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This disclosure provides information about material risks associated with digital assets made available through Zeam. Digital assets can differ significantly in structure, backing, governance, and risk profile. This disclosure is intended to help users understand those differences and the associated risks.
This disclosure is informational only and does not constitute financial advice, investment advice, a prospectus, an offer to sell, or a solicitation to acquire any digital asset. Users should assess whether digital assets are appropriate for their circumstances and should seek independent professional advice where appropriate.
Where this disclosure, or the Zeam Website generally, refers to “digital assets,” it includes products that are regulated as crypto assets.
Zeam may support multiple categories of digital assets, including but not limited to the following:
Not all digital assets offered through Zeam are reserve-backed, and not all reserve-backed tokens share the same legal structure, redemption terms, or reserve arrangements. Asset-specific disclosures should be reviewed where available.
Digital asset prices may be highly volatile and can change rapidly due to market sentiment, liquidity conditions, macroeconomic developments, technological changes, or regulatory actions. Users may experience significant losses, including the loss of the full value of their holdings.
Digital asset markets do not always operate smoothly. At times, there may be limited buyers or sellers, or trading may occur across different platforms with varying conditions.
As a result, users may not always be able to buy, sell, transfer, or redeem a digital asset immediately, or within expected timeframes. In volatile or illiquid market conditions, prices may change between the time an instruction is submitted and when it is completed, which means the price displayed may not be the price at which the transaction is completed.
During periods of market volatility or stress, transaction costs may increase, prices may be less consistent across platforms, and normal market activity may be disrupted for a period.
Digital assets depend on technology and third-party systems to function. Technical failures, software changes, network congestion, system outages, or operational errors may occur. If this happens, transactions or settlements may be delayed, disrupted, or unable to be completed.
Digital assets and related systems are exposed to cybersecurity threats, including hacking, fraud, phishing, malware, credential compromise, insider threats, and failures at third-party service providers. Cyber incidents may result in partial or total loss of assets.
The legal and regulatory treatment of digital assets varies by jurisdiction and continues to evolve. Changes in law, regulation, or supervisory expectations may affect the availability, transferability, redemption, or legal characterisation of digital assets and related services.
Where a digital asset is described as reserve-backed, it is intended to reference reserve assets held for backing purposes. Reserve-backed tokens are subject to additional and distinct risks.
Reserve-backed tokens depend on the adequacy, valuation, and availability of reserve assets. Risks include valuation errors, delays in accessing reserves, legal disputes over ownership or priority, and constraints on liquidating reserve assets under stressed conditions.
Even where reserves include cash or short-term investments, there is a risk that the bank or issuer holding these assets may be unable to meet obligations. Transactions may be delayed or fail, and during periods of market stress, there may not be enough liquid assets to allow immediate redemptions.
Reserve-backed arrangements may rely on custodians, banks, settlement agents, or other third-party service providers. Risks include the insolvency or failure of such service providers, operational disruptions, fraud, and errors that may result in assets not being properly separated or correctly recorded. Access to assets may also be limited during emergency situations.
Redemption of reserve-backed tokens may be subject to eligibility requirements, compliance checks, minimum amounts, fees, cut-off times, and processing timelines. During stressed market conditions, redemption may be delayed or temporarily restricted due to liquidity, operational, or compliance constraints.
Reserve-backed arrangements rely on effective governance, controls, and oversight to manage conflicts of interest, prevent the misuse of reserve assets, and support accurate and reliable reporting.
If governance arrangements are weak or fail, there is an increased risk that reserves may be insufficient, used for unintended purposes, or not accurately reported, which may negatively affect users.
Independent audits and attestations can enhance transparency but do not eliminate risk. The scope, timing, and methodology of verification processes vary, and a verification report does not guarantee the absence of future losses, disputes, or operational failures.
Decentralised cryptocurrencies generally have no issuer and no reserve backing. Their value is market-based and may be highly volatile. Transactions may be irreversible, and mistaken transfers may not be recoverable. Users may also experience variable transaction confirmation times and fees.
Where on-chain addresses are disclosed for transparency purposes, such disclosure provides visibility but does not, by itself, establish all relevant liabilities, controls, or legal rights.
User responsibilities vary depending on the custody model applicable to a particular digital asset or service.
Users should exercise caution, use strong authentication, remain alert to scams, and verify transaction details before transferring digital assets.
Digital asset transactions may be subject to anti-money laundering, counter-terrorist financing, sanctions, fraud prevention, and other compliance controls. Transactions may be delayed, restricted, or rejected where required by law or risk management procedures. Users may be required to provide information to support compliance reviews.
Digital assets are not equivalent to bank deposits and are generally not protected by deposit insurance schemes. Users should not assume they have the same protections, rights, or recourse as they would with traditional bank accounts or regulated investment products.
This disclosure should be read together with any asset-specific disclosures, terms of service, and high-level information on reserves and governance available at https://zeam.money/reserves-and-governance. In the event of inconsistency, asset-specific terms may prevail.
This disclosure may be updated from time to time to reflect changes in law, regulation, market conditions, or operational practices. Users should review the most current version available on Zeam’s website.