Risk Disclosures

Investing through the Reelmine platform is high risk. The financial instruments accessible via the Platform (tokenised SPV equity, credit facilities collateralised by such equity, short-dated bridge loans) are intended exclusively for qualified, professional or accredited investors who understand and can bear the risk of total loss of their invested capital.

You should not invest more than you can afford to lose entirely. Past performance — of any producer, project, slate or model — is not a reliable indicator of future results. Returns are inherently uncertain and may be zero or negative.

Reelmine is a technology platform. It is not, by itself, a bank, a credit institution, a payment institution, an investment firm, a broker-dealer, a custodian or a crypto-asset service provider.

Regulated activities — including the issuance, custody, transfer and settlement of digital assets, the operation of regulated lending vehicles, payment processing, identity verification and AML / sanctions screening — are performed by partners that are regulated and licensed in the relevant jurisdictions (typically under MiCA / CASP regimes in the EU, FCA permissions in the UK, and applicable state and federal frameworks in the US). The identity of the relevant partner(s) for a given offering is disclosed in the offer documents you receive at the moment of use.

You should be aware that:

• The protections you enjoy depend on the specific regulatory status of the partner involved in the transaction, not on Reelmine itself.
• Authorisations granted to a partner can be amended, suspended or withdrawn by the relevant regulator. Such changes can affect the ability to issue, transfer, custody or redeem the instruments you hold.
• Reelmine selects partners on the basis of regulatory standing, operational maturity and insurance cover, but it does not guarantee the solvency, performance or continued authorisation of any partner.
• Where a partner becomes insolvent, ceases operations or experiences a security incident, recovery of assets may be partial, delayed or impossible.

Film projects depend on creative, operational and market factors that are difficult to predict. Specific risks include:

• Production risk — delays, cost overruns, loss of cast or director, force majeure events on set, changes in shooting locations, or technical failures.
• Completion risk — the film may fail to be completed even if a completion bond is in place; bonded amounts may not cover the full equity exposure.
• Distribution risk — distributors may delay or cancel release, change the release window, alter the marketing spend or default on minimum guarantees.
• Market risk — audience reception, critical reception, competing releases or shifts in consumption habits can materially reduce expected revenue.
• Talent risk — the involvement of named cast or directors is not guaranteed until contracts close, and individual circumstances can change.
• Currency risk — receivables are often denominated in multiple currencies, exposing returns to FX fluctuations.
• Tax credit risk — production incentives, rebates and soft-money components depend on rules that may change retroactively or be subject to audit clawbacks.

When SPV equity is represented by an on-chain token, additional technology risks apply on top of the underlying investment risk:

• Smart contract risk — even audited contracts may contain undiscovered bugs. An exploit may result in loss, freezing or misallocation of tokens.
• Custody risk — loss, theft or compromise of private keys (yours or a custodian's) may result in irrecoverable loss.
• Network risk — the underlying blockchain may suffer outages, congestion, chain reorganisations, governance disputes or contentious forks.
• Oracle and bridging risk — components that bring off-chain data on-chain (e.g. revenue waterfalls) introduce additional points of failure.
• Upgrade risk — changes to smart contracts, even when time-locked and multi-sig governed, can alter the economics of the token.

Lenders to the Equity-Backed Credit and Bridge Loan products take additional credit-specific risks:

• Borrower default — the borrower may fail to repay principal or interest on the contractual schedule.
• Collateral value risk — the value of pledged equity tokens, presold receivables or tax credits may decline below the loan balance.
• Enforcement risk — enforcing security across multiple jurisdictions can be slow, costly and may not yield the expected recovery.
• Concentration risk — a portfolio may be exposed to a single producer, slate or distributor and consequently to common downside scenarios.
• Subordination risk — your facility may rank behind senior lenders, gap financiers or guild residual claims.

SPV equity tokens and credit instruments offered through Reelmine are illiquid. There is no developed secondary market and there is no guarantee that one will emerge. You should be prepared to hold your position until the underlying project monetises and capital is returned through the contractual waterfall, which can take several years and may produce uneven cash flows. Where Reelmine introduces a peer-to-peer or auction mechanism for transfer, prices may be materially below fair value and execution is not guaranteed.

The regulatory framework around tokenised securities, crypto-asset service providers and film financing structures is evolving. Specifically:

• New or amended regulations (MiCA secondary acts, FCA crypto rules, SEC enforcement, tax rules) may restrict or change the way the Platform — or its regulated and licensed partners — operate.
• A regulator may require the suspension or restructuring of an offering, which could affect timing, returns or the legal characterisation of the instrument.
• A specific instrument may be re-characterised under local law (e.g. as a security, a collective investment scheme or a regulated lending product) with retroactive consequences.
• Sanctions and AML obligations enforced by Reelmine's regulated partners may require the freezing of accounts or the reversal of transactions.

Tax treatment depends on your individual circumstances and on the jurisdiction in which you are resident. Income, capital gains, withholding, VAT and stamp duty rules differ across jurisdictions and may change. Reelmine does not provide tax advice. You should consult an independent tax adviser before participating in any offering.

Reelmine's AI engine produces scores, comparables and projected economics that are used to inform — not replace — human investment decisions. Limitations include:

• Models are trained on historical data; future market behaviour may diverge significantly.
• Inputs may be incomplete, mislabelled or unrepresentative of the project's actual potential.
• Outputs are probabilistic and carry confidence intervals; they are not guarantees.
• Model logic and weights may evolve over time. Two assessments of the same project at different dates may reach different conclusions.

Reelmine, its affiliates and its team may hold equity, debt or other economic interests in the SPVs, producers, distributors or service providers visible on the Platform. We maintain a written conflicts of interest policy, internal information barriers and a related-parties register. A summary is available on request and conflicts are disclosed in offer documents where they are material to a specific transaction.

The Platform may show forward-looking statements (projected revenues, IRR ranges, completion dates, slate composition). These are based on assumptions believed to be reasonable at the time of publication but are subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially. Reelmine assumes no obligation to update forward-looking statements except where required by law.

Nothing on the Platform constitutes investment, tax, legal or accounting advice or a personal recommendation. The information presented is general in nature and does not take into account your investment objectives, financial situation or particular needs.

Before participating in an offering you must read the relevant offer documents in full, conduct your own due diligence and, where appropriate, consult independent professional advisors. By participating you confirm that the investment is suitable for you given your experience, risk tolerance and overall portfolio.

Questions about these disclosures or about a specific offering should be addressed to info@reelmine.ai. For data-protection questions, see our Privacy Policy; for the underlying contractual framework, see our Terms of Service.