Digital Asset Risk Disclosure

1. Purpose of This Disclosure

This Digital Asset Risk Disclosure explains important risks associated with digital assets, cryptoassets, virtual assets, blockchain networks, wallets, digital asset transactions, crypto-fiat exchange, crypto-crypto exchange, on/off-ramp services, settlement flows and related services.

This Disclosure is not exhaustive. Digital assets involve risks that may not be described in this document, including risks that are unknown, evolving, newly regulated, newly discovered or specific to a particular asset, network, wallet, transaction, jurisdiction, service provider or market condition.

You should read this Disclosure carefully before using any Goat Finance service involving digital assets.

You should not use Goat Finance services involving digital assets unless you understand and accept the risks described in this Disclosure.

2. No Advice

Goat Finance does not provide investment, financial, legal, tax, accounting, regulatory or trading advice unless expressly agreed in a separate written agreement.

Any information provided by Goat Finance about digital assets, prices, execution, settlement, networks, wallets, liquidity, providers or transactions is provided for operational or informational purposes only.

You are responsible for determining whether any digital asset, transaction, service, wallet, network or product is appropriate for you.

You should obtain independent professional advice where necessary.

3. Digital Assets Are High Risk

Digital assets are high-risk assets.

You may lose some or all of the value of any digital asset or fiat currency involved in a digital asset transaction.

Digital asset prices may rise or fall rapidly, including within minutes or seconds.

You should not use Goat Finance services to buy, sell, exchange, transfer or receive digital assets unless you can afford to bear the risk of loss.

4. Price Volatility Risk

Digital asset prices can be highly volatile.

Prices may be affected by:

1. market demand;

2. liquidity;

3. market sentiment;

4. regulatory announcements;

5. enforcement action;

6. exchange outages;

7. blockchain network congestion;

8. forks or protocol changes;

9. security incidents;

10. stablecoin depegging;

11. fraud or market manipulation;

12. macroeconomic events;

13. operational failures;

14. sudden market movements.

The value of a digital asset may drop significantly or become worthless.

Past performance is not a reliable indicator of future performance.

5. Liquidity Risk

Digital assets may have limited liquidity.

You may not be able to buy, sell, exchange or settle a digital asset at the price you expect, at the time you expect, or at all.

Liquidity may deteriorate quickly during periods of market stress, network congestion, regulatory uncertainty, exchange disruption or abnormal trading activity.

Goat Finance may be unable to execute or settle a transaction if sufficient liquidity is unavailable or if execution would fall outside applicable risk, compliance, partner or operational limits.

6. Execution, Quote and Rate Risk

Quotes, rates, spreads and execution conditions may change rapidly.

A quoted rate may not be available indefinitely.

A transaction may be subject to:

1. market movement;

2. price slippage;

3. spread changes;

4. liquidity changes;

5. execution delay;

6. settlement delay;

7. banking or payment delay;

8. compliance review;

9. blockchain network delay;

10. partner or provider restrictions.

Unless expressly stated otherwise in the applicable Product Terms or transaction confirmation, Goat Finance does not guarantee that a quote, price, rate or execution condition will remain available after the relevant validity period or after market conditions change.

7. Irreversible Transaction Risk

Digital asset transactions may be irreversible once broadcast, confirmed or settled on a blockchain network.

If you provide an incorrect wallet address, select the wrong network, send the wrong asset, send to an unsupported address, or otherwise make an error, the transaction may be impossible to reverse or recover.

Goat Finance may be unable to recover digital assets sent to:

1. an incorrect wallet address;

2. an unsupported blockchain network;

3. an incompatible wallet;

4. a smart contract address;

5. a sanctioned or blocked address;

6. a frozen or restricted address;

7. an address outside Goat Finance’s control;

8. an address that cannot receive the relevant asset.

You are responsible for ensuring that all wallet addresses, networks, payment details and transaction instructions are accurate and compatible.

8. Wallet and Private Key Risk

Digital assets may be controlled through wallets, private keys, seed phrases, passwords, devices or other access credentials.

If you lose access to your wallet, private key, seed phrase, password, device or authentication method, you may permanently lose access to your digital assets.

If your wallet or credentials are compromised, your digital assets may be stolen or transferred without your authorization.

Goat Finance is not responsible for losses resulting from your failure to secure your own wallet, device, credentials, email account, communication channel or authentication method.

9. Network and Blockchain Protocol Risk

Digital assets rely on blockchain networks, validators, miners, nodes, smart contracts, protocols and other decentralized or third-party infrastructure.

These networks and protocols may be affected by:

1. congestion;

2. high fees;

3. delayed confirmations;

4. failed transactions;

5. protocol bugs;

6. consensus failures;

7. chain reorganizations;

8. forks;

9. validator or miner concentration;

10. governance disputes;

11. software vulnerabilities;

12. network attacks;

13. bridge failures;

14. oracle failures;

15. changes to network rules.

