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1. General. Before you use the Services of or pay sFOX Pte. Ltd. (“sFOX Pte”, the “Company”, “we”, “our” or “us”) money or any digital payment tokens (“DPTs”), you should be aware of the following:
2. Informational Purposes Only. The information provided on all sFOX Site, platforms and communications is for information purposes only and is not to be construed as a recommendation or advice to any person in relation to any legal, tax, financial investment or any other matters. You should consult an attorney or other professional advisors to determine what may be best for your individual needs.
Any information provided should also not be regarded as an offer or invitation to purchase or subscribe to any capital markets products, and no part of it shall form the basis of or be relied upon in connection with any contract, commitment, or investment decision in relation thereto. In addition, sFOX Site, platforms or any of its Services shall not be used for the purpose of and does not constitute an offer or invitation to purchase or subscribe for any capital markets products in any jurisdiction or under any circumstances in which such offer or invitation is unlawful or unauthorised or to any person to whom it is unlawful to make such offer or invitation.
None of the information provided have been approved or endorsed by the Monetary Authority of Singapore (“MAS”) or any other regulator, whether in Singapore or overseas.
3. Compliance with Applicable Laws and Regulations. You represent that any fiat currencies or DPTs you transfer into your sFOX Account and wallets are not directly or indirectly derived from activities that may contravene applicable laws and regulations, whether in Singapore or overseas.
Accordingly, you represent and warrant that, to the best of your knowledge, you, any person controlling or controlled by you, any persons for whom you are acting as an agent or nominee in connection with this trading, and where you are a privately held entity, any person having a beneficial interest in you, are not a country, territory, individual or entity restricted or sanctioned by a national government or an international organisation authority.
Please be advised that sFOX Pte shall not accept any trading activities from you if you cannot make the representations set forth in the paragraphs above. In addition, if you cannot make these representations, sFOX Pte, at its sole and absolute discretion, may prohibit, terminate or suspend your trading activities and Accounts.
Should you become aware of any changes in the information set forth in the representations set out in the paragraphs above, you agree to promptly notify sFOX Pte and provide any relevant documents. sFOX Pte may be obliged legally to freeze your Account and prohibit any trading activities in compliance with regulatory requirements. In addition, sFOX Pte may be required to report such information and disclose your identity to the relevant authorities. Accordingly, you agree that sFOX Pte shall be entitled to (i) exercise its rights under Paragraphs 13 and 14 below; and (ii) report instances of fraudulent or criminal behaviour or suspicious transactions to the relevant authorities.
You agree that sFOX Pte, its affiliated companies and/or its representatives may disclose to one another, to any other service provider engaged by sFOX Pte, or to any regulatory body in any applicable jurisdiction information in relation to compliance with applicable laws and regulations concerning you and your associates, and any such disclosure shall not be treated as a breach of any restriction upon the disclosure of information imposed on such person by law or otherwise.
4. Funding Account. To fund your sFOX Account with fiat currencies, you shall transfer the fiat currencies to sFOX Pte’s designated bank account from a bank account that is in your name. The bank account must be established with a regulated bank, whether in Singapore or in a supported jurisdiction. sFOX Pte may, at any time, request additional information to verify whether you are the owner of the bank account. Your sFOX Account will show the transferred fiat currencies once sFOX Pte has received them. Fiat currencies in sFOX Account will not earn any interest.
5. Own Use. You may only use our Services and your sFOX Account for your own account and not on behalf of or for the account of any third party, and you may not intentionally or unintentionally provide any third party with access to your sFOX Account, except as expressly permitted in writing by sFOX Pte or in this Agreement. You are fully responsible for all activities that occurs under your sFOX Account.
6. Third-Party Access. If you grant express permission to an Appointed Third Party to access or connect to your sFOX Account(s), either through the Appointed Third Party’s product or service or through the sFOX Site, you acknowledge that granting permission to an Appointed Third Party to take specific actions on your behalf does not relieve you of any of your responsibilities under this Agreement. You are fully responsible for all acts or omissions of any Appointed Third Party with access to your sFOX Account(s) and any action of such Appointed Third Party shall be considered to be an action authorised by you. Further, you acknowledge and agree that you will not hold sFOX Pte responsible for, and will indemnify sFOX Pte from, any liability arising out of or related to any act or omission of any Appointed Third Party with access to your sFOX Account(s). Additionally, you should be aware that by virtue of such access, that the Appointed Third Party may access your transactional and other data, and/or may initiate transfers from your wallet(s).
sFOX Pte reserves the right to refuse access to any Appointed Third Parties for objectively justified and duly evidenced reasons relating to unauthorised or fraudulent access to your wallet(s), money laundering, terrorist financing, proliferation financing, fraud, or any other financial crime, and as required by applicable law. In such cases, unless sFOX Pte is prohibited by applicable law, we will inform you that that Appointed Third Party’s access has been denied and the reasons why. sFOX Pte will permit access again once it is satisfied that the reasons for refusing access no longer exist.
7. Permitted Account Use. Please note that you can only use your sFOX Account to buy and/or sell DPTs to and from sFOX Pte in accordance with this Agreement or to pay fees. Under no circumstances should you use your sFOX Account to transfer fiat money to other users or third parties outside of the sFOX platform, or for the purposes of purchase and sale of goods and services not offered by sFOX Pte. sFOX Pte is not responsible or liable for any losses that result from or are in connection with any attempts to use your Account in such prohibited manner, and it may choose to suspend or terminate your Account in such circumstances without prior notice.
