This disclosure is being finalized. The risks below are the principal ones we have identified. The final wording, and any disclosures required in specific jurisdictions, are still being confirmed with legal counsel.
Using stablecoin and crypto-asset services involves risk. Businesses considering the Service should understand the following before proceeding.
Regulatory risk
- Laws and regulations covering stablecoins and crypto-assets are still developing in many countries and can change at short notice.
- If the law or a regulator’s position changes, we may have to restrict, suspend or stop offering the Service in a particular country or territory.
- We may add or change identity checks, transaction limits and other controls in order to meet regulatory requirements.
Stablecoin risk
- We do not issue our own stablecoin. The Service uses existing stablecoins issued by third parties.
- Stablecoins are designed to hold a stable value against a reference currency, but that peg is not guaranteed and may not hold.
- The value of a stablecoin may fall, or it may become impossible to redeem, if its issuer suffers a loss of confidence, its reserves are impaired, or redemptions are suspended.
- An issuer or a competent authority may freeze specific addresses.
Market and liquidity risk
- Conversion rates between fiat currency and stablecoins fluctuate.
- During market disruption, the liquidity needed to complete a conversion may be unavailable, and conversion may be delayed or impossible.
- We may suspend conversion during periods of severe market disruption (see our Terms of Service).
Technology risk
- Blockchain transfers are generally irreversible. Funds may be lost if a destination wallet address is incorrect.
- Network outages, congestion, forks or protocol changes may delay settlement or prevent it entirely.
- Software defects, cyber attacks or failures in key management may result in loss of funds.
Custody risk
- Stablecoins are held and transferred through a third-party custody provider.
- Insolvency, suspension of business or a security breach at that provider may delay transfers or result in loss of assets.
Operational risk
- Failures or policy changes at banks, collection partners or other providers may delay the receipt of deposits or the delivery of settlement.
- Compliance review may cause a transaction to be held, declined or reversed.
- Deposits where the remitter’s name does not match the registered End User are held for manual review, which takes additional time.
Counterparty risk
- The Service depends on several third parties, including banks, collection partners, the custody provider and stablecoin issuers.
- Default or suspension of business by any of them affects our ability to provide the Service.
Important note
- This disclosure describes the principal risks we have identified. It is not a complete list of every risk involved.
- Nothing on this page is investment, legal, tax or accounting advice.
For questions about these risks, contact One Prime Limited at support@oneprime-global.com.