Risks Disclosure Statement

1. Purpose of This Disclosure

This document outlines key risks associated with trading, transacting in and otherwise using cryptocurrency tokens on the platform provided by TWMT Pty Ltd ABN 76 621 581 584 (“TWMT”, "we", "us", or "our"). This risk disclosure is not exhaustive and is intended to provide you with a general outline of the risks involved with using TWMT's Services, and may not capture every possible risk. You may wish to seek independent financial advice to determine if engaging in cryptocurrency activities aligns with your financial objectives and risk tolerance. You should always do your own research and consider whether you are willing to accept any associated risks before using TWMT's Services.

This document should be read with TWMT’s Website Terms & Conditions. By using TWMT’s Services, you acknowledge that you have read, understood, and accepted these risks.

We may update this Risk Disclosure Statement from time to time to reflect changes in our services, the law, or the risks you should be aware of. We do this to help keep you informed and protected. Whenever there’s a significant change, we’ll do our best to let you know — but we also encourage you to check this page regularly so you’re always up to date.

2. General Risks of Cryptocurrency Investments

High-risk investment: Investing in cryptocurrencies is highly speculative. Some cryptocurrencies may lack intrinsic or underlying value, Their price may fluctuate significantly or become worthless without warning, potentially resulting in substantial losses or even the complete loss of your investment. You should only invest funds you can afford to lose.

Volatility: Cryptocurrency prices fluctuate significantly and unpredictably due to market dynamics, technological developments, regulatory changes, and macroeconomic factors.

Market liquidity: Cryptocurrencies may have limited liquidity, affecting your ability to buy or sell tokens at desired times or prices. In illiquid markets, spreads can be wide, making transactions costly or unviable. In more extreme cases, you may be unable to exit investments on your preferred terms or at all.

Price and market changes: Regulatory actions, network disruptions, or technological adjustments (i.e. forks or rollbacks) may affect cryptocurrency values and your ability to legally hold or deal in the relevant cryptocurrency. The price formation of crypto assets is often not transparent. There is a market risk that you will not receive a fair or market-reflective price when buying or selling cryptocurrencies due to factors beyond TWMT's control, however, TWMT will always seek to offer competitive pricing.

Systemic and systematic risks: Cryptocurrency markets face systemic risks (market wide collapse potential) and systematic risks (overall market risks due to economic or technological factors), which could lead to an adverse effect to the value or utility of the token.

Stablecoin risk: Tokens pegged to fiat currencies (e.g., AUD, USD) may lose their peg or suffer from failure of the underlying reserve or issuer. TWMT does not guarantee the price stability, liquidity, or redeemability of any stablecoin listed on its platform.

3. Platform Risks

Service availability: TWMT reserves the right to suspend or discontinue support for specific tokens, which could limit your access or ability to withdraw tokens. This may result in you not being able to deal in tokens on your preferred terms or at all.

Third-party service dependencies: TWMT relies on third-party service providers (such as custodians, payment processors, and wallet infrastructure providers). These parties may experience operational delays, outages, or insolvency. If any such service fails, it may impact your ability to access funds, complete transactions, or recover assets. TWMT does not guarantee the ongoing availability or solvency of third parties and is not liable for any associated loss.

Account security: You are responsible for safeguarding account credentials. TWMT cannot reverse unauthorised or fraudulent transactions, and losses from such events may not be recoverable. Transactions are irreversible once executed.

No financial, legal, or tax advice: TWMT does not provide financial, investment, legal, or tax advice. Nothing on the platform or in communications from TWMT should be considered a recommendation or personal advice. It is your sole responsibility to determine the suitability of cryptocurrency investments and/or TWMT’s Services for your personal financial and tax situation. TWMT does not make any offers, recommendations or invitations for you to deal in digital assets or use any TWMT Services, and does not take into account your personal circumstances, financial situation, needs or objectives. Before making any financial decision, you should carefully assess your financial situation and capacity, seek professional advice when needed, and only use funds that you can afford to lose. 

External Event Risk (Force Majeure): Events outside of TWMT’s control, including cyberattacks, regulatory shutdowns, or infrastructure outages may disrupt access to our platform or delay execution of your transactions. In such circumstances, TWMT may not be liable for any resulting losses, delays, or service interruptions, consistent with applicable law and our Terms & Conditions.

4. Technological and Operational Risks

Blockchain technology: Cryptocurrency networks may be vulnerable to cyber-attacks, network congestion, hacking, or other technical failures that could have a materially adverse impact on the token’s value or utility.

Protocol and network risks: Changes to blockchain protocols (i.e. forks or rollbacks) can alter the value or functionality of tokens.

Transaction irreversibility: Cryptocurrencies are built on immutable blockchains and cryptocurrency transactions are generally irreversible. Tokens sent to an incorrect address may be permanently lost and are unrecoverable by TWMT.

