ANNEX A

1. Entity in Scope

This Annex applies exclusively to:

• Polar Tensor™ Europe SP ZOO (the "EU CASP Applicant")

acting as the sole EU-regulated Crypto-Asset Service Provider for EU-resident clients.

2. CASP Level 3 Scope Confirmation

The EU CASP Applicant confirms that it seeks and is operationally prepared for MiCA CASP Level 3 authorisation, covering:

• custody and safeguarding of crypto-assets on behalf of clients;
• execution of crypto-asset orders on behalf of clients (via execution-only technology);
• reception and transmission of orders;
• exchange of crypto-assets for crypto-assets and fiat (via licensed MSB partners);
• ancillary client account administration.

No services outside CASP Level 3 are performed.

3. Governance & Organisational Substance

(MiCA Arts. 63–68, RTS on governance & internal control)

The EU CASP Applicant maintains:

• a locally established management body with decision-making authority;
• documented allocation of responsibilities (custody, compliance, operations, ICT);
• segregation between EU-regulated custody & client control, and non-EU execution technology and R&D;
• internal compliance, risk, and audit functions proportionate to CASP Level 3 scope.

No material operational decision affecting EU clients is taken outside the EU CASP Applicant.

4. Custody & Safeguarding

(MiCA Art. 70 + RTS Safeguarding)

The EU CASP Applicant confirms:

• client crypto-assets are held segregated and attributable per client;
• internal ledgers allow full reconstruction at any point in time;
• legal ownership remains continuously with the client;
• no client assets are lent, rehypothecated, pledged, or used for proprietary purposes;
• withdrawal authority rests exclusively with the EU CASP Applicant.

Execution-layer interaction does not impair custody control.

5. Execution Model

(MiCA Arts. 3(16), 73, 80)

Execution of crypto-asset orders is provided through execution-only infrastructure operated by:

• Polar Tensor™ Corp.

under a strict intercompany execution mandate, whereby:

• execution logic is predefined and uniform;
• no discretionary portfolio management occurs;
• no personalised investment decisions are made;
• no client onboarding or custody is performed by the execution provider.

The EU CASP Applicant remains the regulated execution counterparty vis-à-vis the client.

6. Exchange Functionality (Crypto ↔ Crypto / Fiat)

Where exchange functionality is offered:

• it is executed via licensed payment and exchange partners;
• the EU CASP Applicant retains client relationship and disclosure obligations;
• pricing, spreads, and fees are transparently disclosed;
• no market-making, leverage, or derivatives are offered.

7. Conflicts of Interest

(MiCA Art. 72)

The EU CASP Applicant has implemented:

• formal conflict identification across custody, execution, and fees;
• prohibition of execution discretion influenced by remuneration;
• structural separation between EU custody and non-EU execution tech;
• client-first execution neutrality principles.

Residual conflicts are disclosed and mitigated.

8. ICT, DORA Alignment & Operational Resilience

(MiCA Art. 67 + DORA principles)

The EU CASP Applicant applies:

• ICT risk management proportional to CASP Level 3;
• logging, access controls, and execution audit trails;
• incident response and recovery procedures;
• third-party risk oversight for execution and infrastructure providers;
• business continuity and disaster recovery planning.

9. Outsourcing & Group Dependencies

(MiCA RTS on outsourcing)

All outsourcing and group service dependencies:

• are governed by written agreements;
• preserve EU regulatory control;
• grant audit and information rights;
• include exit and substitution plans.

No outsourcing results in loss of CASP accountability.

10. Record-Keeping & Supervisory Access

(MiCA ITS)

The EU CASP Applicant maintains records sufficient to:

• reconstruct client positions, trades, and balances;
• demonstrate custody integrity;
• evidence execution neutrality; and
• support supervisory inspections.

11. CASP Level 3 Statement

The EU CASP Applicant confirms that its current operational structure already meets CASP Level 3 standards, subject only to formal authorisation.

ANNEX B: EXECUTION-ONLY TECHNOLOGY CLASSIFICATION

(CASP Level 3 – No Discretion · No AIF · No MiFID Trigger)

1. Classification Statement

Automated trading functionality accessed by EU clients constitutes:

execution of crypto-asset orders via non-discretionary technology, not asset management, advisory, or collective investment activity.

2. Level-3 Boundary Analysis

The system:

• does not optimise portfolios per client;
• does not rebalance or allocate capital discretionarily;
• does not pool client decision-making;
• does not rely on managerial effort for returns.

Accordingly:

• MiFID II investment services are not triggered;
• AIFMD does not apply;
• CASP Level 3 execution permissions are sufficient.

ANNEX C: CLIENT ASSET FLOW & OMNIBUS EXECUTION WALLETS

(CASP Level 3 Safeguarding Interpretation)

1. Legal Characterisation

Aggregated execution wallets are used solely for:

• temporary execution efficiency;
• technical order routing.

They do not constitute pooled assets under MiCA.

2. Level-3 Safeguards

• continuous reconciliation;
• individual economic attribution;
• no withdrawal authority at execution layer;
• immediate reversibility to custodial wallets.

ANNEX D: INDEPENDENT MARKETING & DISTRIBUTION

(CASP Level 3 Safe Harbour)

1. Level-3 Marketing Boundary

Independent marketers:

• perform commercial introduction only;
• do not trigger CASP status;
• do not perform regulated crypto-asset services.

2. Regulatory Outcome

All regulated activities remain with the EU CASP Applicant.

No MiCA licensing is required for marketers.