Terms & Conditions
PREAMBLE
Purpose and Scope:
These Terms and Conditions (“Terms”) govern the access to and use of the Felix Protocol (the “Platform”) accessible at https://usefelix.xyz, including the user interface. The Platform is an all-in-one decentralised interface built on a Third-Party Blockchain Network. The Platform provides users with a comprehensive suite of tools and functionalities to manage their digital assets, interact with decentralised applications, and participate in staking and governance activities. The Platform operates independently of any central authority or intermediary, and its functionality is governed by the rules encoded within the Smart Contracts deployed on a Third-Party Blockchain Network.
These Terms constitute a legally binding agreement between any individual or entity accessing or utilising the Platform (each a “User”) and Felix Labs Inc, a company registered in the State of Delaware, U.S., with a place of business located at 131 Continental Drive, City of Newark, County of New Castle – 19713, or any successor entity that assumes the Platform Operator’s obligations under these Terms (the “Platform Operator”). The Platform Operator may update or amend these Terms from time to time, as outlined in Section 1.6.
Acceptance of Terms:
By accessing or using the Platform, Users affirm that they have read, understood, and agreed to be bound by these Terms, including any amendments, updates, or modifications thereto, and represent and warrant that they (1) have the full legal capacity to enter into this agreement; (2) and are not prohibited from using the Platform under any Applicable Laws; (3) meet the eligibility criteria set forth in these Terms, including not being a Sanctioned Person or from a Sanctioned Jurisdiction or associated with any such parties; and (4) are adequately qualified, knowledgeable and experienced in the use of blockchain technologies, and the functionality of the Platform, and understand and accept the risks described in these Terms. If a User does not agree with these Terms or cannot make the foregoing representations, in whole or in part, they must not use the Platform.
Acceptance of these Terms is deemed to occur when a User:
Connects their digital wallet to the Platform;
Engages in any interaction with the Platform, including viewing or transacting;
Utilises any services provided by the Platform Operator or its affiliates through the Platform.
Restricted Persons and Jurisdictions:
THE PLATFORM WAS NOT DEVELOPED FOR, AND IS NOT OFFERED TO PERSONS OR ENTITIES WHO RESIDE IN, ARE CITIZENS OF, ARE LOCATED IN, ARE INCORPORATED IN, OR HAVE A REGISTERED OFFICE OR PRINCIPAL PLACE OF BUSINESS IN THE UNITED STATES OR ANY RESTRICTED JURISDICTION OR COUNTRY SUBJECT TO ANY SANCTIONS OR RESTRICTIONS PURSUANT TO ANY APPLICABLE LAW, INCLUDING THE CRIMEA REGION, CUBA, IRAN, NORTH KOREA, SYRIA, RUSSIA, OR ANY OTHER COUNTRY TO WHICH THE UNITED STATES, THE UNITED KINGDOM, THE EUROPEAN UNION OR ANY OTHER JURISDICTION EMBARGOES GOODS OR IMPOSES SIMILAR SANCTIONS, OR ANY JURISDICTIONS IN WHICH THE USE OF DECENTRALIZED PROTOCOLS OF THIS NATURE IS EXPRESSLY PROHIBITED BY LAW, (COLLECTIVELY, THE “RESTRICTED JURISDICTIONS” AND EACH A “RESTRICTED JURISDICTION”), OR ANY PERSON OWNED, CONTROLLED, LOCATED IN OR ORGANIZED UNDER THE LAWS OF ANY RESTRICTED JURISDICTION OR AFFILIATED WITH ANY SUCH PERSON, ANY PERSON LISTED ON ANY SANCTIONS LIST MAINTAINED BY THE UNITED STATES, THE UNITED KINGDOM, THE EUROPEAN UNION OR ANY OTHER JURISDICTION, OR A RESIDENT OF OR LOCATED IN ANY COUNTRY OR JURISDICTION THAT RESTRICTS ACCESS TO OR PROHIBITS USE OF DIGITAL ASSETS OR CRYPTO CURRENCIES (COLLECTIVELY, “RESTRICTED PERSONS”). THERE ARE NO EXCEPTIONS. IF A USER IS A RESTRICTED PERSON OR LOCATED IN A RESTRICTED JURISDICTION, THEN SUCH USER MUST DO NOT USE OR ATTEMPT TO USE THE PLATFORM. USE OF ANY TECHNOLOGY OR MECHANISM, SUCH AS A VIRTUAL PRIVATE NETWORK (“VPN”), TO CIRCUMVENT OR ATTEMPT TO CIRCUMVENT THE RESTRICTIONS SET FORTH HEREIN IS STRICTLY PROHIBITED.
USERS ACKNOWLEDGE, UNDERSTAND AND AGREE THAT THEY ARE NOT PERMITTED TO MODIFY, DISASSEMBLE, DECOMPILE, ADAPT, ALTER, TRANSLATE, REVERSE ENGINEER OR CREATE DERIVATIVE WORKS OF THE PLATFORM TO MAKE THEM AVAILABLE TO ANY RESTRICTED PERSON OR IN ANY RESTRICTED JURISDICTION.
NEITHER THE PLATFORM OPERATOR NOR ITS SERVICE PROVIDERS ARE RESPONSIBLE FOR ANY ACTIVITIES THAT USERS ENGAGE IN WHEN USING ANY ONLINE SERVICES OR BLOCKCHAIN TECHNOLOGIES NOT PROVIDED BY THE PLATFORM OPERATOR.
Knowledgeable Use Only The Platform is intended only for Users who possess sufficient knowledge, experience, and understanding of digital assets, blockchain technology, and the risks associated with their use. By accessing or using the Platform, the User represents and warrants that they understand and can evaluate the technical, financial, and legal risks inherent in transacting with or holding digital assets, including, without limitation: the risk of loss of funds or digital assets; the fact that digital assets are not legal tender and are not backed by any government; the absence of investor-compensation or deposit-protection schemes; operational risks associated with blockchain networks or smart contracts, including bugs, forks, vulnerabilities, delays, and outages that may affect the User’s ability to complete transactions; cybersecurity risks such as hacking, malware, denial-of-service attacks, Sybil attacks, or spoofing; and the possibility that information made available through the Platform may be incomplete, inaccurate, outdated, or interrupted.
By using the Platform, the User confirms that they have the necessary knowledge and understanding to assess these risks and to bear the potential losses arising from their use of digital assets and the Platform. Users who do not have sufficient understanding of these risks must not use the Platform.
Nature of the Platform:
The Platform operates as an automated, decentralised protocol through autonomous Smart Contracts deployed on a Third-Party Blockchain Network.
Users retain full control and responsibility over their assets and transactions, as set forth in Section 5 (Platform Operator). The Platform is non-custodial.
Registration and Wallet Connection
To access the Platform, Users must connect a compatible blockchain wallet through the User Interface. The Platform will indicate what constitutes a compatible wallet for purposes of accessing and using the Platform, and such determination may be updated from time to time without prior notice. Users need to be aware that their compatible blockchain wallet is provided by a third-party entity and is generally governed by separate terms and conditions set by the respective third-party service provider. Users are further advised that attempting to access or use the Platform with an incompatible or unsupported wallet may result in the loss of funds or digital assets.
By connecting their wallet, Users acknowledge and agree to the following:
Acceptance of Terms: The act of connecting a wallet constitutes acceptance of these Terms including full awareness and understanding of associated risks.
Understanding of Risk Disclosure: Users confirm that they have read and understood the Risk Disclosure outlined in Section 11 (Risk Disclosure).
Self-Custody Responsibility: Users are responsible for securing their blockchain wallets, private keys, and recovery phrases. The Platform Operator does not control the wallets, manage or recover credentials if Users lose them, if someone steals them from them, or if someone obtains access to them somehow (whether in transit to Users, or from their systems or networks, or because they otherwise misplaced them or disclosed them). Users acknowledge that if someone has their keys or seed phrase, they have the ability to transfer your digital assets outside your control, and that you may be unable to trade or make use of them. It is the User’s responsibility to establish a means for recovering their seed phrase and keys.
Amendments and Modifications:
The Platform Operator reserves the right to amend, modify, or update these Terms and the Platform at any time, at its sole discretion, including to reflect changes in legal, regulatory, technical, or business requirements. Users will be notified of any material changes to these Terms through official communication channels, including but not limited to:
Notices published on the Platform;
Email notifications (if applicable); and
Updates within the Platform’s user interface.
Ongoing use of the Platform following any modifications to the Terms or the Platform itself, signifies the acceptance of the updated Terms. Users are advised to regularly review the Terms to stay aware of their rights and duties.
Eligibility and Restrictions:
The Platform is intended solely for individuals or entities that possess sufficient knowledge and expertise to understand the risks associated with the services offered on the Platform.
The Platform Operator may implement compliance measures, including geoblocking, for certain products, including the Perp DEX, to ensure adherence to Applicable Laws and sanctions regimes. Limited due diligence procedures may be conducted for transactions involving specific fiat-backed or derivative products. Users agree not to attempt to bypass such controls through VPNs, proxies, or other obfuscation techniques.
