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Risk Disclosure

The material risks associated with using SpeedyX's crypto-asset services. Please read this carefully before using the Platform.

Effective 12 March 2026 · Version 1.0

⚠ Warning: Crypto-assets are high-risk investments

The value of crypto-assets can increase or decrease rapidly and unpredictably. You may lose some or all of the value of any crypto-assets you hold or purchase through this Platform. Crypto-assets are not legal tender, are not covered by deposit protection schemes, and are not regulated as investments in all jurisdictions. Past performance is not a reliable indicator of future results.

Issued by: Zentropy Digital Limited

1. Purpose of This Disclosure

This Risk Disclosure Statement is provided by Zentropy Digital Limited ("we", "us", "our") to ensure that you, as a user of our Platform, understand and accept the material risks associated with using our crypto-asset services before engaging in any transactions.

By accessing the Platform, creating an Account, or conducting any Transaction, you acknowledge that you have read, understood, and accepted all risks described in this Disclosure. This Disclosure forms part of our Terms of Service.

This Disclosure does not describe all possible risks. You should seek independent financial, legal, and tax advice if you are in any doubt about whether crypto-asset products are suitable for your circumstances.

2. Nature of Crypto-Assets

Crypto-assets are digital representations of value or rights that are transferred and stored electronically using distributed ledger technology (such as blockchain). They are not:

  • Legal tender or government-issued currency;
  • Bank deposits or e-money;
  • Covered by deposit protection or investor compensation schemes;
  • Backed by any government, central bank, or financial institution; or
  • Guaranteed to hold any particular value.

The legal and regulatory classification of crypto-assets varies significantly by jurisdiction and may change over time. You are responsible for understanding the legal status of any crypto-asset in your jurisdiction before transacting.

3. Risk Factors

3.1 Market and Price Volatility Risk

Crypto-asset prices are highly volatile and can change dramatically in a short period of time. Prices may be affected by factors including but not limited to: market sentiment, regulatory announcements, technology developments, exchange liquidity, macro-economic conditions, and market manipulation. There is no guarantee that you will be able to sell a crypto-asset at the price you purchased it, or at all.

3.2 Liquidity Risk

Certain crypto-assets may have limited liquidity, meaning you may be unable to buy or sell at a desired price or time. In periods of extreme market stress or low trading volume, it may be impossible to execute transactions at any price.

3.3 Technology and Cybersecurity Risk

Crypto-assets rely on blockchain technology, smart contracts, cryptographic systems, and internet infrastructure, all of which are subject to technology failures, bugs, exploits, and cyberattacks. A successful attack on the Platform, our custody infrastructure, or the underlying blockchain could result in the loss of your assets. Multi-party computation (MPC) custody technology reduces but does not eliminate this risk.

3.4 Custody and Loss of Access Risk

Your crypto-assets are held through our licensed regulated service partner, which operates a combination of segregated custody and pooled liquidity arrangements depending on the service you use.

For assets held under the segregated custody model, your assets are maintained on a 1:1 reserved basis and are identifiable as yours.

For assets deposited into the Shared Liquidity Pool, title to those assets transfers to the platform upon deposit. You do not hold a proprietary interest in specific assets within the pool; instead, you hold a contractual right to withdraw an equivalent value. This means that in the event of insolvency, regulatory action, or technical failure affecting the pool, your ability to recover assets may be affected and you may not have the same protections as a segregated custody holder.

You should be aware that:

  • Crypto-asset transfers are irreversible. If you send assets to an incorrect address, they cannot be recovered.
  • Loss of access credentials (e.g., passwords, authentication codes) may permanently prevent access to your Account.
  • The Platform does not support self-custody. You do not hold private keys directly.

3.5 Regulatory and Legal Risk

The regulatory treatment of crypto-assets is evolving and varies across jurisdictions. Changes in law, regulation, or regulatory interpretation may affect:

  • The legality of holding or transacting in specific crypto-assets in your jurisdiction;
  • The ability of our regulated service partner to continue providing services;
  • Tax obligations associated with your crypto-asset holdings or transactions; and
  • Your access to funds held through the Platform.

You are solely responsible for understanding and complying with all laws applicable to your crypto-asset activities in your jurisdiction. We strongly recommend seeking independent legal and tax advice.

3.6 Tax Risk

Crypto-asset transactions may give rise to tax liabilities including but not limited to capital gains tax, income tax, VAT, and other taxes depending on your jurisdiction and the nature of your transactions. Tax laws relating to crypto-assets are complex, evolving, and may be applied retrospectively. We do not provide tax advice. You are solely responsible for determining and meeting your own tax obligations.

3.7 Operational and Platform Risk

The Platform may experience downtime, technical failures, delays in transaction processing, or other operational disruptions due to maintenance, upgrades, cyberattacks, or events outside our control. We cannot guarantee continuous, uninterrupted access to the Platform. During periods of disruption, you may be unable to access your Account, view balances, or execute Transactions.

