Telcoin provides a number of Stablecoins to its customers that are backed by reserves held in segregated accounts. Stablecoins are designed to maintain a stable value relative to a specific asset (e.g., the Canadian Dollar). All customers must be aware of the following risks:

Volatility Risk:

Due to market conditions, regulatory changes, or systemic disruptions, the value may deviate from the intended peg. 

Issuer Risk:

Telcoin backs Stablecoins with audited US Dollar or equivalent currency reserves, however if Telcoin was to fail this could result in a loss of value of the stablecoin.

Regulatory Risk:

Stablecoins are subject to evolving regulatory environments across jurisdictions. Changes in laws, government policies, or financial regulations could affect the stability or legality of stablecoin operations.

Liquidity Risk:

In times of high demand, the liquidity of stablecoins might be compromised. This means it could become difficult to buy or sell the stablecoin at a stable price, particularly in less liquid markets. 

Technological and Security Risks:

Stablecoins rely on blockchain technology, which is subject to technical risks, including smart contract vulnerabilities, cyberattacks, and system failures. Users should be aware of the potential for loss of assets due to these technological risks.

Currency Risk

The value of investments or transactions denominated in currencies other than your “home” currency are subject to fluctuations in exchange rates. These fluctuations can result in a loss of value when converting the stablecoin back into your “home” currency.

While Telcoin holds all reserves for backing Stablecoins in segregated accounts, Stablecoins are not protected as they are not recognised as an investment or asset that is protected by global asset protection schemes, such as, the SIPC (Securities Investor Protection Corporation) or the European Deposit Insurance Scheme.