Terms & Conditions

Version date: 2.0 dated 1 June 2026 (replacing version 1.0 dated 19 June 2024)

These Terms of Use govern the relationship between you and PEXX. They apply each time you use or access the Services on the PEXX website (https://pexx.com) or the PEXX application. These Terms of Use also set out important information that you need to know.

These Terms of Use form a legal Agreement between you and us.

How these Terms of Use are structured

These Terms of Use are made up of the following parts:

(a) Master Terms (clauses 1 to 17), which apply to every Service we provide to you;

(b) Schedule A — Custody and Wallet Services, which applies whenever we hold Supported Digital Assets for you;

(d) Schedule C — PEXX Card, which applies if you are issued a Card; and

(e) Schedule D — PEXX Account (fiat balances), which applies if you hold a fiat balance with a Partner Bank through your PEXX Account.

A Schedule applies only to the Service it covers. If a Schedule conflicts with the Master Terms, the Schedule prevails for that Service only. Defined terms used in a Schedule have the meaning given in clause 1 unless the Schedule says otherwise.

If we hold Supported Digital Assets for you, Schedule A contains important information about how we hold them, how they are protected, what happens if we become insolvent, and when we will compensate you for a loss. Please read it.

PEXX is registered with AUSTRAC to provide digital currency exchange services in accordance with the AML/CFT Act, and its digital currency exchange registered provider number is DCE100851583-001. PEXX is also registered as an independent remittance dealer on the AUSTRAC Remittance Sector Register in accordance with the AML/CFT Act, and its registered independent remittance dealer number is IND100851583-001.

Please read these Terms of Use carefully.

Cryptocurrencies are different to electronic money and are not regulated in the same way as regular currency. We do not provide the Services to you under an Australian financial services licence. PEXX is not a bank and is not an authorised deposit-taking institution. Digital Asset Balances and any Yield Offer are not deposits, are not guaranteed by PEXX or by any government, and are not covered by the Australian Government Financial Claims Scheme or any equivalent scheme. We do not take into account your personal circumstances to determine whether the Services are right for you. You should therefore consider your personal circumstances and the financial risks associated with cryptocurrencies. Please see clause 15 and Schedule A for further information.

1. Definitions

Agreement means these Terms of Use and Privacy Policy.

AML/CFT Act means the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) of Australia.

AML Laws means applicable anti-money laundering and counter-terrorism financing laws and regulations of any jurisdiction relevant to the operation of PEXX including the AML/CFT Act and related regulations and rules.

Card means a payment card (physical or virtual) issued to you under Schedule C.

Compensation Framework means the framework set out in clause A.10 under which we may compensate you for certain losses.

Crypto Exchange means a cryptocurrency exchange that we have partnered with.

Custodied Assets means Supported Digital Assets that we hold for you under Schedule A.

Customer Ledger means the internal record we maintain of each customer's Digital Asset Balance and their corresponding beneficial entitlement to the Custodied Assets held in the Omnibus Wallet.

Digital Asset Balance means the quantity of Supported Digital Assets recorded on the Customer Ledger as being held by us for you at a given time.

Digital Token Service means the cryptocurrency trading services that enables you to sell supported cryptocurrencies to PEXX for supported fiat currency and facilitates the transfer of that fiat currency to a bank account nominated by you in an available jurisdiction.

Fee or Fees means the fees payable for your use of the Services.

Key Share means a cryptographic share of a private key generated and held under our multi-party computation arrangements described in clause A.7.

Omnibus Wallet means a blockchain wallet controlled by us in which Custodied Assets belonging to customers are held together on a pooled basis, separately from assets belonging to PEXX.

Partner Bank means a bank, authorised deposit-taking institution or electronic money institution with which fiat balances are held under Schedule D.

PEXX Account means your registered account on the Platform.

KYC means 'know your customer' identification verification checks conducted for compliance with AML Laws and Sanctions Laws.

Nominated 3P Bank Account means the bank account in an available jurisdiction that you nominate for us to make payment of the fiat currency we owe you for the cryptocurrency that you have sold to us using the Digital Token Service.

PEXX, we, us or our means PEXX Technology Pty Ltd (ABN 79 672 375 030).

Platform means the PEXX website (accessible at https://pexx.com) or the PEXX application through which you can access the Digital Token Service.

Sanctions Laws means any economic sanctions laws, regulations and embargos as imposed by the United Nations, Australia, Singapore, or any other jurisdiction relevant to the operations of PEXX.

Schedule means a schedule to these Terms of Use.

Services means the Digital Token Service and any other service we provide to you under these Terms of Use, including the services described in the Schedules. A reference to the Service is a reference to the relevant Service.

Supported Digital Assets means the cryptocurrencies we support from time to time as listed on the Platform.

Third Party Service Providers means third party service providers that provide technology or functionality used by PEXX to provide the Services.

Terms of Use means these terms and conditions between you and PEXX (including the Schedules) which govern your access to and use of the Services.

Transaction means your instruction that PEXX has accepted to buy supported cryptocurrency from you in exchange for supported fiat currency.‍

Yield Offer means an offer described in Schedule B under which we pay you a return on a Digital Asset Balance.

You or your means the person accessing or using the Services.

2. Digital Token Service

2.1 PEXX provides you with access to the Digital Token Service that enables you to sell supported cryptocurrencies to us for supported fiat currency, and facilitate the payment of the fiat currency to a Nominated 3P Bank Account.

2.2 A list of the fiat currencies and cryptocurrencies that PEXX currently supports in respect of its Digital Token Service can be found on our Platform or may be otherwise notified to you. It may not always be possible to give you advance notice of a change to the supported cryptocurrencies (for example if a cryptocurrency becomes illegal due to a sudden change in applicable laws and regulations or if a cryptocurrency suddenly changes its name, or in the way it functions).

