White Paper Report


			..
	White paper for crypto-assets other than asset-referenced tokens or e-money tokens

	Digital Token Identifier:	XD0DSZSKQ
	Offeror or person seeking admission to trading:	2173324 - Katana Token DeployCo (BVI) Ltd. ("Company")
	Type of submission:	New

Table of content
General information
SUMMARY
Part A - Information about offeror or person seeking admission to trading
Part B - Information about issuer, if different from offeror or person seeking admission to trading
Part C - Information about the operator of the trading platform in cases where it draws up the crypto-asset white paper and information about other persons drawing the crypto-asset white paper pursuant to Article 6(1), second subparagraph, of Regulation (EU) 2023/1114
Part D - Information about other token project
Part E - Information about offer to public of other tokens or their admission to trading
Part F - Information about other tokens
Part G - Information on rights and obligations attached to other tokens
Part H – Information on underlying technology
Part I - Information on risks
Part J - Information on the sustainability indicators in relation to adverse impact on the climate and other environment-related adverse impacts




[Table 2] Template for white papers for crypto-assets other than asset-referenced tokens or e-money tokens

Template for white papers for crypto-assets other than asset-referenced tokens or e-money tokens [abstract]
General information
00 Table of content	boolean true	true
01 Date of notification	date	2025-11-26
02 Statement in accordance with Article 6(3) of Regulation (EU) 2023/1114	boolean true	This crypto-asset white paper has not been approved by any competent authority in any Member State of the European Union. The person seeking admission to trading of the crypto-asset is solely responsible for the content of this crypto-asset white paper.
03 Compliance statement in accordance with Article 6(6) of Regulation (EU) 2023/1114	boolean true	This crypto-asset white paper complies with Title II of Regulation (EU) 2023/1114 of the European Parliament and of the Council and, to the best of the knowledge of the management body, the information presented in the crypto-asset white paper is fair, clear and not misleading and the crypto-asset white paper makes no omission likely to affect its import.
04 Statement in accordance with Article 6(5), points (a), (b), (c), of Regulation (EU) 2023/1114	boolean true	The crypto-asset referred to in this crypto-asset white paper may lose its value in part or in full, may not always be transferable and may not be liquid
05 Statement in accordance with Article 6(5), point (d), of Regulation (EU) 2023/1114	boolean true	Not applicable
06 Statement in accordance with Article 6(5), points (e) and (f), of Regulation (EU) 2023/1114	boolean true	The crypto-asset referred to in this white paper is not covered by the investor compensation schemes under Directive 97/9/EC of the European Parliament and of the Council or the deposit guarantee schemes under Directive 2014/49/EU of the European Parliament and of the Council.
SUMMARY
07 Warning in accordance with Article 6(7), second subparagraph, of Regulation (EU) 2023/1114	boolean true	Warning This summary should be read as an introduction to the crypto-asset white paper. The prospective holder should base any decision to purchase this crypto –asset on the content of the crypto-asset white paper as a whole and not on the summary alone. The offer to the public of this crypto-asset does not constitute an offer or solicitation to purchase financial instruments and any such offer or solicitation can be made only by means of a prospectus or other offer documents pursuant to the applicable national law. This crypto-asset white paper does not constitute a prospectus as referred to in Regulation (EU) 2017/1129 of the European Parliament and of the Council or any other offer document pursuant to Union or national law.
08 Characteristics of the crypto-asset	textBlock	The Token is a fungible token based on the ERC-20 standard issued natively on the Katana Chain ("Network"). The Network is optimized for decentralized finance ("DeFi") and creates a liquidity favorable base layer that other applications deployed on the Network can build upon without needing to bootstrap liquidity independently ("Network Purpose"). The Token can be staked based on a ve(3,3)-style model applied at Network level ("Staking Functionality"), as further described under F.2. The Staking Functionality ultimately grants access to voting on defined matters related to the Network Purpose ("Voting Scope"). The Staking Functionality is purely technical and does not confer any rights nor impose any obligations on Token holders in a legal sense. The Token has a fixed total supply of 10 billion units. The Token is provided "as is". KAT is a crypto asset as defined by article 3 (1) (5) of Regulation (EU) 2023/1114.
09 Further information about utility tokens	textBlock	Not applicable.See 05 statement. The Tokens to be admitted to trading are freely transferable.
10 Key information about the offer to the public or admission to trading	textBlock	Katana Token DeployCo (BVI) Ltd ("Company") acts as both the offeror and person seeking admission to trading. The Company seeks admission of the Token on multiple Trading Platforms, operating within the European Union ("EU") or the European Economic Area ("EEA") ("Trading Platforms"). At the time of the present notification, listings are sought but were not yet confirmed. The up-to-date list of confirmed and available Trading Platforms will be maintained on the Company's website. In seeking admission to trading, the Company complies with its obligations under article 5 of Regulation (EU) 2023/1114.
Part A - Information about offeror or person seeking admission to trading
A.1 Name	text	Katana Token DeployCo (BVI) Ltd. ("Company")
A.2 Legal form	text	6EH6
A.3 Registered address
Registered addess	text	Craigmuir Chambers Road Town Tortola VG1110 VG
Country	enumeration	Virgin Islands (British)
Sub-division	text	Not applicable.
A.4 Head office
Head office	text	Not applicable
Country	enumeration
Sub-division	text	Not applicable
A.5 Registration date	date	2025-03-28
A.6 Legal entity identifier	LEI
A.7 Another identifier required pursuant to applicable national law	text	2173324
A.8 Contact telephone number	text	+1 (805) 409-7113
A.9 E-mail address	text	support@katana.network
A.10 Response time (days)	integer	14
A.11 Parent company	text	Katana Foundation
A.12 Members of the management body
Member #1	id	1
Identity	text	Shubham Gupta
Business address	text	Craigmuir Chambers Road Town Tortola VG1110 VG
Function	text	Director
A.13 Business activity	textBlock	The Company provides services in the field of new technologies, and supports the development, adoption and growth of the Network and its ecosystem.
A.14 Parent company business activity	textBlock	The Katana Foundation supports the development, adoption and growth of the Network and its ecosystem
A.15 Newly established	boolean	true
A.16 Financial condition for the past three years	textBlock	Not available. The Company has been registered for less than 3 years
A.17 Financial condition since registration	textBlock	Source of Financial Resources. The financial condition of the Company is stable, supported by a revolving line of credit of up to USD 15 million issued by DeFi Pillar Ltd. The financial resources of the Company will be further increased by proceeds from the offer. Sufficiency of Financial Resources. Given the above, the Company possesses sufficient financial resources to support its activities, and, at present, it does not face material financial risks or uncertainties that would affect its financial viability
Part B - Information about issuer, if different from offeror or person seeking admission to trading
B.1 Issuer different from offerror or person seeking admission to trading	boolean	false
B.2 Name	N/A		.
B.3 Legal form	N/A		.
B.4 Registered address
Registered addess	N/A		.
Country	N/A		.
Sub-division	N/A		.
B.5 Head office
Head office	N/A		.
Country	N/A		.
Sub-division	N/A		.
B.6 Registration date	N/A		.
B.7 Legal entity identifier	N/A		.
B.8 Another identifier required pursuant to applicable national law	N/A		.
B.9 Parent company	N/A		.
B.10 Members of the management body
Member #1	N/A		.
Identity	N/A		.
Business address	N/A		.
Function	N/A		.
