5. Risk Warning and Disclosures, Limitation of Liability, and No Warranties

You should read the following statements in detail before using any of the Services.

5.1. RISK WARNING ON DIGITAL PAYMENT TOKEN SERVICES:

The Monetary Authority of Singapore (“MAS”) requires us, XREX Pte. Ltd., to provide this risk warning to you as a customer of a digital payment token (“DPT”) service provider.

Before you:

(a) pay your DPT service provider any money or DPT; or

(b) pay a third party any money or DPT under an arrangement by your DPT service provider,

you should be aware of the following:

1. XREX Pte. Ltd., being your DPT service provider is licensed by MAS to provide DPT services. Please note that this does not mean you will be able to recover all the money or DPTs you paid to your DPT service provider or any other third party referred to above, if your DPT service provider’s or the third party’s business fails.

1A. You should be aware that MAS does not supervise or regulate your DPT service provider for the provision of unregulated services.[1] This includes any service of trading digital payment token derivatives such as futures.

2. You should not transact in the DPT if you are not familiar with this DPT. This includes how the DPT is created, and how the DPT you intend to transact if transferred or held by your DPT service provider.

3. You should be aware that the value of DPT’s may fluctuate greatly. You should buy DPTs only if you are prepared to accept the risk of losing all of the money you put into such tokens.

4. You should be aware that your DPT service provider, as part of its licence to provide DPT services, may offer services related to DPTs which are promoted as having a stable value, commonly known as “stablecoin”.

5.2. RISK DISCLOSURES:

5.2.1. INDUSTRY RISKS

5.2.1.1. The cryptocurrency industry represents a relatively new and rapidly changing industry, and its success is subject to a variety of factors that are difficult to evaluate. The slowing of the development or acceptance of cryptocurrencies may adversely affect the Cryptocurrencies. The growth of the Virtual Asset Service Providers (“VASPs”) is also subject to a high degree of uncertainty. The factors affecting the sustainability of the cryptocurrency industry include:

(a) continued worldwide growth in the adoption and use of cryptocurrencies;

(b) government regulation of cryptocurrencies and their use, or restrictions on or regulation of access to and operation of VASPs;

(d) changes in consumer demographics and public tastes and preferences;

(e) the availability and popularity of other forms or methods of buying and selling goods and services, including new means of using fiat currencies and cryptocurrencies; or

(f) general economic conditions and the regulatory environment relating to cryptocurrencies.

5.2.1.2. A decline in the popularity or acceptance of cryptocurrencies may harm the market price of the Cryptocurrencies. There is no assurance that any VASPs (including XREX) necessary to accommodate the sale and transfer of the Cryptocurrencies will continue in existence or grow. Furthermore, there is no assurance that the availability of and access to VASPs will not be negatively affected by government regulation or supply and demand of cryptocurrencies and/or other digital assets.

5.2.2. MARKET RISKS

5.2.2.1. The prices of Cryptocurrencies have historically been subject to dramatic fluctuations and are highly volatile. Several factors may influence the market price of the Cryptocurrencies, including, but not limited to:

(a) global Cryptocurrencies supply and demand, which can be influenced by the growth of merchants’ and commercial businesses’ acceptance of Cryptocurrencies as payment for goods and services, the security of cryptocurrency and digital asset exchanges and digital wallets, and the regulatory restrictions on the use and trading of Cryptocurrencies;

(b) currency exchange rates, including the rates at which Cryptocurrencies may be exchanged for fiat currencies;

(d) investment and trading activities of large purchasers, including private and registered funds, that may directly or indirectly invest in the Cryptocurrencies;

(e) monetary policies of governments, trade restrictions, currency devaluations and revaluations;

(f) regulatory measures, if any, that affect the use of digital assets such as the Cryptocurrencies; or

(g) global or regional political, economic or financial events and situations.

5.2.3. LEGAL AND REGULATORY RISKS

5.2.3.1. Government regulation and Applicable Laws. Cryptocurrencies are a relatively new asset type and the continued popularity of and risks involving Cryptocurrencies has attracted and will continue to attract regulatory scrutiny. Regulation of Cryptocurrencies and VASPs is evolving and may severely impact the development and growth of this market and the secondary market for the Cryptocurrencies. The application and interpretation of existing laws and regulations are largely untested and there is a lack of certainty as to how they will be applied. New laws and regulations may be promulgated in the future that apply to blockchain technology and Cryptocurrencies, and related service providers, and no assurance can be given that any such changes will not adversely affect Cryptocurrencies generally (including the use, transfer, exchange and value of Cryptocurrencies) or the Services.

