Risk Disclosure Statement

Use of DaisyLink’s Services, particularly services involving virtual currency, carries risk, including the risk of loss of some or all funds transacted. You should not use the Services with funds you cannot afford to lose, and should carefully consider whether the Services are appropriate for you in light of your financial situation and risk tolerance. DaisyLink does not provide investment, legal, or tax advice, and nothing in this Statement or elsewhere should be construed as a recommendation to use any particular product or service.

• Not legal tender: Virtual currencies, including stablecoins such as USDC and USDT, are not legal tender in Canada and are not issued, backed, or guaranteed by the Government of Canada, the Bank of Canada, or any other central bank or government.
• Volatility and de-pegging risk: While stablecoins are designed to maintain a stable value relative to a reference currency, this peg is not guaranteed. A stablecoin issuer’s reserves, redemption practices, or solvency may fail to maintain the peg, and the market price of a stablecoin can deviate from its reference value, sometimes significantly.
• Issuer and counterparty risk: DaisyLink does not issue USDC or USDT and does not control the issuer’s reserve management, redemption mechanics, or solvency. DaisyLink’s ability to facilitate redemption or conversion of a stablecoin depends on the continued operation and solvency of the relevant issuer and its banking or reserve partners.
• Irreversibility: Virtual currency transactions recorded on a blockchain are generally irreversible. Funds sent to an incorrect address, or as a result of fraud, may not be recoverable. DaisyLink’s no-refunds policy on coin settlement, as set out in the Client Application Terms, applies to relevant transactions.
• No deposit insurance: Virtual currency and stablecoin balances are not deposits and are not insured or guaranteed by the Canada Deposit Insurance Corporation (CDIC) or any other deposit insurance scheme.
• Network and protocol risk: Blockchain networks underlying virtual currencies may experience congestion, forks, consensus failures, or changes in protocol rules that could affect the availability, value, or transferability of virtual currency.

• Settlement and processing risk: Payment and card acquiring transactions depend on the continued operation of payment networks, correspondent banks, and other third-party infrastructure that DaisyLink does not control, and which may experience delay, error, or disruption.
• Chargeback and fraud risk: Merchants using DaisyLink’s card acquiring services may be exposed to chargebacks, fraud, or disputed transactions, which may result in financial loss.
• Transaction errors: Errors in payment instructions, including incorrect account or wallet details, may result in delayed, misdirected, or irreversible transfers.

DaisyLink’s ability to process withdrawals, conversions, or redemptions may be affected by the liquidity of DaisyLink’s banking and reserve partners, virtual currency markets, or the relevant stablecoin issuer, particularly during periods of market stress or high transaction volume.

Despite the safeguards described in DaisyLink’s Security Statement, no system is completely secure. Cybersecurity incidents, software defects, or third-party service disruptions could result in delayed access to funds, loss of data, or in some circumstances financial loss. Customers are responsible for safeguarding their own account credentials and devices, as described in DaisyLink’s Security Statement.

The laws and regulations applicable to payment services and virtual currency are evolving in Canada and internationally. Changes in law, regulatory guidance, or enforcement priorities could affect the availability, features, cost, or permissibility of DaisyLink’s Services, and could require DaisyLink to modify, restrict, or discontinue Services with limited notice. Restrictions may also apply based on your jurisdiction of residence, as described in DaisyLink’s Restricted & Prohibited Jurisdictions Policy, which may change over time as sanctions and FATF classifications are updated.

DaisyLink is required to comply with Canadian and, where applicable, foreign sanctions and anti-money laundering laws, as described in its AML/CTF Statement. As a result, DaisyLink may delay, decline, freeze, or terminate a transaction or account relationship where required for compliance purposes, including where a customer, counterparty, or transaction is connected to a sanctioned or restricted jurisdiction or person. Such action may occur without prior notice where required by law.

DaisyLink’s Services may depend on markets, exchanges, blockchain networks, or service providers that DaisyLink does not control. Adverse developments affecting these third parties — including insolvency, security incidents, or withdrawal of services — could affect DaisyLink’s ability to provide the Services or the value of assets held or transacted through them.

Except as expressly set out in DaisyLink’s Customer Agreement, DaisyLink does not guarantee the value, availability, or performance of any virtual currency, stablecoin, or payment service. Past performance or stability of any asset or service is not indicative of future results.

By using DaisyLink’s Services, you acknowledge that you have read and understood this Risk Disclosure Statement, that you are using the Services at your own risk, and that you have had the opportunity to seek independent professional advice before doing so.

DaisyLink may update this Risk Disclosure Statement from time to time to reflect changes in its Services, the risks associated with them, or applicable law. The “Last Updated” date above indicates when this Statement was last revised.

If you have questions about this Risk Disclosure Statement, please contact:

DaisyLink Financial Ltd

Email: support@daisylink.example [update with live address]

Address: [Registered Canadian business address]