B.11 Business activity	N/A		.
B.12 Parent company business activity	N/A		.
Part C - Information about the operator of the trading platform in cases where it draws up the crypto-asset white paper and information about other persons drawing the crypto-asset white paper pursuant to Article 6(1), second subparagraph, of Regulation (EU) 2023/1114
C.1 Name	N/A		.
C.2 Legal form	N/A		.
C.3 Registered address
Registered address	N/A		.
Country	N/A		.
Sub-division	N/A		.
C.4 Head office
Head office	N/A		.
Country	N/A		.
Sub-division	N/A		.
C.5 Registration date	N/A		.
C.6 Legal entity identifier	N/A		.
C.7 Another identifier required pursuant to applicable national law	N/A		.
C.8 Parent company	N/A		.
C.9 Reason for crypto-asset white paper preparation	N/A		.
C.10 Members of the management body
Member #1	N/A		.
Identity	N/A		.
Business address	N/A		.
Function	N/A		.
C.11 Operator business activity	N/A		.
C.12 Parent company business activity	N/A		.
C.13 Other persons drawing up the crypto-asset white paper according to Article 6(1), second subparagraph, of Regulation (EU) 2023/1114	N/A		.
C.14 Reason for drawing the white paper by persons referred to in Article 6(1), second subparagraph, of Regulation (EU) 2023/1114	N/A		.
Part D - Information about other token project
D.1 Crypto-asset project name	text	Katana Network
D.2 Crypto-asset name	text	See F.13
D.3 Abbreviation	text	See F.13
D.4 Crypto-asset project description	textBlock	Network Architecture: The Network is an Ethereum Layer-2 built using the AggLayer Chain Development Kit ("CDK") in a CDK-opgeth-zkRollup configuration. In this model, the Network functions as a zero-knowledge rollup and uses an optimized version of Geth ("opGeth") as its execution client. The software that processes transactions, executes smart-contract logic, and maintains local state. Operators run opGeth to compute the effects of user transactions and package them into rollup blocks. Operators also run a separate proving program ("zk-prover") that converts the execution trace produced by opGeth into a zero-knowledge proof demonstrating that the resulting state transition is valid. Such proofs are then submitted to Ethereum together with the Network's proposed state update. Although operators execute transactions locally and off-chain, they cannot finalize any incorrect or fraudulent state: Ethereum accepts a rollup update only if it is accompanied by a valid zero-knowledge proof, which mathematically ensures that the computation followed the correct rules. In this way, opGeth alone does not provide security, but the combination of opGeth and the zk-prover, whose output is finally verified by Ethereum, ensures the integrity of the Network. Network Purpose: The Network is optimized for decentralized finance ("DeFi") and creates a base layer that other applications deployed on the Network ("Deployed Applications") can build upon without needing to bootstrap liquidity independently ("Network Purpose"). The Network's architecture channels allow users to contribute liquidity to certain third-party DeFi protocols that are integrated into the Network ("Embedded Applications") and serve as liquidity for the broader ecosystem. The Network is not owned, operated or controlled by the Company. Embedded Applications remain independent infrastructures deployed on the Network, and are not owned, operated, or controlled by the Company. The Network Purpose is notably deployed through the following two architecture elements: ▪ Chain Owned Liquidity: Katana uses a "chain-owned liquidity" mechanism through which a portion of sequencer fees and Embedded Application fees is allocated to a treasury owned by the Network itself ("Treasury") used to buy liquidity positions on Embedded Applications, such as Morpho and Sushiswap. Therefore, the Network continuously maintains liquidity of its Embedded Applications and deepens its own liquidity. ▪ Vault Bridge: Katana's bridging system allows users to store assets with Embedded Applications (e.g., Ethereum-based Morpho vaults) that generate yield for the Treasury
D.5 Details of all natural or legal persons involved in implementation of crypto-asset project
Person #1	id	1
Type of person	enumeration	Advisor
Name of person	text	DeFi Pillar Ltd. (Affiliate of Polygon Labs)
Business address of person	text	c/o Harneys Fiduciary (Cayman) Limited, 4th Floor, Harbour Place, P.O. Box 10240, Grand Cayman KY1-1002, Cayman Islands
Domicile of company	enumeration	Cayman Islands
Person #2	id	2
Type of person	enumeration	Advisor
Name of person	text	GSR Markets Limited
Business address of person	text	Suite 5508, 55th Floor, Central Plaza, 18 Harbour Road, Wanchai, Hong Kong
Domicile of company	enumeration	Hong Kong
D.6 Utility token classification	boolean	false
D.7 Key features of goods or services for utility token projects	text	Not applicable. See D.06.
D.8 Plans for the token
Description of past milestones	textBlock	Milestones achieved on or prior to the date of this White Paper: ▪ Third party security audit completed in March 2025; ▪ Network Testnet launch 2025-05-20;
Description of future milestones	textBlock	Milestones planned for the future. The planned milestones are indicative and could be subject to change based on strategic, regulatory, or market considerations. ▪ Network Public Mainnet and Token TGE: 2026-03-18; ▪ Token Unlock (for Tokens publicly offered under this White Paper): 2026-06-30 at the latest.
D.9 Resource allocation	text	Presently, the revolving loan is presently used to support the ongoing development, deployment, and adoption of the Network. This may include, among other things, payment of employees and third-party service providers, infrastructure costs, and the repayment of debts incurred in connection with the Network's development and promotion to date.
D.10 Planned use of collected funds or other tokens	text	The proceeds of the offer will primarily be used to further develop, build, and maintain the Network, as is currently the case with the support of the revolving loan, as well as to repay outstanding Revolving Loan commitments. The fundraising target specified under Section E.03 was defined accordingly and therefore exceeds the amount of the outstanding portions of the revolving loan
Part E - Information about offer to public of other tokens or their admission to trading
E.1 Public offering or admission to trading	enumeration	Admission to trading
E.2 Reasons for public offer or admission to trading	textBlock	The admission of the Token to trading is intended to further promote broad market access for potential Network users and thereby support ongoing engagement and use of the Network.
E.3 Fundraising target
Target expressed in currency	monetary		EUR
Target expressed in units	decimal
Target expressed in digital token identifier	text	Not applicable. See E.02.
E.4 Minimum subscription goals
Goals expressed in currency	monetary		EUR
Goals expressed in units	decimal
Goals expressed in digital token identifier	text	Not applicable. See E.02.
E.5 Maximum subscription goals
Goasl expressed in currency	monetary		EUR
Goals expressed in units	decimal
Goals expressed in digital token identifier	text	Not applicable. See E.02.
E.6 Oversubscription acceptance	boolean
E.7 Oversubscription allocation	text	Not applicable. See E.02.
Issue price details
E.8 Issue price	decimal
E.9 Official currency determining issue price	enumeration
E.9 Any other tokens determining issue price	text	Not applicable. See E.02.
E.10 Subscription fee
Fee expressed in currency	monetary		EUR
Fee expressed in units	decimal
Fee expressed in digital token identifier	text	Not applicable. See E.02.
E.11 Offer price determination method	text	Not applicable. See E.02.
E.12 Total number of offered or traded other tokens	integer	2342000000
E.13 Targeted holders	enumeration	All types of investors
E.14 Holder restrictions	text	The Network is permissionless and decentralized by design. There are thus no restrictions at chain-level. The Trading Platforms in accordance with applicable laws, including applicable international sanctions, and internal policies may impose restrictions to buyers and sellers of Tokens. Any check performed to implement such restrictions, notably KYC checks, are not conducted by the Company.
