Risk Disclaimer

01Loss of funds Critical

BlockPay can lose funds in many ways, alone or together. Among them: bugs in the smart contract, the SDK or the facilitator; mistakes you make; leaked or lost keys; attacks on any part of the system; failures of the Sui network; and actions by stablecoin issuers. The sections below describe each one. The list is not complete. New and unforeseen risks can appear at any time.

BlockPay does not guarantee that any payment will be completed, settled, redeemed or refunded, and does not compensate you for any loss.

02Not a bank or financial institution

• BlockPay is not a bank, payment processor, money transmitter, exchange or licensed financial institution, and is not affiliated with or endorsed by any card network or regulated payment system.
• BlockPay does not provide fiat services, currency exchange, custody or regulated money transmission.
• Funds are not covered by deposit insurance, investor compensation or any similar protection.
• BlockPay is non-custodial: payments move on-chain from payers to recipients, and BlockPay cannot move funds that a payer did not authorize. This also means BlockPay cannot recover, freeze, reverse or refund your funds on your behalf.

03Smart contract risk Critical

• The blockpay::channel Move contract, which holds payer deposits for payment channels, has not been audited. A bug could let funds be stolen, paid to the wrong party, or locked in the contract forever.
• An audit, once published, reduces risk but does not remove it. Audited contracts have been exploited.
• The contract is live on Sui mainnet. Until the audit, the mainnet package can still be upgraded: its upgrade capability is held in a BlockPay cold wallet. An upgrade can add code that acts on existing channels and the deposits in them, so until the package is made immutable you are also trusting the holder of that wallet.
• After the audit the contract is intended to be made immutable. Immutable code cannot be patched: if a flaw is found, funds already in the contract may not be recoverable, and a fix requires a new contract.
• Testnet deployments may be upgraded, replaced or abandoned without notice.

04Irreversible transactions Critical

A transaction finalized on Sui cannot be undone. Funds are lost permanently if you, your software or your agent:

• send to a wrong, mistyped or unowned address;
• send on the wrong network, or send the wrong asset;
• misconfigure a price, a payTo address or a decimals value, for example charging or paying 1,000,000× the intended amount;
• sign a transaction or voucher you did not fully understand.

BlockPay will not refund mistaken payments. Any refund is solely at the discretion of the recipient.

05Private keys and wallets Critical

• Whoever holds a private key controls its funds. If your key is lost, your funds are gone. If it is leaked or stolen, the thief can take your funds. BlockPay never holds your keys and cannot restore them.
• Keys stored in servers, environment variables, CI systems, agent runtimes or browser extensions can be extracted by malware, misconfiguration or compromised dependencies.
• Each payment channel uses a separate signing key. Anyone who obtains it can sign vouchers that pay the channel's recipient up to the full deposit.
• A compromised wallet registered to your merchant account can be used to sign in to the dashboard, create API keys and change your receiving addresses.

06Autonomous AI agents High

BlockPay lets software and AI agents pay without a human approving each payment. This is a distinct and serious risk:

• An agent can spend its entire balance quickly through loops, retries, bugs or bad reasoning.
• An agent can be manipulated by prompt injection or malicious content into paying an attacker or overpaying for a resource.
• Spending caps, budgets and allowlists only protect you if you configure them correctly. Missing or wrong limits mean no protection.
• You are fully responsible for every payment your agents make. Fund agent wallets only with what you are willing to lose.

07Payment channels High

If you pay through a channel

• Your deposit is locked in the contract until the channel is closed. To exit on your own you must request a close and wait for the withdraw delay, which can be anywhere from 15 minutes to 30 days.
• During that delay the recipient can still redeem any voucher you signed.
• If you lose the channel's keys or your wallet, you may be unable to withdraw the remaining deposit.

If you receive through a channel

• A voucher accepted by the facilitator is a promise of payment, not a payment. You are paid only when the voucher is redeemed on-chain. Your dashboard shows such payments as committed until then.
• Unredeemed value can be lost, even though you already delivered the resource. This can happen if the facilitator is offline, misses the redemption window, loses its database or has a bug, or if the payer exits the channel before redemption.
• You can redeem the latest voucher yourself from the dashboard. Doing so promptly is your responsibility.