By using the Platform, Users represent and warrant that:
Individuals are at least 18 years old or the age of majority in their jurisdiction, provided they are acting in a business or professional capacity as required by Section 1.3 (Knowledgeable Use Only);
They have the legal capacity to enter into binding agreements;
They will comply with all Applicable Laws;
They are not located in, under the control of, or a national or resident of any jurisdiction where the use of the Platform is prohibited or would subject the Platform Operator to any legal or regulatory liabilities; and
They are not subject to economic sanctions imposed by the United Nations, the European Union, the United States, or any other applicable jurisdiction.
The Platform Operator reserves the right to restrict or terminate access to Users who do not meet these eligibility criteria.
Compliance and Regulatory Considerations:
No Financial, Legal, or Tax Advice
The Platform Operator does not act as Users’ financial advisor, investment manager, arranger, introducer, or commodity trading advisor, or otherwise interact with, or with respect to any digital assets Users use in connection with the Platform. All information provided through the User Interface is for informational purposes only and should not be construed as advice of any kind. NO FINANCIAL, INVESTMENT, TAX, LEGAL, OR SECURITIES ADVICE IS GIVEN THROUGH OR IN CONNECTION WITH THE PLATFORM. No content found on the Platform, whether created by the Platform Operator, their service providers, their business partners, or another user, is or should be considered investment advice. Users agree and understand that the Platform Operator does not have any responsibility whatsoever for and shall in no circumstances be liable in connection with, their decisions or their use of the Platform.
Users are solely responsible for ensuring compliance with all applicable legal, tax, and regulatory obligations in their jurisdiction. The Platform Operator makes no representations regarding the legality of the Platform’s services in any specific country or region. Regulatory requirements and compliance obligations may vary, and Users should seek independent professional advice if needed.
Contact and Support:
For inquiries, support, or feedback regarding the Platform or these Terms, Users may contact the Platform Operator via official communication channels listed on the Platform’s website.
DEFINITIONS
For the purposes of these Terms, the following capitalised terms shall have the meanings set forth below, regardless of whether they appear in singular or plural form:
“Token”: refers exclusively to the feUSD token, the native over-collateralized stablecoin of the Platform, designed to maintain a value close to one U.S. dollar. It is minted by Users depositing eligible crypto assets as Collateral and serves as the primary settlement and liquidity token within the Platform. The Token does not confer governance or membership rights.
“Token Transaction” refers to any staking, storing, transfer, loan, exchange, minting, Redemption, or interaction involving Tokens conducted through the Smart Contracts on a Third-Party Blockchain Network.
“User Interface” refers to the front-end web application and is an independent interface that allows Users to interact with the Smart Contracts. The User Interface simplifies interactions by enabling wallet connections, transaction submissions, and position monitoring, but it does not execute or control any Token Transactions on the Third-Party Blockchain Network.
“Smart Contracts” refer to self-executing programs deployed on the Third-Party Blockchain Network that facilitate and govern Token Transactions.
“Third-Party Blockchain Network”: A decentralized blockchain infrastructure that hosts the Token and its associated Smart Contracts.
“Gas Fees” refer to transaction fees paid to a Third-Party Blockchain Network to validate and execute Token Transactions. Users are solely responsible for paying Gas Fees, which fluctuate based on network demand.
“Applicable Laws” refer to the laws, regulations, and legal requirements that govern the use of the Platform, including but not limited to financial regulations, anti-money laundering (AML) laws, tax obligations, and data protection laws.
“Interim Measures” refer to temporary legal remedies or injunctions granted by a court or arbitrator to preserve the status quo or prevent imminent harm pending the outcome of a dispute resolution process.
“Arbitral Award” refers to the final and binding decision issued by an arbitrator in accordance with the LCIA Arbitration Rules, as administered under Section 14. .
“Vault” refers to a type of Smart Contract within the Platform that stores collateral or assets deposited by a User, and which enforces the applicable rules for minting, borrowing, repayment, and liquidation without reliance on intermediaries.
“Redemption” refers to the process by which Token holders can exchange their tokens for $1 worth of Collateral at face value from the Platform, minus any applicable fees. Redemptions may be processed through the Smart Contracts against open debt positions with the lowest interest rates.
“Collateral” refers to eligible digital assets supported by the protocol (including the digital assets (ETH, Lido ETH (wstETH), Rocket Pool ETH (rETH)), HYPE, HUSD, USDC, LSTs, and any future assets added pursuant to protocol governance) deposited by Users into the Smart Contracts to secure their debt positions and mint Tokens.
“Stability Pool” refers to Smart‑contract pools into which Users may deposit Tokens to absorb liquidations of under-collateralised CDP Product, in exchange for receiving the underlying collateral and any associated protocol rewards.
“Vanilla Product/ Markets” are a set of lending and borrowing pools based on the Morpho Blue framework for native tokens (e.g., HYPE, HUSD, USDC), without Redemption mechanics and with fully dynamic rates. Users may lend or borrow tokens, subject to protocol-defined interest rates.
“CDP Product” refers to a collateralized-debt-position (“CDP”) vault mechanism enabling Users to deposit eligible collateral assets to mint a stablecoin, subject to liquidation and Redemption mechanics governed by Smart Contracts.
“Perp DEX” or “Perpetual Markets” refers to the decentralized perpetual trading system operated within the Platform, built on HyperLiquid or equivalent infrastructure. The Perp DEX enables Users to trade perpetual futures on digital, synthetic, or tokenized assets, which may include but are not limited to cryptocurrencies, equities, commodities, indexes, or other eligible assets approved by the Platform Operator. It operates through non-custodial Smart Contracts governed by the Platform Operator, relying on third-party oracle providers such as Redstone for external asset price data, and may require Collateral staking to ensure oracle reliability and mitigate penalties arising from malfunction or manipulation.
“Yield Pools” are pools where Users may supply eligible tokens to earn yield (including Stability Pools for Tokens), with returns derived from borrower interest, protocol fees, incentives, and/or liquidation gains as applicable.
“Market” is a distinct set of Smart Contracts and parameters governing a product primitive (e.g., Token CDP Market; Vanilla Markets).
“Liquid Staking Tokens (LSTs)” are tokenized receipts representing staked assets (e.g., staked ETH) that may be supported as eligible collateral, subject to protocol parameters and risk assessments.
“Oracles” refers to third‑party price feeds (e.g., RedStone or equivalent) used by the Smart Contracts to value Collateral and determine position health; oracle inputs may be delayed, unavailable, or inaccurate.
“Keepers” refers to independent actors who permissionlessly execute liquidations on undercollateralised positions in the CDP Product.
“Utilisation Curve” refers to a dynamic ratio reflecting how much of a market’s supplied liquidity is borrowed, which influences variable interest rates in Vanilla Markets.
“USDhl Product” is a fiat-backed stablecoin deployed by the Platform Operator on HyperEVM, fully collateralised by U.S. Treasury bills and held in custody by the M0 Foundation, with reward distribution managed by the Platform Operator.
“M0 Foundation” is the custodian responsible for managing the fiat and treasury collateral backing USDhl.
“Collateralisation Ratios” means the ratio between the value of a User’s deposited collateral and the value of the debt or obligations issued against it, as determined by the Platform’s Smart Contracts.
“Proxy Contracts” refers to Smart Contracts structures that separate contract logic from data storage in order to permit upgrades or modifications to the contract after deployment. For the avoidance of doubt, neither the Vanilla Markets nor the associated Vaults employ proxy contracts, and all such components operate as immutable instances consistent with Morpho’s original security design, with modifications audited by independent third parties such as Three Sigma. The CDP Product similarly operates through immutable Smart Contracts administered via governance mechanisms controlled by the Platform Operator, without reliance on upgradeable proxy structures.
PLATFORM DESCRIPTION
Decentralised and Autonomous Infrastructure The Platform is a decentralized and autonomous software infrastructure that operates through self-executing Smart Contracts deployed on a Third-Party Blockchain Network. It is designed to function without intermediaries, custodians, or centralized control.
The Platform Operator provides access to the Platform through a User Interface but does not control, modify, or intervene in the execution of Token Transactions.
Core features The Platform may include the features described below, although availability may vary and such features may be modified, suspended, or discontinued from time to time without prior notice in the Platform Operator’s discretion:
Collateralization: Digital assets accepted by the Platform to secure debt positions and mint Tokens. The Platform requires over-collateralisation to ensure system solvency and mitigate the risks of market volatility.
Access to Stability Pool: A pool of Tokens provided by Users to absorb the debt of liquidated positions. Stability Pool depositors are entitled to a share of the liquidated Collateral and may earn rewards for their contributions.
Vanilla Markets: Variable‑rate lending pools allowing Users to lend or borrow asset‑native tokens (e.g., HYPE, HUSD, USDC) directly; pricing follows a utilisation curve; no Redemption mechanics.
Access to Yield Pools: Pools where Users may supply eligible tokens to earn yield (including Stability Pools for Tokens), with returns derived from borrower interest, protocol fees, incentives, and/or liquidation gains as applicable.
Strategy Combination: Users may combine primitives (e.g., mint Tokens via the CDP Market, lend it or other tokens in Vanilla Markets, or loop exposures), subject to Smart Contract rules and risks.
