Risk Disclosure — Coinsfly

This Risk Disclosure is issued by Aurex Financial Technologies Inc., a corporation incorporated under the laws of British Columbia, Canada, Incorporation No. BC1535602, operating under the trading name Coinsfly.

Aurex Financial Technologies Inc. is registered as a Money Services Business, MSB, with the Financial Transactions and Reports Analysis Centre of Canada, FINTRAC, under registration number C100000967.

Registered office:

2-1130 Hachey Ave, Coquitlam, BC V3K 2H4, Canada

In this Risk Disclosure, “Coinsfly”, the “Company”, “we”, “us”, and “our” refer to Aurex Financial Technologies Inc. operating as Coinsfly. “User”, “Client”, “Merchant”, “you”, and “your” refer to any individual, business, merchant, merchant customer, applicant, account holder, or other person accessing or using Coinsfly services.

By accessing or using Coinsfly, creating an account, purchasing crypto, using card or wire payment methods, adding an external wallet, requesting a withdrawal, using the merchant gateway, or confirming any transaction, you acknowledge that you have read, understood, and accepted this Risk Disclosure.

1. Purpose of this Risk Disclosure

This Risk Disclosure explains important risks associated with using Coinsfly and interacting with digital assets, fiat-to-crypto purchase services, wallet whitelisting, crypto withdrawals, merchant gateway payments, card payments, wire transfers, blockchain networks, liquidity providers, and third-party service providers.

This document does not describe every possible risk. Other risks may exist now or arise in the future.

You should not use Coinsfly unless you understand the risks and can bear potential losses, including total loss of funds.

2. No Investment, Financial, Legal, or Tax Advice

Coinsfly does not provide investment advice, financial advice, legal advice, tax advice, portfolio management, trading advice, asset recommendations, or investment strategy recommendations.

Any information shown on the Coinsfly website, dashboard, market ticker, quote screen, transaction page, merchant gateway, support channel, email, or marketing material is provided for informational purposes only.

Nothing on Coinsfly should be interpreted as:

A recommendation to buy, sell, hold, transfer, or use any digital asset;
An investment recommendation;
A financial promotion;
A solicitation;
Legal advice;
Tax advice;
A guarantee of profit;
A guarantee of asset value;
A guarantee of liquidity;
A guarantee of successful transaction execution.

You are solely responsible for your decisions and should obtain independent professional advice where appropriate.

3. FINTRAC Registration Is Not an Endorsement

Coinsfly is registered with FINTRAC as an MSB. This registration means the company has fulfilled the legal requirement to register with the federal government as a money services business. It does not mean that FINTRAC endorses, licenses, supervises for investment safety, guarantees, approves, or recommends Coinsfly or any Coinsfly service.

FINTRAC registration does not mean that:

Coinsfly is a bank;
Coinsfly is a securities dealer;
Coinsfly is an investment adviser;
Coinsfly is a government-backed institution;
Coinsfly services are risk-free;
Digital assets are protected by government insurance;
Digital assets are suitable for every user.

4. Digital Assets Are High Risk

Digital assets are high-risk assets. Their value can rise or fall rapidly and unpredictably. The Canadian Securities Administrators warn that crypto assets are very risky, and users may lose some or all of their original investment.

You may suffer losses because of:

Market volatility;
Liquidity shortages;
Technology failures;
Blockchain network failures;
Regulatory changes;
Cyberattacks;
Fraud;
User error;
Provider failure;
Incorrect wallet addresses;
Wrong network selection;
Stablecoin depegging;
Delayed execution;
Account restrictions;
Compliance holds;
Merchant disputes;
Tax consequences.

You should use Coinsfly only with funds you can afford to lose.

5. Volatility Risk

Crypto prices may fluctuate significantly within seconds or minutes.

Price changes may be caused by:

Supply and demand;
Market sentiment;
Liquidity conditions;
News events;
Regulatory announcements;
Exchange outages;
Stablecoin events;
Protocol changes;
Security incidents;
Large market participants;
Global economic events;
Political events;
Technology upgrades;
Network congestion.

Coinsfly is not responsible for losses caused by price movement before, during, or after a transaction.

6. Total Loss Risk

Digital assets may lose all or substantially all of their value.

