RISK DISCLOSURE

1. GENERAL WARNING AND NATURE OF SERVICES

1.1. Service Risk Warning

The services provided by Alterswap AG involve the conversion of currencies and the execution of cross-border payment transactions. While foreign exchange and international payments are established financial activities, they are not without risk. By accessing our platform and utilising our services, you acknowledge that currency conversion and cross-border payments may result in financial losses as a result of exchange rate movements, execution delays, regulatory requirements, or operational disruptions. You should ensure that you fully understand the risks described in this document before using any Alterswap service.

1.2. No Financial, Investment, or Tax Advice

Alterswap AG operates solely as a financial intermediary and does not provide investment, financial, legal, or tax advice. All information provided on the platform, including exchange rate data, market indicators, or educational content, is for informational purposes only and does not constitute a recommendation to convert, hold, or transfer any particular currency at any particular time. You are solely responsible for conducting your own independent research and seeking advice from qualified professional advisors — including legal, financial, and tax advisors — before engaging in any transaction.

1.3. Nature of Foreign Exchange Services

Foreign exchange conversion is the process of exchanging one national currency for another at an agreed rate. The rate at which a currency is exchanged is determined by global market conditions and fluctuates continuously. Unlike fixed-rate financial products, FX rates are not guaranteed and may move against your interests between the time a quote is provided and the time a transaction is executed or settled. You acknowledge that the value of currency balances held in currencies other than your home currency will fluctuate in line with market exchange rates.

1.4. Past Performance

You expressly acknowledge that past exchange rates are not a reliable indicator of future rates. Historical FX rate data, currency trends, or prior transaction execution times do not guarantee or predict future values, rates, or settlement speeds.

2. MARKET AND FOREIGN EXCHANGE RATE RISKS

2.1. Exchange Rate Volatility

Foreign exchange markets are among the most liquid and actively traded markets in the world, operating 24 hours a day, five days a week, with limited weekend activity on certain pairs. Despite this liquidity, exchange rates can fluctuate significantly over short periods in response to macroeconomic data releases, central bank policy decisions, geopolitical developments, and changes in market sentiment. You acknowledge that these fluctuations may increase the cost of a currency conversion or reduce the value of balances held in foreign currencies when measured against your home currency.

2.2. Market Liquidity and Spread Risk

Liquidity refers to the ease with which one currency can be exchanged for another at a fair market price. You are hereby informed that:

- Reduced Liquidity: Under certain market conditions — including major economic announcements, public holidays in key financial centres, or periods of extreme market stress — liquidity in specific currency pairs may be reduced. This may result in wider spreads between the buy and sell price of a currency, increasing the effective cost of conversion.

- Emerging Market Currencies: Less frequently traded currencies, including those of emerging market economies, are generally subject to lower liquidity, wider spreads, and greater price sensitivity than major currency pairs such as EUR/USD or CHF/GBP. Transactions in these pairs may be subject to higher transaction costs or temporary unavailability.

2.3. Market Hours and Rate Gaps

While Alterswap endeavours to provide competitive rates during all standard market hours, foreign exchange rates can move materially between the close of one trading session and the opening of the next, particularly following major economic events announced outside of standard market hours.

- Rate Gaps: Exchange rates may move from one level to another without trading at the prices in between, particularly at market open on Monday mornings following weekend developments. This means that a rate locked in for a future-dated conversion may differ from the prevailing market rate at the time of execution if conditions have changed materially.

- Cut-Off Times: Payment settlement is subject to the operating hours of payment rails, correspondent banks, and receiving financial institutions. Transactions submitted after daily cut-off times may be processed on the following business day, during which exchange rates may have moved.

2.4. Interest Rate and Macroeconomic Risk

The relative value of currencies is significantly influenced by the monetary policy decisions of central banks, including interest rate changes, quantitative easing programmes, and forward guidance. Announcements by the Swiss National Bank (SNB), the European Central Bank (ECB), the Bank of England (BoE), the US Federal Reserve, or other major central banks may cause rapid and significant movements in currency pairs relevant to your transactions. Alterswap accepts no liability for losses arising from exchange rate movements caused by macroeconomic or monetary policy developments.

