⚠️ Read before you trade
Transactions involving virtual assets carry the risk of total loss of the amount invested.
Virtual assets are not legal tender, are not issued or guaranteed by the Central Bank of Brazil and are not covered by the Credit Guarantee Fund (FGC, Brazil's deposit guarantee fund).
Do not invest funds you may need in the short term, or amounts you cannot afford to lose.
1. Purpose of this disclosure
1.1. This Disclosure describes the risks of transactions involving virtual assets made available through the Lexxen platform. It forms part of the Terms of Use (www.lexxen.com/terms) and must be read before the first transaction.
1.2. Its purpose is to enable an informed decision. This document does not exhaust all existing risks: the virtual asset market evolves rapidly and new risks may emerge.
1.3. This Disclosure does not constitute an investment recommendation, advice or analysis. Lexxen does not assess the suitability of any asset to the User's profile, objectives or financial situation.
2. Nature of virtual assets
2.1. A virtual asset is the digital representation of value that can be traded or transferred by electronic means and used for payments or for investment purposes, as defined in Article 3 of Law No. 14.478/2022 (the Brazilian Virtual Assets Law).
2.2. The User acknowledges that virtual assets:
| ❌ | are not legal tender in Brazil |
| ❌ | are not issued, guaranteed, backed or supervised by the Central Bank of Brazil |
| ❌ | are not bank deposits |
| ❌ | are not covered by the FGC guarantee |
| ❌ | are not, as a rule, securities, although some may be, in which case they are subject to the CVM (Brazil's securities regulator) |
| ❌ | do not have any promised, guaranteed or predictable return |
2.3. The legal framework for virtual assets in Brazil is recent and still under development. Law No. 14.478/2022 and the regulations of the Central Bank of Brazil may be amended in ways that affect the availability, the manner of provision or the cost of the services.
3. Market risks
3.1. Volatility. The prices of virtual assets may change abruptly and substantially over short periods, including within minutes, without apparent cause. Swings of tens of percentage points in a single day are common in this market.
3.2. Total loss. A virtual asset may lose all of its value, and there may be no mechanism for recovery, reimbursement or insurance.
3.3. Liquidity. There may be no counterparty available to execute an order at the desired time, or the price obtained may be significantly worse than expected. In periods of stress, liquidity may disappear.
3.4. Price formation. The virtual asset market operates 24 hours a day, seven days a week, is global, is fragmented across many platforms and has no trading halt mechanisms (circuit breakers) such as those found in traditional regulated markets.
3.5. Manipulation. Because the market is less regulated, there is greater exposure to price manipulation, schemes of artificial inflation followed by sell-off (pump and dump) and concentration of positions in a small number of holders.
3.6. Absence of intrinsic value. Many virtual assets are not backed by real assets and do not generate cash flow. Their price derives exclusively from supply and demand.
4. Risks specific to stablecoins
Relevant to the card backed by a virtual asset and to conversion transactions.
4.1. The peg may break. Stablecoins seek to maintain a value equivalent to a reference currency, but this peg is not guaranteed. There have been cases, in the global market, of stablecoins that lost their peg permanently, with significant losses for holders.
4.2. Issuer risk. Maintaining the peg depends on the solvency, reserve policy and governance of the stablecoin issuer, which is not Lexxen. Reserves may be insufficient, illiquid or not independently audited.
4.3. Redemption risk. The issuer may suspend, limit or impose conditions on the redemption of the stablecoin for fiat currency.
4.4. Freezing risk. Stablecoin issuers generally have the technical ability to block or freeze addresses and balances, including at the direction of foreign authorities. A balance may become unavailable without any action by Lexxen or the User.
4.5. Card use. In transactions with the card backed by a virtual asset, the price change between authorization and settlement may alter the amount actually debited, and a conversion spread applies.
5. Technological and operational risks
5.1. Irreversibility. Transactions on blockchain networks are, by nature, final and irreversible. There is no reversal, cancellation, chargeback or "undo".
