Legal · SWSS Chain Foundation

    Risk Disclosure Statement

    A non exhaustive enumeration of the material risks associated with the SWSS Chain protocol, SWSS Coin, validator participation, decentralised exchange activity and real world asset deed instruments.

    v1.0Effective 19 May 2026Binding Instrument

    Governed under the laws referenced in the applicable Terms Of Service.

    Contact Legal Desk Request PDF Copy
    Section 01

    Material Risk Acknowledgement

    Critical Risk Notice
    Participation in SWSS Chain, whether as a holder of SWSS Coin, a validator on SWSS NodeX, a holder of any deed instrument issued via SWSS RwaX, or a counterparty on SWSS DEX, entails substantial financial, technical, regulatory and legal risk, including the potential for total and permanent loss of capital. You must read this Statement in full before transacting.

    This Risk Disclosure Statement (the "Statement") is issued by SWSS Fintech Limited (the "Company") pursuant to its obligations under applicable consumer protection, securities and anti fraud regulations. It does not purport to disclose every risk; rather, it enumerates the principal categories of risk that the Company reasonably considers material as of the Effective Date.

    By interacting with the SWSS Chain protocol, SWSS App, SWSS DEX, SWSS RwaX, SWSS NodeX, SWSS Bridge, SWSS Draw, SWSS REALM or any other product in the SWSS ecosystem (each a "Service" and collectively the "Services"), you acknowledge that you have read, understood and accepted the risks described herein. If you do not accept any material risk, you must cease all interaction with the Services immediately.

    SWSS Coin
    The native utility and settlement token of SWSS Chain Mainnet (Chain ID 122605, 0x1DEED) and Testnet (Chain ID 122606, 0x1DEEE).
    Deed
    A tokenised real world asset instrument issued on SWSS Chain, typically via SWSS RwaX, representing a contractual claim against an underlying asset or cash flow stream.
    Validator
    A network participant operating a SWSS NodeX instance that validates transactions and secures SWSS Chain under SCP v3.2.1 four pillar consensus.
    Slashing
    The protocol level confiscation or burn of staked SWSS Coin resulting from validator misbehaviour, downtime or protocol rule violation.
    Gas
    The transaction fee, payable in SWSS Coin, required to execute operations on SWSS Chain.
    Bridge
    The SWSS Bridge infrastructure enabling cross chain asset transfers between SWSS Chain and external networks.
    Section 02

    Nature And Scope Of This Disclosure

    2.1Non Exhaustive List
    The risks identified in this Statement are illustrative, not exhaustive. Novel risks may emerge as the protocol, markets and regulatory landscape evolve. The Company may update this Statement without individual notice; the latest version published at swss.io/legal/risk disclosure supersedes all prior versions.
    2.2No Reliance
    This Statement does not constitute investment, legal, tax or financial advice. You are solely responsible for evaluating whether any transaction, staking commitment or deed acquisition is appropriate for your objectives, financial position and risk tolerance. The Company expressly disclaims any duty to advise you on the suitability of any Service.
    2.3Forward Looking Statements
    Certain descriptions herein contain forward looking statements regarding protocol development, roadmap milestones and anticipated network upgrades (for example, Q2 2027 features described in the Whitepaper). These are subject to change, delay or cancellation without notice and should not be treated as commitments.
    Section 03

    Market And Liquidity Risk

    SWSS Coin and deed instruments may trade on SWSS DEX and, where supported, on third party centralised or decentralised exchanges. There is no guarantee that a liquid market will exist at any time, or that you will be able to sell or transfer your holdings at a price you consider acceptable.

