DISCLAIMER

The information provided in this document represents the current understanding and
position of Realm based on information available at the time of writing. This document is
provided for informational purposes only and does not constitute legal, financial, or
investment advice.

All statements within are subject to the following conditions:

1.​ No representations or warranties, express or implied, are made regarding the

accuracy, completeness, or reliability of any information contained herein.
2.​ The answers provided do not constitute an admission of liability or wrongdoing by
Realm, its founders, employees, or affiliates.
3.​ This document does not modify, amend, or supersede any existing contractual
relationships or legal obligations.
4.​ Nothing in this document should be construed as an offer, solicitation, or
recommendation to buy or sell any securities or tokens.
5.​ References to past events, projections, or future plans are based on Realm's
understanding and are subject to change based on market conditions, legal
proceedings, and other factors outside Realm's control.
6.​ Realm reserves all rights and legal protections available under applicable laws
and regulations.
7.​ The liquidation process will proceed according to relevant legal requirements and
under the direction of appointed liquidators, whose determinations will supersede
any information provided herein.

Realm has provided these answers in good faith as part of its commitment to
transparency during this difficult process. Token holders and other interested parties
should consult with their own professional advisors regarding their individual
circumstances.

QUESTIONS AND ANSWERS

1. Why did Realm get into and sign this contract, and how was it to benefit realm?

It's an investment contract that has the benefit of providing the company with capital.
Unfortunately this contract also came with downsides.
2. What was the circumstances when this contract was signed, and what made
you think you would be able to fulfil the liability you owe them at that time? Did
Realm have capital or have plans to gain capital to honour this liability?

As stated, the contract is an investment contract. The company signed this contract
when Realm’s FDV and volume was high. These types of investment contracts contain
terms that are dependent on market factors: volume, price performance and a minimum
amount of capital provided. They're quite difficult to predict. Had for instance the gaming
and whole alt market picked up quicker and volumes been substantially higher then we
would not have expected to incur a liability.

Furthermore due to the size of this contract and the amount that $REALM has dropped
in price it becomes impossible for the company to fulfill its minimum drawdown as
$REALM’s total FDV is less than the minimum drawdown.

3. When did negotiations start with this entity that owns this liability?

The company initially extended the length of the contract to give more time to fulfill the
minimum drawdown as it believed the market would pick up. The market has been awful
and gaming in particular has not seen any positive action. The majority of games that
raised up to 10-100x what Realm raised shutdown years ago. The ones that are still
operating from our cycle have similar charts to Realm.

The company saw the market was not picking up, and therefore there were 2 possible
solutions:

1) Realm could grow its community, then that would have a positive effect on volumes
and price should increase given the liquidity was thin. Realm needed a decent
marketing budget as it already had a lot of unreleased content from HOVR, to AI
characters.

2) Restructure the deal, eliminate the failure fee and provide the counter party with more
upside in the event that things go well.

Realm attempted both of these strategies and neither worked.

4. Is there a legal order already made against realm in a court or is this under
process still?
Realm has had formal written notice of Event of Default - of which evidence has been
provided.

5. How long before Liquidators wind down everything? Or has this process
already started or not started?

No idea on the length of time the process will take as the company has never gone
through this before. AI says 6-12 months for a straightforward liquidation.

6. How long for this process to finish in whole in your opinion?

Same answer as question 5, no idea, assume 6-12 months.

7. Is there no way this entity who would be taking over assets can take over
operations?

The counterparty is primarily a finance company, not a technology and gaming

company. They wouldn’t know where to begin with Realm. It’s also important to
remember that the entity Realm has the liability with is not necessarily the entity that
would get the software as the liquidator just auctions it and then disburses the proceeds
pro rata (after their fees).

8. Can you provide the liability order for us to see, you can retract any sensitive
information due to legal reasons, but which would prove that you have received a
liability order.

Redacted version provided.

9. From what you know could there be a chance realm could be sold to another
entity through liquidators, or otherwise, where operations could resume again?

As previously stated it is the companies understanding that any assets are auctioned
off. Once the liquidator informs Realm how, where and when the assets will be
liquidated, the company commits to share these details with the community.

