Risk Summary

Estimated reading time: 2 min

Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.

What are the key risks?

1. You could lose all the money you invest

  • The performance of most cryptoassets can be highly volatile, with their value dropping as quickly as it can rise. You should be prepared to lose all the money you invest in cryptoassets.
  • The cryptoasset market is largely unregulated. There is a risk of losing money or any cryptoassets you purchase due to risks such as cyber-attacks, financial crime and firm failure.

2. You should not expect to be protected if something goes wrong

  • The Financial Services Compensation Scheme (FSCS) doesn’t protect this type of investment because it’s not a ‘specified investment’ under the UK regulatory regime – in other words, this type of investment isn’t recognised as the sort of investment that the FSCS can protect. Learn more by using the FSCS investment protection checker here.
  • The Financial Ombudsman Service (FOS) will not be able to consider complaints related to this firm. Learn more about FOS protection here.

3. You may not be able to sell your investment when you want to

  • There is no guarantee that investments in cryptoassets can be easily sold at any given time. The ability to sell a cryptoasset depends on various factors, including the supply and demand in the market at that time.
  • Operational failings such as technology outages, cyber-attacks and comingling of funds could cause unwanted delay and you may be unable to sell your cryptoassets at the time you want.

4. Cryptoasset investments can be complex

  • Investments in cryptoassets can be complex, making it difficult to understand the risks associated with the investment.
  • You should do your own research before investing. If something sounds too good to be true, it probably is.

5. Don’t put all your eggs in one basket

If you are interested in learning more about how to protect yourself, visit the FCA’s website here.

For further information about cryptoassets, visit the FCA’s website here.

Risks of the stablecoins MiniPay supports

MiniPay supports USDT and USDC, stablecoins designed to track the value of the US dollar. They carry extra risks:

  • They can lose their peg. Their value can fall below US$1, including to zero.
  • Reserves may fall short. Each issuer holds reserves meant to back its tokens. If those reserves are insufficient, inaccessible or mismanaged, tokens may not be worth their full value.
  • Issuers can freeze tokens held at particular blockchain addresses.
  • You rely on third parties to convert. MiniPay does not redeem stablecoins with their issuers. Converting to or from pounds depends on third-party providers, who set their own rates and fees and may suspend services.
  • Exchange rates move. Stablecoins are priced in US dollars, so their value in pounds rises and falls with the GBP/USD rate.

Self-custody and Cash Link risks

  • Lost access means lost funds. MiniPay is a self-custody wallet. Your keys are encrypted and backed up to the Google or iCloud account you signed in with. If you lose access to that account, you may not be able to restore your wallet, and MiniPay cannot recover your funds.
  • Protect your Google or iCloud account. Anyone who gains access to it and your device could reach your backup. Use a strong password and two-step verification.
  • Transactions are final. Blockchain transactions cannot be reversed. Funds sent to the wrong person are usually lost.
  • Anyone with a Cash Link can claim it. Share a link only with the person it is for. If it is forwarded or posted publicly, someone else could claim the funds.
  • Network disruption. Congestion or outages on the Celo blockchain can delay or prevent transactions, including Cash Link claims.