Oracle Dependency: The Platform relies on external price Oracles for Collateral valuations and risk parameter enforcement. Disruptions, delays, or inaccuracies in price feeds may affect redemptions, liquidations, and borrow limits.
DECENTRALISATION AND AUTONOMY
The Platform is designed to operate without reliance on any centralised party:
Autonomous Smart Contracts: All transactions on the Platform are governed by Smart Contracts deployed on a Third-Party Blockchain Network. These contracts execute automatically based on predefined rules and conditions.
No intermediary role: The Platform Operator does not act as an intermediary in Token Transactions. Users interact directly with the Smart Contracts, assuming full responsibility for their transactions.
PLATFORM OPERATOR
The Platform Operator provides and maintains the User Interface that enables Users to interact with the Platform’s Smart Contracts. The Platform Operator’s role is strictly limited to facilitating access to the Platform, and it does not control, manage, or intervene in Token Transactions conducted on the Third-Party Blockchain Network.
Duties of the Platform Operator
The Platform Operator shall, to the extent possible, provide and maintain the User Interface through which Users can access the Platform. 2. No Custodial Services
The Platform Operator does not provide custodial services for any Tokens. Users remain solely responsible for securing their wallets, private keys, and recovery phrases as set forth in Section 9.1 (Security and Wallet Management).
The Platform Operator: 1. Does not store or manage user assets: All Tokens are managed directly by the Smart Contracts on the Third-Party Blockchain Network. 2. Cannot recover lost credentials: The Platform Operator does not have access to or store Users keys or seed phrases, so it has no ability to recover lost or compromised private keys. 3. Issue Tokens: The Platform Operator has no control over the creation or destruction of Tokens, which is managed entirely by the Platform’s Smart Contracts. 4. Intervene in Transactions: The Platform Operator does not initiate, approve, or modify any Token Transactions conducted through the Platform.
ACCESS AND USE OF THE PLATFORM
Wallet Connection Requirement Users must connect a compatible digital wallet to access and utilise the Platform’s services. Users are responsible for ensuring that:
Their connected wallet is properly configured to interact with the Platform.
They have sufficient funds in their wallet to cover Token Transactions and associated Gas Fees.
They understand the mechanics and risks of interacting with Smart Contracts.
The Platform Operator disclaims all liability for losses resulting from errors, misconfigurations, or unauthorised access to Users’ wallets.
Conditions of Use By connecting to the Platform, Users represent and warrant that they:
Are authorized to use the Platform: Users represent and warrant that they have the legal capacity and authority to enter into a binding agreement under these Terms.
Accept risks: Users represent and warrant that they have sufficient knowledge, experience, and understanding of the Platform, digital assets, blockchain technology, and the risks associated with their use. Users who do not have sufficient understanding of these risks must not use the Platform.
Are Compliant with Applicable Laws: Users represent and warrant that their activities on the Platform comply with all Applicable Laws. The Platform generally operates without performing customer due diligence, except where required by Applicable Law for specific products such as the Perp DEX or fiat-backed tokens. Users are solely responsible for ensuring that their use of the Platform complies with all applicable anti-money laundering (“AML”), counter-terrorist financing (“CTF”), and sanctions laws in their jurisdiction. By accessing the Platform, Users represent and warrant that their participation does not violate any such laws and acknowledge that any failure to comply may expose them to legal or regulatory consequences. The Platform Operator disclaims any responsibility or liability for Users’ non-compliance with AML/CTF obligations.1
Are not subject to sanctions or restrictions: Users represent and warrant that they are not subject to any sanctions or restrictions imposed under Applicable Laws. Users further represent and warrant that they are not listed on any sanction lists maintained by competent authorities, do not directly or indirectly own or control any assets associated with sanctioned persons or entities, and have not received any assets from such persons or entities. Additionally, Users confirm that they will not engage in any transactions or activities on the Platform that involve individuals, entities, or jurisdictions subject to such sanctions or restrictions.
Security and User Responsibility Users are responsible for securing their blockchain wallets and private keys. The Platform Operator does not manage, store, or recover User credentials, and Users must take all necessary precautions to prevent unauthorized access to their wallets.
Security and User Responsibility Users are responsible for securing their blockchain wallets and private keys. The Platform Operator does not manage, store, or recover User credentials, and Users must take all necessary precautions to prevent unauthorized access to their wallets. The User must: 1. Secure Their Wallets: Implement appropriate security measures, such as using hardware wallets and securing recovery phrases. 2. Verify Transactions: Carefully verify transaction details before initiating any Token Transactions through the User Interface or directly on the Third-Party Blockchain Network. The Platform Operator disclaims all liability for losses resulting from unauthorised access to User wallets or errors in Token Transactions initiated by Users.
Suspension or Termination of Access The Platform Operator may suspend or terminate access to the User Interface at its discretion, including in cases of suspected breach of these Terms or engages in prohibited activities, as outlined in Section 9.3 (Prohibited Conduct). Users acknowledge that such suspension does not prevent continued interaction with the underlying Smart Contracts, which remain permissionless and outside the control of the Platform Operator. Users remain contractually bound by these Terms in all interactions with the Platform, whether through the User Interface or directly via Smart Contracts.
Suspension or termination of access does not affect the User’s ability to interact with the Smart Contracts directly on the Third-Party Blockchain Network. Users remain responsible for managing their positions and complying with the protocol’s rules, even if their access to the User Interface is restricted.
PLATFORM FEATURES
Overview of Services: The Platform provides a comprehensive range of decentralised services that enable Users to manage their digital assets, interact with decentralised applications, and participate in minting and other activities. The information provided in connection with access and use of the services is for informational purposes only. While the Platform Operator aims to deliver accurate and reliable content, the Platform Operator cannot guarantee its accuracy, completeness, or timeliness. The information may be outdated, contain errors, or have omissions. Users should not make decisions or take actions based solely on the information available on the Platform, including, but not limited to, https://usefelix.gitbook.io/felix-docs or any other content provided, such as blog posts, data, articles, third-party links, news feeds, tutorials, tweets, or videos. The Users acknowledge and agree that the Platform Operator shall not be held responsible or liable, either directly or indirectly, for any damage or loss arising from, or allegedly caused by, the use of or reliance on any content, goods, or services accessed through such sites or resources. The key services offered by the Platform may include, but are not limited to:
Minting Tokens: Users may generate Tokens by depositing eligible digital assets as collateral through the Platform’s Smart Contracts. The Platform will indicate which digital assets are eligible for use as Collateral, and eligibility may be updated from time to time in accordance with the Protocol’s parameters and without prior notice. Upon deposit, a collateralized debt position is created, and Tokens are minted proportionally to the collateral value, subject to the applicable collateralization ratio and Platform parameters. The minted Tokens are credited to the User’s connected wallet and may be used within the Platform Operator’s ecosystem or across compatible decentralized applications. Users may repay their outstanding Token debt at any time to reduce or close their collateralized debt position. Upon full repayment of the minted amount (including any applicable fees), the corresponding collateral becomes available for withdrawal through the Smart Contracts. Redemption and repayment are governed by the Protocol’s parameters and may be subject to market conditions, protocol updates, or collateral valuation requirements.
Borrowing or lending: Users may borrow or lend Tokens through the Platform at interest rates determined at their sole discretion and subject to the parameters displayed on the Platform. To borrow, Users must deposit eligible digital assets as collateral, with borrowing limits determined by the applicable collateral factors of such assets. The total borrowed balance includes both the principal and any accrued interest, which must be repaid in accordance with the Protocol’s terms. Users are responsible for reviewing the current borrowing and lending parameters and interest rate mechanisms as published on https://usefelix.gitbook.io/felix-docs
Redemption: Users may redeem Tokens through the Platform’s Redemption mechanism in exchange for collateral at a notional rate of one U.S. dollar per Token, less any applicable fees. Upon Redemption, the corresponding collateral is transferred to the User, and the overall debt positions within the Protocol are reduced in accordance with the applicable interest rate hierarchy. Redemptions may support the stability of the Token peg by adjusting circulating supply and collateral balances.
Stability Pool / feUSD System: The Stability Pool is an integral component of the Platform designed to maintain the solvency and stability of the Token over-collateralized stablecoin system. Users may deposit Tokens into Stability Pools, which automatically absorb the debt of liquidated positions, thereby ensuring protocol balance and preserving the Token peg to the U.S. dollar. In return, depositors receive a proportional share of the liquidated collateral, which may vary in value, along with potential rewards, bonuses, or yield as defined by the Protocol. Tokens deposited in the Stability Pool may be partially or fully burned during liquidations to offset borrower debt, and all processes operate in a non-custodial, permissionless manner through Smart Contracts. The Platform Operator oversees the deployment and technical maintenance of the Stability Pool contracts, while parameters governing liquidations and reward distributions are defined within the Protocol and publicly available on https://usefelix.gitbook.io/felix-docs.
Monitoring Positions: Users must actively monitor their Collateralisation Ratios to avoid liquidation. The Platform provides real-time tools for Users to track the value of their Collateral and debt positions.