2.3 Selling Cryptocurrency.

(a) You can sell cryptocurrencies in a real-time, immediate manner. If you "sell now", we will follow the following procedure: You tell us how much cryptocurrency you want to sell and we'll let you know the equivalent supported fiat currency you can purchase. If we accept your instruction to sell cryptocurrency, we will purchase the cryptocurrency from you at the exchange rate disclosed to you at the time you submit your instruction, and pay the fiat funds in your selected currency to your Nominated 3P Bank Account (each a Transaction). Where the relevant Service is available to you, you may instead elect to receive the proceeds as a fiat balance held with a Partner Bank under Schedule D. You cannot receive the proceeds from a sale in any other way.

(b) We may limit the amount of cryptocurrency we are willing to purchase from you. We will tell you the amount of any limit before you submit your instruction to us.

(c) Each Transaction is a one-off arrangement and does not mean that we will enter into other Transactions in the future. We may not accept your instruction to sell cryptocurrency. Our decision to enter into a Transaction will be made on the basis of our legitimate business interests. If we do not accept an instruction to enter into a Transaction, we will not be responsible for any losses you suffer as a result.

(d) Sometimes, we may pre-fund the payment of the proceeds of a Transaction into your nominated account before we actually receive those proceeds from the exchange. If we do, and the payment fails to arrive from the exchange or the Transaction does not otherwise proceed, you agree that we can reverse or put a hold on the payment we have pre-funded.

2.4 Exchange Rate.

The exchange rate for selling cryptocurrency is set by us. It is a variable exchange rate, which means it is constantly changing. You can see the prevailing current exchange rate on our Platform. Our exchange rate doesn't include our fees. The exchange rate may change between the time you told us you wanted to sell cryptocurrency and the time we are actually to buy it from you. This means that if you ask us to sell cryptocurrency, you may receive more or less fiat currency than you expected under a Transaction. We are not responsible if you suffer any losses as a result of trading in cryptocurrency.

2.5 Fees:

We charge you a Fee on each Transaction. We will show you this Fee before you initiate a Transaction as well as after a Transaction has been processed in the Transaction details.

2.6 Lawful use of Service.

(a) You represent and warrant to PEXX at all times that you will comply with legal and regulatory requirements, restrictions, and prohibitions applicable to your use of the Service.

(b) These legal and regulatory requirements, restrictions and prohibitions include any anti-money laundering, counter-terrorism financing, trade sanctions, foreign exchange controls or restrictions, or tax consequences applicable to your use of the Service.

2.7 Availability of Service.

The availability of the Digital Token Service in any specific jurisdiction depends on a number of factors, including whether the provision or receipt of the Service is lawful in that jurisdiction. In accordance with its legitimate business interest, PEXX has sole and absolute discretion in determining whether we make available the Service in any jurisdiction. If we determine that we will no longer offer the Service in your jurisdiction, we will notify you if this change.

2.8 Holding Supported Digital Assets.

Where the relevant Service is available to you, you may hold a Digital Asset Balance with us rather than selling immediately. If you do, we hold those Supported Digital Assets for you as Custodied Assets. Schedule A sets out how we hold them, how they are segregated, what happens to them if we become insolvent, and the circumstances in which we will compensate you for a loss.

3. Your access to the Service

3.1 When you register for access to the Digital Token Service:

(a) You will need to create log-in credentials by selecting a password and providing an e-mail address, along with any other registration information as required from time to time.

(b) You must not create log-in credentials that we, acting reasonably, deem offensive. Failure to comply constitutes a breach by you of this Agreement, which may result in immediate termination of your access to the Service.

(c) You must not provide, distribute or share, or enable the provision, distribution or sharing of, your log-in credentials with any third party.

(d) We may prescribe security procedures applicable to the use of the Service, which you must comply with.

(e) You must maintain the confidentiality of your log-in credentials. You must not at any time disclose this information to any other party.

(f) You must keep your contact details up to date so that you can receive alerts we may send to you. Failure to do so may result in adverse results like unauthorised access to your account and potential theft or money laundering.

(g) Except where caused by our negligence, fraud or misconduct, and subject to the Compensation Framework in clause A.10, we will not be responsible or liable for any loss caused or damage suffered by you that occurs as a consequence of any use of the Service under your registration (including unauthorised transactions) where you have not notified us that your access to the Service has been compromised. Where a loss arises from unauthorised access to your PEXX Account that was not caused or contributed to by you, clause A.10 applies and this clause 3.1(g) does not limit your rights under it. If you believe that the security of your information has been compromised, contact us immediately.

3.2 By registering for the Service, you represent and warrant that:

(a) if you are a natural person (i.e., an individual and their estate and personal representatives); that you are at least 18 years old and have the full right, power, and legal authority to enter into these Terms of Use;

(b) if you are registering to use the Service on behalf of a legal entity (e.g. an incorporated entity), you represent and warrant that the legal entity is duly organised and validly existing under the applicable laws of the jurisdiction of its organisation; that you are duly authorised by such legal entity to act on its behalf, and that the legal entity agrees to be bound by these Terms of Use;

(c) you will not authorise other persons to use your details to access the Service nor transfer or assign it to any other person; and

(d) you are not impersonating any other person, operating under an alias or otherwise concealing your identity.

We may refuse your registration for the Service or terminate your access to the Service if you fail to fulfil any one of the eligibility criteria above.

We may change the eligibility criteria for registering for the Service, in accordance with clause 12.