3.8 Counterparty Risk

When you transact through the Platform, you are exposed to counterparty risk in respect of our regulated service partner, banking and EMI partners, liquidity providers, and other third parties involved in the execution and settlement of your transactions. The failure, fraud, or default of any such counterparty could result in delay, loss, or inability to recover your assets.

3.9 Stablecoin Risk

Stablecoins are designed to maintain a stable value relative to a reference asset (such as a fiat currency). However, stablecoins are not guaranteed to maintain their peg and may lose value due to: reserve inadequacy, issuer insolvency, regulatory action, or market conditions. The value of stablecoins held through the Platform is not guaranteed by us or any governmental authority.

3.10 Fork and Protocol Risk

Blockchain networks may undergo forks (protocol changes) that can result in the creation of new assets, incompatible chains, or changes to the rules governing existing assets. We cannot guarantee that we will support all versions of a crypto-asset following a fork. You may lose access to forked assets.

3.11 Concentration Risk

Holding a significant portion of your assets in a single crypto-asset or on a single platform increases your exposure to asset-specific, platform-specific, and concentration risks. Diversification does not eliminate risk but may reduce it.

3.12 AML/Compliance Freeze Risk

In accordance with applicable AML/CTF law, we and our regulated service partner may be required to freeze, hold, or report your assets or transactions without prior notice where we have a legal obligation to do so. We may not be able to inform you of the reason for such action where prohibited by law (tipping-off restrictions). This may result in temporary or permanent inability to access your assets.

3.13 No Platform Guarantee of Returns

We do not guarantee any particular return, profit, or yield on your crypto-asset holdings. Any figures, estimates, or projections published on the Platform are for illustrative purposes only and do not constitute a guarantee or promise of returns. Past performance is not a reliable indicator of future performance.

4. User Classification

Our Platform is available to both retail and institutional users. All users, regardless of classification, are subject to the full risk disclosures set out in this document. We do not operate a reduced-disclosure regime for institutional or professional users on this Platform.

We do not provide services to: persons under 18 years of age; persons or entities located in Restricted Jurisdictions (as defined in our Terms of Service); or persons subject to sanctions or otherwise prohibited from accessing financial services.

If you are uncertain whether you are permitted to use the Platform in your jurisdiction, you should seek independent legal advice before proceeding.

5. No Financial Advice

Nothing on the Platform or in these communications constitutes financial, investment, legal, or tax advice. We are not authorised to provide investment advice. Any information, content, or tools available on the Platform are for informational purposes only and should not be relied upon as a basis for any investment decision.

You should consider whether crypto-assets are suitable for you in light of your financial situation, investment experience, and risk tolerance. If in doubt, seek independent professional advice before proceeding.

6. Platform-Specific Risk Disclosures

6.1 Third-Party Regulated Services

Regulated services available through the Platform (including custody, exchange, and settlement) are performed by a third-party licensed Virtual Asset Service Provider. We are not the regulated entity. Any failure, regulatory action, or insolvency affecting the regulated service provider could affect your assets or access to services.

6.2 Fiat Conversion

Fiat currency conversion services are provided in conjunction with licensed banking and EMI partners. Exchange rates applied to fiat conversions may include a spread and are subject to market conditions. We do not guarantee any particular exchange rate.

6.3 Transaction Irreversibility

Blockchain transactions, once confirmed, are irreversible. You bear sole responsibility for verifying all transaction details — including recipient wallet addresses, amounts, and asset types — before confirming. We cannot reverse, recall, or compensate for transactions sent to incorrect addresses.

6.4 Service Availability

Access to Platform services may be suspended, restricted, or terminated at any time in accordance with our Terms of Service, applicable law, or the requirements of our regulated service partner. This includes suspension for compliance reasons, which may occur without prior notice.

7. Acknowledgment and Acceptance

By using the Platform, you confirm that:

  • You have read, understood, and accepted the risks described in this Disclosure in their entirety;
  • You understand that crypto-assets are highly speculative and you may lose your entire investment;
  • You are not relying on any advice, recommendation, or representation from us in making your investment decisions;
  • You have had the opportunity to seek and have (if you consider appropriate) obtained independent financial, legal, and tax advice;
  • You are of legal age and capacity in your jurisdiction to engage in crypto-asset transactions;
  • You are not accessing the Platform from a Restricted Jurisdiction;
  • You understand that regulatory changes may affect your ability to hold or transact crypto-assets; and
  • You accept sole responsibility for your investment decisions and any losses arising from your use of the Platform.
⚠ Important notice to users

THIS DISCLOSURE IS NOT EXHAUSTIVE. The risks described above are the principal risks known to us at the time of drafting. Other risks may exist that we have not identified. You should conduct your own due diligence and risk assessment before using the Platform or transacting in crypto-assets. If you do not understand or accept any risk described in this Disclosure, DO NOT USE THE PLATFORM.

8. Contact and Complaints

If you have any questions about this Risk Disclosure, please contact us at: support@speedyxchange.com