Risk Warning

CeyPay is a payment service operated by Ceylon Cash (Private) Limited ("Ceylon Cash", "CeyPay", "we", "us", "our") that lets merchants accept stablecoin and other digital asset payments. Using stablecoins and digital assets involves risks that are different from traditional bank payments.

This Risk Warning explains, in plain language, the main risks you should understand before you send, accept or settle payments through CeyPay. It focuses on payment usage, settlement, custody and blockchain transactions, not on buying digital assets as an investment. Please read it carefully. By using CeyPay, you confirm that you have read and understood these risks.

This Risk Warning does not describe every possible risk. It highlights the most important ones so that you can make informed decisions before you transact.

1. Transactions may be irreversible

Most digital asset and stablecoin transactions are recorded on a public blockchain and are final once confirmed. This means:

• Once a transaction is confirmed on the blockchain, it generally cannot be cancelled, reversed or "charged back".
• If you send funds to the wrong address, send the wrong amount, or use the wrong network or asset, those funds may be permanently lost and may not be recoverable by you, by us, or by anyone else.
• Neither CeyPay nor any blockchain network can guarantee the recovery of mistaken, fraudulent or unauthorised transfers.

Always double-check payment details, the recipient address, the asset and the network before confirming any transaction.

2. Regulatory and legal risk

The rules that apply to stablecoins and digital assets are still developing and differ from country to country. You should be aware that:

• Laws, regulations and official guidance relating to digital assets may change, sometimes at short notice, in Sri Lanka and in other jurisdictions.
• Regulatory changes may affect how, whether, or where CeyPay services can be offered, and may impact your ability to send, receive or settle payments.
• You are responsible for complying with the laws that apply to you, including any tax, reporting, exchange-control or licensing obligations in your own jurisdiction.

We aim to operate in line with applicable requirements and to align with the expectations of relevant authorities, including the Central Bank of Sri Lanka (CBSL) and the Financial Intelligence Unit (FIU), as the regulatory framework evolves.

3. Compliance checks and account restrictions

To meet our anti-money-laundering (AML), counter-terrorist-financing and sanctions obligations, we and our partners screen and monitor activity. As a result:

• We may need to verify your identity and the source of funds, and may request additional information before processing or settling a payment.
• A payment may be delayed, held, declined or reversed, and an account may be suspended or restricted, where required for compliance, fraud-prevention or risk reasons.
• We may be required to report certain transactions to, or share information with, regulators and authorities such as the FIU, and may be unable to disclose that we have done so.

4. Custody and settlement risk

CeyPay helps move and settle funds between customers, merchants and settlement partners. You should understand that:

• Digital assets and funds handled in connection with a payment are not bank deposits and are not covered by any deposit-protection or insurance scheme.
• Settlement is not always instant. The time to settle and the final amount received can be affected by network conditions, conversion rates, fees and the availability of our partners.
• We rely on third parties for custody, conversion and settlement. The failure, insolvency or default of a blockchain network, stablecoin issuer or settlement partner could affect access to, or the value of, funds.
• Network (gas) fees, conversion spreads and our own fees and charges apply to transactions and reduce the amount ultimately received. Applicable fees may change from time to time.

5. Operational and technology risk

CeyPay relies on blockchain networks and third-party infrastructure that we do not control. As a result, payments may be delayed, disrupted or fail due to factors such as:

• Network congestion and blockchain delays — high activity on a blockchain network can slow down confirmations or increase transaction (gas) fees.
• Exchange and liquidity provider outages — partners we rely on for pricing, conversion or settlement may experience downtime or service interruptions.
• Third-party service disruptions — outages affecting internet providers, cloud platforms, wallet providers or other infrastructure may temporarily affect availability.
• Maintenance, upgrades and errors — software updates, blockchain forks, bugs or technical faults may interrupt or affect transactions.

We work to keep CeyPay reliable, but we cannot guarantee uninterrupted, error-free or instant processing of every transaction.

6. Cybersecurity and fraud risk

Digital assets are a target for cybercriminals. You should take care to protect your accounts, devices and wallets. Common risks include:

• Wallet compromise — if someone gains access to your private keys, seed phrase or wallet, they may be able to take your funds. Never share your seed phrase or private keys with anyone.
• Phishing and scams — fraudsters may impersonate CeyPay, merchants or support staff through fake websites, emails, messages or links to trick you into sending funds or revealing credentials.
• Unauthorised account access — weak passwords, reused credentials or malware can allow others to access your account.

Use strong, unique passwords, enable available security features such as two-factor authentication, and verify that you are dealing with official CeyPay channels. We will never ask you for your seed phrase or private keys.

7. Value fluctuation and liquidity

Stablecoins are designed to hold a steady value (for example, tracking a currency such as the US dollar), but this is not guaranteed. The value of stablecoins and other digital assets may fluctuate, and a stablecoin may lose its peg in certain market conditions.

• The amount you ultimately receive or settle may differ from what you expect due to price movements, fees, conversion rates or timing.
• Digital assets may have limited liquidity at times, which can make it harder or more expensive to convert or settle them when you want to.
• You are responsible for understanding the assets you choose to use and the risks associated with them.

8. No investment, financial or tax advice

CeyPay is a payment service. Nothing on our website, in our dashboards or in our communications constitutes investment, financial, legal, accounting or tax advice, and nothing should be relied upon as such. We do not recommend that you buy, sell or hold any particular digital asset.

You should make your own decisions and, where appropriate, seek independent professional advice based on your own circumstances before using digital assets.

9. Your responsibility

By using CeyPay, you acknowledge that you understand and accept the risks described above. You are responsible for:

• Reviewing and confirming the accuracy of payment details before sending.
• Keeping your accounts, devices, wallets and credentials secure.
• Understanding the digital assets and networks you choose to use, and the laws that apply to you.

This Risk Warning should be read together with our Terms of Service and Privacy Policy.

10. Contact us

If you have any questions about this Risk Warning or the risks of using CeyPay, please contact us at [email protected].