08Hosted facilitator and dashboard High

• The hosted service may be unavailable, slow, suspended or discontinued at any time, with or without notice. During an outage your endpoints cannot accept payments.
• Verification bugs could cause a payment to be accepted that never settles, so you deliver a resource without being paid, or cause valid payments to be rejected.
• The facilitator runs a hot wallet to sponsor gas. If that wallet runs out of funds or is compromised, sponsored payments stop working.
• Dashboard figures, payment records, exports, webhooks and analytics may be delayed, incomplete or wrong. The Sui blockchain is the only source of truth. Do not rely on BlockPay records alone for accounting, tax or reconciliation.
• The service records payment metadata such as addresses, amounts and resource URLs. Do not put secrets or personal data in URLs or descriptions.
• You can run the open-source facilitator yourself instead, and you then carry its operational risks.

09Prepaid credit and fees Medium

• Prepaid credit is an internal service balance used to pay platform fees. It is not a deposit, not a stored-value account, not insured, earns no interest and has no value outside the BlockPay service.
• Credit is applied only when the top-up transaction was sent from one of your registered addresses, in a supported stablecoin, to the correct treasury address. Funds sent any other way may not be credited and may not be returned.
• Unused credit may not be refundable. If the service is discontinued or your account is terminated, remaining credit may be lost.
• When credit runs out, new payments to your endpoints are refused until you top up.

10Stablecoins and digital assets High

• Stablecoins such as USDC can lose their peg and trade below their intended value, temporarily or permanently.
• Issuers can freeze or block addresses through on-chain deny lists. Frozen funds, including funds held in a payment channel, may become unusable. BlockPay does not and cannot bypass these controls.
• Issuers, custodians or the assets themselves may fail, be restricted by regulators or stop being supported.
• SUI, used for gas, is volatile and can lose most or all of its value.

11Sui network risk Medium

• The Sui network can suffer outages, congestion, halts, consensus failures, bugs or attacks that delay, fail or alter transactions.
• Protocol upgrades may change how transactions, gas or objects behave and may break BlockPay without warning.
• RPC and full-node providers can be rate-limited, unavailable or return incorrect data.

12Third-party software and services

• BlockPay depends on wallets, RPC providers, open-source packages, hosting providers and the x402 specification, none of which BlockPay controls.
• A compromised dependency or package registry could inject malicious code into your build.
• x402 is an evolving standard. Changes to it may require breaking changes to BlockPay.
• Links to third-party sites and services are provided for convenience only. BlockPay is not responsible for them.

13Regulatory, legal and tax risk Medium

• Laws on digital assets, stablecoins, payments and AI-initiated transactions differ by country and change frequently. A change may restrict or prohibit your use of BlockPay, or force BlockPay to limit or end the service in your jurisdiction.
• BlockPay performs no KYC or AML checks by default. If your activity requires them, you must implement them.
• You are solely responsible for determining and paying any taxes on payments you send or receive.
• You are responsible for making sure the resources you sell, and the parties you transact with, are lawful and not subject to sanctions.

14Testnet and pre-release software

• Testnet tokens have no value. Testnet networks and deployments may be reset at any time, erasing all state.
• Behavior on testnet does not guarantee the same behavior on mainnet.
• Never send mainnet funds to an address or contract that is published only for testnet.
• BlockPay is pre-1.0 software. Interfaces, fees and features may change without backward compatibility.

15No advice, no warranty

Nothing on this website, in the documentation or in the software is financial, investment, legal, tax or accounting advice. Consult your own qualified advisers.

BlockPay is provided "as is" and "as available", without warranties of any kind. To the maximum extent permitted by law, BlockPay and its contributors are not liable for any loss of funds, revenue, data or profits arising from your use of it. See the Terms of Use for the full disclaimer of warranties and limitation of liability.

16Acceptance of risk