GLOSSARY

Accredited Investor

An investor who satisfies the financial qualification standards established under applicable securities laws for participation in certain private investment offerings.

Account Page

The secure online investor dashboard through which investors may view holdings, account information, transaction history, statements, and fund-related communications.

AML (Anti-Money Laundering)

Policies, procedures, and controls designed to detect and prevent money laundering, terrorist financing, and other illicit financial activities.

Annualized Return

The equivalent yearly rate of return generated by an investment over a specified period.

Appraised Value

The estimated market value of a real estate asset determined by an independent professional appraisal.

Asset Allocation

The distribution of investment capital among various asset classes or investment strategies.

Beneficial Ownership

The ultimate ownership interest held by an investor regardless of legal title.

Blockchain

A distributed digital ledger that records transactions across a decentralized network of computers.

BitHouse

BitHouse, Inc., the parent company responsible for developing tokenized investment products and related technology infrastructure.

BITS Capital

The asset management division of BitHouse responsible for managing digital investment funds and investment strategies.

BITS Real Estate Fund

A tokenized investment fund focused on acquiring, owning, managing, and operating residential rental real estate assets.

BITS Magic Seven Digital Growth Fund

A digital asset investment fund designed to track the performance of the BITS-M7 Index for long-term capital appreciation.

BITS Magic Seven Digital Income Fund

A digital asset investment fund designed to generate income through staking, lending, yield strategies, and related digital asset activities.

BITS-M7 Index

The proprietary BitHouse digital asset index currently consisting of Bitcoin, Ethereum, Solana, Chainlink, Avalanche, BNB, and XRP, subject to future revisions.

Capital Appreciation

An increase in the value of an investment over time.

Capital Call

A request for additional capital contributions from investors.

Cap Rate (Capitalization Rate)

A real estate performance metric calculated by dividing Net Operating Income by Property Value.

Cash Flow

Income remaining after operating expenses have been deducted.

Custodian

A regulated financial institution responsible for safeguarding assets on behalf of investors.

Digital Asset

A cryptographically secured asset existing on a blockchain network.

Digital Wallet

Software or hardware used to hold, manage, and transfer digital assets.

Distribution

A payment made to investors from investment income, profits, or capital gains.

Diversification

The practice of spreading investments across multiple assets to reduce risk.

Embedded Wallet

A blockchain wallet automatically created within the BitHouse platform for investor convenience.

EOA (Externally Owned Account)

A traditional blockchain account controlled by a private key and capable of initiating transactions directly.

Fractional Ownership

Ownership of a percentage interest in an asset rather than ownership of the entire asset.

Fund Administrator

An independent party responsible for accounting, reporting, investor records, and operational support functions.

Gas Fee

A blockchain transaction fee paid to network validators for processing transactions.

Gasless Transaction

A transaction where network fees are paid by the platform rather than directly by the investor.

Holding Period

The length of time an investment is owned before redemption or sale.

Income Distribution

Periodic payments made to investors from investment income generated by a fund.

Investment Objective

The stated goal of an investment strategy or fund.

KYC (Know Your Customer)

The investor verification process used to confirm identity and satisfy regulatory requirements.

Liquidity

The ability to convert an investment into cash without significantly affecting its value.

Lock-Up Period

A period during which investors may be restricted from redeeming or transferring investments.

Management Fee

The fee charged for managing a fund's assets and operations.

NAV (Net Asset Value)

The total value of fund assets minus liabilities, divided by the number of outstanding units or tokens.

MPC (Multi-Party Computation)

An advanced security method used to protect digital asset private keys by distributing cryptographic control among multiple parties or devices.

Net Operating Income (NOI)

Property income after operating expenses but before financing costs and taxes.

Offering Memorandum

The legal disclosure document describing an investment opportunity, associated risks, and investor rights.

Private Placement

A securities offering conducted pursuant to an exemption from public registration requirements.

Property Management

The operation and administration of real estate assets, including leasing, maintenance, and tenant relations.

Redemption

The process by which an investor requests withdrawal of investment capital.

Reserve Account

Funds maintained to cover future expenses, vacancies, repairs, or unforeseen obligations.

Smart Account

A blockchain account enhanced with programmable features such as transaction automation, gas sponsorship, and advanced security controls.

Stablecoin

A digital asset designed to maintain a relatively stable value by reference to a fiat currency or other asset.

Subscription

The process of purchasing fund interests, shares, or tokens.

Token

A blockchain-based digital representation of ownership, economic rights, or participation in an investment vehicle.

Tokenization

The process of digitally representing ownership interests in real-world or financial assets on a blockchain.

Treasury Wallet

The primary wallet used by a fund for holding and managing assets.

USDC

A U.S. dollar-backed stablecoin issued by regulated financial institutions.

USDT

A U.S. dollar-referenced stablecoin commonly used for digital asset transactions.

Valuation

The process of determining the current value of an asset or investment.

Wallet Address

A unique blockchain identifier used to send and receive digital assets.

Yield

Income generated by an investment expressed as a percentage of invested capital.