Risk Disclosures

This General Risk Disclosure Statement (“Statement”) provides a high-level overview of the risks associated with using the products and services offered by the Solstice Foundation, USX Ltd, eUSX Ltd and SLX Ltd (collectively referred to herein as “Solstice”, “we”, “our”, or “us”). This Statement is intended for general informational purposes only and does not constitute legal, financial, or investment advice.

We do not guarantee that the services described are suitable for you, nor do we accept responsibility for any reliance placed on the information herein. This Statement does not cover all risks and should not be treated as a comprehensive risk analysis. Users are strongly encouraged to consult with independent advisors and conduct their own due diligence prior to engaging with any part of the Solstice ecosystem.

Unless otherwise noted:

  • “You”, “your”, or “User” refers to any user of the services or holders of associated tokens.

  • “Solstice” refers to one or more of the following: Solstice Foundation (Cayman Islands), USX Ltd (BVI), eUSX Ltd (BVI), or SLX Ltd (BVI).

  • Equinox Strategies Ltd (BVI), a BVI based approved and regulated funds manager.

  • Solstice Labs AG, a Swiss entity, provides technology development services only and does not issue, offer, or promote regulated financial instruments.


1. RISK OF TOTAL OR PARTIAL LOSS

Participation in any activity involving digital assets such as $USX, $eUSX, and $SLX carries the risk of significant loss, including total loss of capital. Users must assess their financial situation and risk tolerance before participating.


2. DIGITAL ASSETS ARE NOT LEGAL TENDER

$USX and $eUSX are not legal tender and are not backed by any government. Acceptance of these assets depends entirely on market trust and infrastructure. There is no obligation for any party to accept these tokens as a form of payment or store of value in the future.


3. MARKET VOLATILITY AND PERFORMANCE UNCERTAINTY

Prices of digital assets are subject to extreme fluctuations and speculative pricing. Arbitrage strategies employed may underperform or fail entirely under adverse market conditions. Historical performance is not indicative of future results.


4. LIQUIDITY RISK

Secondary market liquidity for $USX, $eUSX, or $SLX may not be available when needed. Redemption mechanisms may become temporarily or permanently impaired during periods of market stress, regulatory enforcement, or operational disruption.


5. CROSS-ENTITY AND STRUCTURAL RISK

The Solstice ecosystem includes multiple independent entities:

  • USX Ltd (BVI) issues $USX stablecoins backed by other accepted stablecoins.

  • eUSX Ltd (BVI) issues $eUSX as a tokenized instrument representing exposure to arbitrage strategies executed by Equinox Strategies Ltd (BVI).

  • Solstice Foundation (Cayman Islands) oversees governance and growth of the Solstice Protocol, an open network first developed on the Solana blockchain.

  • Solstice Labs AG (Switzerland) is a tech development firm and does not handle user funds or issue digital assets.

Risks may arise from cross-border operational complexity, legal friction, fund flow dependencies, or loss of sync between entities.


6. OPERATIONAL AND CYBERSECURITY RISK

Smart contracts and infrastructure may contain vulnerabilities or bugs that could be exploited. Users are exposed to phishing attacks, key theft, malicious contracts, or smart contract failures. Blockchain-based systems are irreversible and do not allow for the cancellation of fraudulent or accidental transactions.


7. NETWORK AND TECHNOLOGY RISK

The Solstice ecosystem is built on the Solana blockchain, which may suffer from network congestion, validator centralization, protocol errors, or outages. Any degradation in Solana’s operational capacity may impair the usability, transferability, or redemption of assets.


8. SERVICE AVAILABILITY

There is no guarantee that the minting, redemption, staking, transfer, or governance functions of the protocol will be available at all times. Network or infrastructure downtime may prevent you from interacting with your assets.


9. THIRD-PARTY DEPENDENCIES

Solstice leverages centralized and decentralized service providers, including custodians, exchanges, oracles, and payment processors. Any technical failure, insolvency, fraud, or regulatory enforcement against these partners could disrupt Solstice operations or impact user funds.


10. TAX AND DISCLOSURE OBLIGATIONS

You are solely responsible for complying with any applicable tax, reporting, or legal obligations in your jurisdiction. Solstice does not provide tax advice. Where required by law, entities within the Solstice ecosystem may be obligated to report or withhold certain information to regulatory or tax authorities.


11. NO ADVICE OR FIDUCIARY DUTY

Solstice does not act as your advisor or fiduciary. All communications are for informational purposes only. You must independently assess the appropriateness of any interaction or investment based on your own objectives and legal obligations.


12. REGULATORY RISK

Regulatory regimes applicable to digital assets are evolving and highly uncertain. Any future legal or policy changes in jurisdictions where you or Solstice operate may impact your ability to use Solstice services, access liquidity, or enforce legal rights. Regulatory classification may also change over time, potentially recharacterizing assets or services.


13. NO GUARANTEE OF RETURNS

While $eUSX is designed to reflect yield earned from arbitrage strategies, returns are not guaranteed. Strategy failure, market dislocations, counterparty risk, or hedging mismatches may lead to underperformance or loss of principal.


14. THIS STATEMENT IS NON-EXHAUSTIVE

This Statement does not cover all potential risks. Other risks—regulatory, financial, operational, technological, and unforeseeable—may emerge over time and materially affect your use of Solstice services or assets.


ACKNOWLEDGEMENT

By accessing the Solstice ecosystem or holding $USX, $eUSX, or $SLX, you confirm that you have read, understood, and accepted the risks outlined above and acknowledge that your participation is voluntary and at your own risk.

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