General Awareness

This Statement describes risks associated with Virtual Assets, the Platform and the use of the Services. It is not exhaustive. You should carefully assess whether the Services are appropriate for your needs and circumstances. By accessing or using the Platform, you acknowledge and accept the risks described here.

The Services are provided to you by Elephants Growth Tech Ltd, a company incorporated in Canada and registered with the Financial Transactions and Reports Analysis Centre of Canada (“FINTRAC”) as a Money Services Business (MSB Registration No. C10001690), and with the Bank of Canada as a Payment Service Provider under the Retail Payment Activities Act (“RPAA”). Where the Services involve regulated functions, those functions are performed through licensed Partners and Supporting Entities identified in the Agreement. Elephants Growth Tech Ltd is a technology and payments company. It is not a bank, and it does not provide financial product, investment, legal or tax advice.

Application to Business and Individual Users

The Services are available to consumers (individuals using the Services in a personal capacity), to unincorporated business users (such as sole traders and solopreneurs) and to legal entities. Where you use the Services as a consumer, you may have rights and protections under the consumer-protection law of your country of residence that cannot be excluded by agreement. Nothing in this Statement, and nothing in the Agreement, excludes, restricts or modifies any such right or protection to the extent it cannot lawfully be excluded. The risks described here apply to all users; some risks may affect individual users differently from business users, and you should consider your own circumstances.

No Guarantee of Performance

The Services are provided on an “as is” and “as available” basis. We do not guarantee uninterrupted operation, security or accuracy of the Platform. Past performance of any financial or technological service does not indicate future results.

Legal and Regulatory Considerations

The Services are subject to evolving regulatory frameworks in multiple jurisdictions, including Canada, Singapore, Hong Kong and Australia. Changes in laws, regulations, supervisory expectations or enforcement actions may affect the availability, legality or functionality of the Services. You are responsible for understanding and complying with the laws applicable to you.

The regulatory treatment of Virtual Assets continues to develop, and the application of existing laws is in many cases untested. New laws and regulations may be introduced that apply to blockchain technology, Virtual Assets and related service providers, and no assurance can be given that such changes will not adversely affect Virtual Assets generally or the Services.

The legal status of Virtual Assets varies significantly across jurisdictions. Virtual Assets are different from electronic money and are not regulated in the same way as fiat currency. They may be prohibited or heavily regulated in certain jurisdictions. We do not endorse or take a position on the legal status of any Virtual Asset. You should conduct your own research and accept the legal risks of using Virtual Assets through the Services.

Understanding Virtual Asset Risks

The price of Virtual Assets can be highly volatile and unpredictable, and a Virtual Asset may become worthless. Holding or transacting in Virtual Assets involves substantial risk, including the risk of severe loss. Valuation can be difficult due to unpredictable trading patterns and unclear fundamentals. We cannot assure the ongoing availability of any particular Virtual Asset as part of the Services, and we may discontinue support for any Virtual Asset (see the Agreement for the notice that applies).

Stablecoin Risk

Some balances on the Platform may be held in stablecoins — digital assets intended to maintain a fixed value relative to a fiat currency. Stablecoins are not risk-free. A stablecoin may lose its peg (“de-pegging”), which may cause you to receive more or less than expected in a transaction, or create a difference between your displayed Wallet Balance and the actual market value of the assets held. We do not guarantee the stability, value, redemption or convertibility of any stablecoin, and we are not the issuer of any stablecoin.

Card Transaction and Foreign-Exchange Settlement Risk

Where you use the Elephants Inc Card, a Card Transaction is settled from your Wallet Balance. If your fiat balance is insufficient, you authorise the conversion of Virtual Assets into fiat to settle the transaction, at the prevailing market rate. The amount of Virtual Assets required to settle a Card Transaction may therefore vary with market movements and exchange rates between the time of authorisation and settlement, and foreign-exchange charges may apply. You bear the risk of these fluctuations and charges. A Card Transaction may be declined where your Wallet Balance is insufficient, and a decline fee may apply as set out in the Agreement.

Wallet, Safeguarding and Insolvency Risk

Fiat and Virtual Assets credited to your Account are recorded against a wallet (the "Wallet") maintained and operated by Elephants Growth Tech Ltd, using the technical infrastructure and account services of regulated third-party Partners. The relevant assets are held via the relevant Infrastructure Provider in a separate omnibus account segregated from the Infrastructure Provider's own accounts. Elephants Growth Tech Ltd maintains the authoritative record of your proportionate share; the relevant Infrastructure Provider maintains corresponding records of the aggregate balance. The safeguarding and segregation arrangements are described in the Agreement.

