Market Regulation

Below is primarily for CryptoAssets: subclass: CryptoDebt.

For CryptoAssets: subclass: CryptoCurrency, please contact us.

PEMX® Exchange Philosophy

Our philosophy? Keep it simple. PEMX^® is an environment for origination and trading of primary mortgage securities, namely, first, second, third, fourth mortgages or other type of real estate (title-registered) secured debt instrument (mortgage instruments, mortgage loan notes, mortgage deeds). Only licensed primary mortgage market originators (brokers) or first-party holders of existing mortgage instruments (mortgage bankers, accredited and Accredited Class^® individual and corporate investor-lenders) are permitted to originate or otherwise trade at PEMX^®.

Jurisdictional Accountability

Primary mortgage market securities (origination's) are offered by the Listed Licensed Mortgage Broker who has originated the transaction within the jurisdiction of the property's location. Secondary mortgage securities are offered by the Mortgage Bank, Accredited or Accredited Class^® investor who owns the respective mortgage instrument. The PEMX^®'s role is provide a certified quality managed environment for the trading of primary mortgage securities for primary market originators and secondary market security holders.

Fiat and Non Fiat Currency

For fiat, Canadian and USA currency mortgage instruments, visit the respect of currency issuing body for jurisdictional limitations.

For non-fiat cryptocurrency mortgage instruments, namely the BITMORTGAGE™ trademarked brand, visit www.bitmortgage.org.

Quality

Leveraging on proprietary financial services quality technology delivered through MortgageQuote Systems, a division of MortgageQuote Canada Corp. (a Member Company), all processes, including the core activities of PEMX^®:

Underwriting

Mortgage Instrument Investment

Investor Communication

function within an ISO 9001:2015 certified, quality management system. MortgageQuote Systems is a pioneer of ISO 9001:2015 certified, quality management systems within the domain of mortgage banking and mortgage brokering. The mortgage processes that are managed for quality include:

Scope of ISO 9001:2015 Coverage:

Mortgage Process Units:

Origination

Underwriting

Securities

Funding

Collections

Default

Enforcement

Customer Service

Stakeholder Communication: Customers (Mortgagees), Mortgagors, Vendors

Compliance

Audit

Compliance

All listed members of PEMX^® must operate in compliance with the principles of quality management to ensure the efficacy of the trading system and to ensure that private, mortgagor information remains in a safe-harbour, privacy-compliant environment.

All members of subject to audits by PEMX^® on an ad hoc basis.

Process Audit

Through the technology delivery provider, MortgageQuote Systems, PEMX^® mortgage process units are subject to ongoing, ad hoc systems and process, internal audits; and a minimum of two third-party external audits per year.

Accountability Audit

Audits are undertaken both annually and on an ad hoc basis; this is an effective way to maintain quality control and establish accountability within the PEMX^® community and trust with all stakeholders, including the general public.

Member Certification - Private Equity Mortgage Institute (PEMI)

All Full Member Licensed Mortgage participants must be certified by the Private Equity Mortgage Institute (PEMI)^TM (www.peminstitute.org).

Market Process

Transaction Classes

Corporate Transactions

Peer-to-Peer Transactions

Brokered Transactions

Lawyer Transactions

Accepted Transactions

Primary Mortgage Market Origination - any mortgage lending opportunities originated by a Listed Licensed Mortgage Broker (licensed - if required - by the government regulatory framework within the jurisdiction of the underlying real property which is to be secured by the prospective mortgage instrument).

Secondary Mortgage Market Securities - any mortgage investment opportunities presented by first-party mortgage security holders who seek to divest of an existing mortgage instrument or, seek to invest in another party's existing mortgage security, or seek to invest in a primary mortgage market lending opportunity marketed through PEMX^® by a Listed Licensed Mortgage Broker.

Prohibited Transactions

The PEMX trading platform prohibits the marketing, trading or otherwise involvement of high-risk investment structures including:

Pooled/Syndicated/Structured Transactions

ABS - Asset Backed Securities

CDO - Collateralized Debt Obligations

CMO - Collateralized Mortgage Obligations

MBS - Mortgage Backed Securities - (all types)

Offering Memorandum - Prospectus Transactions

Any mortgage investment instrument that legally requires an accompanying public disclosure document by a securities commission:

Prospectus

Offering Memorandum

Compliance Identifier: "No Offering Memorandum - No Prospectus"

No Offering Memorandum - No Prospectus

A compliance identifier developed by the Private Equity Mortgage Mortgage Institute (PEMI)^®.