Risk Disclosure

FraxNet P2P lets you trade crypto for fiat directly with other users. It is not a custodial exchange and does not hold your funds. Before you open your first trade, you should understand the risks below and decide whether peer-to-peer trading is right for you.

Nothing in this document is financial, legal, or tax advice. If you are unsure, consult a qualified professional.

FraxNet P2P v1 does notcustody crypto or fiat at any point in the trade. “Opening an order” coordinates the exchange but does not lock funds on the platform. The seller is expected to transfer crypto manually after verifying fiat receipt; the buyer is expected to confirm receipt after verifying the crypto transaction on-chain.

This model is simpler and trust-minimised (we never touch your funds), but it does mean you are responsible for verifying each step. If you release crypto before confirming fiat in your own bank, or vice versa, FraxNet P2P cannot recover the funds.

The most common P2P scams are:

• Fake payment notification. A buyer claims to have sent fiat (sometimes with a forged screenshot) and pressures the seller to release crypto. Always verify the payment in your own bank or payment app — never trust a screenshot.
• Chargeback / reversal. Some payment methods (PayPal, credit card, Zelle in some cases) allow the sender to reverse the transaction days or weeks later. For high-risk methods, wait until the payment is final before releasing.
• Off-platform pivot. A bad actor asks to move the conversation to Telegram/WhatsApp/email. Once off-platform, FraxNet P2P cannot help you. Any attempt to do so is flagged and may result in account suspension.
• Third-party payment.A buyer pays from an account that doesn't match their FraxNet P2P profile name. This is a money-laundering red flag; reject and open a dispute.

Before releasing crypto as a seller:

• Log into your own bank / payment app and confirm the exact amount has settled in your account.
• Confirm the sender name matches the buyer's FraxNet P2P display name.
• Check that the payment reference or memo matches the order ID.

Before confirming receipt as a buyer:

• Verify the crypto transaction on-chain (correct amount, correct address, correct token).
• Wait for the number of confirmations your wallet or exchange requires.

Crypto prices move quickly. A price that was attractive when you posted the ad may be unfavourable by the time an order is opened. FraxNet P2P supports fixed pricing today; floating (market-linked) pricing is planned. Until then, you are responsible for keeping your ads in sync with the market, or accept the spread.

Crypto-to-fiat P2P trading is regulated differently in every country. Some jurisdictions require KYC, licensing, or reporting thresholds. You are responsible for knowing and complying with the rules that apply to you — including reporting trades for tax.

FraxNet P2P provides trade history and receipts to help you, but we do not file taxes on your behalf and do not accept liability for any tax or regulatory consequence of your trading.

As a service built on modern cloud infrastructure, FraxNet P2P is subject to outages, bugs, and data loss, however carefully we try to avoid them. Keep your own records of trades, including screenshots of bank payments and transaction hashes.

Nothing on FraxNet P2P — ad terms, chat messages, dashboards, dispute decisions, or any text in this disclosure — constitutes investment, financial, or legal advice. Do your own research. Only trade amounts you can afford to lose.