E.15 Reimbursement notice	boolean true
E.16 Refund mechanism	textBlock	Not applicable. See E.02.
E.17 Refund timeline	text	Not applicable. See E.02.
E.18 Offer phases	textBlock	Not applicable. See E.02.
E.19 Early purchase discount	textBlock	Not applicable. See E.02.
E.20 Time-limited offer	boolean
E.21 Subscription period beginning	date	2026-03-19
E.22 Subscription period end	date
E.23 Safeguarding arrangements for offered funds or other tokens	textBlock	Not applicable. See E.02.
E.24 Payment methods for other token purchase	textBlock	The method of payment to buy and sell the Token on the Trading Platforms are determined and set by the Trading Platforms and are not controlled, influenced, or governed by the Company.
E.25 Value transfer methods for reimbursement	textBlock	Not applicable. See E.02.
E.26 Right of withdrawal	textBlock	Not applicable. See E.02.
E.27 Transfer of purchased other tokens	textBlock	The Tokens acquired as a result of trades shall be transferred to the compatible wallet or technical device as designated by the selected Trading Platforms. The Company bears no responsibility for any transfers of the Token between market participants on the Trading Platforms
E.28 Transfer time schedule	text	The transfer of the Tokens acquired as a result of trades conducted on the Trading Platforms may or may not occur immediately, depending on the functioning of the selected Trading Platform. The Company has no control over the timing of such transfers.
E.29 Purchaser's technical requirements	textBlock	Token holder must comply with the technical requirements specific to the Trading Platforms on which the Token is respectively offered and admitted to trading, which may include the following: ▪ A device (computer or mobile) to manage digital wallet/private key and/or account on exchange to carry out transactions. ▪ A compatible digital wallet or account on the Trading Platform; and ▪ Internet access.
Other token services provider characteristics
E.30 Other token service provider (CASP) name	text	Not applicable. Unknow at the time of the notification.
E.31 CASP identifier	LEI
E.32 Placement form	enumeration	With a firm commitment basis
Trading platforms characteristics
E.33 Trading platforms name	text	Admission to trading is being sought on Trading Platforms operating within the EU/EEA. As of the date of notification of the present White Paper, no listing agreement has been concluded; therefore, no specific Trading Platform can be identified at this stage. The most current list of available Trading Platforms will be at all times available on the website of the Company
E.34 Trading platforms market identifier code (MIC)	text	Not available at the time of the notification.
E.35 Trading platforms access	text	Trading Platforms are accessible via their respective desktop and/or mobile based interfaces.
E.36 Involved costs	textBlock	The use of services offered by Trading Platforms may involve costs, including transaction fees, withdrawal fees, and other charges, as notified to users in advance. These costs are determined and set by the respective Trading Platforms and are not controlled, influenced, or governed by the Company. Consequently, any changes to initially announced fee structures or the introduction of new costs for the future are solely at the discretion of the Trading Platforms.
E.37 Offer expenses	textBlock	Not applicable. See E.02.
E.38 Conflicts of interest	textBlock	The Company is not aware of any potential conflict of interest among its management body members or any other person within the Company with respect to the admission to trading of the Token.
E.39 Applicable law	textBlock	Any dispute arising out of or in connection with the present White Paper, the Company, the Katana Technology and the admission to trading shall be governed exclusively by the laws of British Virgin Islands, without regard to conflict of law rules or principles, except to the extent that such disputes are governed by applicable law pursuant to the terms and conditions of the Trading Platform.
E.40 Competent court	textBlock	Any dispute arising out of or in connection with the present White Paper, the Company, the Katana Technology and the admission to trading shall be exclusively resolved by arbitration. The arbitral proceedings shall be conducted in accordance with the Arbitration Act (as amended) of the British Virgin Islands The number of arbitrators shall be one. The seat of the arbitration shall be the British Virgin Islands. The arbitral proceedings shall be conducted in English. Any action that may not be submitted to arbitration under applicable law will be tried by a court of competent jurisdiction located in the British Virgin Islands, and the Parties submit to the jurisdiction of the British Virgin Islands for this limited purpose
Part F - Information about other tokens
F.1 Crypto-asset type	text	Other Crypto Asset other than e-money and asset-referenced tokens
F.2 Other token functionality	textBlock	▪ The Token can be staked based on a ve(3,3)-style model applied at Network level ("Staking Functionality"): -"ve" stands for "voting escrow" tokens. When a user locks their KAT Tokens for a period, they receive ve-tokens. -(3,3) refers to a specific strategic interaction used in game theory and tokenomics, as associated with the behavior of 3rd-party participants in a network and how they benefit from participation in staking. It refers to a cooperative. -"applied at Network level" indicates that all parts of the Network (users, providers, operators, application creators, etc.) will benefit from cooperating in a way that promotes the Network's overall growth. ▪ The Staking Functionality ultimately grants access to voting on defined matters related to the Network Purpose ("Voting Scope"). Votes are cast by using the vKAT, generated through staking of KAT. vKAT holders can vote to influence how Treasury funds may be used to support the Network's liquidity. This should not be understood as a standard governance feature, as it does not provide participants with authority over governance decisions concerning the Network itself, such as its future technical developments or adjustments to economic parameters other than those of the Voting Scope. ▪ The Staking Functionality as described in this White Paper may be subject to change over time
F.3 Planned application of functionalities	textBlock	The Staking Functionality described under Section F.2 will be available upon Token issuance, and Token holders will thus be able to generate voting escrow tokens immediately. Staking will be available via the Network's native UI (app.katana.network), Sushi (app.sushi.com), along with other frontends, wallets, and exchanges that enable users to stake or delegate.
A description of the characteristics of the other token, including the data necessary for classification of the crypto-asset white paper in the register referred to in Article 109 of Regulation (EU) 2023/1114, as specified in accordance with paragraph 8 of that Article
F.4 Type of crypto-asset white paper	enumeration	Other crypto-asset token white paper
F.5 Type of submission	enumeration	New
F.6 Other token characteristics	textBlock	▪ Issued on the Network based on a ERC-20 compatible standard. ▪ Fixed supply of 10 billion units. ▪ Token issued exclusively to access the Staking Functionality (see Section F.2). ▪ Token is provided "as is". ▪ Token does not carry any legally enforceable rights or entitlements against the issuer (see Section G.1).
F.7 Commercial name or trading name	text	See F.13
F.8 Website of the issuer	text	https://katana.network
F.9 Starting date of offer to the public or admission to trading	date	2026-03-19
F.10 Publication date	date	2025-12-29
F.11 Any other services provided by the issuer	textBlock	Not applicable.
F.12 Language or languages of white paper	text	English.