2.5. Multi-Currency Balance Risk

Clients who hold balances in multiple currencies within their Alterswap account are exposed to exchange rate risk on each non-home-currency balance. The aggregate value of your account, when expressed in any single reference currency, will fluctuate in line with prevailing exchange rates. Alterswap does not provide hedging services or forward contracts as a standard product offering. If you wish to discuss FX risk management solutions for larger or recurring exposures, please contact your relationship manager.

3. PAYMENT EXECUTION AND SETTLEMENT RISKS

3.1. Finality and Irrevocability of Payments

International payment transactions, once submitted and accepted for processing, are generally irrevocable. You are solely responsible for verifying that all payment instruction details — including beneficiary name, account number or IBAN, bank identifier code (BIC/SWIFT), and destination country — are accurate and complete before confirming any transaction.

- Incorrect Instructions: If you provide incorrect beneficiary details, Alterswap AG has no obligation and may have no technical capability to recall, redirect, or recover funds once a payment has been submitted to the relevant payment rail or correspondent banking network.

- Recall Requests: In the event of an error, Alterswap will make reasonable efforts to submit a payment recall request through the relevant network on your behalf. However, the success of any recall is subject to the cooperation of the receiving bank and cannot be guaranteed. Recall processes may take several weeks and may incur third-party fees.

3.2. Correspondent Banking and Rail Dependencies

Alterswap routes international payments through established payment rails, including SWIFT, SEPA, SEPA Instant, CHAPS, and Faster Payments. The execution of payments via these networks is subject to the operational procedures and processing times of correspondent banks and receiving financial institutions.

- Correspondent Bank Processing: Payments routed via SWIFT may pass through one or more correspondent banks before reaching the beneficiary's institution. Each intermediary in the payment chain may apply its own processing times, fees, and compliance checks. Alterswap does not control the processing of payments once they have been submitted to a correspondent bank.

- Receiving Bank Delays: The speed at which funds are credited to a beneficiary account is partly dependent on the receiving bank's internal processing procedures. Some receiving banks, particularly in certain jurisdictions, may take additional time to credit incoming international transfers.

3.3. Payment Rail Availability and Downtime

Payment rails operate according to published schedules and may be subject to planned maintenance or unscheduled outages.

- SEPA and CHAPS: These rails operate during published business hours on banking days. Payments submitted outside operating hours will be queued and processed at the next available processing window.

- SWIFT: While SWIFT is a global network with broad coverage, access to specific currency corridors may be affected by sanctions restrictions, correspondent banking availability, or the operational status of key routing institutions.

- Alterswap bears no liability for delays resulting from the scheduled or unscheduled downtime of payment infrastructure operated by third parties.

3.4. Settlement Timing Risk

Quoted settlement times are estimates based on standard operating conditions. Actual settlement times may vary due to:

- Compliance Screening: Payments may be subject to enhanced due diligence screening by Alterswap, correspondent banks, or receiving institutions, which may result in delays beyond the standard processing window.

- Public Holidays: Settlement times are affected by public holidays in both the sending and receiving country. Alterswap will endeavour to communicate expected delays where these are foreseeable, but accepts no liability for settlement delays caused by public holidays in foreign jurisdictions.

- Sanctions and Regulatory Holds: Payments to or from certain jurisdictions, individuals, or entities may be delayed or refused as a result of applicable sanctions regulations or AML/CTF screening requirements.

3.5. Internet and Technology Risks

The use of an online platform like Alterswap involves inherent risks related to internet connectivity and technology systems.

- System Failures: Hardware, software, or internet connection failures may lead to delays or prevent you from accessing the platform during time-sensitive periods.

