Digital asset risk disclosure

1. Purpose of this disclosure

This disclosure explains the principal risks of holding, receiving, transferring and converting digital assets through Nomos Pay. It forms part of our Terms of Service.

It is not a complete list of every risk. It is not advice. Nothing here is a recommendation to acquire, hold or dispose of any digital asset, and nothing here should be treated as a prediction about value.

You may lose some or all of the value involved. Only use digital asset services with value you can afford to lose entirely.

2. What digital assets are, and what they are not

Digital assets are digital representations of value recorded on a distributed ledger. They are not fiat currency and, in most jurisdictions, are not legal tender.

Balances in digital assets are not deposits. They are not covered by any deposit insurance scheme, investor compensation scheme or government guarantee, unless we state otherwise in writing for a specific product.

We make no statement about the legal classification of any digital asset. Whether a particular asset is treated as a security, a commodity, a currency, property or something else is a question of law that varies by jurisdiction and can change. You are responsible for understanding how the assets you hold are treated where you live.

3. Market and value risk

• Price volatility. Digital asset prices can move very sharply, in either direction, in short periods. Falls of a large percentage within a day are common in this asset class.
• Total loss. The value of a digital asset can fall to zero and may never recover.
• Liquidity risk. There may be no buyer at the price you want, or at any price. Liquidity can disappear quickly during stressed markets.
• Market risk. Prices are affected by speculation, sentiment, concentrated holders, media coverage, regulatory news and events with no connection to any underlying activity.
• Market integrity. Digital asset markets are less regulated than traditional markets and may be subject to manipulation, wash trading and misleading volume reporting.
• No guarantee of profit. Past performance tells you nothing about future performance. We do not guarantee any return, outcome or price.

4. Stablecoin risk

A stablecoin is designed to hold a stable value relative to a reference asset, usually a fiat currency. That design can fail.

• Depeg risk. A stablecoin can trade below its intended value, temporarily or permanently.
• Issuer risk. Stablecoins depend on an issuer. The issuer may become insolvent, may not hold the reserves it claims, may fail to honour redemptions, or may be subject to regulatory action.
• Reserve risk. Reserves may be held in assets that lose value, become illiquid, or are held with a failing institution.
• Freezing. Many stablecoin issuers can freeze or seize balances at specific addresses, including yours, without our involvement and without notice to us.
• Redemption. You may have no direct right to redeem a stablecoin with its issuer.

5. Custody and counterparty risk

Digital assets accessed through Nomos Pay are held through custody arrangements operated by [CUSTODY PROVIDER], and parts of the service depend on other providers including [APPROVED BANKING PARTNER] and [PAYMENT PARTNER].

• Custody risk. A custodian may suffer a security failure, an operational failure, insolvency or a loss of keys. In that event you may not recover your assets in full or at all.
• Counterparty risk. Any provider in the chain may fail to perform, may become insolvent, or may be subject to legal action that affects your assets.
• Commingling and shortfall. Where assets are held on a pooled basis, a shortfall may be shared among affected customers, subject to applicable law and to the terms of the custody arrangement.
• Banking and payment partner risk. Failure, suspension or withdrawal of a banking or payment partner may prevent you from funding your account or withdrawing fiat, potentially for an extended period.
• Concentration. Where a service depends on a single provider, its failure may interrupt that service entirely.

6. Blockchain and network risk

• Irreversibility. Once a blockchain transaction is confirmed it generally cannot be reversed, cancelled or recalled by anyone, including us.
• Wrong address. Assets sent to an incorrect address are usually unrecoverable. We do not undertake to recover them.
• Wrong network. Sending an asset on a network we do not support, or on the wrong network for that asset, can result in permanent loss. Always check the supported network list before a first transfer.
• Below minimum. Transfers below a published minimum may be unrecoverable.
• Congestion and delay. Networks can become congested, which delays confirmation and increases fees, sometimes substantially.
• Network fees. Fees are set by the network, not by us, and can rise sharply without warning.
• Forks and upgrades. A network may split or change its rules. This can affect the availability, value or usability of an asset, and we may be unable to support both sides of a fork.
• Consensus failure and attacks. A network may suffer an attack that reverses or censors transactions, including a majority attack.
• Smart contract risk. Assets that depend on smart contract code may be affected by bugs, exploits or upgrades to that code.
• Protocol obsolescence. A network may be abandoned, deprecated or lose the support needed to remain usable.