F.13 Digital token identifier code used to uniquely identify the crypto-asset or each of the several crypto assets to which the white paper relates, where available	text	XD0DSZSKQ
F.14 Functionally fungible group digital token identifier, where available	text	G6H79P9ML
F.15 Voluntary data flag	boolean	false
F.16 Personal data flag	boolean	true
F.17 LEI eligibility	boolean	true
F.18 Home member state	enumeration	Ireland
F.19 Host member states #1	enumerationSet	Austria
F.19 Host member states #2	enumerationSet	Belgium
F.19 Host member states #3	enumerationSet	Bulgaria
F.19 Host member states #4	enumerationSet	Croatia
F.19 Host member states #5	enumerationSet	Cyprus
F.19 Host member states #6	enumerationSet	Czechia
F.19 Host member states #7	enumerationSet	Denmark
F.19 Host member states #8	enumerationSet	Estonia
F.19 Host member states #9	enumerationSet	Finland
F.19 Host member states #10	enumerationSet	France
F.19 Host member states #11	enumerationSet	Germany
F.19 Host member states #12	enumerationSet	Greece
F.19 Host member states #13	enumerationSet	Hungary
F.19 Host member states #14	enumerationSet	Iceland
F.19 Host member states #15	enumerationSet	Italy
F.19 Host member states #16	enumerationSet	Latvia
F.19 Host member states #17	enumerationSet	Liechtenstein
F.19 Host member states #18	enumerationSet	Lithuania
F.19 Host member states #19	enumerationSet	Luxembourg
F.19 Host member states #20	enumerationSet	Malta
F.19 Host member states #21	enumerationSet	Netherlands
F.19 Host member states #22	enumerationSet	Norway
F.19 Host member states #23	enumerationSet	Poland
F.19 Host member states #24	enumerationSet	Portugal
F.19 Host member states #25	enumerationSet	Romania
F.19 Host member states #26	enumerationSet	Slovakia
F.19 Host member states #27	enumerationSet	Slovenia
F.19 Host member states #28	enumerationSet	Spain
F.19 Host member states #29	enumerationSet	Sweden
Part G - Information on rights and obligations attached to other tokens
G.1 Purchaser rights and obligations	textBlock	The Tokens do not carry any legally enforceable rights or entitlements against the issuer Instead, Tokens enable their holders to interact with the Network. The Network operates autonomously without the Company having an operative role of any sort. The Company, to the fullest extent permitted by applicable laws, disclaims all warranties, whether express or implied, in relation to the Token and its functionality, as well as the Network. This includes, but is not limited to, implied warranties of merchantability and fitness for a particular purpose
G.2 Exercise of rights and obligations	textBlock	Not applicable, see answer under G.1
G.3 Conditions for modifications of rights and obligations	textBlock	Not applicable, see answer under G.1
G.4 Future public offers	textBlock	The Company does not plan to proceed with any additional public offers of the Token as of the date of publication of this White Paper
G.5 Issuer retained other token	integer	4935000000
G.6 Utility token classification	boolean	false
G.7 Key features of goods or services utility tokens	text	Not applicable. See answer provided under Section G.6.
G.8 Utility tokens redemption	text	Not applicable. See answer provided under Section G.6.
G.9 Non-trading request	boolean	true
G.10 Other tokens purchase or sale modalities	text	Not applicable. See answer provided under Section G.9.
G.11 Other tokens transfer restrictions	text	See field E.14 above.
G.12 Supply adjustment protocols	boolean	false
G.13 Supply adjustment mechanisms	text	Not applicable. See answer provided under Section G.12.
Other token schemes details
G.14 Token value protection schemes	boolean	false
G.15 Token value protection schemes description	textBlock	Not applicable. See answer under Section G.14.
G.16 Compensation schemes	boolean	false
G.17 Compensation schemes description	textBlock	Not applicable. See answer under Section G.16.
G.18 Applicable law	textBlock	Any dispute arising out of or in connection with the present White Paper and/or the Token shall be governed exclusively by the laws of British Virgin Islands, without regard to conflict of law rules or principles, except to the extent that such disputes are governed by applicable law pursuant to the terms and conditions of the respective Trading Platform on which the Token has been offered or admitted for trading.
G.19 Competent court	textBlock	Any dispute arising out of or in connection with the present White Paper, the Company, the Katana Technology and the admission to trading shall be exclusively resolved by arbitration. The arbitral proceedings shall be conducted in accordance with the Arbitration Act (as amended) of the British Virgin Islands The number of arbitrators shall be one. The seat of the arbitration shall be the British Virgin Islands. The arbitral proceedings shall be conducted in English. Any action that may not be submitted to arbitration under applicable law will be tried by a court of competent jurisdiction located in the British Virgin Islands, and the Parties submit to the jurisdiction of the British Virgin Islands for this limited purpose.
Part H – Information on underlying technology
H.1 Distributed ledger technology (DTL)	text	General Information on Distributed Ledger Technology and Blockchain Distributed Ledger Technology ("DLT") describes a decentralized and distributed Network system architecture where multiple participants maintain and verify a shared database. Unlike traditional databases, DLT systems do not rely on a central authority to ensure data consistency and security. Rather, they distribute control across a Network of computers (nodes) and require all changes to be recorded and agreed by the nodes. This distributed approach enhances the resilience and security of such a system, and transparency of the data stored in it without the need for trust between the actors of the systems. Blockchain technology is a subset of DLT, where the distributed database maintains a continuously growing list of records, called blocks, which are linked together in chronological order and secured using cryptographic techniques. A blockchain generally has the following key characteristics: ▪ Security: A blockchain employs advanced cryptographic methods to secure data. Each block contains a cryptographic hash (a "digital fingerprint") of the previous block, a timestamp, and transaction data. ▪ Consensus: Blockchains rely on a predefined consensus mechanism establishing how new blocks, and the transactions included therein, are approved by nodes. ▪ Immutability: once data is recorded in a block, it cannot be deleted nor altered retroactively without also changing all subsequent blocks, which would require consensus from most of the nodes. ▪ Transparency: Transactions on a blockchain are usually visible to all, thereby providing transparency. Private blockchains, without or with limited transparency, however, do also exist. ▪ Accessibility: Blockchains are usually permissionless, thus accessible to all, whether to act as a node or to submit transactions to be recorded thereon. Permissioned blockchains, with limited accessibility for nodes and/or users, however, do also exist. About Ethereum The Token is issued on the Ethereum permissionless public blockchain. Ethereum aims to provide a decentralized, secure, and scalable Company for financial services, digital identity, supply chains, and other real-world use cases. Ethereum benefits from widespread adoption and has constant on-chain activity. Launched in 2015, Ethereum introduced a Turing-complete virtual machine, enabling developers to create and execute programmable contracts without intermediaries, commonly referred to as smart contracts. Ethereum has undergone significant upgrades, including its transition to Ethereum 2.0 via the Merge, which replaced its original Proof-of-Work (PoW) consensus mechanism with Proof-of-Stake (PoS) to improve energy efficiency and scalability (more details on consensus under Section H.04). Its code has been audited several times. Ethereum's native cryptocurrency, Ether (ETH), serves as the primary medium of exchange within the network. It is used to pay for transaction fees (gas), incentivize validators, and participate in governance and staking. Ethereum operates with a layered architecture that separates different functions for modularity and scalability: ▪ Execution Layer (Ethereum Virtual Machine - EVM): The EVM is the computational layer that processes smart contract execution and dApp interactions. It enables Turing-complete programming, allowing developers to write and deploy complex applications using languages like Solidity and Vyper ▪ Consensus Layer (Beacon Chain): The Beacon Chain handles validator coordination, staking, and the consensus mechanism implementation. It ensures security and finality for transactions processed by the Execution Layer. ▪ (Optional) Data Availability & Scalability Solutions (Rollups & Sharding): Rollups (Optimistic & ZK-Rollups) can be used to offload computation from the main Ethereum chain while retaining security; Sharding (Future Upgrade) is planned to be implemented to divide network operations across multiple smaller chains (shards) to enhance scalability. For more details, visit Ethereum's official documentation and repositories: ▪ Ethereum Company: https://ethereum.org ▪ Ethereum Developer Resources: https://ethereum.org/en/developers/ ▪ Ethereum GitHub Repositories: https://github.com/ethereum About the Network The Token is issued and will be foremostly transacted on the Network, a permissionless Layer 2 blockchain built on Ethereum, and offering lower transaction costs and high throughput. Considering the foregoing, under sections H.02 to H.05, explanations focus on Ethereum. The Network's transaction currency is Ether (ETH), which is used to pay gas fees.