- Phishing and Social Engineering: Malicious actors may attempt to impersonate Alterswap through fraudulent websites or communications to obtain your account credentials. Alterswap will never ask for your password via email, telephone, or any channel other than the secure account management interface. You are solely responsible for verifying the authenticity of any communication purportedly from Alterswap and for maintaining the security of your access credentials. Any suspected unauthorised access should be reported immediately to support@alterswap.ch.

4. OPERATIONAL AND THIRD-PARTY RISKS

4.1. Third-Party Dependencies

As a financial intermediary, Alterswap AG relies on a network of regulated third-party service providers to deliver its core services. You acknowledge that our services are subject to the operational stability, financial soundness, and regulatory standing of these partners:

- Banking Partners: Client funds are held in segregated accounts with licensed banking partners. The availability of deposit and withdrawal services, IBAN issuance, and payment processing depends on the continuity of these banking relationships. In the event that a banking partner terminates its relationship with Alterswap or becomes subject to regulatory action, access to certain services may be temporarily restricted. Alterswap will take all reasonable steps to maintain continuity of service in such circumstances and will notify affected clients promptly.

- Liquidity Providers: Our ability to execute currency conversions at competitive prices depends on external liquidity sources, including interbank market makers and aggregators. A disruption in the availability of these sources may lead to wider spreads, execution delays, or the temporary suspension of conversion services for specific currency pairs.

- Payment Service Providers: Certain payment rail access is facilitated through licensed third-party payment institutions. Any change in the regulatory status or operational capacity of these providers may affect the availability of specific payment methods.

4.2. Platform Availability and Technical Maintenance

While Alterswap strives for maximum platform availability, we do not guarantee uninterrupted access to all services at all times.

- Scheduled Maintenance: We periodically perform system updates and maintenance, during which some or all services may be temporarily unavailable. Where possible, we will provide advance notice of scheduled maintenance periods via email or platform notification.

- Unscheduled Outages: Hardware failures, software issues, or telecommunications disruptions may cause services to become unavailable without prior notice. Alterswap accepts no liability for financial losses arising from your inability to access the platform during periods of unscheduled downtime.

4.3. Cyber-Attacks and Security Breaches

Despite our security protocols, including data encryption, multi-factor authentication, and ongoing security monitoring, no electronic system is entirely immune to compromise.

- Platform Security: Sophisticated actors may target Alterswap's infrastructure. We maintain incident response procedures designed to minimise the impact of any security breach and will notify affected clients and relevant authorities in accordance with applicable data protection and financial services regulations.

- Third-Party Breaches: A security breach at one of our third-party providers — including KYC/KYB verification partners, banking partners, or technology vendors — could result in the unauthorised disclosure of personal data or a temporary disruption to services. Alterswap will take all reasonable steps to manage and mitigate such events, but accepts no liability for losses resulting from security incidents outside of its direct control.

4.4. Reliance on External Data and Pricing Feeds

Exchange rate data and indicative pricing displayed on the Alterswap platform is sourced from external market data providers and interbank pricing feeds. While we take reasonable steps to ensure the accuracy and timeliness of this data, we cannot guarantee that all displayed rates reflect the precise mid-market rate at any given moment. Rates are indicative until a conversion is confirmed. If you access Alterswap services via API integration, you assume the risk of any malfunctions or latency in your own software or the API connection.

5. REGULATORY AND LEGAL RISKS

5.1. Evolving Regulatory Landscape

The regulatory environment for payment services and foreign exchange intermediaries is subject to ongoing development at both Swiss and international levels. You acknowledge that:

- Changes in Law: Swiss authorities, including FINMA and the VQF, or international regulatory bodies may introduce new laws, ordinances, or guidelines that could affect the scope, cost, or availability of services provided by Alterswap AG. Changes in payment services regulation, AML/CTF requirements, or data protection law could require Alterswap to modify or discontinue certain services.

- Jurisdictional Restrictions: Alterswap reserves the right to restrict or discontinue services to clients in certain jurisdictions where regulatory changes make it impractical or unlawful to continue providing those services. Affected clients will be given reasonable notice where possible.