    3.1Thin Or Absent Markets
    Newly launched tokens, deed pairs or validator staking derivatives may have low trading volume, wide bid ask spreads and shallow order book depth. A single large transaction may materially move the market price.
    3.2Exchange Delisting
    Third party exchanges may delist SWSS Coin or deed pairs without notice, further constraining liquidity and price discovery.
    3.3Deed Specific Liquidity
    Individual deeds carry issuer specific liquidity profiles. A deed backed by an illiquid underlying asset (for example, unlisted real estate or private credit) may not have a secondary market at all, meaning resale is uncertain and may require direct negotiation with the originator.
    Liquidity Risk Warning
    You should not acquire SWSS Coin or any deed instrument with capital you cannot afford to lose entirely, and you should not assume that you will be able to exit any position quickly or at all.
    Section 04

    Volatility Risk

    Cryptographic assets, including SWSS Coin and deed instruments, have historically exhibited extreme price volatility. Prices may fluctuate by double digit percentages within minutes or hours driven by market sentiment, regulatory announcements, protocol events, macro economic factors or manipulation.

    4.1Correlation Breakdown
    Correlations between SWSS Coin and other crypto assets or traditional asset classes are unstable and may break down during stress events, eliminating diversification benefits you may have assumed.
    4.2Leverage Amplification
    If you access leverage, whether through SWSS DEX margin facilities, third party lending protocols or deed backed credit, a small adverse price move can result in the total loss of your principal and collateral. You may also be liable for additional amounts if liquidation proceeds are insufficient to cover borrowed funds.
    4.3Stablecoin And Peg Risk
    Where deeds or DEX pairs reference stablecoins, those stablecoins themselves carry de pegging, issuer insolvency and reserve adequacy risks that can cascade into SWSS ecosystem positions.
    Section 05

    Technology And Protocol Risk

    SWSS Chain is an L1 blockchain protocol secured by SCP v3.2.1 four pillar consensus (SAPE, DSA, PCA, BFTFA). While the Company undertakes rigorous testing and third party audits, no software protocol is immune to technical failure.

    5.1Consensus Failure
    In the unlikely event of a consensus failure, chain split or prolonged network partition, transactions may be delayed, reversed or duplicated. The Company may, in extreme circumstances, coordinate an emergency hard fork; however, there is no guarantee that such intervention will preserve your balances or transaction history.
    5.2Bugs, Exploits And Upgrades
    Undiscovered bugs in protocol code, compiler optimisations or dependency libraries may be exploited by malicious actors, resulting in loss of funds, network congestion or unplanned downtime. Protocol upgrades may introduce breaking changes that affect wallet compatibility, scripting behaviour or fee economics.
    5.3Quantum Computing
    Advances in quantum computing could, in the future, compromise the cryptographic primitives (for example, ECDSA or SHA-256) securing SWSS Chain addresses and transactions. The Company monitors post quantum research but makes no assurance of timely migration.
    Testnet Is Not Production
    SWSS Chain Testnet (Chain ID 122606, 0x1DEEE) is provided solely for development and testing. Testnet SWSS Coin has no monetary value and may be reset or deprecated without notice. Do not deploy production assets or user funds on Testnet.
    Section 06

    Validator Staking And Slashing Risk

    SWSS NodeX enables users to operate validator nodes or delegate SWSS Coin to existing validators. Participation in validator staking carries risks distinct from simple holding.

    6.1Slashing Conditions
    Under SCP v3.2.1, validators may be slashed for double signing, prolonged downtime, invalid attestation or protocol rule violations. Slashed stakes are burned or redistributed; you may lose part or all of your delegated principal. Delegators bear the slashing risk of the validator they select, even if the delegator was not directly responsible for the infraction.
    6.2Unbonding And Lock Up
    Staked SWSS Coin is typically subject to an unbonding (cool down) period during which it remains illiquid and exposed to price decline. Unbonding periods may be extended by protocol governance or emergency measures.
    6.3Operational Requirements
    Self operated validators must maintain hardware, connectivity, software updates and monitoring 24/7/365. Failure to do so may result in missed rewards, slashing and reputational damage that affects future delegation inflows.
    6.4Reward Variability
    Validator rewards (block issuance, fee revenue, protocol incentives) are not guaranteed. They depend on network activity, fee market dynamics, total staked supply and governance parameters, all of which may change.
    Section 07

    RWA Deed And Counterparty Risk

    SWSS RwaX issues tokenised real world asset deeds backed by underlying assets such as real estate, private credit, trade finance or commodities. These instruments introduce risks additional to those of native on chain assets.