General questions:
10. Why did you deliberately delay content and make so many false promises?
The company acted and communicated with the knowledge available to it based on
business realities at any given time, with no deliberate delays or false information
provided. Circumstances are subject to change.

11. What happened to the HOVR race game that was announced?

Some players play-tested it but the whole game is there to be released.

12. Why did you promise features like HOVRing inside realms, quantpods,
realmies, and land—yet none of these have been delivered?

A lot of product features were waiting to be released. All product features go through
multiple steps from prototyping, testing, through to beta release and even then, as you
know bugs often make their way into the beta release, that need to be fixed to get to a
stable release.

The entire way through Realm the company has always built in public and released over
100 Devlogs to keep the public informed on what Realm is working on. At times certain
features that have been shared in devlogs get deprioritised as the time it takes to get a
stable working version is so high and other issues take priority.

Again I will remind everyone that Realm raised around $3m in May 2021 and built
infinitely more than most other games. Android & iOS apps, Custom Godot game
engine, full server infra, marketplace, hybrid on chain-off chain staking and rewards
systems, builder tools with instant publishing, many games, worlds and quests.

13. What about the multiple staking options that were supposed to be
introduced?

Not sure what this is relating to, Realm released a hybrid onchain - offchain staking
rewards system.

14. Where is the marketing that was said to be "imminent"?

When we communicated about upcoming marketing initiatives, a significant investor had

agreed to fund marketing activities for free, through an established agency. This
investor had initially covered substantial marketing invoices for Realm. However, due to
extreme market turbulence affecting the investor's broader portfolio, especially in the
altcoin sector, this funding arrangement could not continue as originally planned. Our
statements about marketing were made in good faith based on arrangements that were
in place at that time.

15. What happened to the promised CEX listings?

Realm’s experience with CEX’s has not been good and the costs to onboard to new
CEX’s are often prohibitively high in USDT and $REALM. Currently 200-500k.

16. Why was there a KuCoin advertisement shown in Metropolis if there was no
actual partnership?

A game developer put a logo in a video of a demo world back in 2021 or early 2022, it
did not imply that Realm partnered with Kucoin and the team asked them to swiftly
remove it. Realm would also say, please do not buy tokens based on seeing a logo.

17. Why did Larby barely show up in the chat—except when the coin price was
going up—to hype it even more with false promises like hitting $7?

Matthew spent a huge amount of time in the chat and on AMAs, as the team shrank in
size he had to be more hands on, and spend less time chatting in a group.

18. Why didn’t you bother to update the website to reflect the actual number of
people working on the project? By the end, it was just Larby, Joban, and
Milan—so why did you keep the community believing there was still a big team
behind it?

The Realm team size fluctuated throughout the project lifecycle based on development
requirements and financial constraints. We scaled the team up during intensive
development periods and reduced headcount as certain milestones were completed.
While we acknowledge the website should have been updated more frequently to reflect
current team composition, the focus remained on product development rather than
website maintenance during periods of limited resources. This was not intended to
mislead the community about the project's status.

19. Why did you remove all the liquidity before the announcement ?

The company removed liquidity that it had provided to the pool, to cover necessary
business expenses, including the costs of professional liquidation services. Had we not
secured these funds before the announcement, the resulting token sell-off would likely
have depleted available liquidity, leaving insufficient funds to conduct a proper
liquidation process. This would have created a more disorderly shutdown with
potentially worse outcomes for all stakeholders.

20. you remained active and doing AMAs until you finished dumping 73% of the
circulation in a few months, when you were left with less than 2% , you left realm
to die, why?"

The company has reviewed transaction data and believes the figures cited are
inaccurate. Realm tokens have been almost 100% circulating for a significant time, in
accordance with the vesting schedules clearly outlined at Token Generation Event.
Company-controlled wallets only conducted sales as necessary to cover operational
expenses, which is a standard and legitimate practice for project sustainability. These
transactions occurred within normal operational parameters and in line with disclosed
tokenomics. The treasury holds over 5% of supply which will be at the discretion of the
liquidators.

