Risk Disclosure Statement

This Risk Disclosure Statement forms an integral and substantial part of, and is incorporated by reference into, the 80 Eight Terms of Use and all Client Agreements. Capitalised terms not defined in this Statement bear the meaning given to them in the Terms of Use. This Statement does not constitute financial, legal, tax or investment advice.

This Statement should be read together with the 80 Eight Terms of Use and any Product Supplement applicable to a specific product, before you use any 80 Eight service. If, having read this Statement, you do not understand a risk described below, or you are unsure whether the Services or a particular product are appropriate for your personal circumstances, you should obtain independent professional advice before proceeding. 80 Eight does not provide, and nothing in this Statement should be construed as, personalised financial advice.

1.1. “80 Eight”, “the Company”, “we”, “us” or “our” means 80 Eight SA (Pty) Ltd (registration number 2017/435463/07, FSP No. 49010).

1.2. “Client”, “you” or “your” means any natural or juristic person who accesses, registers for, or uses the Services.

1.3. “Crypto Asset” has the meaning ascribed to it in the FSCA's Declaration of Crypto Assets as a Financial Product under section 1(h) of the Financial Advisory and Intermediary Services Act 37 of 2002 (“FAIS Act”).

1.4. “FSCA” means the Financial Sector Conduct Authority of South Africa, established under the Financial Sector Regulation Act 9 of 2017.

1.5. “FIC Act” means the Financial Intelligence Centre Act 38 of 2001, as amended.

1.6. “Services” means the crypto asset and related financial services made available by 80 Eight.

2.1. This Statement applies to every person who accesses or uses the Services, wherever located.

2.2. The Services are rendered by 80 Eight SA (Pty) Ltd under, and this Statement must be read together with, the South African regulatory framework described in clause 5 below (FSCA / FAIS / FIC Act).

2.3. Nothing in this Statement, and no reference in it to a licence, authorisation, or registration held by 80 Eight, constitutes an endorsement, approval, warranty or guarantee by the FSCA, or any other regulatory authority, of any Crypto Asset, the ZAR8 Token, ZAR8 Yield, or of the merits of any Client's decision to acquire, hold, dispose of, or otherwise transact in any Crypto Asset.

Crypto Assets are a novel and rapidly evolving asset class. Before using the Services, you should understand that Crypto Assets carry risks that differ materially from traditional, regulated financial products, and that you may lose some or all of the value transferred, converted, or held through the Services. The material risks below are not exhaustive.

The price of a Crypto Asset can fluctuate significantly and unpredictably over short periods, driven by factors including speculative trading, liquidity conditions, media sentiment and macroeconomic events. There is no capital guarantee attaching to any Crypto Asset acquired, held, or transacted through the Services. You may lose the entire value of the amount you commit.

Crypto Asset transfers recorded on a distributed ledger are generally irreversible once confirmed. If you send a Crypto Asset to an incorrect address, on an unsupported network, in an incorrect amount, or as a result of fraud (including fraud perpetrated by a third party who has gained unauthorised access to your account), 80 Eight may be unable to recover or reverse that transaction and will not be liable for the resulting loss save to the extent required by applicable Law.

Crypto Assets are not legal tender in South Africa and are not backed, insured, or guaranteed by the South African Reserve Bank, the FSCA, or any other public authority. Holdings of Crypto Assets are not covered by any deposit protection or investor compensation scheme.

The legal and regulatory treatment of Crypto Assets in South Africa, and other jurisdictions is still developing. Legislative or regulatory change, including changes to exchange control rules, tax treatment, or licensing requirements, may adversely affect the value, transferability, or legality of holding a Crypto Asset, and may affect 80 Eight's ability to continue offering a Service or product without notice.

Crypto Assets and the networks, protocols and smart contracts underlying them may contain undiscovered vulnerabilities, may be the target of attacks (including 51% attacks, exploits, or coordinated network attacks), and may be affected by forks, rollbacks, or protocol changes outside 80 Eight's control. Any of these events may result in a partial or total loss of value.

80 Eight may rely on third-party custodians, liquidity venues, banking partners, and blockchain infrastructure to deliver the Services. 80 Eight does not own or control such third-party infrastructure. Outages, insolvency, cyber incidents, or operational failure affecting a third party may delay, prevent, or reduce the value of a transaction, and you may not have a direct right of recourse against that third party.

The market for a given Crypto Asset may be illiquid at any given time. You may be unable to buy, sell, or withdraw a Crypto Asset at the price, time, or volume you want, and in periods of market stress, execution may be delayed, partial, or unavailable.

The risks in clause 4 apply specifically to the ZAR8 Token and the associated yield product referred to as “ZAR8 Yield”, in addition to the general risks described in clause 3.