8. Fees. You agree to be responsible for the prompt payment of all moneys payable by you in respect of any transactions effected for your sFOX Account or for the provision of any Services or otherwise payable by you under these Terms (including without limitation any such charges, fees or interests of any nature at such rate as sFOX Pte may determine or any other costs and expenses (including without limitation legal fees on a full indemnity basis)) as they become due regardless of any right of equity, set-off or counterclaim which you may have against sFOX Pte.
9. Unauthorised or Incorrect Transactions. Where a transaction is initiated from your Account using your credentials, we assume that you have authorised such transaction, unless you notify us otherwise.
If you believe that a transaction using your Account has been conducted that you have not authorised (an “Unauthorised Transaction”), or if you have reason to believe that a transaction using your Account has been incorrectly carried out or is not complete (an “Incorrect Transaction”), you must contact us as soon as possible at clientservices@sfox.com, no later than 3 months after the Unauthorised Transaction or Incorrect Transaction has occurred.
We recommend that you regularly check your Account balance and your transaction history to ensure any Unauthorised Transactions or Incorrect Transactions are identified and notified to us at the earliest possible opportunity.
10. Suspension, Restriction, and Cancellation of Services. sFOX Pte shall not be liable to you or any third party for losses arising from the termination, suspension or restriction of an account or access to the sFOX Pte platform and/or any of its Services in accordance with this Agreement.
The suspension or termination of an account shall not affect the payment of any fees due for past trades or transactions made on sFOX platform or via any of its Services.
Upon termination, you must provide sFOX Pte with all reasonable assistance to allow for the transfer of any DPTs back to you. You acknowledge that all fees and charges, including but not limited to bank charges and transaction fees, pertaining to the transfer of any DPTs or fiat currencies back to you due to a suspension, termination or cancellation shall be borne by you.
11. Investigation. You acknowledge and agree that sFOX Pte shall have the right to, in its sole and absolute discretion, commence investigations into your account and/or any transactions in any suspicious events, including but not limited to:
If sFOX Pte suspects that an Account has breached this Agreement and has commenced investigations, you acknowledge and agree that upon sFOX Pte’s request and within the time frame designated by sFOX Pte, you shall respond to any enquiries in writing and furnish any information and/or documents requested by sFOX Pte in connection with any investigation initiated. You acknowledge and agree that you shall neither impede or delay any investigation or proceeding conducted pursuant to this agreement, nor refuse to comply with any request made pursuant to this Agreement. You acknowledge and agree that sFOX Pte shall have the right to suspend and/or terminate or cancel your account if you fail to cooperate with the investigation within the date stipulated by sFOX Pte.
Following the conclusion of an investigation, sFOX Pte will, in its sole and absolute discretion, make a determination based upon the weight of the evidence. You acknowledge and agree that if the Account is determined to have committed a breach of this Agreement, sFOX Pte shall have the right to terminate your Account and take any and all actions pursuant to this Agreement and/or any applicable laws and regulations.
12. Lawful Use of Services. You represent and warrant to sFOX Pte at all times that you have informed yourself of any and all legal and regulatory requirements, restrictions, and prohibitions applicable to your use of sFOX Pte’s Services, and you would fully comply with all such requirements, restrictions, and prohibitions. These legal and regulatory requirements, restrictions and prohibitions would include any foreign exchange controls or restrictions, or tax consequences applicable to your use of the Services.
13. Liabilities for DPT Storing and Transfers. You are responsible for the storing of any DPTs in wallets maintained with sFOX Pte, and the transfer of any DPTs from/to wallets maintained with sFOX Pte to/from another wallet or trading platform. sFOX Pte shall not be liable for any losses resulting from the use of DPT wallets maintained by sFOX Pte, except where such losses arise from fraud by sFOX Pte itself. sFOX Pte shall also not be responsible or liable for any DPTs once you have transferred them from the sFOX Pte wallet to another wallet or DPT service provider. Additionally, it is under no obligation to verify a transfer address or identify whether a transfer may be the subject of a scam regardless of whether a scam is known or has been perpetrated before.
14. Wallet Verification. You shall be solely responsible for providing correct recipient information and ensuring the recipient wallet address is correct prior to submitting any DPT transfer requests. sFOX Pte shall not be liable for any losses that you may incur, whether directly or indirectly, because of providing incorrect information about the recipient, including but not limited to incorrect account name and/or wallet address. We strongly recommend you send a small amount of DPTs as a test to verify before transferring a significant amount of DPTs.
15. Supported DPTs. You should not attempt under any circumstances to use your DPT wallets maintained with sFOX Pte to store, send, request, or receive DPTs in any form that sFOX Pte does not support. sFOX Pte assumes no responsibility or liability in connection with any attempt to use your wallets for DPTs that sFOX Pte does not support or for a supported DPT sent to an incompatible DPT wallet address or via a network for which sFOX Pte does not provide support for that DPT. All such erroneously transmitted DPTs may be lost. You acknowledge and agree that sFOX Pte bears no responsibility and is not liable for any unsupported asset that is sent to a wallet associated with your sFOX Account. If you attempt to receive an unsupported DPT to a wallet associated with your sFOX Account, you may lose that DPT.
Unless specifically announced on the Site, or otherwise as set forth in this Agreement, supported DPTs excludes all other protocols and/or functionality which supplement or interact with the supported DPTs. This exclusion includes but is not limited to: metacoins, coloured coins, side chains, or other derivative, enhanced, or forked protocols, tokens, or coins or other functionality, such as staking, protocol governance, and/or any smart contract functionality, which may supplement or interact with a supported DPT (collectively, “Supplemental Protocols”). Do not use your sFOX Account to attempt to receive, request, send, store, or engage in any other type of transaction or functionality involving any such Supplemental Protocols, as sFOX Platform is not configured to detect, secure, or process these transactions and functionalities. Any attempted transactions in such items can result in loss of the item. sFOX Pte bears no liability for any losses related to Supplemental Protocols.