Fiat funds corresponding to your Wallet Balance are safeguarded in accordance with Elephants Growth Tech Ltd's obligations as a registered Payment Service Provider under the RPAA. Fiat funds are held in segregated accounts maintained by the Company with one or more regulated third-party Partners providing fiat account infrastructure (each, a "Fiat Infrastructure Provider"), ring-fenced from the Company's and any Partner's operational funds. Virtual Assets are held via the technical infrastructure of a regulated or institutional-grade third-party Partner providing wallet infrastructure (the "Wallet Infrastructure Provider"), in segregated wallets and not commingled with the Wallet Infrastructure Provider's, any other Partner's, or the Company's own assets. Your Wallet Balance is displayed in USD and may be composed of fiat held in-kind via the Fiat Infrastructure Provider and/or one or more Acceptable Tokens (including stablecoins) held via the Wallet Infrastructure Provider, in such proportions as the Company determines from time to time. The Company's safeguarding obligations under the RPAA apply only to the fiat component of your Wallet Balance; the Acceptable Token component is not safeguarded as fiat. Despite these arrangements, you should be aware of the following risks:

No deposit insurance. The Wallet is not a bank account, savings account or e-money account. Fiat funds are safeguarded under the RPAA but are not covered by the Canada Deposit Insurance Corporation (CDIC) or by any deposit-insurance, deposit-protection or investor-protection scheme. Virtual Assets and Acceptable Tokens (including stablecoins) are not covered by any deposit insurance, investor-protection scheme or government-backed guarantee.

Infrastructure Provider and counterparty risk. Your assets depend on the solvency, security and operational integrity of the Wallet Infrastructure Provider, the Fiat Infrastructure Provider and other Partners, as well as on the Company's own systems. The failure, insolvency, default or operational failure of any Infrastructure Provider or other Partner, or any cyber-attack, theft, error or omission affecting any of them, could result in delay in, or loss of, access to your assets. Any insurance maintained by the Company, an Infrastructure Provider or any other Partner may be subject to limits, exclusions and an excess or deductible, may not cover all forms of loss, and may be insufficient to make good a loss in full.

Stablecoin risk. Where the Acceptable Token component of your Wallet Balance includes one or more stablecoins, the value of that component depends on the integrity, solvency and operational performance of the issuer of the relevant stablecoin and the Wallet Infrastructure Provider. A stablecoin may lose its peg, which may cause the Acceptable Token component of your Wallet Balance to be worth less than the displayed USD amount and may result in losses that are not recoverable.

Pooling and insolvency. Because assets are held on a pooled (omnibus) basis, in an insolvency the reconstruction of individual entitlements depends on the accuracy of records. While safeguarded fiat funds are intended to be ring-fenced from the Company's general estate and returned to users in priority to general creditors, recovery is subject to applicable insolvency law and cannot be guaranteed. The safeguarding and ring-fencing under the RPAA apply only to the fiat component of your Wallet Balance; the Acceptable Token component (including any stablecoin component) is not subject to the same regime and may not enjoy the same priority in the Company's insolvency. You may not be entitled to consumer-protection or deposit-protection schemes in your jurisdiction, and there is a possibility that your funds, Virtual Assets or Acceptable Tokens may not be fully recoverable.

Irreversibility of Transactions

Virtual Asset transactions recorded on a blockchain are generally irreversible. Transactions sent to an incorrect address, or assets that are not Acceptable Tokens sent to the Custodian Wallet, may be permanently lost and cannot be recovered. You are responsible for ensuring that transaction details are correct. Account Transactions, once submitted, may not be cancelled, reversed or changed, as set out in the Agreement.

Financial and Transaction Risks

Transactions through the Platform may be subject to market fluctuation, transaction failure or delay. Processing times may be affected by banking cut-off times, public holidays, the payment method used and other operational factors. We do not control third-party providers, including payment processors, liquidity providers and banking partners, and are not responsible for their acts or failures except to the extent caused by our own negligence or breach.

Operational Risks

We may experience operational disruption, system outages or other unforeseen challenges affecting service continuity. We do not assume liability for losses arising from such events except to the extent required by Applicable Law.

Accuracy of Information

While we endeavour to keep information displayed through the Services accurate, it may not always be correct, complete or current. You should not rely on Platform information as the sole basis for any decision.

Security and Cybersecurity Risks

The Platform may be targeted by malicious actors through malware, denial-of-service attacks, account takeovers, spoofing and other methods. Virtual Assets and digital systems are inherently susceptible to operational and information-security risk. Cyber incidents may result from deliberate attacks or unintentional events and may cause data breaches, unauthorised transactions or loss of funds. Security failures affecting third-party providers (including software and cloud-services providers and the Custodian) may also adversely affect the Services.

You are responsible for (i) keeping your access credentials secure and confidential, including your email, username, password and any two-factor authentication device or secret, and (ii) the security and integrity of any hardware, software or services you use to access the Services.

Use of AI Services

The Platform may make available AI-powered tools, including a conversational assistant, which may be under continuous development. AI-generated output may be inaccurate, outdated or incomplete. You should not rely on the AI Services for financial, legal, tax or other professional decisions, and should independently verify any output. The terms governing the AI Services are set out in the Agreement, and we do not accept liability for consequences arising from reliance on AI-generated output except to the extent required by Applicable Law.

No Financial or Investment Advice

The Services do not constitute financial, investment, legal or tax advice. We do not take into account your objectives, financial situation or needs. You should conduct independent research or consult a qualified professional before making financial decisions.

Governing Law

This Statement is governed by the law that governs the Agreement, and disputes are subject to the dispute-resolution provisions of the Agreement. Nothing in this Statement affects any non-waivable right available to you as a consumer under the law of your country of residence.

Acknowledgement and Acceptance of Risks

By using the Services and the Platform, you acknowledge that you have read, understood and accepted this Risk Disclosure Statement. You accept the risks described here, subject to any rights you have under Applicable Law (including non-waivable consumer-protection rights) and to the Agreement.