Last Updated: March 1, 2024.
General
Risk Warning Before you use the Services of or pay sFOX Pte. Ltd. (“sFOX Pte”), you should be aware of the following:
Although sFOX Pte has currently been granted an exemption from holding a license for providing digital payment token (“DPT”) services in Singapore, this does not mean that you will be able to recover all the money or DPTs you have paid to sFOX Pte if sFOX Pte’s business fails.
You should not transact in the DPT if you are not familiar with this DPT. This includes how the DPT is created, and how the DPT you intend to transact is transferred or held by sFOX Pte.
You should be aware that the value of DPTs may fluctuate greatly. You should buy DPTs only if you are prepared to accept the risk of losing all of the money you put into such tokens.
You should be aware that sFOX Pte may offer services related to DPTs which are promoted as having a stable value, commonly known as “stablecoin”.
Qualified Investors Only.Contents on all sFOX Site, platforms and communications is permitted only for the use of persons in Singapore who are “accredited investors”, “institutional investors” or “expert investors”, each within the meaning provided in the Singapore Securities and Futures Act (Cap. 289). The products and services described therein are available to such categories of persons only.
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 prospective investor 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.
Third Party Providers for Custody Services. sFOX does not work with external third-party providers in connection with our Custody Services, these services are provided by sFOX´s affiliate SAFE Trust Company. All our devices and related technology are located within the United States and remain compliant with all applicable laws, rules and regulations.
Security of Client’s Assets. sFOX has developed a robust and secure proprietary custody solution, honed over seven years of successful operation across our global footprint, that meets and, in some aspects, exceeds the safety typically associated with cold storage. Our proprietary custody solution provides sFOX with a secure, tamper-resistant hardware device in which we can store cryptographic key material. All private key material is encrypted within our hardware and is never stored in memory or accessible in an unencrypted state. This strategy, combined with our state-of-the-art network security, ensures the safety, security, and integrity of our clients’ assets at all times, without the need for reliance on cold storage. sFOX´s unique setup has proven to be resilient and secure; we have maintained this system with no security incidents across billions in processed transactions over our seven years of operation.
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 TPS 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.
Storage of Client’s Assets. sFOX utilizes unique deposit addresses for each Client’s deposit, which means that each Client will keep at all times ownership of its own assets. With respect to Custody Services, sFOX utilizes its own proprietary custody solution for storing Client’ assets and keeping them segregated from sFOX’s assets, which will protect Client ́s deposits in the event of sFOX insolvency.
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.
Use of Service
Lawfulness of 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.
You are responsible for the withdrawals or transfer from, or storing in, of any DPTs in the sFOX Pte wallet to another wallet or trading platform and sFOX Pte will not be responsible or liable for any DPTs once you have withdrawn or transferred them from the sFOX Pte wallet to another wallet or payment service provider.
You are solely responsible for ensuring the recipient wallet address is correct prior to submitting any withdrawal or transfer requests.
You bear all risk when withdrawing or transferring out of, or storing any DPTs in, sFOX Pte wallet, especially when withdrawing or transferring to an overseas-based provider. sFOX Pte is under no obligation to verify a withdrawal or transfer address or identify whether a withdrawal or transfer may be the subject of a scam regardless of whether a scam is known or has been perpetrated before.
sFOX Pte shall not be liable for any losses resulting from the use of the sFOX Pte wallet except where such losses arise from fraud by sFOX Pte.
Upon receiving your request for transfers of DPTs or fiat currencies, you acknowledge and grant sFOX Pte the right and full discretion to utilize your DPTs or fiat currencies for the transfers. sFOX Pte reserves the sole and absolute discretion to reject any transfer requests without providing any reasons.
You shall be solely responsible for providing the correct information about the recipient. sFOX Pte shall not be liable for any losses that you may incur, whether directly or indirectly, as a result of providing incorrect information about the recipient, including but not limited to incorrect account name and/or wallet address.
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 these Terms.
The suspension or termination of an account shall not affect the payment of any fees due for past trades or transactions made on sFOX Pte 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.
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.
You should not transact in DPTs if you are not familiar with DPTs. Transacting in DPTs may not be suitable for you if you are not familiar with the technology on which DPTs are based.
