Legal Documentation | product-terms

Arbitrage

Last updated: 2025-02-10

General

These Product Terms for the Arbitrage Service shall be supplemental to and is read together with the Terms of Service and Additional Documents. The Product Terms, Terms of Service and Additional Documents constitute a legally binding agreement between you and FiveWest.
This version of the Product Terms for the Arbitrage Service shall replace and supersede any previous agreements between us with respect to the Arbitrage Service that may have been accepted, or otherwise made available on, the Site or Portal. By utilising the Arbitrage Service, you agree that you have read, understood and accepted the Product Terms and agree to be bound and act in accordance with them.
FiveWest may amend these Terms from time to time without providing any prior notice. Therefore, it is your responsibility to ensure that you regularly check the Site or Portal to determine if the Terms have been updated.
FiveWest will do their best to notify you of any changes to the Terms that will materially affect your rights and obligations, however we cannot provide such guarantee.
The continued use of the Arbitrage Service after any amendment to the Terms constitutes your acceptance of such Terms as modified by such amendment. If you do not accept the Terms or any amendment thereof, you must immediately stop using the Arbitrage Service and notify FiveWest accordingly.

The Service

The Arbitrage Service is a facilitation service where crypto assets and/or stablecoins are purchased and sold in order to obtain a profit from the price differences between international and local exchanges.
For the duration of these Terms and subject to the conclusion of the Arbitrage Mandate and Declaration (Discretionary Mandate), you are appointing and authorising FiveWest to act as your agent and intermediary to provide you with the Arbitrage Service and to:

instruct an authorised third party to open up a call account in your name with the designated banking partner;
instruct the authorised party to book out and release payments on your behalf;
trade your funds on cryptocurrency exchanges on your behalf.

Any third parties that are utilised in order to provide you with the Arbitrage Service will be disclosed to you and FiveWest reserves the right to reasonably change the third parties at any time.
In order to create a seamless Arbitrage Service, FiveWest will automatically perform the trades on your behalf and your initial capital and profit will be returned to your call account referred to in paragraph 2.2.1 upon completion of the Arbitrage loop. No intervention is required by you due to the appointment of FiveWest as your agent and intermediary.
You will be only sent out to commence the Arbitrage loop when the premium will allow you to generate a net profit percentage. You are entitled to set limitations or conditions, however these must be communicated in writing to FiveWest.
Fivewest shall utilise regulated third parties in order to provide you with the Arbitrage Service such as financial service providers, exchanges and regulated banks. These third parties shall be responsible for, including but not limited to, opening a bank account in your name, book out and release the trade and any other aspect in order for the Arbitrage Service to be provided to you seamlessly. You may be required to conclude additional documents with these third parties. You consent to Fivewest sharing your Personal Information with third party service providers in accordance with its Privacy Notice only when it is necessary and required in order to give effect to the function. The third party's ability to use your Personal Information is specifically limited to the service being provided.

Profit and Fees

For avoidance of doubt, the profits and losses (if any) realised by you pursuant to the Product Terms and under the applicable Mandate and Declaration (Discretionary Mandate), accrue to you and not to FiveWest or any other third party.
FiveWest does not take a percentage of your profit.
You will be charged a Swift Fee of R500.00, which is subject to change. In addition, you will be charged a withdrawal fee in accordance with the Terms of Service.

Taxes

You are solely responsible for determining whether, and to what extent, any taxes apply to any transactions you carry out through your FiveWest Account and the Arbitrage Service, and for collecting, reporting and remitting the correct amounts of tax to the appropriate authorities.

Foreign Investment Allowance and Single Discretionary Allowance (Approval for International Transfer)

In terms of the Currency and Exchanges Manual for Authorised Dealers, every single year, each South African resident is granted a R1 million Single Discretionary Allowance (SDA) and R10 million Approval of International Transfers (AIT) previously known as Foreign Investment Allowance (FIA) to send funds offshore. These two allowances combined form your Foreign Exchange Allowance, which in total, enables you to send up to R11 million Rand abroad in a calendar year. These allowances are reset on 1 January each year, irrespective of how much was utilised the previous year.
Whilst utilising the Arbitrage Service, a portion of your Foreign Exchange allowance is used each time your funds are sent abroad to purchase crypto assets or stablecoins overseas.
The R1 million Rand SDA can be readily used, however in order to utilise the R10 million AIT, you will be required to complete and submit an application to obtain a Tax Clearance Certificate to the South African Revenue Services. FiveWest can assist with these applications at no additional cost upon your request. FiveWest cannot be held responsible in the event that the application is not successful and you acknowledge that all information provided in respect of the application is true and correct. FiveWest cannot be held responsible if the information provided by you contains any errors, omissions or is incorrect.
It is your responsibility to notify FiveWest if there are any restrictions in respect of the utilisation of your full SDA, otherwise your full SDA will be utilised.
It is your responsibility to ensure that you do not exceed your Foreign Exchange allowance. Furthermore, it is your responsibility to ensure that you notify FiveWest if you have previously used a portion of the Foreign Exchange Allowance prior or during utilising a service of FiveWest.
The South African Reserve Bank has Frequently Asked Questions on their website which can provide you with further information regarding your Foreign Exchange Allowance.