There is no guarantee that any crypto asset supported by Coinsfly will maintain value, market demand, liquidity, issuer support, network support, convertibility, or usability.

You may lose the full value of crypto purchased through Coinsfly.

7. No Deposit Insurance or Investor Protection

Digital assets are not deposits. Digital assets are not legal tender in Canada. Digital assets and crypto balances are not protected by the Canada Deposit Insurance Corporation, CDIC, the Canadian Investor Protection Fund, CIPF, or any other government-backed deposit or investor protection scheme. The competitor disclosure uses the same core warning that digital assets are not covered by CDIC, CIPF, or other deposit insurance schemes.

You should not assume that any loss will be reimbursed by a government agency, insurer, compensation fund, financial institution, or Coinsfly.

8. No Bank Account or Banking Service Risk

Coinsfly is not a bank and does not provide general banking services.

Any fiat payment method, multi-currency account option, payment account, vIBAN, deposit option, card flow, wire instruction, or payment rail made available through Coinsfly is provided only to support Coinsfly crypto purchase or merchant gateway services.

Such services may depend on third-party banks, payment institutions, acquirers, payment processors, or payment providers.

You may experience:

Payment delays;
Rejected payments;
Frozen payments;
Account closure;
Payment provider refusal;
Returned wires;
Additional provider fees;
Correspondent banking fees;
Missing payment references;
Currency conversion differences;
Provider compliance review.

9. Fiat-to-Crypto Conversion Risk

When you buy crypto using card or wire, the final amount of crypto you receive may differ from the estimate shown before execution.

This may happen because of:

Market price movement;
Quote expiry;
Liquidity provider pricing;
Payment delay;
Wire delay;
Card authorization delay;
Provider execution delay;
FX conversion;
Network fees;
Spread or margin;
Compliance review;
Minimum or maximum limits;
Failed or rejected payments.

A displayed quote may be indicative until final execution, unless Coinsfly clearly states that the quote has been confirmed.

10. Card Payment Risk

Card payments may be declined, delayed, reversed, charged back, or held by the card issuer, acquirer, payment processor, fraud system, or Coinsfly.

Card-related risks include:

Card issuer rejection;
Acquirer rejection;
Card fraud screening;
Name mismatch;
Third-party card prohibition;
Payment authorization delays;
Temporary holds;
Chargebacks;
Duplicate authorizations;
Card network fees;
Card currency conversion costs;
Higher fraud review;
Delayed crypto delivery;
Withdrawal holding periods.

Coinsfly may restrict, delay, cancel, or reject card-funded transactions where required for fraud prevention, compliance, provider rules, or risk controls.

11. Wire Transfer Risk

Wire transfers may be delayed, rejected, returned, or credited late.

Wire-related risks include:

Incorrect payment reference;
Incorrect beneficiary details;
Wrong currency;
Wrong amount;
Missing information;
Third-party sender;
Correspondent bank delay;
Bank cut-off times;
Weekends and holidays;
Provider compliance review;
Currency conversion costs;
Bank fees;
Payment recall;
Fraud review;
Delayed execution;
Quote recalculation after funds arrive.

Coinsfly is not responsible for losses caused by bank delays, wrong payment instructions, missing references, late funds, or provider rejection.

12. Third-Party Provider Risk

Coinsfly may rely on third-party providers, including:

Banks;
Payment providers;
Card acquirers;
Card processors;
Open banking providers;
vIBAN/account providers;
KYC/KYB providers;
AML and wallet screening providers;
Blockchain analytics providers;
Liquidity providers;
RPC providers;
Cloud infrastructure providers;
Email and SMS providers;
Support tools;
Security tools.

Third-party providers may experience outages, delays, errors, insolvency, regulatory restrictions, service termination, pricing changes, liquidity issues, security incidents, or compliance holds.

Coinsfly is not responsible for third-party failures except where required by applicable law.

13. Liquidity Provider Risk

Coinsfly may use liquidity providers to quote and execute fiat-to-crypto conversions.

Liquidity provider risks include:

Insufficient liquidity;
Quote rejection;
Execution delay;
Price slippage;
Spread widening;
Market disruption;
Suspended trading;
Failed settlement;
Provider insolvency;
Provider API outage;
Incorrect provider data;
Asset unavailability;
Payment delay;
Regulatory restriction.