Liquidation Mechanism: The Platform includes a liquidation mechanism to maintain stability and solvency, where it automatically closes under-collateralised positions to prevent the Platform from accumulating debt.
CDP Product: The CDP Product is a fork of the open-source Liquity protocol, licensed to the Platform Operator. It operates through immutable Smart Contracts governed by a multisig wallet controlled by the Platform Operator, with no capacity for the Platform Operator to seize, redirect, or otherwise interfere with User’s funds. Core risk parameters and collateral settings are managed by the Platform Operator’s multisig with advisory input from third-party providers designated by the Platform Operator from time to time, such as Anthias Labs. The protocol’s liquidations and redemptions are permissionless and executed by independent keepers. Twenty-five percent (25%) of all protocol fees are automatically routed to the Platform Operator as revenue, while all modified code has been independently audited by Three Sigma, Coinspec, and Dedaub. Users are responsible for managing their collateralised debt positions to ensure that their Collateralisation Ratios remain above the Platform’s liquidation threshold. Users must adjust and review self-selected rates; CDP borrowers must review and, if needed, adjust their self‑selected rates to maintain healthy positions given redemption mechanics. Within the operation of the CDP Product, Users are strictly prohibited from engaging in abusive practices, including attempts to manipulate price Oracles or exploit Smart Contracts through techniques such as re-entrancy or flash-loan attacks, for the purpose of gaining an unfair advantage in minting, redemption, or liquidation processes.
Vanilla Product (Morpho Blue Fork): The Platform’s Vanilla Product is a fork of the open-source Morpho Blue protocol, integrating the Morpho Markets and Morpho Vaults components under a perpetual license. Morpho Markets operate on a single contract instance originally deployed by the Morpho team, which retains control over certain parameters such as fees, while market creation remains permissionless and has been used by the Platform Operator to deploy multiple markets. Morpho Vaults, deployed and owned by the Platform Operator, allow Users to allocate capital across markets without manual redistribution and may use adaptors developed by the Platform Operator and audited by third-party provider designated by the Platform Operator from time to time, such as Three Sigma for asset compatibility. Each Vault defines governance roles where the Platform Operator acts as Owner, and the designated third-party provider, such as Anthias Labs, serves as Curator, Allocator, and Guardian, overseeing strategy approval, liquidity rebalancing, and risk management, including emergency interventions. Vaults collect fees from capital deployment and yield generation, of which ten percent (10%) are allocated to the Platform Operator as revenue, while Anthias Labs is compensated for its management functions and the remaining proceeds are distributed to lenders. Neither the markets nor the Vaults employ Proxy Contracts, and all deployed components follow Morpho’s original security design, with all modifications made by the Platform Operator and independently audited by a third-party provider, such as Three Sigma. Users must monitor additional requirements applicable to Vanilla Markets and must monitor floating interest rates, utilisation‑driven APY changes, and collateral requirements applicable to Vanilla positions; promptly add collateral, reduce debt, or unwind positions to remain within protocol parameters. Within the operation of Vanilla Markets, Users are strictly prohibited from engaging in manipulative or exploitative behaviour, including attempts to distort Utilisation Curves, conduct wash-trades or self-referential borrowing activity, manipulate price Oracles, or exploit Smart Contracts through techniques such as re-entrancy or flash-loan attacks, for the purpose of gaining an unfair advantage in interest rates, liquidity allocation, or liquidation processes.
Perp DEX (Perpetual Markets on HyperLiquid): The Platform’s Perp DEX enables Users to trade perpetual futures contracts on digital, synthetic, or tokenized assets deployed on the HyperLiquid network. These may include crypto assets, equities, commodities, or index-based markets, subject to the Platform’s technical and compliance parameters. With respect to the use of Perp DEX:
The Perp DEX leverages the Platform’s integration of HyperLiquid’s non-custodial infrastructure and relies on Redstone Oracles for external asset price feeds. The Platform Operator maintains a staked Collateral reserve to guarantee oracle performance and mitigate penalties resulting from oracle malfunction or manipulation.
Perpetual Markets generate revenue through deployment fees and a 0.1% transaction fee applied to the order size for trades executed via the Platform front-end interface. Market creation and parameter adjustments are controlled by the Platform Operator, with no DAO governance in place, while the product remains non-custodial; Users retain full control over their margin positions. Users acknowledge that the Perp DEX is under active development and may contain errors, performance limitations, or unforeseen risks. Users are encouraged to review the applicable parameters, fee schedule, and market specifications published on https://usefelix.gitbook.io/felix-docs.
The Platform Operator will, as necessary, enforce compliance measures including geo-blocking of Users from sanctioned or high-risk jurisdictions and screening for sanctioned individuals in accordance with applicable international regulations. Limited due diligence may apply to certain transactions to maintain compliance with international standards while preserving a non-custodial user experience. Users accessing the Perp DEX acknowledge that these controls are technical in nature and agree not to circumvent them through VPNs or other means.
USDhl Product (Fiat-Backed Stablecoin using M0 Foundation Infrastructure ): The USDhl Token is a fiat-backed stablecoin issued by the Platform Operator on HyperEVM as a wrapper of the M0 Foundation’s “M token” technology, which represents U.S. Treasury bill holdings on Ethereum. Custody of the underlying collateral remains solely with the M0 Foundation, while the Platform Operator manages the deployment and operation of USDhl on HyperEVM, including the distribution of rewards and integration with selected Hyperliquid platforms. Rewards are sourced from M0’s Ethereum treasury holdings and bridged to HyperEVM approximately once per month, after which the Platform Operator converts them into HYPE Tokens and distributes them to eligible USDhl holders based on participation parameters. The Platform Operator does not charge fees on USDhl issuance or Redemption but retains control over the reward distribution pathway. The product employs no Proxy Contracts, has no DAO governance, and relies on the M0 Foundation’s custody and compliance infrastructure for collateral security. The Platform Operator oversees the technical deployment and maintenance of the Smart Contracts, while end users hold USDhl and receive HYPE-denominated rewards passively through protocol-defined mechanisms.
FEES AND PAYMENTS
Fee Structure:
The use of services on the Platform may be subject to fees, which are determined by the Platform Operator and subject to change at any time and without prior notice. The applicable fees may include but are not limited to:
Transaction Fees: Costs associated with executing Token Transactions, including Gas Fees.
Protocol Fees: Charges related to the delegation of the Token. All fees and allocations are executed automatically by Smart Contracts, with no discretionary intervention by the Platform Operator or any third party.
CDP Product: Users do not pay minting or redemption fees. Protocol-level fees apply to CDP operations, of which twenty-five percent (25%) are allocated to the Platform Operator as revenue.
Vanilla Markets: Vaults accrue fees from lending and borrowing activity. Ten percent (10%) of these fees are allocated to the Platform Operator as revenue, with Anthias Labs separately compensated for its risk management functions.
USDhl: No fees are charged on issuance or redemption. The Platform Operator manages the distribution of rewards but does not retain any portion thereof.
Perp DEX Fees: A transaction fee of 0.1% is charged on the order size for trades executed via the Perp DEX front-end. Additional protocol fees may apply to the deployment of new perpetual or spot markets. All Perp DEX fees are executed automatically by Smart Contracts and are non-refundable once confirmed on-chain.
Users acknowledge and agree to pay all applicable fees in accordance with the current fees schedule published on the Platform.
Payment Methods:
Payments for Platform services shall be conducted exclusively through supported digital assets, including but not limited to the Token. The Platform does not allow payments in traditional fiat currency.
Users must ensure that they have sufficient funds in their connected wallet to cover any applicable fees, and failure to do so may result in the inability to access or complete certain transactions.
Fee Adjustments:
The Platform Operator reserves the right to adjust, introduce, or remove fees at its sole discretion. Any changes to the fee structure will be communicated to Users via:
Notices on the Platform;
Email notifications (if applicable); and
Updates within the Platform’s User Interface.
Users are encouraged to review the fee schedule periodically to remain informed of any updates.
Refund Policy:
All protocol-level fees (including but not limited to Gas Fees, protocol revenue allocations, or liquidation penalties) are irrevocable once executed on-chain and are not refundable under any circumstances. Any off-chain or User Interface service fees, if applicable, are non-refundable except as required by applicable law.
Billing Disputes:
If a User believes they have been charged incorrectly, they must contact the Platform Operator within thirty (30) days of the transaction. Failure to notify the Platform Operator within this period shall result in the waiver of any claim related to the disputed charge.
Taxes:
Users are solely responsible for determining and fulfilling any tax obligations that may arise from your use of the Platform, including any transactions involving digital assets. The Platform Operator does not report any taxes Users may owe to any governmental authority. It is Users’ responsibility to report and remit any taxes, duties, or similar assessments that may be imposed by any governmental authority, and to maintain accurate records as required by applicable law.
USER OBLIGATIONS AND RESPONSIBILITIES
Security and Wallet Management:
Users are responsible for the security of their blockchain wallets and private keys and must take appropriate measures to protect their assets, including but not limited to:
Implement Security Measures: Use hardware wallets, multi-factor authentication, and other security tools to protect their wallets.
Keep Recovery Phrases Secure: Store recovery phrases in a secure, offline location and ensure they are not shared with unauthorised parties.