H.2 Protocols and technical standards	text	The Token relies on the following protocols: ▪ Ethereum Protocol: because the Network is a layer 2, it relies on the Ethereum for security and is intrinsically dependent on the functioning of its protocol. ▪ Network Protocol: The Token lives on the Network and its existence well as usage through transactions is thus governed by Network rules, including the ERC-20 compatible standard used for its issuance. ▪ Other smart contracts: The Token is used by Embedded Applications and Deployed Applications and its usage in such context is thus also governed by the relevant smart contracts constituting such applications. ▪ Other technology provided by third party providers, and providing, amongst other, wallets, bridges, oracles and alike. ▪ Partner integrations with the Network rely on APIs.
H.3 Technology used	textBlock	Transfer: The issuance smart contracts, as based on the ERC-20 compatible standard on the Network, define the technical rules governing the transfer of Tokens. No additional technology is required to proceed with the transfer of Tokens, as the process occurs on the Network in accordance with its standard operation. Tokens can be bridged to other chains, such as Ethereum, via third party bridges. Holding and Storing: No additional technology is required to hold Tokens, as they remain on the Network in accordance with its standard operation; however, users may choose to utilize additional technologies such as specific wallets, incl. multi-signature wallets, cold storage solutions, or other storage and security products and services.
H.4 Consensus mechanism	text	Ethereum ▪ The consensus mechanism of Ethereum is a PoS (proof-of-stake) system known as the Beacon Chain, which coordinates the network by selecting validators who propose and validate new blocks. Validators are chosen based on the amount of ETH they have staked, rather than computational power, significantly reducing Ethereum's energy consumption by over 99% compared to PoW. ▪ Ethereum has over 1 million validators as of date of writing. ▪ Key features of Ethereum's PoS system: ▪ Validators and Staking: Participants must stake at least 32 ETH to become a validator, securing the network while earning staking rewards. Smaller ETH holders can participate via staking pools. ▪ Epochs and Slots: Ethereum's PoS mechanism divides time into epochs and slots, ensuring an orderly block validation process. ▪ Slashing Mechanism: Validators who engage in dishonest behavior risk losing a portion of their staked ETH as a penalty Network As a layer 2 network on Ethereum, the Network does not operate an independent consensus mechanism comparable to a Layer 1 blockchain. Instead, it derives its security and transaction finality from the Ethereum network's native proof-of-stake consensus. Layers 2 maintain a simplified sequencer or validator set responsible solely for ordering transactions within the Layer 2 environment.
H.5 Incentive mechanisms and applicable fees	text	Ethereum transactions, such as the transfer of Tokens, require gas fees, which compensate validators for processing transactions and executing smart contracts. The EIP-1559 upgrade introduced a base fee model to improve fee predictability and burn a portion of transaction fees, reducing ETH inflation. As a result, the key fee components are the following: ▪ Base Fee: Minimum amount burned per transaction, adjusting dynamically based on network demand. As a result, ETH has periodically become deflationary when network activity is high, as more ETH is burned than issued, reducing overall supply. ▪ Priority Fee (Tip): Optional fee paid to incentivize faster transaction processing. ▪ Max Fee: Maximum gas price a user is willing to pay, ensuring cost control. Trading Platforms may besides charge service fees in accordance with their own policies
H.6 Use of distributed ledger technology	boolean	false
H.7 DLT functionality description	textBlock	Not applicable. The Company, nor any affiliated entity, does not operate the DLT. See H.06
Other token audit details
H.8 Audit	boolean	true
H.9 Audit outcome	textBlock	The Company is committed to ensuring the secure development of its smart contracts. To achieve this, the Network's core smart contracts have undergone security audits. These audits can be found here: https://katana.network/blog/wake-up-samurai-katana-is-here Security Code Audit & Formal Verifications on the Token smart contracts have been performed by Certora and available here. Following best practices, the Company makes all smart contract code publicly available. This transparency allows independent security researchers to assess the code for potential vulnerabilities. Disclaimer: While audits strengthen security, they do not guarantee the absence of all vulnerabilities. Undetected issues or new exploits could still arise, and investors should consider these risks. See also Part I and the information about the risks.
Part I - Information on risks
I.1 Offer-related risks	textBlock	▪ No Listing Risk: The present white paper is drafted and notified by the Company in accordance with its obligations under Article 5 of MiCAR, in its capacity as a person seeking the admission of the Token to trading. As of the date of notification, the Company has not entered into any listing agreement with any Trading Platforms. The Company its affiliates, directors, and officers shall not be held liable for any damages, losses, costs, fines, penalties, or expenses of any kind - whether or not reasonably foreseeable by the Company or the Token holder - that the Token holder may suffer, sustain, or incur in connection with, or as a result of, the Token not being listed on a Trading Platform. ▪ General Contractual and Counterparty Risk: The Company neither operates nor controls, oversees, or manages the functioning of crypto-asset services providers as defined under MiCAR ("CASP") operating within the EU /EEA and Trading Platforms where the Token will be admitted for trading or listed. When Token holders buy or sell the Token on Trading Platforms, the Company is not a contractual party to these transactions. As a result, - any legal relationship between Token holders and the Exchange is governed solely by the terms and conditions set by each Exchange at its discretion. - The Company assumes no responsibility or liability for the operations, services, security, performance, or any outcomes—whether financial or technical—arising from transactions conducted on these Trading Platforms. - The Company provides no assurances regarding any Exchange itself and assumes no responsibility or liability for any regulatory, compliance, operational, financial, technical, or reputational failures that may adversely affect its activities. This includes, but is not limited to, circumstances where such failures result in disruptions, restrictions on trading, or the Exchange halting or ceasing its operations entirely, due to sanctions, bankruptcy or alike. The foregoing may result in substantial or even total losses for the Token holder. ▪ Pausing and Delisting Risk: The Company cannot guarantee that the Token will remain listed or tradeable on any Trading Platforms. Delisting (or the temporary pausing of such listing) could significantly hinder the ability of Token holders to buy, sell, or otherwise transact in Tokens. In the event of delisting, Token holders may face challenges in finding alternative markets or counterparties willing to trade Tokens, which could adversely impact the Token's liquidity and market value. Delisting could also negatively impact the price of the Token, due to modified demand for the Token and/or reputational impact. ▪ Trading Risk: The Company does not control the secondary markets. There can be no assurance as to the secondary market (if any) in the Tokens, and specifically: - it cannot guarantee the depth, stability, or sustainability of any secondary market for Tokens. Limited market depth or trading activity may result in reduced liquidity, increased price volatility, and challenges in buying or selling Tokens at desired prices; and -it cannot guarantee the healthy and consistent availability of buying or selling opportunities for Tokens or the integrity of their market price. Trading activity may be affected by manipulative practices such as wash trading, front-running, and similar schemes. While Trading Platforms are subject to varying regulatory frameworks that may or may not prohibit such practices and impose oversight to detect and deter them, the Company assumes no responsibility or liability for their effective prevention or enforcement. ▪ Unsolicited Admission to Trading Risk: Third parties can elect to support Tokens on their Trading Platforms without any request nor authorization or approval by the Company or anyone else. Token listing, or any further integration, by any third-party does not imply any endorsement by the Company that such third-party services are valid, legal, stable or otherwise appropriate. ▪ Operational and Technical Risk: Trading Platforms operate interfaces that allow users to trade crypto-assets for fiat currencies, such as U.S. Dollars and Euros, or other crypto-assets. The reliance on the Exchange's internal system for asset storage and transfer adds an additional layer of counterparty risk, as users are exposed to potential operational, technical, or human errors during these processes. As a result, the Company assumes no responsibility or liability for any losses arising from these risks. -Trades on these Trading Platforms are executed based on a centralized matching algorithm and are often recorded off-chain, meaning they are not directly related to transparent on-chain transfers of crypto-assets, and could dissimulate detrimental trade matching or rogue practices. The traded assets are recorded solely on the Exchange's internal ledger, with each internal ledger entry corresponding to an offsetting trade involving either government currency or another crypto asset. - Additionally, funds deposited by users for trading may be co-mingled by the Trading Platforms, rather than stored in unique wallet addresses for each user. This practice results in the centralization of a large volume of assets in a single location, which in turn increases the potential risk of damage or theft, particularly in the event of a hack or security breach. -Furthermore, users who wish to trade or withdraw their Tokens must deposit them into the Exchange, increasing the risk of loss in the event of a failure of the deposit or withdrawal processes set up by the Exchange. ▪ Unanticipated Risks: In addition to the risks outlined in this Section, unforeseen risks may arise. Additionally, new risks could emerge such as unexpected variations or combinations of the risks discussed in these Sections I.1 to I.5.