If a liquidity provider is unavailable or unable to execute, Coinsfly may delay, reject, cancel, or reprice the transaction.

14. Slippage and Quote Risk

A quote may not represent the final executed price.

Slippage may occur due to:

Fast market movement;
Low liquidity;
Large order size;
Provider delay;
Network delay;
Order queue delay;
Wire payment timing;
Card settlement timing;
Manual review;
Compliance hold.

Coinsfly does not guarantee that execution will occur at the displayed indicative rate unless expressly confirmed.

15. Spread, Fee, and Cost Risk

Coinsfly may charge fees, spreads, margins, network fees, provider costs, or other charges.

Some costs may be:

Displayed separately;
Included in the quote;
Embedded in the exchange rate;
Deducted from the amount paid;
Deducted from the amount received;
Charged by a third party.

Third-party fees may include:

Bank fees;
Card fees;
Acquirer fees;
Liquidity provider costs;
Correspondent bank fees;
FX fees;
Blockchain network fees;
Gas fees;
Provider processing fees.

The final economic result may differ from the apparent market price.

16. Blockchain Irreversibility Risk

Blockchain transactions are generally irreversible. If crypto is sent to the wrong address, wrong network, unsupported wallet, scam wallet, compromised wallet, or unintended recipient, the transaction may be impossible to recover. The competitor disclosure also warns that blockchain transactions are permanent and that assets sent to incorrect external addresses may not be recoverable.

You are solely responsible for checking:

Crypto asset;
Network;
Wallet address;
Destination wallet;
Merchant wallet;
Amount;
Network fee;
Transaction summary;
Confirmation screen.

Once a transaction is broadcast to a blockchain, Coinsfly may not be able to cancel, reverse, refund, or recover it.

17. Wrong Network Risk

Sending crypto through the wrong blockchain network may cause permanent loss.

For example:

BTC must be sent only through supported Bitcoin network flows;
ETH must be sent only through supported Ethereum network flows;
USDC must be sent only through supported Ethereum/ERC-20 flows unless another network is expressly supported.

Coinsfly is not responsible for loss caused by selecting or using the wrong network.

18. Wallet Whitelisting Risk

Coinsfly requires external wallets to be whitelisted before withdrawals.

Wallet whitelisting reduces risk but does not eliminate risk.

A wallet may pass screening and still be:

Controlled by a third party;
Controlled by a scammer;
Compromised;
Incompatible;
Blocked by another platform;
Later associated with risk;
Later rejected by compliance;
Unable to receive a specific asset;
Incorrectly entered by the user.

Coinsfly may approve, reject, disable, or remove a wallet at any time based on AML screening, sanctions, compliance review, fraud controls, or internal policy.

19. Wallet Ownership Risk

You are responsible for ensuring that any external wallet added to Coinsfly is owned or controlled by you, unless Coinsfly expressly permits another arrangement.

Coinsfly is not responsible if you whitelist or withdraw to:

A wallet controlled by a scammer;
A wallet controlled by a merchant;
An exchange wallet that requires memo/tag details;
A wallet you cannot access;
A wallet linked to prohibited activity;
A wallet that later becomes restricted;
A wallet address copied incorrectly.

20. Custody and Internal Ledger Risk

Coinsfly may maintain an internal ledger and its own wallet infrastructure for supported crypto assets.

Your displayed balance is a ledger record maintained by Coinsfly and is subject to:

Reconciliation;
Compliance restrictions;
Withdrawal rules;
Network confirmations;
Internal controls;
Operational wallet availability;
Treasury wallet controls;
Security controls;
Audit review;
Technical systems.

Coinsfly may move assets between operational wallets, treasury wallets, gas wallets, liquidity wallets, or other wallets for security, liquidity, settlement, operational, or technical reasons.

No custody model is completely risk-free.

21. Private Key and Security Risk

Where Coinsfly controls platform wallets, users do not receive private keys for those platform wallets.

Where users withdraw to external wallets, users are responsible for securing their own wallets, private keys, seed phrases, devices, and recovery methods.

If you lose your private keys, seed phrase, wallet access, device, email, phone, or authentication credentials, assets may be permanently lost.

Coinsfly will never ask for your seed phrase or private key.

