Welcome back to another Variational biweekly update! PRODUCT ➡️ The most recent mainnet release was v0.34.0. ➡️ Added in-app announcement page. ➡️ Improved margin usage display. ➡️ Improved notification display. ➡️ Other miscellaneous UI improvements. METRICS ➡️ Total Volume Traded: $339.75B ➡️ Current Dual-Sided OI: $1.83B ➡️ TVL (Excludes OLP Hedging Accounts): $236.12M ➡️ Total Markets Currently Listed: 552 ➡️ Total Rewards Claimed: $8,275,215 ➡️ Total Losses Refunded (Sunset): $4,559,196 ➡️ Total Referral Rewards Claimed: $3,716,019 ➡️ 2w Spreads Paid (Gross Revenue): $4,570,970 ➡️ 2w Net Revenue: $2,479,527 ➡️ 2w Rewards: ($211,814) ➡️ Referral Rewards: ($211,814) ➡️ 2w Net Profit: $2,267,713 ➡️ Protocol Treasury: $914,194 ➡️ OLP PnL: $1,353,519 ➡️ Lifetime OLP PnL: $19,787,369 ➡️ Current Protocol Treasury Holdings: 8,274,637 USDC We appreciate your continued trust and support!

Why Why Energy EARTH IS A DUST MOTE. THE SUN IS THE SCALE. Most people still think civilization is energy-limited on Earth. That’s only half the story. Elon: “The Earth only receives about half a billionth of the Sun’s energy.” “The Sun is 99.8% of all mass in the solar system… Earth is in the miscellaneous category.” “Earth is like a tiny dust mote in a vast darkness.” “The way to actually scale civilization is to scale power in space.” That’s why energy matters. • ~½ billionth — Earth’s share of the Sun’s energy • 99.8% — Sun’s share of solar-system mass • Earth = dust mote / miscellaneous category • Destination = scale power in space We’re not energy-limited. We’re location-limited.

New Episode Today: 3PM PST/6PM EST True North Episode 74: Architecture of Value Agenda: - Cash & Balance Sheet Construction - Pref Equity Analysis - Comps - Miscellaneous Have questions you want answered on the stream? Ask them here:

☀️ Elon Musk on the true scale of energy: “The Earth only receives about half a billionth of the Sun’s energy. The Sun is 99.8% of all mass in the solar system… Earth is in the miscellaneous category. Earth is like a tiny dust mote in a vast darkness. The way to actually scale civilization is to scale power in space.” Mind officially blown. We’re not energy-limited — we’re location-limited. Time to build in space. 🚀🔋

Dallas Fed respondents - uniform negativity: Tariffs and fuel prices are affecting incoming and outgoing products/costs. Customers have hit the limit on what they can pay. We are getting pushback and cancellations (Beverage and tobacco product manufacturing) Fuel costs (diesel, in particular) are adversely impacting our bottom line and that of our customers. We'd welcome a quicker resolution to the conflict with Iran as we believe that could potentially provide more favorable outcomes, improved margins and stability in interest rates. Insurance rates continue to increase in cost with a decrease in coverage. Overall, however, we continue to expand operations with an ever-increasing backlog that will provide a record year of revenue and net income for our enterprise in 2026 (Machinery manufacturing) We are now facing increased difficulty obtaining raw materials domestically. Items that were readily available now take long lead times or are not available in the same specifications we have historically purchased (Miscellaneous manufacturing) The price of diesel fuel is hurting our gross margin. We are unable to pass this through to our customers. We are bidding new jobs using $6.00 [per gallon] for diesel cost (Nonmetallic mineral product manufacturing) Broadly speaking, very little to no manufacturing growth exists as pricing is being driven down by Asian and Chinese suppliers. AI and heavy transportation are growing. Other sectors are weak (Plastics and rubber products manufacturing) Our business has been able to maintain its volume, primarily because several competitors have experienced significant difficulties, including the largest producer in our industry announcing the closure of two plants, one of which is relatively close to us in Louisiana. Our primary concern going forward is the outcome of the U.S.-Mexico trade negotiations. There are significant flows of foreign aluminum into Mexico, including from countries with substantial non-market production and subsidization including Russia and China at prices far below U.S. prices. We are concerned that reduction in tariffs on Mexican aluminum products will give these non-market economies a significantly advantaged conduit into our domestic markets. Rules of Origin policies sound good in theory but experience shows that this relies on the honesty of those doing the reporting. PROSECs (Program for Sectoral Promotion) are also problematic in giving Mexican companies the ability to use these same foreign-supplied raw materials in downstream products. For U.S. aluminum producers, the issue isn't simply the tariff rate applied to Mexico. It is making sure that Mexico does not become a lower-tariff pathway for heavily subsidized aluminum produced in Russia, China or elsewhere in Asia to reach the U.S. market. (Primary metal manufacturing) Incoming orders have really slowed down, and now that we are finishing up on some large projects that have kept us very busy since mid-spring, things are slowing down. We have to believe it's due to the uncertainty around the chaos out of Washington, D.C. and lack of a clear path forward. Add to this the higher cost of living and rising fuel costs, especially for diesel that affects all modes of shipping, it seems to be a logical reason for slower levels of activity amongst our customers (Printing and related support activities) High interest and energy costs are a double hit. We can’t do any planning (Transportation equipment manufacturing)

