Risk Statement

Background

By using the Services via the Platform you are exposed to certain risks which are explained in this Risk Statement (the “Statement”).

This Statement is directly related to OSO Money (Pty) Ltd (“OSO Money”), the trading name used by the regulated business providing foreign exchange and international payment services. The relevant regulated legal entity and applicable FSP details should be read together with the disclosures provided to you at onboarding and in the applicable Terms of Service.

The Terms of Service, this Statement and other related documents form an integral part of the contractual relationship between you and OSO Money. Please read these documents carefully before using the Services.

The Services involve financial, operational, market, regulatory and technology risks and may not be suitable for every individual or legal entity. This Statement provides general information and is not an exhaustive disclosure of every risk or circumstance that may arise. It does not take account of your personal circumstances, financial position, objectives or risk tolerance.

You should obtain independent professional advice where appropriate and should not use the Services solely on the basis of the risk factors described below.

1. Business Continuity Risk

OSO Money relies on operational processes, employees, banking and payment partners, technology systems, communications infrastructure and third-party service providers. Disruption, insolvency, failure, cyber incidents, regulatory intervention, market conditions or other events affecting OSO Money or a service provider may interrupt or delay the Services. OSO Money cannot guarantee uninterrupted availability or that every transaction will be completed within an expected timeframe.

2. Foreign Exchange / Fiat Currency Risk

Foreign exchange transactions involve the risk that the value of one fiat currency may move adversely against another currency between the time a transaction is instructed, priced, confirmed, funded or settled. Exchange rates can change rapidly as a result of economic conditions, interest rates, inflation, monetary policy, political developments, market sentiment, central-bank actions, capital flows and other factors.

A customer may receive less value in the destination currency than anticipated if the applicable exchange rate changes before a transaction is completed or if a quoted rate is subject to the conditions stated in the applicable transaction confirmation. Past exchange-rate movements are not a reliable indication of future performance.

Where funds are held in or converted between different fiat currencies, currency exposure may result in gains or losses when measured against another currency. A currency may also become temporarily illiquid, difficult to convert, subject to exchange controls, or unavailable through a particular payment corridor.

Certain currencies may be subject to local-market restrictions, banking cut-off times, correspondent-bank requirements, liquidity constraints, capital controls or regulatory restrictions. These factors may cause delays, additional costs, rejection of payments or changes to the available conversion route.

OSO Money does not guarantee that any exchange rate will remain available, that a particular currency pair will remain supported, or that a transaction will settle at an anticipated time. Customers are responsible for understanding the currency exposure associated with their transactions.

3. Payment and Settlement Risk

International payments can be affected by correspondent banks, beneficiary banks, payment networks, local clearing systems, public holidays, cut-off times, compliance checks, incorrect beneficiary information and other intermediaries. A payment may be delayed, rejected, returned or subject to additional charges. Funds may also be received later than anticipated.

Once payment instructions have been submitted, cancellation or amendment may not always be possible, particularly where the payment has already entered a banking or payment network.

4. Digital Asset / Digital Currency Risk

OSO Money may, now or in the future, make certain digital-asset-related services available, subject to applicable law, regulatory permissions, product terms and eligibility requirements. Digital assets are distinct from fiat currencies and may involve materially different risks.

Digital assets are generally not equivalent to legal tender, are not necessarily backed by a government or central bank, and may have no intrinsic or guaranteed value. Their value is determined by market demand and supply and may be highly volatile. A digital asset may lose a substantial portion or all of its value.

Digital-asset markets may be fragmented, illiquid, volatile or subject to sudden changes. There is no guarantee that an active market will exist when a customer wishes to buy, sell, transfer or otherwise transact in a digital asset.

5. Digital Asset Protocol and Technology Risk

Where a digital asset relies on a distributed network, blockchain or other underlying protocol, OSO Money does not control that underlying technology. Protocol changes, upgrades, forks, congestion, outages, validator or network failures, attacks, coding errors or other technical events may affect the availability, functionality, transferability or value of a digital asset.

A digital-asset transaction may be irreversible or may not be capable of being cancelled or amended after submission to the relevant network. Customers are responsible for ensuring that transaction instructions, addresses and other details are accurate.