5.2.3.2. Changes in Applicable Laws may affect the price, liquidity and/or tradability of Cryptocurrencies, or the use of any Services. Cryptocurrencies may decrease in value or lose all of its value due to such changes.

5.2.3.3. XREX may have to suspend or limit the trading of certain Cryptocurrencies or the use of certain Services or disallow users to trade Cryptocurrencies or use any of the Services based on their citizenship, residence or location if doing so is commercially unsustainable or is prohibited by any Applicable Laws. Applicable Laws and changes thereto could materially and adversely affect the price, liquidity and/or tradability of Cryptocurrencies, or the use or availability of any Services.

5.2.3.4. XREX has sole and absolute discretion to suspend or reject the execution of any of your instructions, suspend or cease support for any Cryptocurrencies, or suspend or terminate your access to any Accounts or Services, where any such action or inaction is, in XREX’s sole opinion, necessary to facilitate XREX's compliance with Applicable Laws.

5.2.4. TECHNOLOGY AND RELATED RISKS

5.2.4.1. Technology risks. The Cryptocurrencies rely on various types of distributed ledger technology. Some of this technology is open-source software that is built upon experimental technology, namely blockchain. Risks arising from relying on such technology include the existence of technical flaws in the technology, targeting by malicious persons, changes in the consensus protocol or algorithms, decreased community or miner support, the existence or development of competing networks, platforms and assets, flaws in the scripting language, disputes between developers, miners and/or users and regulatory action.

5.2.4.2. XREX reserves the right, in its sole discretion, to suspend or cease to support the transfer, storage or trading of any Cryptocurrencies in response to any technology changes. XREX may, but is not obligated to, make changes to your XREX Account in response to such changes. You may be unable to withdraw Cryptocurrencies if XREX ceases to support the transfer of any such Cryptocurrencies as a result of these technology changes, which may result in the total loss of any such Cryptocurrencies remaining in your Account. XREX will not be liable for any losses you may experience as a result.

5.2.4.3. Network and other risks. The underlying protocols supporting the Services, and the smart contracts that underlie the Cryptocurrencies may be subject to certain risks that are beyond our control, and which may result in events, such as (a) loss of control or ownership of your Cryptocurrencies and (b) transaction records on the blockchain being altered, reversed or otherwise invalidated, whether by way of fraudulent acts or consensus.

5.2.4.4. Transactions irreversible. Transactions involving Cryptocurrencies on blockchain networks are generally irrevocable and irreversible. This means accidental or fraudulent transactions in respect of, or loss or theft of your Cryptocurrencies may not be reversible. XREX will not be liable for any losses that you may experience in such a scenario.

5.2.4.5. Loss of private key(s) is permanent and irreversible. A digital private key is required to access and trade your Cryptocurrencies. The loss or theft of your private keys will permanently and irreversibly deny you access to your Cryptocurrencies and hence, you may lose all value of your Cryptocurrencies. XREX will not be liable for any losses that you may experience in such a scenario.

5.2.5. CYBER-SECURITY, INTERNET AND RELATED RISKS

5.2.5.1. Cyber-attacks and other criminal activities. Cyber-attacks may take different forms, including (but is not limited to) distributed denial of service, malware, double-spending, majority-mining, consensus-based or other mining attacks, misinformation campaigns and spoofing, which may affect the features, functions, operation, use, access or other properties of the Services and your XREX Account(s). The Services and your Accounts may also be exploited for vulnerabilities in smart contracts and other code, as well as to human error.

5.2.5.2. Cryptographic advancements. Developments in cryptographic technologies and techniques, including (but not limited to) the advancement of artificial intelligence and/or quantum computing, pose security risks to all cryptography-based systems including the Services, the network infrastructure and your Cryptocurrencies. These ill-intended use of these advancements may result in theft, loss, disappearance, destruction, devaluation or other compromises of your XREX Account(s) and Funds.

5.2.5.3. Reliance on the internet. Transactions rely heavily on the internet and other technologies. However, the public nature of the internet means that either parts of the internet or the entire internet may be unreliable or unavailable at any given time. Further, interruption, delay, corruption or loss of data, the loss of confidentiality in the transmission of data, or the transmission of malware may occur when transmitting data via the internet and/or other technologies.

5.2.5.4. Any information (including any document) transmitted, or communication or transactions made, over the internet or through other electronic media (including electronic devices, services of third party telecommunication service providers such as mobile phones or other handheld trading devices or interactive voice response systems) may be subject to interruption, transmission blackout, delayed transmission due to data volume, internet traffic, market volatility or incorrect data transmission (including incorrect price quotation) or stoppage of price data feed due to the public nature of the internet or other electronic media.