You should be aware that the value of DPTs may fluctuate greatly. You should buy DPTs only if you are prepared to accept the risk of losing all of the fiat currencies put into such DPTs.
Due to significant price fluctuations, you may increase or lose value in your DPTs at any given moment. DPTs may be subject to large swings in value and may even become worthless. There is an inherent risk that losses will occur as a result of buying, selling, trading, converting, transferring or holding DPTs.
DPTs may not be backed by governments or other legal entities, or by commodities such as gold or silver. There is no central bank that can take corrective measures to protect the value of DPTs in a crisis.
sFOX Pte does not warrant or guarantee that a particular DPT will be available on its platform or any of the Services provided by sFOX Pte.
sFOX Pte may, at its sole and absolute discretion and in accordance with applicable laws and regulations, decides to stop offering support for particular DPTs, exchanges or transfers of particular DPTs on its platform at any time for any reason. sFOX Pte shall make reasonable endeavours to notify you if sFOX Pte ceases to provide such support in relation to particular DPTs, and you will be provided with notice prior to the stop trading decision being made effective. You will be given the option to move your affected DPTs to another platform. If you fail to move your affected DPTs to another platform at the end of the notice period, sFOX Pte may, at its sole and absolute discretion, take such action as it considers necessary, including but not limited to, forcing redemptions or liquidations of the affected DPTs.
Notwithstanding Paragraph 17(f) above, if sFOX Pte reasonably determines that an extreme market event is occurring in relation to a DPT or multiple DPTs offered on its platform, or is required to comply with any applicable laws or regulations, you agree that sFOX Pte may take such actions as it considers necessary, in accordance with applicable laws or regulations, to respond to such extreme market event by immediately suspending or terminating some of its Services, immediately removing or de-listing a DPT from its platform, and/or forcing redemptions or liquidations of certain DPTs.
DPTs are susceptible to irrational bubbles or loss of confidence, which could cause demand to fall rapidly relative to supply. For example, confidence loss can be due to unexpected changes imposed by software developers, a government crackdown, market manipulation, creation of superior competing alternative DPTs, or security of the system being compromised. sFOX Pte shall not be liable for any losses incurred by you as a result of technical failures, hacks, government intervention, unfair market practices or any other issues that negatively impact the underlying blockchain or network of a DPT on sFOX Pte platform.
sFOX Site, platforms, and communications may contain forward-looking statements that involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expected, expressed or implied by these forward-looking statements. Past performance is not indicative of future results. Undue reliance must therefore not be placed on these statements. sFOX Pte does not represent or warrant that actual future results or performance will be as discussed in these statements. sFOX Pte disclaims any responsibility to update any of these forward-looking statements or public announce any revisions to these forward-looking statements to reflect future developments, events or circumstances.
The delivery of sFOX Site and platforms in certain jurisdictions may be restricted or prohibited by law in such jurisdictions. You must familiarize yourself and observe and comply with any such prohibitions and/or restrictions. You should seek professional advice if in doubt to ensure compliance with all applicable laws and regulations.
You acknowledge and agree that all information provided to sFOX Pte may be shared between sFOX Pte and its subsidiaries, affiliates and associated companies.
Account
To fund your 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 country or jurisdiction. sFOX Pte may, at any time, request additional information to verify whether you are the owner of the bank account.
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:
sFOX Pte reasonably believes that this is required in order to protect sFOX Pte’s reputation;
sFOX Pte is of the opinion that it is required to do so by applicable law, regulation or any court or other authority which sFOX Pte may be subject to in any jurisdiction;
sFOX Pte suspects that you are acting in breach of any of these Terms;
sFOX Pte has concerns that a transaction is erroneous (including where the transaction has been erroneously made due to technical issues or where there was a pricing error), that the security of your account is compromised, or if there is unusual activity in your account;
sFOX Pte suspects your account is being used for illegal, fraudulent or unauthorized purposes and/or activities;
sFOX Pte reasonably suspects or discovers that you are engaged in, or your transaction involves, money laundering, terrorist financing, fraud, any other financial crime, or a prohibited business;
Your account is subject to any pending litigation, investigation, or government proceeding;
Your account has been inactive (that is, no activities or active positions) for more than ninety (90) days;
sFOX Pte perceives that it will encounter a heightened risk of legal or regulatory non-compliance associated with your account should sFOX Pte continues to offer you access to its platform or Services;
You take any action with the purpose of circumventing sFOX Pte’s controls; and
sFOX Pte perceives that you have misused sFOX Pte platform in a manner beyond the scope of sFOX Pte platform’s intended purpose.