16. Third Party Payments. sFOX Pte has no control over, or liability for, the delivery, quality, safety, legality or any other aspect of any goods or services that you may purchase or receive from, or sell or transfer to, any third party (including other sFOX customers). sFOX Pte is not responsible for ensuring that a third-party buyer or a seller you transact with will complete the transaction or is authorised to do so. If you experience a problem with any goods or services purchased from, or sold to, any third party using DPTs in your sFOX Account, or if you have a dispute with such third party, you should resolve the dispute directly with that third party.
17. Disclaimer of Liability. You are aware that there may be high and speculative risks involved with investment in or trading of DPTs, and that all or parts of your investment may be lost. By signing up to use an account through sFOX Site or by using any of sFOX Services, you agree that you understand and accept the risks, particularly those outlined below, associated with the investment or trading of DPTs:
18. DPT Ownership. With respect to any DPTs you sell, transfer or deliver to sFOX, you represent and warrant that you are the lawful owner of such DPTs with good and marketable title thereto, and you have the absolute right to sell, assign, convey, transfer and deliver such DPTs. You further represent you are the lawful owner of any external wallet you may use to settle transactions hereunder, and that you have good title thereto and that such wallet is owned and operated solely for your benefit, and no person or entity, other than you, has any right, title or interest in any such wallet.
19. DPT Title. All DPTs held in your sFOX accounts are assets held by the sFOX Group for your benefit on a custodial basis.
sFOX Pte is under no obligation to issue any replacement DPTs in the event that any DPT, password or private key is lost, stolen, malfunctioning, destroyed or otherwise inaccessible.
20. Fiat Money Storage. Fiat money in your sFOX account is held by sFOX Pte in designated trust accounts opened with banks or other duly licensed financial institutions (each, a “Fiat Safeguarding Institution”). The fiat money is held by sFOX Pte on your behalf and is segregated and maintained separately from sFOX Pte’s own corporate fiat money. You can make a claim for your money held in the trust accounts even if sFOX Pte becomes insolvent. Any interest earned from the fiat money maintained in the trust accounts are payable to sFOX Pte and will not accrue to you. Your money in the trust accounts is commingled and pooled with fiat money received from other customers and is exposed to losses or shortfalls in the pooled money. You acknowledge that you may not be able to recover the full value of your money in the event of a shortfall in the pooled money or the insolvency of the Fiat Safeguarding Institution.
You confirm and agree that:
21. DPT Storage. sFOX Pte safeguards your DPTs on your behalf in designated trust accounts maintained by one or more members of the sFOX Group (each, a “DPT Safeguarding Institution”). sFOX Pte continues to maintain control and exercise governance over your DPTs. The DPT Safeguarding Institution will hold and record your DPTs in accordance with sFOX Pte’s instructions. The DPT Safeguarding Institution will provide sufficient information to sFOX Pte on a timely basis as sFOX Pte may reasonably require to comply with sFOX Pte’s record-keeping obligations under relevant laws and regulations. sFOX Pte will not permit any withdrawal of your assets from the trust accounts, except for delivery of your assets to sFOX Pte or to any other person upon receipt of sFOX Pte’s written instructions. The trust accounts are located outside Singapore, where the laws and practices may be different from the laws and practices in Singapore, which may affect your ability to recover your assets, such as delaying the recovery process.
22. Security of Customer Assets. sFOX Pte stores all customer assets in secure accounts. Private keys are strictly isolated and encrypted in secure, tamper-resistant hardware devices. All private key materials are not stored in memory or accessible in an unencrypted state. In addition, sFOX Pte has put in place a comprehensive set of network and cyber security measures, including restricted access to critical facilities, intrusion detection and prevention systems, firewalls, and regular vulnerability assessments to ensure the safety and integrity of customer assets at all times.
23. Risk Assessment. sFOX regularly reviews the risks that may threaten the achievement of its service commitments and system requirements related to the applicable trust services criteria set forth in TSP Section 100 – 2017 Trust Services Criteria for Security, Availability, Processing Integrity, Confidentiality and Privacy (AICPA, Trust Services Criteria). The risk management committee, which includes members of the security function, assesses security risks on an ongoing basis. This is done through regular management meetings with IT personnel, reviewing and acting upon security events logs, performing vulnerability assessments, and conducting a formal annual risk assessment in conjunction with company-wide risk assessments. sFOX has a process in place for evaluating vendor performance and compliance with contractual obligations. Vendor systems are subject to review each year as part of the vendor risk management process.
24. Insolvency. sFOX Custody Service is organized as a public trust company under Wyoming Statute §13 Chapter 5, under which sFOX is authorized to act as custodian to the assets deposited in such trust. In case sFOX becomes insolvent, the assets under custody in this public trust are segregated from sFOX´s assets and, therefore, not affected in case of insolvency.
25. All Trades are Final. Subject to Paragraph 26 below, all trades are final, and no customer shall have the right to reverse, cancel or change any trade marked as done, filled, complete or pending.
26. Halting of Trading. sFOX Pte may in its sole and absolute discretion, disable or suspend trading in any DPTs for any period due to whatever reason (including where there is a sudden and/or substantial movement in the market price of such DPTs). All orders placed, or trades entered during such period where trading has been halted by sFOX Pte pursuant to this Paragraph may be cancelled, reversed, modified, disregarded, or dealt with in such manner as sFOX Pte may deem fit in its sole and absolute discretion. Under no circumstances shall sFOX Pte be responsible or liable to you or any other person or entity for any direct or indirect losses (including loss of profits, business, or opportunities), damages or costs by reason of, or arising from, or because of sFOX Pte ‘s decision to carry out any of the above actions.