22. Cybersecurity Risk

Digital asset platforms, users, wallets, payment providers, and blockchain infrastructure may be targeted by cyberattacks.

Risks include:

Account takeover;
Phishing;
SIM swap attacks;
Malware;
Social engineering;
Fake support scams;
Fake websites;
Browser extensions;
Device compromise;
Credential theft;
API abuse;
Smart contract exploits;
Wallet compromise;
Cloud infrastructure attacks.

Coinsfly applies security controls, but no system can guarantee absolute security.

23. User Credential Risk

You are responsible for keeping your account credentials secure.

Losses may occur if:

Your email is compromised;
Your phone number is compromised;
You share OTP codes;
You reuse passwords;
You use weak passwords;
Your device is infected;
You click phishing links;
You allow remote access;
You fail to log out;
You whitelist a scam wallet;
You confirm a malicious transaction.

Coinsfly is not responsible for losses caused by your failure to protect credentials, OTPs, devices, wallets, or accounts.

24. OTP and 2FA Risk

Coinsfly may require Email OTP and SMS OTP for sensitive actions.

OTP systems reduce risk but may still be vulnerable to:

SIM swap attacks;
Email compromise;
Mobile provider failures;
Delayed messages;
Incorrect phone numbers;
Malware;
Phishing;
Social engineering;
Unauthorized access.

You must never share OTP codes with anyone.

25. Compliance Hold and Account Restriction Risk

Coinsfly may delay, restrict, reject, freeze, block, cancel, or review transactions and accounts for compliance, AML/CTF, sanctions, fraud prevention, source of funds, source of wealth, wallet risk, merchant risk, or provider reasons.

This may occur even after a payment is made or after crypto is purchased.

Coinsfly may be legally restricted from explaining the reason for certain compliance actions.

You may experience loss, delay, price movement, missed opportunity, or inability to access services due to compliance review.

26. Sanctions and Prohibited Jurisdiction Risk

Coinsfly may refuse or restrict services based on sanctions, jurisdiction, nationality, residence, location, IP address, provider rules, or internal risk policy.

If you attempt to use Coinsfly from a restricted jurisdiction, through a VPN, proxy, TOR, false identity, or inaccurate location data, Coinsfly may suspend or terminate your account.

Funds or transactions may be blocked, frozen, rejected, returned, or reported where required.

27. PEP and Eligibility Risk

Coinsfly may screen users, businesses, merchants, representatives, and beneficial owners for PEP and HIO status.

Coinsfly’s current policy is that if PEP = Yes, Coinsfly will not be able to offer services.

If PEP status is detected after registration, Coinsfly may reject, suspend, restrict, or close the account and cancel pending transactions.

28. Source of Funds and Account Limit Risk

Coinsfly may assign account limits based on your Source of Funds, Source of Wealth, verification status, activity, risk profile, and provider requirements.

If you reach your limit, you may be unable to:

Buy crypto;
Use account options;
Generate new account options;
Withdraw crypto;
Use merchant gateway services;
Complete pending transactions.

You may be required to upload updated documents. Coinsfly may increase, reduce, maintain, or remove limits at its discretion after review.

29. Merchant Gateway Risk

Coinsfly may provide merchant gateway services through unique merchant payment links.

If you use a merchant gateway, you understand that:

Coinsfly is not the seller of goods or services;
Coinsfly does not guarantee merchant delivery;
Coinsfly does not guarantee product quality;
Coinsfly does not guarantee merchant refund policy;
Coinsfly does not guarantee merchant legality;
Coinsfly is not responsible for merchant representations;
Merchant payments may be final once crypto is sent;
Merchant disputes must generally be resolved with the merchant.

Before confirming payment, you must review whether crypto will be sent to the merchant wallet or credited to your own Coinsfly account, where available.

30. Merchant Business Risk

Merchants using Coinsfly accept additional risks, including:

Customer disputes;
Chargebacks;
Recalls;
Refund obligations;
Payment delays;
Gateway suspension;
Compliance review;
Customer verification failure;
Provider rejection;
Account restrictions;
Frozen funds;
Merchant link revocation;
Reputational risk;
Legal obligations toward customers.

Coinsfly may suspend or revoke merchant access if merchant activity creates unacceptable risk.

