> 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-primeusd.md).

# VAULT SCHEDULE — primeUSD

## SCHEDULE 1

This Schedule 1 constitutes the Vault Schedule for the primeUSD 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

<table data-header-hidden><thead><tr><th width="229.89453125"></th><th></th></tr></thead><tbody><tr><td>Date of Schedule</td><td>2 June 2026</td></tr><tr><td>Last Updated</td><td>31 July 2026</td></tr><tr><td>Vault name</td><td>primeUSD</td></tr><tr><td>Vault type</td><td>Leveraged Investment Grade Yield Vault</td></tr><tr><td>Smart contract address</td><td>0x7ea76108975ec0998b9bc2db04b4eca986400dd7</td></tr><tr><td>Blockchain network</td><td>Ethereum mainnet (and/or such other network(s) as the Company may designate by updating this Schedule)</td></tr></tbody></table>

#### 2. Accepted Loaned Asset

The only accepted Loaned Asset for the primeUSD 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. Eligible Underlying Investments

The primeUSD Vault is designed to deploy Loaned Assets into the following categories of investment (“Eligible Underlyings”):

* **Tokenised T-Bill MMFs:** on-chain representations of interests in money market funds whose portfolios consist primarily of short-term U.S. Treasury bills (including, without limitation, U.S. Treasury bills with a remaining maturity of 397 days or less and repurchase agreements collateralised by U.S. Treasuries). The Company retains sole discretion to select, add, or remove T-Bill MMF providers and on-chain protocol integrations at any time without prior notice.
* **Tokenised investment grade fixed income funds:** on-chain representations of interests in funds or exchange-traded products whose portfolios consist primarily of investment grade fixed income instruments, including without limitation AAA-rated collateralised loan obligation (CLO) tranches and other short-duration investment grade credit instruments. The Company retains sole discretion to select, add, or remove eligible funds and on-chain integrations at any time without prior notice.
* **Lending market collateral positions:** T-Bill MMF interests, investment grade fixed income fund interests, and other 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.

#### 4. Strategy Description

The primeUSD Vault pursues a leveraged carry strategy as follows:

(a) USDC deposited by Users is deployed into a collateral basket consisting of one or more Eligible Underlyings, including tokenised T-Bill MMFs and tokenised investment grade fixed income funds, to generate a base yield. The composition of the collateral basket is determined by the Company at its discretion.

(b) Eligible Underlyings are deposited as collateral on selected DeFi lending protocols to borrow additional USDC or other eligible stablecoins at the prevailing variable market rate.

(c) Loaned Assets are re-deployed into Eligible Underlyings, with variable leverage ratios, but subject to the Target Leverage Ratio, to amplify the yield spread between the return on collateral assets and borrowing costs.

(d) 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.

#### 5. Leverage Parameters

Target Leverage Ratio:  8x (indicative operating target; may vary based on market conditions)

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.

#### **6. Valuation**

<table data-header-hidden><thead><tr><th width="233.9609375"></th><th></th></tr></thead><tbody><tr><td>Valuation Point</td><td>Daily, as at 12:00 UTC</td></tr><tr><td>Reconciliation</td><td>Weekly, on each Wednesday, or where that day is not a Business Day, the immediately following Business Day</td></tr><tr><td>Primary valuation sources</td><td>Net asset values published by the issuer or administrator of each Eligible Underlying; on-chain reads of positions held on lending protocols; prevailing market price, or oracle price, for stablecoins and Liquidity Reserve assets</td></tr><tr><td>Stale valuation period</td><td>A valuation is treated as stale where it has not been refreshed within 5 Business Days of the date as at which the most recent valuation was determined</td></tr><tr><td>Publication</td><td>NAV per Receipt Token published on the blockchain network</td></tr></tbody></table>

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.

In determining Net Asset Value, borrowings denominated in stablecoins and other USD-neutral assets may be valued at parity with the U.S. dollar rather than at prevailing market price, with the resulting variance addressed through the Stability Buffer in accordance with Section 9 of the Terms.

**Smoothing.** The Company determines NAV per Receipt Token on a smoothed basis. Net changes in Net Asset Value identified at a Reconciliation, whether positive or negative, are reflected in NAV per Receipt Token progressively over the period to the following Reconciliation, rather than in a single step. Accordingly, NAV per Receipt Token at any Valuation Point may be higher or lower than the amount that would result from dividing Net Asset Value determined at that time by the number of Receipt Tokens then in issue, and may remain higher for the remainder of the period following a Reconciliation at which a loss or reduction in value was identified. Users depositing or redeeming between Reconciliations transact at the smoothed 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.

