Article 2- Definitions

Certain terms used in this Agreement are defined as follows:

• User Agreement: This Agreement and its contents.

• Fexse Platform: Fexse is a decentralised and transparent financial ecosystem where physical and digital assets are tokenised using blockchain technology. The platform represents various types of assets such as real estate, artwork, dams, antiques, precious metals (gold, silver) and company shares through digital tokens. Fexse provides an infrastructure where users can securely use these tokens for trading, transfer and investment purposes.

• Tokenization: The process of converting physical assets (e.g., real estate, works of art or precious metals) into digital tokens. Tokenized assets can be made divisible and liquid, allowing seamless transactions on blockchain technology. Tokenization allows large capital investments to be divided into smaller pieces, thus giving access to more investors.

• Asset Backed Token: Asset Backed Tokens are digital tokens that represent physical or financial assets tokenised on the Fexse platform. These tokens digitally reflect the value and economic rights of the underlying asset.

• Fexse Revenue Share: Fexse Revenue Share refers to the distribution of revenues generated by physical and financial assets tokenized on the platform among token holders. Fexse Revenue Share is distributed in FEXSE tokens proportional to the investors' respective shares, only in certain periods and in accordance with the conditions defined in the relevant NFT Contract.

Sources of Income:

Real Estate Tokens

Rental and sales income.

Precious Metal Tokens

Value increase and sales income.

Artwork and Antique Tokens

Sale proceeds.

Company Stock Tokens

Dividend and dividend income.

Energy Facilities (such as dams)

Revenues from production.

• Staking (Locking and Yield Earning): Staking is a mechanism where users contribute to the security of the network and earn rewards by locking their tokens on the platform for a certain period of time.

• User(s): Refers to natural or legal persons who become members of the Platform, benefit from the services offered, and accept this Agreement.

• Token: Digital assets produced on blockchain technology, representing an asset or performance, which can be transferred and traded.

• Blockchain: A decentralized database technology that allows information to be recorded in a transparent and secure way. Blockchain is an immutable storage of data that is verified and approved by all participants in the network. For tokenization of real estate and other real assets, blockchain makes all transactions transparently traceable.

• Smart Contract: Contracts based on conditions that run automatically on the blockchain. On the Fexse platform, smart contracts govern the fair distribution of rental income, payment to token holders , and all transactions performed on the platform.

• DeFi (Decentralised Finance): Refers to decentralized financial systems. Fexse is built on DeFi principles, giving users full control over their own assets. DeFi increases security and efficiency by eliminating third-party intermediaries when trading on the platform.

• DEX (Decentralised Exchange): A decentralized exchange is a platform that allows users to trade tokens. Fexse allows its users to trade FEXSE tokens and other assets on decentralized exchanges.

• Wallet: Refers to digital accounts secured by encryption, where users store their digital assets. Wallets can be internal or external to the Platform.

• Services: Refers to token trading, storage, transfer, reporting and all other transactions offered through the Platform.

• Fiat Currency: Legal tender issued by national governments and used in physical or digital form.

• Cryptocurrency: A digital currency based on blockchain technology, not controlled by a central authority.

• Stablecoin: Refers to digital assets whose value is pegged to a stable reference value, such as a fiat currency (e.g., US Dollar, Euro) or a physical asset (e.g., gold).

• FEXSE: The main token of the Fexse platform. Using FEXSE tokens, investors can invest in real estate assets, receive a share of rental income, and execute transactions within the platform. The FEXSE token is the foundation of the platform's economic structure and is used to generate passive income on a regular basis.

• Marketplace: Refers to the area on the platform where users can buy and sell tokens.

• Qualified Intellectual Title (NFT): A unique type of non-fungible token that represents unique digital assets on the blockchain network. NFTs can be used as proof of authenticity and ownership in the digital world due to their non-interchangeable nature. The NFT mentioned in this Agreement is generated to represent the market value of a specific real estate property.

• Reference Asset: The physical or digital asset on which the value of the Token is based.

• Tokenized Assets:These are digital representations of physical assets that have been converted into tokens on a blockchain. For example, when a real estate property is tokenized, each token represents a fractional ownership share of the property, allowing investors to trade these tokens seamlessly.

• Cliff Period: Refers to the pre-lock period during which tokens are fully locked and closed for sale. During this period, tokens appear in investors' wallets and users can perform transactions such as transfers and rollovers. However, buying and selling transactions are not allowed. The cliff period is implemented to ensure market stability and prevent sudden price fluctuations.

• Vesting Process: Refers to the gradual release of tokens following the end of the cliff period. Tokens are distributed to investors periodically at predetermined rates.

• DAO (Decentralized Autonomous Organization): It is an autonomous organization structure that is managed decentralized on the blockchain and carries out decision-making processes through smart contracts. DAO is based on participatory governance on the platform and critical decisions (e.g. real estate sales) are determined by community voting.

• Tier System: The Tier System is a system of rights and voting authority that allows DAO members to be categorized at different levels according to their contributions and activities on the platform. It is explained in detail in the relevant article in the Agreement.

• Privacy Policy: It refers to the document that is an integral part of this Agreement, which contains provisions regarding the collection, processing and protection of users' personal data.