STABLEX

This Risk Disclosure Statement is issued by Alpha Street Technologies Private Limited (CIN: U58200HR2025PTC139082), operating the Stablex platform (stablex.in and account.stablex.in), in accordance with applicable Indian regulatory requirements and best practices for digital asset trading platforms.

By accessing or using the Services, you confirm that you have read, understood, and accepted all risks described in this document.

This Statement should be read in conjunction with our Terms of Service, Privacy Policy, and AML/CFT Policy, all of which form part of the agreement between you and Alpha Street Technologies Private Limited.

Risk Summary

The following table summarises the principal risks associated with using the Stablex platform. Mitigation descriptions reflect internal controls implemented by Stablex; unless otherwise stated, these controls have not been independently audited or certified, and their presence does not eliminate the underlying risk.

1. Price Volatility Risk

Digital assets, including USDT and other cryptocurrencies, can experience extreme price movements within very short timeframes. Unlike traditional financial instruments, crypto markets operate 24 hours a day, 7 days a week, 365 days a year, and are subject to:

• Sudden and unpredictable price swings of 20%, 50%, or more within a single day
• Market sentiment shifts driven by social media, news events, or influential individuals
• Thin liquidity conditions that can amplify price movements in either direction
• Correlation events where multiple assets move adversely at the same time
• Leverage-driven liquidation cascades that can accelerate downward price spirals

Note: While USDT (Tether) is a stablecoin designed to maintain a 1:1 peg with the US Dollar, the INR/USDT exchange rate on Stablex reflects real-time INR/USD market rates and therefore fluctuates with currency movements. The USDT price in INR terms is not fixed.

Past performance of any crypto asset is not indicative of, and does not guarantee, future performance. You should never invest more than you can afford to lose entirely.

2. Regulatory & Legal Risk

The regulatory environment for cryptocurrency in India and globally is rapidly evolving and subject to significant uncertainty. Regulatory changes may occur with little or no advance notice and could materially impact the Services.

Indian Regulatory Landscape

• The Government of India, RBI, SEBI, and other regulatory bodies may introduce new rules, restrictions, bans, or licensing requirements affecting crypto trading at any time
• Virtual Digital Assets (VDAs) are currently subject to a 30% flat tax on gains under Section 115BBH of the Income Tax Act, 1961, plus 1% TDS under Section 194S. These rates may change
• FEMA, 1999 restrictions may affect cross-border crypto transactions or USDT movements to foreign wallets
• FIU-IND may impose additional compliance obligations on reporting entities, which may affect platform features or user access

Potential Regulatory Outcomes

• Suspension or restriction of crypto trading for Indian residents
• Mandatory reporting obligations that may affect your privacy or tax position
• Forced liquidation or repatriation of digital assets
• Changes to the tax treatment of USDT or other stablecoins
• Delisting of specific assets or restriction of specific trading pairs

Alpha Street Technologies Private Limited actively monitors the regulatory environment and will endeavour to provide notice of material changes where possible. However, we cannot guarantee continued availability of the Services in their current form.

3. Blockchain & Network Risk

Transactions on blockchain networks are subject to risks that are entirely outside the control of Stablex or Alpha Street Technologies Private Limited.

Transaction Irreversibility

Network-Specific Risks

• ERC-20 (Ethereum): Subject to high and volatile gas fees. Network congestion can cause significant transaction delays or failures. Gas fees are non-refundable even if a transaction fails.
• TRC-20 (TRON): While generally low-cost, TRON network outages or validator issues can cause delays. Bandwidth and energy requirements may affect transaction processing.
• BEP-20 (BNB Smart Chain): Dependent on Binance's validator network. Centralisation of the BSC validator set presents a different risk profile to more decentralised networks.

Critical: Incorrect Network or Address Selection

• Always verify the destination network matches the receiving wallet's supported network
• Always copy-paste wallet addresses — never type them manually
• Use Stablex's address whitelisting feature to pre-verify withdrawal addresses
• Confirm address and network twice before submitting any withdrawal

Smart Contract & Protocol Risk

USDT and other tokens operate on smart contracts. Bugs, vulnerabilities, or exploits in the underlying protocol or token contract could result in loss of funds. Stablex does not control or audit third-party smart contracts.

4. Custody & Operational Risk

Stablex uses institutional-grade custody infrastructure provided by Liminal Custody (MPC wallets, hot/cold architecture). Despite these controls, the following risks remain:

• System failures, software bugs, or infrastructure outages may temporarily prevent access to your account or funds
• Third-party service providers (custody, banking partners, KYC providers, cloud infrastructure) may experience outages, security incidents, or business failures
• Cybersecurity threats including sophisticated hacking attempts, phishing, SIM-swap attacks, and social engineering may target the platform or individual users
• Human error — by platform staff or by users — may result in incorrect transaction processing
• Force majeure events (natural disasters, pandemics, civil unrest, government action) may disrupt operations

Custody Note: Funds held on the Stablex platform are not covered by the Deposit Insurance and Credit Guarantee Corporation (DICGC) or any equivalent government-backed deposit insurance scheme. Crypto assets are not bank deposits.

