Risk Policy

Effective 20 July 2026

The main risks involved in using an escrow platform and how EscrowPK manages and discloses them.

1. Purpose

This Risk Policy describes, at a general level, the principal risks associated with using EscrowPK and the controls we apply to manage them. It is provided for transparency and does not replace the Disclaimer of Warranties and Limitation of Liability set out in Sections 15 and 16 of the Terms & Conditions.

2. Counterparty Risk

Escrow reduces, but does not eliminate, the risk that a buyer or seller may misrepresent goods, delay performance, or act in bad faith. EscrowPK mitigates this through KYC verification, evidence-based dispute resolution, and holding funds until delivery is confirmed or a dispute is resolved.

3. Shipment and Delivery Risk

Physical goods can be lost, delayed, or damaged in transit. EscrowPK requires sellers to record shipment details and delivery packing photographs, and gives buyers a defined Delivery Confirmation and Acceptance Window (Section 8 of the Terms & Conditions) to inspect and raise concerns before funds are released.

4. Platform and Technology Risk

As with any online platform, there is a risk of downtime, technical error, or security incidents. EscrowPK applies encrypted connections, access controls, and monitoring to reduce these risks, but cannot guarantee uninterrupted or error-free operation, as disclosed in Section 15 of the Terms & Conditions.

5. Regulatory and Legal Risk

EscrowPK operates as a custodial escrow service under Pakistani law and is registered with the Securities and Exchange Commission of Pakistan (SECP). Changes in applicable law or regulation may affect how the service operates. EscrowPK does not conduct unlicensed banking activity, consistent with Section 2 of the Terms & Conditions.

6. Financial Crime Risk

There is an inherent risk that any payments platform could be misused for money laundering or fraud. EscrowPK manages this risk through the controls described in our AML Policy and KYC Policy, including transaction monitoring and mandatory identity verification.

7. User Responsibility

Users remain responsible for accurately describing goods and services, honoring agreed deal terms, keeping their account credentials secure, and promptly reporting suspected fraud or unauthorized account activity to EscrowPK support.