    7.1Originator And Servicer Risk
    The performance of a deed depends on the financial health, operational competence and legal compliance of the originator, servicer and any guarantor. Bankruptcy, fraud or mismanagement of the originator may impair or extinguish the value of the underlying asset and, consequently, the deed.
    7.2Valuation And Collateral Risk
    Underlying asset valuations may be stale, model dependent or subject to conflict of interest. Collateral may depreciate, become illiquid or be encumbered by senior claims not disclosed at issuance. Force majeure events (natural disasters, war, pandemics) may destroy or impair physical collateral.
    7.3Legal Enforceability
    A deed is an on chain representation of an off chain contractual relationship. Enforcement of rights against an originator or obligor requires recognition by courts in the relevant jurisdiction. There is no certainty that a court will recognise on chain ownership as dispositive, or that cross border judgment recognition will be available.
    7.4Redemption And Default
    Deed terms may permit delayed redemption, haircuts or conversion to equity in default scenarios. You may not receive full principal or expected yield. Default waterfall mechanics are described in each deed's offering documentation, which governs in the event of conflict with this Statement.
    Deeds Are Not Deposits
    Deed instruments are not bank deposits, are not insured by any government deposit protection scheme and do not constitute debt of the Company. The Company does not guarantee the performance of any originator, underlying asset or deed.
    Section 08

    Regulatory And Legal Risk

    The regulatory status of blockchain protocols, native tokens, staking arrangements and tokenised securities remains unsettled in many jurisdictions and is subject to rapid change.

    8.1Reclassification Risk
    SWSS Coin or deed instruments may be reclassified by a regulator as a security, commodity, e money or other regulated instrument in your jurisdiction. Such reclassification may trigger registration requirements, trading restrictions, tax liabilities or forced divestment obligations.
    8.2Sanctions And Prohibited Jurisdictions
    The Company complies with consolidated international sanctions (OFAC, EU, UN, MT). Users in or connected to sanctioned jurisdictions, entities or persons are prohibited from accessing the Services. Violations may result in immediate account suspension, asset freezing and reporting to competent authorities.
    8.3Tax Uncertainty
    The tax treatment of staking rewards, DEX trading gains, deed yield and airdrops is uncertain in most jurisdictions. You bear sole responsibility for determining and remitting all applicable taxes, including income tax, capital gains tax, VAT/GST and withholding tax. The Company does not provide tax advice and does not withhold taxes on your behalf.
    8.4Cross Border Enforcement
    The Company may be incorporated in a jurisdiction different from your own. Legal claims against the Company may be subject to mandatory arbitration (see Terms Of Service), and judgments obtained in your local courts may not be enforceable against the Company's assets.
    Section 09

    Custody And Key Management Risk

    SWSS Chain is a non custodial protocol. Unless you explicitly use a third party custodial service, you alone control the private keys or seed phrases required to access your on chain assets.

    9.1Irreversibility Of Loss
    If you lose your private keys, seed phrase or password, or if they are stolen, compromised or destroyed, your assets are permanently inaccessible. The Company cannot recover, reset or reverse transactions executed with your keys.
    9.2Phishing And Social Engineering
    Malicious actors may impersonate the Company, wallet providers or support staff to trick you into revealing keys or signing fraudulent transactions. The Company will never request your seed phrase or private key.
    9.3Self Custody Best Practices
    You are strongly encouraged to use hardware wallets, multi signature schemes, cold storage backups and geographically distributed recovery mechanisms. Failure to implement adequate security hygiene may result in complete loss.
    Section 10

    Smart Contract And Bridge Risk

    Many Services rely on smart contracts, self executing code deployed on SWSS Chain or connected networks. Smart contracts may contain bugs, be subject to governance manipulation or interact unpredictably with other protocols.

