Risk Disclosures

This document outlines some of the risks associated with the use of the services offered by FINTECH AMERICAS, S.A. DE C.V. (“MONETAE”) through its technology platform, website, and any other enabled channels. It forms an integral part of the Terms and Conditions available on MONETAE’s website (hereinafter, the “Terms”) and is incorporated by reference into them. Unless otherwise indicated, the terms defined in this document shall have the same meaning as in the Appendix of the Terms, which also establishes the applicable rules of interpretation.

These Risk Disclosures are not intended for individuals or entities located or residing in jurisdictions where access to, distribution, or use of this information would violate local regulations or impose additional registration, licensing, or authorization requirements on MONETAE or any related entity.

General Principles of Risk Management

MONETAE has adopted a series of measures to ensure that risk disclosure is clear, up-to-date, and compliant with applicable laws in all jurisdictions where it operates. These measures include:

• Regulatory Integration: This document is part of MONETAE’s Terms of Service.
• Periodic Updates: Risks are regularly reviewed to adapt to regulatory, technological, or market changes.
• Accessibility and Communication: We ensure clients receive this information through appropriate channels.
• Team Training: All MONETAE personnel receive specific training on how to communicate these risks to users.

It is your responsibility to inform yourself about the risks associated with the use of our Services, assess your individual circumstances, and consult with professional advisors before performing any action in our website and/or platform, in such a way that you can make informed decisions at all times. All information on MONETAE’s website and platform is for informational purposes only. MONETAE does not provide legal, tax, accounting, financial, or investment advice, and nothing provided should be interpreted as such.

These Risk Disclosures do not constitute an exhaustive list of all the risks associated with MONETAE’s products and services. By accessing monetae.io or Monete’s platform to access our products or services, you are deemed to have read, understood, and accepted ALL risks, including but not limited to those described here and in the Terms. You should also consider additional factors — such as local laws — that may be relevant in your country or jurisdiction. Some or all of the Services may not be available or may be restricted for certain types of qualified investors in your location.

Where applicable, issuers or promoters of digital assets listed on Monetae’s Platform and/or  website may provide their own information about their operations and risks. MONETAE does not guarantee the accuracy or completeness of such information.

Risks Associated with Products

a. Digital Assets

Digital assets are highly speculative instruments with significant volatility and no backing from any government or central institution. The blockchain networks on which they operate may contain bugs, be vulnerable to attacks, or suffer serious technical failures (such as forks, bugs, or changes in consensus mechanisms) that affect their functionality or value.

The value of a digital asset may drop drastically or even become worthless. Moreover, activities involving these assets may be subject to legal restrictions in your jurisdiction, which you are responsible for verifying. MONETAE does not make investment recommendations, and any decisions regarding digital assets are made at your own risk.

b. Private Keys and Security

Digital assets are only accessible through the private key associated with the wallet where they are stored. Loss or exposure of this key can result in the irreversible loss of your digital assets. MONETAE (along with its providers and sub-custodians) uses both online ("hot wallets") and offline ("cold wallets") wallets for asset custody. We cannot guarantee that these wallets will not suffer unauthorized access or cyberattacks resulting in partial or total loss of client assets.

c. Custody via Third Parties

MONETAE may engage sub-custodians and external technology providers to store assets or provide related services. Although we apply rigorous criteria in selecting these third parties and require contractual security standards, we cannot fully eliminate the risk of loss due to events such as bankruptcies, operational failures, cyberattacks, fraud, or negligence. In such cases, our ability to recover funds may be limited or nonexistent.

d. Lack of Insurance

Digital assets held in custody are not covered by public or private insurance. Some providers may maintain policies, but there is no guarantee they will fully or partially cover losses, or that payouts will be made in a timely manner.

e. Forks

Blockchain networks may undergo forks, generating new protocol versions and potentially new assets. These events can disrupt services, alter balances, or affect the usability of the original asset. MONETAE reserves the right, at its sole discretion, to decide whether or not to support the new network. We have no obligation to grant you access to assets derived from a fork.

Market Risks

a. Volatility and Liquidity

Digital asset prices can fluctuate widely over short periods. These fluctuations may result from external factors such as regulatory actions, speculation, or supply and demand shifts. Some trades may be executed at unfavorable prices — or not at all. There is also a risk that an asset could lose all value.

b. Lack of Financial Advice

MONETAE does not provide financial, tax, or investment advice. No information provided (such as market analyses, reports, or educational tools) should be interpreted as a recommendation. We advise you to consult your own advisors before trading.

Regulatory, Tax, and Legal Risks

The legal framework surrounding digital assets is dynamic and varies by country. It is your responsibility to comply with applicable local and/or international laws. MONETAE reserves the right to modify, restrict, or suspend Services in any jurisdiction, without prior notice, when required by local or international regulations.

If suspicious activity or violations of the Terms are detected, we may suspend your account and, if appropriate, report it to the relevant authorities.

Technological Risks

a. System Dependency

MONETAE relies on a complex and sophisticated technological infrastructure. Hardware failures, software errors, power outages, system overloads, or cyberattacks may affect the availability and quality of the Services. We do not guarantee uninterrupted or error-free access to the platform.

b. Cybersecurity

IT systems are exposed to risks such as hacking, malware, ransomware, data theft, or unauthorized access. While MONETAE implements protective measures, we cannot ensure they will always be effective or that third-party providers will respond appropriately in the event of incidents.

c. Third Parties and Subcontractors

Platform operations depend on various third-party providers (banks, cloud services, data providers, etc.). If these third parties experience issues, it may directly impact MONETAE’s performance and user access to their digital assets. Contracts with such providers may not fully mitigate all negative consequences.

Digital Asset Support

MONETAE only permits transactions with officially supported digital assets. If you attempt to transfer unsupported assets, you may lose them irreversibly. Additionally, MONETAE may decide to delist assets, suspend operations, or require you to withdraw assets to external wallets. We assume no responsibility for the consequences of such decisions.

Custom Agreements

In some cases, MONETAE may enter into special agreements with certain users, applicable only to their specific relationship. These agreements do not modify or affect the general Terms for other users. We are under no obligation to offer similar terms to others.

Suspension, Closure, and Insolvency

MONETAE may, at its sole discretion and without prior notice, temporarily or permanently suspend your account or limit access to Services. Additionally, in the event of MONETAE’s insolvency or bankruptcy, you may suffer losses if we are unable to fulfill our obligations to you.

Governing Law and Jurisdiction

These Terms are governed by the laws of El Salvador. Any disputes will be resolved exclusively by the courts of El Salvador, unless another mechanism, such as arbitration, is agreed upon.

Unforeseen Risks

Because digital assets are emerging technologies, risks not described in this document may arise, or there may be unexpected combinations of already identified risks.

Dependence on External Data

MONETAE uses third-party data to determine market values. The interruption, corruption, or inaccessibility of such data may affect price calculations and transaction execution.