[RISK DISCLOSURE STATEMENT]
This Risk Disclosure Statement provides information regarding some of the risks associated with the use of CaizStable’s stablecoin services and other offerings provided by the Company. The information presented in this Risk Disclosure Statement is not exhaustive and does not cover all potential risks or important factors you should consider before utilizing these services.
CaizStable issues Sharia-compliant, asset-backed stablecoins designed to facilitate secure and compliant transactions. While these stablecoins are intended to maintain stability, external factors such as regulatory changes, market conditions, and liquidity risks may impact their value and usability.
You must make your own independent decision before using CaizStable’s services and should seek any necessary advice, including financial, legal, or regulatory guidance, from independent advisers. Your capital and digital assets may be subject to risks inherent in blockchain-based financial instruments.
Terms not otherwise defined in this Risk Disclosure Statement shall bear the same meanings attributed to them in the Terms of Service, Privacy Policy, Anti-Money Laundering (AML) Policy, Data Protection Policy, and User Agreement of CaizStable.
While these stablecoins aim to maintain value stability, there are inherent risks associated with their use. The following outlines key risks users should consider:
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A. General Financial and Asset-Backed Stablecoin Risks
1. Stablecoin Risk: Although CaizStable coins are asset-backed, factors such as regulatory restrictions, issuer solvency, and operational risks may affect their stability.
2. Asset Reserve & Redemption Risk: The backing of CaizStable stablecoins by tangible assets (fiat or commodities) does not eliminate risks related to asset liquidity, third-party custodians, or redemption constraints.
3. Accuracy of Information: Market data, transaction records, or third-party integrations may contain errors or inaccuracies. Users should verify information independently before making transactions.
4. Value Volatility Risks: While stablecoins are designed to maintain price stability, macroeconomic conditions, government regulations, or issuer-related risks may lead to fluctuations.
5. Liquidity Risk: Limited market adoption or regulatory challenges may impact the ability to convert stablecoins into fiat or other assets efficiently.
6. Custodial and Insurance Risks: Funds held in reserve for asset backing may not always be covered by insurance or traditional deposit protection schemes.
7. Support for Stablecoins: CaizStable reserves the right to modify, suspend, or discontinue certain stablecoin products or services based on market demand, compliance, or operational factors.
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B. Regulatory and Oversight Risks
1. General Regulatory Risk: Stablecoins operate in a developing regulatory landscape, and new laws, government restrictions, or policy changes may impact CaizStable’s ability to issue, redeem, or facilitate transactions.
2. Compliance with Sanctions Programs:
a. Adherence to Global Sanctions Regulations:
We, CaizStable, are committed to ensuring full compliance with all applicable international sanctions laws and regulations. We prohibit any activity that would violate, or assist in the violation of, sanctions programs administered by:
– The U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC).
– The U.S. Department of State.
– Her Majesty’s Treasury (HMT) of the United Kingdom.
– The European Union (EU).
– The United Nations Security Council (UNSC).
– Any other applicable international sanctions regulatory body.
b. Sanctions Compliance Policy:
CaizStable maintains a strict sanctions compliance program and will not engage in any business relationship with individuals or entities that:
– Are subject to country-wide comprehensive sanctions imposed by any recognized international sanctions authority.
– Pose a perceived sanctions risk, even if not explicitly designated under existing sanctions.
– Operate in, are organized in, or have a principal place of business in any of the following sanctioned jurisdictions:
Belarus, Burundi, Central African Republic, Cuba, Democratic Republic of Congo, Iran, Iraq, Libya, North Korea, Russia, Somalia, Syria, South Sudan, Venezuela, Yemen, and Zimbabwe.
c. Restrictions on Transactions and Services:
CaizStable reserves the right to block, restrict, freeze, or terminate transactions or access to its services if a user or entity is found to be in violation of its sanctions compliance policies. Specific restrictions include:
– No onboarding of individuals or businesses from sanctioned jurisdictions.
– Prohibition of transactions that involve persons or entities appearing on any official sanctions list (e.g., OFAC’s Specially Designated Nationals (SDN) List).
– Enhanced due diligence (EDD) on transactions flagged as potential sanctions risks.
– Reporting of suspicious transactions to the relevant regulatory authorities in compliance with global financial reporting obligations.
d. Commitment to Regulatory Cooperation:
CaizStable actively collaborates with regulatory bodies and law enforcement agencies to prevent financial crimes, money laundering, and sanctions violations. Our compliance framework includes:
– Regular screening of users and transactions against global sanctions lists.
– Implementation of robust Know Your Customer (KYC) and Anti-Money Laundering (AML) measures to detect and prevent illicit activities.
– Continuous updates to our compliance protocols to align with evolving global regulatory standards.
e. User Responsibility & Compliance Obligations:
Users engaging with CaizStable’s stablecoin services are responsible for ensuring their activities comply with applicable sanctions laws. By using our platform, users agree:
– Not to engage in any transactions or activities that violate international sanctions laws.
– To provide accurate and truthful information for identity verification and compliance checks.
– To report any suspicious activity related to sanctions violations.
f. Failure to Adhere to Obligations:
Failure to adhere to these obligations may result in account suspension, service termination, or legal action.
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C. Cybersecurity and Platform Risks
1. Cybersecurity Risks: Blockchain-based financial products are susceptible to security threats, including hacking, phishing, and unauthorized access. CaizStable employs strong security measures, but risks remain.
2. Platform Downtime and IT Maintenance Risks: Scheduled or unscheduled maintenance, system updates, or unexpected technical failures may impact access to CaizStable services temporarily.
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D. Smart Contract and Blockchain-Related Risks
1. Smart Contract Vulnerabilities: Although CaizStable employs secure smart contracts, potential coding flaws or exploits could impact their functionality.
2. Blockchain Network Congestion: CaizStable transactions may be affected by delays or higher transaction fees due to blockchain congestion or network-related disruptions.
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E. Access Risks
1. Wallet and Private Key Security: Users are responsible for securing their wallets and private keys. Lost or compromised private keys may result in irreversible loss of assets.
2. Third-Party Service Risks: Interacting with third-party wallets, exchanges, or service providers may expose users to additional risks outside of CaizStable’s control.
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F. Risks Associated with Automated Transactions
1. Use of Smart Contracts and Automated Payments: Automated transactions, such as recurring payments or token swaps, may execute unexpectedly due to market fluctuations, liquidity shortages, or contract logic errors.
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G. Final Disclaimer
This Risk Disclosure Statement is provided for informational purposes only and does not constitute financial, legal, or investment advice. Users should conduct independent due diligence and consult professional advisors before engaging in stablecoin transactions.
By using CaizStable stablecoins, users acknowledge and accept these risks.
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[END OF RISK DISCLOSURE STATEMENT]
