RISK WARNING

Walletix Inc. (herein referred to as “Walletix”, “us”, “we” or “our”) operates this website and managed custodial application (collectively, “the Service”). We are a United States-based technology provider committed to maintaining the highest standards of financial integrity and security. In line with our commitment to transparency, we provide these disclosures to help you understand the significant risks associated with digital assets. For more detailed guidance, please visit our US Help Center.

‍

What are Digital Assets?

Digital Assets (including cryptocurrencies and stablecoins) are high-risk financial technologies that operate differently from traditional bank-held assets. Before using Walletix to manage your private keys, you must understand that digital asset markets are highly volatile and largely speculative. We strongly encourage you to educate yourself on the technical and market risks below and never deposit or invest money that you cannot afford to lose.

‍

Mandatory US Risk Disclosures

• No FDIC or SIPC Insurance: Unlike funds held in a US bank or a traditional brokerage, digital assets held in your Walletix vault are not insured by the Federal Deposit Insurance Corporation (FDIC) or the Securities Investor Protection Corporation (SIPC). Your assets are not backed by the full faith and credit of the US government.
• Custodial Risk: Walletix provides a managed custodial service, meaning we generate and secure the private keys on your behalf. While we implement enterprise-grade Hardware Security Modules (HSMs), any compromise of our internal security infrastructure or your individual login credentials could result in the permanent loss of access to your assets.
• Market Volatility: The value of digital assets can fluctuate significantly in a very short period. Assets may lose all value. Walletix does not provide investment advice and is not responsible for any financial losses resulting from market movements.
• Regulatory Uncertainty: The legal and regulatory framework for digital assets in the United States is rapidly evolving. Changes in federal or state laws (including SEC, CFTC, or FinCEN regulations) may impact our ability to provide certain services or your ability to access or transfer your assets.
• Irreversibility of Transactions: Most blockchain transactions are permanent. Once you authorize a transfer from your Walletix vault to an external address, it cannot be canceled or reversed by Walletix.

‍

What are the risks associated with holding, trading, or dealing in Digital Assets?

Dealing in Digital Assets involves substantial risks. While not exhaustive, the following list highlights critical risks you must acknowledge before using Walletix services:

1. Irreversibility and Loss of Access
   Most blockchain transactions are permanent and irreversible. Walletix will not be liable for losses if:
   • You authorize a transfer to an incorrect or incompatible wallet address;
   • You send an incorrect amount of Digital Assets;
   • Your individual account credentials are compromised due to your negligence.
   As a custodial provider, Walletix manages your keys, but we cannot "reverse" a transaction once it has been broadcast to the network.
2. Market Volatility
   The price of Digital Assets is highly unpredictable relative to the US Dollar. Buying or holding digital assets can result in a total loss of principal. Walletix bears no responsibility for losses incurred due to market swings, including during periods where your account may be temporarily restricted for mandatory US compliance reviews or security audits.
3. No FDIC or SIPC Protection
   Digital Assets held in your Walletix vault are not legal tender and are not backed by any government. Unlike a traditional US bank account, your balances are not insured by the Federal Deposit Insurance Corporation (FDIC) or the Securities Investor Protection Corporation (SIPC).
4. US Tax Obligations (Form 1099-DA)
   In accordance with IRS regulations effective 2026, Walletix may be required to issue Form 1099-DA reporting your gross proceeds and cost basis. You are solely responsible for calculating and paying any taxes due on capital gains. Walletix may be required to implement backup withholding if a valid Taxpayer Identification Number (TIN) is not provided.
5. Regulatory and Legal Shifts
   Digital asset regulation in the United States is rapidly evolving. Actions by federal agencies (such as the SEC, CFTC, or FinCEN) or changes in state laws may materially impact the value, legality, or transferability of the assets held in your vault.
6. Custodial and Technical Risk
   While we use enterprise-grade security, the nature of digital assets means that technical difficulties, cyber-attacks, or "forks" in a blockchain protocol may prevent access to your assets. Walletix acts as a custodian; however, we do not guarantee the underlying software protocols of the assets we support.
7. Asset Backing and Redemption
   Many digital assets are not backed by physical assets or land. Furthermore, "stablecoins" may not always maintain a 1:1 peg with the US Dollar due to fluctuations in their underlying reserves. Neither Walletix nor any central authority has an obligation to buy back your digital assets.