New digital platform seeks to offer fixed-term, institutional-grade financing to advisors and their clients.

Vest, the innovative financial firm that created the first Buffer Fund and pioneered defined outcome investing, today announced Synthetic Borrow™, an advisor-ready portfolio financing strategy delivered through a digital investment platform. Synthetic Borrow™ takes an alternative approach to traditional portfolio borrowing through listed derivatives. Advisors can generate sample borrowing terms showing indicative rates in seconds — no banks, no credit checks, no forced sales of securities.

“Options- and derivatives-based strategies have transformed investing, giving advisors access to target-income and target-outcome tools that were unimaginable a few years ago,” said Jeff Chang, President and Co-Founder of Vest. “With Synthetic Borrow™, we’re taking the next step—redefining how advisors approach liquidity planning. Having helped lead the industry’s evolution with buffer funds and ETFs, Vest is now applying proven derivatives strategies and technology to bring new efficiency to portfolio-based financing—changing that landscape and unlocking greater value for advisors and their clients.”

The launch targets the $138 billion portfolio financing market (source: federalreserve.gov), historically dominated by pledged asset lines (PALs) and margin lending. With Synthetic Borrow™, advisors can use Vest’s digital investment platform to:

• Onboard clients and review sample borrowing terms through a secure online interface
• Lock in fixed, market-based rates upfront–avoiding floating-rate uncertainty
• Keep portfolios fully invested while accessing upfront liquidity

"We built the first Buffer Fund because we believed advisors needed better access to derivatives strategies," said Karan Sood, CEO and Co-Founder of Vest. "Now we're applying that same philosophy to portfolio-based financing. The traditional financing solutions are left wanting — variable rates create uncertainty, credit checks delay access, and it all can result in less-than-optimal outcomes. We rebuilt portfolio financing from the ground up by utilizing implied financing available in the listed derivatives markets and delivering it for easy access through a tech-enabled platform. In our view, portfolio financing should have been this efficient all along."

Learn more at syntheticborrow.vestfin.com.

Vest brings institutional scale and credibility to the category: the firm currently oversees over $54 billion* in options-based strategies and has executed more than ~$350 million in box trades since 2024 — the derivatives structure underlying Synthetic Borrow™.

*As of September 30, 2025. $46.6B assets under management, $8.1B non-discretionary assets under supervision

About Vest

Vest seeks to deliver the benefits of derivatives with precise, outcome-driven solutions—bringing more certainty and clarity to portfolios. Our Target Outcome Investments® designed to simplify derivative strategies into trusted, outcome-focused products, accessible through a broad range of investment solutions. As the leader in Target Buffer ETFs® and creators of over 300 innovative products, we oversee over $54B+* with a pristine track record of target delivery. Combining derivatives expertise, practical execution, and trusted relationships, Vest is committed to making derivatives work for investors.

Risks and Considerations

Certain Key Risks:

Synthetic Borrow™ involves the use of options strategies and carries risks including potential loss, margin requirements, and early termination costs. Interest rates and terms are subject to market conditions and availability. Tax treatment depends on individual circumstances; consult a tax advisor. This is not a traditional loan product and is not FDIC insured. Not all clients or accounts may be suitable. Please review full risk disclosures at syntheticborrow.vestfin.com before investing. Past performance is no guarantee of future results. All content provided for informational purposes only.

Interest Rate and Liquidity Risk: Box spreads used in the Synthetic Borrow strategy have a fixed payoff at a future date, making them economically similar to zero-coupon bonds. The short box spread used in the strategy is subject to interest rate risks meaning that its mark-to-market value may fluctuate as interest rates and broader market conditions change. While the final payoff of the box spread is fixed, interim valuations can move in response to shifts in rates. The ability to purchase or sell box spreads effectively is dependent on the availability and willingness of other market participants to transact in box spreads at competitive prices. If the box spread is closed or downsized before expiration, the payoff amount owed by the client may be different than the fixed payoff at the original expiration date. This could cause the client to realize a higher implied borrowing rate than the amount that was in place at the original expiration date.