If sFOX Pte suspects that an account has breached these Terms 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 these Terms, 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.
Anti-Money Laundering and Countering the Financing of Terrorism (“AML/CFT”)
You represent that any fiat currencies or DPTs you transfer into your sFOX Pte wallets are not directly or indirectly derived from activities that may contravene laws and regulations in Singapore, as well as laws and regulations in relevant jurisdictions.
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 named on a restricted list by the relevant regulatory authority in Singapore or such other jurisdiction.
Please be advised that sFOX Pte shall not accept any trading activities from you if you cannot make the representations set forth in Paragraphs 20 and 21 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.
You agree to notify sFOX Pte promptly should you become aware of any changes in the information set forth in the representations set out in Paragraphs 20 and 21 above. You are advised that, by law, sFOX Pte may be obliged to freeze your account by prohibiting any trading activities in compliance with regulatory requirements, and sFOX Pte may also be required to report such actions and to disclose your identity to the relevant authorities. In particular, you agree that sFOX Pte shall be entitled to (i) exercise its rights under Paragraphs 16 and 19 above; and (ii) report instances of fraudulent or criminal behaviour or suspicious transactions to the relevant authorities.
You agree to promptly provide any additional documents sFOX Pte may request in the future to the extent that sFOX Pte determines necessary to comply with applicable AML/CFT policies, laws and regulations. You acknowledge and consent to the disclosure by sFOX Pte upon request in connection with money laundering, terrorism financing and similar matters in Singapore and such other jurisdictions.
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 any information 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.
Safeguarding
Third Party Providers for Custody Services. sFOX does not work with external third-party providers in connection with our Custody Services, these services are provided by sFOX´s affiliate SAFE Trust Company. All our devices and related technology are located within the United States and remain compliant with all applicable laws, rules and regulations.
Security of Client’s Assets. sFOX has developed a robust and secure proprietary custody solution, honed over seven years of successful operation across our global footprint, that meets and, in some aspects, exceeds the safety typically associated with cold storage. Our proprietary custody solution provides sFOX with a secure, tamper-resistant hardware device in which we can store cryptographic key material. All private key material is encrypted within our hardware and is never stored in memory or accessible in an unencrypted state. This strategy, combined with our state-of-the-art network security, ensures the safety, security, and integrity of our clients’ assets at all times, without the need for reliance on cold storage. sFOX´s unique setup has proven to be resilient and secure; we have maintained this system with no security incidents across billions in processed transactions over our seven years of operation.
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 TPS 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.
Storage of Client’s Assets. sFOX utilizes unique deposit addresses for each Client’s deposit, which means that each Client will keep at all times ownership of its own assets. With respect to Custody Services, sFOX utilizes its own proprietary custody solution for storing Client’ assets and keeping them segregated from sFOX’s assets, which will protect Client ́s deposits in the event of sFOX insolvency.
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.
Market Integrity
All trades are final. Subject to Paragraph 33 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.
Reversal, cancellation, modification and/or disregard of trades. sFOX Pte may, in its sole and absolute discretion without prior notice to you or any other customers, reverse, cancel, modify and/or disregard any trade under any circumstance and for whatever reason or no reason whatsoever, including where:
sFOX Pte is compelled to do so by any applicable law, including where sFOX Pte is required to suspend or terminate a customer’s account;
Due to any technical error, one or more trades do not occur as envisaged by sFOX Pte;
An order has been placed, and/or a trade has been entered into, by any customer who, in sFOX Pte’s sole opinion, has engaged in abusive use of sFOX Pte’s platform and/or Services, including any attempts at market manipulation;
An order has been placed, and/or a trade has been entered into, by you which involves an obvious error with respect to price, quantity, or other parameters (“Clearly Erroneous Trade“). In making a determination whether a trade is a Clearly Erroneous Trade, sFOX Pte will take into account the circumstances at the time of the trade, the need to preserve the integrity of the market, sFOX Pte’s platform and/or Services, and the need to maintain a fair and orderly marketplace. You agree and understand that if sFOX Pte determines a trade to be a Clearly Erroneous Trade, sFOX Pte may declare it null and void, in whole or in part, even if you do not agree to cancel or modify it; and/or
For technical reasons or to maintain the proper functioning of sFOX Pte’s platform and/or provision of Services, it would be, in sFOX Pte’s sole opinion, necessary or desirable to do so.
