Target Market Determination

COINTREE PTY LTD ACN 167 203 303 (“Cointree”, “we”, “us”) Date: [27 November 2025] Version: [Version 1]

TARGET MARKET DETERMINATION

This Target Market Determination (TMD) is prepared by Cointree Pty Ltd ACN 167 203 303 in relation to Forte AUD (AUDF) which is re-sold by Cointree.

Cointree is an Australian cryptocurrency exchange and digital currency broker. It makes AUDF available to eligible clients through its online trading platform pursuant to the ASIC Corporations (Stablecoin Distribution Exemption) Instrument 2025/631.

Under this TMD, Cointree acts as a re-seller of AUDF. Cointree acquires AUDF from Forte by way of primary issue and then offers to sell AUDF to its own clients through the Cointree trading platform.

The TMD:

  • describes the class of consumers for which AUDF distributed via the Cointree platform is likely appropriate;
  • specifies distribution conditions and restrictions; and
  • sets out information reporting arrangements, review periods and review triggers.

This TMD is not a Product Disclosure Statement (PDS). Consumers should review the AUDF PDS (available at [https://www.cointree.com/company/pds/audf-pds), Cointree Terms & Conditions (available at [https://www.cointree.com/company/terms-of-service/]) and the AUDF Terms of Use (available at www.forteaud.com) in full before deciding whether to acquire AUDF.

AUDF

Forte Securities Pty Ltd ACN 614 579 734 AFSL No. 492490 (Forte) is the issuer of AUDF. Forte is responsible for managing the AUDF reserves that are intended to support the value of AUDF tokens on issue. Forte Tech Solutions Pty Ltd ACN 656 181 065 (FTS) is a related entity of Forte and facilitates the primary issuance and redemption of AUDF for eligible wholesale clients.

AUDF is a digital token that is designed to reflect the value of one Australian dollar (AUD) per token. It is intended to be fully backed by AUDF reserves held and managed by Forte, although this reserve objective is not guaranteed. AUDF is issued on supported blockchains, which allows AUDF to be held in compatible digital wallets and transferred on-chain within supported environments. AUDF can be used for transfers, settlements and payments within those environments, or as part of a broader trading or liquidity strategy on platforms that support AUDF (including Cointree).

Key product attributes:

  • AUDF is intended (but not guaranteed) to maintain a value of approximately 1 AUDF to 1 AUD.
  • AUDF is a digital-only token recorded on supported blockchains and is subject to blockchain, smart contract and network risks.
  • Primary issuance and redemption at 1 AUDF for 1 AUD is available only to wholesale clients who meet the eligibility requirements prescribed by Forte/FTS and comply with the AUDF Terms of Use. Retail clients of Cointree access liquidity primarily via secondary market sales.
  • AUDF does not pay interest or any form of yield and is not covered by the Financial Claims Scheme. It is not a bank account, term deposit or traditional cash product.

TARGET MARGET ASSESSMENT The table below sets out the core product features and, in simple terms, the types of consumers for whom AUDF is likely to be appropriate and the types of consumers for whom it is unlikely to be appropriate.

DISTRIBUTION

AUDF may only be distributed by Cointree through its own platform and official communication channels.

Cointree will distribute AUDF by making it available for purchase under the AUDF:AUD trading pair within the Cointree trading platform. Only clients who satisfy Cointree’s onboarding, identification, AML/CTF and eligibility requirements, and who have agreed to the Cointree Terms & Conditions and acknowledged the AUDF PDS, will be able to acquire AUDF from Cointree.

Cointree will not distribute AUDF:

  • to persons who fail Cointree’s onboarding, sanctions or AML/CTF screening; or
  • in a way that represents AUDF as a bank deposit, savings account, capital-guaranteed product, or a yield-bearing or speculative investment.

Cointree’s marketing and client-facing materials about AUDF will be prepared to be consistent with the AUDF PDS and this TMD. In particular, Cointree will take steps to ensure that its communications explain that AUDF is a digital stablecoin product, not a traditional bank product, and that AUDF does not pay interest or yield and is not protected by the Financial Claims Scheme.

Cointree will provide information and support to clients through its website and support channels, but will not provide financial product advice in connection with AUDF. Clients will be encouraged to read the AUDF PDS and consider whether AUDF is appropriate in light of their own objectives, financial situation and needs.

REVIEW

The TMD will be reviewed on an annual basis, unless a particular event or circumstance occurs that might materially change the information contained in this TMD or suggest that it is no longer appropriate.

  • Periodic reviews will be undertaken at least annually.
  • A review will be undertaken immediately upon the occurrence of a review trigger, which is:
  • AUDF materially or persistently deviates from the intended 1:1 AUD value.
  • Legislative or regulatory changes affecting stablecoins, digital asset custody or AUDF redemption frameworks.
  • Material amendments to the AUDF PDS, AUDF Terms of Use or the Cointree Terms & Conditions.
  • Operational outages or incidents impacting AUDF transfers or reserves.
  • A significant dealing in AUDF outside the target market.
  • Increases in customer complaints or trends indicating consumer detriment.

REPORTING

Cointree will collect, analyse and review information to monitor distribution outcomes, including:

  • product usage which may AUDF holdings, transfer volumes, redemption activity, dormancy.
  • customer feedback and complaints on product experience, including the volume and category of complaints received;
  • general feedback from other sources, such as regulators, third-party suppliers and other stakeholders; and
  • operational incidents such as blockchain outages, smart contract issues, custody, reserve or audit discrepancy events.

If monitoring indicates that AUDF is being distributed outside this TMD, or that the product may be causing consumer detriment, Cointree will take appropriate corrective action. Depending on the circumstances, this may include:

  • Updating this TMD to better reflect actual consumer outcomes, changes to the AUDF PDS or Terms of Use, or adjustments to distribution conditions.
  • Modifying or pausing distribution, including tightening eligibility and onboarding requirements, adjusting or suspending marketing activities, or temporarily stopping new acquisitions of AUDF while issues are addressed.
  • Implementing consumer remediation, which may involve notifying affected clients, providing support to help them exit AUDF positions where appropriate, and considering compensation or other remedial measures in line with Cointree’s obligations.

Cointree will also consider whether escalation to Forte, FTS or relevant regulators is necessary, and will keep records of any steps taken in connection with a review of this TMD.