Goat Finance does not control blockchain networks and is not responsible for network-level failures, delays, forks, outages or protocol changes.

10. Forks, Airdrops and Network Events

Blockchain networks may experience forks, airdrops, token migrations, redenominations, staking events, burn events, upgrades or other network events.

Goat Finance is not required to support, credit, claim, distribute or recognize any forked asset, airdrop, reward, token migration, redenomination, staking reward, governance right or similar benefit unless expressly stated in the applicable Product Terms or written confirmation.

Goat Finance may suspend, delay or reject transactions involving an affected asset or network during or after a network event.

11. Smart Contract, DeFi and Protocol Risk

Some digital assets or networks may rely on smart contracts, decentralized finance protocols, bridges, decentralized applications, liquidity pools, automated market makers or other programmable infrastructure.

These may be affected by:

1. coding errors;

2. hacks;

3. exploits;

4. oracle manipulation;

5. liquidity pool failure;

6. governance attacks;

7. bridge failures;

8. protocol insolvency;

9. admin-key misuse;

10. rug pulls;

11. unexpected protocol behavior.

Goat Finance may refuse to support assets, wallets, networks or transactions involving smart contracts, DeFi protocols or other programmable infrastructure that fall outside its risk appetite.

12. Stablecoin Risk

Stablecoins may not maintain their intended peg or value.

Stablecoins may be affected by:

1. reserve risk;

2. issuer risk;

3. redemption risk;

4. depegging;

5. liquidity shortages;

6. banking disruption;

7. regulatory action;

8. smart contract risk;

9. collateral risk;

10. market confidence risk.

A stablecoin may lose value, become illiquid, become restricted, be delisted, or become unsupported by Goat Finance, a partner, an exchange, a wallet provider or a blockchain network.

Goat Finance supports only stablecoins expressly approved for the relevant service, customer, entity, jurisdiction and product route.

13. Regulatory Classification Risk

The legal and regulatory treatment of digital assets may change.

A digital asset may be classified or treated as:

1. a security;

2. an equity token;

3. a debt instrument;

4. a derivative;

5. a financial instrument;

6. an e-money token;

7. an asset-referenced token;

8. a collective investment interest;

9. a commodity;

10. a payment instrument;

11. a regulated product;

12. an unsupported or prohibited asset.

Regulatory classification may affect whether Goat Finance can support, execute, settle, process, custody, transfer or otherwise deal with a digital asset.

Goat Finance may reject, suspend, block, return or terminate any transaction involving a digital asset that Goat Finance determines is unsupported, restricted, prohibited or outside its licensing, registration, regulatory perimeter, partner requirements or risk appetite.

14. Legal and Regulatory Change Risk

Digital asset laws, regulations, enforcement practices, licensing regimes, tax treatment, sanctions rules and regulatory expectations may change quickly.

Regulatory changes may affect:

1. whether a digital asset can be supported;

2. whether a service can be provided;

3. whether a customer can be onboarded;

4. whether a transaction can be processed;

5. whether funds or assets can be returned;

6. whether additional information is required;

7. whether a relationship must be suspended or terminated;

8. whether reporting to authorities is required.

Goat Finance may take any action it considers necessary or appropriate to comply with applicable law, regulation, regulator expectations, partner requirements or its internal risk appetite.

15. Sanctions, AML/CFT and Financial Crime Risk

Digital asset transactions may involve elevated financial crime risk.

Goat Finance may screen customers, wallets, addresses, transactions, counterparties and blockchain activity for:

1. sanctions exposure;

2. money laundering;

3. terrorist financing;

4. proliferation financing;

5. fraud;

6. scams;

7. darknet market exposure;

8. ransomware;

9. stolen funds;

10. mixer or tumbler exposure;

11. high-risk exchanges;

12. illicit finance typologies;

13. activity inconsistent with your approved profile.

Goat Finance may reject, hold, delay, freeze, return, block, investigate, report, suspend or terminate a transaction or relationship where financial crime risk, sanctions risk, AML/CFT risk, fraud risk or wallet risk is identified.

Goat Finance may be unable to provide detailed reasons for such action where restricted by law, regulation, sanctions controls, law enforcement, partner requirements or financial crime controls.

16. Wallet Screening and Blockchain Analytics Risk

Goat Finance may use blockchain analytics, wallet screening and transaction monitoring tools.

These tools may identify or estimate risk based on blockchain data, wallet clusters, transaction flows, counterparties, typologies, sanctions indicators, fraud indicators or other risk signals.

Blockchain analytics results may be incomplete, inaccurate, delayed, disputed or subject to change.

