Important Notice and Risk Disclosure
Before you use any part of MPChat, please make sure that you understand the risks involved and that you can afford to bear them.
This notice describes some, but not all, of the risks of holding, transferring and using digital assets, and of using the MPChat services in particular. It is a general overview. It is not exhaustive, and other significant risks may apply to you.
It is your responsibility to carry out your own research and to decide whether what MPChat offers is suitable for you. If you do not fully understand the risks described here, do not use MPChat and do not transfer assets to us.
Risks change over time. We will update this notice from time to time as circumstances develop.
You may lose some or all of your money. Only commit funds that you can afford to lose.
Terms used in this notice have the meaning given to them in the MPChat User Agreement.
1. General
MPChat is not a bank. Your MPChat Pay Balance is not a deposit. It is not insured by the Federal Deposit Insurance Corporation, and it is not protected by any government-operated deposit protection, deposit guarantee or investor compensation scheme in any jurisdiction.
We do not provide legal, tax, financial or investment advice. We strongly encourage you to obtain independent professional advice before making any financial decision, including a decision to buy, hold, transfer or use digital assets.
We do not assess suitability. We do not take account of your personal circumstances, financial position, needs, experience or objectives. Before you make any financial decision, evaluate your own financial situation and capacity carefully, and only use funds you can afford to lose.
2. General Risks of Digital Assets
Holding and using digital assets carries a risk of financial loss. Digital assets are a relatively new and evolving asset class, and their future performance is difficult to predict. They are inherently volatile, and the potential for loss can be significant.
The value of a digital asset can change unpredictably and substantially over a short period. It is not guaranteed or backed by any government. It can be affected by factors including:
the performance of global markets;
protocols not functioning as intended;
economic indicators and interest rates;
changes to the taxation of income and capital;
foreign exchange rates;
regulatory and legislative developments;
technological change; and
market sentiment.
Digital assets are not legal tender, and there is no assurance that any person will accept them in the future for their intended purpose. Market availability and liquidity may be limited or disrupted, and there is no guarantee that you will be able to sell or exchange a digital asset at any particular price, or at all.
The nature of digital assets increases the risk of fraud and cyber-attack, including double-spend attacks, routing attacks, rollback attacks and blockchain reorganisations. Digital asset transactions are irreversible, and an erroneous transaction can result in the permanent loss of your funds.
Much of the world does not comprehensively regulate digital assets, and there may be little or no protection available to you in the event of a loss. Digital asset exchanges and service providers may not be subject to regulatory supervision.
Jurisdictions take different approaches to digital assets, and because blockchain technology operates across borders, a digital asset may be subject to more than one legal framework at the same time. You must satisfy yourself that your use of any digital asset complies with all laws that apply to you.
Jurisdictions may also impose specific tax rules and treatments on digital assets. It is essential that you understand the tax consequences of your activity and that you comply with every reporting and payment obligation that applies to you.
Blockchain technologies are exposed to a wide range of risks, from malicious attack to technical difficulty and failure. These risks can result in the loss of funds transacted or held on a blockchain, in increased transaction costs, and in delays in execution.
3. Concentration in USDT
Your entire MPChat Pay Balance is held in USDT. This concentration is itself a risk, and you should treat it as the single most significant risk of using MPChat Pay and the MPChat Card.
USDT is designed to maintain a one-to-one peg with the United States dollar and is stated by its issuer to be backed by reserves. We do not issue USDT. We do not control its issuance, its redemption, its reserves or its management. We cannot guarantee that USDT will always be redeemable for one United States dollar, or that it will continue to trade at or near that value.
There is a risk that USDT loses its peg to the United States dollar, whether temporarily or permanently. If that happens, the value of your MPChat Pay Balance will fall, your purchasing power through the MPChat Card will fall, and you will bear that loss. We do not compensate you for a fall in the value of USDT.
There is also a risk relating to the issuer of USDT itself. If the issuer becomes insolvent, suffers a security breach, is subject to regulatory action, suspends redemptions, or freezes addresses, your MPChat Pay Balance may become impaired or unusable, and we may be unable to return it to you.
You have no direct relationship with, and no contractual claim against, the issuer of USDT by virtue of holding an MPChat Pay Balance.
4. Conversion and Foreign Exchange Risk
Your balance is denominated in USDT. Merchants are paid in United States dollars or in another local currency. Every Card transaction therefore involves a conversion, and every conversion exposes you to rate movement.
The Conversion Rate applied is the rate in effect at the moment the conversion takes place, and it may differ from a rate you saw earlier in the App or elsewhere. Where a transaction is authorised and later settles, the rate applied at settlement may differ from the rate applied at authorisation, and the amount finally debited from your balance may differ from the amount you expected.
A refund involves a second conversion, at a different time and at a different rate from the original transaction. As a result, the amount of USDT credited to you on a refund may be more or less than the amount of USDT originally debited from you. We do not compensate you for a shortfall, and we do not recover a surplus from you. This is an inherent consequence of holding your balance in one currency and paying merchants in another.
The same applies to an authorisation hold. Where a merchant holds an amount and later confirms a different final amount, rate movement between the two events may change the amount of USDT ultimately debited.
