Over-Lending Agreement

1Key Definitions and Interpretation

The terms below carry the meanings given here wherever they appear in this Over-Lending Agreement. Where a term is defined in the New One User Agreement and not redefined here, the User Agreement definition applies.

Agreement

This Over-Lending Agreement, comprising the Service Terms in Part I and the Risk Disclosure Statement in Part II, together with any supplemental terms we publish and identify as forming part of it.

Lending Protocol

A third-party set of Smart Contracts deployed to a Blockchain that accepts deposits of Digital Assets, issues over-collateralized loans against them, and enforces its own interest, collateral, and liquidation rules. We do not operate, control, or govern any Lending Protocol.

Interface

The screens, connection flows, and transaction-construction features within New One through which you may discover a Lending Protocol, review its published parameters, and sign transactions addressed to it.

Collateral

Digital Assets you commit to a Lending Protocol to secure a borrowing position. Collateral remains recorded on-chain under the control of that protocol's Smart Contracts, not under ours.

Over-Collateralization

The requirement, imposed by a Lending Protocol, that the value of your Collateral exceed the value of your outstanding borrowings by a margin the protocol defines.

Collateralization Ratio

The ratio of the value of your Collateral to the value of your outstanding borrowings, as calculated by the relevant Lending Protocol using its own price sources.

Health Factor

A protocol-specific figure expressing how far a position sits from its liquidation threshold. The method of calculation is set by the protocol and may differ between protocols.

Liquidation Threshold

The Collateralization Ratio at or below which a Lending Protocol permits any third party to repay part or all of your borrowings and seize a corresponding portion of your Collateral.

Liquidation Penalty

The discount or bonus a Lending Protocol awards to the party performing a liquidation, deducted from your Collateral in addition to the debt repaid.

Oracle

A mechanism that reports off-chain price data to a Smart Contract. Lending Protocols rely on Oracles to value Collateral and to determine whether a position may be liquidated.

Utilization

The proportion of a Lending Protocol's supplied assets that is currently borrowed. Utilization typically drives that protocol's interest rate model and may affect whether withdrawals can be executed.

Bad Debt

Borrowings that a Lending Protocol is unable to recover because the value of the associated Collateral fell below the value of the debt before liquidation completed.

Position

The combined record, held by a Lending Protocol, of the Collateral you have supplied and the amounts you have borrowed.

Services

The Interface and any related software, documentation, and support we make available to you in connection with lending and borrowing activity.

You

The individual or entity using the Services. If you use the Services on behalf of an entity, "you" includes that entity, and you represent that you are authorized to bind it.

Rules of Interpretation

• Headings are for convenience only and do not affect interpretation.
• "Including" and "such as" are illustrative and do not limit the words that precede them.
• References to a Lending Protocol's rules mean those rules as they exist from time to time, which the protocol or its governance may change without reference to us or to you.
• Where this Agreement conflicts with the New One User Agreement in respect of lending or borrowing activity, this Agreement controls as to that activity only.

2What We Provide, and What We Do Not

New One is a non-custodial multi-chain self-custody wallet supporting Bitcoin, Ethereum, Solana, Base, Polygon, Avalanche, BNB Chain, and Arbitrum. The Services described in this Agreement consist of software: an interface that lets you locate Lending Protocols, read the parameters those protocols publish, construct transactions, and sign them with keys held on your own device.

Every lending and borrowing relationship you enter is a relationship between you and a third-party Lending Protocol, formed entirely on-chain and executed by Smart Contracts that CRYPTO FUND LLC did not write, does not operate, and cannot alter or pause. We are not a bank, lender, borrower, broker, dealer, exchange, credit intermediary, or counterparty to any Position, and we do not participate in any loan.

We never take custody. Your private keys and recovery phrase are generated on your device and are never transmitted to us. We do not hold your Collateral, we cannot move it, and we cannot reverse, cancel, accelerate, or amend any transaction once it has been broadcast to a Blockchain.