Market Risk: The amount of net premium, early repayment amount (if applicable), borrowing rate, and duration available will differ in future market conditions and there is no guarantee that the same terms will be available to any client seeking to utilize this strategy.

Margin and Repayment Risk: Short box spreads require margin approval and may require significant collateral. If the value of a client’s collateral account falls below the minimum maintenance requirements set by the custodian, a margin call will be issued by the custodian, requiring the client to deposit additional cash or acceptable collateral to maintain the options trade. Failure to maintain adequate margin may result in the custodian’s sale of some or all securities in the client’s collateral account (securities unrelated to the options positions maintained as part of the strategy) to protect the options positions. Such liquidations may occur at unfavorable prices, resulting in potential losses and adverse tax consequences for the client. The advisor to the account must maintain margin in the account at all times to sufficiently collateralize the options positions. Margin amounts are determined by the custodian and must be monitored by the advisor to the account. In addition, at the time of expiration or early repayment, the client’s options account must have sufficient cash to cover the repayment amount. Failure to maintain sufficient funds in the account when repayment obligations are due will result in will result in the account having a liability, which the investor is still legally obligated to repay, and will accrue margin interest at the custodian’s margin rates, which are subject to change. Vest will have no responsibility to monitor margin requirements or repayment amounts for any account and will have no responsibility for any losses to accounts caused by inadequate maintenance of margin or repayment amounts in client accounts. If a client chooses to extend the financing at the expiration date by rolling the short box spread over to a new term, the client will be subject to different terms (including with respect to margin requirements) based on market conditions and the option contracts available at that time.

Aggregate Margin Risk: When accounts are linked under an aggregate margin arrangement, collateral and margin requirements are calculated on a consolidated basis across all participating accounts. While this can increase borrowing capacity and efficiency, it also introduces additional cross account exposure risks. Losses or margin deficiencies in one account may impact the overall margin requirement of the aggregate relationship. This could result in margin calls or forced liquidations in other accounts within the aggregate, even if those accounts would not otherwise be subject to such calls on their own. If applicable to clients, advisors should carefully review these obligations, understand how margin is calculated, and be prepared to monitor margin performance across all accounts within the aggregate relationship.

Trading Risk: There is no guarantee that Vest will be able to execute a box spread transaction on any given day or at anticipated pricing levels. Market conditions, including volatility, liquidity constraints, or changes in interest rates, may prevent execution or result in execution at less favorable prices. Trading may be delayed, suspended, or otherwise restricted due to exchange-imposed halts, order imbalances, or operational issues. In certain market environments, it may not be possible to establish, adjust, or close a box spread position without incurring significant costs or losses.

Tax Risk: Box spread trades on S&P 500 index options (SPX) are generally treated as Section 1256 contracts under the Internal Revenue Code. Section 1256 contracts are marked-to-market at year end (e.g., treat them as if they were sold at year end even if they are still being held), and gains or losses are treated as 60% long-term and 40% short-term capital gains or losses, regardless of holding period. The tax treatment of options strategies can be complex. Outcomes depend on the client’s overall tax situation, other trading activity, other assets held and potential application of rules such as straddle provisions. Failure to properly report tax information, including a client’s gains or losses relating to the strategy, can result not only in underpayment penalties and interest but may also subject the taxpayer to additional IRS scrutiny or audits. Because tax consequences depend on each client’s individual circumstances, outcomes may differ significantly between clients, even if trades are identical. The foregoing is a description of certain tax-related risks that may apply to an investor engaging in the strategy but is not a fulsome explanation of all possible tax risks, tax considerations, or tax outcomes. Advisors and clients must consult their own tax professionals to determine actual tax consequences of the transaction.

Investment advisory services are provided by Vest Financial LLC (“Vest”), an investment advisory firm registered with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or training. The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, Vest is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.

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