Verify Transactions: Carefully verify transaction details before initiating any Token Transaction through the User Interface or directly on the Third-Party Blockchain Network.
Phishing and Social Engineering Attacks: Users must be vigilant against phishing attacks, fake websites, and social engineering attempts to steal their wallet credentials.
Unauthorised Transactions: Users are responsible for ensuring that their wallets are secure and that they do not authorise transactions from compromised devices or networks.
The Platform Operator shall not be liable for any losses resulting from a User’s failure to secure their wallet credentials or errors in Token Transactions initiated by Users.
General Obligations:
By accessing and using the Platform, Users shall:
Provide accurate, current, and complete information when required;
Use the Platform only for lawful purposes and in accordance with these Terms;
Abstain from any activities that may interfere with the integrity, security, or performance of the Platform;
Failure to comply with these obligations may result in the suspension or termination of the User’s access to the Platform.
Prohibited Conduct:
Users shall not engage in any of the following prohibited activities while using the Platform:
Fraudulent Activities: Engaging in any fraudulent, deceptive, or manipulative conduct that could harm the Platform or other Users.
Unauthorised Access: Attempting to gain unauthorised access to the Platform, its systems, or any associated networks, including violating or circumventing any legally imposed compliance measures implemented.
Impersonation: Impersonating or attempting to impersonate the Platform Operator, the Platform Operator’s personnel, other Users, or any other person or entity.
Malicious Code: Introducing or attempting to introduce any virus, worm, Trojan horse, logic bomb, or other malicious or technologically harmful material into the Platform or any related systems.
Exploitation of Vulnerabilities: Using the Platform to exploit bugs, vulnerabilities, or loopholes in Smart Contracts or Platform features.
Platform Attacks: Engaging in any denial of service attack, distributed denial of service attack, or any conduct intended to disrupt or degrade the Platform’s infrastructure.
Interference with Platform Functionality: Disabling, overburdening, damaging, or impairing the Platform or interfering with any other User’s access to or use of the Platform.
Circumventing Fees: Users must not attempt to bypass Gas Fees, Platform fees, or other costs associated with using the Platform.
Disrupting Network Operations: Users must not deploy bots, scripts, or other automated systems to disrupt or manipulate the Platform’s operations or other Users’ interactions with the Platform.
Unlawful Activities: Conducting or facilitating any activity that violates Applicable Laws, regulations, or legal obligations, including but not limited to money laundering, terrorism financing, or tax evasion.
Unauthorized Smart Contract Activity: Introducing, deploying, or interacting with any smart contract or code designed to extract data or assets from the Platform or other Users without their consent.
False Information: Providing false, inaccurate, or misleading information during registration, verification, or any interaction with the Platform.
Compliance Evasion: Circumventing or attempting to circumvent any access controls, geo-blocking, compliance measures, or wallet restrictions implemented by the Platform Operator, including through the use of virtual private networks, proxy servers, or false identifying information.
Unauthorized Fundraising or Token Activity: Using the Platform for fundraising, staking pools, or token sales unless expressly authorized by the Platform Operator.
Mixer or Tumbler Activity: Using the Platform as a mixer, tumbler, anonymization tool, or any similar mechanism intended to obscure the source or destination of digital assets.
Data Harvesting: Collecting, harvesting, or attempting to collect wallet addresses, transaction data, or personal information from other Users.
Sanctions: Transact on behalf of, or for the benefit of, any Restricted Person or any person or entity located in a Restricted Jurisdiction.
Intellectual Property Violations: Infringing upon the intellectual property rights of the Platform Operator or any third parties.
Market Manipulation: Engage in coordinated, collusive, or deceptive trading activity, including wash trading, spoofing, front-running, or any similar conduct.
Credential Misuse: Use or attempt to use another user’s wallet or credentials without authorization or access the Platform through unauthorized integrations or smart-contract calls.
Improper Content Use: Uploading, transmitting, or using any material that violates any content standards or platform guidelines issued by the Platform Operator.
Unauthorized Advertising: Transmitting or facilitating the transmission of unsolicited or unauthorized advertising, promotional materials, spam, or similar solicitations without the Platform Operator’s prior written consent.
Harm to Minors: Exploiting, harming, or attempting to exploit or harm minors in any way.
Automated Monitoring: Using any robot, spider, crawler, or other automated device, process, or means to access, monitor, or copy any part of the Platform, except as expressly permitted by the Platform Operator.
Manual Monitoring: Using any manual process to monitor or copy any material available through the Platform without the Platform Operator’s prior written consent.
Replication of the Platform: Copying, mirroring, replicating, or attempting to reproduce the Platform or any Platform Operator Materials.
Data Extraction and AI Training: Using content made available through the Platform, or any output generated by the Platform, to train or develop any machine learning or artificial intelligence tools, datasets, software, or models.
Other Harmful Conduct: Engaging in any activity that, in the Platform Operator’s sole judgment, poses a risk of legal liability, regulatory exposure, reputational harm, or disruption to the operation or integrity of the Platform.
Reporting and Cooperation:
Users shall promptly report any suspected security breaches, unauthorised access, or other suspicious activities related to the Platform. The Platform Operator reserves the right to cooperate with regulatory authorities and law enforcement agencies in investigating any such incidents.
Suspension or Termination of Access:
Any violation of the provisions in Section 9.3 (Prohibited Conduct) may result in legal action and the immediate suspension or termination of the User’s access to the Platform, but the Platform Operator does not undertake an obligation to engage in such activities**.** The Platform Operator reserves the right to suspend or terminate a User’s access to the Platform if:
The User violates these Terms or engages in prohibited conduct;
Required by applicable law or regulatory order;
The Platform Operator determines that continued access poses a risk to the Platform’s security, stability, or integrity.
Users whose access has been suspended or terminated shall not attempt to re-access the Platform without prior written approval from the Platform Operator.
USER ACKNOWLEDGMENTS
Users interact directly with the Smart Contracts through their connected wallets. By initiating Token Transactions, Users acknowledge and accept the following responsibilities that they must familiarise themselves with the rules and conditions encoded in the Smart Contracts, including the risks of liquidation and redemption fees. The Smart Contracts may contain bugs or vulnerabilities that could result in unexpected losses. Failure to verify transaction details or understand the Platform’s rules may result in financial loss, for which the Platform Operator disclaims all liability.
Users acknowledge and agree that their use of the Platform is subject to compliance with these Terms and all Applicable Laws in its jurisdiction, such as Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) regulations, and specially in regards to:
Securities laws and regulations governing digital assets;
Data protection and privacy laws applicable in their jurisdiction.
Irreversibility of Transactions All Market and Pool Interactions conducted through the Smart Contracts are final and irreversible once confirmed on the Third-Party Blockchain Network. Users must exercise caution when initiating transactions, as they cannot be modified, reversed, or cancelled once recorded on the Third-Party Blockchain Network.
Gas Fees and Transaction Costs Users acknowledge that all transactions conducted through the Platform require Gas Fees paid to the Third-Party Blockchain Network to validate and process the transaction.
Responsibility for Gas Fees: Users are solely responsible for ensuring that their wallets contain sufficient funds to cover Gas Fees.
Fluctuation of Gas Fees: Gas Fees are determined by the underlying blockchain network, are subject to significant fluctuations based on demand, and may increase during periods of high congestion. The Platform Operator bears no responsibility for failed transactions caused by insufficient Gas Fees or network delays.
Failed Transactions: Transactions may fail if insufficient Gas Fees are provided. The Platform Operator disclaims liability for any failed transactions due to insufficient fees or network conditions.
RISK DISCLOSURE
General Acknowledgment of Risks:
Users acknowledge that the use of the Platform involves various risks inherent to blockchain-based services and decentralised finance (DeFi). By accessing and using the Platform, Users accept the following risks, including but not limited to:
Regulatory Risks: The regulatory environment for blockchain technology and digital assets is evolving, and Users must comply with all Applicable Laws.
Market Risks: Digital asset prices are highly volatile and can fluctuate significantly, leading to potential financial losses. The Platform Operator makes no guarantees regarding the stability or value of any digital asset.
Volatility of Collateral: The value of Collateral deposited in the Platform may decrease due to market volatility. A sudden drop in Collateral value may trigger liquidation, resulting in the loss of Collateral.
Peg Deviations: The market price of Tokens may deviate from its intended peg of $1.00. These deviations may result from market conditions or external factors. Users bear the risk of holding Tokens during such deviations.
Security Risks: Users are responsible for securing their accounts, wallets, and private keys against unauthorised access, phishing, and hacking attempts.
Liquidity Risks: There is no guarantee of liquidity for any digital assets, which may affect Users’ ability to buy, sell, or exchange their holdings.
Network Congestion and Downtime: The Third-Party Blockchain Network may experience congestion, downtime, or technical failures that impact transaction processing. Users must be prepared for potential delays or transaction failures.
Blockchain Forks: The underlying blockchain network may undergo forks, updates, or changes that could affect the functionality of the Smart Contracts and the availability of the Platform.
