Risk Warning Statement

1. General Risk Warning

Transactions involving digital currencies (including stablecoins such as USDT and USDC) carry inherent risks. While stablecoins are designed to maintain a stable value relative to a reference currency, they are not guaranteed by any government or central bank and may be subject to various risks as outlined below.

2. Exchange Rate Risk

The exchange rate between AUD and digital currencies (including stablecoins) may fluctuate. While stablecoins aim to maintain a 1:1 peg with the US Dollar, this peg is not guaranteed and may deviate under certain market conditions. The AUD/USD exchange rate also affects the effective cost of transactions.

3. Stablecoin-Specific Risks

• De-peg Risk: Stablecoins may temporarily or permanently lose their peg to the reference currency due to market conditions, reserve adequacy concerns, or issuer-specific events.
• Issuer Risk: The value of stablecoins depends on the financial health and operational integrity of the issuing entity (e.g., Tether for USDT, Circle for USDC).
• Regulatory Risk: Changes in regulations governing stablecoins in Australia or other jurisdictions may affect the availability, value, or legality of certain stablecoins.
• Reserve Risk: The adequacy and composition of reserves backing stablecoins may affect their ability to maintain the peg.

4. Settlement and Operational Risks

• Blockchain Network Risk: On-chain transfers are subject to network congestion, delays, and transaction fees that may vary.
• Irreversibility: Once a digital currency transaction is confirmed on the blockchain, it generally cannot be reversed. Sending digital currency to an incorrect wallet address may result in permanent loss.
• Counterparty Risk: While ELRC TRADING conducts due diligence on all clients, there remains a risk associated with counterparty transactions.

5. Technology and Security Risks

• Cybersecurity: Digital currency systems may be vulnerable to hacking, unauthorised access, or other cybersecurity threats.
• System Failures: Technical failures in blockchain networks, wallet software, or communication systems may disrupt services.
• Wallet Security: Clients are responsible for the security of their own digital currency wallets and private keys.

6. Regulatory and Legal Risks

The regulatory environment for digital currencies in Australia and internationally is evolving. Changes in laws, regulations, or government policies may affect the legality, availability, or taxation of digital currency services. ELRC TRADING will comply with all applicable regulatory changes, which may require modifications to our services.

7. No Financial Advice

ELRC TRADING does not provide financial, investment, tax, or legal advice. The information provided on our website and by our staff is for informational purposes only. Clients should seek independent professional advice before entering into digital currency transactions.

8. Client Responsibility

By using ELRC TRADING services, you acknowledge that you:

• Have read and understood this Risk Warning Statement;
• Understand the risks associated with digital currency exchange and remittance transactions;
• Are making your own independent decision to use our services;
• Accept responsibility for the security of your digital currency wallets; and
• Will seek independent advice where appropriate.

9. Contact

If you have any questions about the risks associated with our services, please contact:

ELRC TRADING Pty Ltd
Email: compliance@elrctrading.com
Phone: 03 8658 7856

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Last updated: February 2026 | Document Reference: ELRC_TRADING_RISK_WARNING_STATEMENT v1.0