• We do not set interest rates, collateral factors, Liquidation Thresholds, Liquidation Penalties, or any other economic parameter. Those are set by each Lending Protocol.
• We do not guarantee, insure, underwrite, or backstop any yield, repayment, or Collateral value, and we make no promise that any Position will remain solvent.
• We do not provide investment, financial, legal, tax, or accounting advice. Nothing in the Interface is a recommendation to supply, borrow, or dispose of any Digital Asset.
• Rates, balances, Health Factors, and projections shown in the Interface are read from public networks and third-party data providers, are furnished for convenience, and may be delayed, incomplete, or wrong.
• We may add, modify, or remove support for any Lending Protocol, asset, or Blockchain at our discretion, without notice, and without any obligation to preserve access to a Position you have already opened.

If the Interface becomes unavailable, your Position is unaffected: it remains recorded on-chain, and you may continue to manage it through any other compatible wallet or directly with the protocol's contracts, using your recovery phrase.

3Eligibility and Your Responsibilities

You must be at least 18 years old and have the legal capacity to enter a binding contract. You must not use the Services if you are located in, ordinarily resident in, or organized under the laws of a jurisdiction subject to comprehensive sanctions administered by the U.S. government, or if you are listed on any sanctions list administered by the U.S. Department of the Treasury's Office of Foreign Assets Control or an equivalent authority.

Leveraged and collateralized borrowing is not suitable for every user. Before you open a Position you are responsible for:

• Reading this Agreement in full, including the Risk Disclosure Statement in Part II.
• Reading the documentation, audits, and governance history of the Lending Protocol you intend to use, and forming your own view of its safety.
• Understanding the specific Liquidation Threshold, Liquidation Penalty, interest rate model, and Oracle configuration that apply to your Position, all of which are protocol-defined and may change.
• Verifying every contract address, asset, network, and amount before signing, and reviewing and revoking token approvals you no longer need.
• Monitoring your Collateralization Ratio continuously. Prices move at all hours, and no one — including us — is obliged to warn you before a liquidation occurs.
• Maintaining reserves sufficient to add Collateral or repay debt, and the network gas required to do so, at times of market stress.
• Determining and satisfying your own tax obligations in respect of every supply, borrow, repayment, liquidation, and reward.

Because the Services are non-custodial, the security of your assets rests entirely with you. Loss or disclosure of your recovery phrase will in all likelihood result in the permanent loss of your Collateral, and no recovery mechanism exists.

4Collateral, Borrowing, and Interest

Where a Lending Protocol offers over-collateralized borrowing, you supply Collateral to its Smart Contracts and may then borrow up to a limit that the protocol calculates from the value of that Collateral and the collateral factor it assigns to each asset. Your borrowing capacity is therefore always less than the value you have supplied, and it moves continuously as prices move.

Interest accrues to the protocol, not to us. Most protocols apply a utilization-based rate model in which the borrowing rate rises — sometimes steeply, past a kink or optimal-utilization point — as more of the supplied pool is borrowed. Rates are typically variable and can change block by block without notice or consent. Accrued interest increases your outstanding debt continuously, which lowers your Collateralization Ratio even when the price of your Collateral has not changed at all.

• Supplying, borrowing, repaying, and withdrawing are each separate on-chain transactions that you sign and that incur network gas fees.
• A transaction may fail or revert — because a parameter changed between your signing and the block being produced, because slippage exceeded your tolerance, or because the pool's state changed — and gas is consumed even when it does.
• Rewards, incentives, or points a protocol distributes are that protocol's to grant, vary, or withdraw. We do not promise them and cannot obtain them for you.
• Some protocols accrue interest to a rebasing or share-price-adjusted balance; the token quantity you see may not correspond to the value you can withdraw.

5Liquidation

If your Collateralization Ratio falls to or below the Liquidation Threshold set by the Lending Protocol, your Position becomes eligible for liquidation. At that point any third party — commonly an automated bot competing with other bots — may repay some or all of your debt and take a corresponding amount of your Collateral, plus the Liquidation Penalty, out of your Position.

Liquidation is executed by Smart Contract logic and is permissionless. It requires no notice to you, no confirmation from you, and no involvement from us. We cannot prevent it, delay it, unwind it, or compensate you for it, and we do not undertake to alert you before it happens.