Smart Contract Risks:
Users acknowledge that the Platform relies on Smart Contracts deployed on the Third-Party Blockchain Network, which:
Are immutable once deployed and cannot be modified;
May contain bugs or security vulnerabilities despite auditing efforts. The Platform Operator does not audit or guarantee Smart Contracts. While the Smart Contracts may be audited by third parties, the Platform Operator does not guarantee their security or functionality.
Are subject to blockchain network conditions that may impact performance and availability.
Depend on third‑party Oracles such as RedStone. Errors, delays, or manipulation may trigger liquidations or redemptions at non‑representative prices. The Platform Operator disclaims liability for oracle provider performance.
Users agree that they will conduct their own due diligence before interacting with any Smart Contracts on the Platform.
Perpetual Market and Oracle Risks:
Perpetual trading involves additional risks related to leveraged exposure and reliance on third-party oracle providers for price data. Oracle errors, delays, or manipulation may result in unexpected liquidations or mark-price discrepancies. The Platform Operator disclaims liability for any oracle-related losses. Users also acknowledge that the Perp DEX remains in testing phase, and its features, collateral models, and pricing mechanisms are subject to change.
Trading synthetic equity or index markets may involve additional regulatory and compliance risks depending on the User’s jurisdiction. Users are responsible for ensuring that their participation complies with applicable securities and derivatives regulations. 2
Third-Party Risks: Users acknowledge that the Platform may integrate or rely on third-party services, including decentralised exchanges, Oracles, liquidity providers, and wallet services. The Platform disclaims any liability for losses or disruptions caused by third-party services.
No Guarantee of Profit Users acknowledge that their participation in staking, trading, or other activities on the Platform does not guarantee profits. All financial decisions made by Users are at their own discretion and risk.
Incident Reporting Users are encouraged to report bugs, vulnerabilities, or other issues to the Platform Operator through designated communication channels. The Platform Operator may, at its discretion, provide incentives and/or rewards in connection with the above.
Reliance on Information Posted The information presented on or through the Platform is made available solely for general information purposes. The Platform Operator does not warrant the accuracy, completeness, or usefulness of this information. Any reliance Users place on such information is strictly at their own risk. We disclaim all liability and responsibility arising from any reliance placed on such materials by you or any other visitor to the Platform, or by anyone who may be informed of any of its contents.
The Platform includes content provided by third parties. All statements and/or opinions expressed in these materials, other than the content provided by the Platform Operator, are solely the responsibility of the person or entity providing those materials. These materials do not necessarily reflect the opinion of Platform Operator. We are not responsible, or liable to you or any third party, for the content or accuracy of any materials provided by any third parties.
THE PLATFORM OPERATOR DOES NOT ENDORSE AND ARE NOT RESPONSIBLE OR LIABLE FOR ANY THIRD-PARTY MATERIALS, INFORMATION, PROTOCOLS, NETWORKS, INFRASTRUCTURE, RESOURCES, APPLICATIONS, DATA, CONTENT OR SERVICES, EVEN IF AVAILABLE ON, THROUGH OR FROM THE PLATFORM. THE PLATFORM OPERATOR DOES NOT HAVE ANY RESPONSIBILITY FOR, NO CONTROL OVER, AND MAKE NO GUARANTEES WITH RESPECT TO, THE QUALITY, SECURITY, ACCURACY, RELIABILITY, OR UPTIME OF SUCH THIRD-PARTY MATERIALS.
LIMITATION OF LIABILITY Users acknowledge that they assume full responsibility for their interactions with the Platform and agree to the following limitations on the Platform Operator’s liability.
Assumption of Risks for Users The Platform Operator disclaims all liability for any losses or damages arising from Token Transactions initiated by Users on the Platform. Specifically, the Platform Operator shall not be liable for these risks, which are not limited to the following list:
Incorrect or unauthorised transactions: as outlined in section 9.1
Unauthorised access to wallets: as outlined in Section 6.3
Transaction failures: as outlined in Section 5.3.
Loss of private keys: Users are responsible for securing their private keys, recovery phrases, and other wallet credentials. The Platform Operator cannot recover lost credentials.
Bugs, vulnerabilities, or exploits: The Smart Contracts may contain bugs, vulnerabilities, or exploits that could result in unexpected behavior or loss of funds.
Protocol changes or forks: The underlying blockchain may undergo changes, including forks or upgrades, that could impact the functionality of the Smart Contracts.
Permanent Loss of Funds: Issues with the Smart Contracts may result in permanent loss of funds or positions.
Network Failures: Issues with the underlying Third-Party Blockchain Network, including node failures, network congestion, or attacks.
Regulatory Actions: Changes in laws or regulations that affect the operation or legality of the Platform.
If any jurisdiction limits the extent to which liability may be disclaimed or limited, the Platform Operator’s liability shall be limited to the maximum extent permitted by law.
Disclaimer of Warranties:
Users understand that the Platform Operator cannot and does not guarantee or warrant that the Platform, Smart Contracts, Token, Vault, CDP Product, Market, Liquid Staking Tokens, USDhl Product, Proxy Contracts, or any other product or services provided by the Platform Operator on or through the Platform, now or in the future (Collectively, the “Platform Operator Materials”) or any decentralized product or services available on or through the Platform, including any blockchain or governance protocols (Collectively, the “Decentralized Materials”) will be free of viruses or other destructive code. Users are responsible for implementing sufficient procedures and checkpoints to satisfy their own particular requirements for anti-virus protection, accuracy of data input and output. TO THE FULLEST EXTENT PROVIDED BY LAW, THE PLATFORM OPERATOR WILL NOT BE LIABLE FOR ANY LOSS OR DAMAGE CAUSED BY A DENIAL OF SERVICE ATTACK, DISTRIBUTED DENIAL-OF-SERVICE ATTACK, VIRUSES, OR OTHER TECHNOLOGICALLY HARMFUL MATERIAL THAT MAY INFECT USERS COMPUTER EQUIPMENT, COMPUTER PROGRAMS, DATA, OR OTHER PROPRIETARY MATERIAL DUE TO THEIR USE OF THE PLATFORM OPERATOR MATERIALS OR THE DECENTRALIZED MATERIALS OR ANY SERVICES OR ITEMS OBTAINED THROUGH THE PLATFORM OR TO YOUR DOWNLOADING OF ANY MATERIAL POSTED ON IT, OR ON ANY WEBSITE LINKED TO IT.
USERS USE OF THE PLATFORM, AND ANY SERVICES OR ITEMS OBTAINED THROUGH THE PLATFORM OPERATOR MATERIALS OR THE DECENTRALIZED MATERIALS IS AT THEIR OWN RISK. THE PLATFORM OPERATOR MATERIALS AND THE DECENTRALIZED MATERIALS ARE PROVIDED ON AN “AS IS” AND “AS AVAILABLE” BASIS, WITHOUT ANY WARRANTIES OF ANY KIND, EITHER EXPRESS, STATUTORY, IMPLIED OR OTHERWISE. NEITHER THE PLATFORM OPERATOR NOR ANY PERSON ASSOCIATED WITH THE PLATFORM OPERATOR MAKES ANY WARRANTY OR REPRESENTATION WITH RESPECT TO THE COMPLETENESS, SECURITY, RELIABILITY, QUALITY, ACCURACY, OR AVAILABILITY OF THE PLATFORM OPERATOR MATERIALS OR THE DECENTRALIZED MATERIALS. WITHOUT LIMITING THE FOREGOING, NEITHER THE PLATFORM OPERATOR NOR ANYONE ASSOCIATED WITH THE PLATFORM OPERATOR REPRESENTS OR WARRANTS THAT THE PLATFORM OPERATOR MATERIALS OR THE DECENTRALIZED MATERIALS WILL BE ACCURATE, RELIABLE, ERROR-FREE, OR UNINTERRUPTED, THAT DEFECTS WILL BE CORRECTED, THAT THE PLATFORM OPERATOR MATERIALS OR THE DECENTRALIZED MATERIALS ARE FREE OF VIRUSES OR OTHER HARMFUL COMPONENTS, OR THAT ANY OF THE FOREGOING WILL OTHERWISE MEET USERS NEEDS OR EXPECTATIONS.
TO THE FULLEST EXTENT PROVIDED BY LAW, THE PLATFORM OPERATOR HEREBY DISCLAIMS ALL WARRANTIES OF ANY KIND, WHETHER EXPRESS OR IMPLIED, STATUTORY, OR OTHERWISE, INCLUDING ANY WARRANTIES OF MERCHANTABILITY, NON-INFRINGEMENT, AND FITNESS FOR A PARTICULAR PURPOSE.
LIMITATION OF LIABILITY:
TO THE MAXIMUM EXTENT PERMITTED BY LAW, IN NO EVENT SHALL THE TOTAL LIABILITY OF THE PLATFORM OPERATOR, ITS AFFILIATES, AND EACH OF THEIR RESPECTIVE LICENSORS, SERVICE PROVIDERS, EMPLOYEES, AGENTS, CONTRACTORS, OFFICERS AND DIRECTORS (COLLECTIVELY, THE “INDEMNIFIED PARTIES”) ARISING OUT OF OR RELATING TO THESE TERMS OR YOUR USE OF THE PLATFORM EXCEED ONE HUNDRED CAYMAN ISLANDS DOLLARS (US$100).