27. False Trading and Market Manipulation. You are strictly prohibited from engaging in any false trading and market manipulation, directly or indirectly, whether on sFOX platform or otherwise. You must not, knowingly or recklessly, do any thing, or cause any thing to be done, to create a false or misleading appearance of the market for, or the price of, any DPTs, or of active trading in any DPTs on sFOX platform. You must not maintain, inflate, depress, or cause fluctuations in, the market price of any DPTs (a) by means of any purchase or sale of any DPTs that does not involve a change in the beneficial ownership of the DPTs; or (b) by any fictitious transaction or device.
For clarity, it is presumed that your purpose, or one of your purposes, is to create a false or misleading appearance of active trading in DPTs on sFOX platform if you —
You must not effect, take part in, be concerned in or carry out, directly or indirectly, two or more transactions in DPTs, being transactions that have, or are likely to have, the effect of raising, lowering, maintaining or stabilising the price of DPTs on sFOX platform, with the intent to induce other persons to purchase or sell DPTs.
Market manipulation includes, without limitation, front-running, wash trading, spoofing, layering, pump-and-dump, cornering, and quote stuffing.
28. False or Misleading Statements. You are prohibited from making a statement, or disseminate information, that is false or misleading in a material particular and is likely to:
29. Fraudulent Conduct. You must not engage in any fraudulent conduct to induce or attempt to induce another person to deal or trade in DPTs. Examples of fraudulent conduct include:
30. Manipulative or Deceptive Conduct. You must not, directly or indirectly, in connection with the purchase, sale, or swap of any DPTs:
31. Insider Trading. All customers have equal real-time access to market data made available on sFOX platform. Employees of the sFOX Group are prohibited from using inside, corporate or proprietary information to trade DPTs, engaging in market manipulation, and are subject to its Personal Trading Policy and Standards of Conduct when conducting DPT trading.
Please read and understand this Risk Disclosure Statement (“Statement”) fully before you trade or invest in the DPTs offered. You should be aware that the risk of suffering losses in trading or holding DPTs can be substantial. The value of DPTs can go up or down and there can be a substantial risk that you would suffer losses by buying, selling, holding, or investing in DPTs. You should carefully consider whether trading or holding DPTs is suitable for you in light of your knowledge and experience in DPTs, financial and business matters, your trading and investment objectives, as well as your financial means and risk tolerance. Your continued use of sFOX’s platform and/or Services acts as an acceptance to undertake the risks associated. If you do not agree to undertake these risks, please stop using the Services.
The risks of trading, investing or holding DPTs include but are not limited to the following:
General
32. Disclaimer and Assumption of Risk. This Statement provides you with information about some of the risks associated with trading DPTs, and the use of other Services provided by sFOX Pte. Trading in DPTs involves significant risks for financial losses. You must make your own independent decision to access or use the Services and should seek any advice that you consider necessary or desirable (including financial and/or legal advice) from independent advisers. It is your sole responsibility to ensure that you understand all the relevant risks of trading DPTs, as well as analyse, evaluate and understand the terms, features and arrangements underlying DPTs, and carefully consider whether such trading is appropriate for you in light of your experience, objectives, financial resources, particular needs, risk appetite, and other relevant circumstances. You hereby assume all risk associated with using sFOX’ Services. Under no circumstances shall any of the persons entitled to indemnity under this Agreement be responsible or liable to you or any other person or entity for any direct or indirect losses (including loss of profits, business or opportunities), damages or costs by reason of, or arising from, or as a consequence of, your use or reliance on any of the information set out in this Statement.
33. No Endorsement. The Company’s decision to support the transfer, storage or trading of any DPTs through the Services does not indicate its approval or disapproval of the DPTs or the integrity, security or operation of the DPTs or their Underlying Technology. The risks associated with DPTs and trading DPTs apply notwithstanding the Company’s decision to support the DPTs.
34. No Tax Advice. sFOX Pte does not provide investment, tax, or legal advice of any nature and whilst we may provide information or express opinions from time to time, such information or opinions are not offered and should not be considered as tax advice or recommendations under any circumstance. You should decide to enter into any transaction only after having carefully reviewed and assessed your personal and financial conditions, and you should place no reliance on us to give advice or make recommendations. If you don’t have the required knowledge, sFOX Pte encourages you to consult tax and financial professionals before conducting any transaction.
35. Independent Advice. During your interactions with sFOX Pte, you may receive general information or explanations in connection with your transactions or the use of the Services. By using the Services, you acknowledge and agree that you are acting on your own behalf, and making independent decisions based on your own judgment and not in reliance of any statements or representations made by sFOX Pte or its representatives. Any comments, explanations or opinions shared by sFOX Pte or its representatives are provided solely for informational purposes. sFOX Pte and its representatives do not accept or assume any responsibility or liability for any actions you take based on that information. Such information or communications should not be interpreted or considered as investment advice or recommendations to enter into any transaction. If you have any questions about the risks associated with any transaction, trading or investment arrangements, or you are unsure or do not fully understand any aspects of this Agreement, you should consult independent professional advice.
36. Intermediary Communications. sFOX Pte has the right, but not the obligation, to verify the identity, legitimacy and authority of any person who gives instructions on your behalf through any sFOX Pte’s channel, platform or communication system. You acknowledge and accept that there is a risk of loss of your assets if sFOX Pte accepts and acts upon any instructions transmitted through such designated intermediary and/or any other channel, platform or communication service which appears to be from you but which are forged, fraudulent, unauthorised, erroneous or misleading (the “Intermediary Instructions”). Additionally, sFOX Pte shall not be responsible for any losses suffered by you arising our or in connection with any Intermediary Instructions, any miscommunication, breakdown in communication, delay, forgery, mutilation or duplication or transmission error.
