Risk disclosure

Summary in plain language

The warning above is the model wording from VARA's guidance for Dubai. VARA's regulations on the marketing of virtual assets, in force since 1 October 2024, require a prominent disclaimer of this kind.

Risks of buying, holding and selling virtual assets

These risks apply to buying USDT in the UAE and to any other virtual asset you buy, hold or sell through Fasset FZE.

Price volatility

Prices move around the clock and can change by a large amount within minutes. Past prices say nothing reliable about future prices.

Liquidity

You may not be able to sell when you want, or only at a worse price than the one on screen. In stressed markets quotes can widen or stop.

Custody and technology

Fasset FZE says it protects client assets with Fireblocks technology, using multi-party computation and hardware isolation. Technology lowers some risks and removes none: software can fail, keys can be compromised and networks can stall. The risk page of fasset.com says assets “may not be covered by any sort of insurance”. A transfer sent to the wrong address or network may be lost for good. Read how assets and accounts are protected.

Counterparty

You rely on the company you deal with and on the partners it uses to trade, hold and move assets. If one of them fails, your assets can be delayed or lost. How client assets are treated if a Fasset company becomes insolvent is to be confirmed.

Stablecoin risks

People ask whether USDT is safe. It carries risk like any virtual asset, of a different kind. A stablecoin aims to hold a fixed value against a currency, and that aim can fail: the price can slip below the peg and stay there. A stablecoin is a claim on its issuer, so its value depends on the issuer's reserves and on the issuer honouring redemptions. Fasset does not issue USDT and does not control its reserves.

Card and payment risks

The Fasset Card is a prepaid virtual Visa card provided by Fasset Labuan Limited. You top it up in USDT and spend in USD, and you can spend only what you have loaded. A merchant or the card network can decline a payment. Refunds are slow: the company says they take “usually 10-30 business days”, depending on the merchant and the network. Fees can change: the card page says the per-transaction fee is free “in the promo phase”.

USD account risks

The USD account is not a bank account. Its terms say that the contract is with Fasset Labuan Limited, that a third-party provider powers the service, and that the service is not part of the regulated or licensed activities of Fasset Labuan Limited. Payments can be delayed, held or returned while compliance checks run, and the service depends on that provider continuing to offer it. No deposit guarantee scheme covers the balance.

Tokenised assets and investing

fasset.com also advertises tokenised gold and silver and fractional access to company shares. What you hold may be a token or a contractual claim and not the asset itself, so your position depends on the issuer, the custodian and the legal terms. The price of the token can differ from the price of the asset behind it, and there may be no buyer when you want to sell. Returns are not guaranteed. Which Fasset company offers each product, what exactly you own and who holds the underlying asset are to be confirmed.

A Shariah screening label is an opinion on whether an asset is permissible. It says nothing about how risky the asset is.

Not advice

This page describes general risks. Fasset FZE also publishes a risk warning notice for its clients as a document on fasset.com; that notice and your agreement are the binding texts.

Next, check the licences and regulatory disclosures, the steps for making a complaint and the UAE crypto rules explained, or browse the full list of Fasset Learn guides.