21. We would like an explanation in the team wallets dumping on community

especially over the past couple of months. We have screenshots to share, AS
YOU ARE NOT ALLOWING IMAGES ON THE MAIN CHAT, YOU WILL BE ABLE TO
SEE THEM IN OUR ACTION AGAINST REALM GROUP CHAT, please look at
images before answering this question.

Previously answered this above

22. LDA Capital Funding: Public reports confirm Realm secured a $10M
investment commitment from LDA Capital in 2022, yet only ~$250K was received
due to restrictive clauses. Can you provide a detailed breakdown of all funds
raised, including the $2.25M–$3M seed round, and explain why the full LDA
amount wasn’t accessed?

Previously answered this above

23. Fund Allocation: How were the funds Realm received spent, including on
salaries, marketing, and development? Can you share a financial summary to
verify claims that founders went unpaid and personally covered tens of
thousands monthly?
The vast majority of the costs are staff and marketing.

Staff ranged from $4k a month to $10k a month, these are extremely low salaries for the
level of work being done and the calibre of developers. This enabled Realm to take a
blitzscaling approach to hiring quickly, building the product quickly and then scaling
back to managing the product. At the peak costs were around $200k per month on staff
and contractors alone.

Realm also spent a substantial amount on Marketing, you are often getting $100k
invoices from web3 agencies, who deliver quite disappointing results. We spent over
$500,000 on Marketing in year 1 and 2 alone.

Legal, setup costs, CEX’s, Code audits, tax and accounting costs are very high due to
the complexity of the market. Listing costs are in excess of $150k, for example.

Servers and operational costs also run to over 100k per annum. Smart contract audits
are extremely expensive - another six figures.

24. Financial Struggles: Why weren’t funding challenges disclosed during

2022–2023 AMAs when you promoted partnerships and growth, leading holders
to believe Realm was financially stable?

Funding challenges were not an apparent issue as the company had a large investment
facility and kept Realm running until the beginning of Q2 2025.

25. Investor Exits: Did LDA Capital or other investors pressure Realm to close or
exit their positions? If so, when, and how did this impact operations?

No.

26. Audit Commitment: Will you commit to a third-party audit of Realm’s finances
to address allegations of mismanagement or fraud? If not, why?

Realm’s team has already committed large sums of unpaid time to the project and need
to focus on providing what is required to the liquidator to do what is legally required.
27. Liability Nature: What is the exact nature of the seven-figure liability, who is
the counterparty, and how was it intended to benefit Realm when signed?

As explained earlier in this document, the company entered into an investment contract.
The specific counterparty and complete terms remain subject to confidentiality
obligations, but the redacted contract provided shows the nature and extent of the
liability. While we understand the desire for additional details, we are limited in what we
can disclose beyond what has been provided.

28. Liability Circumstances: When was the liability contract signed, what made
you believe Realm could fulfill it, and when did negotiations to restructure it
begin?

Already covered in one of the questions above.

29. Legal Status: Is there a court order enforcing the liability, or is it still under
negotiation? If no order exists, why claim it forced closure now?

The first part of the question is already covered in one of the questions above. As for
the second part of the question, at the point where the party informed Realm that they
wanted the liability to remain, the company knew that it could not cover it and drafted a
statement for release.

30. Liquidation Timeline: Has the liquidation process started? If so, how long will
it take, and what assets (e.g., code, tokens) will be auctioned?

The first part of the question is already covered in one of the questions above.

31. Asset Transfer: Could the entity acquiring assets take over operations, or is
there a way for the community to assume the liability in exchange for control?

As previously mentioned, the assets get auctioned off, the proceeds paid towards the
liability and the purchaser of the assets does what they want with them, this could be
put them in a company, DAO etc.

32. NDA Specificity: Which operations are covered by NDAs preventing

transparency, and can you share redacted contracts to verify why you stayed
silent during financial distress?
Almost every contract that a company signs contains a confidentiality clause, limiting
viewership to company employees and lawyers from both sides. The company cannot
share the contract.