Risk Warning

It is imperative that you review the Risk Warnings as contained on FiveWest’s Site, which may be updated and amended from time to time.
Nature of Crypto Arbitrage Trading: Crypto arbitrage trading involves taking advantage of price discrepancies of crypto assets across different exchanges or markets. While arbitrage aims to profit from the price imbalance, it is important to note that trading in crypto assets is highly volatile and subject to rapid price fluctuations.
Volatility and Market Risk: Crypto asset markets are known for their extreme volatility. Prices of crypto assets can experience significant changes within short periods. Market risks are inherent and sudden price movements can result from various factors including regulatory changes, technological developments, market sentiment and macroeconomic events.
Third Party Risk: Engaging in the Arbitrage Service involves utilising third parties. These third parties have their own operational and security risks including potential outages, security breaches and technical glitches that could impact the trade execution, funds safety and the overall trading experience.
Regulatory and Legal Risks: The regulatory landscape for crypto assets varies across jurisdictions and is subject to change. Regulatory interventions, such as bans, restrictions or increased scrutiny, could impact the availability, trading and value of crypto assets or the actual provision of providing the Arbitrage Service.
Technology and Security Risks: Crypto assets rely on blockchain technology, which is susceptible to technological vulnerabilities, hacking and cybersecurity threats.
Past performance is not indicative of future results. Historical performance of arbitrage trading strategies should not be considered a guarantee of future results. The crypto asset market’s behaviour may not accurately predict its future performance.
It is essential to assess your own financial situation and risk tolerance before participating in the Arbitrage Service. Only invest what you can afford to lose without affecting your financial well-being.

Limitation of Liability and Warranties

You are solely responsible for any decision related to the use of the Arbitrage Service and the decision to use the Arbitrage Service.
You acknowledge and agree that the use of the Arbitrage Service is entirely at your own risk and accordingly, you assume full responsibility and risk of loss resulting from or relating to such use.
You assume the risks associated with any cryptocurrency platforms used to administer the Arbitrage Service.
In no event shall FiveWest, its operating entities or any other affiliates (including their respective directors, members, employees or agents) be liable to you for any direct, indirect, special, consequential or punitive damages or any other damages of any kind, including but not limited to loss of profit, loss of revenue, loss of business, loss of opportunity, loss of data, whether in contract, delict or otherwise:

arising out of or in any way connected with your use of, inability to use, or unavailability of the Arbitrage Service and/or your FiveWest Account;
your breach of these Terms of Use and Additional Documents;
arising out of or in any way connected to or resulting from any reliance upon any information received from FiveWest, or that result from mistakes, omissions, interruptions, deletion of files or email, errors, defects, viruses, delays in operation or transmission or any failure of performance, whether or not resulting from a force majeure event, communications failure, theft, destruction or unauthorised access to FiveWest’s records, programmes or services, provided that FiveWest did not act in gross negligence;
suffered by you as a result of an action or inaction caused by a third party provider or authority, including but not limited to banks, platforms, exchanges or entities, utilised during the Arbitrage Service Flow. You further indemnify and hold FiveWest harmless in the event that the third party is liquidated, placed in business rescue, curatorship, hold or any other similar event and confirm that any claim will be directed towards the third party and you indemnify FiveWest in this regard.

In no event shall FiveWest’s total liability (if any) to you for all claims arising out of or as a result of these Terms exceed (in aggregate) the fees earned by FiveWest in connection with your use of your FiveWest Account in the six month period immediately preceding the event giving rise to the claim for liability.
You understand that should any funds be removed from your call account (trading bank account) without notifying a representative of FiveWest first, could result in a failed trade. In the event of a failed trade, you shall be responsible for all penalties and losses suffered, whether directly or indirectly incurred or suffered by FiveWest.
You are responsible for ensuring that you are fully aware of, and compliant with, all laws applicable to the use of the Arbitrage Service, including those related to taxes and Exchange Control Regulations.
FiveWest does not warrant, guarantee or represent that you will realise profits or that you will realise a minimum or maximum amount of profits.
You have not taken transfer of, nor are you attempting to use the Foreign Exchange Allowance of any other person.
Your SDA and/or AIT utilised for the Arbitrage Service have been applied for strictly in accordance with the Exchange Control Regulations, and when taken together with your other foreign investments, your transactions under these Product Terms will not exceed your allocated allowances in any given calendar year.