Terms & Risk Factors

1. Asset Peg and Backing

Each Tellura Copper Token (“COPR”) represents ownership of one pound of physical copper held in custody and fully backed 1:1 by verified reserves. The reserves correspond to copper warrants stored in accredited warehouses, subject to regular audit and reconciliation.

The token’s market value may fluctuate based on secondary market liquidity, demand, and external exchange rates, but the underlying reserve structure remains fixed at one token per pound of copper.

2. Smart Contract and Protocol Risks

Tellura relies on blockchain smart contracts for token issuance, redemption, and transfer. These contracts have been audited, but smart contracts carry inherent technical risk, including potential vulnerabilities, exploits, or bugs. Users interact with the protocol at their own risk and must understand that on-chain transactions are irreversible.

3. Liquidity Risk

While each token is backed 1:1, market liquidity may vary. During periods of low demand or limited liquidity in pools or exchanges, users may experience price slippage or delays in conversions or redemptions.

4. Custody and Operational Risk

Copper reserves are stored with third-party custodians and warehouse operators under industry standards. Despite insurance and verification mechanisms, there remains counterparty and operational risk tied to warehousing, logistics, and settlement systems.

5. Jurisdiction and Regulatory Compliance

Tellura is not available in jurisdictions subject to OFAC sanctions or any region where digital asset trading is restricted. Participation implies full understanding and acceptance of these requirements.

6. No Financial Advice

Tellura does not provide financial or investment advice. The COPR token is a digital representation of ownership in physical copper and should not be interpreted as an investment product or security. Users must conduct their own due diligence before interacting with the protocol.

7. User Acknowledgment & Acceptance

By accessing or using the Tellura protocol, users acknowledge that they:

• Understand and accept all risks associated with digital assets and blockchain transactions.

• Have reviewed the Terms & Risk Factors in full and agree that Tellura and its affiliates are not liable for any direct or indirect loss resulting from protocol use.

• Confirm compliance with all applicable laws, KYC/AML obligations, and jurisdictional restrictions.

• Accept that the COPR token is a commodity-backed digital representation, not a guarantee of profit or an investment contract.

Participation implies full acceptance of these terms and the risks described above.