#### 7. Fees

<table data-header-hidden><thead><tr><th width="189.37890625"></th><th></th></tr></thead><tbody><tr><td>Protocol fee</td><td>0.5% per annum of Net Asset Value, accrued daily and deducted from the Vault Pool</td></tr><tr><td>Performance fee</td><td>None</td></tr><tr><td>Withdrawal fee</td><td>None</td></tr><tr><td>Other fees</td><td>Subject to any new fee types introduced in accordance with the Fee Change mechanics in the Terms</td></tr></tbody></table>

#### 8. Withdrawal / Redemption Terms

<table data-header-hidden><thead><tr><th width="272.359375"></th><th></th></tr></thead><tbody><tr><td>Standard processing target</td><td>5 Business Days from receipt of a valid redemption request</td></tr><tr><td>Extended processing</td><td>Up to 20 Business Days in periods of elevated redemption volumes, market stress, or Force Majeure Events</td></tr><tr><td>Minimum redemption amount</td><td>None</td></tr><tr><td>Express redemption</td><td>For aggregate redemptions not exceeding 10% of Net Asset Value at the time of the request: processed on a best efforts basis by the next Business Day, but no later than the Standard processing target. This target is non-binding and subject to available Vault liquidity at the time of the request</td></tr><tr><td>Redemption currency</td><td>USDC</td></tr><tr><td>Redemption pricing</td><td>NAV per Receipt Token determined as at the Valuation Point applicable on the date the redemption request is validly submitted on the Platform</td></tr></tbody></table>

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.

#### 9. Vault-Specific Risk Factors

The primeUSD Vault's strategy involves deploying USDC into a collateral basket consisting of tokenised T-Bill money market funds (T-Bill MMFs) and tokenised investment grade fixed income funds, including AAA-rated CLO tranches. The strategy also involves using those positions as collateral to borrow additional assets on DeFi lending markets, with the aim of generating a leveraged yield spread. This creates a distinct set of economic and market 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:

**Floating Rate Risk on Collateral Assets.** The Vault's collateral assets generate yields that are variable. T-Bill MMF positions track short-term U.S. Treasury rates, which are set by macroeconomic conditions and central bank policy. Investment grade fixed income positions, including AAA CLO tranches, generate floating rate returns linked to SOFR, which similarly fluctuates with market conditions. A decline in either T-Bill yields or SOFR will directly reduce the yield generated by the relevant collateral. Because the Vault's net return depends on the spread between the yield on collateral assets and the cost of borrowings, any reduction in T-Bill yields compresses that spread and reduces or eliminates returns to Users, potentially resulting in a net loss.

**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.

**Credit Risk.** A portion of the Vault's collateral basket may be allocated to structured credit instruments, including AAA-rated CLO tranches and other investment grade fixed income instruments. Unlike U.S. Treasury bills, these instruments represent exposure to corporate credit rather than government debt. While AAA-rated CLO tranches benefit from structural subordination and have historically experienced near-zero credit losses, their market value can decline materially in periods of credit stress, market illiquidity, or spread widening, even in the absence of actual credit losses. A decline in the market value of these instruments reduces the Vault's collateral value and may increase the risk of forced deleveraging or liquidation.

**Stablecoin and USD-Neutral Asset De-Peg Risk.** The Vault borrows 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 Stability Buffer aims to smooth these effects but provides no guarantee of stable distributions. 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, including on-chain representations of T-Bill MMF shares. 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.

**Fund Wrapper and Redemption Risk.** Tokenised T-Bill MMFs and investment grade fixed income funds are on-chain representations of interests in underlying funds or exchange-traded products. Access to the underlying assets depends on the redemption mechanics and operational continuity of the relevant fund issuer and their on-chain infrastructure. If an underlying fund imposes redemption gates, suspends redemptions, experiences a material loss, or becomes subject to regulatory action, the on-chain token representing that interest may trade at a significant discount or become temporarily or permanently illiquid. The Vault's ability to meet User withdrawal requests may be impaired if collateral positions cannot be redeemed in a timely manner.

**Spread Compression and Negative Carry Risk.** The Vault's net yield is the spread between the blended yield on deployed collateral assets and the cost of borrowed funds. This spread may compress to zero or become negative — a condition known as negative carry — if borrowing rates rise faster than collateral yields, or if collateral yields fall faster than borrowing costs. In a negative carry environment, the Vault's strategy will generate a loss rather than a return, eroding the value of Loaned Assets over time. The Company does not guarantee that the spread will remain positive at any time.

**Leverage and Liquidation Cascade 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 T-Bill MMF de-peg, CLO spread widening, rate movements, or protocol parameter changes — the Vault may be subject to forced partial or full liquidation of its collateral at prevailing market prices. Liquidation events can be cascading: a liquidation that depresses collateral asset prices may trigger further liquidations across the DeFi ecosystem, amplifying losses. Users may receive less than the value of their Loaned Assets in a liquidation scenario.

**Lending Market Liquidity and Protocol Parameter Risk.** DeFi lending protocols may at any time modify their risk parameters, including maximum loan-to-value ratios, liquidation thresholds, and collateral eligibility. Such changes may force the Vault to deleverage rapidly and may restrict the ability to deploy or maintain positions in T-Bill MMFs or investment grade fixed income instruments as eligible collateral. If liquidity in the relevant lending market is insufficient, unwinding positions may result in significant price impact and losses. The Company has no control over the governance decisions of third-party lending protocols and cannot guarantee that the Vault's strategy will remain viable if such parameters change.

#### 10. 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 primeUSD Vault after the effective date of any amendment constitutes acceptance of the amended Schedule.