ADDENDUM A TO THE OWND TERMS OF SERVICE: ADDITIONAL TERMS REGARDING THE OWND CO-OWNERSHIP SERVICE

(Last updated 1 June 2023)

These Additional Terms of Service are an addendum to the Terms of Service (“Agreement”) that you agreed to when registering as a user on the OWND Platform. The Additional Terms of Service leave the Agreement in full force and effect and merely supplement the Agreement with additional terms that specifically govern your use of the experimental OWND Co-Ownership Service that is now provided via the OWND Platform.

Experimental protocol: There are many inherent risks associated with purchasing, holding and reselling NFTs (see Section 6 of the Agreement). In order to mitigate those risks, OWND has developed a new and experimental smart contract protocol that enables users to become co-owners of an NFT by purchasing a percentage of an NFT instead of purchasing an entire (and expensive) NFT on their own. The experimental smart contract protocol developed by OWND has been thoroughly tested, but it is important to be aware that there may still be unknown vulnerabilities.

Co-ownership: Co-ownership means that one or more individuals share ownership of an asset with one or more other individuals. Each co-owner owns a percentage of the asset in question and the rights of each owner are defined in accordance with a contract. You can purchase and hold an NFT together with other individuals by privately concluding a written or oral agreement which determines the conditions for such co-ownership. However, you can also choose to share the ownership of an NFT with others by using the OWND Co-Ownership Service provided via the OWND Platform. In this case the terms and conditions for co-ownership are set out in a smart contract that is provided by OWND.

The initial purchase: The OWND Platform will display NFTs that have been purchased by an NFT buyer who is willing to share ownership of the NFT with other individuals and who has therefore completed the purchase using a co-ownership smart contract provided by OWND. For the time being, the co-ownership smart contract protocol is still in its experimental phase, and it is therefore OWND who has acted as NFT buyer and has carried out the initial purchase of the NFTs which are displayed on the OWND Platform as NFTs that you can co-own. Once the experimental phase is completed successfully, any user of the OWND Platform will be able to make the initial purchase of an NFT through the co-ownership smart contract protocol.

The subsequent transactions: The core feature of the co-ownership smart contract protocol developed by OWND is that the original NFT buyer has no influence on the subsequent purchases and sales of percentages of the NFT, nor does any subsequent purchase and sale of either percentages or the entire NFT depend on an agreement being reached between the current co-owners of the NFT. The terms and conditions for becoming and being a co-owner of the NFT in question as well as the terms and conditions for withdrawing from joint ownership and selling a percentage of the NFT are all laid down in advance in the smart contract governing the co-ownership of the NFT and these terms and conditions cannot be changed either by the original NFT buyer or by any other co-owners of the NFT. Thus, the NFT is jointly owned by the joint investment pool from the moment it has been purchased using the co-ownership smart contract provided by OWND and any decisions to purchase and sell are made automatically according to that smart contract.

Purchasing a percentage: You can become a co-owner of an NFT by purchasing a percentage of one of the NFTs that are listed on the OWND Platform as NFTs that you can co-own, meaning that they are subject to a co-ownership smart contract provided by OWND. You must use your OWND Vault to complete the purchase (see Section 4 of the Agreement). If you do not have the required amount of cryptocurrency stored in your OWND Vault, you can purchase and deposit cryptocurrency in your OWND Vault by using the services provided by Onramper (Safudex B.V.) with whom OWND has concluded a fiat-to-crypto onramp services agreement. Once you have completed the purchase, your co-ownership will be registered directly in the smart contract governing the co-ownership of the NFT, and you will be able to claim your rights under the smart contract via the OWND Platform.

Selling a percentage: If you no longer wish to be a co-owner of the NFT in question, you can sell your percentage for the current bid market price via the OWND Platform. It is important to note that the percentage owned by you is NOT a share of a fractionalized NFT that you can list for sale on an NFT trading platform and sell directly to other NFT buyers (horizontal sales). Your percentage can only be sold back to the investment pool in accordance with the terms and conditions laid down by the co-ownership smart contract (vertical sales). It is the co-ownership smart contract that decides whether the investment pool is willing to repurchase the percentage that you wish to sell. This decision is made automatically on the basis of data regarding the existence of other NFT buyers looking to become co-owners of the NFT in question. If the smart contract decides that the joint investment pool is willing to buy, the repurchase of your percentage of the NFT will be completed at any time at a price that corresponds to the same percentage of the current market price at that moment. To make this work, the joint investment pool has a reserve of Polygon (MATIC). In extreme market conditions where many more people want to sell than buy, the pool reserve will be emptied, resulting in the NFT being sold automatically at the current market price (i.e., liquidation). After such sale of the entire NFT, your share of the sales amount can be claimed through the OWND Platform.