5.2. Taxation and Reporting Obligations

The tax treatment of foreign exchange gains, international transfers, and multi-currency account balances varies significantly by jurisdiction and individual circumstances.

- Client Responsibility: You are solely responsible for determining whether, and to what extent, any taxes apply to your use of Alterswap services, including any gains arising from currency conversion, income received via international payments, or the holding of foreign currency balances.

- Self-Reporting: Alterswap does not withhold taxes on your behalf. It is your responsibility to report relevant transactions and balances to the applicable tax authorities in your country of residence or incorporation.

- Automatic Exchange of Information: Under international tax transparency standards, including the OECD Common Reporting Standard (CRS) and the EU Directive on Administrative Cooperation (DAC), Alterswap may be legally required to report your account information and transaction data to Swiss tax authorities, who may in turn share this information with tax authorities in your country of tax residence. You consent to such reporting where required by applicable law.

5.3. Sanctions and AML/CTF Enforcement

As a regulated Swiss financial intermediary affiliated with the VQF Self-Regulatory Organisation, Alterswap AG is subject to strict obligations under the Swiss Anti-Money Laundering Act (AMLA) and applicable international sanctions regimes.

- Account Restrictions: We are legally mandated to freeze accounts, block transactions, or terminate client relationships if we identify links to sanctioned individuals, entities, or jurisdictions, including those identified on SECO, OFAC, EU, or UN sanctions lists.

- Enhanced Due Diligence: We may request additional documentation at any time regarding your Source of Wealth (SoW) or Source of Funds (SoF), particularly in connection with high-value transactions or changes in your account activity profile. Failure to provide satisfactory documentation within a reasonable timeframe may result in the suspension or termination of your account.

- No Liability for Compliance Actions: Alterswap AG shall not be held liable for any losses, including losses resulting from exchange rate movements during a period in which an account or transaction is subject to a compliance hold, where such actions are taken in accordance with applicable legal and regulatory obligations.

5.4. Legal Status of Currency Balances

The legal treatment of multi-currency account balances held with a non-bank payment institution, including the applicable protections in the event of insolvency, may differ from the treatment of deposits held with a licensed bank. Client funds held by Alterswap AG are not covered by the Swiss depositor protection scheme (esisuisse), as Alterswap AG does not hold a banking licence from FINMA. Client funds are instead protected through the requirement to maintain segregated accounts with licensed banking partners, as described in Section 6 of this disclosure.

5.5. Cross-Border Legal Complexity

International payments may be subject to the laws and regulations of both the sending and receiving jurisdiction. Certain payments may be subject to currency controls, reporting requirements, or restrictions imposed by the laws of the destination country. Alterswap does not provide legal advice regarding the permissibility of any specific payment under foreign law. You are solely responsible for ensuring that your use of Alterswap services complies with all applicable laws in your jurisdiction and in the jurisdiction of any intended beneficiary.

6. CLIENT FUNDS, SEGREGATION AND INSTITUTIONAL RISKS

6.1. Role of Banking Partners in Fund Custody

Alterswap AG acts as a financial intermediary and holds client funds in segregated accounts with licensed banking partners. Alterswap does not hold client funds in its own name for proprietary purposes. While we select our banking partners based on regulatory standing, financial soundness, and operational reliability, you acknowledge that Alterswap does not have absolute direct control over the solvency or continued operation of these third-party institutions.

6.2. Segregation of Client Funds

In accordance with Swiss financial standards and the requirements of our VQF SRO affiliation, Alterswap maintains a clear separation between client funds and Alterswap's own operational funds. Client funds are held in accounts that are designated for client purposes only and are not used to meet Alterswap's operational expenses or obligations.

- Record-Keeping: The protection of your specific balance entitlement depends on the accuracy of Alterswap's internal accounting records and the ability of our banking partners to recognise and give effect to those records. Alterswap maintains robust reconciliation procedures to ensure the accuracy of client balance records at all times.

