3.9 Vesting Process and Token Locking

a) Definition and Purpose of the Vesting Process

The vesting process is a locking mechanism that enables the gradual release of tokens of tokenized assets (real estate, artwork, precious metals, company shares and other assets) on the Fexse platform, aiming to maintain market stability and long-term investor loyalty. This process consists of two stages:

• Cliff Period (Pre-Lockdown Period)

• Vesting Process (Gradual Opening Period)

b) Cliff Period (Pre-Lockdown Period)

The Cliff Period is a period when tokens are fully locked and investors are not authorized to sell their tokens.

• Cliff Duration Length: To be specified in the NFT Contract and related Yellow Paper.

• In this period:

1. Tokens appear in the trader's wallet but are closed for sale and withdrawal.

2. Tokens are held in a secure locking pool on the Fexse platform.

3. The Cliff period is applied to prevent sudden selling pressure and to stabilize the market.

c) Vesting Period (Gradual Opening Period)

With the end of the cliff period, tokens are gradually released and made available to investors.

• Release Rate:

1. A certain percentage of tokens will be opened periodically according to the rates to be defined in the NFT Contract and Yellow Paper.

2. The locked tokens remaining during the vesting period will be visible on the blockchain.

3. Release period: Tokens will be released monthly or other specified periods.

Example:

• The investor purchased 1,000 tokens.

• Cliff Period: Tokens remain fully locked for the first 6 months.

• Vesting Period: 16.67% of tokens are released every month for the next 6 months.

d) Vesting Process Monitoring and Transparency

Traders via the Vesting Dashboard on the Fexse platform:

• The amount of locked tokens,

• The amount of tokens released,

• The remaining locked token rates,

• It can transparently track when the vesting period expires.

All lock and release operations are automatically executed through smart contracts and transparently recorded on the blockchain.

e) Sale and Transfer Conditions in the Vesting Process

• Cliff Time:

1. The tokens appear in the trader's wallet.

2. Sales and withdrawals are closed.

3. Tokens are held in Fexse's secure locking pool.

• Vesting Period:

1. Tokens are transferred to investors' wallets as they are gradually opened.

2. Tokens released:

Eligible for Sale

Available for Transfer

Withdrawable to External Wallets

f) Determination of Vesting and Cliff Periods

• Cliff and Vesting periods are specified in the NFT Contract, Smart Contract and Yellow Paper specific to the respective asset.

• No fixed term or rate is defined under this contract.

• The DAO and the Tier System may determine the arrangements for locking and release conditions through the relevant technical documents.