Bitwise Premium RWA Vault

Risks and Important Information

This vault is a technology-mediated lending protocol in which users supply AUSD to a lending pool and earn variable interest paid by borrowers. It is not a managed fund, investment product, or common enterprise. Yield is generated from algorithmically determined interest based on borrower demand and protocol utilization — not from the entrepreneurial or managerial efforts of Bitwise or any other person.

Vault Curation Services for this vault are provided by Bitwise Investment Manager, LLC ("BIM"). BIM is registered with the U.S. Securities and Exchange Commission ("SEC") as an investment adviser. That registration relates to BIM's separately conducted advisory business. BIM is not acting as an investment adviser, fiduciary, or in any advisory capacity in connection with this vault. The SEC has not approved or endorsed this vault or any vault product. No regulatory protections afforded to BIM's investment advisory clients extend to vault users. No advisory, fiduciary, trust, or client relationship is created between BIM and any vault user.

Custody of assets deposited into the vault is maintained through user-controlled wallets and the onchain smart contract infrastructure of the Morpho protocol. Bitwise does not custody user assets.

Risk factors. Participation in DeFi lending carries material risks, including the risk of total loss of deposited assets. Risk factors include, but are not limited to:

• Smart contract risk. This vault relies on smart contract code that may contain bugs, vulnerabilities, or exploitable weaknesses. A smart contract exploit could result in partial or total loss of all deposited assets. Smart contract audits are available at https://docs.morpho.org/get-started/resources/audits

• Collateral and credit risk. If borrower collateral values decline rapidly, liquidation proceeds may be insufficient to cover outstanding loans, resulting in bad debt allocated to depositors. The quality, liquidity, and volatility of accepted collateral types directly affects the risk profile of this vault.

• RWA-specific risk. Tokenized real-world assets carry credit, structural, and provider-specific risks, including valuation risk, custodial risk, legal and enforcement risk, and redemption risk. The collateral characteristics, default history, insurance arrangements, and structural features described above are as represented by the respective third-party providers; Bitwise has not independently verified this information and makes no representation or warranty regarding its accuracy or completeness.

• Liquidity risk. Withdrawal is subject to available liquidity in the underlying lending pool. If utilization is high, withdrawal may be delayed or temporarily unavailable.

• Oracle risk. The lending protocol relies on price oracles. Oracle failure, manipulation, or stale data could result in improper liquidations or failure to liquidate undercollateralized positions.

• Regulatory risk. The regulatory classification of DeFi lending protocols, vault interests, and digital assets is uncertain and evolving. Regulatory action may restrict, prohibit, or alter the availability or structure of this vault.

• Protocol risk. The underlying Morpho protocol is operated by third parties. Bitwise does not control the operation, security, governance, or solvency of the protocol.

• Variable yield. Yields are variable, not guaranteed, and may be zero.

• No insurance. This vault is not insured by the Federal Deposit Insurance Corporation (FDIC), the Securities Investor Protection Corporation (SIPC), or any other governmental or private insurance program. You may lose some or all of your deposited assets.

Certain information in this press release, including collateral characteristics, historical performance, default history, insurance arrangements, and structural features, is based on or derived from information provided by independent third-party sources, including the providers of the RWA collateral described above. Bitwise believes these sources are reliable but has not independently verified the accuracy or completeness of such information or the assumptions on which it is based.

Target APY of 5–6% is a current estimate based on prevailing borrower demand and market utilization as of the date of this press release. APY is variable, determined algorithmically by the protocol's utilization-based interest-rate model, is not fixed, is not guaranteed, and may change at any time without notice. Actual yields may be materially higher or lower than the target, including zero. Past rates are not indicative of future rates.

This press release is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities or financial instruments in any jurisdiction. Nothing in this press release constitutes investment, financial, legal, or tax advice. You should consult your own advisors before participating.

Use of this vault is governed by the Bitwise Onchain Terms of Use, including Schedule A: Lending Vault Terms, available at https://onchain.bitwiseinvestments.com/tos.