Disclosures

1. Introduction
   1.1 These disclosures (“Disclosures”) are incorporated into and will apply to all digital payment token services (and all agreements in respect of such services) entered into between HashKey Technology Services Pte. Ltd (“HTS”) and its customers. In these Disclosures, “you”, “your”, and any other cognate terms are a reference to such a customer. Where there is an overlap and/or conflict between the terms of any Agreement and these Disclosures or where the terms of the Agreement are silent on a particular matter, but such matter is covered by the terms of these Disclosures, the terms set out in these Disclosures shall prevail.

   1.2 This disclosures contain the Singapore-specific disclosures with which HTS must comply with as a matter of its obligations under the Payment Services Act 2019 (“PS Act”), the Payment Services Regulations (“PSR”), and the notices and guidelines promulgated thereunder. These obligations arise as HTS is a Major Payment Institution (“MPI”) licensed by the Monetary Authority of Singapore (“MAS” or the “Authority”) for the provision of Digital Payment Token (“DPT”) Services under the PS Act. These obligations include the requirement to adopt customer asset segregation and safeguarding measures to ensure the safety of customer assets (including DPTs).

2. Safeguarding of “assets” received from customers
   2.1 Under regulation 18B of the PSR, HTS is subject to the requirement to ensure that, no later than the next business day after any “assets” are received from you or on your account, the whole or such part, as may be prescribed, of the “assets” are safeguarded.

   2.2 For these purposes, “assets”, in relation to HTS, includes Digital Payment Tokens (“DPTs”) that are beneficially owned by a customer of HTS such as yourself, but does not include money.

   2.3 HTS safeguards your assets (including DPTs) by depositing them in custody accounts held on trust for you that is maintained with a third-party and independent safeguarding institution (the “Safeguarding Institution”). The safeguarding institution with whom HTS maintains the custody accounts is HashKey Xpert Limited, a trust or company service provider (TCSP) license holder in Hong Kong.

   2.4 Unless we have informed you of any contrary arrangements, the DPTs received from you will be deposited in a custody account together with, and commingled with, the assets (including DPTs) received by HTS from its other customers.

   2.5 As your assets (including DPTs) may be commingled with those of other customers of HTS in the same custody account maintained with the Safeguarding Institution, your interest in the assets may therefore not be identifiable (although HTS will maintain records of your interest in the assets that have been commingled). HTS does not generally support any method which presently exists or which may hereafter be developed, to associate certain DPTs or other cryptocurrencies with any particular metadata, and you acknowledge and agree that where any such DPTs/cryptocurrencies are delivered to HTS, any associated metadata may be lost, and HTS has no liability for any losses in relation thereto. HTS will receive, keep and administer the assets on a fungible basis and to re-deliver the assets not in specie but of the same denomination. There is a risk that your assets may be used to meet the default of other customers such that you may potentially be exposed to the losses of HTS’ other customers. In the event that there is a shortfall of assets (including DPTs) in the custody account, there is a risk that you may not recover all assets that are held for you.

   2.6 In the event that Safeguarding Institution becomes insolvent, you may not be able to fully recover your assets (including DPTs) held in the custody account. Any shortfall in the assets (including DPTs) may be shared among you and other customers of HTS (and/or the customers of Safeguarding Institution).

   2.7 The assets will be stored in devices which may be located in a foreign jurisdiction. The laws and practices in the foreign jurisdiction may be different from the laws and practices in Singapore, and any such differences may affect your ability to recover the assets.

   2.8 The terms and conditions that HTS has agreed with Safeguarding Institution that would apply to its safeguarding of HTS’ customers’ assets (including DPTs) are:
   (A) The Safeguarding Institution is responsible for the safekeeping of the assets and the Safeguarding Institution shall be responsible:
   a. to hold the assets in separate accounts in its books, to arrange for the customer assets to be deposited in the Wallet or otherwise held by or to its order as it may think proper for the purposes of providing for their safekeeping, and to record the amounts and locations thereof;
   b. to provide periodical reports, transaction advice and/or statements of accounts relating to the assets; and
   c. in the event of termination of this Agreement, to deliver or transfer the assets to the HTS or to such other person(s) as the HTS shall instruct within thirty (30) days of receipt of the notice, net only of any outstanding liabilities attaching to the assets of which the Safeguarding Institution is or becomes aware and of any Fees and expenses owed to the Safeguarding Institution.

