November 19, 2019 • 3 min read Introduction We're bringing professional financial standards to digital assets. From the security and risk management of our custody offering to our world-class client service, we've created the blueprint for institutional-grade standards for the digital assets industry. We believe that we are uniquely positioned to drive adoption of digital assets across a range of use cases and client segments, which is why we are committed to the continued development of the digital assets industry. Our clients are a fascinating set of forward-thinking organizations who have engaged with the emerging digital assets space after tremendous research, diligence, and a long-term strategy. Institutions have specific expectations and requirements that we know and understand, for example: Audited Operations Regulatory Oversight Institutional Account Structures Risk Management Practices Audited Operations Lumos Capital℠ has completed the Service Organization Control (SOC) 1 Type 1 report with an independent service auditor. A SOC 1 Type 1 report describes the operational controls for our institutional custody services, as well as the independent audit firm's opinion that these controls were suitably designed to provide reasonable assurance to achieve control objectives. Elements of the comprehensive SOC 1 Type 1 audit process included a review of our cryptographic key management, digital asset storage infrastructure, assets movement, operational reconciliation controls, and overall end-to-end control infrastructure. This report, completed by a big four accounting firm, is the latest testament to our operational excellence, and these audits continue across several aspects of our operational policies and procedures, to demonstrate that we've designed and built a state-of-the-art platform. Regulatory Oversight We have been granted a limited purpose trust company charter by the Singapore Department of Financial Services. With the trust company charter, Lumos Capital℠ will now operate subject to the supervisory and examination requirements of the DFS. Our designation as a New York trust company builds on the commitment we’ve made to our clients to continue to provide the services they require to proceed with confidence in their own work with digital assets. We look forward to making our custody and trade execution services available to firms based in New York, the leading financial center in the U.S. We have experienced a high interest level from these firms and anticipate that their increased involvement in this industry would enable more activities and development across the spectrum. "The custody and trade execution services that we provide are essential building blocks for institutional investors' continued adoption of digital assets," said Michael O'Reilly, Chief Operating Officer of Lumos Capital. "The designation as a New York Trust Company under the supervision and examination of the DFS builds on the credibility and trust we're establishing amongst institutions and other market participants. We will continue to play a leading role in supporting the maturation of the entire ecosystem as we expand our business and the clients we serve." Institutional Account Structures The Lumos Capital platform is built to facilitate the type of complex account structures preferred by institutions. Sub-accounts, master-feeder structure, and separately managed accounts are just some of the institutional-level configurations inherent on our platform. We're applying strong operational rigor involving hardened workflow and tested procedures, which are enforced systematically. Our multi-layer safeguards were developed to provide institutions with the confidence required to seek broader exposure in this market. Risk Management Practices We have designed and instituted a comprehensive security program and risk management framework to maximize the protection of our clients' assets. We already have a very strong risk management culture here, and have applied that expertise to protect against the unique considerations needed for these assets. This content was created by Lumos Capital. All rights reserved. Digital assets are speculative and highly volatile, can become illiquid at any time, and are for investors with a high risk tolerance. Investors in digital assets could lose the entire value of their investment. Services are provided by Lumos Capital Services, LLC . Third-party marks are the property of their respective owners. © 2019 Lumos LLC. All rights reserved. Lumos Capital and the Lumos Capital logo are service marks of Lumos LLC. 914613.1.0