3.3 Depending on your country of residence, you acknowledge that you may not be able to use the Service.

3.4 PEXX is not obliged to accept all registrations for the Service and may accept or reject any registration for the Service.

3.5 To protect its legitimate interests, PEXX reserves the right to suspend a customer's access to the Service, reject an instruction to enter into a Transactions and cease offering the Service to a customer.

3.6 You acknowledge that the Service may be unavailable from time to time due to scheduled outages or due to factors beyond our control, such as your internet connection or third-party service providers.

3.7 You may terminate your use of the Service at any time by giving PEXX notice in writing at support@pexx.com.

4. Fees

4.1 The Fees payable for your use of the Services are displayed on the Platform and may change from time to time. Before you confirm an instruction we will show you the Fee that applies to it, the exchange rate that applies to it (where relevant), and the net amount you will receive. You will be prompted to make payment for the applicable Fees where they are triggered by your use of the Services (for example, as part of the confirmation of instructions in connection with a Transaction).

4.2 You agree to make payment for other duties payable by you in connection with your use of the Service (including in the case of bank transfers, any bank charges).

4.3 We may use payment gateway providers or payment processing agents to process your payment of Fees. If you wish to pay any amount with our payment gateway providers or payment processing agents, you will be redirected to its secured payment page. If you provide your credit card details, you authorise us, our payment gateway providers and/or our payment processing agents to charge your credit or debit card for the applicable Fee(s) (if any).

4.4 We may change the Fees payable in accordance with clause 12.

4.5 We do not charge a custody fee, safekeeping fee or account fee for holding a Digital Asset Balance for you. The Fees and costs that may apply to holding, receiving and withdrawing Custodied Assets are set out in clause A.12.

5. Privacy Policy

5.1 It is a continuing condition of your use of the Platform that you review the terms of our privacy policy as amended from time to time, available at https://pexx.com/privacy-policy ("Privacy Policy"), which set out details of our collection, use, disclosure and/or process of your personal data.

5.2 If in connection with your use of the Platform, you provide the personal data of any third parties, you warrant and represent that you have confirmed that the said third parties have also reviewed the terms of the Privacy Policy, and that they consent to the collection of their personal data by us and our related corporations and affiliates having regard to that Privacy Policy.

5.3 You warrant and represent to us that all personal data which is submitted to us by you through your use of the Platform is complete, accurate, true and correct.

5.4 The Platform may provide links to external sites whose data protection and privacy practices may differ from those set forth here. We are not responsible for the content and privacy practices of these other websites and you agree to review and abide by the data protection and privacy notices of those sites.

5.5 The Platform uses cookies. A cookie is a small text file which is placed on your device whenever you run or use the Platform. These cookies collect information about your use of the Platform. We use cookies and other technologies to facilitate your use of the Platform and to improve your experience of the Platform. You may change the settings on your device to block the use of cookies. However, if you do choose to block the cookies used on the Platform, you may not be able to use certain features and functions of the Platform.

6. Third Party Service Providers

6.1 PEXX has arrangements in place with Third Party Service Providers in order to provide the Digital Token Service.

6.2 PEXX relies in whole or in part, on the continued development and support of the technology and functionality provided by Third Party Service Providers. Access to the Digital Token Service may be made conditional upon you consenting and/or agreeing to, and meeting the terms and conditions of such Third-Party Service Providers and those terms shall govern your use of such services they provide. These may include but are not limited to Third Party Service Providers who assist us with our identity verification procedures.

6.3 No third party safeguarding provider. PEXX does not engage any third party custodian, sub-custodian or other safeguarding provider to hold Custodied Assets. We hold Custodied Assets ourselves, using key management infrastructure that we control, as described in clause A.7. Accordingly, there are no terms agreed with a third party safeguarding provider to disclose to you, and you have no exposure to the default of a third party safeguarding provider in respect of your Custodied Assets.

6.4 Our use of Third Party Service Providers for technology, identity verification, payment processing and similar functions does not transfer control of Custodied Assets to those providers. We remain responsible to you for the safekeeping of Custodied Assets in accordance with Schedule A.

6.5 Fiat balances held under Schedule D are held with a Partner Bank rather than by PEXX. Clause D.3 sets out the arrangements that apply to those balances and your exposure if a Partner Bank defaults.

7. Disclaimer of Warranties and Liability

This clause 7 is subject to the Compensation Framework in clause A.10. Nothing in this clause 7 excludes, restricts or modifies our obligation to compensate you for a Covered Loss under clause A.10.

You agree and acknowledge that we do not warrant that the Service will meet your requirements, that the operation of the Platform will be uninterrupted or error-free. No representation or warranty is provided that:

(a) the Service will be uninterrupted or error-free;

(b) the Service will at all times be available and/or accessible for your use;

(d) the Service being compatible or working with any third-party software, applications or third-party services.

8. Indemnity

8.1 You agree to indemnify and hold harmless PEXX for all costs, liability, loss or costs we may suffer or incur from your breach of these Terms of Use and any terms relating to your use of the Service. This indemnity does not extend to any costs, liability, loss or costs caused by our mistake, fraud, negligence or wilful misconduct or the same of our employees, officers, contractors or agents. This indemnity does not apply to any loss that is a Covered Loss under clause A.10.

8.2 This Clause 8 shall survive the termination or expiration of this Agreement (howsoever caused).

9. Electronic communications

You accept and agree that:

(a) any communications, agreements, notices and/or any other documents (together "Communications") relating to your use of the Service will be provided to you electronically by posting them on the Platform and emailing them to the email address you have provided to us. You consent to receiving all Communications from us electronically;

(b) you must provide us with a valid and accessible email address to which any Communications may be sent, and must ensure that email address and any other contact information is kept up to date. Any Communication sent to the email address you have provided to us will be treated as having been received by you. You can amend your contact information by updating the profile settings in your account.