6. Internet, Systems and IT Security Risk

Electronic services are subject to inherent risks associated with the internet and electronic communications, including delays, transmission failures, interruptions, data corruption, unauthorised access and system outages.

OSO Money and its service providers may be exposed to cyber-attacks, malicious software, phishing, fraud, denial-of-service attacks, compromised credentials and other cybersecurity threats. Although reasonable safeguards may be maintained, no electronic system can be guaranteed to be completely secure.

7. Legal and Regulatory Risk

Financial services, foreign exchange, international payments and, where applicable, digital assets are subject to laws and regulatory requirements that may change over time. Changes in legislation, regulation, regulatory interpretation, licensing requirements, sanctions regimes, exchange controls or payment-system rules may affect the availability, structure, pricing or legality of particular Services or transactions.

OSO Money may be required to restrict, suspend, delay or decline a transaction or Service where required by law, regulation, sanctions, anti-money laundering requirements, internal compliance policies or the requirements of a banking or payment partner.

8. AML, Sanctions and Compliance Risk

Transactions may be subject to customer due diligence, sanctions screening, fraud controls, source-of-funds checks and transaction monitoring. A transaction may be delayed, rejected, suspended or returned where information is incomplete, inconsistent or raises a compliance concern.

OSO Money may be unable to disclose certain details concerning compliance actions where disclosure would breach legal, regulatory or confidentiality obligations.

9. Liquidity and Market Risk

Foreign exchange markets generally provide substantial liquidity, but liquidity can vary significantly by currency, market, transaction size, time of day and prevailing market conditions. Less liquid currencies or unusual payment corridors may involve wider spreads, additional costs or delays.

Digital-asset markets, where applicable, can experience substantially greater volatility and liquidity risk. Prices may move rapidly and there may be periods when an asset cannot be bought or sold at an expected price or within an expected timeframe.

10. Price and Execution Risk

Rates displayed or communicated during the transaction process may be indicative or subject to the terms of the applicable quote. The final exchange rate, fees and settlement amount will be determined in accordance with the applicable transaction confirmation and contractual terms.

Market movements, delays in funding, banking cut-off times, payment processing and other factors may affect the price or amount ultimately received.

11. Payment Rejection / Return Risk

A fiat payment may be rejected or returned by OSO Money, a bank, correspondent bank, payment provider or other intermediary because of compliance requirements, incorrect information, account restrictions, sanctions, local banking rules or other reasons. Returned payments may be subject to fees, foreign exchange movements and processing delays.

Where digital-asset-related services are offered, digital-asset transactions may similarly be delayed, rejected or restricted where required by compliance controls, applicable law, network conditions or service-provider requirements.

12. Fraud and Security Risk

Customers may be exposed to fraud, impersonation, phishing, account compromise, payment-instruction fraud and other scams. Customers should verify payment instructions and beneficiary details independently and should never disclose passwords, authentication credentials or security codes to unauthorised persons.

Digital assets, where applicable, may carry additional risks because transactions can be irreversible and because compromised credentials or incorrect destination addresses may result in permanent loss.

13. Third-Party / Counterparty Risk

Some Services may depend on banks, payment institutions, correspondent banks, technology providers, compliance providers, liquidity providers or other third parties. A third party may experience operational failure, insolvency, regulatory restriction, cyber incidents, contractual disputes or other events that disrupt the Services or affect the processing of funds.

Customers should understand that OSO Money may not control the actions, systems or financial condition of third parties involved in a transaction.

14. Other Risks

There may be additional risks not identified in this Statement, including risks arising from circumstances that are unknown at the date of publication or that become material as the Services, markets, technology or regulatory environment develop.

Acknowledgement

As part of your assessment of the suitability of the Services, you acknowledge that you should conduct your own assessment and carefully consider the risks described in this Statement together with the Terms of Service, Privacy Policy, AML/KYC Policy and other applicable disclosures.

By using the Services, you acknowledge that you have had an opportunity to consider the risks associated with foreign exchange, fiat currency transactions, international payments and, where applicable, digital assets and related technologies. Nothing in this Statement constitutes a guarantee of performance, value, liquidity, availability or settlement.

Contact

For questions regarding this Risk Statement or the risks associated with the Services, please contact OSO Money at [email protected].

Address: Suite D1, Nautica Building, 13 Beach Road, Cape Town, Western Cape, 8005, Republic of South Africa