Democratized Prime Smart Contract Addendum

Last Updated: May 20, 2026

1. Introduction

This Democratized Prime Smart Contract Pool Addendum (this “Addendum”) supplements the Figure Decentralized Protocol Integrations Terms of Service (the “Terms”). It governs a user’s access to, and use of, each Democratized Prime Smart Contract made available through a Decentralized Protocol Integration on a Figure Site. This Addendum controls in the event of a conflict between this Addendum and the Terms solely with respect to the applicable Smart Contract.

Democratized Prime is a decentralized lending marketplace that permits users to supply supported digital assets to, and borrow supported digital assets from, one or more smart-contract-based lending pools. Each Smart Contract Pool is operated by protocol smart contracts deployed on a digital asset network and accessed through a Decentralized Protocol Integration. Each Smart Contract Pool has its own Smart Contract Pool Schedule outlining the specific terms and conditions for that Smart Contract Pool. A user who supplies digital assets to a Smart Contract Pool is a (“Lender”) for purposes of this Addendum. A user who borrows digital assets from a Smart Contract Pool is a (“Borrower”) for purposes of this Addendum. A user may be a Lender, a Borrower, or both.

Unless expressly stated in the applicable Smart Contract Pool Schedule, neither FMHI nor any other member of the Figure Group is a broker, dealer, investment adviser, fiduciary, guarantor, custodian, administrative agent, liquidation agent, trustee, or servicer. FMHI’s role is limited to providing a technology interface that facilitates a user’s direct interaction with the applicable Decentralized Services and Third Party Services. Users access each Smart Contract Pool through their Digital Asset Wallet and are solely responsible for all Protocol Transactions they sign or otherwise authorize.

For the avoidance of doubt, this Addendum does not govern any HELOC+ Pool, Auto Loan Pool, Dutch auction pool, or other pool that is made subject to a separate addendum or pool-specific terms.

2. Definitions

Capitalized terms not defined in this Addendum have the meanings given to them in the Terms. In addition to terms defined elsewhere in this Addendum, the following terms have the meanings below:

“Available Liquidity” means the amount of a supported digital asset available in a Smart Contract Pool for withdrawal or borrowing at a given time, as determined by the applicable Protocol governing the operations of that Smart Contract Pool.

“Borrower” means a user who borrows supported digital assets from a Smart Contract Pool by initiating a Protocol Transaction through the user’s Digital Asset Wallet.

“Borrowed Assets” means supported digital assets that a Borrower borrows from a Smart Contract Pool.

“Collateral” means supported digital assets or other eligible assets pledged, locked, supplied, or otherwise made available by a Borrower to support Borrowed Assets in accordance with the applicable Protocol.

“Collateral Ratio” means the ratio, percentage, threshold, or other collateralization measurement used by the applicable Protocol to determine whether a Borrower’s position satisfies the requirements of a Smart Contract Pool.

“Democratized Prime” means the decentralized lending marketplace made available through a Decentralized Protocol Integration that permits users to interact with one or more Smart Contract Pools.

“Lender” means a user who supplies supported digital assets to a Smart Contract Pool by initiating a Protocol Transaction through the user’s Digital Asset Wallet.

“Live Rate” means the variable rate generated by the applicable Protocol for a Smart Contract Pool based on pool conditions, which may include utilization, Available Liquidity, supply, demand, reserves, and other protocol parameters.

“Protocol” means the smart contracts, blockchain, oracle, network, decentralized application, or related decentralized infrastructure used by a Smart Contract Pool.

“Protocol Transaction” means an Onchain Transaction or other action signed, submitted, or authorized by a user through the user’s Digital Asset Wallet to interact with a Smart Contract Pool, including supplying, borrowing, withdrawing, repaying, pledging Collateral, substituting Collateral, liquidating, claiming, or otherwise interacting with the Protocol.

“Receipt Token” is a digital asset that is natively minted as a result of a user interacting with a decentralized protocol (e.g., a liquid staking token minted when a Lender stakes Collateral in a decentralized lending protocol), which can represent a claim against that Smart Contract Pool.

“Smart Contract Pool” means a live-rate Democratized Prime lending pool governed by Protocol smart contracts and made available through a Decentralized Protocol Integration.