I.2 Issuer-related risks	textBlock	▪ Abandonment / Lack of Success Risk: This is the risk that the activities of the Company and Issuer must be partially or totally abandoned for several reasons including, but not limited to, lack of interest from the public, lack of funding, incapacitation of key developers and project members, force majeure (including pandemics and wars) or lack of commercial success or prospects. ▪ Legal and Regulatory Compliance Risk: Crypto assets and blockchain-based technologies are subject to evolving regulatory landscapes worldwide. Regulations vary across jurisdictions and may be subject to significant changes. This could lead to changes with respect to trading of the Token and increase the Company and Issuer's costs and/or obligations in admitting the Token for trading. Changes in laws or regulations may negatively impact the value, legality, or functionality of the Token. Non-compliance can result in investigations, enforcement actions, penalties, fines, sanctions, or the prohibition of the trading of the Token impacting its viability and market acceptance. The Company and Issuer could also be subject to private litigation. ▪ Reputational Risk: The Company and Issuer face the risk of negative publicity, whether due, without limitation, to operational failures, security breaches, or illicit activities, all of which can damage the Company/Issuer's reputation and, by extension, the value and acceptance of the Token. ▪ Key Individuals Risk: The success of crypto projects can be highly dependent on the expertise and leadership of key individuals. Loss or changes in the Company and Issuer's leadership could lead to disruptions, loss of trust, or project failure. ▪ Internal Control Risk: Any failure by the Company and Issuer to develop or maintain effective internal controls or any difficulties encountered in the implementation of such controls, or their improvement could harm it, causing the issuer to have to report such failures. Such failures could lead to a loss of trust and further harm the business of the Company and Issuer, causing disruptions, financial losses, or reputational damage affecting the Token. Fraudulent activity or mismanagement by the Company and Issuer could directly impact the usability or value of the Token or damage the credibility of the Platform, Network and the Project at broad. ▪ Unanticipated Risks: In addition to the risks outlined in this Section, unforeseen risks may arise. Additionally, new risks could emerge as unexpected variations or combinations of the risks discussed in these Sections I.1 to I.5.
I.3 Other tokens-related risks	textBlock	▪ Token Admission to Trading "As Is" Risk: The Tokens are admitted to trading on an "as is" and "as available" basis without warranties of any kind, and the Company and Issuer expressly disclaim all implied warranties that the Token, the software code of the programs, are free of viruses or other harmful components which may affect the Tokens. ▪ Market Risk: Crypto assets, including Tokens, are highly volatile and can experience significant price swings in short periods, increasing the risk of sudden and substantial losses. Such valuation risk arises as the market value of a crypto asset may not always reflect its underlying utility or fundamentals and is subject to subjective assessment. Token holders are thus exposed to potential for losses due to the Token's -potential fluctuations in value, driven by various factors such as supply and demand dynamics, investor sentiment, and broader market trends, incl. changes in interest rates, general movements in local and international markets, technological advancements, regulatory changes, and media coverage. Notably, momentum pricing of crypto assets has previously resulted, and may continue to result, in speculation regarding future appreciation or depreciation in the value of such assets, further contributing to volatility and potentially inflating prices at any given time. -liquidity risk, where a lack of depth in secondary markets – if any – or limited trading volumes can hinder the ability to execute trades at favorable prices, which could lead to significant losses, especially in fast-moving market conditions. As a result, holders of Tokens may experience challenges in managing their holdings, with the value of the asset subject to unpredictable fluctuations and potential depreciation. -solvency and collateral risk, if the Token is used to finance further activities, especially in leveraged positions or as collateral for loans. Significant fluctuations in the value of the Token could adversely affect the solvency of its holder, particularly if the Token is pledged as collateral. A drastic decline in its value may trigger margin calls or automatic liquidations, which could further depress the Token's price, creating a negative feedback loop. This volatility poses the risk of forced asset sales, potentially resulting in substantial losses for the holder and amplifying downward pressure on the market price of Tokens. ▪ Custodial Risk. The method chosen to store Tokens, like any crypto-asset, carries inherent risks related to the security and management of the storage solution. The chosen storage method, whether hot or cold wallets, or centralized custody, can significantly impact the safety, liquidity, and accessibility of Tokens, with direct consequences for the holder's ability to access, trade, or retain their assets. ▪ Scam Risk. This is the risk of loss resulting from a scam or fraud suffered by Token holders from other malicious actors. These scams include, but are not limited to, phishing on social networks or by email, fake giveaways, identity theft, creation of fake Tokens, offering fake Token airdrops, among others. ▪ Anti-Money Laundering/Counter-Terrorism Financing Risk: This is the risk that crypto-asset wallets holding Token or transactions in Token may be used for money laundering or terrorist financing purposes or identified to a person known to have committed such offenses. There is thus a risk that a public address holding Tokens could be flagged in relation to Anti-Money Laundering or Counter-Terrorism Financing efforts. In such cases, receiving Tokens could result in the holder's address being flagged by relevant authorities, Trading Platforms, or other service providers, which may lead to restrictions on transactions or the freezing of assets. Consequently, holders of Tokens may face legal or regulatory challenges if their address becomes associated with illicit activities, impacting their ability to freely access, trade, or transfer their Tokens. ▪ Taxation Risk: The taxation regime that applies to the trading of Tokens by either individual holders or legal entities will depend on each Token holder's jurisdiction. The Company cannot guarantee that the holding of Tokens, the reception of the Token, conversions of fiat currency against Tokens, or conversions of other crypto assets against Tokens, will not incur tax consequences. It is the Token holder's sole responsibility to comply with all applicable tax laws, including, but not limited to, the reporting and payment of income tax, wealth tax or similar taxes arising in connection with the appreciation and depreciation of the Token. ▪ Market Abuse Risk: The market for crypto assets is rapidly evolving, spanning local, national, and international networks with an expanding range of assets and participants. Any market abuse, along with a potential loss of confidence among holders, could adversely impact the value and stability of Tokens, and by extension the trading conditions on the Trading Platforms. Notably, - significant trading activity may take place on systems and networks with limited oversight and predictability. Sudden and rapid changes in the supply or demand of a crypto asset, particularly those with low market capitalization or low unit prices, can result in extreme price volatility. - the inherent characteristics of crypto assets and their underlying infrastructure may be exploited by certain market participants to engage in abusive trading practices such as front-running, spoofing, pump-and-dump schemes, and fraud across different networks, systems, or jurisdictions. ▪ Legal and Regulatory Risk: There is a lack of regulatory harmonization and cohesion globally, which results in diverging regulatory frameworks and possible further regulatory evolutions in the future. These could negatively impact the value, utility, and overall viability of Tokens and, in extreme cases, force the Company to cease operations. Notably, - while Tokens do not create or confer any contractual or other obligations against any party, certain non-EU regulators may nevertheless classify them as securities, financial instruments, or payment instruments under their respective legal frameworks. Such classifications could impose specific regulatory constraints, leading to significant changes in how Tokens are structured, issued, purchased, or traded. - Evolving regulations could substantially increase the Company's compliance costs and operational burdens related to facilitating transactions in Tokens. - New or restrictive regulations could result in the Token losing functionality, depreciating in value, or even becoming illegal or impossible to use, buy, or sell in certain jurisdictions. - Regulators could take enforcement action against the Company if they determine that the Token constitutes a regulated instrument or that the Company's activities violate existing laws. Such actions could expose the Company, its affiliates, directors, and officers to legal and financial penalties, including civil and criminal liability. ▪ Unanticipated Risks: In addition to the risks outlined in this Section, unforeseen risks may arise. Additionally, new risks could emerge as unexpected variations or combinations of the risks discussed in these Sections I.1 to I.5.