Trading Risks
37. Financial Loss. Trading in DPTs entails significant risks of financial loss. You should not commit funds to trading in DPTs that you are not prepared to lose entirely. DPT markets can be volatile, and prices can fluctuate significantly, which could result in sudden and significant increases or decreases in the value of your assets at any given moment.
38. Loss of Market Confidence. DPT markets may be susceptible to irrational bubbles or loss of confidence, which can collapse due to many reasons. For example, confidence in DPTs may collapse due to unexpected changes imposed by software developers, a government crackdown, the creation of superior competing alternative DPTs, or a deflationary or inflationary spiral. Confidence may also collapse because of technical problems, for example, if the anonymity of the system is compromised, if money or DPTs are lost or stolen, or if hackers or governments are able to prevent transactions from settling. Negative consumer perception of specific DPTs may also adversely affect their value.
39. No Market. DPTs are underpinned by an autonomous and largely unregulated worldwide system of individuals and entities. Traders and market participants put their trust in a digital, decentralized and partially anonymous system that relies on peer-to-peer networking and cryptography to maintain its integrity. Thus, the value of DPTs may be derived from the continued willingness of market participants to exchange fiat currency for DPTs, which may result in the potential for the permanent and total loss of value of a particular DPT should the market for that DPT disappear.
40. Market Risk. Abnormal market conditions may occur in DPT markets, such as high market volatility, rapid price movements, influx of new participants, and others that may affect the normal use of sFOX Pte’s platform, the placing of orders or their execution, processing or settlement.
41. Market Abuse. DPT markets may be susceptible to unfair trading practices of market manipulation, misleading conduct and insider trading by nefarious actors. Unfair trading practices distort price discovery, inhibit market efficiency, and undermine the trust and confidence of market participants in the functioning and integrity of DPT markets. Unfair trading practices includes, but is not limited to, wash trading, spoofing, layering, pump-and-dump, cornering, and quote stuffing. Unfair trading practices of any kind, directly or indirectly, are strictly prohibited on the sFOX Site.
42. Liquidity Risk. DPT markets have varying degrees of liquidity. Some DPTs are very liquid while others may be thinly traded or illiquid, which means there is a scarcity of people who are willing to trade at any one time. Thinly traded or illiquid markets have the potential to increase the risk of loss because they can experience high volatility of prices, and market participants may find it impossible to liquidate market positions except at very unfavourable prices. sFOX Pte does not guarantee that the markets for any DPT will be active and liquid, or that you would be able to establish or liquidate positions in any DPTs when desired or at favourable prices. sFOX Pte does not guarantee any profit from trading or any other activity associated with its Services. sFOX Pte will not be obligated to purchase from you any DPTs, whether bought from sFOX Pte or otherwise.
43. Systemic Risk. Collapse of the entire financial system or DPT market can cause value of DPTs to drop significantly. Because everything in the financial system and DPT market is connected by interlinkages and interdependencies, failure of a single entity or a cluster of entities can cause a cascading failure, which could potentially lead to a bankrupt or crash in the entire financial system or DPT market.
44. Non-Legal Tender. Other than Central Bank Digital Currencies (“CBDC”), DPTs are generally not legal tender and are not backed by most central banks or governments. Accounts and value balances are not subject to any government-backed deposit insurance or any other government protections. There is no central bank or government regulator that can take corrective measures to protect the value of the DPT in a crisis, manage the demand or supply of DPTs, or smoothen any fluctuations in the price or value of DPTs.
Legal and Regulatory Risks
45. Nascent Regulation. Government regulation of DPTs is unsettled and rapidly evolving. The application and interpretation of existing laws and regulations are often largely untested and there is a lack of certainty as to how they will be applied. New laws and regulations may be promulgated in the future that apply to blockchain technology and DPTs, and related service providers, and no assurance can be given that any such changes will not adversely affect DPTs generally (including the use, transfer, exchange and value of DPTs) or the Services. It is not possible to predict how such changes would affect the price, liquidity and/or tradability of DPTs, or the use of any Services. Any DPT may decrease in value or lose all of its value due to changes in laws or regulations, or any action taken by governmental or regulatory authorities.
46. Negative Regulatory Impacts. Regulatory actions could negatively impact DPTs in various ways, including, for purposes of illustration only, through a determination (with retrospective or prospective effect) that DPTs are regulated financial instruments requiring registration or licensing in certain jurisdictions. sFOX Pte may have to suspend or limit the trading of certain DPTs or the use of certain Services or disallow users to trade DPTs or use any of the Services based on their citizenships, residences or locations if doing so is commercially unsustainable or is prohibited by any such regulatory actions. Any such regulatory actions could materially affect the price, liquidity and/or tradability of DPTs, or the use of any Services.
47. Regulatory Compliance. sFOX Pte has the sole and absolute discretion to suspend or reject the execution of any of your instructions and orders, suspend or cease support for any DPTs, or suspend or terminate your access to any accounts or Services, where any such action or inaction is, in the sole opinion of sFOX Pte, required or desirable to facilitate sFOX Pte’s compliance with applicable laws, or any order, directive or request from law enforcement or other governmental or regulatory authorities.
Technological Risks
48. Technical Complexity. The way the DPTs work, including its features, functions, characteristics, operation, use and other properties (“DPT Properties“) and the software, networks, protocols, systems, and other technology (including, if applicable, any blockchain) (“Underlying Technology“) can be very complex, highly technical and difficult to understand or evaluate. Because of this, trading DPT can create significant risks.
