Your v$ Loan Has Expired - But You Have a Second Chance

Your Booster was not repaid before its expiry date and has now expired.

As a result, any VOW associated with your expired Booster has been transferred to the collateral pool that supports v$ in circulation.

However, you are now eligible to claim a Second Chance Option - completely free of charge.

There is no charge to claim your Second Chance Option. However, if the option progresses and you later choose to exercise it to receive the underlying VOW, you will be required to repay the original v$ amount plus an 18% contract fee in v$.

How the Second Chance Option Works

1. Your New Option Is Created

When you claim your free Second Chance Option, a new option will be created for the same number of v$ that you originally borrowed and did not repay.

There is no additional borrowing or payment required to claim the Second Chance Option itself.

2. Your Position Joins the Options Queue

The corresponding v$ will be minted and your position will be added to the end of the Options Queue.

There is no guaranteed date or time for your position to reach the front of the queue.

The length of time this takes will depend on the positions ahead of you and the operation of the protocol.

3. Your v$ Will Only Enter the Market When v$ Is Above $0.75

Reaching the front of the Options Queue does not automatically mean that your v$ will enter the market.

Once your position reaches the front of the queue, it becomes eligible to proceed only when the market price of v$ is above $0.75.

If the market price of v$ is $0.75 or below, your position will wait until the required price condition is met.

There is no guarantee that v$ will trade above $0.75, or when this may occur.

4. The v$ Purchases VOW

When your position is at the front of the Options Queue and v$ is trading above $0.75, the v$ allocated to your Second Chance Option will enter the market and be used to purchase VOW at the prevailing market price.

The amount of VOW purchased will therefore depend on the market price and available liquidity at the time the transaction takes place.

5. The Purchased VOW Is Locked for 367 Days

Once the VOW has been purchased, it will be locked by the smart contract for 367 days.

The 367-day period does not begin when you claim your Second Chance Option.

It begins only once:

• your position has reached the front of the Options Queue;
• the market price of v$ is above $0.75;
• the allocated v$ has entered the market;
• VOW has been purchased; and
• that VOW has been locked by the smart contract.

6. After 367 Days, You Can Choose Whether to Claim the VOW

At the end of the 367-day lock period, you will have the option to repay:

the original v$ amount + an 18% contract fee, payable in v$.

If you make this payment in accordance with the smart contract, you will receive the VOW purchased by and held against your Second Chance Option.

Exercising the option is your choice. You should consider the value of the VOW available to you and the cost of obtaining the v$ required to exercise the option before deciding whether to proceed.

7. There Is No Third Chance

If you do not exercise your Second Chance Option within the period specified by the smart contract, you will lose your right to claim the underlying VOW.

No further Third Chance Option will be issued.

Important Information

Your Second Chance Option is free to claim.

This does not mean that the VOW will ultimately be provided to you for free.

To receive the VOW purchased by the Second Chance Option, you must successfully reach the exercise stage and then repay the original v$ amount plus the 18% contract fee in v$.

There is no guarantee:

• when your position will reach the front of the Options Queue;
• that v$ will be trading above $0.75 when it does;
• when the $0.75 price condition will subsequently be met;
• what price VOW will be purchased at;
• how much VOW will be purchased;
• what that VOW will be worth after 367 days; or
• that exercising the option will be economically beneficial to you.

Important Risk Disclosure

Please read the following carefully before claiming your Second Chance Option.

The Second Chance Option operates through digital assets, decentralized infrastructure and automated smart contracts. Participation involves significant risks.

There is no guarantee that claiming a Second Chance Option will result in you receiving VOW, making a profit, or recovering the value of your original Booster.

Options Queue & Timing Risk

Your Second Chance Option will be added to the end of the Options Queue.

There is no guaranteed date or time by which your position will reach the front of the queue.

The time required will depend on positions ahead of yours, protocol activity and applicable market conditions.

Your option could therefore remain in the queue for an extended period.

$0.75 Market-Price Condition

Even when your position reaches the front of the Options Queue, the allocated v$ will only enter the market when the market price of v$ is above $0.75.

If v$ is trading at $0.75 or below, the transaction will not proceed until the required market-price condition is satisfied.

There is no guarantee that v$ will trade above $0.75 in the future, or when it will do so.

Consequently, there is no guarantee that your Second Chance Option will ever progress to the VOW purchase and 367-day lock stage.

VOW Purchase-Price Risk

When both the queue and v$ price conditions have been satisfied, the v$ allocated to your position will be used to purchase VOW at the prevailing market price.

The price of VOW can fluctuate substantially.

The amount of VOW acquired by your Second Chance Option will therefore depend on the market price and available liquidity at the time the transaction is executed.

You do not know in advance how much VOW your option will acquire.

367-Day Lock Risk

Once VOW has been purchased, it will be locked by the smart contract for 367 days.

During this period, you cannot access, sell or otherwise use the locked VOW through the Second Chance Option.

The market value of VOW may increase or decrease substantially during this period.

You will therefore be exposed to changes in the market value of VOW throughout the 367-day lock.

Exercise & Repayment Risk

At the end of the 367-day lock period, receiving the underlying VOW is optional and not automatic.

To exercise your option, you must repay:

the original v$ amount + an 18% contract fee, payable in v$.

You will therefore need to hold or obtain sufficient v$ to exercise the option.

The market price, availability and liquidity of v$ at that time cannot be predicted or guaranteed.

