USDM Product Structuring

Mountain Protocol Limited (the "Company") is a licensed Digital Asset Business (license #202302512) allowed to conduct the following business activities:

• Issuing, selling, and redeeming virtual coins, tokens, or any other form of digital assets.

• Providing custodial wallet services.

The Company provides its services by directly issuing the USDM token, operating the Mountain Protocol platform, and leveraging multiple service providers directly or on users' behalf.

Rights conferred by the USDM token

The Company will ensure US$ 1 or an equivalent amount of USD-denominated assets will be held in the name of the Company with regulated financial institutions in bankruptcy-remote accounts, segregated from the operating accounts of the Company, held on behalf of, and for the benefit of, Users that request a redemption of USDM ("Redeeming Users").

Every USDM minted and sold by the Company and remaining in circulation, either US$1 or an equivalent amount of USD-denominated assets in such segregated accounts, will be held in the name of the Company in such segregated accounts on behalf of and for the benefit of, Redeeming Users.

The Company commits to redeem 1 USDM for US$1 from a Redeeming User, subject to compliance with the Company's policies and procedures and the "Terms of Service" accepted by Users.

User experience

This user experience of USDM will feel familiar to users of other stablecoins such as USDC, USDT, GUSD, or other fiat-backed stablecoins, since they all:

• Have Primary users (KYC'd account holders) and Secondary users (pseudonymous users with no direct relationship with the issuer).

• Allow primary users to purchase and redeem stablecoins at a 1:1 price via portal or API, used mainly by Exchanges, Arbitrageurs/Market Makers, or large buyers.

• Rely on arbitrageurs to maintain secondary market prices at ~$1.

• The Token can be used freely in the secondary market, including transfers to other EOAs or Smart Contracts, without any additional approvals.

User types

The Company also recognizes two types of users: primary and secondary users.

Primary users (or customers) have an approved account with Mountain Protocol, granting them access to the Mountain Protocol platform. The platform allows users to purchase and redeem USDM with USDC (fiat payments coming soon). Accounts will be eligible to incorporate businesses in supported jurisdictions that do not participate in restricted economic activities, pending compliance approval.

Secondary users (or customers) are those who acquired their USDM via the secondary market, such as a pool in Curve or other DeFi applications, or have been paid in USDM by another USDM holder. Secondary users need to apply for a Mountain Protocol account before they can redeem USDM directly with the Company. Alternatively, users can choose to swap their USDM to other users in the secondary market.