31. Chargeback and Recall Risk

Card payments, bank payments, merchant payments, and certain fiat payment flows may be subject to chargebacks, recalls, disputes, or reversals.

Chargebacks or recalls may result in:

Account restriction;
Merchant reserve;
Frozen balance;
Gateway suspension;
Refund review;
Recovery of losses;
Additional fees;
Termination of services.

Coinsfly may deduct amounts owed from balances or future settlements where permitted by agreement and law.

32. Stablecoin Risk

Coinsfly may support stablecoins such as USDC.

Stablecoins are not risk-free.

Stablecoin risks include:

Loss of peg;
Issuer insolvency;
Reserve risk;
Redemption suspension;
Smart contract risk;
Blacklisting or freezing by issuer;
Regulatory restriction;
Blockchain congestion;
Liquidity shortage;
Market confidence loss.

A stablecoin may not always equal one unit of the fiat currency it references.

33. Network Fee and Gas Risk

Blockchain transactions require network fees.

Network fees may change rapidly and may be high during congestion.

Network fees may apply even if:

A transaction fails;
A transaction is delayed;
A transaction is cancelled after submission;
A withdrawal is attempted;
A provider charges a fee;
A recovery process is attempted.

Coinsfly is not responsible for changes in network fees.

34. Blockchain Network Risk

Blockchain networks may experience:

Congestion;
Forks;
Chain reorganizations;
Validator or miner issues;
Bugs;
Exploits;
Attacks;
Delays;
High fees;
Outages;
Failed transactions;
Smart contract vulnerabilities;
Protocol changes.

Coinsfly does not control public blockchain networks.

35. Forks, Airdrops, and Network Events

A blockchain may undergo a fork, airdrop, migration, upgrade, token split, redenomination, or other network event.

Coinsfly may decide whether to support, ignore, suspend, delay, or reject such events.

Coinsfly does not guarantee that you will receive forked assets, airdropped assets, staking rewards, voting rights, governance rights, or other network benefits.

36. Asset Support Risk

Coinsfly may add, remove, suspend, restrict, or stop supporting any fiat currency, crypto asset, network, payment method, or provider at any time.

If an asset becomes unsupported, Coinsfly may require you to withdraw, convert, or otherwise dispose of the asset within a stated period, subject to compliance and technical ability.

Coinsfly is not responsible for losses caused by asset delisting, suspension, or provider restriction, except where required by law.

37. Market Data Risk

Market prices, charts, quotes, ticker data, conversion estimates, and asset information may be delayed, inaccurate, incomplete, unavailable, or provided by third parties.

Coinsfly does not guarantee market data accuracy.

You should not rely solely on displayed market data for financial decisions.

38. Operational Risk

Coinsfly systems may be affected by:

Software bugs;
Server outages;
Database errors;
API failures;
Wallet infrastructure issues;
Cloud provider downtime;
Maintenance;
Deployment errors;
Security updates;
Provider outages;
Connectivity issues;
Human error;
Reconciliation delays.

Services may be unavailable or delayed.

39. Mobile, Browser, and Device Risk

Using Coinsfly through mobile browsers, desktop browsers, or connected devices involves risks including:

Browser vulnerabilities;
Device compromise;
Public Wi-Fi interception;
Fake websites;
Phishing links;
Screen-sharing scams;
Browser extension risks;
Malware;
Autofill mistakes;
Clipboard address replacement attacks.

You should access Coinsfly only through official channels and protect your devices.

40. Password Reset and Withdrawal Restriction Risk

After a password reset, Coinsfly may restrict withdrawals and certain sensitive actions for security reasons.

For example, withdrawals may be restricted for 24 hours after a password update.

This security hold is designed to reduce account takeover risk but may delay access to funds or transactions.

41. Tax Risk

Crypto-asset transactions may create tax obligations. The Canada Revenue Agency states that crypto-asset users must report earnings or losses on income tax returns and may have GST/HST obligations in certain circumstances.

You are solely responsible for:

Determining your tax obligations;
Reporting transactions;
Keeping records;
Calculating gains or losses;
Paying taxes;
Seeking tax advice.

Coinsfly does not provide tax advice and does not guarantee that transaction reports are sufficient for your tax purposes.

42. Legal and Regulatory Risk

Digital asset laws and regulatory expectations may change in Canada and internationally.

