The Opportunity

The project combines the stable residential real estate market of the Greater Austin metropolitan area with a digital ownership structure and management model. Through a fractional ownership model, investors acquire a proportional economic interest in the property without purchasing the entire asset, while the digital infrastructure supports record-keeping and interaction among all project participants

Asset Overview

OVERVIEW 5333 Ponte Tresa Drive is a two-story single-family residence located in the Terra Colinas Phase Two community in Bee Cave, Travis County, Texas (ZIP 78738), approximately 18 miles west of Downtown Austin in the Lake Travis area. The property is owned by Wyoming DAO LLC and operates as a long-term rental asset. Each token represents a proportional ownership interest in the LLC that owns the property. Built in 2017, the home features: - 4 bedrooms; - 3 bathrooms; - 2,942 square feet of living space; - an attached two-car garage. The property is situated on a lot governed by the Terra Colinas Homeowners Association (HOA). It is located within FEMA Flood Zone X, indicating that it is outside designated high-risk flood areas. INTERIOR & DESIGN The home features an open-concept layout with a spacious, naturally lit living area and an upgraded kitchen equipped with a walk-in pantry and additional storage. Additional living spaces include a game room and an adjoining media room. The backyard offers a raised garden and a patio with direct access from the house, overlooking a protected greenbelt. The property also includes various interior upgrades and additional built-in storage throughout the home. CURRENT OPERATING STATUS • The property is leased under a 12-month residential rental agreement. • The tenant is responsible for all utility payments. • The asset operates as a stabilized long-term rental property. • No capital improvement program is currently planned. • No renovation, redevelopment, change of use, or repositioning initiatives have been announced. VALUATION • As of July 19, 2024, the property's market value was appraised at USD 725,000. • The appraisal was prepared by Edward T. Aiken, a Texas Certified Residential Appraiser (License No. 1338211) with Access Appraisal Group. • For property tax purposes, the 2023 assessed value was USD 623,840, according to the Travis County Tax Office.

Investment Terms**

ELIGIBILITY • The minimum investment is USD 50, equivalent to one token. • The maximum investment by a single investor is limited to 15% of the total token issuance. • Participation requires successful completion of KYC/AML verification during the onboarding process on the Lofty.ai platform.

Revenue Model

RENTAL REVENUE The LLC receives monthly rental income from a long-term tenant under a 12-month residential lease agreement. After operating expenses are deducted, the net cash flow is automatically distributed to token holders on a pro rata basis through a smart contract. The tenant is responsible for all utility payments. Key cash flow metrics: - Net annual cash flow: USD 22,938 - Monthly property cash flow: USD 1,912 CAPITAL APPRECIATION • In addition to rental income, investors participate in the potential appreciation of the property's market value. • As a benchmark, Lofty.ai uses the Zillow Home Value Index (ZHVI) Single Family Homes Time Series for properties within the 35th–65th percentile of home values. • Actual property appreciation depends entirely on local real estate market conditions and cannot be determined in advance. • The projected annual property appreciation is 4.90%*. OPERATOR BUYBACK The operator retains the contractual right to repurchase the entire tokenized ownership interest from eligible participants before the end of the investment period. Buyback terms: - Buyback price: USD 56 per token (a 12% premium)* - Exercise period: within 6 years Buyback is exercisable solely at the operator's discretion and is not guaranteed.

Financing

FINANCING STRUCTURE The capital structure consists of: - Total property value: USD 763,150 - Debt (operator's mortgage): USD 512,050 - Tokenized equity: USD 251,100 - Loan-to-Value (LTV): approximately 67%, representing the ratio of debt to the total property value at the time of listing. MORTGAGE The property carries an existing mortgage held by JPMorgan Chase Bank, N.A. (Account No. 1160592729). Key terms: - Original principal balance: $548,250 - Unpaid principal balance: ~$506,895 (as of April 2025, per Chase mortgage statement) - Current loan balance per Lofty.ai: $494,003.56 - Interest rate: 2.875% fixed per annum - Monthly payment: $2,311.95 - Maturity date: November 2051 IMPORTANT DISTINCTION The mortgage is held in the name of Shubham Sethi personally - not in the name of the LLC. Mortgage payments are the personal obligation of the operator and are not deducted from LLC rental income or token holder distributions. Eligible participants in the LLC bear no direct liability for the mortgage obligation.