7. Security, fraud and credential risk

• Credential risk. If you lose control of your credentials, second factor or device, someone else may be able to move value out of your account. Transfers made this way are usually irreversible.
• Phishing and impersonation. Cloned websites, fake support accounts and convincing messages are common in this industry. We will never ask for your password, a two-factor code or a recovery phrase, and we will never ask you to move funds to a "safe" address. See our approved communication channels page.
• Cybersecurity. Any platform, custodian or network can be the target of an attack. No system is completely secure.
• Social engineering and investment fraud. Be sceptical of anyone who contacts you with an opportunity, particularly if they create urgency or ask you to move funds off the platform.
• Third-party applications. Connecting your account or wallet to an external application can expose you to loss.

8. Operational and service risk

• Availability. The platform may be unavailable due to maintenance, an incident, or a failure at a provider or network. You may be unable to transact during that period, including during price movements.
• Delays. Verification, screening, compliance review, partner processing and network conditions can each delay a transaction. We do not guarantee processing times.
• Withdrawal restrictions. We may need to limit, suspend or delay withdrawals for legal, regulatory, security or risk reasons, or where a provider or network prevents them.
• Suspension and delisting. We may stop supporting an asset or network at any time. Where we do, you may be required to withdraw within a stated period, and the asset may be illiquid or unsupported elsewhere.
• Pricing and quotes. Rates move continuously. A quote is valid only for the short period shown, and the rate you receive may differ from a price you have seen elsewhere.
• Errors. Systems and people can make errors. Where an error occurs we will try to correct it, and we may reverse an entry made in error.

9. Regulatory, sanctions and tax risk

• Regulatory change. The law applying to digital assets is developing quickly and can change with little notice. A change may restrict, suspend or end the availability of a service, an asset or a network, including in your jurisdiction.
• Registration is not approval. Any registration we hold means we are subject to obligations. It is not an endorsement, an approval of our services, or a guarantee of any outcome.
• Sanctions. Screening may result in a transaction being delayed, blocked, frozen or reported. Assets connected to a sanctioned person, address or jurisdiction may be frozen and may not be returned to you.
• Geographic restriction. Services are not available everywhere. Availability may be withdrawn in your jurisdiction, and you must not attempt to conceal your location.
• Tax. Acquiring, holding, converting, transferring or disposing of digital assets may create tax obligations. You are responsible for determining, reporting and paying your own tax. We do not provide tax advice.
• Reporting. We may be required to report information about you and your transactions to regulators and tax authorities.

10. What we do not do

• We do not provide investment, legal, tax or accounting advice, and nothing in the services is a personal recommendation.
• We do not act as your fiduciary, adviser or agent, and we owe you no duty to consider whether a transaction is suitable for you.
• We do not assess whether a digital asset is appropriate for your circumstances, objectives or risk tolerance.
• We do not guarantee the value, liquidity, availability or continued support of any digital asset.
• We do not undertake to recover assets sent in error, sent to a wrong address, or sent on an unsupported network.

11. Your responsibility and acknowledgement

You are responsible for your own decisions. Before using a digital asset service you should understand the asset, the network, the fees and the risks, and you should consider obtaining independent professional advice.

By using a digital asset service through Nomos Pay you acknowledge that you have read and understood this disclosure, that you accept the risks described in it, that you are using value you can afford to lose, and that you are not relying on us for advice.

If you do not understand a risk described here, do not proceed. Ask us at [SUPPORT EMAIL], or take independent professional advice first.

Entity and contact details

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