- Pooled Accounts: In certain instances, client funds from multiple clients may be held in pooled accounts at the banking partner level, with individual client entitlements tracked through Alterswap's internal ledger. This is standard practice for regulated payment institutions. In the event of any dispute or insolvency, your entitlement is evidenced by Alterswap's internal records.

6.3. Banking Partner Insolvency Risk

In the event that a banking partner with which client funds are held becomes insolvent or subject to resolution proceedings, there is a risk that access to funds held in client accounts at that institution may be temporarily delayed. While segregated client accounts are intended to be protected from the general creditors of the banking partner, the practical implementation of this protection in insolvency proceedings may involve administrative delays and legal costs.

Alterswap maintains relationships with more than one banking partner where operationally possible, in order to reduce concentration risk. In the event of material concerns regarding the financial stability of a banking partner, Alterswap will take all available steps to transfer client funds to an alternative institution without delay.

6.4. Alterswap Insolvency Risk

In the event of Alterswap AG's insolvency, funds that are clearly identified as client funds and held in segregated accounts with banking partners are intended to be protected from the general estate of Alterswap and returned to clients. However, this process may be subject to administrative delays and legal costs associated with the insolvency process. Alterswap AG does not hold a banking licence and client funds are therefore not covered by the Swiss depositor protection scheme (esisuisse). Clients should take this into account when determining the appropriate level of funds to hold within their Alterswap account at any given time.

6.5. Insurance Limitations

While Alterswap and its banking partners employ institutional-grade security and operational controls, client funds held with Alterswap are not insured under any government-backed deposit insurance scheme. Any private insurance coverage maintained by Alterswap or its banking partners is subject to specific terms, conditions, and coverage limits that may not cover all categories of loss. Further details regarding insurance arrangements are available on request from your relationship manager.

7. TRANSACTION AND EXECUTION RISKS

7.1. Execution Rate and Slippage

Foreign exchange markets are dynamic and rates may move between the time an indicative quote is displayed and the time a conversion is executed. This difference — known as slippage — may result in a conversion being executed at a rate less favourable than the initial indication.

- Market Conditions: During periods of high volatility or reduced liquidity, the rate may change between quote and execution. Alterswap applies reasonable measures to minimise slippage, including short quote validity windows and real-time pricing feeds.

- Order Size: Large conversion orders may exceed the immediately available liquidity at the quoted price, resulting in partial or full execution at less favourable rates. Clients with large or recurring conversion requirements are encouraged to discuss execution strategies with their relationship manager.

- Acceptance: By confirming a conversion transaction, you agree to accept the rate at which the transaction is ultimately executed, even if it differs from the initial indicative quote within the parameters disclosed at the point of confirmation.

7.2. Quote Validity and Expiry

To protect clients against volatility risk, indicative exchange rate quotes provided on the platform are valid for a limited duration. If you do not confirm a transaction within the validity period of a quote, the quote will expire and a new quote reflecting current market conditions must be obtained. Alterswap accepts no liability for differences in rate between an expired quote and a subsequently obtained quote.

7.3. Transaction Finality and Amendment

Due to the speed of payment execution and the automated nature of our processing systems, once a transaction instruction has been submitted and accepted for processing, it may not be possible to cancel or amend it. You are solely responsible for verifying all transaction details — including the amount, currency pair, beneficiary name, account details, and payment reference — before confirming any transaction. Alterswap will take reasonable steps to assist with any amendment or recall request, but cannot guarantee the outcome of such requests once a transaction has been submitted to a payment rail or correspondent bank.

7.4. Execution Latency

While Alterswap utilises high-performance systems, the overall execution chain — including your internet connection, platform processing, and the response times of banking partners and payment rails — is subject to latency. In time-sensitive situations, even short delays may result in a different execution rate or a missed settlement window. Alterswap accepts no liability for losses resulting from execution latency that is attributable to factors outside of its direct control, including network congestion, banking partner processing delays, or internet connectivity issues on the client side.