Legal or regulatory changes may affect:

Service availability;
Asset availability;
Payment methods;
Wallet withdrawals;
Merchant services;
Verification requirements;
Account limits;
Reporting obligations;
Taxes;
Fees;
Processing times;
User eligibility;
Platform access.

Coinsfly may change, restrict, suspend, or terminate services to comply with law, regulatory guidance, provider requirements, or internal risk policy.

43. Securities Law Risk

Some digital assets or crypto-related arrangements may be considered securities or derivatives under Canadian securities laws depending on facts and circumstances.

The Canadian Securities Administrators state that crypto asset trading platforms may be subject to securities legislation where crypto assets that are securities or derivatives are traded on the platform.

Coinsfly may restrict, remove, refuse, or modify services if an asset, activity, or transaction raises securities law concerns.

44. User Responsibility

You are responsible for:

Understanding crypto risks;
Reading transaction details;
Selecting the correct asset;
Selecting the correct network;
Entering correct wallet addresses;
Protecting credentials;
Protecting OTPs;
Keeping contact details updated;
Maintaining wallet security;
Understanding tax obligations;
Complying with applicable law;
Ensuring transactions are lawful;
Reviewing merchant payment destinations;
Confirming payment instructions before sending funds.

Failure to act carefully may result in permanent loss.

45. No Guaranteed Availability

Coinsfly may suspend or restrict services during:

Maintenance;
Extreme volatility;
Security incidents;
Compliance reviews;
Provider outages;
Network congestion;
Liquidity shortages;
Force majeure events;
Legal or regulatory requirements.

After service resumes, prices and conditions may differ from those available before suspension. The competitor risk disclosure includes a similar market-disruption warning that services may be suspended or restricted during volatility, technical failure, or force majeure, and that prices may differ after resumption.

46. Limitation of Liability

To the maximum extent permitted by applicable law, Coinsfly, Aurex Financial Technologies Inc., its directors, officers, employees, contractors, agents, affiliates, and service providers will not be liable for any indirect, incidental, consequential, special, punitive, exemplary, or economic losses, including:

Loss of profits;
Loss of opportunity;
Loss of revenue;
Loss of goodwill;
Loss of data;
Market losses;
Price movement losses;
Blockchain losses;
User error losses;
Provider failure losses;
Security breach losses caused by user negligence;
Merchant dispute losses;
Tax losses.

Nothing in this Risk Disclosure excludes liability that cannot be excluded under applicable law.

47. Relationship with Other Legal Documents

This Risk Disclosure should be read together with:

Terms & Conditions;
Privacy Policy;
AML, KYC & Sanctions Policy;
Refund & Cancellation Policy;
Complaints Procedure;
Law Enforcement Requests Policy;
Our Fees page;
Merchant Terms, where applicable;
Any transaction-specific disclosure shown before confirmation.

If there is any conflict between this Risk Disclosure and mandatory applicable law, mandatory applicable law will apply.

48. Changes to this Risk Disclosure

Coinsfly may update this Risk Disclosure at any time to reflect:

Product changes;
Legal changes;
Regulatory guidance;
Provider changes;
Security issues;
New assets;
New networks;
New payment methods;
Market developments;
Operational experience;
Risk management updates.

The updated version will be posted on the Coinsfly website with a revised effective date.

Continued use of Coinsfly after an updated Risk Disclosure becomes effective means you acknowledge the updated Risk Disclosure.

49. Contact Information

For questions about this Risk Disclosure, contact:

Aurex Financial Technologies Inc., operating as Coinsfly

Attn: Risk & Compliance Department

Registered Office: 2-1130 Hachey Ave, Coquitlam, BC V3K 2H4, Canada

Compliance: compliance@coinsfly.org

Support: support@coinsfly.org

Legal: legal@coinsfly.org

50. Final Acknowledgment

By accessing or using Coinsfly, creating an account, purchasing crypto, using card or wire payment methods, adding a wallet, requesting a withdrawal, using a merchant gateway, confirming a transaction, or continuing to use the platform, you confirm that you have read, understood, and accepted this Risk Disclosure.

You understand that digital assets are high risk, may be volatile, may lose all value, may not be recoverable if sent incorrectly, are not protected by deposit insurance, and should be used only after careful consideration of your own circumstances.