THE FOREGOING DOES NOT AFFECT ANY LIABILITY THAT CANNOT BE EXCLUDED OR LIMITED UNDER APPLICABLE LAW.
FOR THE AVOIDANCE OF DOUBT, THE LIMITATIONS CONTAINED IN THIS SECTION 12 (LIMITATION OF LIABILITY) DO NOT LIMIT THE USER`S INDEMNIFICATION OBLIGATIONS UNDER THIS SECTION.
INDEMNIFICATION
THE PLATFORM OPERATOR AND ITS AFFILIATES, AND EACH SUCH PARTY’S DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, CONTRACTORS AND SERVICE PROVIDERS (COLLECTIVELY, THE “INDEMNIFIED PARTIES”)** SHALL HAVE NO LIABILITY FOR, AND USERS HEREBY HOLD HARMLESS AND INDEMNIFY, AND AGREE TO DEFEND THE INDEMNIFIED PARTIES FROM AND AGAINST ANY AND ALL LOSSES, CLAIMS, DEMANDS, ACTIONS, PROCEEDINGS LIABILITIES, DAMAGES, JUDGMENTS, AWARDS, DEMANDS, SETTLEMENTS FEES, COSTS, AND EXPENSES, INCLUDING REASONABLE ATTORNEYS’ AND LEGAL FEES ARISING OUT OF OR RELATING TO: (A) USERS USE OF, OR INABILITY TO USE, THE PLATFORM OPERATOR MATERIALS OR THE DECENTRALIZED MATERIALS, OR ANY PART THEREOF, INCLUDING ANY INTERFACES PROVIDED BY THE PLATFORM OPERATOR; (B) ANY SMART CONTRACTS, WHETHER DEPLOYED, CALLED, OR OTHERWISE INTERACTED WITH THROUGH THE PLATFORM OPERATOR MATERIALS OR THE DECENTRALIZED MATERIALS* INCLUDING ANY FAILURE OF SUCH SMART CONTRACTS OR OTHER CODE TO FUNCTION AS EXPECTED, OR ANY IRREVERSIBLE OR UNINTENDED EFFECTS; (C) USERS PURCHASE, COLLECTION, TRADING OR OTHER TRANSACTION RELATED TO ANY TOKENS OR OTHER DIGITAL ASSETS THEY CREATE, PURCHASE, SELL, TRADE, ISSUE, STAKE, MINT, BURN, OR MANAGE THROUGH THE PLATFORM OPERATOR MATERIALS OR THE DECENTRALIZED MATERIALS INCLUDING ALL FEES THEY MAY INCUR IN DOING SO; (D) ANY TRANSACTIONS CONDUCTED THROUGH OR IN CONNECTION WITH THE PLATFORM OPERATOR MATERIALS OR THE DECENTRALIZED MATERIALS, INCLUDING ANY LOSS OF OR INABILITY TO ACCESS DIGITAL ASSETS, OR ANY FAILURE, DELAY, MALFUNCTION, OR INACCURACY OF ANY ASSOCIATED NETWORK, SMART CONTRACT, OR DATA FEED; (E) ANY INACCURACIES, DELAYS, ERRORS, OR OMISSIONS IN DATA DISPLAYED THROUGH THE PLATFORM OPERATOR MATERIALS OR THEDECENTRALIZED MATERIALS OR TOOLS PROVIDED BY THE PLATFORM OPERATOR; (F) ANY MODIFICATION, SUSPENSION, OR DISCONTINUATION OF THE PLATFORM OPERATOR MATERIALS OR THE DECENTRALIZED MATERIALS OR ANY COMPONENT THEREOF FOR ANY REASON, INCLUDING IF THE PLATFORM OPERATORINTENTIONALLY DISABLES A USER ACCOUNT OR DIGITAL WALLET; (G) USERS LOSS OF CONTROL OVER OR COMPROMISE OF THEIR SEED PHRASE, PRIVATE KEYS, OR OTHER ACCESS CREDENTIALS; (H) USERS’ DEVICES, HARDWARE, OR EQUIPMENT; (I) ANY OPEN SOURCE COMPONENTS OR THIRD-PARTY CODE INCLUDED IN OR USED IN CONNECTION WITH THE PLATFORM OPERATOR MATERIALS OR THE DECENTRALIZED MATERIALS; (J) ANY ACTION OR INACTION TAKEN BY ANY OF THE INDEMNIFIED PARTIES, OR BY LAW ENFORCEMENT OR GOVERNMENT AUTHORITIES, DURING OR AS A CONSEQUENCE OF ANY INVESTIGATION OR WHEN SEEKING TO OBTAIN INFORMATION RELATED TO THE PLATFORM OPERATOR MATERIALS OR THE DECENTRALIZED MATERIALS OR OUR USERS; (K) ANY CLAIMS OF COPYRIGHT INFRINGEMENT OR OTHER INTELLECTUAL PROPERTY VIOLATIONS RELATING TO ANY MATERIALS; (L) USERS’ FAILURE TO COMPLY WITH THESE TERMS, OR ANY APPLICABLE LAWS, REGULATIONS, OR THIRD-PARTY TERMS, INCLUDING THOSE RELATING TO SECURITIES, COMMODITIES, MONEY TRANSMISSION, SANCTIONS, CONSUMER PROTECTION, TAX, OR ADVERTISING; (M) ANY FEES, WHETHER CHARGED BY THE PLATFORM OPERATOR OR ANY THIRD PARTY, IN CONNECTION WITH USERS’ USE OF THE PLATFORM OPERATOR MATERIALS OR THE DECENTRALIZED MATERIALS; (N) USERS’ CONNECTION OF A DIGITAL WALLET TO THE PLATFORM OPERATOR MATERIALS OR THE DECENTRALIZED MATERIALS, INCLUDING WHETHER, WHEN, HOW AND WITH WHOM TO TRADE; (O) ANY DECISIONS USERS MAKE OR ACTIONS THEY TAKE BASED ON INFORMATION PROVIDED THROUGH THE PLATFORM OPERATOR MATERIALS OR THE DECENTRALIZED MATERIALS, OR YOUR USE OF, OR RELIANCE ON, ANY CONTENT, MATERIALS OR APPLICATIONS, (P) LOSSES YOU SUFFER AS A RESULT OF YOUR TRADING, STAKING, LENDING, BORROWING, OR OTHERWISE ENGAGING IN TRANSACTIONS WITH DIGITAL ASSETS; (Q) ANY TAXES, DUTIES, OR GOVERNMENTAL CHARGES OF ANY KIND ARISING FROM USERS’ USE OF THE PLATFORM OPERATOR MATERIALS OR THE DECENTRALIZED MATERIALS OR ANY APPLICATION, OR FROM ANY TRANSACTION INVOLVING DIGITAL ASSETS, INCLUDING USERS’ FAILURE TO REPORT OR PAY SUCH TAXES TO THE APPROPRIATE TAXING AUTHORITIES; (R) TRANSMISSION OF USER INFORMATION AND CONTENT OVER UNENCRYPTED COMMUNICATIONS LINES AND POSTING ON-CHAIN; (S) ANY DISPUTES WITH OTHER USERS ARISING EITHER BY A USER’S ACTION OR INACTION OR THEIRS; OR (T) THE RISKS IDENTIFIED IN THESE TERMS PERTAINING TO DIGITAL ASSETS, AND ANY OTHER RISKS ASSOCIATED WITH USE OF THE PLATFORM OPERATOR MATERIALS, THE DECENTRALIZED MATERIALS, OR DIGITAL ASSETS.
USERS FURTHER IRREVOCABLY WAVE, TO THE MAXIMUM EXTENT PERMITTED BY LAW, ANY CLAIM THEY MAY HAVE AGAINST THE INDEMNIFIED PARTIES ARISING FROM THE MATTERS DESCRIBED HEREIN.
ANY CAUSE OF ACTION OR CLAIM USERS MAY HAVE ARISING OUT OF OR RELATING TO THESE TERMS OR THE PLATFORM OPERATOR MATERIALS OR THE DECENTRALIZED MATERIALS MUST BE COMMENCED WITHIN ONE (1) YEAR AFTER THE CAUSE OF ACTION ACCRUES, OTHERWISE, SUCH CAUSE OF ACTION OR CLAIM IS PERMANENTLY BARRED.
Scope of Indemnification
Nothing in this Section shall limit any other remedies available to the Platform Operator under these Terms or Applicable Law.
No Waiver of Immunity Nothing in this section shall be construed as a waiver of any legal immunity or defense available to the Indemnified Parties under applicable law. The Platform Operator reserves the right to assert any and all legal defenses to minimize its liability.
GOVERNING LAW AND DISPUTE RESOLUTION
Governing Law:
These Terms shall be governed by and construed in accordance with the laws of the Cayman Islands, without regard to its conflict of law provisions. Any dispute arising from or related to these Terms, including questions regarding their existence, validity, or termination, shall be resolved through arbitration in accordance with the provisions of this section. For the avoidance of doubt, matters of procedural law applicable to the arbitration shall be governed by the law of the seat of arbitration (England and Wales).