49. Material Operating Changes. sFOX Pte does not own or control the Underlying Technology which governs the operation of DPTs supported on its platform. Generally, such Underlying Technology are ‘open source’ and can be used, copied, modified or distributed by anyone.
Any DPT or Underlying Technology may change or otherwise cease to operate as expected due to a change made to the Underlying Technology, a change made using features or functions built into the Underlying Technology or a change resulting from an Attack (as defined below) (“Material Operating Changes”). These Material Operating Changes may include, without limitation, a “fork”, a “rollback”, or a “bootstrap” of a DPT or blockchain.
Such Material Operating Changes may materially affect the availability, value, functionality, and/or the name of the DPTs you store in your DPT wallet. This includes but is not limited to DPTs potentially being cancelled, lost or double spent, or otherwise losing all or most of their value. You acknowledge and accept the risks of Material Operating Changes to Underlying Technology and agree that sFOX Pte is not responsible for such changes and not liable for any loss of value you may experience because of such changes.
sFOX Pte does not control the timing and features of these Material Operating Changes. It is your responsibility to make yourself aware of any potential or implemented changes to any DPT or the Underlying Technology and you must carefully consider publicly available information and information that may be provided by sFOX Pte in determining whether to continue to transact in the affected DPT.
sFOX Pte will endeavour to provide you notice of its response to any Material Operating Change; however, such changes are outside of sFOX Pte’s control and may occur without notice to sFOX Pte. sFOX Pte reserves the right to suspend or cease to support the transfer, storage or trading of any DPTs at any time at sFOX Pte’s discretion in response to any Material Operating Change. sFOX Pte may, but is not obliged to, make changes to your account(s) in response to a Material Operating Change.
sFOX Pte has the sole and absolute discretion not to support any such Material Operating Changes, including but not limited to any related side chains or Underlying Technology that are based on a fork, enhancement, or derivative of a different DPT or Underlying Technology (“Derivative Protocols”) even if the Derivative Protocol is based on a DPT that is supported by sFOX Pte. sFOX Pte assumes no liability for any loss of value you may experience as a result of any such Material Operating Changes.
You may be unable to withdraw DPTs prior to sFOX Pte ceasing to support transfer of any such DPTs because of Material Operating Changes, resulting in the total loss of any such DPTs remaining in your account.
50. DPT Security. Any DPT and its Underlying Technology may be vulnerable to attacks on its security, integrity or operations (“Attacks“), including Attacks using computing power sufficient to overwhelm the normal operation of a blockchain or other Underlying Technology. sFOX Pte makes no representation, warranty or undertaking of any kind, express or implied, statutory or otherwise, regarding any Underlying Technology or blockchain functionality nor for any breach of security in the Underlying Technology or blockchain functionality.
Any DPTs may decrease in value or lose all of its value due to various factors including discovery of wrongful conduct, market manipulation, changes to Token Properties or perceived value of Token Properties, Attacks, suspension or cessation of support for a DPT by sFOX Pte or other exchanges or service providers, and other factors outside the control of sFOX Pte.
sFOX Pte assumes no responsibility for the operation of the DPTs or their Underlying Technology and does not guarantee the functionality or security of any DPTs or their Underlying Technology. You acknowledge and accept the risk of any changes or breach of security to the Underlying Technology of any DPTs stored in your DPT wallet.
51. Cybersecurity. There are various risks associated with utilising an Internet-based trading system (such as, sFOX Pte’s platform) including, but not limited to, the failure of hardware, software and Internet connections, the risk of malicious software introduction, the risk that third parties may obtain unauthorised access to information and/or assets (including your DPTs) stored on your behalf, cyber-attack, failure of Underlying Technology, blockchain or other networks, computer viruses, communication failures, disruptions, errors, distortions or delays you may experience when trading via the Services, howsoever caused, spyware, scareware, Trojan horses, worms or other malware that may affect your computer or other equipment, or any phishing, spoofing or other attack. Any such cybersecurity failures or breaches, whether involving sFOX Pte’s platform or third-party service providers (including, but not limited to, hardware or software providers, or cloud services providers) can have a negative impact on the price, liquidity and/or tradability of DPTs, or the use of any Services.
52. Infrastructure Security. You acknowledge and accept that sFOX Pte does not control Internet signal power, its reception or routing, configuration of your equipment or its reliability, and that sFOX Pte shall not be responsible for any communication failures, disruptions, errors, distortions or delays you may experience when trading via sFOX Pte’s platform, however caused.
Operational Risks
53. Accessibility. Due to the nature of DPTs, any technological difficulties experienced by sFOX Pte can prevent your access or use of the DPTs stored in your DPT wallet.
You may be prevented from sending an instruction, transaction request or email, or your instruction, transaction request or email may not be received by sFOX Pte and/or its platform, due to hardware, software or services issues (including, without limitation, Internet and other network connectivity issues).
Your instruction, transaction request or email to sFOX Pte and/or its platform may be lost, intercepted or altered during transmission.
54. Transaction Delays. Deposits, withdrawals and transfers may not be instantaneous, and sFOX Pte is not responsible for any price movements during that time and any losses incurred.
55. Network Support. sFOX Pte does not guarantee support of all networks for a DPT.
56. Account Usage. The entire balance displayed in your account(s) may not be tradeable, withdrawable or transferable due to precision limitations.
57. Distribution Support. sFOX Pte may not support dividend payouts or other distributions in relation to any or all of the DPTs.
58. Purchase Limitations. Your ability to purchase any DPTs through sFOX Pte’s platform is contingent on whether or not sFOX Pte is holding sufficient amount of the relevant DPTs in its proprietary wallets and/or sFOX Pte’s ability to acquire such DPTs before on-selling them to you. Therefore, sFOX Pte makes no promises regarding the timing or your ability to purchase any DPTs using its platform.