5. Counterparty Risk
Counterparty risk is the risk that another party to a transaction or arrangement fails to meet its obligations.
We rely on a number of counterparties that we do not control, including the issuer of USDT, card issuers, card networks, acquirers, conversion counterparties, banking partners, the Wallet Infrastructure Provider, cloud infrastructure providers and blockchain networks.
If we, or any third party holding or handling assets or funds connected with the services, becomes insolvent or suffers a security breach, your assets may be at risk, and you may suffer a partial or total loss.
We carry out due diligence on the third parties we engage, both at onboarding and on an ongoing basis, covering security and financial standing. We cannot guarantee that a breach will not occur, or that assets will be fully secured.
6. Fraud and Security Risk
Fraud and security risk includes unauthorised access to your account, identity theft and the misuse of your funds. Identification documents can be stolen and used to open fraudulent accounts or to conduct unauthorised transactions.
You should keep your identification documents secure, never share a password, PIN, passkey or verification code with anyone, and protect every device you use to access MPChat. No member of our staff will ever ask you for your password, PIN or a verification code.
We operate customer onboarding controls, including KYC checks, and we monitor transactions for suspicious activity. These controls reduce risk. They do not eliminate it. If you notice a transaction you did not authorise, report it immediately through the in-app support chat or at [email protected]. For card transactions, note the sixty (60) day deadline in the MPChat Card Terms and Conditions.
Be alert to social engineering. Fraudsters may impersonate our support staff, offer investment returns, or ask you to move assets to a "safe" address. A transfer you authorise, even under deception, is irreversible and generally cannot be recovered.
7. Market Risk and External Uncertainty
Market risk is the potential for loss caused by adverse price movement, which may arise from changes in asset prices, interest rates or foreign exchange rates. We cannot control external economic conditions or market dynamics.
The value of digital assets fluctuates constantly and may fall significantly. Unlike government-issued currency, digital assets rely on technology and on confidence, and there is no central authority to stabilise their value in a crisis. Transacting in digital assets can result in substantial financial loss. Do not commit more than you can afford to lose.
8. Insolvency Risk
Insolvency risk is the risk that a company cannot meet its obligations. There is a possibility that we become insolvent and are unable to continue to provide services to you. We maintain reserves intended to allow us to continue to operate, but this is not a guarantee.
If we become insolvent, your ability to recover your MPChat Pay Balance may be limited, may be delayed, and may depend on insolvency law and on the treatment of digital assets under that law, which is unsettled in many jurisdictions. Your MPChat Pay Balance is not covered by any deposit protection or investor compensation scheme.
9. Tax Risk
Transacting in digital assets can create tax consequences that are complex and that differ between jurisdictions. You are solely responsible for determining, reporting and paying every tax that arises from your activity. We do not provide tax advice, and we do not determine, collect, report or remit tax on your behalf except where the law requires it. You should obtain independent tax advice before you buy, hold or transact in digital assets.
10. Regulatory and Compliance Risk
Regulatory risk is the risk that a change in law, regulation or interpretation causes you loss. Compliance risk is the risk of being found in breach of a law or regulation.
The regulatory status of stablecoins and of digital asset services remains unsettled in many jurisdictions, and it is difficult to predict how authorities will regulate them or amend existing law. We may have to cease offering a service, restrict its availability in a jurisdiction, or change how it works, in response to a regulatory development, and we may have to do so at short notice or without notice. We are committed to complying with the law applicable to us, now and in the future.
We may also be required to freeze, hold or decline a transaction, or to restrict or close your account, and we may be prohibited by law from telling you that we have done so or why.
11. Risks Specific to MPChat Web3
MPChat Web3 is a self-custody wallet. The risks are different in kind from those of MPChat Pay, and they fall on you.
11.1 You are the only party who can authorise a transaction
Private keys are generated and used inside a trusted execution environment operated by the Wallet Infrastructure Provider. Neither we nor the Wallet Infrastructure Provider holds your keys in usable form, and neither of us can sign a transaction, move an asset, reverse a transaction or freeze an asset in your MPChat Web3 wallet. Anyone who obtains the use of your authenticators can transact from your wallet, and we have no way of distinguishing that person from you.
11.2 There is no recovery phrase, and no recovery by us
MPChat Web3 does not issue a recovery phrase or seed phrase, and there is no offline backup you can write down and store. Access depends entirely on the authentication methods enabled on your account.
If you lose access to all of your enabled authentication methods, you will lose access to your MPChat Web3 wallet and to everything in it, and that loss may be permanent. Neither we nor the Wallet Infrastructure Provider can restore your access or recover your assets, because neither of us holds the means to do so.
Where the App allows it, enable more than one authentication method, and keep the devices and accounts associated with them secure and available to you.
11.3 You cannot currently export your wallet
MPChat Web3 does not currently allow you to export your private key or to migrate your wallet to another wallet application. Your MPChat Web3 wallet can only be operated through MPChat.
