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Risk Disclosure Statement (FX Only)

Ernora Pay
Effective Date: 11.06.2025

Important Risk Warning

Foreign exchange (FX) transactions involve material financial risk and may result in losses, additional costs, or unfavorable outcomes due to market movements and related factors. This Risk Disclosure Statement is intended to outline the principal risks associated with FX services provided by Ernora Pay so that customers can make informed decisions.

You should not enter into FX transactions unless you understand the nature of the transaction and the risks involved.

1. Exchange Rate Risk

Currency exchange rates can move rapidly and unpredictably due to market, political, economic, and other external factors. As a result, FX transactions may lead to:

  • a reduction in value when converting one currency into another;
  • unexpected gains or losses arising from exchange rate movements;
  • changes in the effective cost or value of cross-border payments and receipts.

For example, if you exchange one currency into another and the relevant rate changes before a reverse conversion or related settlement occurs, the resulting amount may be less favorable than originally anticipated.

2. Market Risk

FX markets are affected by a wide range of factors, including:

  • macroeconomic data such as inflation, employment figures, and GDP;
  • central bank actions, including interest rate decisions and monetary policy measures;
  • elections, government policy changes, geopolitical developments, and political instability;
  • market sentiment, positioning, and speculation;
  • natural disasters and other unexpected global events.

These factors may cause sharp and sudden changes in currency values, sometimes over very short periods of time.

3. Liquidity Risk

During periods of market disruption, reduced market activity, or outside normal trading conditions:

  • certain currency pairs may become less liquid or harder to execute;
  • bid-ask spreads may widen significantly;
  • execution may be delayed;
  • access to certain currencies may become limited or temporarily unavailable.

This may result in increased transaction costs or an inability to complete a transaction at the desired rate or time.

4. Timing Risk

FX rates can change continuously. A quoted exchange rate may no longer be available at the time a transaction is processed or executed, particularly in situations involving:

  • larger transactions that require additional handling or manual review;
  • volatile or less liquid currencies;
  • trading outside normal market hours or during weekends and holidays.

Where Ernora Pay provides a rate for a limited period, that rate may expire and be replaced with an updated quote if the transaction is not completed within the applicable time window.

5. Operational Risk

FX transactions may be delayed, interrupted, or fail due to operational issues, including:

  • system outages, technical errors, or connectivity failures;
  • delays or issues involving correspondent banks or service providers;
  • compliance, sanctions, or regulatory reviews;
  • incomplete, inconsistent, or inaccurate payment instructions;
  • banking holidays or operational closures in relevant jurisdictions.

Such delays may expose customers to adverse exchange rate movements while a transaction remains pending.

6. Counterparty Risk

Ernora Pay may rely on banks, payment institutions, liquidity providers, and other financial counterparties in order to facilitate FX transactions. There is a risk that:

  • a counterparty may fail, become insolvent, or cease operations;
  • funds may be delayed, restricted, or temporarily frozen because of counterparty issues;
  • services may be disrupted if an important banking or payment relationship ends.

Although Ernora Pay seeks to work with reputable counterparties, such risk cannot be fully eliminated.

7. Regulatory Risk

Changes in applicable laws, regulations, sanctions measures, or supervisory expectations may:

  • restrict or prohibit certain FX transactions;
  • increase compliance costs or documentation requirements;
  • delay processing due to additional review;
  • limit access to certain currencies, corridors, or jurisdictions.

Such changes may occur with little or no prior notice and may affect pending or future transactions.

8. No Investment or Financial Advice

Ernora Pay does not provide investment advice, financial advice, tax advice, or legal advice in relation to FX transactions. In particular, we do not:

  • recommend specific currencies;
  • advise on the best time to transact;
  • guarantee exchange rate outcomes;
  • provide forecasts or assurances regarding future market movements.

You remain solely responsible for your own decisions and should assess each transaction in light of your own circumstances and risk tolerance.

9. Costs and Fees

FX transactions involve costs that may affect the overall value received. These may include:

  • exchange rate margins;
  • fixed service or processing fees;
  • charges applied by intermediary banks, correspondent banks, or third-party providers.

These costs should be taken into account when assessing whether a transaction is appropriate for your needs.

10. Suitability

FX services may not be appropriate for every customer or every transaction type. Before entering into an FX transaction, you should consider:

  • your financial position and ability to absorb losses or additional costs;
  • your risk tolerance and commercial or personal objectives;
  • your understanding of FX products and related risks;
  • the intended purpose of the transaction and possible alternatives.

11. Customer Responsibilities

By using Ernora Pay’s FX services, you acknowledge and agree that you:

  • understand the principal risks described in this Statement;
  • accept responsibility for your FX transaction decisions;
  • have sufficient knowledge to assess the transaction, or have obtained independent advice where appropriate;
  • are financially able to bear potential losses or adverse outcomes;
  • will monitor relevant exposures, payment timing, and market conditions as necessary.

12. Contact Information

If you have questions regarding FX-related risks or require clarification about our FX services, please contact us at:

Ernora Pay
7404 King George Blvd., Suite 200
Surrey, Canada
MSB number: M23468645
Email: support@ernorapay.com

13. Acknowledgment

This Risk Disclosure Statement does not describe every possible risk associated with FX transactions. Customers should consider obtaining independent financial, legal, or tax advice before entering into FX transactions, especially where amounts are significant or the structure of the transaction is complex.

By proceeding with an FX transaction through Ernora Pay, you acknowledge that you have read, understood, and accepted the risks described in this Statement.