Last Updated: March 2026
This Risk Disclosure Statement is issued by CRYPEXCH TECHNOLOGIES PRIVATE LIMITED, the company that owns and operates Sikkaa Exchange. It is intended to ensure that every person who opens or considers opening an account on the Platform understands the nature, scope, and severity of the risks involved in transacting in Virtual Digital Assets (VDAs).
This Disclosure applies to all activities conducted through Sikkaa Exchange, including depositing INR, converting INR into USDT or other VDAs, executing buy or sell orders, transferring digital assets to external wallets, withdrawing INR to a bank account, and any other activity involving your account or the Platform.
This Disclosure forms part of the Terms of Service and should be read together with the Privacy Policy. By creating an account, making a deposit, or executing any transaction, you confirm that you have read, understood, and accepted the risks described here.
Nothing in this Disclosure constitutes financial advice, investment advice, tax advice, or legal advice. Sikkaa Exchange is a technology platform and not your financial advisor, investment manager, portfolio manager, or tax consultant.
Trading, holding, converting, or otherwise dealing in Virtual Digital Assets — including USDT and any other cryptocurrency available through the Sikkaa Exchange platform — involves substantial risk of financial loss. The value of a digital asset can fall to zero, and you may lose the entirety of the capital you invest.
There is no guarantee of profit, no guarantee against loss, and no financial compensation scheme applicable to losses incurred on this Platform. You should seek independent financial and tax advice before using the Platform.
Digital asset markets are highly volatile and operate without circuit breakers, daily price movement limits, or exchange-mandated trading halts. Prices can move sharply in either direction at any time.
Digital assets may lose most or all of their value due to project failure, fraud, regulatory action, market manipulation, or other unpredictable events. Past performance does not provide any assurance of future value.
Markets operate 24/7/365, so significant price movements can occur while you are asleep or otherwise unable to monitor the Platform.
USDT is designed to track the US dollar, but its peg is not guaranteed by any government, central bank, or regulatory authority. If the peg fails materially, USDT balances on the Platform may also lose value.
Liquidity risk refers to the risk that you may be unable to sell or convert your digital assets at or near the current market price, or may be unable to withdraw funds within the timeframe you expect.
The Platform uses a fixed INR-to-USDT spread model. Deposits are converted at a fixed rate of INR 98.00 per USDT, and withdrawals are converted at a fixed rate of INR 90.00 per USDT. This spread is part of the Platform’s business model.
We maintain an 8% USDT reserve buffer to manage unusual withdrawal demand. However, extreme market conditions, regulatory action, banking failures, or sudden withdrawal surges may lead to temporary withdrawal suspension or limits.
INR withdrawals are processed through banking infrastructure and may be delayed by holidays, outages, or partner-side issues. Do not deposit funds that you may need for immediate access.
Blockchain transactions are irreversible. If you send assets to the wrong wallet address or choose the wrong network, those assets may be permanently lost.
Underlying networks such as Ethereum, Tron, or BNB Chain may experience congestion, delays, forks, outages, or security incidents that affect transaction processing and fees.
The Platform may also become unavailable due to maintenance, technical failures, software bugs, or issues with third-party providers. During downtime, you may be unable to trade, deposit, or withdraw.
Trade execution depends on an API connection to KuCoin, and any disruption to that connection may affect the availability of trading services.
The regulatory environment for digital assets in India and globally is evolving rapidly. Regulatory changes may affect the value, usability, and availability of digital assets and the continued operation of the Platform.
Digital assets do not have legal tender status in India. Government authorities may impose restrictions, tax changes, bans, or other measures with limited notice.
Sikkaa Exchange is subject to anti-money laundering and reporting obligations. Regulatory actions against the Platform, its partners, or related infrastructure could affect your ability to trade or withdraw funds.
You are solely responsible for understanding and complying with the laws applicable to your digital asset activity, including tax obligations and reporting requirements.
Counterparty risk is the risk that a party relied upon for service delivery fails to perform because of insolvency, regulatory action, technical failure, or other reasons.
KuCoin is the Platform’s principal trading infrastructure partner. A failure, freeze, or shutdown involving KuCoin could affect the digital assets held in sub-accounts under the Platform’s master account.
Tether Limited is another critical counterparty. If USDT loses its peg or faces operational problems, the INR value of USDT balances may be adversely affected.
The Platform’s banking partner is also a counterparty risk. Banking outages, license issues, or regulatory action may delay or disrupt INR deposits and withdrawals.