• Any warning, health indicator, or notification the Interface displays is a convenience derived from third-party data. It may be late, wrong, or absent, and you must not rely on it as your only means of monitoring a Position.
• A liquidation may be partial or total depending on protocol rules and the depth of the market at that moment. A cascade of liquidations across a volatile market can consume far more Collateral than the debt outstanding.
• Liquidation Penalties are typically expressed as a percentage discount to the liquidator and are deducted from you in addition to the debt repaid. Some protocols apply an additional protocol fee on top.
• Network congestion, an outage at a sequencer or node provider, or a failed transaction may prevent you from adding Collateral or repaying debt in time, even where you have the funds and the intent to do so.
• Liquidation may be a taxable disposal in your jurisdiction regardless of whether you consented to it.

6Fees, Gas, and Taxes

We do not charge a fee for the core wallet functions described in the New One User Agreement. Where an optional feature within the Interface carries a fee or spread, it will be disclosed to you before you confirm the relevant transaction.

Independently of anything we charge, you will pay: network gas fees on every transaction, which are set by the relevant Blockchain, paid to validators rather than to us, and are not refundable even when a transaction fails; interest and any origination, flash-loan, or performance fees imposed by the Lending Protocol; and trading fees, spread, and price impact where an action routes through a decentralized exchange or aggregator.

You are solely responsible for determining what taxes apply to your activity and for reporting and remitting them. Supplying, borrowing, repaying, liquidating, and receiving rewards may each be a taxable event. We do not withhold tax and do not provide tax reporting on your behalf except where required by law.

7Repayment, Withdrawal, and Closing a Position

To close a Position you must repay outstanding principal and accrued interest to the Lending Protocol and then withdraw your Collateral. Both steps are transactions you sign, and both are subject to the protocol's rules and to the state of the network at the moment they execute.

• Withdrawal is not guaranteed on demand. If Utilization is at or near its maximum, a protocol may be unable to return supplied assets until borrowers repay or new supply arrives — a condition that can persist for hours or days, and that tends to arise precisely when you most want to exit.
• Some protocols impose a cooldown, unstaking window, or withdrawal queue. Assets subject to one remain exposed to price movement and protocol risk throughout.
• Repaying in a borrowed asset you no longer hold may require a swap, which incurs fees, spread, and price impact and may execute at a materially worse rate during volatility.
• A residual dust balance of interest may accrue between the moment you calculate a payoff figure and the moment your transaction is included in a block; a Position is not closed until the protocol records it as closed.

Ceasing to use New One does not close a Position. An open Position continues to accrue interest and remains liquidatable indefinitely, whether or not you ever open the Interface again.

8Prohibited Activities and Compliance

You must not, and must not permit any other person to:

• Use the Services in furtherance of money laundering, terrorist financing, sanctions evasion, fraud, or any other unlawful purpose.
• Manipulate, or attempt to manipulate, an Oracle, a lending market, or the price of any asset used as Collateral, including through wash trading, spoofing, or coordinated Utilization attacks.
• Exploit, or attempt to exploit, a vulnerability, rounding error, or unintended behavior in any Smart Contract, whether or not you regard the exploit as permitted by its code.
• Use the Services where doing so would breach a law applicable to you, including securities, commodities, lending, consumer credit, or licensing law in your jurisdiction.
• Reverse engineer or decompile the Services, except to the extent that restriction is unenforceable under applicable law.
• Interfere with or place undue load on the Services or the infrastructure supporting them, or circumvent any access control, rate limit, or geographic restriction.

We may restrict or terminate access to the Interface where we reasonably believe this Section has been breached, or where we consider it necessary to comply with a legal obligation. Any such restriction affects the Interface only; it does not affect your on-chain Position, your Collateral, or your ability to reach the protocol by other means.

9Privacy and Data Protection

Our handling of personal information is governed by the Privacy Statement published as Part II of the New One User Agreement, which applies to lending and borrowing activity in the same way it applies to the rest of the Services. Nothing in this Agreement expands the information we collect.

We do not collect, transmit, or store your private keys, recovery phrase, wallet password, or device passcode. Your Positions, Collateral, borrowings, and liquidations are recorded on public Blockchains by those networks themselves, are permanently visible to anyone, and cannot be edited or erased by us or by you.

