OEX Canada Limited Risk Warning

Important notice. Payment, foreign exchange and virtual currency transactions carry a risk of delay, loss and fraud. USDT and USDC are designed to reference a fiat currency, but neither is risk free or guaranteed to maintain its stated value. A blockchain transfer sent to the wrong address or network may be impossible to recover. Please read this warning and the applicable Client Agreement before giving an instruction.

1 About this warning

This warning is issued by OEX Canada Limited, a corporation incorporated under the Canada Business Corporations Act ('OEX Canada', 'we', 'us') with corporation number 1526293-3 and registered address 21 Teagarden Ct, Whitby, Ontario, Canada, L1R 2H9. It describes important, but not every, risk associated with cross border payments, currency conversion and virtual currency transactions. It does not itself offer any product or amend the applicable Client Agreement, transaction quote, fee schedule or mandatory legal rights. Where a specific transaction disclosure provides further detail, please read it before confirming the instruction.

OEX Canada may arrange payment and conversion services through third party providers. The applicable Client Agreement and product disclosures explain the transaction path and the responsibilities of OEX Canada and those providers. OEX Canada does not offer a custodial virtual currency wallet, control customers’ private keys or provide an ongoing stored virtual currency balance.

2 No investment or professional advice

Information provided by OEX Canada is general information about its services and is not investment, financial, legal or tax advice. We do not recommend acquiring or holding USDT, USDC or any other virtual currency as an investment, and we do not guarantee a result, price, exchange rate or tax treatment, except to the extent that we expressly agree a price, exchange rate or delivery amount with you for a particular transaction. Consider your purpose, financial circumstances and independent advice where appropriate.

3 Virtual currency and stablecoin risks

Value and issuer risk

Virtual currencies may rise or fall sharply in value and could become worthless. A fiat referenced token such as USDT or USDC may trade above or below its reference value, including during market stress. The issuer, reserve assets, custodian, banking partners or redemption arrangements may fail or change; a holder may not have a direct redemption claim against the issuer. Do not assume that a token is cash, a bank deposit or a guaranteed claim for one unit of fiat currency.

Liquidity, pricing and conversion risk

A market or conversion provider may lack sufficient liquidity or may halt trading, widen its spread or reject an order. The rate displayed before confirmation may be indicative or time limited. The amount ultimately delivered may differ due to market movement, spreads, provider charges, network fees, bank charges, taxes or an agreed reserve. Any exchange rate or delivery amount expressly agreed with you will apply subject only to charges, deductions or adjustments disclosed to and agreed by you before the transaction is confirmed. This warning does not itself authorise us to change an agreed rate or amount or impose additional charges. Conversion between fiat currencies also exposes you to exchange rate movements and intermediary bank deductions.

Network, wallet and irreversible transfer risk

Virtual currencies such as USDT or USDC can exist on more than one blockchain. The asset, network, wallet address and any required memo or tag must match the recipient’s supported instructions. Once a transaction is confirmed on a blockchain it generally cannot be cancelled or reversed, although an issuer or network may have distinct technical controls in certain circumstances. Funds sent to an incorrect, incompatible, compromised or sanctioned address may be delayed, frozen or lost. Review the details before approving a transfer.

Technology, custody and provider risk

A blockchain, smart contract, issuer, wallet operator, exchange, payment service provider or bank may suffer an outage, attack, insolvency, frozen assets or operational failure. A network may fork or be congested, and fees or confirmation times may rise unexpectedly. Although OEX Canada does not hold customers’ private keys, risk remains with the third parties used to receive, convert or send assets. Your Client Agreement and transaction disclosures explain the role of each provider and the applicable recourse if a provider fails.

4 Payment, settlement and funds risks

A payment may be delayed, rejected, returned or held for checks by OEX Canada, a provider, a bank, a blockchain network or an authority. Published processing times are estimates unless the Client Agreement expressly guarantees them. A recipient may receive less than expected because of conversion rates and charges, or a payment may fail because details are incorrect or the receiving institution declines it. Do not treat a displayed status as final settlement until the applicable channel confirms completion.

Do not assume that funds are held in trust, insured by the Canada Deposit Insurance Corporation or covered by investor compensation. OEX Canada’s FINTRAC registration does not insure funds or guarantee a transaction.

Merchant settlements may be subject to refunds, reversals, chargebacks, fraud reviews, rolling reserves, withholding or other adjustments only as provided in the relevant merchant agreement and applicable payment network rules. A merchant remains exposed to underlying customer disputes even after an initial payment appears successful.

5 Fraud, security and customer instructions

Fraudsters may impersonate OEX Canada, your counterparty or a trusted provider; replace payment details; create fake websites; or obtain access through phishing, malware or stolen credentials. Verify unusual instructions using a trusted independent channel. Do not disclose your password, authentication code or private key. Use a unique password and available multifactor authentication, check the Website address, restrict authorised users, and notify us immediately at support@oex.com if you suspect a compromise or unauthorised payment.

The extent to which a payment can be stopped or recovered depends on its stage and the payment rail. We will investigate promptly and take appropriate action under the Client Agreement and applicable law; this warning does not predetermine responsibility for a loss or remove rights you may have in connection with an unauthorised transaction.

6 Legal, regulatory and tax risks

The treatment of virtual currencies and cross border services differs by jurisdiction and may change. A service or transaction may become restricted, suspended or unavailable due to applicable law, sanctions, provider rules or compliance checks. We may request further information or decline to process a transaction where required or permitted under the Client Agreement and law. Such reviews can delay or prevent a transfer, and in some cases we may be unable to explain all aspects of a regulatory hold.

OEX Canada is registered with FINTRAC as a money services business under registration M23760780. FINTRAC registration is not a licence or regulatory endorsement and does not establish that a virtual currency product is approved by a securities regulator. Do not infer Bank of Canada payment service provider registration from FINTRAC status. Tax reporting and tax treatment depend on the transaction and your jurisdiction; seek independent advice if needed.

7 Systems, confidentiality and complaints

Websites, interfaces, application programming interfaces and communication networks can fail, be unavailable or contain errors. Check transaction confirmations and report discrepancies promptly. Personal and transaction information may be processed by relevant payment, banking, conversion, screening and technology providers as described in our Privacy Policy. For a complaint, contact us under our Complaint Handling Procedure. The risk disclosures here do not limit OEX Canada’s duties under applicable law.

8 Questions and confirmation

If any part of this warning or a proposed transaction is unclear, contact OEX Canada at support@oex.com before proceeding.