sFOX Pte may in its sole and absolute discretion, disable or suspend trading in any DPTs for any period of time due to whatever reason (including where there is a sudden and/or substantial movement in the market price of such DPTs) or no reason whatsoever. Any and all orders placed, or trades entered into during such period where trading has been halted by sFOX Pte pursuant to this Paragraph 33 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 or any of its representatives 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, sFOX Pte ‘s decision to carry out any of the above actions.
False Trading and Market Manipulation Prohibited. Customers are strictly prohibited from engaging in any false trading or market manipulation, directly or indirectly, regardless of whether such market manipulation is carried out on sFOX Pte’s Platform or otherwise. Market manipulation is any action(s) taken or procured to be taken, or any course of conduct, by any market participant or a person acting in concert with a participant(s) which is intended to, or does, or is likely to:
Create a false impression to deceive or mislead other market participants of active trading in any DPTs on the platform, or with respect to the market for, or the price of, any DPTs traded on the platform; or
Artificially control or manipulate the price or trading volume of any DPT, including maintaining, inflating, depressing or causing fluctuations in the market price of any DPT.
Market manipulation includes wash trading, spoofing, layering, pump-and-dump, cornering, and quote stuffing.
False or Misleading Statements. Customers are prohibited from making false or misleading statements or disseminating any information, document or material that is false or misleading in a material particular and which is intended to, or does, or is likely to (a) induce other persons to purchase, sell, swap, or enter into trades in relation to, any DPTs, or (b) have the effect (whether significant or otherwise) of raising, lowering, maintaining, stabilizing or causing fluctuations in the price of any DPTs.
Fraudulent Conduct. Customers are prohibited from engaging in any fraudulent conduct to induce or attempt to induce another person to deal or trade in DPTs. Examples of fraudulent conduct include:
Making or publishing any statement, promise or forecast that the customer knows or ought reasonably to have known to be misleading, false or deceptive;
Dishonest concealment of material facts;
Recklessly making or publishing of any statement, promise or forecast that is misleading, false, or deceptive; and
Recording or storing in, or by means of, any mechanical, electronic, or other device information that the User knows is false or misleading.
Manipulative or Deceptive Conduct. Customers are prohibited from engaging in any manipulative or deceptive conduct in connection with the purchase, sale, or swap of, or trade in, any DPT. Examples of manipulative or deceptive conduct include:
Employing any device, scheme or artifice to defraud;
Engaging in an act, practice, business or course of conduct which operates, or is intended to operate, or is likely to operate, as a fraud or deception;
Marking any statement the customer knows to be false or misleading; and
Omitting to state a material fact in order to make the statements made, in the light of the circumstances under which they were made, not false or misleading.
Risk Disclosure Statement
Please read and fully understand this Risk Disclosure Statement (“Statement”). You should be aware that the risk of suffering losses in trading or holding Digital Payment Tokens (“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 financial condition. Your continued use of sFOX’s platform and/or services hereinafter collectively referred to as “Services”) acts as an acceptance to undertake the risks associated. If you do not agree to undertake these risks, please stop using the Services.
Risk Disclosures
This Risk Disclosure Statement provides you with information about some of the risks associated with trading DPTs, and the use of other services provided by sFOX Pte. The information presented in this Risk Disclosure Statement is not comprehensive and does not reflect all of the risks (or other important factors) you should consider before using sFOX Pte’s platforms and/or services (hereinafter collectively referred to as “Services”). Trading in DPTs involves significant risks and potential 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 analyze, 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. Under no circumstances shall any of the Indemnified Persons under sFOX Pte’s Terms of Service 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 Risk Disclosure Statement.