Residents of California have rights under the California Consumer Privacy Act as amended by the California Privacy Rights Act, and residents of other states with comprehensive privacy statutes have comparable rights, as described in that Privacy Statement. We do not sell personal information and do not share it for cross-context behavioral advertising. Requests may be sent to privacy@newone.xyz.

10Disclaimer of Warranties

THE SERVICES ARE PROVIDED "AS IS" AND "AS AVAILABLE," WITHOUT WARRANTY OF ANY KIND. TO THE MAXIMUM EXTENT PERMITTED BY LAW, CRYPTO FUND LLC DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, AND NON-INFRINGEMENT, AND ANY WARRANTY THAT THE SERVICES WILL BE UNINTERRUPTED, TIMELY, SECURE, ACCURATE, OR ERROR-FREE.

WE MAKE NO REPRESENTATION OR WARRANTY OF ANY KIND CONCERNING ANY LENDING PROTOCOL, SMART CONTRACT, ORACLE, BRIDGE, OR OTHER THIRD-PARTY SYSTEM YOU REACH THROUGH THE INTERFACE, INCLUDING AS TO ITS SOLVENCY, SECURITY, CODE CORRECTNESS, AUDIT STATUS, GOVERNANCE, CONTINUED OPERATION, OR THE ACCURACY OF ANY RATE, PRICE, HEALTH FACTOR, OR PROJECTION IT PUBLISHES. LISTING OR DISPLAYING A PROTOCOL IN THE INTERFACE IS NOT AN ENDORSEMENT, A RECOMMENDATION, OR A STATEMENT THAT WE HAVE REVIEWED IT.

NO YIELD, RETURN, REPAYMENT, OR PRESERVATION OF CAPITAL IS PROMISED OR GUARANTEED. YOUR COLLATERAL IS NOT INSURED, IS NOT PROTECTED BY ANY DEPOSIT INSURANCE OR INVESTOR PROTECTION SCHEME, AND MAY BE LOST IN FULL.

11Limitation of Liability

TO THE MAXIMUM EXTENT PERMITTED BY LAW, CRYPTO FUND LLC AND ITS MEMBERS, MANAGERS, OFFICERS, EMPLOYEES, CONTRACTORS, AND AGENTS WILL NOT BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, EXEMPLARY, OR PUNITIVE DAMAGES, OR FOR ANY LOSS OF PROFITS, REVENUE, DATA, GOODWILL, OR DIGITAL ASSETS, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

TO THE MAXIMUM EXTENT PERMITTED BY LAW, OUR TOTAL AGGREGATE LIABILITY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE SERVICES WILL NOT EXCEED THE GREATER OF (A) THE TOTAL FEES YOU PAID TO US IN THE TWELVE MONTHS PRECEDING THE EVENT GIVING RISE TO THE CLAIM, OR (B) ONE HUNDRED U.S. DOLLARS (US$100).

Without limiting the foregoing, we are not liable for loss arising from: the liquidation of a Position, in whole or in part; the failure, insolvency, exploitation, pause, deprecation, or governance decision of any Lending Protocol; the failure, manipulation, staleness, or deviation of any Oracle; Bad Debt or any socialization of losses across a protocol's users; the inability to withdraw supplied assets at any particular time; any interest rate movement; any transaction you signed, including one signed in error or as a result of deception; your loss or disclosure of a recovery phrase; or any Blockchain fork, congestion, reorganization, sequencer outage, or halt.

Nothing in this Agreement excludes or limits liability for fraud, fraudulent misrepresentation, willful misconduct, or any liability that cannot lawfully be excluded. Some jurisdictions do not allow the exclusion of certain warranties or the limitation of certain damages; in those jurisdictions the exclusions and limitations above apply only to the extent permitted.

12Indemnification

You agree to indemnify, defend, and hold harmless CRYPTO FUND LLC and its members, managers, officers, employees, contractors, and agents from and against any claim, demand, action, loss, liability, damage, cost, or expense (including reasonable attorneys' fees) arising out of or relating to:

• Your breach of this Agreement or of any law or regulation applicable to you.
• Any Position you open, any transaction you sign, and any interaction with a Lending Protocol.
• Any tax, reporting, or licensing obligation of yours that goes unmet.
• Any dispute between you and a Lending Protocol, a liquidator, another user, or any other third party.

