Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 mins to learn more.
| For the purposes of this article, Stablecoins include, but are not limited to, Tether (USDT-ERC20), Tether (USDT-TRC20) or USDC (ERC20). |
🪙 Understanding Stablecoin Risks
While Stablecoins (e.g., USDT, USDC) are designed to minimize volatility by pegging their value to assets like fiat currency, they are not risk-free.
1. Risk of Total Loss You must recognize that investing in stablecoins still carries the risk of total loss.
De-pegging: The stability mechanism can fail, causing the value to drop below its peg (e.g., $1.00).
Issuer Default: The company issuing the stablecoin could default on its obligations.
Regulatory Shifts: Changes in laws could impact the legal standing or usage of specific stablecoins.
2. Complexity & Stability Stablecoins are complex. They rely on intricate mechanisms (collateral reserves, algorithms) and blockchain technology. Unlike traditional cash, their value depends on the performance of reserve assets and market confidence.
3. Investment Comparability Stablecoins are not the same as cash or listed securities (stocks/bonds). They carry unique risks and respond differently to market dynamics.
🏦 Your Rights & Our Role
4. Paybis’s Role We act as a platform to facilitate buying and selling. We provide market access, but we do not offer personalized investment advice or guarantee returns. You are responsible for your own investment decisions.
5. Ownership & Responsibility
In-Wallet: You retain full legal and beneficial ownership of Stablecoins stored in your Paybis Wallet.
Transfers: Any Stablecoins transferred outside of Paybis are your sole responsibility. You cannot claim them from Paybis once they have been sent to an external address.
6. Insolvency Risk In the unlikely event that Paybis faces insolvency, it could affect the accessibility and management of the assets held within our platform.
⚖️ Regulatory Status & Protections
7. Regulatory Status Paybis.com is a VASP-registered business in Poland.
We adhere to the UK Financial Conduct Authority (FCA) financial promotions regime.
However, Paybis is not authorized or registered by the FCA.
Compliance with these rules does not remove the inherent risk of the investment.
8. Lack of FOS/FSCS Protection Stablecoin investments via Paybis are not protected by:
The Financial Ombudsman Service (FOS)
The Financial Services Compensation Scheme (FSCS)
Note: While you can lodge complaints about our conduct to the FOS, there is no compensation coverage for investment losses or poor performance.
📉 Market & Operational Risks
9. Liquidity & Selling Challenges Liquidity is not guaranteed. During market downturns or operational crises, it may be difficult to sell your stablecoins quickly at a stable price.
10. Operational Risks Like all digital assets, stablecoins are susceptible to cyber threats and financial crime. While Paybis implements strict security measures, investors must remain vigilant regarding their own account security.
💡 Investment Strategy
11. The 10% Rule (Diversification) Diversification is key to managing risk. A prudent strategy is to limit your cryptoasset investments (including Stablecoins) to a maximum of 10% of your net assets.
Disclaimer: This article is for informational purposes only and should not be taken as financial advice. Investors are advised to conduct their own research and consult with financial experts before making any investment decisions.*