    10.1Code Vulnerabilities
    Despite auditing, formal verification and bug bounty programmes, smart contracts may still contain exploitable vulnerabilities. Attack vectors include re entrancy, integer overflow/underflow, access control flaws, oracle manipulation and flash loan attacks.
    10.2Governance Risk
    Protocols with on chain governance may be subject to vote buying, governance token concentration, malicious proposal passage or timelock bypass attacks. A governance decision you oppose may nonetheless be executed, altering protocol parameters, fee structures or asset rights.
    10.3Bridge Risk
    Cross chain bridges (including SWSS Bridge) lock assets on one chain and mint representations on another. Bridge contracts are high value targets for attackers. A bridge compromise may result in the loss of locked assets, inflation of wrapped tokens or indefinite suspension of cross chain transfers.
    Immutable Code
    Once deployed, many smart contracts cannot be altered or paused. Even if a vulnerability is discovered, there may be no administrative mechanism to fix it or recover funds.
    Section 11

    Third Party And Operational Risk

    The Services depend on infrastructure, data feeds, oracles and service providers outside the Company's direct control.

    11.1Oracle Failure
    Price, event and outcome oracles used by SWSS DEX, SWSS Draw, SWSS RwaX or SWSS REALM may report inaccurate, stale or manipulated data. Smart contracts consuming this data may execute erroneously, resulting in incorrect liquidations, payouts or deed valuations.
    11.2Cloud And Infrastructure
    Off chain components (indexers, APIs, front end hosting, notification services) rely on cloud providers and internet infrastructure. Outages, DNS hijacking, DDoS attacks or provider insolvency may degrade or deny access to Services without warning.
    11.3Front Running And MEV
    On chain transactions are visible in the public mempool before confirmation. Miners, validators or searchers may extract maximal extractable value (MEV) by reordering, inserting or censoring transactions, resulting in worse execution prices for users.
    Section 12

    No Investment Advice, No Guarantee

    Nothing in this Statement, the Whitepaper, the Company's website, SWSS Docs, SWSS DevHub, SWSS AI OwlX outputs, community channels or any presentation constitutes investment, financial, legal or tax advice.

    12.1No Performance Guarantee
    Past performance of SWSS Coin, validator staking or any deed is not indicative of future results. The Company makes no representation or warranty as to the future price, yield, liquidity or viability of any asset or Service.
    12.2No Fiduciary Relationship
    No fiduciary, advisory or agency relationship is created between you and the Company by your use of the Services. The Company owes you no duty of care or loyalty beyond the express terms of the applicable Terms Of Service and this Statement.
    12.3Independent Professional Advice
    You should obtain independent professional advice from qualified legal, tax and financial advisers before committing capital to any Service, particularly if you are uncertain about the regulatory status, tax treatment or suitability of the transaction in your jurisdiction.
    Section 13

    Acknowledgement And Acceptance

    By creating a wallet, connecting to the SWSS Chain network, executing a transaction, staking SWSS Coin, acquiring a deed, trading on SWSS DEX or otherwise interacting with any Service, you irrevocably acknowledge and accept that:

    • You have read and understood this Risk Disclosure Statement in its entirety.
    • You are solely responsible for assessing the risks of any transaction or activity you undertake using the Services.
    • You are capable of bearing the complete loss of your capital without impairing your financial well being.
    • You will not hold the Company, its directors, officers, employees, contractors, affiliates or licensors liable for losses arising from the risks described herein, except to the extent expressly prohibited by applicable law.
    • You waive any right to participate in a class action, collective proceeding or similar aggregate remedy against the Company to the maximum extent permitted by law.
    Final Warning
    If you do not understand any section of this Statement, or if you are not prepared to accept the possibility of total capital loss, do not proceed. Cease all interaction with the Services and seek independent professional advice.