Risk Disclosure

Purpose

This disclosure sets out the principal risks of trading and settling digital assets and foreign currency through BAJJPAY. It is not exhaustive. It should be read alongside the Client Agreement, which governs trading between BAJJPAY and your organisation.

Digital asset risks

• Value. USDT and USDC are designed to track the US dollar, but their value depends on their issuers and on market conditions. They can trade away from one dollar and, in extreme circumstances, lose value significantly.
• Irreversibility. A transfer to a blockchain address cannot be reversed once broadcast. Funds sent to an incorrect or incompatible address, or on the wrong network, may be unrecoverable. BAJJPAY settles only to addresses your organisation has nominated and BAJJPAY has verified, but your organisation is responsible for the accuracy of those details.
• Networks. Blockchain networks can be congested, delayed or, rarely, disrupted. Confirmation times and network fees vary.
• Issuers. Stablecoin issuers may freeze addresses or restrict transfers in accordance with their own policies or legal obligations.

Foreign exchange risks

Exchange rates move continuously. A firm quote fixes the rate for the size and period stated on it; the value of the currency you receive, measured in another currency, can change afterwards. Some currency corridors, including the Nigerian naira, can experience sharp movements, changes in market liquidity, and changes in the rules governing conversion and transfer.

Settlement risks

Bank transfers depend on the banks and payment systems involved and on their cut-off times, holidays and processing windows. A settlement leg can be delayed for reasons outside BAJJPAY's control. Where your organisation delivers funds first, BAJJPAY releases the other side once those funds are received and have cleared compliance review; where BAJJPAY delivers first, your organisation's obligation to deliver remains. Each settlement's current stage is shown in the portal.

Counterparty risk

BAJJPAY trades as a principal. Your organisation's counterparty on every trade is BAJJPAY, and you are exposed to BAJJPAY's ability to perform. BAJJPAY in turn relies on banks, networks and other providers to settle. BAJJPAY is not a custodian and does not hold assets on your behalf between trades.

Legal and regulatory risk

The legal and regulatory treatment of digital assets and of cross-border currency transfers differs between countries and changes over time. Changes can affect whether, how and at what cost a service can be provided in a particular corridor, and can require BAJJPAY to suspend or decline activity. Your organisation is responsible for understanding the rules that apply to it.

Operational risk

Systems, including the portal, can be unavailable or affected by errors, cyber attacks or events outside anyone's control. Your organisation's own controls, including who can request, accept and approve trades and change settlement accounts, are an important safeguard and should be kept appropriate.

Your decisions

Nothing on this website or from BAJJPAY's staff is investment advice. Decisions about whether to trade, in what size and when are your organisation's own. If anything in this disclosure is unclear, ask your dealer before trading.