We may assume the exclusive defense and control of any matter subject to indemnification by you, in which case you agree to cooperate with us.

13Governing Law

This Agreement and any dispute arising out of or relating to it or the Services are governed by the laws of the State of Delaware and, where applicable, the federal laws of the United States, without regard to conflict-of-laws principles. The United Nations Convention on Contracts for the International Sale of Goods does not apply.

The Federal Arbitration Act governs the interpretation and enforcement of Section 14.

14Dispute Resolution, Arbitration, and Class-Action Waiver

PLEASE READ THIS SECTION CAREFULLY. IT AFFECTS YOUR LEGAL RIGHTS, INCLUDING YOUR RIGHT TO FILE A LAWSUIT IN COURT AND TO HAVE A JURY TRIAL.

Informal Resolution First

Before commencing arbitration, you agree to notify us in writing at support@newone.io, describing the dispute and the relief sought. We will attempt in good faith to resolve the matter with you for sixty (60) days from receipt. Either party may commence arbitration only after that period has elapsed.

Binding Arbitration

Any dispute not resolved informally will be settled by final and binding arbitration administered by the American Arbitration Association under its Consumer Arbitration Rules, before a single arbitrator. The seat of arbitration is Wilmington, Delaware, and the language is English. The arbitrator has exclusive authority to resolve any dispute regarding the interpretation, applicability, or enforceability of this Section. Judgment on the award may be entered in any court of competent jurisdiction.

Your Right to Opt Out

You may opt out of this arbitration agreement by sending written notice to support@newone.io within thirty (30) days of first accepting this Agreement, stating your name and your intention to opt out. Opting out does not affect any other provision of this Agreement.

Exceptions

• Either party may bring an individual claim in small claims court if the claim qualifies for that forum.
• Either party may seek injunctive or other equitable relief in a court of competent jurisdiction to prevent actual or threatened infringement or misappropriation of intellectual property rights.

Class-Action Waiver

ALL CLAIMS MUST BE BROUGHT IN AN INDIVIDUAL CAPACITY AND NOT AS A PLAINTIFF OR CLASS MEMBER IN ANY PURPORTED CLASS, COLLECTIVE, CONSOLIDATED, OR REPRESENTATIVE PROCEEDING. THE ARBITRATOR MAY NOT CONSOLIDATE MORE THAN ONE PERSON'S CLAIMS OR PRESIDE OVER ANY FORM OF REPRESENTATIVE PROCEEDING. If this waiver is held unenforceable as to a particular claim, that claim must proceed in court and is severed from any arbitration.

Time Limit

Any claim arising out of or relating to this Agreement or the Services must be filed within one (1) year after it arose, or it is permanently barred, except where a longer period is required by applicable law.

15Changes to This Agreement

We may amend this Agreement from time to time. The current version is always published at this address with the date it took effect. Where a change materially reduces your rights or increases your obligations, we will give notice through the App, the Site, or another reasonable means at least thirty (30) days before it takes effect, except where a shorter period is necessary to address a security or legal requirement.

Continued use of the Services after the effective date constitutes acceptance. If you do not accept a change, stop using the Services. Note that declining a change does not close any open Position: your Position remains on-chain, continues to accrue interest, and remains liquidatable until you repay and withdraw.

16General Provisions

Acceptance

By using any lending or borrowing feature of New One, you accept this Agreement, including the Risk Disclosure Statement in Part II. If you do not accept it, do not use those features.

Relationship to the User Agreement

This Agreement supplements and does not replace the New One User Agreement. Both apply to you. Where the two conflict in respect of lending or borrowing activity, this Agreement controls as to that activity.

Severability and Waiver

If any provision is held invalid or unenforceable, it will be modified to the minimum extent necessary to make it enforceable, and the remaining provisions continue in full force. Our failure to enforce a provision is not a waiver of our right to enforce it later.