10. Anti-Money Laundering and Counter-Terrorism Financing and Sanctions Laws

10.1 In order to use the Digital Token Service, your identity must first be verified. PEXX implements and maintains high standards of KYC processes and controls as part of our commitment to combating fraud and assisting in the prevention of money laundering and terrorist financing. PEXX utilises Third Party Service Providers to perform these checks.

10.2 To ensure we meet the requirements under AML Laws and Sanctions Laws:

(a) you are required to provide personal information so that we can verify your identity in accordance with our KYC processes. You must give all the information we reasonably require to comply with AML Laws and Sanctions Laws

(b) we are required to retain information collected as part of our KYC processes, including after you have ceased using our Service. Further information on the collection, use and retention of your personal information can be found in the PEXX Privacy Policy (see clause 5).

10.3 PEXX reserves the right to, at any time:

(a) restrict or suspend your access to the Service if we consider it necessary to carry out further KYC processes; or

(b) terminate your access to the Service if you provide, or we suspect you have provided, false information or refuse to provide information we require for our KYC processes.

10.4 You accept and agree that there may be delays in accessing the Service or in carrying out Transactions through your account while we undertake any KYC processes.

10.5 If we determine that executing a Transaction would be unlawful, or in any way contrary to our obligations under AML Laws and Sanctions Laws, we may suspend such a transfer for as long as we reasonably determine is required. You agree that when this occurs, you have no claims regarding the delayed transfer and agree to assist us with every request for information in this regard.

10.6 You acknowledge and agree that we are required to act in accordance with our obligations under the AML Laws and Sanctions Laws in providing the Service which includes our exercising discretions as we determine appropriate to protect our legitimate interests.

11. Restriction, suspension and termination

11.1 We reserve the right to restrict, suspend or terminate your access to the Service without advance notice where we reasonably suspect:

(a) your access to the Service is subject to an operational or other error, in which case we may be required to suspend your access to the Service until such time as the error is rectified;

(b) your access to the Service has been or is being used in relation to any unlawful or fraudulent activities or in breach of these Terms of Use;

(c) you or your access to the Service is or has been associated with, or poses a high risk of, money laundering, financing of terrorism, fraud, or any other financial crime;

(d) you are taking any action that we consider to be a circumvention of our controls, including but not limited to multiple registrations for the Service;

(e) we reasonably suspect your involvement in any attempt to gain unauthorised access to another person's log-in credentials;

(f) your access to the Service is or appears to be the subject of any legal, regulatory or government process and/or we, in our sole discretion, consider there to be a heightened risk of legal or regulatory non-compliance associated with your account;

(g) we are compelled to do so by a prima facie valid subpoena, court order, or other binding order of a government or regulatory authority; or

(h) we reasonably conclude that you, or any person or geography with whom you transact, are / is the subject of any restrictions under Sanctions Laws.

11.2 We otherwise may terminate or suspend your access to any PEXX Service, by providing written notice to you.

12. Variation of Terms

12.1 We may amend, vary or supplement the Terms of Use from time to time.

12.2 Where the amendment is not unfavourable to you, we will provide you with written notice no later than the day the amendment, variation or supplement is to take effect.

12.3 Where the amendment, variation or supplement is unfavourable to you, we will only amend vary or supplement the Terms of Use if we, acting reasonably, determine that that it reasonably necessary to:

(a) reflect changes to our operational costs, business operations, systems and processes or our arrangements with third parties;

(b) give effect to regulatory change, standards, recommendations, guidance or applicable laws;

(d) otherwise protect our legitimate interests.

We will provide you with at least 30 days' written notice of such amendment, variation or supplement. If you do not wish to be bound by any amendment, variation or supplement, you can cease using the Service and terminate this agreement by emailing support@pexx.com before the notice period ends.

13. General

13.1 Each of the terms and conditions in these Terms of Use are severable and distinct from one another and if at any time, any one or more of this documents and conditions or any part thereof is or becomes invalid, illegal or unenforceable, the validity, legality or enforceability of the remaining provisions will not thereby be affected or impaired in any way and will remain in force.

13.2 The rights and remedies provided in these Terms of Use are cumulative and not exclusive of any other right or remedies (whether provided by law or otherwise).

13.3 No failure on our part to exercise and no delay on our part in exercising any right or remedy under these Terms of Use will operate as a waiver of such right or remedy, nor will any single or partial exercise of any right or remedy preclude any other or further exercise of such right or remedy or the exercise of any other right of remedy. Any waiver by us of our rights or remedies in respect of any terms under these Terms of Use or any breach of these Terms of Use on your part must be in writing and may be given subject to such terms and conditions as we may deem fit and is effective only in the instance and for the purpose for which it is given.

13.4 You are solely responsible for determining and paying any income, sales or capital gains taxes to the appropriate tax authorities in connection with any of your activities on the Platform, and we are not responsible for collecting these from you, for making any payments on your behalf, or for providing any reports relating to tax.

13.5 A person who is not a party to this Agreement shall have no right to enforce or enjoy the benefit of any term of this Agreement. Notwithstanding any term of this Agreement, the consent of any person who is not a party to this Agreement is not required to rescind or vary this Agreement at any time.

13.6 The Schedules form part of these Terms of Use. A Schedule applies only to the Service to which it relates and only from the time you begin using that Service. If there is any inconsistency between the Master Terms and a Schedule, the Schedule prevails to the extent of the inconsistency, but only in respect of the Service to which that Schedule relates.