Goat Finance may still rely on wallet screening, blockchain analytics, partner information, compliance judgment and internal risk controls to approve, delay, reject, suspend or terminate a transaction or relationship.

17. Fraud, Scam and Market Abuse Risk

Digital asset markets are subject to fraud, scams and market abuse.

Examples include:

1. phishing;

2. impersonation;

3. fake investment platforms;

4. fake exchanges;

5. fake wallets;

6. fake support agents;

7. romance scams;

8. pig-butchering scams;

9. Ponzi schemes;

10. pyramid schemes;

11. pump-and-dump schemes;

12. market manipulation;

13. wash trading;

14. spoofing;

15. rug pulls;

16. malware;

17. account takeover;

18. social engineering.

Goat Finance is not responsible for losses caused by fraud, scams, deception, market abuse, false investment opportunities or third-party misconduct where Goat Finance did not cause the loss.

You must conduct your own due diligence before sending funds or digital assets to any wallet, counterparty, platform or person.

18. Custody and Safekeeping Risk

Unless expressly stated in the applicable Product Terms, Goat Finance does not provide digital asset custody, wallet custody, safekeeping, deposit-taking, investment management or portfolio management services.

Where Goat Finance receives fiat currency or digital assets in connection with an approved transaction, such assets are received only for the purpose described in the applicable Product Terms or transaction confirmation, such as execution, settlement, review, return or processing of an approved transaction.

Holding periods may be limited and may be subject to compliance review, partner restrictions, operational feasibility, legal requirements or transaction-specific conditions.

19. No Deposit, Banking or Compensation Scheme Protection

Digital assets are not bank deposits.

Unless expressly stated in the applicable Entity Terms or Product Terms, digital assets and related balances are not protected by deposit insurance, investor compensation schemes, bank guarantee schemes or similar protections.

You should not assume that you will have access to compensation from any government, regulator, compensation scheme, bank, exchange, partner or service provider if something goes wrong.

20. Third-Party Provider and Partner Risk

Goat Finance may rely on third parties and partners to support execution, liquidity, payments, settlement, screening, analytics, technology, banking, custody-connected services or other operational functions.

Third-party or partner risks may include:

1. service outages;

2. processing delays;

3. liquidity failures;

4. banking restrictions;

5. payment failures;

6. system errors;

7. cybersecurity incidents;

8. compliance holds;

9. partner rejection;

10. changes to supported assets;

11. changes to supported jurisdictions;

12. operational failure;

13. insolvency or financial distress;

14. regulatory action;

15. termination of partner arrangements.

Goat Finance may reject, delay, suspend or terminate a service or transaction where required by a partner or where a partner-supported service becomes unavailable.

21. Fiat Payment and Settlement Risk

Crypto-fiat exchange and on/off-ramp services may involve fiat payment, banking or settlement flows.

Fiat payment and settlement may be affected by:

1. bank delays;

2. payment provider delays;

3. incorrect payment details;

4. name mismatch;

5. failed payment screening;

6. payment rejection;

7. return fees;

8. compliance review;

9. banking holidays;

10. intermediary bank issues;

11. partner restrictions;

12. currency restrictions;

13. chargebacks or recalls where applicable;

14. legal or regulatory restrictions.

Goat Finance is not responsible for delays, deductions, rejection or returns caused by third-party banks, payment providers, settlement providers or incorrect information provided by you.

22. Cybersecurity and Technology Risk

Digital asset services involve cybersecurity and technology risk.

Losses may arise from:

1. hacking;

2. malware;

3. phishing;

4. denial-of-service attacks;

5. private key compromise;

6. wallet compromise;

7. device compromise;

8. email compromise;

9. cloud service failures;

10. software bugs;

11. system outages;

12. API errors;

13. data corruption;

14. third-party technology failures;

15. unauthorized access.

You are responsible for protecting your own devices, accounts, wallets, email, passwords, authentication methods and communication channels.

23. Tax Risk

Digital asset transactions may have tax consequences.

You are responsible for determining, reporting and paying any taxes, duties, levies or charges that apply to your digital asset transactions.

Tax treatment may vary by jurisdiction and may change over time.

Goat Finance does not provide tax advice and is not responsible for calculating or reporting your taxes unless required by applicable law.

24. Information, Instruction and Customer Error Risk

You are responsible for ensuring that all information and instructions you provide to Goat Finance are complete, accurate and up to date.

Losses, delays or failed transactions may result from:

1. incorrect bank details;

2. incorrect wallet address;

3. wrong blockchain network;

4. unsupported asset;

5. unsupported currency;

6. incorrect transaction amount;

7. inaccurate source of funds information;

8. inaccurate source of wealth information;

9. incorrect counterparty information;

10. delayed response to information requests;

11. incomplete onboarding information;

12. outdated contact details.

