Last Updated: January 29, 2026
Important: Paxify is a financial technology product that carries inherent risks. This disclosure outlines key risks associated with using our platform. Please read carefully and ensure you understand these risks before depositing funds.
Paxify is not a bank, and funds deposited are not bank deposits. Your funds are not insured by the FDIC, SIPC, or any other government agency. Unlike traditional bank accounts, there is no deposit insurance protecting your principal.
The Annual Percentage Yield (APY) advertised is an estimate and is not guaranteed. Returns are variable and subject to change based on market conditions, yield strategies, and other factors beyond our control. Past performance does not indicate future results. Your actual returns may be higher or lower than the estimated APY.
There is a risk of partial or total loss of principal. While we employ conservative yield strategies, no investment is entirely risk-free. Factors that could lead to loss include smart contract vulnerabilities, counterparty default, stablecoin de-pegging, regulatory changes, or platform insolvency.
Paxify primarily uses USD-pegged stablecoins (such as USDC). Stablecoins are designed to maintain a 1:1 peg with the US dollar, but this peg is not guaranteed. Stablecoins may de-peg due to:
If a stablecoin de-pegs, you may receive less than $1 per stablecoin when withdrawing or converting to fiat currency.
Paxify relies on blockchain technology and smart contracts. These systems carry inherent risks, including:
Paxify generates yield by deploying your funds to third-party protocols, lending platforms, and liquidity pools. These counterparties may default, become insolvent, or fail to return funds. We conduct due diligence, but we cannot eliminate counterparty risk entirely.
The regulatory landscape for digital assets and DeFi is evolving and uncertain. Regulatory changes could:
While we aim to provide instant or T+1 withdrawals, there may be circumstances where liquidity is constrained. During periods of high withdrawal demand, market stress, or protocol failures, you may experience delays in accessing your funds. In extreme scenarios, withdrawals could be temporarily suspended.
Paxify uses an assisted self-custody model. While you retain ultimate control of your funds, the platform abstracts key management to improve user experience. This introduces risks related to:
We implement industry-standard security measures, but no system is entirely immune to attack.
Paxify is a technology company subject to operational risks, including:
Paxify does not provide investment, financial, tax, or legal advice. The information provided on our platform is for informational purposes only. You should consult with qualified professionals before making financial decisions. Paxify is not responsible for any losses resulting from your use of the platform.
Paxify may not be suitable for all users. You should only deposit funds that you can afford to lose. Consider your financial situation, risk tolerance, and investment objectives before using our platform. If you are uncomfortable with the risks outlined in this disclosure, you should not use Paxify.
By using Paxify, you acknowledge that you have read, understood, and accepted the risks outlined in this disclosure. You agree that Paxify is not liable for losses resulting from these risks, and you use the platform at your own risk.
If you have questions about these risks, please contact us at [email protected] before depositing funds.