14. Governing Law

Your access and use of the Platform as well as this Agreement shall be governed by laws of New South Wales, Australia and you agree that the courts of New South Wales, Australia shall have exclusive jurisdiction over all disputes relating thereto.

15. Important Statements

PEXX is not a bank and does not hold an Australian Financial Services Licence (AFSL).

15.1 Risks associated with using the Service

(a) This section sets out some of the risks involved in connection with digital assets / cryptocurrency and using the Digital Token Services. However, this section does not constitute an exhaustive list of such risks and as such, you should carefully consider whether using our Service is suitable for you in light of your circumstances.

(b) Legal status

The legal status of digital assets / cryptocurrency (including cryptographic coins, stablecoins and tokens) remains uncertain in many countries and jurisdictions around the world. Digital assets and cryptocurrency may be legally prohibited in certain countries or jurisdictions or be subject to specific restrictions and limitations which you are solely responsible for complying with at your own risk and expense. We take no position as to the legal status of any digital asset / cryptocurrency.
It is your responsibility to undertake your own investigations and enquiries and satisfy yourself of the legal status of any digital asset / cryptocurrency (particularly in Australia). You acknowledge and agree that your involvement in digital assets / cryptocurrency through the Service is at your own risk.

Historically, the value of digital assets / cryptocurrency has been highly volatile and there is a risk that they could have little to no value in the future. The trading or holding of digital assets / cryptocurrency therefore involves significant risks and the losses can be substantial. It may be difficult to value digital assets / cryptocurrency accurately and reliably given the nature of their trading and difficulty in identifying their fundamentals. You should carefully consider and assess whether trading digital assets / cryptocurrency or using cryptocurrency-adjacent services is suitable for you depending upon your financial circumstances and tolerance to risk.
Due to the significant risks of trading digital assets / cryptocurrency as well as the impact of technology and the international market, PEXX cannot warrant or guarantee that any particular digital assets / cryptocurrencies will continue to be available as part of the Service. PEXX reserves the right to stop offering trades in relation to particular digital assets / cryptocurrency as part of the Service. We will notify you if we cease to support trading a particular digital asset / cryptocurrency.

(d) Cyber risks, delivery and custody

PEXX is not responsible or liable for any cryptocurrency or fiat currency sent to an incorrect account. It is important for you to take care when providing us with the bank details for the Nominated 3P Account. You should familiarise yourself with the security measures available when using a third-party wallet service or other device for storage. Always take a greater degree of care and precaution to secure your passwords when operating in a digital environment. You are strongly advised to double check that you have inserted the correct third-party wallet address (for cryptocurrencies) or Australian bank account details (for fiat currency) where required.
There could be market conditions, or other operational or technical difficulties which could result in the immediate halt of transactions either temporarily or permanently. Provided that PEXX has taken reasonable commercial and operational measures to prevent such events in technical systems controlled by us, PEXX is not and will not be responsible or liable for any loss or damage of any kind incurred by you as a result of cyber-attacks, operational or technical difficulties or suspensions of transactions. This paragraph does not apply to Custodied Assets. If Custodied Assets are lost as a result of a compromise of our systems or key management infrastructure, clause A.10 applies and we will compensate you for that loss on the terms of that clause.
If we hold Custodied Assets for you, additional risks apply, including the risks of pooling described in clause A.5, the insolvency risks described in clause A.6, and the risk described in clause A.9 that Custodied Assets are not held in cold storage. You should read Schedule A before you choose to hold a Digital Asset Balance with us.

(e) Further information is available on the Platform and in our Frequently Asked Questions (FAQs) at https://faq.pexx.com

16. Complaints

16.1 If you are not satisfied with our Service, you can register a complaint directly with PEXX's Complaints Officer in the first instance please email us at support@pexx.com

16.2 We will investigate your complaint and will aim to respond to you as soon as possible or within 30 days following receipt of the complaint.

17. Contact Us

If you have any queries, you may contact us by email at legal@pexx.com.

Schedule A — Custody and Wallet Services

This Schedule applies whenever we hold Supported Digital Assets for you. It forms part of these Terms of Use.

A.1 When this Schedule applies

(a) This Schedule applies from the time Supported Digital Assets are credited to your Digital Asset Balance, and continues to apply until those assets are withdrawn by you, sold to us, or otherwise transferred out of your Digital Asset Balance.

(b) This Schedule does not apply to a Transaction under clause 2.3 in which you sell cryptocurrency to us outright. In that case we buy the cryptocurrency from you and it becomes our property on settlement. We do not hold it for you and it is not a Custodied Asset.

A.2 What we do and do not do

(a) We hold Custodied Assets for you. We record your entitlement on the Customer Ledger and we control the keys that can move those assets on the relevant blockchain.

(b) We are not a bank, an authorised deposit-taking institution or a trustee company. We do not hold an Australian financial services licence. Your Digital Asset Balance is not a deposit and is not covered by the Australian Government Financial Claims Scheme or any equivalent depositor or investor protection scheme.

A.3 Legal nature of our holding

(a) We hold Custodied Assets on trust for you. PEXX acts as trustee. You remain the beneficial owner of your Custodied Assets at all times.

(b) We hold legal control of Custodied Assets solely in our capacity as trustee and solely for the purpose of providing the Services to you. We do not acquire beneficial ownership of your Custodied Assets at any time.

(c) Custodied Assets are not recorded as assets of PEXX in our accounts, and are not treated by us as available to meet our own obligations.