“Smart Contract Pool Schedule” means a schedule, disclosure, or other pool-specific page or document that identifies terms for a Smart Contract Pool, including supported assets, collateral requirements, rate parameters, fees, liquidation thresholds, reserve factors, or other pool-specific information.

“Supplied Assets” means supported digital assets that a Lender supplies to a Smart Contract Pool.

“Utilization” means the amount of assets borrowed from a Smart Contract Pool relative to the amount of assets supplied to or otherwise available in that Smart Contract Pool, as determined by the applicable Protocol.

3. User Eligibility and Assent

By accessing or using a Smart Contract Pool, each user is deemed to have electronically accepted the Terms, this Addendum, and the applicable Pool Schedule before initiating any Protocol Transaction. A user must have a Digital Asset Wallet and must satisfy any account, identity verification, jurisdictional, asset support, sanctions, compliance, technical, or other eligibility requirements that the applicable Protocol may impose from time to time.

FMHI may limit, suspend, or terminate access to any Decentralized Protocol Integration or Smart Contract Pool in accordance with the Terms. A Protocol may also reject, delay, fail to execute, or prevent a Protocol Transaction for reasons outside FMHI’s control, including lack of Available Liquidity, insufficient Collateral, protocol parameters, network congestion, smart contract failure, oracle failure, or other digital asset network conditions.

4. Role of FMHI and Figure Group

FMHI provides a technology interface that enables users to access Smart Contract Pools through the Figure Site. Unless expressly stated in a Pool Schedule:

1. No member of the Figure Group holds or takes custody of a user’s Supplied Assets, Borrowed Assets, Collateral, Digital Asset Wallet, or private keys;

2. No member of the Figure Group guarantees any rate, return, repayment, collateral value, liquidation outcome, protocol operation, Available Liquidity, or ability to withdraw;

3. No member of the Figure Group provides investment, legal, tax, financial, accounting, lending, borrowing, or trading advice; and

4. Any information displayed through the Figure Site about a Smart Contract Pool, a Protocol Transaction, a Digital Asset Wallet, a rate, a balance, Collateral, Utilization, Available Liquidity, or a liquidation is provided for convenience and may be based on public blockchain data, Protocol data, or third-party data that FMHI has not independently verified.

A user’s rights and obligations in a Smart Contract Pool arise from the user’s direct interaction with the applicable Protocol and any applicable terms, conditions, or disclosures governing that Protocol. The user is solely responsible for reviewing and understanding those terms, conditions, disclosures, and Protocol mechanics before initiating a Protocol Transaction.

5. Supplying Assets to a Smart Contract Pool

A Lender may supply supported digital assets to a Smart Contract Pool by signing or otherwise authorizing the applicable Protocol Transaction through the Lender’s Digital Asset Wallet. Supplying digital assets to a Smart Contract Pool may lead to the production of a Receipt Token, which can be permissioned or permissionless depending on the Decentralized Service or Third-Party Service the user interacts with. Supplied Assets may be pooled with assets supplied by other users and may be used by Borrowers in accordance with the Protocol.

Unless expressly stated in the applicable Pool Schedule:

1. A Lender does not select an individual Borrower;

   The rate applicable to Supplied Assets is the Live Rate determined by the Protocol and may change continuously;

2. Interest, yield, rewards, or other amounts, if any, accrue only as determined by the Protocol;

3. A Lender may withdraw only up to the amount permitted by the Protocol and subject to Available Liquidity; and

4. A Lender may experience delay, inability to withdraw, reduced return, loss of principal, or other loss if Available Liquidity is insufficient, Borrowers fail to repay, Collateral is insufficient, a liquidation produces insufficient proceeds, or the Protocol fails or behaves unexpectedly.

Supplying assets to a Smart Contract Pool is not a deposit account, bank account, securities account, brokerage account, investment company product, insurance product, or other insured financial account. Supplied Assets are not FDIC insured, are not bank guaranteed, are not protected by SIPC, and may lose value.

6. Borrowing from a Smart Contract Pool

A Borrower may borrow supported digital assets from a Smart Contract Pool by signing or otherwise authorizing the applicable Protocol Transaction through the Borrower’s Digital Asset Wallet and satisfying the applicable Collateral requirements. The amount a Borrower may borrow, the Collateral required, the applicable rate, and the conditions for maintaining or closing a borrowing position are determined by the Protocol and the applicable Pool Schedule.