AML/CTF obligations: TWMT is required to screen clients and transactions for risks of money laundering, terrorist financing, or other illegal activities. Transfers may be delayed or cancelled if flagged, without explanation provided.

Internet and connectivity issues: The TWMT platform relies on internet-based infrastructure, which may be disrupted by technical issues or connectivity failures. During such times, you may be unable to transact or otherwise deal with tokens, potentially leading to losses.

5. Regulatory and Legal Risks

Legal uncertainty: The regulatory status of cryptocurrencies varies by jurisdiction, and tokens are not recognised as legal tender in Australia. This variability can impact a token’s value, usage, or legal standing in a particular region. Future regulations in Australia, which are still developing, may further impact token value and your ability to hold or otherwise trade tokens. Crypto exchanges and service providers may not be subject to the same level of regulatory supervision or scrutiny as other traditional forms of financial exchanges or service providers. Investing in cryptocurrencies is very different to trading traditional financial products, and is not currently subject to the same level of regulatory oversight or compliance obligations.

Jurisdictional restrictions: TWMT’s services may not be available in certain regions or to specific individuals. It is your responsibility to comply with applicable laws and restrictions in each jurisdiction in which you access TWMT’s platform.

Counterparty risk: Engaging in cryptocurrency transactions may expose you to counterparty risk, where third parties (including TWMT) may fail to meet contractual obligations. Failure to meet these obligations can lead to loss of funds or inability to engage with TWMT as expected.

Fraud and Scam risk: Customers should be aware of the high risk of scams and fraudulent schemes in the digital asset sector. These include so-called “pig butchering” scams, investment frauds, fake support impersonations, and social engineering attacks. TWMT will never contact you via unofficial channels or request remote access to your device. If you are induced or coerced to buy digital assets under false pretences, you may irreversibly lose your funds. TMW may delay or refuse a transaction if there is a reasonable suspicion of scam activity, consistent with our obligations under the applicable AML/CTF Act laws.

Different tax regulation: Different jurisdictions may impose specific tax rules and treatments on crypto assets. You must ensure you understand the tax implications of your activities, and always comply with all reporting and payment obligations applicable to you. If you are unsure of your obligations, you should consider seeking professional tax advice.

6. Holding of Crypto Assets and Security Risks

Custody risks: Some tokens on the TWMT platform may be held by third-party platforms. If such platforms are subject to unauthorised access or hacking, this could affect TWMT’s ability to deliver tokens that are reflected in your account(s) or you or are otherwise entitled to.

Cybersecurity threats: TWMT faces cybersecurity risks, including hacking and fraud. Cyber-attacks, extreme market conditions, or other operational or technical difficulties could result in the immediate halt of transactions either temporarily or permanently. The nature of crypto assets may entice an increased risk of fraud or cyber-attack, including (but not limited to) rollback attacks or blockchain reorganisations. These types of attacks, if successful, could result in losses for customers in some or all of a particular cryptocurrency that may not be recoverable.

Crypto assets and fiat currency: You have the right to withdraw any crypto assets and fiat currency reflected in your account(s), subject to TWMT’s Website Terms and Conditions and the risks outlined in this document. TWMT operates on a fully reserved basis and always holds 100% of customer assets reflected in the accounts. However, TWMT does not hold any assets in trust or custody for you, and neither TWMT nor its providers act as your custodian or fiduciary. Your account is not a deposit, savings or checking account, and it is not covered by any government backed deposit insurance scheme (such as the Financial Claims Scheme), statutory compensation scheme, or any other form of insurance against losses. Assets reflected in customer’s account(s) may not be held in segregated clients accounts or separate from TWMT’s own assets. In the event of TWMT insolvency, you may be treated as an unsecured creditor and may not recover some, or all, of your funds or assets.

7. Transactional Risks

Incorrect transfer details: Cryptocurrency transactions are irreversible, and errors in the recipient address or network selection may lead to a permanent loss of tokens. Double-check all details before confirming transactions.

Unauthorised transactions: If your account is compromised, unauthorised transactions may occur. TWMT assumes all wallet instructions come from you, so ensure account security. Transactions are final and cannot be reversed or recovered once made.

Non-regulated transfer risk: Cryptocurrency transactions differ from bank transfers and lack consumer protections. Mistaken payments cannot be reversed, and TWMT is not liable for errors or misdirected transfers.

Network congestion risk: High transaction volumes can lead to delays and increased fees. During congestion, transaction fees may consume a larger portion of the transfer value, potentially resulting in the recipient receiving less than the intended amount.

Non-supported cryptocurrencies and blockchains: Transfers are only available for supported cryptocurrencies and blockchains. Confirm compatibility before initiating transfers. Attempted transfer or deposits of unsupported cryptocurrencies or on unsupported blockchains may result in permanent loss.

Last updated: 18 September 2025

Updated on: 18/09/2025