Sailor Beware.

Important: Please read this document carefully. It describes the risks of using paype.cc. By opening an account, you acknowledge these risks.

1. Paype Is Not a Bank

paype.cc is a Money Services Business (MSB), not a bank. Your paype balance is not a bank deposit.

What this means for you:

• Your balance is not FDIC insured. There is no government backstop if the underlying institution fails.
• Your balance does not earn interest. Paype is not a savings product.
• Your funds are held in segregated accounts, separate from Paype's operating funds. Paype's business finances cannot touch your balance. But this is not the same as deposit insurance.

What protects your funds:

• Segregated accounts at regulated banking partners
• Per-Series fund segregation (your funds are not commingled with other whitelabel clients' funds)
• Cryptographic audit trail on every movement
• Multi-party approval on sensitive operations
• HSM-backed crypto custody with per-Series wallet segregation

2. Crypto Risks

2.1 Volatility

Cryptocurrency values can change dramatically in short periods. A crypto balance worth $10,000 today may be worth $5,000 tomorrow. You assume all currency risk.

2.2 Irreversibility

Crypto transactions are generally irreversible. If you send crypto to the wrong address, we may not be able to recover it. Always verify the destination address before confirming.

2.3 Blockchain Congestion

Network congestion can delay confirmation times and increase fees. During high-traffic periods, your transaction may take hours or longer. Paype is not responsible for blockchain network performance.

2.4 Fork and Airdrop Risk

Blockchain networks may fork, creating competing chains. Paype determines which fork to support in its sole discretion. We do not guarantee support for any particular fork or airdrop.

2.5 Smart Contract Risk

Smart contracts carry inherent risks including: code bugs, economic exploits, oracle manipulation, and governance attacks. Custom smart contract services are provided as-is. You assume all smart contract risk.

2.6 DeFi Protocol Risk

When you interact with decentralized finance protocols through Paype, you assume the risks of those protocols: smart contract failure, liquidity crises, oracle manipulation, and governance attacks.

2.7 Multi-Chain Risk

Paype supports multiple blockchains: Bitcoin, Ethereum, TRON, Arbitrum, Solana. Each chain has different security models, consensus mechanisms, and risk profiles. Bridges between chains carry additional risk.

3. Digital Asset Injection (Crypto Deposit) — Important Notice

3.1 Screening

Every digital asset injection transaction goes through our compliance screening process. We screen for: sanctions compliance, AML risk, source-of-funds assessment, and blockchain analytics scoring.

3.2 Right to Refuse

We may refuse to accept a crypto deposit if:

• The source wallet is associated with a sanctioned entity
• The source wallet has a history of involvement with illicit activity
• The funds originate from a known bad exchange or mixer
• The transaction fails our blockchain analytics risk threshold
• The deposit is from a jurisdiction subject to comprehensive sanctions

3.3 Refused Deposits

If we refuse a deposit, you must provide us with a return wallet address. All actual transfer fees (network fees, gas costs) for the return are your responsibility. We will deduct these fees from the returned amount.

3.4 Address Verification

Verify the deposit address before each injection. Your deposit address may change periodically. Do not save, bookmark, or whitelist the address. Always generate a fresh address through the app for each deposit.

3.5 Wrong Address or Unsupported Network

If you send assets to an incorrect address or via an unsupported network, contact us to initiate the recovery process. Recovery is not guaranteed. Fees for recovery attempts are your responsibility.

3.6 Delayed Credits

If you have injected funds but do not see them credited after an extended period, contact us. Delays may occur due to: blockchain congestion, compliance screening, or technical issues.

3.7 Custody

Your digital assets are stored by a custodian that adheres to bank-level security standards. Assets may be transferred between wallets for operational or security purposes. All custody transfers are recorded in the audit log.

3.8 Transaction Record

After successful injection, you can view the transaction record in your account. Every injection is recorded with a cryptographic signature in the tamper-evident audit trail.

4. Payment Rail Risks

4.1 SWIFT/International Wire Risk

International wires may be delayed, returned, or subject to intermediary bank fees. Correspondent banks may apply their own compliance screening. Paype is not responsible for intermediary bank actions.

4.2 ACH Risk

ACH transfers may be reversed (chargebacks) in certain circumstances. ACH reversals may take weeks to resolve.

4.3 Card Network Risk

Card networks (Visa, Mastercard) may decline transactions at their discretion. Paype does not control card network decisions.

4.4 Payment Request Risk

When you share a payment link, you are responsible for the goods or services being paid for. Client disputes about goods or services are between you and your client.

5. Technology Risks

5.1 Service Availability

We strive for high availability but do not guarantee uninterrupted service. Scheduled maintenance, infrastructure issues, or cyber attacks may cause downtime.

5.2 API and Software Risk

Our API, MCP Server, and software may contain bugs. Software is provided as-is.

5.3 Quantum Computing Risk

Current cryptographic systems (including those used by Paype, blockchain networks, and banking partners) are vulnerable to future quantum computing advances. A sufficiently powerful quantum computer could break the cryptographic assumptions underlying: blockchain consensus, wallet security, TLS/SSL encryption, and digital signatures. We monitor post-quantum cryptography developments and have a migration roadmap. However, no timeline for quantum-resistant upgrades is guaranteed.

6. Regulatory Risks

6.1 Regulatory Change

Cryptocurrency and fintech regulations are evolving. Changes in US federal or state law, or international regulatory frameworks, may affect Paype's ability to provide services to you.

6.2 Jurisdictional Restrictions

Paype serves specific jurisdictions. If you move to a restricted jurisdiction, we may need to close your account. It is your responsibility to inform us of changes to your residency or business jurisdiction.

6.3 Travel Rule

For crypto transactions exceeding applicable thresholds, we collect and transmit Travel Rule information as required by FinCEN. This information may be shared with the recipient's financial institution.

7. AI Risks

7.1 AI Decision-Making

Paype uses AI for compliance screening, risk assessment, and customer support. AI systems may produce errors, false positives, or false negatives. You may request human review of any AI decision.

7.2 AI Model Limitations

AI models have inherent limitations: they may reflect biases in training data, they may hallucinate or fabricate information, and their decision-making is not fully explainable. Paype's AI systems are designed with human oversight and appeal paths.

8. Operational Risks

8.1 Counterparty Risk

Paype relies on banking partners, correspondents, custodians, card networks, and blockchain networks. Failure of any counterparty may affect your ability to access or move funds.

8.2 Personnel Risk

Key-person risk exists. While Paype maintains succession plans and operational redundancy, loss of key personnel could affect operations.

8.3 Force Majeure

Paype is not liable for failures caused by events beyond our reasonable control: natural disasters, war, terrorism, pandemic, government action, internet infrastructure failure, or blockchain network failure.

9. No Investment Advice

Nothing on paype.cc or in Paype communications constitutes investment advice. Crypto holdings are not securities, deposits, or investment contracts with Paype. You should consult your own financial, legal, and tax advisors.

10. Acknowledgment

By opening a paype.cc account, you acknowledge that you have read, understood, and accepted these risks. This acknowledgment is required — no account can be opened without it.