I.4 Project implementation-related risks	textBlock	▪ Network "As Is" Risk: The Network and any future components were deployed on an "as is" and "as available" basis without warranties of any kind, and the Company expressly disclaims all implied warranties as to the Network and the Token including, without limitation, implied warranties of merchantability, fitness for a particular purpose, title and non- infringement. Therefore, the Company cannot and does not warrant that the Token, the programs, or the technology underlying the Tokens and Network (jointly, "Katana Technology") are reliable, current or error-free, free of viruses or other harmful components, meet the Token's requirements, or that defects in the Katana Technology will be corrected. Additionally, there is a risk that Network functionalities may be abandoned, that no new functionalities may be added. ▪ Decentralized Governance and Network Change Risk: The Network is subject to decentralized, on-chain decision-making. This could result in material changes to the Network's goals, priorities, or operating methods. While such evolution can promote innovation and strengthen adaptability, it also presents certain risks, such as alterations in the value proposition and possible divergence from stakeholders' previous expectations. ▪ Novel Ecosystem Risk: The Token holder understands and acknowledges that the Katana ecosystem, as evolving around the Network, is built on emerging and rapidly evolving technologies, which inherently carry significant risks. The underlying software, blockchain infrastructure, smart contracts, and related technologies are still in their early stages of development, meaning there is no guarantee that the process of receiving, using, or holding Tokens will be uninterrupted or error-free. As with any novel technology stack, there is an inherent risk that the underlying blockchain, smart contracts, or associated components may contain weaknesses, vulnerabilities, or bugs, despite audits being conducted. Such issues could lead to unintended behaviors, security breaches, or critical failures, potentially resulting in the partial or complete loss of Tokens or their functionality. Additionally, unforeseen technical limitations, incompatibilities, or the emergence of superior alternatives could further impact the stability, security, and long-term viability of the Katana ecosystem. ▪ Industry and Competition Risk: The project is and will be subject to all the risks and uncertainties associated with any new venture, visionary projects, including the risk that the project cannot be realized in line with its original purpose or vision about the Network. Other projects may have the same or a similar vision as the project. There are several other crypto-assets and projects, and new competitors may enter the market at any time. The effect of new or additional competition on the Token or its market price cannot be predicted or quantified. Competitors may have significantly greater financial and legal resources than the project and there is no guarantee that the project will be able to compete successfully, or at all, with such competitors. Moreover, increased competition may severely impact on the profitability and creditworthiness of the project and involved entities. ▪ Dependency/Withdrawing Partners Risk: The Katana Technology itself relies on third-party technologies, infrastructures, and protocols, which could impact its functionality, security, and long-term sustainability. Such is specifically the case of Embedded Applications. Loss or changes in the key partners providing such technologies can lead to disruptions, loss of trust, or project failure. Any disruptions, vulnerabilities, regulatory scrutiny, or changes in operation of third-party technologies (such as modifications to its mechanisms, governance, or economic incentives) could directly affect the usability and security of the Katana Technology, which may result in a negative effect for the Tokens. If the third-party technologies experience technical failures, security breaches, or regulatory intervention, it could severely impact the stability and performance of the Katana Technology, potentially limiting its intended functionality and value. This reliance on external infrastructure increases systemic risk, as unforeseen issues in third-party protocols could cascade into disruptions within the Token ecosystem. ▪ Withdrawing Partners Risk: This is the risk that the Company faces in its business relationships with one or more third parties. The implementation of the project depends strongly on the collaboration and functioning of services provided by several third parties and other crucial partners. The Company thus cannot guarantee that the project and related Katana Technology will be successfully developed further. ▪ Unanticipated Risks: In addition to the risks outlined in this Section, unforeseen risks may arise. Additionally, new risks could emerge as unexpected variations or combinations of the risks discussed in these Sections I.1 to I.5
I.5 Technology-related risks	textBlock	The Company and its affiliate, directors and officers shall not be responsible or liable for any damages, losses, costs, fines, penalties or expenses of whatever nature, whether reasonably foreseeable by them and the Token holder, and which the Token holder, may suffer, sustain, or incur, arising out of or relating to the technical risks outlined below or a combination thereof. ▪ General Cybercrime Risk: The Token holder acknowledges that, despite best efforts to enhance security, the technological components supporting the Token, including its blockchain infrastructure, smart contracts, wallets, may be vulnerable to cyberattacks. Malicious actors may exploit software vulnerabilities, attack consensus mechanisms, or compromise private keys to gain unauthorized access to Tokens. Risks include hacking attempts on the Protocol, smart contract exploits, phishing attacks, malware infections, and other forms of cybercrime that could result in the theft, loss, or unauthorized transfer of Tokens. Since digital assets exist entirely in a technological environment, they are inherently exposed to evolving cyber threats, some of which may be undetectable or irreparable until after significant damage has occurred. ▪ Blockchain-Level Risk: The Token holder understands and accepts that, as with other blockchains, the blockchain used for the issuance of the Tokens could be susceptible to consensus-related attacks, including but not limited to double-spend attacks, majority validation power attacks, censorship attacks, and byzantine behavior in the consensus algorithm or be subject to forks. Any successful attack or fork presents a risk to the Token, the expected proper execution and sequencing of Token -transactions and the expected proper execution and sequencing of contract computations as well as the Token balances in the wallet of the Token holders. ▪ Smart Contract-Level Risk: The issuance and transfers of Tokens rely on smart contracts deployed on a blockchain network, which introduce specific technical and security risks. - Smart contracts are self-executing, meaning any vulnerabilities, coding errors, or unforeseen logic flaws in the issuance contract could result in unintended consequences, such as the incorrect distribution of Tokens, loss of funds, or permanent locking of Tokens. Additionally, smart contracts are exposed to potential exploits, including hacking attempts, reentrancy attacks, and other forms of malicious activity that could compromise the security of the issuance process. - Once deployed, the smart contract governing the issuance of Tokens cannot be easily altered or corrected, meaning any discovered vulnerabilities may be difficult or impossible to