Assignment

You may not assign this Agreement or any rights under it without our prior written consent. We may assign it to an affiliate or in connection with a merger, acquisition, reorganization, or sale of assets.

Entire Agreement

This Agreement, together with the New One User Agreement, constitutes the entire agreement between you and CRYPTO FUND LLC regarding lending and borrowing activity and supersedes all prior understandings on that subject.

Electronic Communications and Notices

You consent to receive communications from us electronically and agree that they satisfy any legal requirement that a communication be in writing. Notices to us should be sent to support@newone.io; notices to you may be given through the App, the Site, or any contact address you have supplied.

Language

This Agreement is drafted in English. If we publish a translation and an inconsistency arises, the English version prevails to the extent permitted by applicable law.

Survival

Sections concerning fees and taxes, disclaimers, limitation of liability, indemnification, governing law, and dispute resolution survive termination of this Agreement.

1General Warning

Over-collateralized borrowing against Digital Assets is among the highest-risk activities available in this sector. You can lose your entire Collateral. You can lose it quickly, without warning, while you are asleep, and without any act or omission on your part beyond having opened the Position in the first place.

Do not commit assets you cannot afford to lose in full. The risks described below are not exhaustive, do not occur one at a time, and are strongly correlated: a sharp price move tends to arrive together with network congestion, Oracle stress, thin liquidity, and a wave of competing liquidations. Read every section.

2Leverage and Over-Collateralization Risk

Over-collateralization means you must always post more value than you borrow. A protocol that assigns a collateral factor of, for example, 75% to an asset will lend at most 75 cents of value against a dollar of that Collateral, implying a minimum Collateralization Ratio of roughly 133%. This buffer protects the protocol, not you.

• The closer you borrow to your maximum, the smaller the price move required to liquidate you. Borrowing at the limit can mean a single-digit percentage decline wipes out the Position.
• Looping — borrowing, swapping, re-supplying, and borrowing again — multiplies exposure and compresses the safety buffer geometrically. Modest leverage becomes extreme leverage in a few iterations.
• Collateral factors are not fixed. Protocol governance can lower a collateral factor, or freeze an asset entirely, which can push a previously safe Position into liquidation range immediately and without any market movement.
• Borrowing an asset that is itself volatile means your debt grows in value even when your Collateral does not fall. Both sides of the ratio move against you at once.

3Liquidation Risk and Penalties

When your Collateralization Ratio touches the Liquidation Threshold, liquidation becomes available to anyone. Automated liquidator bots monitor every eligible Position continuously and compete to execute within the same block the condition first becomes true. There is no grace period, no margin call you can answer, and no discretion exercised in your favor.

• The Liquidation Penalty — commonly in the range of a few percent to fifteen percent of the amount liquidated, depending on the protocol and asset — is taken from your Collateral on top of the debt repaid. It is a permanent, unrecoverable loss.
• Some protocols liquidate the entire Position rather than only the amount needed to restore health. Others liquidate a fixed close factor repeatedly, applying the penalty each time.
• In a fast decline, a Position can be liquidated well below the threshold — the price at which your Collateral is actually sold may be far worse than the price at which liquidation became permitted.
• If gas prices spike, if a sequencer stalls, or if your transaction is not included in time, your attempt to add Collateral or repay may confirm after the liquidation has already occurred. The gas is spent either way.
• Health indicators shown in New One are derived from third-party data and may lag the protocol's own Oracle. Never treat the Interface as an early-warning system.

4Interest Rate and Utilization Risk

Interest on most Lending Protocols is variable and driven by Utilization. Rate curves are typically piecewise: gentle below an optimal Utilization point, then steeply sloped above it. When Utilization crosses that kink, borrowing rates can rise from single digits to triple digits within minutes, with no notice and no opt-out for existing borrowers.

• Interest compounds continuously into your debt. Your Collateralization Ratio therefore decays over time even in a completely flat market — an unattended Position can liquidate purely through accrual.
• A Utilization spike can be caused by other users borrowing heavily, by a large supplier withdrawing, or by a deliberate attack designed to squeeze borrowers.
• A high Utilization environment simultaneously raises your cost of borrowing and reduces the likelihood that you can withdraw supplied assets. The two failures arrive together.
• Rewards or incentives that made a rate attractive when you opened the Position can be reduced or ended at any time by protocol governance, leaving the borrowing cost without its offset.