The economic cost of acquiring the necessary v$ could therefore be materially different from its value when you originally claimed your Second Chance Option.

The VOW May Be Worth Less Than the Cost of Exercising Your Option

There is no guarantee that the VOW available to claim at the end of the 367-day period will be worth more than, or even as much as, the economic cost of the v$ required to exercise your option.

VOW could increase or decrease substantially in value during the lock period.

You should therefore independently assess whether exercising your option makes economic sense at the time.

The existence of the option does not mean that exercising it will necessarily be beneficial.

Failure to Exercise - No Third Chance

If you do not exercise your Second Chance Option within the period permitted by the smart contract, you will lose your right to claim the VOW associated with that option.

There is no Third Chance Option.

You should not assume that another opportunity will be provided if you fail to exercise your Second Chance Option.

Liquidity & Slippage Risk

VOW and v$ are digital assets whose liquidity may vary significantly.

During periods of limited liquidity, it may be difficult to buy or sell tokens at the displayed market price.

Limited liquidity, rapid market movements and other market conditions may affect the price at which transactions are executed and the amount of VOW purchased.

A quoted or displayed market price does not guarantee that a transaction can be completed at exactly that price.

Smart Contract & Technology Risk

The TLN Protocol and Second Chance Option operate through automated smart contracts and decentralized infrastructure.

Smart contracts may contain undiscovered bugs, vulnerabilities, coding errors or unintended behaviours.

Blockchain networks and related infrastructure may also experience congestion, outages, exploits, forks or other technical problems.

These events could delay transactions, prevent transactions from executing as expected or result in a partial or total loss of digital assets.

There is no guarantee that any smart contract will operate without error or remain immune from exploitation.

Tokenomics & Protocol Risk

v$, VOW and other TLN Protocol assets operate according to protocol rules and tokenomics which may include minting, burning, collateralisation, locking and other mechanisms.

These mechanisms may affect token supply, liquidity, availability and market value.

Transactions involving protocol assets may also be subject to applicable burn or other tokenomic mechanisms in force at the time of the transaction.

You should understand the applicable token mechanics before participating.

Protocol Changes

The TLN Protocol may undergo upgrades, governance decisions or parameter changes over time.

These changes may alter aspects of the protocol or its economic characteristics, subject to the rules governing those changes.

Where applicable, changes could affect how protocol assets, smart contracts or associated functionality operate.

Market & Volatility Risk

Digital assets can experience extreme price volatility.

The market value of VOW, v$, v£, v€, vUSD, TLN and other protocol-related assets may increase or decrease significantly over very short periods.

A digital asset may also become substantially less valuable or illiquid.

Historical prices or performance should not be regarded as an indication or guarantee of future value.

Regulatory & Compliance Risk

Digital assets, decentralized finance and smart-contract arrangements operate within an evolving legal and regulatory environment.

Changes in laws, regulations, taxation, enforcement practices or regulatory interpretation may affect your ability to access or use the TLN Protocol, Second Chance Option or associated digital assets.

The legal and regulatory treatment may also differ substantially between jurisdictions.

Tax Risk

Transactions involving digital assets may have tax consequences depending upon your circumstances and jurisdiction.

Claiming, acquiring, disposing of or exchanging digital assets may potentially create tax liabilities.

You are responsible for determining the tax treatment applicable to your own circumstances and should obtain independent professional advice where appropriate.

No Guaranteed Return

The Second Chance Option does not provide a guaranteed return, yield, profit or fiat value.

Neither the amount nor the future market value of VOW that may ultimately become available to you is guaranteed.

The Second Chance Option should not be interpreted as a promise that you will recover the value of your expired Booster, your previous collateral or any VOW previously associated with it.

User Responsibility

You are responsible for understanding how the Second Chance Option, v$, VOW and the TLN Protocol operate before participating.

You should conduct your own research (DYOR) and consider whether participation is appropriate for you.

You are also responsible for:

• maintaining access to your wallet;
• protecting your wallet credentials and private keys;
• understanding the smart contracts and token mechanics with which you interact; and
• ensuring that you have sufficient v$ available if you subsequently choose to exercise your Second Chance Option.

TLN Protocol does not provide custodial services and cannot recover lost private keys or restore access to a self-custodied wallet.

Risk Acknowledgement

By claiming your free Second Chance Option, you acknowledge and accept that:

• your Second Chance Option may remain in the Options Queue for an indefinite period;
• there is no guaranteed date or time when your position will reach the front of the queue;
• reaching the front of the queue does not itself cause the transaction to proceed;
• the allocated v$ will only enter the market when v$ is trading above $0.75;
• there is no guarantee that the $0.75 market-price condition will be satisfied within any particular timeframe, or at all;
• the amount of VOW ultimately purchased cannot be known in advance;
• the market value of that VOW is not guaranteed;
• any VOW purchased will be locked for 367 days;
• the 367-day period only begins after the queue and market-price conditions have been satisfied and VOW has actually been purchased and locked;
• you cannot access the VOW during the 367-day lock period;
• exercising your option requires repayment of the original v$ amount plus an 18% contract fee in v$;
• the cost or availability of the v$ required to exercise your option cannot be predicted;
• the VOW available at the end of the contract may be worth less than the economic cost of exercising your option;
• exercising your option may therefore not be economically beneficial;
• failure to exercise the Second Chance Option within the applicable period means you will lose your right to the underlying VOW;
• there will be no Third Chance Option; and
• you could ultimately receive nothing from your Second Chance Option.