Conversion Service Accounts

1. What are Conversion Services Accounts?

Conversion Services Accounts are PDAX accounts without safekeeping capabilities or access to the PDAX web or mobile app dashboard. Using a Conversion Services Account, a user may place orders and trade digital assets with PDAX’s OTC desk. 

2. What is the difference between a PDAX account with full functionality and a Conversion Services Account?

Conversion Services Accounts (CSAs) may only be used to access conversion services (specifically, buying, selling, or trading of digital assets, and the provision of quotes), which exclude safekeeping and administration services. 

Fiat currencies or digital assets transferred to PDAX to fund orders submitted using your CSA must be fully used for order settlement on the same business day they are received by PDAX. If your order involving the transferred fiat currencies or digital asset is not accepted or executed by PDAX, you must place a replacement order to fully use the remaining balance within the business day, or you must request that the funds be returned.

Note: CSAs do not have access to the PDAX web or mobile app dashboard.

Please see the Conversion Services Terms and Conditions here.

3. What should I do if I think I have remaining unutilized assets and funds?

If you think you have unutilized assets and funds, please contact support@pdax.ph as soon as possible so we can review your account and determine the next steps.

4. Are there penalties applied to remaining balances in a CSA?

Yes. At the end of a certain period, if there are any unutilized digital assets and/or fiat currencies in PDAX’s possession, PDAX will impose a penalty of 3% of the unutilized balance, or PHP 3,000, whichever is higher. The penalty will be applied on the total amount of the unutilized balance on the day when the penalty is applied.

To avoid penalties, please ensure that all balances are utilized by the end of each business day. Any funds or assets transferred to PDAX using your CSA that are not used to settle an order on the same day will be subject to a penalty.

PDAX will notify you via email of any unutilized funds or assets. A monthly penalty will be charged to your CSA on the 20th of every month if an unutilized balance exists for an aggregate of 15 days or longer for the previous month before the penalty is applied. The penalty assessment done on the 20th covers the 20th day of the previous month to the 19th day of the month when the penalty is applied. For  example, the penalty to be applied on February 20th will cover the period January 20 to February 19th.

Sample Scenario:

Scenario 1: If a user transferred PHP 150,000 on January 19 to PDAX but only utilized PHP 100,000 to settle an Order, and an unutilized balance of PHP 50,000 remained utilized until February 20, 2026, the penalty will be computed and applied as follows:

1. Since the balance of PHP 50,000 was not utilized until February 20 (i.e., it remained unutilized for 30 days from January 20 to February 19), the penalty is the higher of either PHP 3,000 or 3% of the unutilized funds or assets on the day when the penalty is applied. 

2. Since 3% of PHP 50,000 is PHP 1,500, the penalty of PHP 3,000 will be applied.

3. The penalty of PHP 3,000 will be applied on February 20, 2026. If the balance remains unutilized, it may be subject to penalties on the 20th of the next month.

Scenario 2: If a user transferred PHP 150,000 on January 21 to PDAX but only utilized PHP 100,000 to settle an Order, and transferred an additional PHP 100,000 on February 15 resulting in an unutilized balance of PHP 150,000, which remained utilized until February 20, 2026, the penalty will be computed and applied as follows:

1. Since there was an unutilized balance until February 20 (i.e., it remained unutilized for 29 days from January 21 to February 19), the penalty is the higher of either PHP 3,000 or 3% of the unutilized funds or assets on the day when the penalty is applied. 

2. Since 3% of PHP 150,000 (i.e., the unutilized balance when the penalty is applied) is PHP 4,500, the penalty of PHP 4,500 will be applied.

3. The penalty of PHP 4,500 will be applied on February 20, 2026. If the balance remains unutilized, it may be subject to penalties on the 20th of the next month.

Scenario 3: If a user transferred 20,000 USDT on January 19 to PDAX but only utilized 19,000 USDT to settle an Order, and an unutilized balance of 1,000 USDT remained utilized until February 20, 2026, the penalty will be computed and applied as follows:

1. Since the balance of 1,000 USDT was not utilized until February 20 (i.e., it remained unutilized for 30 days from January 20 to February 19), the penalty is the higher of either PHP 3,000 or 3% of the unutilized funds or assets on the day when the penalty is applied. 