5Market Volatility, Slippage, and Price Impact

Digital Asset prices are extremely volatile and can move tens of percent within a single hour. Prices can go to zero. Historical volatility, correlation, and depth are not predictive of future conditions, and the assumptions on which you sized a Position may cease to hold without notice.

• Assets you believed to be uncorrelated frequently converge toward correlation of one during a crisis, so hedges and diversified Collateral baskets fail exactly when they are needed.
• Executing a swap to repay debt or rebalance Collateral during volatility incurs slippage and price impact that can be many times the quoted amount in normal conditions.
• Stablecoins can and do depeg. A depeg on the borrowed side inflates your debt; a depeg on the Collateral side can trigger liquidation across an entire market at once.
• Liquid staking and yield-bearing derivative Collateral can trade at a discount to the asset it represents, and that discount widens under stress even where the underlying redemption remains sound.

6Oracle Risk

Lending Protocols cannot observe prices directly; they rely on Oracles. Every valuation, every Health Factor, and every liquidation decision is only as sound as the Oracle feeding it, and Oracle failure is one of the most common causes of catastrophic loss in on-chain lending.

• A stale feed can value your Collateral at a price that no longer exists, delaying a liquidation until your Position is deeply underwater, or triggering one that market prices do not justify.
• A manipulated feed — through a flash-loan attack on a thin spot market, or through a compromised reporter — can mark your Collateral down far enough to liquidate a perfectly healthy Position within a single block.
• Different protocols use different Oracles with different heartbeats and deviation thresholds. Two protocols can hold materially different views of the same asset's price at the same moment.
• Oracles may pause, revert, or return no value during extreme conditions. A protocol may then freeze, blocking repayment and withdrawal while your exposure continues.

7Smart Contract and Protocol Risk

Every Lending Protocol is software written by third parties and deployed to a public network. Once your Collateral is inside its contracts, its code determines what happens to your assets. CRYPTO FUND LLC did not write that code, does not control it, and cannot recover assets lost to it.

• Contracts may contain bugs, reentrancy flaws, faulty accounting, rounding errors, or economic design errors that permit total drainage of a pool. Audits reduce this risk; they do not eliminate it, and audited protocols have been exploited many times.
• Upgradeable proxies, admin keys, and timelocks mean a protocol's behavior can change after you deposit. A privileged key that is compromised, or used maliciously, can be catastrophic.
• Governance may vote to change collateral factors, pause markets, seize or socialize losses, deprecate an asset, or migrate to new contracts. You may have no vote and no notice.
• Composability multiplies exposure: a protocol that accepts another protocol's receipt token inherits that protocol's risks, and a failure three layers away can reach your Collateral.
• Bridged, wrapped, and cross-chain assets depend on the continued integrity of their bridge. Bridge failures have destroyed the value of the wrapped asset while the underlying remained untouched.

8Bad Debt and Loss Socialization

If Collateral value falls below the debt it secures before liquidation completes — through a gap down, an illiquid market, or a failed liquidation — the protocol is left with Bad Debt. Bad Debt does not stay with the borrower who created it.

• Protocols commonly absorb Bad Debt from an insurance or safety module, which may be funded by staked user assets that are slashed to cover the shortfall.
• Where reserves are insufficient, losses are typically socialized across suppliers: your supplied balance may simply be written down, or become unredeemable in part.
• A protocol carrying Bad Debt often experiences a supplier run, driving Utilization to its maximum and making withdrawal impossible for those who move second.
• You may suffer loss through this mechanism even if your own Position was conservatively collateralized and was never liquidated.

9Liquidity and Withdrawal Risk

Supplying assets to a Lending Protocol is not a deposit and confers no right to withdraw on demand. Your ability to withdraw depends on there being unborrowed assets in the pool at the moment you ask.