Goat Finance may be unable to reverse, amend or recover a transaction affected by incorrect or incomplete information.

25. Unsupported Assets, Networks and Services

Goat Finance supports only digital assets, fiat currencies, blockchain networks, wallets, payment methods and settlement methods expressly approved for the relevant service, customer, entity, jurisdiction and product route.

If you send, request, receive or attempt to transact with unsupported assets, networks or methods:

1. the transaction may be rejected;

2. assets may be lost;

3. assets may be unrecoverable;

4. processing may be delayed;

5. additional fees may apply;

6. Goat Finance may be unable to return or recover the asset;

7. Goat Finance may suspend or terminate the relationship.

You must not assume that Goat Finance supports an asset, network or service unless Goat Finance expressly confirms support for your specific transaction route.

26. Market Availability and Service Interruption Risk

Goat Finance may modify, suspend, restrict or discontinue any digital asset, fiat currency, network, transaction type, payment method, settlement method, provider route or service at any time.

This may occur because of:

1. market conditions;

2. liquidity constraints;

3. legal or regulatory changes;

4. sanctions or financial crime risk;

5. network disruption;

6. partner requirements;

7. banking or payment restrictions;

8. technology failures;

9. security incidents;

10. operational limitations;

11. internal risk appetite.

Goat Finance does not guarantee uninterrupted access to any product, service, asset, network, route or transaction method.

27. Cross-Border Risk

Digital asset transactions may involve parties, networks, providers, banks, settlement routes, wallets or infrastructure located in multiple jurisdictions.

Cross-border activity may be affected by:

1. different legal regimes;

2. exchange controls;

3. sanctions;

4. taxes;

5. reporting obligations;

6. payment restrictions;

7. local licensing requirements;

8. foreign regulator action;

9. asset restrictions;

10. transfer restrictions.

You are responsible for ensuring that your use of Goat Finance services is lawful in any jurisdiction that applies to you.

28. No Guarantee of Asset Value, Availability or Suitability

Goat Finance does not guarantee:

1. the value of any digital asset;

2. the future price of any digital asset;

3. the liquidity of any digital asset;

4. the availability of any digital asset;

5. the suitability of any digital asset for you;

6. the regulatory status of any digital asset in your jurisdiction;

7. the continued support of any digital asset, network or service;

8. that a transaction will be profitable;

9. that a transaction will avoid loss.

You are solely responsible for your decision to enter into any digital asset transaction.

29. Customer Responsibilities

You are responsible for:

1. understanding the risks of digital assets;

2. reading this Disclosure before using any digital asset service;

3. reviewing all applicable terms and disclosures;

4. providing accurate information and instructions;

5. verifying wallet addresses, networks, bank details and transaction details;

6. securing your own wallet, devices, credentials and communication channels;

7. complying with applicable laws and taxes;

8. ensuring that your use of Goat Finance services is lawful and appropriate;

9. avoiding fraud, scams and suspicious counterparties;

10. responding promptly to information requests;

11. using only approved assets, networks and settlement methods;

12. accepting that transactions may be delayed, rejected, held, returned, frozen, suspended or terminated for legal, compliance, risk, partner or operational reasons.

30. Acknowledgment

By accepting or acknowledging this Disclosure, you confirm that:

1. you have read and understood this Digital Asset Risk Disclosure;

2. digital assets are high-risk and may lose some or all of their value;

3. digital asset transactions may be irreversible;

4. digital asset prices may be volatile and unpredictable;

5. digital asset services may be subject to legal, regulatory, liquidity, technology, cybersecurity, partner, payment, settlement and operational risks;

6. Goat Finance does not provide investment, financial, tax, legal or trading advice unless expressly agreed in writing;

7. Goat Finance does not guarantee profits, returns, liquidity, execution, settlement, asset availability or asset value;

8. you are responsible for your own decisions, instructions, wallet details, tax obligations and compliance with applicable law;

9. Goat Finance may reject, delay, hold, freeze, return, suspend, terminate or report a transaction or relationship where required or appropriate for legal, compliance, sanctions, AML/CFT, fraud, partner, payment, settlement, security, operational or risk reasons.

31. Updates to This Disclosure

Goat Finance may update this Disclosure from time to time.

Updates may be made to reflect:

1. changes in law;

2. regulatory developments;

3. financial crime typologies;

4. technology changes;

5. blockchain network developments;

6. partner requirements;

7. product changes;

8. supported asset changes;

9. market conditions;

10. internal risk appetite.

The updated version will be published on https://goatfinance.io or made available through the relevant onboarding or service channel.

32. Contact

For questions about this Disclosure, contact:

Goat Finance Compliance
Email: [email protected]

Entity-specific contact details may be provided in the applicable Entity Terms, Product Terms, privacy notice, product disclosure or onboarding communication.