1. Purpose of this disclosure
This disclosure describes material risks associated with digital assets and ZEXO Services. It is not exhaustive and does not replace independent professional advice. By using a Service, you acknowledge that digital assets are speculative, may be unsuitable for you and can result in the loss of all value committed to a transaction or product.
You should use only Services you understand and only with assets you can afford to lose. The publication timestamp shown with this document is its effective date.
2. Price volatility and total loss
Digital-asset prices can change rapidly and without warning because of market sentiment, concentration, leverage, macroeconomic events, technology, issuer activity, regulation, security incidents or other factors. An asset may lose most or all of its value. Historical prices, yields and performance do not predict future results.
3. Liquidity and execution
There may be insufficient buyers, sellers or market depth to execute an order at the expected price or time. Spreads may widen, markets may be suspended and an order may execute partially or at several prices. Displayed prices and estimates may become stale during rapid market movement. Stop, limit or similar order types do not guarantee execution or limit loss.
4. Custody and access
Assets held through a platform or custody provider are exposed to operational, legal, cyber, insolvency and counterparty risks. Access may be delayed or restricted by security review, legal process, provider failure or an event affecting wallets or signing systems. The legal treatment of custodial digital assets may differ by jurisdiction and may not provide the protections associated with a bank deposit or traditional investment account.
If you transfer assets to a self-hosted wallet, you are responsible for the address, network, private keys and recovery material. Lost keys, an incorrect address or an incompatible network may cause irreversible loss.
5. Blockchain and network risk
Blockchain networks rely on software, validators, miners, governance participants and communication infrastructure that ZEXO does not control. Congestion, fee spikes, forks, reorganizations, attacks, validator penalties, governance decisions, software defects or network shutdowns may delay or invalidate transactions or change an asset’s functionality or value.
Required confirmations and supported networks may change. A transaction shown as pending is not final until the applicable network and ZEXO processing requirements are satisfied.
6. Token, issuer and stablecoin risk
A token may depend on an issuer, administrator, reserve manager, protocol or concentrated group. Disclosures may be incomplete or inaccurate. Rights associated with a token may be limited or unenforceable. A stablecoin may trade above or below its intended reference value, and reserve, redemption, banking, liquidity or regulatory events may cause a permanent loss of its peg.
7. Smart-contract and protocol risk
Smart contracts and decentralized protocols may contain design errors, coding defects, malicious functions, oracle failures, governance vulnerabilities or economic exploits. Transactions may be irreversible even when caused by a defect or attack. An audit does not eliminate these risks.
8. Staking risk
Staking and validator-related products may involve lock periods, delayed redemption, validator failure, slashing, protocol inflation, changing reward rates and tax consequences. Estimated or historical rewards are not guaranteed. The value of rewards and the staked asset may decline, and network rules may change while assets are locked.
9. Quantitative products and strategy risk
Quantitative strategies depend on models, assumptions, market data, execution, liquidity and operational controls. Models may fail in market conditions not represented in historical data. Backtests, projections and prior results may omit costs or adverse events and do not guarantee returns. Capacity, settlement and withdrawal conditions may limit access to assets during or after a strategy period.
10. Signals, information and automation risk
Trading signals, rankings, analytics and market information may be delayed, incomplete or incorrect and are not personalized advice. Following a signal does not ensure a profitable or timely trade. Automated actions can amplify loss when inputs, connectivity or configuration are wrong. You are responsible for reviewing every instruction and for monitoring your positions and account.
11. Platform-token, campaign and reward risk
Platform tokens, campaigns, levels and rewards may have limited utility, eligibility, liquidity or duration. Rules, opening status, supply, pricing methods, qualification and reward amounts may change prospectively. A reward or title does not represent equity, debt, employment, guaranteed income or a claim on ZEXO unless an express written instrument states otherwise.
12. Cybersecurity and fraud
Digital-asset users are frequent targets of phishing, impersonation, malware, account takeover, SIM swapping, fraudulent applications and address substitution. A transaction authorized with compromised credentials may be irreversible. Verify domains, applications, addresses and communications and never disclose passwords or one-time codes.
13. Operational and third-party risk
The Services depend on software, communications, cloud infrastructure, custody providers, wallet systems, banks, payment providers, data vendors and blockchain networks. Failure, maintenance, disaster, cyberattack, provider insolvency or events outside reasonable control may interrupt access, pricing, deposits, withdrawals or settlement.
14. Legal, regulatory and tax risk
Digital-asset laws and regulatory treatment are evolving and may change with limited notice. A change may restrict access, require additional verification, affect an asset’s legality or liquidity, impose reporting or withholding, or require ZEXO to suspend a product or transaction. Tax treatment varies and is your responsibility.
15. No deposit insurance or guaranteed return
Unless ZEXO expressly states otherwise in a legally binding product-specific disclosure, digital assets and product balances are not bank deposits, are not protected by deposit insurance and do not have a guaranteed principal or return. Any displayed annualized rate, target, estimate or reward is variable and may be zero.
16. Your responsibility
Before acting, assess your objectives, experience, financial circumstances, loss tolerance, liquidity needs and legal position. Review the current product rules, fees, limits, lock periods and confirmation screen. Diversification and risk controls may reduce some risks but cannot eliminate loss.
If you do not understand a Service or cannot bear a complete loss or delay in access, you should not use it. Questions about how a ZEXO feature works may be submitted through the official in-product support channel; support does not provide investment, legal or tax advice.