5.2.5.5. XREX makes no representation, warranty or undertaking of any kind, express or implied, statutory or otherwise, regarding any of its technology or blockchain functionalities. XREX does not guarantee the functionality or security of any Cryptocurrencies or their underlying technology. You acknowledge and accept the risk of any changes or breach of security to the Services, its underlying technology and to the Funds in your XREX Wallet and/or XREX Account(s).

5.2.5.6. You further acknowledge and accept that XREX does not control Internet signal power, its reception or routing, configuration of your equipment or its reliability, and that XREX shall not be responsible for any communication failures, disruptions, errors, distortions or delays you may experience when using the Services, however caused.

5.2.5.7. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, YOU ACKNOWLEDGE THAT, BY ACCESSING AND USING THE SERVICES YOU ARE ENGAGING IN FUNDAMENTALLY RISKY TRANSACTIONS INVOLVING SOPHISTICATED INSTRUMENTS. CRYPTOCURRENCIES ARE HIGHLY VOLATILE INSTRUMENTS AND CAN RAPIDLY AND UNEXPECTEDLY DECREASE IN VALUE. TRANSACTING IN CRYPTOCURRENCIES ALSO REQUIRES A CERTAIN LEVEL OF TECHNICAL KNOWLEDGE AND UNDERSTANDING WITHOUT WHICH USERS MAY LOSE THE VALUE OF, OR ACCESS TO, SOME OR ALL OF THEIR CRYPTOCURRENCIES. BY ACCESSING THE SERVICES YOU AGREE THAT YOU ARE VOLUNTARILY ENGAGING IN INHERENTLY RISKY TRANSACTIONS AND THAT YOU ARE AWARE OF THE RISKS INVOLVED INCLUDING BUT NOT LIMITED TO, RISKS OF FINANCIAL LOSS, LOSS OF ACCESS TO CRYPTOCURRENCIES AND FIAT CURRENCIES DUE TO TECHNICAL ERRORS, SYSTEM DOWNTIME, SOFTWARE FLAWS AND CYBER-HACKS WHICH COMPROMISE THE SECURITY OF OUR SERVICES AND/OR YOUR OWN PERSONAL SYSTEMS.

5.3. LIMITATION OF LIABILITY:

5.3.1. IN NO EVENT WILL THE LIABILITY OF XREX, THEIR RESPECTIVE AFFILIATES, AND THEIR RESPECTIVE SHAREHOLDERS, MEMBERS, DIRECTORS, OFFICERS, EMPLOYEES, ATTORNEYS, AGENTS, REPRESENTATIVES, SUPPLIERS, OR CONTRACTORS ARISING OUT OF OR IN CONNECTION WITH THE SITE, THE SERVICES, THE XREX MATERIALS, ANY PERFORMANCE OR NON-PERFORMANCE OF THE SERVICES, OR ANY OTHER PRODUCT, SERVICE OR OTHER ITEM PROVIDED BY OR ON BEHALF OF XREX, WHETHER UNDER CONTRACT, STATUTE, STRICT LIABILITY OR OTHER THEORY (INCLUDING, FOR AVOIDANCE OF DOUBT, ANY NEGLIGENCE OF XREX) EXCEED THE RELEVANT AMOUNT OF THE FEES PAID BY YOU TO XREX UNDER THIS AGREEMENT IN THE TWELVE-MONTH PERIOD IMMEDIATELY PRECEDING THE EVENT GIVING RISE TO THE CLAIM FOR LIABILITY, OR THE PERIOD OF DURATION OF THIS AGREEMENT BETWEEN YOU AND XREX, WHICHEVER IS SHORTER.

5.3.2. This Limitation of Liability shall apply to the fullest extent permitted by law. The Limitation of Liability in this Section is subject to any obligations that we have under Applicable Laws, including our obligation to exercise reasonable care and skill in our provision of the Services. Nothing in this Agreement shall limit our liability resulting from our fraud or fraudulent misrepresentation, gross negligence, deliberate misconduct, nor for death or personal injury resulting from our negligence.

5.4. No Warranties:

5.4.1. All services and products are provided on an “AS IS” and “AS AVAILABLE” basis. To the fullest extent permitted by law, XREX disclaims any representations and warranties of any kind, whether express, implied, or statutory, including, but not limited to, the warranties of merchantability and fitness for any particular purpose.

[1] Please refer to Section 2.3.1 of the Guide to the Payment Services Act 2019 (which can be found on the MAS website) for the types of payment services which are regulated under the Payment Services Act. Services which do not fall within the list of services in Section 2.3.1 are unregulated services.

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