1. Crypto-asset volatility
The price of ESPEES against ZAR, NGN or USD can move sharply in short periods. You may lose part or all of your funds.
2. P2P counterparty risk
Trades happen between users. Although ESPEES is escrowed by the Platform, fiat is sent directly between the parties. Confirm receipt before releasing escrow.
3. Payment-method risk
Bank reversals, chargebacks, mobile-money disputes and cash-payment fraud are user-managed risks. Use only payment methods you trust and keep proof of payment.
4. Regulatory risk
Crypto-asset regulation in South Africa is evolving. The Financial Sector Conduct Authority (FSCA) declared crypto-assets a financial product in 2022, and additional rules from SARB, FSCA and FIC may affect availability or pricing.
5. Technology risk
Smart-contract bugs, network outages, oracle errors and cyber-attacks can cause loss or delay. Always enable 2FA and a withdrawal PIN.
6. Tax risk
Gains may be taxable in South Africa as income or capital gains. Consult a registered tax practitioner.
7. No deposit insurance
Crypto-assets and balances on the Platform are not covered by the South African Deposit Insurance Corporation (CODI) or any similar scheme.
Only trade with funds you can afford to lose.