‼️A FULL LIST OF ITEMS HIT BY NEW 50% TRUMP TARIFFS, NO USMCA SHIELD THIS TIME ‼️ 👇🏼 Alcoholic beverages (beer, wine, spirits) — Chapter 22 (e.g., headings 2203–2208) Essential oils (limited) Wood and wood products — Chapters 44–46 Paper and paperboard products — Chapter 48 Some miscellaneous items (e.g., certain sports equipment) ----- Agricultural & Plant Products — Honey, feathers/down, animal by-products, bulbs, live plants, cut flowers, seeds, hops, vegetable materials, gums, extracts, etc. Dairy, Sugars & Food Preparations — Milk powders, whey, lactose, glucose/fructose syrups, molasses, bakers’ mixes/doughs. Chemicals & Related — Essential oils, perfumes, cosmetics, polyols (mannitol, sorbitol, glycerol), proteins, glues, starches, paints/inks, lubricants. Plastics & Rubber — Sheets, bags, containers, tableware, household articles, gaskets, seals. Hides, Leather & Furs — Raw hides, leather bags/gloves/belts, fur articles. Wood & Paper — Sawn wood, veneer, plywood, moldings, doors, frames, paper, tissue, cartons, labels. Textiles & Apparel — Fabrics, nonwovens, carpets, clothing items. Machinery, Tools & Electronics — Hand tools, turbines, compressors, refrigerating equipment, packing machinery, cameras, monitors, projectors, radar, smartphones/base stations, printed circuits, etc. Other — Salt, cement, candles, toys/games, furniture, lighting, artwork, antiques, boats, etc. ------- Dairy Products (Chapter 04)0402.10.05 — Milk and cream, unsweetened, in powder/granules/flakes, fat content ≤1.5% 0402.10.10 — Milk and cream, unsweetened, in powder/granules/flakes, fat content >1.5% but ≤3% 0402.10.50 — Milk and cream, unsweetened, in powder/granules/flakes, fat content >3% 0402.21.02 — Milk and cream, sweetened, in powder/granules/flakes, fat ≤1.5%, for infant formula or other special uses 0402.21.05 / 0402.21.25 / 0402.21.27 / 0402.21.30 / 0402.21.50 / 0402.21.73 / 0402.21.75 / 0402.21.90 — Sweetened milk and cream in powder/granules (various fat contents and uses) 0402.91.03 / 0402.91.06 — Condensed/evaporated milk and cream, sweetened, various fat levels 0402.99.68 — Other sweetened condensed/evaporated milk and cream nesoi 0404.10.05 / 0404.10.08 / 0404.10.11 / 0404.10.15 / 0404.10.20 / 0404.10.48 / 0404.10.50 / 0404.10.90 — Whey and modified whey (various types, concentrated or with added sugar) 0404.90.10 / 0404.90.28 / 0404.90.30 / 0404.90.50 / 0404.90.70 — Products consisting of natural milk constituents (whey protein concentrates, etc.) Other Products0506.90.00 — Bones and horn-cores, unworked, defatted, simply prepared 1210.20.00 — Hop cones, crushed, ground, powdered or in the form of pellets 1301.90.91 — Natural gums, resins, gum-resins and oleoresins (other than gum arabic, etc.) 1702.11.00 — Lactose and lactose syrup, containing by weight 99% or more lactose 1702.19.00 — Other lactose and lactose syrup 1702.30.28 / 1702.40.28 / 1702.60.28 — Glucose and glucose syrup (various concentrations) 1702.90.35 / 1702.90.58 / 1702.90.68 — Other sugars, sugar syrups, and artificial honey (fructose, maltose, etc.) 1703.10.30 / 1703.10.50 — Molasses from sugar cane 1703.90.30 / 1703.90.50 — Other molasses 1901.20.35 — Mixes and doughs for the preparation of bakers’ wares 2202.91.00 — Non-alcoholic beer 3301.24.00 — Essential oils of peppermint 3501.10.10 / 3501.10.50 — Casein (various grades) 3501.90.20 / 3501.90.60 — Casein glues and other casein derivatives 3502.20.00 — Milk albumin, including concentrates of two or more whey proteins 3504.00.50 — Peptones and other protein substances and derivatives