be systematically optimistic, in particular where a position is impaired but has not yet been written down. Certain instruments publish valuations on an asymmetric basis, recognising accrued income promptly while recognising credit deterioration only on realisation. Users who deposit or redeem at a net asset value that is subsequently shown to have been overstated or understated bear the consequences of that inaccuracy, and no adjustment or compensation will be made. **Adjustment and Deferred Repayment Risk.** The Company may apply haircuts, discounts or alternative valuations to positions, and may designate impaired positions as Excluded Assets, in each case in accordance with Section 6 of the Terms. The application of any such adjustment will reduce the net asset value per CARRY token immediately and may do so materially. A User redeeming after an adjustment receives the adjusted value, notwithstanding that a higher value may subsequently be recovered. Where a position has been designated as an Excluded Asset, the portion of the amount otherwise payable to a User which is attributable to that position is deferred, and becomes payable only if and when that position is realised, which may be after a substantial delay or not at all. A User whose CARRY is repaid after a designation remains entitled to its Deferred Amount but receives no value in respect of the Excluded Asset at the time of repayment. Holders of CARRY may accordingly hold differing total entitlements depending on whether they held CARRY at the time of designation. **Counterparty, Venue and Custody Risk.** The Vault Pool's assets and positions are held with or through third parties, including tokenisation platforms, fund administrators, custodians, prime brokers, centralised and decentralised trading venues, and external managers. The failure, insolvency, fraud, operational breakdown, or regulatory suspension of any such party may result in the loss of assets, the inability to close or transfer positions, or an extended freeze of assets. Assets held on unregulated venues may not be segregated from the assets of the venue and may not be recoverable in an insolvency. **Market Neutral Strategy Risk.** Strategies described as market neutral are hedged, not riskless. Returns depend on the persistence of a favourable basis or funding rate, which may compress, invert, or turn negative. Hedges may fail to perform as intended because of divergence between the hedged instruments, differences in settlement or margin mechanics between venues, exchange downtime, oracle failure, or the imposition of position limits. A sharp price movement may trigger margin calls or forced liquidation of one leg of a position while the offsetting leg remains open, converting a hedged position into a directional one and producing losses substantially in excess of the expected return of the strategy. **Floating Rate Risk on Underlying Assets.** A portion of the Vault's assets generate yields that are variable, whether linked to SOFR, to a central bank policy rate, or to another floating reference rate. T-Bill MMF positions track short-term U.S. Treasury rates, which are set by macroeconomic conditions and central bank policy. A decline in the applicable reference rate will directly reduce the yield generated by the relevant asset and will reduce the return available to Users. **Floating Rate Risk on Borrowings.** The borrowing rates on DeFi lending markets are variable and are determined algorithmically by on-chain supply and demand dynamics. Rates can rise sharply and rapidly in response to periods of market stress, elevated utilisation of lending pools, or changes in protocol risk parameters. A material increase in borrowing costs will reduce the net yield available to Users and may cause the Vault's strategy to become unprofitable. The Vault does not guarantee any fixed spread between its asset yield and its cost of borrowing, and both may move independently and adversely at the same time. **Leverage Risk.** The use of leverage amplifies both potential returns and potential losses. The Vault's leveraged positions are subject to maintenance margin and loan-to-value requirements on DeFi lending protocols. If the value of collateral declines relative to outstanding borrowings, whether due to credit deterioration, spread widening, de-peg, rate movements, or protocol parameter changes, the Vault may be subject to forced partial or full liquidation of its collateral at prevailing market prices. **Stablecoin and USD-Neutral Asset De-Peg Risk.** The Vault holds, and may borrow, USDC and/or other stablecoins whose on-chain value may deviate from their USD peg. Short-term peg deviations affect the effective cost of borrowing and net yield. The Vault may also interact with assets described as "USD-neutral" or designed to maintain a one-to-one peg with the U.S. dollar. Any deviation of such an asset from a value of one U.S. dollar, whether due to redemption gate events, reserve insufficiency, smart contract failure, regulatory action, or general market dislocation, will directly affect the net asset value of the Vault and may cause losses to Users. In severe de-peg scenarios, the Vault's collateral value may fall below the value of its outstanding borrowings, triggering forced liquidations. Users should note that "USD-neutral" or "stablecoin" labelling provides no guarantee of value stability. **Regulatory Risk in Respect of Underlying Assets.** The underlying credit assets and their originators are subject to regulation in multiple jurisdictions, including in relation to lending, consumer credit, securities offerings and the regulatory treatment of tokenised instruments. Regulatory change or enforcement action affecting an originator, issuer or venue may impair the value, transferability or redeemability of an Eligible Underlying, or may require the Vault to dispose of a position at an unfavourable price. #### **11. Amendments to this Schedule** The Company may amend this Schedule at any time by publishing an updated version on the Platform. Material amendments will be subject to the notice periods specified in the relevant sections above or, where not specified, to the general fee change mechanics in the Terms. Non-material amendments (including but not limited to typographical corrections, smart contract address updates following a migration, and administrative details) may be made immediately upon publication. Your continued use of the Carry Vault after the effective date of any amendment constitutes acceptance of the amended Schedule.