A.4 Segregation of your assets from ours

(a) Custodied Assets are held separately from assets belonging to PEXX. Customer assets are held in the Omnibus Wallet. PEXX holds its own assets, including any assets used for pre-funding under clause 2.3(d), in separate wallets that are distinct from the Omnibus Wallet.

(b) We reconcile the total holdings of the Omnibus Wallet against the aggregate of all customer entitlements recorded on the Customer Ledger on each business day. Where a discrepancy is identified, we investigate it and, where the discrepancy results in a shortfall, we make good the shortfall from our own assets.

(c) We do not use Custodied Assets for our own purposes. In particular, we do not lend, stake, pledge, charge, rehypothecate, borrow against or trade Custodied Assets, and we do not use Custodied Assets as collateral or to meet our own liquidity or settlement needs. Where we pre-fund a payment to you under clause 2.3(d), we do so using our own assets and not using Custodied Assets belonging to you or to any other customer.

(d) Any return paid to you under a Yield Offer is funded by PEXX from its own resources. Participating in a Yield Offer does not cause your Custodied Assets to be deployed, lent or invested. See Schedule B.

A.5 Pooling with other customers' assets, and the risks

(a) Custodied Assets are held on a pooled basis. Your Custodied Assets are held together with Supported Digital Assets belonging to other customers in the Omnibus Wallet. You are not allocated an individual blockchain address, and specific units of a Supported Digital Asset on-chain are not identified as being yours.

(b) Your entitlement is a beneficial interest in the pooled holdings of the relevant Supported Digital Asset, in the proportion recorded on the Customer Ledger.

Shortfall is shared. If for any reason there is a shortfall between the assets actually held in the Omnibus Wallet and the total entitlements recorded on the Customer Ledger, and we do not make good that shortfall, the shortfall would be borne by affected customers rateably in proportion to their entitlements, rather than by any individual customer alone. This means you could bear part of a loss that did not arise from anything to do with your own holdings or conduct.
Dependence on our records. Because your entitlement is not identifiable on-chain, it depends on the accuracy and integrity of the Customer Ledger. If the Customer Ledger were corrupted, lost or manipulated, establishing your entitlement could be more difficult, slower or more costly than if your assets were held at an individual address.
Attribution of operational error. An error affecting the Omnibus Wallet affects the pool as a whole, and identifying which customers were affected requires reconstruction from our records.
Delay on withdrawal. Because withdrawals are processed from a pooled wallet, an event affecting the Omnibus Wallet may delay or prevent withdrawals for all customers at the same time.

(d) Custodied Assets are not pooled with, or held in the same wallets as, assets belonging to PEXX. The pooling described in this clause A.5 is pooling with other customers only.

A.6 What happens if PEXX becomes insolvent

(a) Because Custodied Assets are held on trust under clause A.3, our intention and the intended effect of these Terms of Use is that Custodied Assets are not our property, do not form part of our assets available to our general creditors, and would not be available for distribution to our creditors if we became insolvent or entered external administration.

(b) In that event, the intended outcome is that Custodied Assets would be returned to customers, or transferred to a replacement provider, in accordance with each customer's entitlement as recorded on the Customer Ledger.

Delay. You would be very unlikely to have immediate access to your Custodied Assets. An external administrator would need to identify, verify and reconcile entitlements before any distribution. This may take a significant period, during which you could not withdraw, sell or use your Custodied Assets, and during which their market value may fall.
Costs. The costs of identifying, administering and distributing trust assets may in some circumstances be paid out of those assets, which would reduce the amount you receive.
Shortfall. If there were a shortfall in the pool at that time, we may not be able to make it good, and the shortfall would be shared rateably as described in clause A.5(c). To the extent of any shortfall you would rank as an unsecured creditor of PEXX for the balance, and unsecured creditors commonly recover little or nothing.
Legal uncertainty. The law governing the holding of digital assets on trust, and the treatment of pooled digital assets on insolvency, is still developing in Australia and has not been comprehensively settled by the courts. A court or external administrator could reach a different conclusion from the one described in this clause A.6, including as to whether a valid trust exists over pooled assets. If that occurred, you may rank as an unsecured creditor rather than as a beneficiary.
Fiat and card balances differ. This clause A.6 concerns Custodied Assets only. The position for fiat balances is set out in clause D.3, and the position on insolvency of a Partner Bank is different from the position on insolvency of PEXX.

A.7 How and where your assets are stored

(a) Self-custody. We store Custodied Assets ourselves. No third party custodian, sub-custodian or safeguarding provider holds your Custodied Assets, and no third party is able to move them independently of us. See clause 6.3.

(b) Key management. Access to the Omnibus Wallet is controlled using multi-party computation. The private keys that control Custodied Assets are never assembled in one place. Instead they exist only as separate Key Shares, and a transaction can only be signed when the required threshold of Key Shares participates in signing.

(c) Threshold signing. No single person and no single Key Share can move Custodied Assets. A transaction can only be signed with the participation of at least the applicable threshold of Key Shares, so that moving Custodied Assets always requires the agreement of more than one party.

(d) Distribution of Key Shares. Key Shares are held by separate parties and are distributed across separate geographic locations, so that the compromise of any single party, location or system does not permit Custodied Assets to be moved.

(e) Hardware protection. Key Shares are generated and held within hardware security modules or secure enclaves, so that Key Share material is not exposed to our general operating environment or to our personnel.

(f) We may change our key management arrangements from time to time provided the replacement arrangements provide a comparable or higher standard of protection. If we propose to appoint a third party custodian or safeguarding provider, we will notify you in accordance with clause 12 before doing so.

A.8 Reconciliation and records

(a) We maintain the Customer Ledger recording each customer's Digital Asset Balance.

