Mr. Johan Wattenstrom reports

DEFI TECHNOLOGIES' SUBSIDIARY VALOUR LAUNCHES VALOUR FUNDS SPC, A NEW BUSINESS LINE, AND INTRODUCES ITS FIRST HEDGE FUND, SMART CRYPTO FUND SP, POWERED BY NEURONOMICS' PROPRIETARY AI STRATEGY

Defi Technologies Inc.'s subsidiary, Valour Inc., a leading issuer of exchange-traded products has launched Valour Funds SPC, a new business line focused on actively managed digital asset investment strategies.

Through Valour Funds, a wholly owned subsidiary of Valour, the new business line is introducing Smart Crypto Fund SP, its first hedge fund, providing professional and qualified investors with access to an actively managed investment strategy based on artificial intelligence.

The hedge fund expands Valour's investment platform beyond exchange-traded products into actively managed investment solutions. It combines Valour's institutional fund platform and digital asset infrastructure with a strategy developed and managed by Neuronomics AG, a Swiss portfolio manager specializing in artificial intelligence and systematic investing.

Smart Crypto Fund SP has been established as the first hedge fund portfolio of Valour Funds SPC, a Cayman Islands company registered with the Cayman Islands Monetary Authority. The strategy uses proprietary artificial intelligence models to adjust allocations across a regularly reviewed selection of liquid digital assets, rather than maintaining fixed exposure to a single cryptocurrency or a static basket.

"With the Smart Crypto Fund, we are expanding Valour's investment offering beyond exchange-traded products and into actively managed hedge fund strategies," said Johan Wattenstrom, chief executive officer and chairman of Defi Technologies. "By combining Valour's digital asset infrastructure with Neuronomics's AI-based systematic investment expertise, we can offer professional investors an actively managed strategy within an institutional fund framework."

AI-driven systematic investment strategy

Digital asset markets offer a broad range of investment opportunities. However, they also experience significant volatility, rapidly changing conditions and substantial differences in liquidity and risk across individual assets.

The hedge fund is not designed to maintain a fixed allocation or remain fully exposed to the market at all times. Instead, it seeks to invest selectively when the expected balance of opportunity and risk is favourable. It also seeks to reduce exposure when model signals weaken or assessed risk increases.

Neuronomics's proprietary AI ensemble, a group of complementary models, is central to this approach. The models analyze price, volume and other market data over short and medium time horizons. They seek to distinguish useful signals from market noise and assess potential returns, risk and market conditions.

These assessments guide the size of each position across a regularly reviewed selection of liquid digital assets. Portfolio allocations remain subject to predefined risk budgets, limits on individual assets and concentration, and controls on overall market exposure.

Trading instructions are executed using algorithms selected according to market liquidity and expected transaction costs. This disciplined process is designed to capture investment opportunities while actively managing the volatility and downside risks of digital asset markets.

"Digital asset markets generate enormous volumes of rapidly changing information, but the challenge is determining which signals matter, over what horizon and under which market conditions," said Dr. Michael Kometer, founder and chief executive officer of Neuronomics. "Our proprietary AI ensemble helps separate signal from noise and translates forecasts into disciplined portfolio decisions. It guides what we hold, how much risk we take and when we reduce exposure."

Institutional infrastructure

Smart Crypto Fund SP brings together Valour's digital asset platform, Neuronomics's investment management capabilities and a network of specialist service providers covering fund administration, custody, banking, execution and audit.

The structure separates investment management, administration, custody and execution. This provides the operational framework required for a professionally managed digital asset investment fund.

The launch marks Valour's expansion into the hedge fund segment

Valour offers over 100 digital asset ETPs, more than any other digital asset manager globally. These products give investors access to the world's most innovative digital asset ecosystems through regulated markets.

Smart Crypto Fund complements this offering with an actively managed hedge fund for professional and qualified investors. The fund uses a systematic investment approach to identify opportunities across the digital asset market.

About Defi Technologies Inc.

Defi Technologies is a financial technology company building for the convergence of traditional capital markets and decentralized finance. As a publicly listed and vertically integrated digital asset platform, Defi Technologies provides familiar, simple, secure and regulated access to the digital asset economy through investment products, trading and liquidity infrastructure, research, and strategic capital deployment. Its business includes Valour, a leading issuer of regulated digital asset ETPs; Stillman Digital, an institutional-grade digital asset trading and liquidity platform; and Defi Alpha, the company's internal business line focused on opportunistic trading, arbitrage and other capital market strategies. With deep expertise across capital markets and emerging technologies, Defi Technologies is building the gateway between traditional finance and the future of digital assets.

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