• At full Utilization, withdrawal simply fails. It may remain unavailable for an extended period, and the rising rates that eventually attract new supply are not guaranteed to do so in time.
• Thin on-chain liquidity for a Collateral asset means liquidations execute at deep discounts, increasing both your loss and the chance of Bad Debt.
• Long-tail and newly listed assets can lose nearly all market depth in hours. Depth observed when you opened a Position is not a commitment by anyone to maintain it.
• Withdrawal queues, cooldowns, and unstaking periods keep you exposed to price and protocol risk throughout the waiting period, with no ability to exit.

10Network and Infrastructure Risk

Transactions reach a Lending Protocol only if the underlying network accepts and includes them. Across the chains New One supports — Bitcoin, Ethereum, Solana, Base, Polygon, Avalanche, BNB Chain, and Arbitrum — congestion, outages, and reorganizations occur, and they cluster in exactly the volatile conditions where your Position is most at risk.

• Gas spikes can make a repayment uneconomic or place it out of reach if you do not hold enough of the network's native asset.
• Layer-2 sequencers can halt. While a sequencer is down you may be unable to add Collateral or repay, while Oracle prices and your debt continue to move.
• Failed and reverted transactions still consume gas. Repeated attempts during congestion can be expensive and still not land in time.
• Transactions are visible in the mempool before inclusion and may be front-run, sandwiched, or otherwise exploited by maximal-extractable-value searchers, worsening your execution.
• Node providers, RPC endpoints, indexers, and price-data vendors that the Interface depends on may fail or return incorrect data, causing the Interface to display a Position inaccurately or not at all.

11Self-Custody, Key, and Signing Risk

New One is non-custodial. Your keys never leave your device, and there is no account recovery, no password reset, and no support process capable of restoring access. This is a deliberate design, and its consequences are absolute.

• Losing your recovery phrase means losing your Collateral and any ability to repay or close a Position. It cannot be recovered by us or by anyone else.
• Anyone who obtains your recovery phrase can drain your Collateral and leave the debt with your address.
• Token approvals granted to a lending contract persist until revoked. A later exploit of that contract can reach assets you approved long ago and have since forgotten about.
• Signing a blind or malformed message — including permit signatures and approvals presented by a phishing site impersonating a lending protocol — can authorize the transfer of everything you hold.
• A transaction sent to the wrong address, contract, or network is irreversible. There is no chargeback, no dispute, and no correction.

12Regulatory, Legal, and Tax Risk

Law governing digital assets, decentralized lending, and interfaces to it is unsettled and moving quickly in the United States and elsewhere. Changes may be retroactive in effect and are not within our control.

• A regulator may determine that a Lending Protocol, an asset, or an interface must be registered, restricted, or shut down. Access may end abruptly and without notice.
• Sanctions designations can render a protocol, contract address, or Collateral asset unlawful for you to interact with while your Position remains open.
• We may restrict the Interface in particular jurisdictions to comply with legal obligations. This affects the Interface only; your Position remains on-chain and remains your responsibility to manage.
• Supplying, borrowing, repaying, receiving rewards, and being liquidated may each be taxable events in your jurisdiction. Liquidation is generally taxable even though you did not choose it.
• Nothing in this document is legal, tax, financial, or investment advice. Consult qualified professionals in your own jurisdiction before you act.

13Your Acknowledgment

By using any lending or borrowing feature of New One, you confirm that you have read and understood this Risk Disclosure Statement in full and that you accept every risk it describes. In particular, you acknowledge that:

• CRYPTO FUND LLC is a software provider only — not a bank, lender, borrower, broker, or counterparty — and takes no custody of your keys, your Collateral, or your assets at any time.
• Every lending relationship is between you and a third-party protocol whose code and parameters we do not control and cannot change.
• Your Position may be liquidated at any moment, without notice, with a penalty applied, and that no one is obliged to warn you.
• You may lose all of your Collateral, including through mechanisms — Bad Debt socialization, Oracle failure, protocol exploit — that involve no error of judgment on your part.
• Your Collateral is not insured and is covered by no deposit protection or investor compensation scheme.
• You are acting on your own assessment, using funds you can afford to lose entirely, and not in reliance on any statement, projection, or figure displayed in the Interface.

If any part of this Statement is unclear to you, do not open a Position. Write to us at support@newone.io first, and seek independent professional advice.