(b) We reconcile the Customer Ledger against on-chain holdings each business day, as described in clause A.4(b).

A.9 Custodied Assets are not held in cold storage

This clause discloses a material feature of our custody arrangements. Please read it.

(a) Custodied Assets are not held in air-gapped cold storage. They are held in wallets that remain connected for signing purposes, using the multi-party computation arrangements described in clause A.7.

(b) Why. We hold assets in this way so that we can support withdrawals, sales, card authorisations and settlement on demand and in real time. Air-gapped cold storage would require manual intervention to move assets and would mean that withdrawals and payments could not be processed immediately, and in some cases could not be processed outside business hours.

(c) What this means for you. Assets that are available for online signing carry a higher risk of loss through compromise of systems or credentials than assets held in air-gapped cold storage. We do not hold insurance against this risk (see clause A.10(g)).

(d) Measures we take to mitigate this risk. The measures described in clause A.7 apply, namely: multi-party computation with threshold signing, so that no single person or Key Share can move assets; distribution of Key Shares across separate parties and separate geographic locations; and generation and storage of Key Shares within hardware security modules or secure enclaves.

(e) If Custodied Assets are lost as a result of a compromise of our systems or key management infrastructure, clause A.10 applies.

A.10 Compensation Framework

(a) What is covered. Subject to this clause A.10, we will compensate you for a loss of Custodied Assets or a loss from your PEXX Account (a Covered Loss) where the loss is caused by:

fraud, theft or misappropriation by our officers, employees, contractors or agents;
unauthorised access to, or compromise of, our systems, wallets or key management infrastructure, including by an external attacker;
our negligence in operating the Services, including sending Custodied Assets to an incorrect address as a result of our error, mis-recording an entitlement on the Customer Ledger, or failing to safeguard Key Shares in accordance with clause A.7; or
unauthorised access to your PEXX Account, where the unauthorised access was not caused or contributed to by you.

(b) What is not covered. We will not compensate you for a loss to the extent it arises from:

you disclosing your log-in credentials, one-time codes, recovery phrases or other security information to any person, or you acting on a fraudulent instruction, phishing message, impersonation or other social engineering;
your negligence, including your failure to secure your device, email account or telephone number, your failure to comply with the security procedures we prescribe under clause 3.1(d), or your failure to notify us promptly once you knew or ought reasonably to have known of a compromise;
a change in the market price or value of any digital asset or currency, including any loss of profit or opportunity, and including any price movement occurring after the event giving rise to the loss;
you providing an incorrect, outdated or invalid wallet address or bank account details, or you sending assets to an address that we do not support or on a network we do not support;
events outside our reasonable control, including failures, forks, reorganisations, congestion or exploits of a blockchain or smart contract protocol that we do not operate, failures of public infrastructure or telecommunications, natural disasters, war and civil disturbance; or
the lawful exercise of powers by a court, regulator, law enforcement body or other authority, including a freeze, forfeiture, seizure or order requiring us to withhold or transfer assets, and any action we take under clause 10 or clause 11.

(c) Notifying us. To claim under this clause A.10 you must notify us at support@pexx.com within 30 days after the date on which you first became aware, or ought reasonably to have become aware, of the event giving rise to the loss. You must give us the information we reasonably request to investigate the claim, and you must cooperate with our investigation, including with any report to law enforcement.

(d) Our investigation. We will investigate your claim and tell you our decision, with reasons, within 30 days after we receive your notification and all information we reasonably require. If we cannot complete our investigation within that period we will tell you why and tell you when we expect to decide.

(e) How we compensate you. Where we accept a claim, we will compensate you in kind, by crediting to your Digital Asset Balance the same quantity of the same Supported Digital Asset that was lost. We do not compensate for the change in the value of that asset between the date of the loss and the date of the credit. Where in-kind compensation is not reasonably practicable, we may compensate you in fiat currency using the market value of the relevant asset at the time we make the payment, and we will tell you the rate we used.

(f) Recoveries and double recovery. We are not required to compensate you for any part of a loss that you have already recovered from another source. If we compensate you and you later recover the same loss from another source, you must repay us to the extent of the double recovery. To the extent we compensate you, you assign to us your rights to recover that loss from any third party, and you agree to do what we reasonably request to give effect to that.

(g) How compensation is funded. We do not hold insurance covering loss of Custodied Assets. Compensation under this clause A.10 is paid from our own capital. Our ability to compensate you therefore depends on our financial position at the relevant time. This clause A.10 is a contractual commitment by PEXX only. It is not a guarantee, it is not backed by any insurer, and it is not backed by any government or industry compensation scheme.

(h) Relationship with other clauses. This clause A.10 prevails over clauses 3.1(g), 7, 8.1 and 15.1(d) to the extent of any inconsistency. Nothing in this clause A.10 limits any right you have under the Australian Consumer Law or any other law that cannot lawfully be excluded.

(i) If you are not satisfied with our decision on a claim, you may complain under clause 16.

A.11 Withdrawing your Custodied Assets

(a) You may at any time instruct us to withdraw all or part of your Digital Asset Balance to an external blockchain address that you control, on a network we support for that asset.

(b) You are responsible for the accuracy of the address and network you provide. Blockchain transfers are generally irreversible. If you provide an incorrect address or select an incorrect network, your assets may be permanently lost and we will not be able to recover them. This is an excluded loss under clause A.10(b).

(c) We will process withdrawal instructions promptly, except where we are required or permitted to delay or refuse under clause 10 or clause 11, or where we reasonably suspect fraud or unauthorised access.

(d) On termination of your access to the Services under clause 11 or clause 3.7, we will return your Custodied Assets to an address you nominate, subject to our obligations under AML Laws and Sanctions Laws.

