HC.exchange is the Health Commodity Exchange™ — the health-native commodity exchange built by Conceptual Health. Users earn HealthCoin Rewards (HCR) through verified health activities in the GuardianOrb™ app, then trade HCR and community health chain tokens on the open market.

What is the HCR supply cap?

HealthCoin Rewards (HCR) has a hard supply cap of 21 billion HCR — Bitcoin-inspired scarcity. All 21B HCR were mined at genesis across 7 allocation blocks (Foundation Reserve, Ecosystem Growth, Community Mining Pool, Clinical Partners, Developer Fund, Community Airdrop, Strategic Reserve). No new HCR can ever be created.

How do I earn HealthCoin Rewards (HCR)?

HCR is earned from the Community Mining Pool through verified health activities in the GuardianOrb™ app: gym visits, step tracking, clinical appointments, medication adherence, and preventive screenings. Each verified activity credits HCR from the mining pool directly to your wellness wallet.

Is HC.exchange IRS compliant?

HCR and HCC are intended to be classified as digital commodities under 7 U.S.C. §1a(9); CFTC classification is pending Innovation-office engagement and a conservative dual-track posture is maintained until confirmed. HC.exchange provides full IRS Form 1099-B reporting, FIFO cost-basis lot tracking, and W-9/KYC compliance for USD withdrawals. Mining-earned tokens (HCR via patient action, HCC via verified work events) have zero cost basis per IRC §61.

What are community health chains?

Community health chains are specialized tokens built on top of HCR for specific health categories. Pilot chains include Mental Health Coin (MHC), Diabetes Management Coin (DMC), and Fitness Coin (FTC). Organizations can apply to acquire or create new chains aligned with the 8 Conceptual Health axes.

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CFTC Commodity Notice

Conceptual Healthcare Corporation, Destin, Florida · Revised January 1, 2026

1. Commodity Classification (Intended, Pending CFTC Confirmation)

HealthCoin Rewards (HCR) and Conceptual Healthcare Coin (HCC) are intended to be classified as digital commodities under the Commodity Exchange Act (CEA),CEA § 1a(9). The Company’s view, based on outside-counsel-reviewable analysis, is that both tokens fail the Howey test because neither is sold by the Company, neither has a pre-mine or founder allocation, and the value of each tracks verified action — HCR by individual users (patient health behaviors), HCC by an open set of credentialed actors performing verified healthcare-system-building work (clinical encounters, engineering merges, compliance attestations, IP filings, research milestones) — in which the Company occupies no privileged extraction path.

Classification has not been confirmed by the CFTC. Conceptual Healthcare Corporation has initiated engagement with the CFTC’s Innovation office and maintains a conservative dual-track compliance posture: every operational practice (KYC/AML, record-keeping, anti-fraud architecture, transfer restrictions during the pre-engagement window, accredited-investor screening for institutional inquiries) is architected to satisfy both the CEA spot-anti-fraud regime appropriate to commodity status and a conservative Securities Act baseline appropriate to a hypothetical adverse classification — so a ruling either way does not require a costly reset.

HCR + HCC Are Intended To Be

Digital Commodities

Both intended to be classified as digital commodities under the Commodity Exchange Act § 1a(9), subject to CFTC spot-anti-fraud jurisdiction under § 6(c)(1) and Rule 180.1. Treated as property for US tax purposes; mining-earned units have zero cost basis per IRC § 61.

HCR + HCC Are Not Intended To Be

Securities

Neither is sold by CHC. Neither has a pre-mine, founder allocation, or investor distribution. Neither represents equity, debt, or a share in profits of CHC. Securities-law characterization is, in the Company’s view, not supported by the mechanism — but classification has not been confirmed by any regulator, and the dual-track posture above is maintained pending engagement-office response.

2. US Tax Treatment

For US federal tax purposes, HCR is treated asproperty under the capital-asset rules ofIRC § 1221. (Tax-law classification is independent of CEA commodity classification; see Section 1 above.) The following tax rules apply:

Event	Tax Treatment	IRS Form
Sell or exchange HCR	Capital gain or loss (short-term if held <1 year; long-term if held ≥1 year)	Form 8949 / Schedule D
Earn HCR via health activity	Ordinary income at fair market value at receipt (IRC §61); zero cost basis	Schedule 1 / Form 1040
Trade HCR for another digital commodity	Taxable disposition; realize gain or loss based on FMV at time of trade	Form 8949 / Schedule D
Receive HCR as a gift or inheritance	Stepped-up basis rules may apply; consult a tax advisor	Varies

3. IRS 1099-B Reporting

HC.exchange issues IRS Form 1099-B for dispositions of HCR and HCC tokens that meet or exceed applicable IRS reporting thresholds. Copies are provided to the IRS and to each applicable account holder by January 31 of the year following the tax year. Users are responsible for accurate tax reporting regardless of whether a 1099-B is issued.

4. AML/KYC and FinCEN Obligations

HC.exchange maintains robust Anti-Money Laundering (AML) and Know Your Customer (KYC) programs in compliance with the Bank Secrecy Act (BSA)31 USC § 5311 et seq. and FinCEN regulations31 CFR 1010. All users must complete identity verification before accessing fiat deposit or withdrawal services. CHC files Suspicious Activity Reports (SARs) with FinCEN as required by law. CHC screens all users against OFAC sanctions lists and denies service to sanctioned persons.

5. CFTC Jurisdiction and Cooperation

Conceptual Healthcare Corporation acknowledges the Commodity Futures Trading Commission's (CFTC) oversight authority over digital commodity spot markets and derivative contracts. CHC:

Cooperates fully with CFTC inquiries and investigations
Prohibits market manipulation, wash trading, and other practices prohibited under CEA
Maintains records of trading activity as required by applicable regulations
Does not currently offer futures, options, or leveraged derivative products without appropriate registration

6. State Regulatory Compliance

HC.exchange operates in compliance with applicable Florida state money transmission laws and the laws of states in which it provides services. Users are responsible for compliance with the laws of their own jurisdiction. HC.exchange may be unavailable in certain jurisdictions due to regulatory restrictions. CHC monitors the evolving regulatory landscape and updates its compliance programs accordingly.

7. No Financial Advice

Nothing on HC.exchange — including pricing data, charts, analytics, educational content, or any communication from CHC staff — constitutes investment advice, financial advice, commodity trading advice, or a recommendation to buy, sell, or hold any digital commodity or other asset. CHC is not a registered investment advisor, broker-dealer, commodity trading advisor, or commodity pool operator. You are solely responsible for your own trading decisions and should consult qualified advisors for investment, tax, and legal guidance.

Compliance Contact

Conceptual Healthcare Corporation · Destin, Florida
compliance@conceptualhealth.com