59. Maintenance. sFOX Pte may, from time to time, perform maintenance on its platform or in relation to any of the Services, routine or otherwise. This may lead to the platform or Services downtime and your inability to access the platform or any of the Services, potentially resulting in a delay or cancellation of any orders. sFOX Pte may also suspend or permanently cease support for one or more DPTs during network upgrades and/or network changes (e.g. mainnet switches).
60. Third-Party Transactions. sFOX Pte has no control over, and assumes no liability for, the delivery, quality, safety, legality or any other aspect of any DPTs that you may receive from or transfer to, any third party. If you experience any problem with any DPTs received from any third party, or if you have a dispute with such third party, you should resolve the dispute directly with that third party.
Unauthorised Access and Erroneous Transmission of DPTs
61. Unauthorised Access. Unauthorised third parties may access or use your account(s) and effect transactions without your knowledge or authorisation, whether by obtaining the password to your account(s), obtaining control over another device or account used by you in connection with any enhanced security measures enabled for your account(s), or by other methods. sFOX Pte will not be liable to you for any losses resulting from any of these kinds of unauthorised access.
62. Wrong Wallet Address. Any DPT may be lost forever if sent to the wrong address (including, without limitation, if the address is improperly formatted, contains errors, or is intended to be used for a different type of DPT). You further acknowledge and agree that (a) sFOX Pte does not guarantee the recovery of DPTs sent to incorrect addresses; (b) sFOX Pte is not obliged to assist with any form of DPT recovery; and (c) any assistance rendered by sFOX Pte to assist with the recovery of DPTs shall be considered by sFOX Pte on a case-by-case basis and at its sole and absolute discretion. Additional fees and recovery charges may also apply for attempts by sFOX Pte to try and recover DPTs for you.
No Deposit Insurance
63. No Insurance Coverage. There are no deposit insurance schemes that are applicable to the Services, and your account balances are uninsured unless you specifically obtain third party private insurance with respect to them. Your wallet balance is at risk of total loss, from, among other things, security breaches (whether in respect of your account(s) specifically or the Services generally), electronic, technological or systems failures (including recordkeeping errors), and insolvency or bankruptcy, or equivalent formal proceedings, in respect of sFOX Pte.
64. No Recourse. DPTs are generally not backed by any entity. This means that you have no right of recourse against any issuing entity in relation to any matter relating to your DPTs. It also means that neither sFOX Pte nor any other person has an obligation to redeem or buy back your DPTs.
65. Asset Segregation. The DPTs that you transfer to the address(es) associated with your account(s) may not be segregated from, and may be commingled with, DPTs of other customers; there is no trust or fiduciary relationship in respect of any DPTs or fiat money transferred to sFOX Pte or any other account balances. Your interest in any assets transferred to sFOX Pte or any other account balances may not be identifiable by separate physical documents or electronic records. However, sFOX Pte maintains clear accounting of your interest in the assets that have been operationally commingled, and is able to identify your interest in these commingled assets through prudent accounting and reconciliation practices. Customer accounts with commingled assets are properly titled to clearly reflect the assets belonging to and held for the benefit of the customers. In addition, total customer assets are also reconciled and verified periodically to ensure they are less than sFOX’s aggregate assets.
The risks described in this Risk Disclosure Statement may result in loss of DPTs, decrease in or loss of all value for DPTs, inability to access or transfer DPTs, inability to trade DPTs, inability to receive financial benefits available to other DPT holders, and other financial losses to you. The risks described are not exhaustive. There may be additional risks that sFOX Pte has not foreseen or identified in this Statement. You hereby acknowledge that sFOX Pte will have no responsibility or liability for, any such risks whether identified in this Risk Disclosure Statement or not.
Asset Safeguarding
66. Asset Storage Arrangements. sFOX Pte holds your DPT assets in two types of trust accounts – custodial accounts and omnibus accounts. The custodial accounts which store a lesser proportion of your assets enable you to have immediate access to your assets for trading, withdrawals and other transactional activities. Your assets in the custodial accounts are not commingled with the assets of other customers or the assets of sFOX Pte or the DPT Safeguarding Institutions.
Any excess portion of your DPT assets beyond the amount maintained in your individual custodial account are swept to the omnibus account. Your assets in the omnibus accounts are commingled with those of other customers of sFOX Pte and the DPT Safeguarding Institution, but are segregated at all times from the assets of sFOX Pte and the DPT Safeguarding Institution. Although your assets may be commingled with those of the other customers, sFOX maintains clear accounting of your interest in such assets through prudent accounting and reconciliation practices.
67. Overseas DPT Safeguarding Institution(s). sFOX Pte safeguards and custodies your DPT assets in one or more trust accounts opened with a DPT Safeguarding Institution located outside of Singapore. Although these arrangements may be updated from time to time, customers of sFOX Pte retain a beneficial ownership interest in the assets held with the DPT Safeguarding Institution at all times in all cases, which they can enforce in the event of sFOX Pte’s insolvency.
sFOX Pte currently uses SAFE Trust Company (“SAFE”), a public trust corporation incorporated and regulated under the laws of the State of Wyoming, as its DPT Safeguarding Institution. sFOX Pte’s agreement with SAFE is structured to afford certain protections to your assets under applicable laws of the United States in the event of SAFE’s insolvency such that, consistent with paragraph 18 of this Agreement, your assets would not be treated as sFOX Pte’s property, nor would they be subject to claims from its creditors. The use of DPT Safeguarding Institutions located outside Singapore carries a risk that the relevant laws and practices relating to trust accounts in the jurisdiction under which the DPT Safeguarding Institution is licensed, registered or authorised may change over time or differ from the laws and practices in Singapore. These differences may affect your ability to recover your assets deposited in the trust account in scenarios including the safeguarding person’s insolvency. For example, there may be a prolonged delay in the recovery process due to the need to obtain foreign regulatory approvals, there may be the need to undergo foreign courts processes before the assets can be returned, or the applicable insolvency laws may have changed during the intervening period.
