Issued by: Insela UAB
Effective Date: April 15, 2025

Insela UAB, a company registered in Lithuania and the operator of the Flour Yield Token (“FYT”), hereby affirms its commitment to full legal compliance with applicable laws and regulatory frameworks governing digital assets in the European Union and internationally.

1. Regulatory Framework Compliance

Insela has carefully assessed the legal status of the Flour Yield Token (FYT) against all relevant regulations and guidelines, including but not limited to:

• The Markets in Crypto-Assets Regulation (MiCA, Regulation (EU) 2023/1114)

• The EU General Data Protection Regulation (GDPR, Regulation (EU) 2016/679)

• National financial regulatory guidelines applicable in Lithuania and the broader EU

As of the date of this statement, Insela complies with all known legal requirements related to:

• The issuance and distribution of FYT

• Marketing communications and disclosures

• Data protection and consumer rights

• Transparency, risk disclosures, and AML considerations (where applicable)

2. Legal Classification of the Flour Yield Token (FYT)

Based on comprehensive internal and external legal analysis, Insela classifies the FYT as a utility token within the meaning of the MiCA framework.

Specifically:

• FYT does not qualify as a security token, as it does not represent any ownership, debt claim, or profit participation in Insela or any affiliated company.

• FYT does not qualify as an e-money token or stablecoin, as its value is not pegged to a fiat currency or backed by funds intended to maintain price stability.

• FYT is intended solely as a utility token that provides access to services, products, and benefits within the Flour Yield ecosystem (e.g. redemption of real-world goods, access to regenerative food networks, and participation in sustainability incentives).

3. Prospectus Exemption

As FYT is not classified as a security under MiCA or national law, Insela believes that the issuance of FYT does not require the publication of a capital markets prospectus.

However, Insela will publish detailed offering documentation (e.g., Whitepaper and Private Placement Memorandum) in line with best practices to ensure transparency and investor awareness.

4. Forward-Looking Compliance Commitment

Insela is committed to proactively monitoring changes in the regulatory environment and will:

• Continuously review FYT’s classification in light of updated MiCA guidance and other jurisdictional rulings

• Implement compliance measures related to anti-money laundering (AML) and countering the financing of terrorism (CFT), where required

• Cooperate with supervisory authorities in any jurisdiction where FYT is marketed or accepted