5.2. Address or network error. Sending to an incorrect address, or to a blockchain network incompatible with the asset, results in permanent and unrecoverable loss. Neither Lexxen, nor the Partners, nor any authority is able to reverse it.
5.3. Network failures. Blockchain networks may experience congestion, abrupt fee increases, slowness, outages, splits (forks) or discontinuation, all of which are events beyond Lexxen's control.
5.4. Protocol failures. Smart contracts and protocols may contain exploitable vulnerabilities, resulting in loss of assets.
5.5. Custody. Assets are held in custody by an authorized Partner, not by Lexxen. A failure, security incident or insolvency of the custodian may affect the availability of the assets.
5.6. Unavailability. The platform may become temporarily unavailable due to maintenance, an incident or a third-party failure, including during periods of high volatility, when the User would wish to trade.
5.7. User security. Loss of credentials, absence of MFA, compromised devices, phishing and social engineering are frequent causes of loss of assets. The User is responsible for safeguarding their credentials.
6. Regulatory and counterparty risks
6.1. Regulatory change. Changes in Brazilian or foreign legislation may restrict, burden, suspend or prohibit transactions involving certain assets or services, including abruptly.
6.2. Tax treatment. The tax treatment of virtual assets may change. The User is solely responsible for calculating and paying taxes and for complying with ancillary obligations, including reporting crypto asset transactions to the Brazilian Federal Revenue Service (Receita Federal).
6.3. Counterparty risk. The services depend on Partners: VASPs, custodians, issuers and payment institutions. A failure, discontinuation, loss of authorization or insolvency of a Partner may affect the service and access to the assets.
6.4. Sanctions restrictions. Transactions may be blocked through the application of national and international restrictive lists, without Lexxen being able to reverse them.
6.5. Traceability. Transactions involving virtual assets are subject to identification rules and data sharing between service providers (Travel Rule) and to the mandatory reporting of suspicious transactions to the authorities.
7. Responsible use
7.1. Before trading, the User must:
- ✅ Understand how the asset and the network they intend to use work
- ✅ Check the destination address and the network before every transfer, always
- ✅ Trade only with amounts they can afford to lose entirely
- ✅ Diversify and avoid concentrating wealth in a single asset
- ✅ Keep MFA enabled and credentials under their exclusive control
- ✅ Be wary of promises of guaranteed returns, which do not exist in this market
- ✅ Seek guidance from an independent professional when necessary
7.2. Lexxen will never request passwords, authentication codes or private keys by telephone, e-mail, message or any other channel. Suspicious communications must be reported to compliance@lexxen.com.
8. User's declaration
8.1. By entering into transactions involving virtual assets, the User declares that they:
a) have read and understood this Disclosure in full;
b) understand that they may lose the entirety of the amounts used;
c) trade by their own decision, without inducement, promise of return or recommendation from Lexxen;
d) understand that Lexxen does not hold custody of the assets, does not execute the transactions in its own name and is not a VASP, acting as a technological interface for authorized Partners;
e) understand that the transactions are irreversible;
f) have the financial capacity to bear any losses;
g) are responsible for the tax obligations arising from their transactions.
8.2. Nothing in this Disclosure limits the rights guaranteed to the consumer User by the Brazilian Consumer Protection Code, nor excludes Lexxen's liability for willful misconduct or gross negligence.
9. Channels
| Purpose | Channel |
|---|---|
| Questions and support | support@lexxen.com |
| Compliance, fraud and reports | compliance@lexxen.com |
| Data Protection Officer (DPO) | Siffermann Sociedade Individual de Advocacia, Thiago de Oliveira Rocha Siffermann (OAB/GO 40.724), compliance@lexxen.com |
LEXXEN LTDA, CNPJ 63.987.111/0001-53 Goiânia/GO, August 31, 2026, version 1.0