Asset Losses, Restricted Usage and Order Handling
68. Asset Losses due to sFOX Pte’s Fraud or Negligence. If you have lost assets as a result of sFOX Pte’s fraud or negligence, please contact us immediately via clientservices@sfox.com. We will consider your case based on the information provided by you and sFOX Pte. The quantum of the offer of resolution, or any analogous compensation for your lost assets, will be capped at the value of the assets that were lost as a result of the disputed transaction(s). This compensation may be adjusted for any contributory negligence, act, or omission on your part.
sFOX Pte is not liable for any loss that you may sustain if you have been fraudulent or negligent, including where: (i) you have carried out any DPT transaction on the instructions of a third party (or have allowed a third party to remotely access or share your computer while logged in to your sFOX account); or (ii) your login credentials or API key were compromised.
69. Restricted Usage of Customer Assets. sFOX Pte does not hold your assets as collateral and will not otherwise sell, transfer, loan, hypothecate, or otherwise alienate your assets unless instructed by you or by a court of competent jurisdiction.
70. Order Handling and Execution. sFOX Pte handles and executes customer orders in a fair, orderly and timely manner. It does not receive any commission or other form of payment from other persons for routing customer orders to them. When comparable orders are received from different customers, sFOX Pte handles and executes the orders in accordance with the time of receipt.
Conflict of Interest
71. Affiliate or Related Party Services. sFOX Pte is part of the sFOX Group of companies that offers various other services and products (e.g. custody, derivatives, etc). Related party services may be integrated on the same interface that hosts the DPT exchange platform operated by sFOX Pte. In such instances, sFOX Pte may be perceived as having the motivation to potentially prioritise the interests of the wider sFOX Group over the interest of its customers, particularly where customers are not clearly informed about the other service being offered by a related party.
To address any perceived conflict of interest, sFOX Pte maintains its own independent governance and management structure with key officers not involved in the business or strategy for these related party services. This provides for functional independence between sFOX Pte’s management and the sFOX Group’s other business lines.
While we believe that any conflict of interests risks from the availability of affiliate or related party services are appropriately managed, there may be residual risks of a user perception of bias or internal unconscious bias. To promote transparency and retain customer trust, customers will be informed of the identity of the sFOX Group entity providing related party services so that they can make an informed choice on whether to use such services.
72. sFOX Group’s DPT Interest. sFOX Group entities may hold assets on their balance sheets or have a “Commercial Engagement” with the asset, its issuer, or an affiliated party in respect of an asset that sFOX Pte supports for trading.
The term “Commercial Engagement” is construed broadly to capture business activities such as financial engagements, business engagements (e.g., custody arrangements), or other similar engagements with a digital asset or an affiliated party. A Commercial Engagement may have begun prior to or after sFOX has supported the asset.
For a variety of reasons, sFOX Group entities may hold on their balance sheets the assets that sFOX Pte supports for trading. For example, we support a wide range of assets for custody for institutional customers of sFOX Group entities offering DPT custody services, providing flexibility to our custody customers beyond what sFOX Pte needs for our corporate holdings and trading operations.
As a result of the wider sFOX Group’s interests in these assets, sFOX Pte may be seen as being incentivised, by way of being part of the sFOX Group, to give favourable treatment or promote these assets over other assets. To manage these concerns, sFOX Pte applies the same independent evaluation to all assets prior to listing or support on the sFOX Pte platform, without inappropriate influence from the interests of the wider sFOX Group.
DPT Listing and Governance
73. Evaluation of DPTs for Listing. sFOX Pte evaluates DPTs for listing on its platform based on several factors to ensure that these DPTs and their uses are consistent with applicable regulatory standards as well as sFOX’s values and policies for trust and safety. These factors include:
74. Governance. The Board of Directors (‘Board”) reviews and approves all new coins prior to their listing. To prevent conflict of interest, the Board is independent from the personnel who make the initial listing recommendations. Additionally, sFOX Pte does not receive incentives for assets listed on its platform for trading.
75. Monitoring. sFOX Pte continuously monitors all DPTS on its platform for adherence to its listing standards. Periodic re-evaluation is also conducted with a frequency and level of scrutiny tailored to the particular DPT and trigger events where material changes have occurred (for example, hard forks, splits and attacks). Where we uncover information that materially change our understanding of a DPT listed, we will conduct further analysis to determine whether to continue listing the DPT..
76. Delisting. A DPT may be listed or delisted for many reasons, at sFOX Pte’s sole and exclusive decision, including its failure to meet sFOX listing standards. sFOX Pte will take reasonable commercial efforts to notify you 2 weeks before the delisting so that you can trade or sell the DPT. On the date of delisting, sFOX Pte will suspend trading for the DPT but you can continue to withdraw the delisted DPT from your account. In rare instances, sFOX Pte may need to suspend all support, including withdrawals, for a DPT and will notify affected customers of the final date to withdraw the affected DPT. Any remaining balance of the DPT in a customer’s account will automatically be liquidated to an equivalent value of another asset (e.g. USDC or BTC) which will be credited back to his/her account.
In exceptional circumstances where sFOX Pte needs to delist an asset immediately for good cause (for example, due to legal or regulatory reasons, smart contract security risks, etc), you may not receive advance notice. Measures taken by sFOX Pte and impact to the associated services will be communicated to you during the event and may differ depending on the circumstances.