   Further, HTS will, subject to the regulatory requirements effective from time to time, take steps to ensure that:
   (A) All assets (including DPTs) belong to HTS’ customers deposited in the custody account are held on trust by HTS for its customers.
   (B) The Safeguarding Institution must not claim any lien, right of retention or sale over any asset (including digital payment tokens) standing to the credit of the custody account, except —
   (i) where HTS has obtained the customer’s written consent and notified the Safeguarding Institution in writing of the written consent; or
   (ii) in respect of any charges as agreed upon in the terms and conditions relating to the administration or custody of the asset (including DPTs); and
   (C) the account is designated as a trust account, or a customer’s or customers’ account, which is distinguishable and maintained separately from any other account maintained with Safeguarding Institution in which HTS deposits its own assets (including DPTs).

3. Safeguarding of “relevant money” received from customers
   3.1 Under section 23 of the PS Act read with regulation 16(1) of the PSR, HTS will be subject to the requirement to ensure that, no later than the next business day after any “relevant money” is received from you or on your account, the whole or such part, as may be prescribed, of the “relevant money” is safeguarded. For these purposes, “relevant money”:
   3.1.1 means any money that is received by HTS from you, or on your account, in respect of the provision of its DPT Services, and that HTS continues to hold at the end of each business day;
   3.1.2 does not include all of the following —
   (i) any money paid to HTS to reduce the amount owed to HTS by you;
   (ii) any money that is repaid by HTS to you;
   (iii) any money which is paid to HTS, or which HTS has informed you will be used, to defray any fee or charge imposed by HTS for providing any payment service to you;
   (vi) any money paid to any other person that is entitled to the money.

   3.2 With reference to regulation 16(4) of the PSR, you hereby agree with HTS that all interests earned from the maintenance of relevant moneys received by HTS from you, or on your account, in a trust account does not accrue to you. In other words, all such interests shall be retained by HTS and to avoid doubt shall not constitute “relevant money” liable to be safeguarded under section 23 of the PS Act.

   3.3 HTS safeguards your relevant money by depositing the relevant money in a trust account maintained with a safeguarding institution. The safeguarding institution with whom HTS maintains this trust account is Standard Chartered Bank (Singapore) Limited (“SCB”), a Qualifying Full Bank in Singapore.

   3.4 The relevant money received from you will be deposited in a trust account together with, and commingled with, the relevant money received by HTS from its other customers.

   3.5 As your relevant money is commingled with those of other customers in the same trust account maintained with SCB, there is a risk that you may potentially be exposed to the losses of HTS’ other customers.

   3.6 In the event that SCB becomes insolvent, you may not be able to fully recover the relevant money held in the trust account. Any shortfall in the relevant money may be shared among you and other customers of HTS (and/or the customers of SCB).

4. Fees and charges
   4.1 In order that you, as a customer or potential customer of HTS, would have notice of the following information before using any payment service provided by HTS, HTS notes as follows.
   4.2 The exchange rate which HTS is offering in respect of any purchase or sale of a digital payment token will be displayed to you prior to entry into any trade.
   4.3 Unless otherwise notified to you in writing prior to any transaction, HTS does not charge separate fees apart from the exchange rate for the provision of its DPT Services.

5. Normal business days and hours
   5.1 Our normal business days and hours are 9:00am to 6:00pm on all days (other than a Saturday, Sunday or a public holiday in Singapore) on which commercial banks generally are open for the transaction of business in Singapore (“Singapore Business Day”). Any changes thereto will be published and updated at HTS’ Website from time to time. You agree that such publication shall be sufficient notice to you of our normal business days and hours, and any changes to the same. In the event of any discrepancy, the business hours as stated on HTS’ website will prevail.

   5.2 HTS will maintain personnel at its permanent place of business in Singapore to address any queries or complaints on each Singapore Business Day between 9:00am and 6:00pm.

6. Risk Warning on Digital Payment Token Services
   The Monetary Authority of Singapore (MAS) requires us to provide this risk warning to you as a customer of a digital payment token (DPT) service provider.

   Before you:
   (a) pay your DPT service provider any money or DPT; or
   (b) pay a third party any money or DPT under an arrangement by your DPT service provider,

   you should be aware of the following.

   1.Your DPT service provider is licensed by MAS to provide DPT services. Please note that this does not mean you will be able to recover all the money or DPTs you paid to your DPT service provider or any other third party referred to above, if your DPT service provider’s or the third party’s business fails.

   1A. You should be aware that MAS does not supervise or regulate your DPT service provider for the provision of unregulated services. This includes any service of trading digital payment token derivatives such as futures.

   2.You should not transact in the DPT if you are not familiar with this DPT. This includes how the DPT is created, and how the DPT you intend to transact is transferred or held by your DPT service provider.

   3.You should be aware that the value of DPTs may fluctuate greatly. You should buy DPTs only if you are prepared to accept the risk of losing all of the money you put into such tokens.

   4.You should be aware that your DPT service provider, as part of its licence to provide DPT services, may offer services related to DPTs which are promoted as having a stable value, commonly known as “stablecoin”.