Funds on Sikkaa Exchange are not insured by DICGC, SEBI, or any other government-backed protection scheme.
The digital asset industry is a major target for cybercrime because blockchain transactions are irreversible and assets are highly liquid.
Account compromise may occur through phishing, malware, credential theft, social engineering, or SIM swapping. If an attacker gains access to your account, funds may be permanently lost.
Sikkaa Exchange will never ask for your password, OTP, or 2FA code through unsolicited messages. You should report suspicious communication immediately.
The Platform uses security controls, 2FA, monitoring, and penetration testing, but absolute security cannot be guaranteed in any online environment.
Operational risk includes losses arising from internal process failures, system errors, personnel mistakes, and failures of external service providers.
The Platform displays an indicative market rate of INR 94.00 for informational purposes only. Actual transactions are executed at the fixed deposit rate of INR 98.00 per USDT and the fixed withdrawal rate of INR 90.00 per USDT.
Errors in withdrawal details such as bank account number, IFSC, or UPI ID may result in misdirected transfers. Recovery is not guaranteed.
Deposit crediting may be delayed due to payment detection issues, which may expose you to unfavorable price movement while the transfer is being processed.
The tax treatment of Virtual Digital Assets in India is governed by the Finance Act, 2022. Gains from VDA transfers are taxable at a flat rate of 30%, plus applicable cess.
Losses from VDA transfers cannot be set off against other income or carried forward to future years. TDS at 1% under Section 194S may apply to VDA transfers and will be reported through applicable tax records.
GST may apply to the Platform’s service fees. You remain responsible for filing your income tax return and disclosing VDA income in Schedule VDA where required.
Failure to comply with tax obligations may result in interest, penalties, or prosecution.
The Platform uses a fixed spread model for INR-to-USDT and USDT-to-INR conversions. The deposit rate is INR 98.00 per USDT and the withdrawal rate is INR 90.00 per USDT.
The display rate of INR 94.00 is indicative only and is not the execution rate for any transaction. The spread between deposit and withdrawal rates is part of the disclosed business model.
Fixed rates may be changed from time to time, and notice will be provided before any revised rates take effect for new transactions.
Sikkaa Exchange operates as a broker, not as a direct exchange. Your USDT balance represents a claim against the Platform, and actual positions are held in sub-accounts under the master account arrangement.
You do not have a direct contractual relationship with KuCoin. If the broker arrangement is affected, your ability to access or realize value from balances may also be affected.
As an early-stage technology company, Sikkaa Exchange faces operational, regulatory, and financial risks that may be greater than those of a large established exchange.
Digital asset platforms are not covered by bank-style deposit insurance or securities investor protection mechanisms. Funds on Sikkaa Exchange are not protected by DICGC, SEBI, or RBI consumer protection frameworks that apply to banks and regulated financial institutions.
Once a trade is executed or a blockchain transfer is confirmed, there is no cooling-off period, cancellation right, or reversal right for market losses or user mistakes.
Any rights you may have under consumer protection laws are limited and do not cover ordinary trading losses or the inherent risks of digital assets.
The following persons are prohibited from using the Platform: minors under 18; United States persons and US customers; residents or nationals of comprehensively sanctioned jurisdictions; persons on sanctions lists; and any person without a valid Indian PAN card.
Creating an account in breach of these restrictions may constitute a false representation and may expose the user to legal liability.
By creating an account, depositing funds, or executing transactions on Sikkaa Exchange, you acknowledge that you have read and understood this Disclosure, that you accept the risks of substantial or total loss, and that you are using only funds you can afford to lose.
You also acknowledge the fixed deposit and withdrawal rates, understand that blockchain transactions are irreversible, accept that your funds are uninsured, and understand that the Platform may be required to make regulatory disclosures about your account.
This Risk Disclosure Statement was last revised in March 2026 and constitutes version 1.0. Material revisions will be communicated to registered account holders before they take effect.
Legal Entity: CRYPEXCH TECHNOLOGIES PRIVATE LIMITED (Sikkaa Exchange)
CIN: U63999PN2025PTC241988
Registered Office: S. No. 14/10, Sai Park, Shop No. 02, Haveli, Nanded, Pune 411041, Maharashtra, India
Email: support@sikkaaexchange.com
Governing Law: Republic of India — Exclusive jurisdiction: Courts at Pune, Maharashtra.