Key risks and disclosures

Document ref

KRD-PRP-1003-202608

Version date

12 August 2026

Token approval

ARVA-26-9653

Holding vehicle

Royex SPV 1003 FZCO

This document sets out the principal risks of subscribing for fractions in JBR Beachfront 806. It is not exhaustive. A prospective holder who does not understand these risks should not subscribe.

Capital is at risk

The value of the property may fall. Fractions could be worth less than the AED 1,000.00 paid, and a holder may not recover the amount subscribed.

Income is not guaranteed

Distributions depend on the property being let and on rent being collected. The illustration assumes a vacancy allowance of 12%. A longer void, a tenant default, or a rent reduction on renewal would reduce or suspend distributions.

Costs reduce return

Service charges, management fees, platform fees and insurance are deducted before distribution. On current assumptions these total AED 45,219 annually, which is why net yield of 4.99% is materially below the gross figure of 8.31%. Service charges are set by the building owners association and may rise.

Liquidity is limited

The secondary market depends on another registry-verified holder wanting to buy. There is no market maker and no obligation on the platform, the vehicle or any other party to purchase fractions. A holder may be unable to exit when they wish, or may only do so at a discount.

Concentration

This offering is exposed to a single property in a single city. There is no diversification across assets, tenants, sectors or jurisdictions. Events affecting Jumeirah Beach Residence or the Dubai property market affect the whole holding.

Regulatory change

The framework governing tokenised real assets in the United Arab Emirates continues to develop. Changes in regulation, tax treatment or the terms of the token approval may affect the offering, the transferability of fractions or the returns available.

Structural and counterparty risk

Holders hold a beneficial interest through Royex SPV 1003 FZCO rather than registered legal title. Holders depend on the vehicle, its corporate services provider, the property manager and the platform performing their functions. Insolvency or failure of any of them may affect the holding.

Technology risk

The token record depends on software and cryptographic key management. Defects in a contract, loss or compromise of keys, or failure of a service provider could impair the record of a holding or delay a transfer, even where the underlying property is unaffected.

Valuation

Valuations are prepared periodically and are opinions rather than realisable prices. The price at which the property could actually be sold may be materially different.

Cost basis and tax treatment

Where fractions are acquired at different times and prices, disposals are matched against acquisition lots on a FIFO basis. First in, first out — disposals consume the earliest-acquired lots first. A different basis would produce a different realised gain on the same disposal. The basis applied by the platform may not correspond to the basis a holder's own tax authority requires, and holders are responsible for their own tax position.

Nothing in this document is investment, tax or legal advice. A prospective holder should take independent advice on whether this offering is suitable for them.

Document reference KRD-PRP-1003-202608, version dated 12 August 2026. Figures are drawn from the asset record maintained by the platform and are stated as at the version date. Illustrations assume rent growth of 3% and capital appreciation of 4% per annum; neither is a forecast nor a guarantee of return. Past performance is not a guide to future performance.

Demonstration document produced by a simulation environment. It is not an offer, not a prospectus, and carries no legal effect. No contract was deployed and no regulator was contacted.