Unless expressly stated in the applicable Pool Schedule:

1. Borrower’s rate is the Live Rate determined by the Protocol and may change continuously;

2. Borrower is solely responsible for monitoring Collateral, Collateral Ratio, asset prices, Protocol information, and all borrowing obligations;

3. A Borrower may be required to supply additional Collateral, repay Borrowed Assets, or otherwise manage the Borrower’s position to avoid liquidation;

4. Collateral may be liquidated automatically by the Protocol, by third-party liquidators, or through another Protocol process if the Borrower’s position fails to satisfy applicable requirements; and

Liquidation may occur without advance notice and may result in partial or total loss of Collateral. A Borrower may be unable to prevent liquidation during periods of market volatility, network congestion, oracle failure, Figure Site outage, Digital Asset Wallet access issues, or other conditions outside the Borrower’s or FMHI’s control.

7. Rates, Accrual, Fees, and Reserves

Smart Contract Pools use Live Rates. A Live Rate may change continuously and may be based on Utilization, Available Liquidity, supply, demand, reserve factors, protocol parameters, market conditions, or other factors determined by the Protocol. A displayed rate may be different than the Live Rate due to rounding or character limitations.

Any interest, yield, rewards, reserves, fees, or charges are determined by the Protocol and the applicable Pool Schedule. Fees may be paid to the Protocol, third-party service providers, validators, network operators, FMHI, another member of the Figure Group, or other persons, as disclosed before a user submits a Protocol Transaction or in the applicable Pool Schedule. Blockchain network fees, gas fees, validator fees, and similar charges may apply and may be non-refundable even if a Protocol Transaction fails or is not completed.

Each user is solely responsible for determining the tax treatment of any Protocol Transaction, Supplied Assets, Borrowed Assets, Collateral, fees, interest, yield, rewards, gains, losses, liquidations, and other activity. No member of the Figure Group is required to gross up any payment for taxes unless expressly stated in the applicable Pool Schedule.

8. Withdrawals, Repayments, and Available Liquidity

A Lender’s ability to withdraw Supplied Assets and any accrued amounts depends on the Protocol and Available Liquidity. A Borrower’s ability to repay Borrowed Assets, release Collateral, or close a borrowing position depends on the Protocol, network conditions, supported assets, and any applicable Pool Schedule.

Protocol Transactions are not complete until confirmed, finalized, or otherwise recognized by the applicable Protocol and digital asset network. A user may experience failed transactions, delayed transactions, partial execution, increased fees, or inability to access assets because of insufficient Available Liquidity, network congestion, blockchain reorganization, validator or sequencer issues, smart contract failure, oracle failure, unsupported assets, Figure Site outage, Digital Asset Wallet issues, or other conditions.

Neither FMHI nor any other member of the Figure Group is liable for any loss arising from a user’s inability to supply, borrow, withdraw, repay, close a position, add Collateral, remove Collateral, avoid liquidation, or complete any other Protocol Transaction.

9. Collateral and Liquidation

Collateral requirements, Collateral Ratios, supported Collateral types, valuation methods, oracle sources, liquidation thresholds, liquidation penalties, and liquidation processes are determined by the Protocol and the applicable Pool Schedule. Collateral values may change rapidly, may be based on oracle or third-party data, and may not reflect the price at which Collateral can be sold or converted.

A Borrower’s Collateral may be liquidated if the applicable Protocol determines that the Borrower’s position does not satisfy required parameters. Liquidation may be automatic, irreversible, and conducted by the Protocol or third parties without action by FMHI or any other member of the Figure Group. Liquidation proceeds may be insufficient to satisfy all amounts owed, and any shortfall, deficiency, penalty, fee, or loss will be borne by the Borrower, Lenders, or other Protocol participants as determined by the Protocol and applicable law.

A Lender acknowledges that repayment of Supplied Assets and any return may depend on Borrower repayment, Collateral sufficiency, liquidation execution, market liquidity, oracle accuracy, and Protocol operation. Neither FMHI nor any other member of the Figure Group guarantees the sufficiency, value, collectability, liquidity, marketability, or enforceability of any Collateral or any Protocol position.