The ZAR8 Token and ZAR8 Yield are proprietary 80 Eight products. They are not issued, endorsed, or guaranteed by the South African Reserve Bank, the FSCA, or any central bank. Their value and any prospective distribution are dependent on factors including the performance of the underlying reference asset(s), 80 Eight's operational and treasury arrangements, and prevailing market conditions.

Any reward or distribution (paid in Bitcoin) associated with ZAR8 Yield is not guaranteed, may fluctuate, and may be reduced to nil in any period. Past distributions are not indicative of future distributions. You should not acquire the ZAR8 Token, or rely on ZAR8 Yield, on the assumption of a fixed or continuing return.

The ZAR8 Token is designed to track the value of the South African rand and is issued and redeemed against rand at one to one. That design is not a guarantee of price stability: the reserve backing the token, the redemption process and the mechanism used to maintain the reference may fail, be suspended, or be adjusted by 80 Eight, and redemption may be delayed or suspended in the circumstances described in the App Terms and Conditions.

The ZAR8 Token and ZAR8 Yield are not yet available on the 80 Eight platform. Once launched, they will be offered on the basis of 80 Eight's existing FSCA authorisation.

80 Eight is an authorised Financial Services Provider under the FAIS Act, licence number FSP 49010, and is registered with the Financial Intelligence Centre as an accountable institution (registration numbers 44678 and 75247).

Authorisation as an FSP is not, and must not be understood as, a guarantee by the FSCA of the soundness of any specific Crypto Asset, the ZAR8 Token, ZAR8 Yield, or of 80 Eight's business generally. FSCA authorisation relates to 80 Eight's conduct as a financial services provider, not to the performance of any product.

5.2.1. As an authorised FSP rendering financial services, 80 Eight is subject to the General Code of Conduct for Authorised Financial Services Providers and Representatives, 2003, including the general duty under section 2 to render financial services honestly, fairly, with due skill, care and diligence, and in the interests of clients and the integrity of the financial services industry, and the disclosure obligations under section 7, including disclosure of material risks associated with a financial product.

5.2.2. 80 Eight is also subject to the Determination of Fit and Proper Requirements for Financial Services Providers.

5.2.3. This Statement is provided, among other things, to satisfy 80 Eight's disclosure obligations under section 7 of the General Code in respect of the Services and the products described in clause 4.

Authorisation as an FSP are conduct-of-business measures. They do not constitute prudential regulation of 80 Eight, and Client holdings are not protected by any FSCA-administered compensation or guarantee scheme.

80 Eight SA is an accountable institution under Schedule 1 to the FIC Act and is required to conduct client due diligence, ongoing monitoring, and reporting in accordance with the FIC Act and applicable Directives and Public Compliance Communications. As part of this obligation, 80 Eight may request identifying information from you, delay or decline a transaction, or file a report to the Financial Intelligence Centre, without being able to disclose that it has done so.

5.5.1. If you have a complaint, you should first refer it to 80 Eight's internal complaints resolution process in accordance with 80 Eight's Complaints Policy.

5.5.2. If your complaint is not resolved to your satisfaction, you may refer it to the Office of the FAIS Ombud (in respect of conduct relating to the rendering of financial services under the FAIS Act), and you retain the right to lodge a complaint directly with the FSCA.

6.1. Nothing in this Statement, on the 80 Eight website, or in any 80 Eight marketing material constitutes financial, investment, legal, or tax advice, or a recommendation that any Crypto Asset, the ZAR8 Token, or ZAR8 Yield is suitable for you.

6.2. You are solely responsible for evaluating whether acquiring, holding, or transacting in a Crypto Asset is appropriate for your financial circumstances, investment objectives, and risk tolerance, and for obtaining independent professional advice where you consider it necessary.

6.3. You should not acquire, hold, or transact in any Crypto Asset, the ZAR8 Token, or ZAR8 Yield with funds you cannot afford to lose in full.

7.1. To the maximum extent permitted by applicable Law, 80 Eight excludes liability for any loss arising from the risks described in this Statement, including losses resulting from market volatility, third-party infrastructure failure, or Client error, save where such loss arises from 80 Eight's gross negligence, wilful misconduct, or fraud, or where such exclusion is not permitted under the FAIS Act or other applicable Law.

7.2. This clause operates subject to, and does not override, any non-excludable right or protection available to you under the FAIS Act, the Consumer Protection Act 68 of 2008 (where applicable), or other mandatory law of your jurisdiction.

By using the Services, you acknowledge that you have read and understood this Risk Disclosure Statement, that you accept the risks described in it, and that you are acquiring, holding, or transacting in any Crypto Asset, the ZAR8 Token, or ZAR8 Yield at your own risk and discretion.

80 Eight may update this Statement from time to time to reflect changes in applicable Law, regulatory guidance, or the products offered. The version and effective date at the top of this Statement indicate the version currently in force. Material changes will be notified to Clients in accordance with the Terms of Use.