Security & risk.

Housd invests exclusively in asset-backed private credit.

Our investment philosophy is based on five principles:

1. 1Preserve investor capital.
2. 2Invest only in secured lending.
3. 3Diversify across borrowers and properties.
4. 4Maintain complete portfolio transparency.
5. 5Continuously monitor portfolio performance.

Every investment decision is made with long-term capital preservation as the primary objective.

All loans included within Housd vaults are originated by approved lending partners that follow institutional underwriting standards.

Each loan undergoes comprehensive evaluation before funding, including:

• Borrower experience
• Property valuation
• Loan-to-Value (LTV)
• After Repair Value (ARV)
• Construction budget
• Exit strategy
• Title review
• Market analysis
• Legal documentation

Only loans that satisfy the originator's underwriting criteria are eligible for inclusion within Housd portfolios.

Portfolio diversification reduces concentration risk.

Housd diversifies capital across multiple dimensions, including:

• Borrowers
• Properties
• Geographic regions
• Loan maturities
• Property types
• Originators

No single loan is intended to represent a disproportionate share of a diversified vault.

Every loan financed through Housd is secured by a first-position mortgage over the underlying residential property.

A first-lien lender has the highest legal claim against the collateral if a borrower defaults.

This provides investors with a strong level of collateral protection and priority over junior creditors.

Although defaults are expected to remain infrequent, every loan is originated with a defined recovery process.

If a borrower defaults:

1. 1The loan enters workout procedures.
2. 2The originator enforces its first-lien security.
3. 3The property is recovered through legal proceedings where necessary.
4. 4The collateral is sold or refinanced.
5. 5Recovery proceeds are returned to the vault.

All default events and recoveries are reported through Housd's Loan Management System.

Each Housd vault operates through a dedicated legal structure designed to separate investor assets from operating entities.

Capital is deployed into underlying loan portfolios through legally documented lending arrangements with approved originators.

This structure is intended to provide clear ownership of the underlying assets while supporting institutional investment standards.

Investor assets are intended to remain legally segregated from the operating activities of Housd.

Each investment vehicle is structured so that the underlying loan assets are isolated from the corporate obligations of Housd and its service providers.

This structure is designed to reduce counterparty risk and enhance investor protection in the event of insolvency.

Digital assets remain under secure custody throughout the investment lifecycle.

Stablecoin deposits, vault accounting, and investor balances are managed through audited smart contracts.

Underlying loan documentation, servicing records, and legal agreements are maintained by the relevant counterparties in accordance with applicable regulatory and operational requirements.

Security reviews are conducted across both the smart contract infrastructure and operational processes supporting the protocol.

Independent smart contract audits will be published prior to production deployment.

Operational controls, internal procedures, and portfolio reporting are regularly reviewed to maintain institutional standards of governance and risk management.

Where available, Housd may utilize insurance products to mitigate specific operational and infrastructure risks.

Coverage may include:

• Smart contract protection
• Custody-related risks
• Cybersecurity
• Directors and Officers (D&O) liability
• Errors and Omissions (E&O)

Insurance does not eliminate investment risk and does not guarantee repayment of principal.

Investing in private credit involves risk.

Potential risks include, but are not limited to:

• Borrower default
• Property market fluctuations
• Interest rate changes
• Liquidity constraints
• Operational risk
• Smart contract risk
• Regulatory changes
• Counterparty risk

Prospective investors should carefully review all offering documents and conduct their own independent due diligence before investing.

Housd combines institutional underwriting, first-lien collateral, portfolio diversification, transparent reporting, and active risk management to provide investors with access to one of the most established sectors of U.S. private credit.

Our objective is not to eliminate risk. Our objective is to ensure every risk is understood, monitored, and transparently communicated throughout the life of every investment.