Risk Disclosures

All financial products carry risk. This page sets out the key risks involved in using Morse's products. Please read it carefully before using our services.

This disclosure covers your self-custodial wallet, provided by Avian Labs Inc. and Avian Labs Netherlands B.V. and Investments, tokenized stocks and ETFs, a service provided by Avian Labs Distributed, Inc. These are separate services offered by separate legal entities. Please read both sections that apply to you.

Stablecoin payments

You could lose the money you deposit

All crypto assets, including stablecoins, carry the risk of financial loss. You do not have the same protections as with traditional financial products. There is a risk of losing money or any crypto assets you purchase due to risks such as cyber-attacks, financial crime and firm failure.

You should not expect to be protected if something goes wrong

Funds held in or transacted through Morse are not covered by any investor compensation scheme, including that of the Dutch Central Bank (De Nederlandsche Bank, DNB), the UK Financial Services Compensation Scheme (FSCS), or any equivalent regulatory protection programme in any other country.

You may not be able to sell your stablecoins when you want to

Operational failings such as technology outages, cyber-attacks could cause unwanted delay, and you may be unable to process your transaction at the time you want.

Don't put all your eggs in one basket

Morse is a transfer product and not designed to hold large amounts of funds. It is not recommended putting all your money into the app.

Irreversibility

All blockchain transactions are final and irreversible once confirmed. If you send tokens to an incorrect wallet address, they cannot be recovered by Morse or by you. Always verify wallet addresses carefully before confirming a transaction.

The risks of different crypto assets

Not all crypto assets carry the same risks. Morse operates in stablecoin only.

What is a stablecoin?

It is essentially a cryptocurrency designed to have a relatively stable price, typically through being pegged to a commodity or currency or having its supply regulated by an algorithm.

Stablecoins may use a range of different ways to maintain stability, each with their own risks.

How do the exchange rates work?

All exchange rates are set in real-time at the time of transaction. Exchange rates can fluctuate from moment to moment. We use the real market rate as provided by currencyapi.com and do not apply a markup or spread.

All transactions with Morse are transferred in digital currency.

Solana is known for its speed and scalability, however, Solana has experienced outages and network congestion issues in the past.

Morse monitors the Solana Network and will provide you with an in-app notification if we detect a delay in transactions or disruptions to the Solana network. You can also check out the Solana Status page here.

Information Security

Avian Labs Inc. and its group entities have received the ISO 27001 certification on 30 July 2024 and have been recertified successfully in 2025.

This means that an independent organization has verified our internal systems meet internationally recognized standards for quality and consistency.

Investments

Your capital is at risk

Unlike a savings account or stablecoin payment service, the value of tokenized stocks and ETFs moves with financial markets. It can fall substantially in a short period of time. You could lose some or all of the money you invest. You should never invest funds you cannot afford to lose.

No guaranteed return

There is no fixed interest rate, yield, or guaranteed return of any kind. Returns, if any, come from price appreciation of the underlying assets and reinvested dividends (net of applicable withholding taxes). Both can go up or down, and your investment could generate no return at all.

Market volatility

Stock and ETF markets can be highly volatile. Prices can fall sharply due to macroeconomic events, geopolitical developments, corporate news, or broad market sentiment. Past performance of any underlying asset is not a reliable indicator of future performance.

Dividends are reinvested, not paid as cash

When an underlying stock or ETF pays a dividend, the token issuer reinvests the equivalent value into the underlying asset rather than distributing it as cash. The economic value of reinvested dividends is reflected in your token value or balance over time. Morse and Avian Labs Distributed, Inc. have no control over this process.

Avian Labs Distributed, Inc. is not regulated

Investments is operated by Avian Labs Distributed, Inc., a Delaware corporation. It is not a bank, broker-dealer, investment adviser, or licensed financial service provider in any jurisdiction. As a result, some of the standard protections associated with regulated financial services — such as suitability assessments, conduct rules, and formal complaints schemes — do not form part of this product.

Your funds are not insured

Your funds are not covered by any government-backed deposit guarantee scheme, investor compensation fund, or private insurance arrangement. Avian Labs Distributed, Inc. does not insure your assets. The token issuers operating on the DEX do not insure your assets. If the product fails or your funds are lost, there is no compensation available.

Tokenized assets are not registered securities

The tokenized stocks and ETFs available through Morse are not registered investment products under EU, UK, or US securities law in the way that traditional brokerage-held shares are. Regulation of tokenized assets is evolving and differs by jurisdiction. You should ensure you understand the regulatory status of these instruments in your own country before investing.

You are trading on a secondary market

When you buy or sell tokenized assets through Morse, you are transacting on a decentralised exchange (DEX) — a secondary market operated by independent smart contracts on the blockchain. Avian Labs Distributed, Inc. is not a party to those transactions. It provides the technology interface through which your wallet connects to the DEX, but it does not act as a counterparty, broker, or intermediary in your trades.

Prices are set by market supply and demand

Unlike a primary market product where an issuer mints or redeems tokens at a fixed net asset value, secondary market prices are determined by the supply and demand of buyers and sellers on the DEX. The price you pay or receive may differ from the underlying asset's net asset value or the price you see at the time you place an order. This difference is sometimes referred to as a premium or discount.

Slippage

On a DEX, the execution price of a trade may differ from the quoted price due to slippage — the change in price that occurs between when you initiate a trade and when it is confirmed on the blockchain. Large trades, low liquidity pools, or periods of network congestion can cause significant slippage.

Smart contract risk

Tokenized assets and the decentralised exchange (DEX) operate through blockchain-based smart contracts. Smart contracts may contain vulnerabilities or bugs. Even where smart contracts have been audited, no audit can guarantee the complete absence of exploits. A smart contract failure — in the token contracts, the DEX, or any bridging or routing infrastructure — could result in partial or total loss of funds.

Liquidity risk

Tokenized assets are traded on a decentralised exchange. Liquidity on a DEX depends on available liquidity pools and market participants. During periods of low market activity, high volatility, or technical disruption to the DEX, you may not be able to buy or sell at your desired price, or at all. You may not always be able to exit your position when you want to, and the price you receive may differ materially from the value you expect.

Irreversibility

All blockchain transactions are final and irreversible once confirmed. If you send tokens to an incorrect wallet address, they cannot be recovered by Morse or by you. Always verify wallet addresses carefully before confirming a transaction.

Regulatory risk

The legal and regulatory framework governing tokenized securities is evolving rapidly and varies significantly across jurisdictions. A change in regulation could affect the availability, legality, value, or your ability to access or redeem tokenized assets in your country. We cannot predict how regulation will develop.

Tax obligations are your responsibility

You are solely responsible for assessing and paying any taxes arising from your use of Investments. This includes taxes on capital gains, reinvested dividends, and any other income arising from your holdings. The reinvestment of dividends may itself constitute a taxable event in some jurisdictions. Morse and Avian Labs Distributed, Inc. do not provide tax advice. You should consult a qualified tax adviser in your country before investing.

This is not financial advice

Nothing on this page or in our apps constitutes financial advice, investment advice, or a personal recommendation. You are making your own decisions. If you are unsure whether any of our products is right for you, we encourage you to seek independent advice from a qualified financial adviser.

We may update these disclosures

This page may be updated from time to time to reflect changes in our products, regulation, or risk environment. The date of the most recent update is shown at the top of this page. We encourage you to review these disclosures periodically.

Contact us

If you have questions about the risks described in this document, please contact us at legal@avianlabs.net.