Consider carefully what this means. If we cease to provide MPChat Web3, if we cease to operate, if the Wallet Infrastructure Provider ceases to provide its service, or if you lose access to MPChat for any reason — including a restriction based on your location, or a suspension or termination of your account — you may be unable to access or transact with the assets in your MPChat Web3 wallet, temporarily or permanently. You should take this into account when deciding how much to hold there.
11.4 Dependence on third-party infrastructure
MPChat Web3 depends on the Wallet Infrastructure Provider and on the cloud infrastructure on which it runs. We do not control that infrastructure. An interruption, defect, security failure, change of terms, withdrawal of service or insolvency affecting the Wallet Infrastructure Provider or the underlying cloud infrastructure may prevent you from accessing or transacting with your wallet, and may cause you loss.
11.5 On-chain risk
A blockchain transaction is irreversible. Once broadcast and confirmed, it cannot be recalled or cancelled by anyone.
If you send assets to an incorrect, incompatible or non-existent address, or on the wrong network, they will in all likelihood be permanently lost, and no one can recover them. You bear network fees and gas, and a transaction may fail while still consuming fees. Blockchain networks can suffer congestion, delay, forks, reorganisations and attacks, any of which may cause delay, failure or loss.
11.6 Smart contracts and third-party applications
Where you connect to a third-party protocol, smart contract, decentralised application, bridge or exchange, you do so at your own risk and on that third party's terms. We do not operate, audit, endorse or guarantee any of them. A smart contract may contain defects or malicious code, and interacting with one may result in the total loss of the assets you expose to it. Approvals you grant to a smart contract may allow it to move your assets in future without further action by you.
12. Risks Specific to MPChat Pay
Your MPChat Pay Balance is recorded and administered by us, and you instruct us using your account credentials. This means we can freeze, hold or decline a transaction where the User Agreement permits or the law requires, and it means that anyone who obtains control of your account can instruct us in your name.
A transfer of USDT is irreversible once executed. We act on the instructions given through your account, and we are not able to recall a transfer because it was mistaken, because it went to the wrong recipient, or because you later regret it. This applies equally to gifts and red packets sent inside a chat.
If you deposit the wrong asset, use an unsupported blockchain network, or send to an address other than the one we provided, your assets may be permanently lost. We have no obligation to recover them and may be technically unable to do so.
13. Risks Relating to Bots and Mini Apps
Bots and Mini Apps that run inside MPChat are owned and operated by independent third parties, not by us. We are not the provider of the goods, services or content they offer.
We do not verify, guarantee or oversee what a Service Provider delivers in exchange for a payment.
A Service Provider may misuse or mishandle the information you give it, and we have no control over that information once it has been transmitted.
A Service Provider may stop operating, remove features or shut down at any time, without notice. We may also remove a Bot or Mini App from MPChat.
If you lose tokens, points, credits, items, prizes, progress, media, files or any other asset or utility that a Service Provider held for you, we are not liable and we will not compensate you, whatever the reason.
A payment you make to a Service Provider from your MPChat Pay Balance is irreversible, and any refund is a matter for that Service Provider under its own terms.
Treat a Bot or Mini App with the same caution you would apply to an unfamiliar website.
14. Limits of End-to-End Encryption
Where end-to-end encryption applies, your message content is encrypted in transit and is intended to be readable only by you and your intended recipients.
Encryption does not do everything. It does not conceal metadata such as who you messaged and when. It does not protect content once a recipient has it, and a recipient may screenshot, copy, forward or disclose anything you send. It does not apply to content you send to a Bot or within a Mini App. It does not protect you if a device is compromised or if someone gains access to your account.
We cannot recover the content of an encrypted chat for you, including if you lose your device or your account.
15. Risks Relating to the MPChat Card
A Card is a prepaid card funded from your MPChat Pay Balance, and it carries risks of its own.
A transaction may be declined because your available balance is insufficient, because the merchant falls within a restricted category or is a named restricted merchant, because the transaction is connected with a restricted country or region, because of an authorisation hold, or because of a risk control that we or the Card Issuer applies. Restrictions are updated dynamically, and a transaction that succeeded before may be declined later.
A completed payment cannot be stopped or reversed, and any refund must be arranged with the merchant.
A chargeback is not guaranteed to succeed. It must be raised within sixty (60) days of settlement, it carries a non-refundable fee of thirty-five United States dollars (US$35) per case, and it cannot be cancelled once submitted. The outcome is determined by the card network's rules and the merchant's response.
We are not a party to your transaction with a merchant, and any dispute about goods or services must be taken up with that merchant.
Card products, features, fees and limits change, and a Card product may be discontinued.
16. Availability of the Services
We may add to, modify, suspend, restrict or discontinue any part of MPChat at any time. The services may also be interrupted by maintenance, by technical failure, by the act of a third party, or by an event outside our control.
We do not guarantee that the services will be available when you need them, and we are not liable for loss arising from unavailability, including a loss that arises because you were unable to transact at a particular moment or at a particular price.
17. Questions
If anything in this notice is unclear to you, contact us before you use the services.
Email: [email protected]
In-app: the support chat in MPChat
Important Notice and Risk Disclosure · Version 2.0.0 · Effective August 5, 2026