2. Assuming 1 USDT = PHP 60.84 on February 20, the 3% PHP-equivalent of the unutilized balance is PHP 1,825.20. As this is lower than PHP 3,000, PHP 3,000 worth of USDT will be deducted from the 1,000 USDT or approximately 49.31 USDT will be deducted from the 1,000 USDT.

3. The penalty of 49.31 USDT will be applied on April 20, 2026. If the balance remains unutilized, it may be subject to penalties on the 20th of the next month.

Scenario 4: If a user transferred PHP 100,000 on January 21, fully utilized such balance to settle an Order on February 10, and transferred another PHP150,000 on February 19, the penalty will be computed and applied as follows:

1. Since there was an unutilized balance for 21 days [from January 21 to February 10 (i.e., 20 days), and on February 19 (i.e., 1 day)], the penalty is the higher of either PHP 3,000 or 3% of the unutilized funds or assets on the day when the penalty is applied. 

2. Since 3% of PHP 150,000 (i.e., the unutilized balance when the penalty is applied) is PHP 4,500, the penalty of PHP 4,500 will be applied.

3. The penalty of PHP 4,500 will be applied on February 20, 2026. If the balance remains unutilized, it may be subject to penalties on the 20th of the next month. 

Scenario 5: If a user transferred PHP 150,000 on January 21 and an additional PHP 100,000 on February 15 resulting in an unutilized balance of PHP 150,000, but utilized such balance to settle an Order on February 19, no penalty will be applied (since there is no unutilized balance on February 20, the day when the penalty is to be imposed).

Scenario 6: If a user transferred PHP 150,000 on January 21, fully used the PHP 150,000 on January 23 (i.e., 2 days), and transferred another PHP 100,000 on February 15 resulting in an unutilized balance of PHP 100,000 on February 20 (i.e., 6 days), no penalty will be applied (since the balance has only been unutilized for 8 days within the assessment period).

5. What happens if my unutilized assets and funds are below PHP 3,000?

If the unutilized balance is below PHP 3,000 when the penalty is applied, the assets will be converted to PHP and penalty will be deducted from your balance.

Disclaimer:

The contents herein are provided for general informational purposes only and should not be considered as definitive legal, business or tax advice. Trading with any financial product or digital asset (including cryptocurrency) is subject to the user’s risk and own discretion and must be done after adequate and in-depth research and analysis.

Prospective purchasers or sellers of financial products should consult their own counsel, accountants or other advisors as to legal, tax, business, financial and related aspects of the purchase of such financial product, among others. PHILIPPINE DIGITAL ASSET EXCHANGE (PDAX), INC. does not guarantee the performance, and the technical and financial integrity, of the digital assets and their ecosystems, and, to the extent allowed by law, shall not be responsible for any loss sustained by the customer.

For inquiries or complaints, please contact us through the following channels: Chatbot: https://pdax.ph or https://web.pdax.ph/ (click webchat feature); ‘Customer Support’ webpage at https://support.pdax.ph; Email: support@pdax.ph. Please provide us your name, email address, and any other information that we may need to identify you, your PDAX Account, and the particulars of the Order and/or Transaction on which you have feedback, questions, or complaints. If you already have a registered PDAX account, please provide us your registered name.

PHILIPPINE DIGITAL ASSET EXCHANGE  (PDAX), INC. is regulated by the Bangko Sentral ng Pilipinas (BSP) https://www.bsp.gov.ph. You may get in touch with the BSP Consumer Protection and Market Conduct Office through the following channels: Email: consumeraffairs@bsp.gov.ph; Webchat: https://www.bsp.gov.ph (click webchat feature); Facebook:https://www.facebook.com/BangkoSentralngPilipinas; Direct Line: (02) 5306 2584 / (02) 8708 7087; Trunk Line: (02) 8708 7701 loc. 2584; or SMS: 21582277 (for Globe subscribers only). For further details, you may refer to BSP's Inclusive Finance - Consumer Protection.