Why This Market

Past performance is not indicative of future results. Historical market data is provided for informational context only and should not be construed as a projection or guarantee of future returns. LOCATION The property is located in Bee Cave, Travis County, Texas, within the rapidly growing Lake Travis area of the Greater Austin metropolitan region. The location combines the advantages of a suburban residential environment with convenient access to one of Texas's largest business and technology hubs, supporting sustained demand for long-term residential rentals. LOCAL INFRASTRUCTURE & AMENITIES The area benefits from well-developed commercial, social, and transportation infrastructure. Major retail centers, healthcare facilities, and primary transportation corridors are located nearby, providing convenient access to Austin's business districts. Terra Colinas is a modern master-planned community featuring professionally maintained shared amenities and landscaped common areas managed by the Homeowners Association (HOA). RENTAL MARKET An independent appraisal conducted in July 2024 determined the property's market rental value based on an analysis of 29 comparable rental properties located within the same market area. The results demonstrate the property's competitiveness within the Greater Austin rental market and reflect the area's sustained demand for long-term residential housing. MARKET DYNAMICS Population growth, a high proportion of renters, and a steady daily inflow of commuters from surrounding areas create favorable conditions for continued demand for long-term rental housing in Bee Cave. The area's well-developed infrastructure and proximity to the region's largest economic center further enhance its attractiveness to residential tenants.

How the Model Works

OWNERSHIP STRUCTURE • The investment model is based on fractional ownership of the property through an equity interest in Wyoming DAO LLC. • Legal title to the property is held by the LLC, while investors acquire tokens representing membership interests in the company. • Each token corresponds to one proportional membership unit and grants its holder equal economic rights and voting rights. TOKENIZATION MODEL • The membership interests are represented by Algorand Standard Asset (ASA) tokens. • Token issuance, income distribution, and corporate governance are managed through Algorand smart contracts. • Rental income is automatically distributed to all token holders on a pro rata basis according to their ownership interests. GOVERNANCE Key decisions, including: • changes to the management company; • additional capital contribution requirements (capital calls); • liquidation of the LLC; Require the approval of a qualified majority of at least 60% of the voting interests. To prevent concentration of control, no investor may own more than 15% of the total issued token supply. SECONDARY MARKET • Tokens may be freely traded on the Lofty.ai secondary marketplace. • Ownership is transferred directly between buyers and sellers. • Market prices are determined solely by supply and demand. • Liquidity is not guaranteed, and there is no fixed investment exit date.

Legal Structure

ENTITY The property is owned by Peach LFTY0407 DAO LLC, a Wyoming Decentralized Autonomous Organization Limited Liability Company (DAO LLC) registered in the State of Wyoming. Entity details: - Entity ID: 2024-001446606 - Date of incorporation: April 24, 2024 - Status at registration: Good Standing - Certificate ID: 072132218 The company's registration and legal status have been confirmed by the Wyoming Secretary of State. Registered Agent: Registered Agents Inc. 30 N Gould St, Ste R Sheridan, WY 82801 TITLE & OWNERSHIP • Legal title to the property was transferred to the LLC through a General Warranty Deed recorded on September 3, 2024, with the Travis County Clerk. • The previous owners, Shubham Sethi and Rakshit Kaur, conveyed the property to the LLC for nominal consideration while retaining a joint economic interest. • The LLC is the sole recorded owner of the property. • Legal description of the property: Lot 32, Block F, Terra Colinas Phase Two, Travis County, Texas. • Ownership is held under fee simple title, representing the most comprehensive form of real property ownership recognized under U.S. law. SMART CONTRACT The smart contract (Application ID: 1776869683) governs: - token issuance; - automated income distribution; - corporate governance mechanisms. Pursuant to the Wyoming Decentralized Autonomous Organization Supplement (W.S. § 17-31), in the event of any conflict between the smart contract and the Operating Agreement, the smart contract prevails and has legal priority.

Property Management

OPERATOR & CO-OWNER Shubham Sethi Product leader with a background in SaaS and AI product development, including founding and scaling technology companies. Serves as named landlord and co-owner of the property, responsible for oversight of the management arrangement and strategic decisions related to the asset. Retains a co-ownership interest in Peach LFTY0407 DAO LLC. PROPERTY MANAGER Vince Joseph Designated property manager under the current lease agreement, operating through Trinity Texas Property Management, INC., Cedar Park, TX.

*Target only. Not a guaranteed or promised return **All figures, percentages, and returns shown in the infographics are targets only and are not guaranteed.