Risk Disclosure Statement

§01Purpose and status

This statement, effective July 23, 2026, describes risks inherent in the categories of service we plan to offer. It is general information for businesses; it is not financial, investment, legal, or tax advice, and it does not account for your circumstances. It will be replaced by fuller, service-specific disclosure before any launch.

§02Foreign-exchange and market risk

Exchange rates move continuously, sometimes sharply, in response to economic data, central-bank decisions, politics, and market sentiment. For a business this means:

• the Canadian-dollar cost of a foreign-currency obligation can rise between the day you plan it and the day you settle it;
• foreign-currency revenue can be worth less by the time it is converted;
• rate movements can exceed the margins on the underlying commercial transaction.

No one can reliably predict currency movements, and past rates say nothing dependable about future ones.

§03Liquidity risk

Not all currencies trade with equal depth. Less-traded currencies can carry wider spreads, larger minimums, and longer execution times, and in stressed markets liquidity can thin even in major currencies. A conversion that is routine one week can be slower or more expensive the next.

§04Timing and settlement risk

International payments are not instantaneous. Cut-off times, time zones, statutory holidays in either country, banking-system schedules, and intermediary processing all affect when funds arrive. A payment initiated on the intended date can still settle later than planned, and obligations that depend on precise arrival times should build in margin for that.

§05Counterparty and third-party risk

Cross-border payment chains involve banks, correspondent institutions, liquidity providers, payment systems, and receiving institutions. The failure, delay, error, or insolvency of any participant in the chain — none of whom may have any relationship with you — can delay funds, return them, or expose them to loss. Funds in transit pass through institutions in more than one legal system.

§06Operational and technology risk

Payment and trading infrastructure depends on software, networks, and people, all of which can fail: outages, processing errors, cyber incidents, and connectivity loss can delay or disrupt transactions. These risks exist at every institution in a payment chain, and no technology eliminates them.

§07Virtual-currency risk

Dealing in virtual currencies carries risks beyond those of traditional currencies:

• Volatility. Virtual-currency prices can move far more, and far faster, than exchange rates between major national currencies, including during a single settlement window.
• Irreversibility. Many virtual-currency transfers cannot be reversed once confirmed. An error in a destination address can mean permanent loss.
• Technology. Networks can congest, fork, or suffer attacks; keys and credentials can be lost or stolen.
• Evolving legal treatment. The regulatory and tax treatment of virtual currencies continues to change in Canada and elsewhere, and future changes can affect value, usability, and obligations.
• No deposit protection. Virtual currencies are not deposits and are not covered by deposit insurance.

§08Fraud risk

Business payments are a prime target for fraud — invoice redirection, business-email compromise, and impersonation of counterparties or providers. Practical defences include verifying any change of payment details through a separately known channel, and treating urgency and secrecy as warning signs.

Soundy Pay Limited is pre-launch: we do not ask anyone to send funds, share banking credentials, or complete onboarding. If someone does so in our name, it is fraud — see our Complaints Policy for how to report it.

§09Regulatory risk

The laws governing money services, retail payments, and virtual currencies change, and their application to particular services can change with them. For us, that includes the timing and scope of our own required registrations and approvals, which are not within our control; for clients, it can mean changes to how, or whether, particular services can be offered in particular places. Plans described on this website may change for exactly these reasons.

§10Tax risk

Currency conversion and virtual-currency dealings can create tax consequences — gains, losses, and reporting obligations — that depend on your situation and jurisdiction. Tax treatment can change, including retroactively. We do not provide tax advice; consult your own tax adviser about your circumstances.

§11General statement

This list is not exhaustive, and the categories above interact: a technology failure can create a timing loss, which market movement can then compound. Every business should assess these risks independently, with its own advisers, against its own tolerance — before using any money-movement service, ours included, once one exists. We do not yet publish a public contact channel for questions about this statement; details will be published before any service becomes available.