Effective date: 13 September 2026 (draft)
Read this document carefully before using Magic Pay. By using the product you confirm that you understand and accept the risks described below.
1. General
1.1 This Risk Disclosure forms part of the Terms of Use. It does not list every possible risk. It describes the main risks associated with a card funded with digital assets.
1.2 Magic Pay is not a bank. See the “Not a Bank” Notice and Issuer Information.
2. Digital asset risk
2.1 Cryptocurrencies and stablecoins are not legal tender and are not issued by any government. Their value may change, and their circulation is regulated differently in different countries.
3. Stablecoin risk
3.1 The card balance is credited at the rate of 1 USDT = 1 USD. USDT is issued by a third party and is backed by that party’s reserves. Magic Pay does not control the issuer of USDT.
3.2 USDT may trade below $1, be restricted in circulation, or be frozen by its issuer at addresses associated with sanctions. Magic Pay does not compensate for losses arising from such events.
4. Network and erroneous transfer risk
4.1 Blockchain transfers are irreversible. Funds sent on an unsupported network, to a wrong address or in an unsupported token may be lost permanently.
4.2 Only USDT on the TRC20 (Tron) and BEP20 (BNB Smart Chain) networks is supported at present. A new top-up address is generated for each top-up.
4.3 Top-up addresses from earlier top-ups must not be reused. Funds sent to an address from a previous top-up are not credited automatically and may be lost permanently.
4.4 Transfers below the published minimum amount are credited with an additional processing fee under the Fee Schedule.
4.5 You are responsible for verifying the top-up address in the app before sending. Malicious software may replace an address copied to the clipboard; Magic Pay never communicates top-up addresses outside the app.
5. Currency conversion risk
5.1 When you pay in a currency other than the card currency (USD or HKD), the Visa card scheme rate on the processing date applies. That rate may differ from the rate on the purchase date and from reference rates. Magic Pay adds no markup to the rate; see the Fee Schedule.
6. Suspension risk
6.1 The card or the account may be suspended at the request of the issuing partner or the card scheme, by operation of law, or as a result of transaction monitoring under the AML/KYC Policy. During such a period your funds may be unavailable.
7. Third-party risk
7.1 Card issuance, processing, identity verification and the custody of funds are provided by partners: the licensed issuing partner, the card scheme and the verification provider. Outages or changes in partners’ terms may affect the availability of the service.
8. No deposit insurance
8.1 Funds on the card balance are not a bank deposit and are not insured by any deposit insurance scheme of any country. See the “Not a Bank” Notice.
9. Regulatory risk
9.1 Legislation on digital assets is changing. Individual features may become unavailable in your country, and the list of restricted countries may change. See Restricted Countries and Territories.
10. Tax risk
10.1 Transactions with digital assets may have tax consequences in your jurisdiction. Magic Pay does not provide tax or legal advice. You are responsible for assessing and fulfilling your tax obligations.