10. Smart Contract, Oracle, Network, and Regulatory Risks

Smart Contract Pools involve significant risks, including risks described in the Terms and the applicable Pool Schedule. These risks include:

1. Smart contract bugs, vulnerabilities, exploits, upgrades, parameter changes, governance failures, or unexpected behavior;

2. Oracle errors, stale prices, manipulated prices, unavailable prices, or incorrect Collateral valuations;

3. Market volatility, illiquidity, rapid price changes, devaluation, lockups, or loss;

4. Insufficient Available Liquidity, withdrawal delays, failed transactions, or inability to exit;

5. Borrower defaults, undercollateralization, liquidation failure, liquidation slippage, or socialized losses if provided by the Protocol;

6. Blockchain outages, congestion, forks, reorganizations, validator failures, bridge failures, cyberattacks, or other digital asset network failures;

7. Unsupported assets, asset freezes, token contract failures, stablecoin depegging, sanctions restrictions, or asset issuer actions;

8. User error, compromised devices, lost authentication keys, phishing, malware, unauthorized transactions, or wallet compromise; and

9. Legal, tax, accounting, regulatory, licensing, enforcement, bankruptcy, or insolvency uncertainty.

New products or services, including Smart Contract Pools, may raise new and complex regulatory or compliance obligations. A Smart Contract Pool may be modified, suspended, restricted, discontinued, migrated, or made unavailable without advance notice. A user assumes all risk of using any Smart Contract Pool and should not supply, borrow, or pledge assets that the user cannot afford to lose.

11. Representations and Acknowledgments

Each user represents, warrants, and acknowledges each time the user accesses a Smart Contract Pool or initiates a Protocol Transaction, the user:

1. The user has the authority and capacity to use the Smart Contract Pool and to enter into the Terms, this Addendum, and the applicable Pool Schedule;

2. The user is not prohibited by applicable law, sanctions restrictions, account restrictions, jurisdictional restrictions, or Protocol restrictions from using the Smart Contract Pool;

3. The user has reviewed and understands the Terms, this Addendum, the applicable Pool Schedule, and the risks of the applicable Protocol Transaction;

4. The user is acting for the user’s own account and not as agent, nominee, trustee, or custodian for any other person unless expressly permitted by FMHI and applicable law;

5. The user is not relying on FMHI, any member of the Figure Group, or any information displayed through the Figure Site as investment, legal, tax, accounting, financial, lending, borrowing, trading, or other advice;

6. The user is solely responsible for evaluating the Smart Contract Pool, Protocol, supported assets, Collateral, rates, fees, Available Liquidity, and all related risks;

7. The user understands that all Protocol Transactions are user-directed and may be irreversible once submitted to the applicable digital asset network; and

8. The user understands that the user may lose some or all Supplied Assets, Borrowed Assets, Collateral, interest, yield, rewards, or other value associated with the Smart Contract Pool.

12. Limitations on Liability; No Guarantee

The limitations of liability, warranty disclaimers, indemnification obligations, and related protections in the Terms apply to this Addendum and each Smart Contract Pool. Without limiting the Terms, each user is solely responsible for any losses, claims, disputes, damages, liabilities, costs, or expenses arising out of or related to the user’s Protocol Transactions, Digital Asset Wallet, Supplied Assets, Borrowed Assets, Collateral, liquidation, reliance on displayed information, or use of a Smart Contract Pool.

No member of the Figure Group guarantees any rate, yield, reward, return, repayment, Collateral value, liquidation outcome, availability, uptime, execution, withdrawal, tax treatment, regulatory treatment, or Protocol performance. Under no circumstances will any member of the Figure Group be liable for lost profits, lost yield, lost rewards, lost business opportunity, lost savings, loss of goodwill, market losses, liquidation losses, opportunity costs, or any indirect, incidental, special, exemplary, punitive, or consequential damages, except to the extent such limitation is not permitted by applicable law.

13. Suspension, Termination, and Discontinuation

FMHI may suspend, restrict, modify, or terminate a user’s access to any Decentralized Protocol Integration or Smart Contract Pool in accordance with the Terms. FMHI may also discontinue support for any Smart Contract Pool, supported asset, Protocol, Figure Site feature, display, interface, Digital Asset Wallet functionality, or jurisdiction at any time.