A.12 Fees and costs for holding assets

(a) We do not charge a custody fee, safekeeping fee, account fee or inactivity fee for holding a Digital Asset Balance.

(b) We do not charge a fee to receive Supported Digital Assets into your Digital Asset Balance.

(c) Withdrawals are subject to the applicable blockchain network fee, and any withdrawal fee shown on the Platform. We will show you the total amount that will be deducted before you confirm a withdrawal.

(d) Fees applicable to selling Custodied Assets to us are dealt with in clauses 2.5 and 4.

Schedule B — Yield Offers

This Schedule applies if you participate in a Yield Offer. It forms part of these Terms of Use.

B.1 What a Yield Offer is

(a) From time to time we may offer to pay you a return on some or all of your Digital Asset Balance.

(b) The rate, the eligible assets, the eligible balances, any caps, the accrual and payment frequency, and the period of the offer are as published on the Platform at the relevant time.

B.2 Your assets are not deployed

(a) Participating in a Yield Offer does not change how your Custodied Assets are held. They continue to be held on trust for you under Schedule A, in the Omnibus Wallet, and clause A.4(c) continues to apply.

(b) We do not lend, stake, invest or otherwise deploy your Custodied Assets in order to generate the return. The return is funded by PEXX from its own resources as a promotional benefit.

(c) You do not transfer ownership of any asset to us in order to participate, and you are not lending anything to us. You may withdraw or sell your Digital Asset Balance at any time in accordance with clause A.11, subject to any published minimum holding condition for the offer.

B.3 Important limitations

(a) A Yield Offer is promotional and discretionary. We may change or withdraw a Yield Offer, including the rate, at any time in accordance with clause 12. Withdrawal of a Yield Offer does not affect a return that has already accrued to you.

(b) A Yield Offer is not a deposit, is not interest on a deposit, and is not a fixed or guaranteed return. PEXX is not a bank or an authorised deposit-taking institution. Amounts subject to a Yield Offer are not protected by the Australian Government Financial Claims Scheme or any equivalent scheme.

(c) A Yield Offer does not protect you against a fall in the market value of the underlying digital asset. You can still lose money.

(d) Returns are paid in kind in the same Supported Digital Asset, unless the offer says otherwise.

(e) You are responsible for the tax treatment of any return. See clause 13.4.

Schedule C — PEXX Card

This Schedule applies if you are issued a Card. It forms part of these Terms of Use.

C.1 Card issuer

(a) The Card is issued by a third party card issuer, and not by PEXX. We will tell you who the issuer is, and give you the issuer's terms and the applicable card scheme rules, before the Card is issued to you. Your use of the Card is also governed by those terms. Where the issuer's terms conflict with this Schedule in relation to the operation of the Card, the issuer's terms prevail.

(b) PEXX is responsible to you for the PEXX Account and for any Digital Asset Balance and fiat balance connected to the Card, in accordance with Schedule A and Schedule D.

C.2 How Card spending is funded

(a) Card transactions are funded from your fiat balance held under Schedule D. A Card transaction does not sell your Digital Asset Balance unless you have separately instructed us to do so.

(b) Where a Card transaction requires a currency conversion, the rate and any conversion fee are as disclosed on the Platform or in your transaction record.

(c) An authorisation may place a hold on your balance before the transaction settles. Held amounts are not available for withdrawal while the hold is in place.

C.3 Lost, stolen or unauthorised Card use

(a) You must notify us immediately at support@pexx.com if your Card is lost or stolen or you become aware of a transaction you did not authorise.

(b) Unauthorised Card transactions are dealt with under the issuer's terms and the applicable scheme chargeback rules. Where a loss arising from unauthorised Card use is not recovered under those rules and falls within clause A.10(a), clause A.10 applies.

(c) Nothing in this Schedule limits any right you have under the ePayments Code, to the extent that Code applies to the Card, or under any other law that cannot lawfully be excluded.

Schedule D — PEXX Account (fiat balances)

This Schedule applies if you hold a fiat balance through your PEXX Account. It forms part of these Terms of Use.

D.1 Who holds your money

(a) PEXX does not hold fiat balances. Fiat balances shown in your PEXX Account are held with a Partner Bank in an account that is segregated from PEXX's own funds.

(b) We will tell you which Partner Bank holds your fiat balance, the jurisdiction in which it is held, and the basis on which it is held, before you first fund your PEXX Account. That information is also available at any time on request at support@pexx.com.

D.2 PEXX is not a bank

(a) PEXX is not a bank or an authorised deposit-taking institution and does not take deposits. Describing the Services as banking-like does not make them a bank account with PEXX.

(b) Your relationship in respect of the fiat balance is with the Partner Bank, on the terms notified to you.

D.3 What happens on insolvency

(a) Because fiat balances are held with a Partner Bank and not by PEXX, they are not our property and would not be available to our general creditors if we became insolvent.

(b) You are exposed to the credit risk of the Partner Bank. If a Partner Bank fails, recovery of your fiat balance depends on the law of the Partner Bank's jurisdiction and on the terms on which the balance is held, and you could lose some or all of it.

(c) We do not represent that the Australian Government Financial Claims Scheme, or any equivalent deposit protection or investor compensation scheme in any jurisdiction, applies to your fiat balance. Whether any such scheme applies depends on the Partner Bank, the jurisdiction in which the balance is held, the basis on which it is held, and your own circumstances. You should not assume that any such protection applies. If you want to know the position for your balance, contact us at support@pexx.com.

(d) We may change Partner Banks. We will notify you in accordance with clause 12.

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TERMS & CONDITIONS