7.5. Incorrect Beneficiary Details

You bear sole responsibility for the accuracy of all beneficiary payment details provided to Alterswap. Payments that are delayed, misdirected, or lost as a direct result of incorrect or incomplete beneficiary information provided by you are your responsibility. Alterswap will use reasonable endeavours to assist with any recovery effort but cannot guarantee the recovery of funds misdirected as a result of client error. Third-party fees charged by correspondent banks or receiving institutions in connection with a recall or amendment request will be borne by the client.

8. FINAL ACKNOWLEDGEMENT AND ASSUMPTION OF RISK

8.1. Formal Affirmation of Risk

By accessing the Alterswap AG platform and utilising our foreign exchange and cross-border payment services, you explicitly acknowledge that you have read, understood, and accepted the full scope of risks detailed in this Risk Disclosure. You confirm that you possess the necessary experience, knowledge, and financial capacity to evaluate the nature and risks of currency conversion and international payment services, and that you are aware of the limitations of the protections available to you as a client of a regulated non-bank payment institution.

8.2. Assumption of Liability

You agree that you are using the Alterswap platform at your own sole risk. You voluntarily assume all risks associated with:

- Financial Loss: Any and all loss resulting from exchange rate movements, conversion spread costs, or the timing of currency conversions.

- Execution and Settlement Risk: Any loss or delay resulting from payment rail outages, correspondent bank processing, incorrect beneficiary details provided by you, or factors outside Alterswap's direct control.

- Regulatory and Compliance Actions: Any restriction on access to your account or funds that results from Alterswap's obligations under applicable AML/CTF, sanctions, or data protection regulations.

- Technology and Operational Risk: Any loss resulting from platform outages, internet connectivity failures, cyber incidents affecting third-party providers, or other technology-related disruptions beyond Alterswap's reasonable control.

8.3. Release of Claims

To the maximum extent permitted by the laws of the Swiss Confederation, you hereby release Alterswap AG, its directors, officers, employees, and authorised third-party partners from any liability for direct, indirect, special, or consequential damages or losses arising out of your use of our services, provided that such losses do not result from Alterswap's gross negligence or wilful misconduct. This release applies regardless of whether such losses were foreseeable or whether Alterswap had been advised of the possibility of such losses.

8.4. Indemnification

You agree to indemnify and hold Alterswap AG harmless against any and all claims, costs, losses, or damages — including reasonable legal fees — arising from your breach of the Terms and Conditions, your violation of any applicable law or regulation (including Swiss AML/CTF and data protection laws), your provision of inaccurate or incomplete information during onboarding or in connection with any transaction, or your misuse of the Alterswap platform or services.

8.5. Amendments to this Disclosure

Alterswap AG reserves the right to update and amend this Risk Disclosure at any time in response to regulatory developments, changes in our service offering, or other material changes in the risk environment. The current version of this Risk Disclosure is always available on our website at alterswap.ch. Continued use of Alterswap services following the publication of an updated Risk Disclosure constitutes your acceptance of the revised terms. Where amendments are material, Alterswap will endeavour to notify existing clients by email in advance of the changes taking effect.

8.6. Concluding Statement

Foreign exchange conversion and cross-border payment services involve real financial risks, including the risk of loss arising from adverse exchange rate movements, execution delays, and the operational limitations of international payment infrastructure. If you do not fully understand the risks described in this disclosure, or if you are uncertain whether Alterswap's services are appropriate for your financial circumstances, you should seek independent professional advice before proceeding.
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REGULATORY

AlterSwap AG
Company Registration: CHE-400.153.137
Registered Address: Assetstrasse 37, CH 6438, Ibach, Switzerland
Regulatory Status: AlterSwap AG is an officially affiliated member of the VQF (Self-Regulatory Organisation), a supervised body officially recognised by the Swiss Financial Market Supervisory Authority (FINMA) for the purpose of combating money laundering and terrorist financing (AMLA). AlterSwap AG does not hold a banking licence from FINMA and does not provide traditional deposit insurance.

For cookie and tracking inquiries, please contact: support@alterswap.ch