How an Abra SMA Vault works

What the Vault is

Abra Capital Management, LP ("ACM") facilitates the custody solution and provides investment-management services with respect to assets in the account. ACM is not the custodian. Assets are maintained for the client under the applicable account and custody structure, and custody arrangements vary by asset and strategy. The keys that control the Vault are secured using Fireblocks MPC technology, which Abra implemented. Learn how Fireblocks MPC protects keys.

There is no minimum to open a Vault.

Abra Capital Management, LP (“ACM”) provides investment advisory services through separately managed accounts, which may involve client-directed or discretionary activities. Digital assets are maintained under applicable custody arrangements, which may include third-party custodians incorporating Fireblocks security technology. ACM is not a qualified custodian. Withdrawals, transfers, and deployed assets are subject to applicable agreements and restrictions. Digital assets are not insured bank deposits and involve risks, including potential loss of principal.

Funding and withdrawing

You can fund a Vault in USD or crypto from a bank account or an external wallet. You may request withdrawal to a bank account or a wallet you control, subject to applicable account terms, security controls and processing requirements. After withdrawal, the assets are outside the Vault custody arrangement and you assume responsibility for that wallet.

Trading: assets leave the Vault only while a trade executes

Supported assets in a Vault can be used for spot trading. ACM may direct purchases and sales of Digital Assets in implementing a client's investment strategy. Execution is effected through applicable trading venues, counterparties, and service providers. A spot trade works like this:

• The asset being sold leaves the Vault and is sent to the applicable trading venue or counterparty.
• The order executes, and the asset sold is exchanged for the asset bought, for example USDC for BTC.
• The asset bought settles back to the Vault.

During execution and settlement, assets may be held at a trading venue or by another applicable service provider.

To the extent this communication references trade execution, digital asset markets are subject to rapid price movement, and any price, spread, or quote referenced herein is indicative only and is not a representation of the price at which any order may execute. The price at which an order executes may differ from any price referenced or displayed, and neither execution nor settlement is assured as to timing or outcome. No order fill, execution outcome, or pricing outcome referenced or implied in this communication is assured, and no such outcome is indicative of future results. No assurances are given.

Yield strategies: assets leave the Vault while allocated

ACM advises on and allocates client assets to strategies expressly authorized by the client, consistent with the applicable advisory agreement and strategy terms. For example, BTC allocated to the BTC Yield Strategy leaves the Vault. Strategies represented by a token issued by AbraFi are made available to eligible Abra Capital Management clients, subject to client authorization of advisory terms. BTCaf holders have only the rights described in ACM's Form ADV. Assets deployed to an authorized strategy leave the Vault custody environment and become subject to the applicable venue, protocol or counterparty arrangements. Where assets are maintained through an omnibus arrangement, the account or wallet is maintained for the benefit of the underlying clients ("FBO"). Custody arrangements vary by asset and strategy and are described in applicable client documentation.

On redemption, any assets or proceeds available for return are delivered under the applicable strategy terms and liquidity provisions; principal and yield are not guaranteed. Outcomes vary based on market and protocol conditions. The BTC Yield Strategy is for accredited investors and institutions. The Yield page describes the strategy in more detail.

To the extent this communication references Abra's Yield product, any rewards are variable and are not assured. The rate, amount, and continuation of any rewards may change or cease at any time, and any outcomes depend on market, protocol, and network conditions and are not indicative of future results. These strategies involve a high degree of risk, including the risk of loss, and including protocol, slashing, validator, and smart-contract risk. These strategies may be subject to unbonding, unstaking, or other lock-up periods, and redemptions may be delayed or unavailable. No assurances are given as to any result. These strategies are not bank deposits and are not insured by any government agency.

Borrowing: collateral leaves the Vault while a loan is open

Eligible clients may have access to digital-asset-backed financing, subject to confirmation of supported collateral and applicable terms. Financing available through the Abra platform is provided through the applicable lender or financing arrangement identified in the product documentation. ACM's role, if any, is identified separately. A loan works like this:

• The collateral leaves the Vault and becomes subject to the applicable lending protocol or counterparty arrangements while the loan is open.
• USDC is borrowed against it under the applicable loan terms.
• The borrowed USDC is sent to the Vault.

When the loan is repaid under the applicable loan terms, the remaining collateral is released back to the Vault. Collateral may be liquidated, in whole or in part, under the loan terms. Borrowing introduces interest, collateral, liquidation and counterparty risks and should not be characterized as inherently preferable to selling or unwinding a position.

To the extent this communication references Abra's Loans product, borrowing collateralized by digital-asset collateral involves a high degree of risk, including the risk of loss, and is not suitable for everyone. The value of digital-asset collateral can be highly volatile and may decline rapidly. A decline in collateral value, or a breach of an applicable collateralization threshold, may result in a margin call and in the liquidation of collateral, in whole or in part, to satisfy the obligation. Liquidation may occur rapidly, may result in the loss of some or all of the collateral, and may not fully cover amounts owed. Borrowing costs are variable, and the all-in cost of a loan may change. Applicable loan terms, loan-to-value ratios, margin-call procedures, and liquidation mechanics are governed by the applicable loan agreement, and any specific loan figures referenced in this communication are illustrative only and subject to the agreed terms. The borrower bears the risk of loss of collateral. No assurances are given as to the cost, availability, or outcome of any loan.

When activity ends

After settlement, redemption or repayment, any available assets or proceeds are handled under the applicable account, strategy or financing terms. Assets in the Vault can then be held, used again or withdrawn on request.

Fees

ACM charges an advisory fee on AUM, not a custody fee. Any custody fee or other third-party cost, if applicable, is disclosed separately. [Confirm the current BTC Yield fee schedule and any other applicable charges before publication.]