The features, functions, characteristics, operation, use and other properties of any DPTs (“DPT Properties“) and the software, networks, protocols, systems, and other technology (including, if applicable, any blockchain) (“Underlying Technology“) used to administer, create, issue, transfer, cancel, use or transact in any DPTs may be complex, technical or difficult to understand or evaluate. Such DPT Properties and Underlying Technology create significant risks when trading Digital Tokens.
sFOX Pte’s decision to support the transfer, storage or trading of any particular DPT through the Services does not indicate sFOX Pte’s approval or disapproval of the DPT or the integrity, security or operation of the DPT or its Underlying Technology. The risks associated with DPTs and trading DPTs apply notwithstanding Sfox Pte decision to support a particular DPT.
Trading Risks
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. You should assess whether your financial situation and risk tolerance is suitable for buying, selling or trading DPTs. You accept and agree that you are solely responsible for any decision to buy, sell, trade or otherwise hold or deal with DPTs. You should be aware that the risk of loss in trading or holding DPTs can be substantial.
DPT markets may be susceptible to irrational (or rational) bubbles or loss of confidence, which can collapse due to many reasons. For example, confidence in DPTs may collapse as a result of unexpected changes imposed by software developers or others, 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 negatively affect their value.
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.
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.
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.
sFOX Pte makes no representations, warranties or undertakings on whether any DPTs will always be available to trade on its platform, and/or be supported by sFOX Pte. sFOX Pte will not be liable for any price variation or any loss of value due to market volatility, unfair trading practices, market or technology disruptions, delays or any other matters outside of its control. Any DPT is subject to delisting in the sole and absolute discretion of sFOX Pte in accordance with the Terms of Service.
Liquidity Risks
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 sFOX Pte’s Services. sFOX Pte will not be obligated to purchase from you any DPTs, whether bought from sFOX Pte or otherwise.
Other than Central Bank Digital Currencies (“CBDC”), DPTs are not considered legal tender and are not backed by any central bank or government. 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
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.
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.
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.
Risks Arising from Changes to DPTs or Underlying Technology
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 as a result 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 or not 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. Other exchanges and service providers may or may not do the same. 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.Other exchanges or service providers may or may not do the same. sFOX Pte will not be liable 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 as a result of Material Operating Changes, resulting in the total loss of any such DPTs remaining in your account.
DPT Security Risks
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.
Platform’s Cybersecurity Risks
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.
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.
Platform’s Operational Risks
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.
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.
sFOX Pte does not guarantee support of all networks for a DPT.
The entire balance displayed in your account(s) may not be tradeable, withdrawable or transferable due to precision limitations.
sFOX Pte may not support dividend payouts or other distributions in relation to any or all of the DPTs.
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.
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).
Unauthorised Access and Erroneous Transmission of DPTs
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.
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.
Third-Party Risks
There is no assurance that any person or business who currently accepts DPTs as payment will continue to do so in the future.
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.
No Deposit Insurance
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.
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.
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.
Risks related to Communications with sFOX Pte
During your communications with sFOX Pte, sFOX Pte may provide you with information or explanations in relation to transactions. In using the Services, you agree and understand that you are acting for your own account and you make your own judgment in relation to transactions and their suitability and not in reliance of any statements or representations by sFOX Pte. If sFOX Pte or its representatives makes any suggestions or provides any information, explanations or expresses any views in relation to any transactions, these are purely for information purposes only and neither sFOX Pte nor its representatives assumes any responsibility for any transactions made and you should not rely on or consider any such suggestions, information, explanations or views expressed as investment advice or a recommendation to enter into any transaction. If you have any doubts about the risks involved in any transaction, you should seek independent legal, financial, investing, accounting, tax and other professional advice.
sFOX Pte is entitled (but not obliged) to verify and be satisfied with respect to the identity of the person purporting to give instructions through a designated chat group. However, there is a risk that you may suffer losses arising from or in connection with (a) sFOX Pte accepting and acting on any instructions over a designated chat group and/or any other channel, platform or communication service which appears to us to be from you and which appears to sFOX Pte to be from you and which turns out to have been forged, fraudulent or unauthorised and/or (b) any miscommunication, breakdown in communication, delay, forgery, mutilation or duplication in connection with the transmission of any instructions to sFOX Pte.
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.