We maintain operational controls including MPC wallet segregation, withdrawal whitelisting, transaction monitoring, and internal access controls. These controls reduce, but do not eliminate, the risks described above, and no system can guarantee complete security against all possible threats.

5. Liquidity & Spread Risk

Liquidity refers to the ease with which an asset can be bought or sold at a stable price. On the Stablex platform:

• USDT liquidity is sourced from Indian OTC desks and international institutional providers. Liquidity availability may vary depending on market conditions, time of day, and broader market events
• During periods of high market volatility or stress, the bid/ask spread on INR-to-USDT trades may widen significantly, increasing the effective cost of your transaction
• Large orders may be subject to price impact — meaning the execution price may be less favourable than the quoted indicative price
• In extreme market conditions, we may temporarily suspend trading or limit order sizes to protect platform integrity and user funds
• INR withdrawal processing times depend on banking system availability and may be delayed during weekends, public holidays, or periods of banking system stress

6. Cybersecurity & Account Security Risk

You are responsible for maintaining the security of your Stablex account. The following risks exist and are primarily within your control:

• Credential theft: if your email, password, or phone number is compromised, your account may be accessed by an unauthorised party
• SIM-swap attacks: fraudsters may convince your mobile carrier to transfer your number, enabling them to bypass SMS-based 2FA
• Phishing: fraudulent websites, emails, or messages impersonating Stablex may attempt to steal your credentials. Stablex will never ask for your password via email or phone.
• Malware: keyloggers or screen-capture malware on your device can expose your credentials and session tokens
• Social engineering: attackers may impersonate Stablex support staff to manipulate you into revealing credentials or approving fraudulent transactions

Stablex will NEVER ask for your password, OTP, or private key via email, phone call, WhatsApp, or any other channel. If anyone claiming to be Stablex staff requests this information, it is a scam. Report immediately to support@stablex.in.

We strongly recommend enabling all available security features on your account, including strong unique passwords, authenticator-app-based 2FA, and withdrawal address whitelisting with cooling-off periods.

7. Comparison with Peer-to-Peer (P2P) Trading

This section is provided for general user awareness and describes structural differences between P2P crypto trading and the custodial, counterparty-matched model used on Stablex. It is not a representation that trading on Stablex is free of risk, and users should read it alongside, not in place of, the other risk factors in this document.

Risks generally associated with P2P trading

• Transacting with counterparties whose identity and intent are not independently verified
• Reports of Indian users' bank accounts being flagged or frozen after receiving funds later associated with suspicious P2P transactions
• Exposure to advance-fee fraud, payment reversal scams, and fake payment confirmation fraud on some P2P platforms
• Absence of a formal dispute-resolution mechanism if a counterparty fails to deliver or disputes a trade
• Risk of unknowingly receiving proceeds of crime from an unverified counterparty, which can create legal exposure for the recipient

Stablex's model

On Stablex, INR flows are between your verified bank account and Stablex's institutional bank account, rather than between two individual users. This removes the specific counterparty-identity and payment-dispute risks listed above. It does not remove the other risks disclosed in this document (including custody, cybersecurity, regulatory, and platform continuity risk), which apply to any centralised trading platform, including Stablex.

8. Stablecoin & Issuer Risk

USDT (Tether) is the primary digital asset traded on the Stablex platform. While USDT is designed to maintain a 1:1 peg with the US Dollar, the following risks are specific to stablecoins:

• De-peg risk: USDT may lose its dollar peg in the event of a crisis at Tether Limited (the issuer), regulatory action against Tether, or a broader market confidence collapse. Historical precedent exists for stablecoin de-peg events (e.g., UST/Terra in 2022).
• Issuer insolvency: Tether Limited is a private company. If Tether Limited becomes insolvent or is unable to maintain full reserve backing, USDT may not be redeemable at par value.
• Regulatory action against Tether: regulators in the US, EU, or other jurisdictions may take action against Tether Limited that affects USDT availability or value.
• Reserve transparency: Tether's reserves have historically been subject to scrutiny. Stablex does not independently verify Tether's reserve composition.

Stablex does not endorse or guarantee the stability, value, or solvency of Tether Limited or any other stablecoin issuer. You should conduct your own research on stablecoin risks before trading.