33. Liquidity Removal: Did Realm remove liquidity from Uniswap or PancakeSwap
before or during the closure announcement? If so, when and why, and can you
confirm the pools’ current status?

The company removed liquidity to cover necessary business expenses, including the
costs of professional liquidation services. Had we not secured these funds before the
announcement, the resulting token sell-off would likely have depleted available liquidity,
leaving insufficient funds to conduct a proper liquidation process. This would have
created a more disorderly shutdown with potentially worse outcomes for all
stakeholders.

34. Insider Dumping: Community evidence suggests team wallets dumped 73% of
REALM’s circulating supply over months, leaving 2%. Can you provide wallet
addresses and transaction hashes to prove no insiders sold tokens before the
announcement?

These numbers appear inaccurate. The Realm token has been almost 100% circulating
for a significant time and this is in line with the vesting schedules outlined at TGE. Any
sales by the company to cover operational expenses were legitimate. The treasury still
holds over 5% of supply.

35. Sell-Off Impact: Why was no warning issued about potential price volatility
when you knew about the liability, allowing a sell-off to devastate holders?

The company was actively working to restructure the liability and had reasonable
expectations that a resolution could be reached. The company is prohibited from
making public statements about these ongoing negotiations, as doing so could have
violated confidentiality provisions. Only when we received final written confirmation that
the counterparty was unwilling to restructure the liability did we determine that closure
was unavoidable. At that point, we prepared and released our statement. During this
negotiation period, the company deliberately suspended all public communications to
avoid any statements that could later be considered misleading. We understand this
silence was frustrating, but it was necessary given the circumstances.

36. Token Treasury: What remains in Realm’s token treasury, and why hasn’t a
compensation plan been proposed for holders who lost heavily?
There are still in excess of 50M tokens in the treasury, and the company will not be
selling them. These are for the liquidator to decide what to do with.

37. Undelivered Features: Why did you promise features like HOVR racing,
Realmies, Quantpods, land, and multiple staking options that were never
delivered? What specific obstacles prevented these from being realized?

As explained in our response to question 3, Realm developed many features that were
in various stages of the development pipeline. We prioritized features based on
technical feasibility, resource constraints, and market conditions. The HOVR racing
game, for example, was developed to playtest stage but not fully deployed. Several
announced features required substantial development resources that became
increasingly constrained as market conditions deteriorated. Throughout this process, we
maintained transparency through our Devlogs, but the challenging market environment
ultimately prevented us from completing all planned features before the company faced
its current financial situation.

38. Marketing Failures: Where is the “imminent” marketing you promised? Why
was a KuCoin ad shown in promotional materials without follow-through on
partnerships?

Already covered in one of the questions above.

39. Community Compensation Plan: Are there plans to compensate token holders
for their losses? If not, what alternative measures are being considered for
community recovery?

While we understand the impact this situation has had on token holders, there is no
compensation plan available at this time. The company's assets will be handled through
the liquidation process as previously described. As noted in our documentation at
launch, utility tokens carry inherent risk, particularly for early-stage ventures operating in
volatile markets. The liquidation proceedings will determine the disposition of remaining
assets according to legal requirements and obligations. We have outlined the potential
for community participation in asset acquisition through the liquidation auction in our
answers to previous questions.

40. Transparency Measures: Will you release detailed documentation on Realm’s

financials and operations history to rebuild trust with token holders?
The company has provided the information contained in this document and the redacted
contract to offer clarity on the situation. Moving forward, additional documentation will
be limited to what is legally required during the liquidation process. This approach is
necessary to ensure compliance with contractual confidentiality obligations and to allow
the liquidator to perform their duties according to regulatory requirements. We
understand the desire for more information, but must balance transparency with our
legal obligations during this process. The liquidator may choose to release additional
information as part of their standard procedures.

41. Future Pathways: Is there any possibility of restructuring Realm’s operations

or creating a community-led initiative to salvage its vision?

The company has described what it sees as the process going forward and how that
could be used for the community to buy Realm and take it forward. While we cannot
structure this ourselves given our current position, the liquidation auction process
provides a potential pathway for community members to organize and acquire the
assets should they wish to continue the project.