Risk Disclosure Statement
Escrowr Technologies Pvt. Ltd. is required by FIU-IND guidelines to provide this risk disclosure to all users prior to trading.
1. VDA price volatility
Tether (USDT), while designed to maintain a 1:1 peg with the US Dollar, has in the past temporarily de-pegged. The INR/USD exchange rate itself fluctuates. The INR value you receive or pay may differ significantly from the value at the time of trade creation if the trade window is long.
2. Regulatory risk
The legal status of virtual digital assets in India is subject to change. The government may impose additional taxes, restrictions, or an outright ban. You may not be able to trade, transfer, or liquidate your USDT holdings in such an event. Escrowr operates within current law but cannot guarantee future regulatory conditions.
3. Technology risk
The Tron blockchain may experience congestion, forks, or outages. While Escrowr monitors for these, a network failure could delay USDT release beyond expected timeframes. Smart wallet software may contain unforeseen bugs.
4. Counterparty risk
While KYC is mandatory and AML screening is real-time, no system eliminates counterparty fraud entirely. If you transfer INR and the seller is fraudulent, dispute resolution may take 24–72 hours. Escrowr's escrow mechanism significantly reduces (but does not eliminate) this risk.
5. INR banking risk
Your INR bank transfer may fail, be frozen by your bank, or be reversed. Escrowr has no control over your bank's systems. Always verify the recipient details carefully before initiating transfer.
6. Taxation
VDA transfers attract a flat 30% tax on gains under Section 115BBH of the Income Tax Act, 1961 (effective FY 2022-23). A 1% TDS applies on certain transactions under Section 194S. Escrowr does not provide tax advice. Consult a CA before trading significant volumes.
7. Self-custody risk
Once USDT is released to a buyer's TRC20 wallet address, the transaction is irreversible. If the buyer provides an incorrect wallet address, funds cannot be recovered. Escrowr verifies the format of the address but cannot guarantee ownership of the destination.
8. Acknowledgement
By continuing to use Escrowr, you acknowledge that (a) you have read and understood these risks; (b) you are not trading on behalf of an undisclosed third party; (c) you have the legal right to transact in virtual digital assets in your jurisdiction; (d) you are not relying on Escrowr for financial, legal, or tax advice.
I understand the risks
You acknowledged this disclosure during KYC signup. A timestamped record is retained in your account's audit trail.