9. Tax & Reporting Obligations

Indian residents trading crypto assets on Stablex are subject to the following tax obligations under Indian law. This is a summary for general awareness only and does not constitute tax advice.

Current Tax Framework (as at 01 April 2026)

• Section 115BBH, Income Tax Act, 1961: Gains from transfer of Virtual Digital Assets (VDAs) are taxed at a flat rate of 30% (plus applicable surcharge and cess). No deduction for expenses (other than cost of acquisition) or set-off of losses is permitted.
• Section 194S, Income Tax Act, 1961: TDS at 1% is deducted at source on crypto transactions above specified thresholds. Stablex may be required to deduct and remit TDS on applicable transactions.
• GST: GST may be applicable on platform fees and services. GST obligations are dynamic and subject to regulatory clarification.
• Foreign asset reporting: USDT held in foreign wallets may constitute a foreign asset reportable under Schedule FA of your Income Tax Return.

Maintain complete records of all your transactions, including dates, amounts, INR values at time of trade, network fees paid, and withdrawal addresses. Stablex provides transaction history in your account dashboard, but you are responsible for your own tax record-keeping.

10. Platform Continuity & Business Risk

As an early-stage platform, Stablex and Alpha Street Technologies Private Limited are subject to business risks that could affect the continuity of the Services:

• Alpha Street Technologies Private Limited is a private company. Like any business, it is subject to risks including financial distress, changes in ownership or management, and regulatory licence revocation.
• In the event of platform discontinuation, we will endeavour to provide reasonable notice and facilitate the withdrawal of user funds. However, this cannot be guaranteed in all circumstances.
• Regulatory action against Alpha Street Technologies Private Limited could result in the suspension or termination of Services with limited notice.

User Action: We recommend not holding large balances on the Stablex platform for extended periods beyond your active trading needs. Withdraw funds to your personal wallet or bank account when not actively trading.

11. No Financial, Legal, or Tax Advice

Nothing on the Stablex platform, in this document, or in any communication from Alpha Street Technologies Private Limited or its staff constitutes:

• Investment or financial advice
• A recommendation to buy, sell, or hold any crypto asset
• Legal advice regarding your obligations under applicable law
• Tax advice regarding your reporting or payment obligations

You should seek independent professional advice from a SEBI-registered investment adviser, qualified lawyer, or Chartered Accountant before making any trading or investment decision. Stablex encourages all users to conduct their own thorough research (DYOR — Do Your Own Research) before trading.

12. Risk Acknowledgement & User Responsibility

By creating an account on, or continuing to use, the Stablex platform, you unconditionally acknowledge and agree that:

• You have read and understood this Risk Disclosure Statement in its entirety
• You are aware that cryptocurrency trading involves a high degree of risk and can result in the loss of all your invested capital
• You are trading solely on the basis of your own independent judgement and research, without reliance on Stablex or any of its staff for financial or investment advice
• You are financially capable of sustaining the total loss of any funds you deposit on the platform
• You are of legal age (18 years or older) and legally permitted to trade crypto assets in your jurisdiction
• You accept sole responsibility for your trading decisions, tax obligations, and compliance with applicable laws
• You understand that past performance of any crypto asset does not guarantee future results
• You will not hold Alpha Street Technologies Private Limited liable for losses arising from market movements, network failures, regulatory changes, or any other risk described in this document, save where such loss arises directly from Alpha Street Technologies Private Limited's own fraud, wilful default, or gross negligence, to the extent such liability cannot lawfully be excluded

13. Grievance Redressal

If you have a complaint or grievance regarding the Services, including in relation to any risk described in this document, you may raise it through the following escalation path:

• Step 1: Contact Stablex Support at support@stablex.in.
• Step 2: If unresolved, escalate in writing to the designated Grievance Officer, Mr. Anil Singh, at grievance@stablex.in. Complaints raised with the Grievance Officer will be acknowledged within 7 days and substantively resolved within 30 days of receipt of a valid complaint.
• Step 3: Complaints relating to suspected money-laundering, fraud, or reporting obligations may also be directed to the Financial Intelligence Unit – India (FIU-IND) or other applicable regulatory authority, where appropriate.

This grievance mechanism does not limit your right to pursue any other legal remedy available to you under applicable law.

14. Amendments to this Statement

This Statement may be updated from time to time to reflect changes in law, regulation, market practice, or the Services. Where an amendment is material, we will endeavour to notify users by email or through an in-app notice at least 7 days before the amendment takes effect, save where a shorter period is required to comply with law or regulatory direction. The version number and effective date at the top of this document indicate the version currently in force. Continued use of the Services after an amendment takes effect constitutes acceptance of the amended Statement.

15. Contact & Queries