Qualified Subordination

The investors’ redemption claim is subject to a qualified subordination. As a result, an investor bears an entrepreneurial risk higher than that of a regular lender. Thus, investors only have a claim against the Issuer for redemption to the extent that the assertion of the claim would not lead to insolvency of the Issuer (insolvency, imminent insolvency or over-indebtedness). This may result in payments to investors being delayed or even cancelled altogether. Furthermore, in the event of the Issuer's insolvency or liquidation, the investors’ claims under the token-based bonds will be subordinated to the claims of all other creditors of the Issuer which be serviced with priority. The subordinated claims of the creditors of the token-based bonds may only be settled from existing or future annual net profits, any existing or future liquidation surplus or other free assets of the Issuer. The total loss of the invested capital may result from this.