Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 78

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1
Chunk 78
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 financial institution partners to provide key components of our services on our behalf, including payments processing and
disbursement. Our utilization of such payment processing tools may be impacted by factors outside of our control, including disruptions
in the payment processing industry generally. If these service providers, processors or partners do not perform adequately, or if our
relationships with these service providers were to change or terminate, it could negatively affect our customers’ ability to complete
transactions, and our ability to operate our services. This could decrease revenue, increase costs, lead to potential legal liability
and negatively impact our brands and business. In addition, if these providers increase the fees they charge us, our operating expenses
could increase. Alternatively, if we respond by increasing the fees we charge to our customers, some customers may stop using our services
or even close their accounts altogether.

Moreover, if we or any of our third-party payment
processors or financial institution partners experience a security breach affecting payment card information, we could be subjected to
fines, penalties and assessments arising out of state and federal regulatory enforcement, liability to consumers, the major card brands’
rules and regulations, contractual indemnification obligations or other obligations contained in user agreements and similar contracts,
and we may lose our ability to accept card payments for our services.

Our ability to expand our services into additional
countries is dependent upon the third-party service providers and partners we use to support our services. As we expand the availability
of our services to additional markets or make new payment methods available to our customers in the future, we may become subject to additional
and evolving regulations and compliance requirements, and may be exposed to heightened fraud risk, which could lead to an increase in
our operating expenses.

The laws and regulations related to payments and
financial services are complex and vary across different jurisdictions in the U.S. and globally. Furthermore, changes in laws, rules
and regulations have occurred and may occur in the future, which may impact our business practices. We may be required to expend considerable
time and effort to determine if such laws and regulations apply to our business and may be required to spend significant time and effort
to comply, and ensure we are in compliance, with those laws and regulations. Any failure or claim of our failure to comply or any failure
by our third-party service providers and partners to comply with such laws and regulations or other requirements, including the payment
network rules and Payment Card Industry Data Security Standard, could divert substantial resources, result in liabilities or force us
to stop offering our services