fix without significant coordination, community approval, or even a network fork. Furthermore, changes to the underlying blockchain protocol—such as updates to consensus mechanisms, transaction processing rules, or gas fee structures—could affect the functionality or cost-efficiency of the issuance smart contract. These risks could lead to disruptions in Token issuance, security breaches, or a loss of confidence in the Katana ecosystem, potentially impacting the Token's value and usability. ▪ Application-Level Risk: It cannot be excluded that any technical failure, malfunction, or vulnerability within an application interacting with Tokens could directly or indirectly impact the value of the Token. - An application could be subject to critical exploits, such as reentrancy attacks, logic errors, or oracle manipulation, which could lead to unintended Token transfers, assets being drained from the system, or Tokens being irretrievably lost. Fixing such issues may require significant coordination, governance approval, or even disruptive measures such as protocol migrations or forks, none of which are guaranteed to be successful. - Because the Token's value is inherently tied to its functionality, any security breach could have cascading effects, including depreciation of the Token's value, reduced market confidence, and potential loss of funds for Token holders. ▪ Finality or Irrevocability of Transactions: There is a risk that transactions may be irreversible, depending on the tools and service providers used to initiate them. Access to and any claim on such transactions could be lost indefinitely or permanently. For example, this could occur if (i) a blockchain address is entered incorrectly and the true owner is never identified, (ii) the private key associated with the address is lost, (iii) the address belongs to an entity that will not return the crypto asset, or (iv) the address belongs to an entity that may return the asset but requires additional actions, such as identity verification. ▪ Unanticipated Risks: In addition to the risks outlined in this Section, unforeseen risks may arise. Additionally, new risks could emerge as unexpected variations or combinations of the risks discussed in these Sections I.1 to I.5.
I.6 Mitigation measures	textBlock	Various measures to mitigate the risks outlined in Sections I.01 to I.05 above have been implemented. These include rigorous technology testing and auditing, and the careful selection of personnel, management, and third-party partners. However, many of these risks are inherent to the activities with crypto assets and the broader ecosystem, making complete elimination impossible. To further reduce exposure to these risks, prospective Token holders should adopt appropriate safeguards based on their chosen custody method and remain vigilant by actively monitoring publicly available news and market signals, enabling them to respond swiftly to significant developments which may result in the materialization of specific risks.
Part J - Information on the sustainability indicators in relation to adverse impact on the climate and other environment-related adverse impacts
J.1 Adverse impacts on climate and other environment-related adverse impacts	textBlock	The Company provides information on principal adverse impacts of Token on the climate and other environment-related adverse impacts of the consensus mechanism of the following: Based on an annual forecast of over 1 million transactions and acknowledging that these estimates are forward-looking and may prove inaccurate, the total yearly energy consumption of the Token on the Network is estimated to be less than 500,000 kWh. In any scenario, it is not expected to exceed this threshold
Mandatory information on principal adverse impacts on the climate and other environment-related adverse impacts of the consensus mechanism
General information about adverse impacts
S.1 Name	text	Katana Token DeployCo (BVI) Ltd.
S.2 Relevant legal entity identifier	text	See A.07.
S.3 Name of the crypto-asset	text	KAT
S.4 Consensus mechanism	text	Byzantine-Fault Tolerant (BFT)
S.5 Incentive mechanisms and applicable fees	text	Byzantine-Fault-Tolerant (BFT) consensus mechanisms, such as Proof of Authority (PoA), Practical Byzantine Fault Tolerance (PBFT), Byzantine Agreement (BA) or similar mechanisms, secure the network through a predefined set of validators who are trusted to validate transactions and add blocks to the ledger. Unlike open networks where anyone can participate (as in Proof-of-Work or Proof-of-Stake), BFT and similar mechanisms operate with known and vetted participants, often selected by a governing entity. Validators are incentivized to maintain the network's integrity through monetary rewards or external motivations, such as institutional trust or regulatory obligations. Malicious actions, such as submitting invalid transactions or failing to participate in consensus, can result in penalties, removal from the validator set, or other repercussions, creating an economic and reputational deterrent to dishonest behavior. Validators reach consensus by verifying transactions and proposing blocks, and, as long as a majority of validators act honestly, the network remains secure.
S.6 Beginning of period to which disclosed information relates	date	2026-08-11
S.7 End of period to which disclosed information relates	date	2026-08-24
Mandatory key indicator
S.8 Energy consumption	energy (kWh)	284085.7987
Sources and methodologies
S.9 Energy consumption sources and methodologies	textBlock	Data provided by CCRI; all indicators are based on a set of assumptions and thus represent estimates; methodology description and overview of input data, external datasets and underlying assumptions available at: carbon-ratings.com/dl/whitepaper-mica-methods-2024 and docs.mica.api.carbon-ratings.com. We do not account for any offsetting of energy consumption or other market-based mechanism as of today
Supplementary information on principal adverse impacts on climate and other environment-related adverse impacts of consensus mechanism
Supplementary key indicators
S.10 Renewable energy consumption	percent
S.11 Energy intensity	energy (kWh)
S.12 Scope 1 DLT GHG emissions - controlled	GHG emissions (tCO2e)
S.13 Scope 2 DLT GHG emissions - purchased	GHG emissions (tCO2e)
S.14 GHG intensity	GHG emissions (tCO2e)
Sources and methodologies
S.15 Key energy sources and methodologies	textBlock
S.16 Key GHG sources and methodologies	textBlock
Optional information on principal adverse impacts on the climate and on other environment-related adverse impacts of the consensus mechanism
Optional indicators
S. 17 Energy mix	percent
S.18 Energy use reduction
Energy use reduction target (absolute value)	energy (kWh)
Energy use reduction target (percentage)	percent
S.19 Carbon intensity (kgCO2e/kWh)	decimal
S.20 Scope 3 DLT GHG emissions - value chain	GHG emissions (tCO2e)
S.21 GHG emissions reduction targets or commitments	textBlock
S.22 Generation of waste electrical and electronic equipment (WEEE)	mass (tonnes)
S.23 Non-recycled WEEE ratio	percent
S.24 Generation of hazardous waste	mass (tonnes)
S.25 Generation of waste (all types)	mass (tonnes)
S.26 Non-recycled waste ratio (all types)	percent
S.27 Waste intensity (all types)	mass (tonnes)
S.28 Waste reduction targets or commitments (all types)	textBlock
S.29 Impact of use of equipment on natural resources	textBlock
S.30 Natural resources use reduction targets or commitments	textBlock
S.31 Water use	volume (m3)
S.32 Non recycled water ratio	percent
Sources and methodologies
S.33 Other energy sources and methodologies	textBlock
S.34 Other GHG sources and methodologies	textBlock
S.35 Waste sources and methodologies	textBlock
S.36 Natural resources sources and methodologies	textBlock