Termination or suspension of access to the Figure Site or a Decentralized Protocol Integration may prevent a user from viewing, initiating, or managing Protocol Transactions through FMHI’s interface. The underlying Protocol may remain available through other means, or may not remain available, depending on Protocol design, network conditions, and applicable law. The user remains solely responsible for any outstanding Protocol position, including any Borrowed Assets, Collateral, liquidation risk, fees, or other obligations.

14. Notices and Communications

Notices and communications under this Addendum may be provided in the manner described in the Terms, including through the Figure Site or other electronic communication. Information relating to a Smart Contract Pool may also be displayed in the applicable Pool Schedule or through the Figure Site before a user submits a Protocol Transaction.

FMHI and other members of the Figure Group may disclose personal, financial, transactional, wallet, blockchain, and other information relating to a user’s use of a Smart Contract Pool to regulatory authorities, law enforcement, courts, service providers, or other persons as permitted or required by applicable law, regulation, legal process, or the Terms.

15. Governing Law and Dispute Resolution

The governing law, formal complaint process, arbitration agreement, class action waiver, jury trial waiver, and dispute resolution provisions in the Terms apply to this Addendum and each Smart Contract Pool. This Addendum does not create a separate dispute resolution process unless expressly stated in the applicable Pool Schedule.

16. Miscellaneous

This Addendum, the Terms, the applicable Pool Schedule, and any other terms or disclosures expressly incorporated by reference constitute the entire agreement between the user and FMHI regarding the user’s access to Smart Contract Pools through a Decentralized Protocol Integration. If any provision of this Addendum is invalid or unenforceable, the remaining provisions will remain in full force and effect to the maximum extent permitted by law. This Addendum may be accepted electronically, and electronic acceptance has the same legal effect as a manually executed signature to the fullest extent permitted by applicable law.

Live Rate Crypto-Backed Loan Pool Schedule

Collateral Asset Category Specific Disclosures

1. A Lender acknowledges and agrees that assets supplied to a Smart Contract Pool may be used by Borrowers in accordance with the Protocol. The existence of Collateral, a Collateral Ratio, a liquidation process, or any overcollateralization requirement does not constitute a guarantee of repayment, performance, return, or withdrawal.

2. A Lender understands and accepts that repayment and return depend on Borrower repayment, Collateral values, oracle accuracy, liquidation execution, market liquidity, Available Liquidity, and Protocol operation. The value of Collateral and Supplied Assets may fluctuate and may be insufficient to satisfy all obligations.

3. A Borrower understands and accepts that Collateral may be liquidated automatically and without advance notice if the Borrower’s position fails to satisfy Protocol requirements. Liquidation may occur during market volatility, network congestion, Figure Site outages, Digital Asset Wallet issues, or oracle failures.

4. Figure, its affiliates, and service providers make no representation, warranty, or covenant, express or implied, as to the collectability, market value, liquidity, sufficiency, legal status, or regulatory treatment of any Supplied Assets, Borrowed Assets, Collateral, Protocol Transaction, or Smart Contract Pool.

Live Rate Home Equity Loan Pool Schedule

Collateral Asset Category Specific Disclosures

5. A Lender acknowledges and agrees that assets supplied to a Smart Contract Pool may be used by Borrowers in accordance with the Protocol. The existence of Collateral, a Collateral Ratio, a liquidation process, or any overcollateralization requirement does not constitute a guarantee of repayment, performance, return, or withdrawal.

6. A Lender understands and accepts that repayment and return depend on Borrower repayment, Collateral values, oracle accuracy, liquidation execution, market liquidity, Available Liquidity, and Protocol operation. The value of Collateral and Supplied Assets may fluctuate and may be insufficient to satisfy all obligations.

7. A Borrower understands and accepts that Collateral may be liquidated automatically and without advance notice if the Borrower’s position fails to satisfy Protocol requirements. Liquidation may occur during market volatility, network congestion, Figure Site outages, Digital Asset Wallet issues, or oracle failures.

8. Figure, its affiliates, and service providers make no representation, warranty, or covenant, express or implied, as to the collectability, market value, liquidity, sufficiency, legal status, or regulatory treatment of any Supplied Assets, Borrowed Assets, Collateral, Protocol Transaction, or Smart Contract Pool.