Transaction Insurance Summary

Last updated: May 6, 2026

Basefund (the “Platform”) offers optional warranty-backed transaction insurance (“Transaction Insurance”) to Participants under a master insurance policy procured by Basefund (the “Policy”) for U.S. dollar money transfers (“Money Transfer”) facilitated through Secure Transactions, subject to applicable coverage limitations. In general, Transaction Insurance will provide coverage for Money Transfer failures, up to selected limits, that are attributable to an actual or alleged act, error, omission, neglect or breach of duty by Basefund in relation to the Customer’s authorized use of the Platform that is in compliance with the Master Subscription Agreement.

Qualifying for Coverage

To qualify for Transaction Insurance coverage, all of the following must be true:

• Authenticated access by the Platform for the sending and receiving parties;
• Identity verification of the recipient by the Platform;
• Account validation using the Platform’s verification tools; and
• Selection of Transaction Insurance coverage level and agreement to pay applicable premium, unmodified from the time of selection and without declaration by a Participant of an unwillingness or inability to make such premium payment, prior to commencement of Money Transfer execution.

Transactions that do not meet these criteria are not eligible for coverage. As an example, a “Recipient” must be the individual or organization designated to receive funds in the transaction, and the identity verification of the Recipient by the Platform must be either (i) an individual directly employed by that organization, or (ii) an individual with direct authority over the receiving account. Direct authority includes, by way of example, an authorized user on the account, a person holding a valid power of attorney, or a third-party administrator with formal access rights. Any transaction where the designated recipient does not meet these conditions will not qualify for coverage.

Deductible (Retention) by Coverage Level

The Participant who suffers the covered loss is responsible for payment of the applicable deductible, which must be paid before any remaining coverage amount will be disbursed. For approved claims, the following deductible will be subtracted from any payout:

Coverage Limit	Deductible
Up to $50,000	5%
$50,001 – $100,000	$10,000
$100,001 – $1,000,000	$25,000
$1,000,001 – $2,000,000	$50,000
$2,000,001 – $2,500,000	$100,000
$2,500,001 – $3,000,000	$150,000
$3,000,001 – $4,000,000	$150,000
$4,000,001 – $5,000,000	$200,000
$5,000,001 – $7,500,000	$300,000
$7,500,001 – $15,000,000	$500,000

Notification Requirements

For transactions under $50,000: notice must be given within 30 days of becoming aware (or reasonably should have become aware) of the issue.

For transactions $50,000 or more: notice must be given within 48 hours of becoming aware (or reasonably should have become aware) of the issue.

Coverage may be voided if this condition is not met unless:

• Delay was due to extraordinary circumstances, and
• Notice was given as soon as reasonably practicable.

Exclusions — What’s Not Covered

Coverage does not apply to losses caused by:

• Infrastructure failures — power, internet, or telecom outages not under Basefund’s control.
• Natural disasters — events like fire, flood, earthquake, or other natural perils.
• War & cyber warfare — conflicts or state-backed cyberattacks linked to war or national disruption.
• Illegal acts — any intentional violation of law by Basefund.
• Fraud or misconduct — criminal, malicious, or fraudulent acts by Basefund or its employees.
• Ignored instructions — willful failure to follow lawful customer instructions.
• Fund mismanagement — co-mingling of funds or unauthorized fund handling.
• Insolvency — Basefund’s bankruptcy or financial collapse.
• International transfers — any wire transfer that begins or ends outside the U.S.
• Fee disputes — disagreements over platform fees or service charges.
• Prior claims — incidents previously accepted under another insurer’s policy.
• Unsecured systems — failure to encrypt or protect systems, unless tied to a covered platform breach.
• System malfunctions — hardware or software failures, unless caused by a covered breach.

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