Amicable Dispute Resolution:
In the event of a dispute arising from or relating to these Terms, the parties agree to resolve the dispute through the following process:
Negotiation: The parties shall attempt to resolve the dispute amicably through good-faith negotiations.
Mediation: If the dispute cannot be resolved through negotiation, it shall be referred to mediation administered by a mutually agreed-upon mediator.
Arbitration: The arbitration shall be conducted as follows:
Number of Arbitrators: The arbitration shall be conducted by a single arbitrator appointed in accordance with the LCIA London Court rules of International Arbitration.
Seat of Arbitration: The seat of arbitration shall be London, United Kingdom.
Conduct of Proceedings: The arbitration proceedings shall be conducted entirely online via email communications and web conferences, unless the parties agree otherwise in writing.
Language: The language of the arbitration shall be English.
Confidentiality: The arbitration proceedings, including all submissions, evidence, and decisions, shall be kept strictly confidential by the parties and the arbitrator.
Allocation of Costs The costs of arbitration shall be initially borne equally by the parties, subject to reallocation by the arbitrator in the final award, including but not limited to:
Arbitrator Fees: The fees and expenses of the arbitrator.
Administrative Fees: Fees charged by the Swiss Rules of International Arbitration.
Other Costs: Any other costs incurred during the arbitration process. The arbitrator may, at their discretion, reallocate the costs of arbitration between the parties in the final Arbitral Award. However, each party shall be responsible for its own legal fees, consultant fees, expert fees, and other expenses incurred in connection with the arbitration, regardless of the outcome of the proceedings.
Class Action Waiver: Users agree that any disputes with the Platform Operator shall be resolved on an individual basis and not as part of any class action or representative proceeding.
No Limitation of Provisional Relief Nothing in this section shall be construed as limiting the right of either party to seek provisional relief or Interim Measures from a court of competent jurisdiction to preserve the status quo or protect against imminent harm, pending the outcome of the arbitration.
Jurisdiction In the event that any claim is not subject to arbitration under applicable law, such claim shall be submitted to the exclusive jurisdiction of the courts of the Cayman Islands sitting in George Town, Grand Cayman.
AMENDMENTS TO THE TERMS The Platform Operator reserves the right to amend, modify, update, or replace these Terms at any time to reflect changes in business practices, legal or regulatory requirements, technological advancements, or other relevant factors. Such amendments shall become effective upon publication of the updated Terms through the User Interface or another official communication channel designated by the Platform Operator.
Notification of Amendments The Platform Operator will notify Users of any material amendments to these Terms by posting a notice on the User Interface.
User Responsibility to Stay Informed It is the User’s responsibility to regularly review the Terms to stay informed of any amendments. The most current version of the Terms will always be accessible through a link on the User Interface. Users acknowledge that by continuing to access or use the Platform after the publication of amended Terms, they agree to be bound by the updated Terms. If a User does not agree with any amendment, they must:
Immediately discontinue use of the Platform; and
Cease all interactions with the Platform’s Smart Contracts. Failure to cease use of the Platform after the publication of amendments constitutes acceptance of the amended Terms.
No Retroactive Amendments Amendments to these Terms shall not apply retroactively. Any transactions conducted on the Platform prior to the effective date of an amendment will be governed by the version of the Terms in effect at the time the transaction was initiated.
Future Products and Markets The Platform Operator may introduce additional product primitives or Markets (including but not limited to new lending pools, collateral types, or structured products). Unless expressly stated otherwise, such features shall be governed by these Terms upon publication of an updated notice on the User Interface. This includes the future expansion of the Perp DEX to cover additional asset categories such as cryptocurrencies, commodities, or synthetic indices, each governed by these Terms and subject to the applicable parameters published on the Platform.
Severability of Amendments If any amendment to these Terms is found to be invalid, unlawful, or unenforceable by a court of competent jurisdiction or through arbitration, the remaining provisions of these Terms shall remain in full force and effect.
INTELLECTUAL PROPERTY RIGHTS
Ownership:
The Platform Operator retains all intellectual property rights related to the Platform Operator Materials, including but not limited to its design, content, software, trademarks, and underlying technology.
Users may not copy, modify, distribute, sell, or lease any part of the Platform’s intellectual property without the express written permission of the Platform Operator.
License to Use:
Subject to compliance with these Terms, the Platform Operator grants Users a limited, non-exclusive, non-transferable, revocable license to access and use the Platform in compliance with these Terms.
This license does not grant Users any rights to:
Use the Platform for unauthorised purposes;
Reverse-engineer, decompile, or attempt to extract the source code of the Platform;
Use the Platform in any manner that infringes on the Platform Operator’s intellectual property rights.
User-Generated Content:
Users may upload, submit, or share content on the Platform, such as reviews or comments. By doing so, Users grant the Platform Operator a worldwide, non-exclusive, royalty-free license to use, reproduce, and distribute such content for the operation of the Platform.
Users may from time to time provide us with feedback about their experience on the Platform, recommendations for modifications, or other ideas pertaining to the Platform Operator Materials (collectively, “Feedback”). Users acknowledge and agree that the Platform Operator may use the Feedback in their business without restriction. All such Feedback will be considered non-confidential and non-proprietary. By providing any Feedback, Users grant the Platform Operator and their vendors, and each of their respective licensees, successors, and assigns a perpetual, irrevocable, non-exclusive, worldwide, fully paid up and royalty free right and license to use, reproduce, modify, perform, display, distribute, and otherwise disclose to third parties any such material for any purpose.
Users represent and warrant that they have the necessary rights to provide such content and that it does not infringe on any third-party intellectual property rights.
Reporting Infringements:
If a User believes that their intellectual property rights have been infringed upon by any content on the Platform, they may submit a written notice to the Platform Operator at the designated contact address. The notice must include:
A detailed description of the alleged infringement;
Identification of the copyrighted work or trademark claimed to have been infringed;
Contact information of the complaining party.
The Platform Operator will review such claims and take action in its discretion, including content removal and/or account suspension.
Consequences of Violation:
Any unauthorised use of the Platform Operator’s intellectual property or violation of this chapter will result in the User automatically losing the right to use the Platform, and may also result in:
Legal action to enforce intellectual property rights;
Compensation claims for damages incurred by the Platform Operator.
TERMINATION AND SUSPENSION
Termination by User:
Users may terminate their access to the Platform at any time by ceasing to use the services and disconnecting their blockchain wallet. Termination does not relieve the User of any obligations incurred prior to the termination date.
Termination by Platform Operator:
The Platform Operator may suspend or terminate a User’s access to the Platform or any portion thereof without prior notice in its discretion, including if:
The User violates these Terms;
The User engages in fraudulent or illegal activities;
Required by applicable law or regulatory authorities;
The security, integrity, or operation of the Platform is threatened.
Effect of Termination:
Upon termination, the User’s access to all Platform services will be revoked. The User acknowledges that termination of UI access does not affect Smart Contract positions, and the Platform Operator has no control over on-chain rewards, balances, or pending transactions and that the Platform Operator holds no liability for any losses incurred.
Reinstatement:
Users whose accounts have been suspended or terminated may submit a written request for reinstatement. The Platform Operator reserves the right to reinstate access at its sole discretion and may impose conditions for reinstatement.
MISCELLANEOUS PROVISIONS
Entire Agreement:
These Terms constitute the entire agreement between the User and the Platform Operator regarding the use of the Platform. They supersede all prior or contemporaneous communications, representations, or agreements, whether oral or written, relating to the subject matter of these Terms.
No oral or written statements or representations not expressly included in these Terms shall be binding on either party.
Assignment:
The Platform Operator may assign or transfer its rights and obligations under these Terms without the prior consent of the User, including in connection with a merger, acquisition, or sale of assets. Users may not assign or transfer their rights or obligations under these Terms without the prior written consent of the Platform Operator. Any attempted assignment or transfer without such consent shall be void and of no effect.
Notices
All notices or communications required under these Terms must be delivered in writing to the Platform Operator at the contact information provided on the User Interface or through other official communication channels specified by the Platform Operator.
Notices to Users may be delivered via the User Interface, through notifications or updates posted on the Platform. Users are responsible for regularly checking the User Interface for notices from the Platform Operator.
Survival:
All provisions that by their nature should survive termination of these Terms shall survive, including, but not limited to, intellectual property rights, disclaimers, indemnity, and limitations of liability.
Force Majeure:
The Platform Operator shall not be liable for any failure or delay in performing its obligations under these Terms due to events beyond its reasonable control, including but not limited to natural disasters, acts of government, war, cyberattacks, and technical failures.
No Partnership or Agency:
Nothing in these Terms shall be construed to create a partnership, joint venture, or agency relationship between the User and the Platform Operator. Each party acts as an independent entity, and neither party has the authority to bind or obligate the other in any manner.
Survival of Provisions: The following provisions shall survive the termination of these Terms and the User’s access to the Platform:
Section 9: User Obligations and Responsibilities
Section 10: User Acknowledgments
Section 11: Risk Disclosure
Section 12: Limitation of Liability
Section 13: Indemnification
Section 14: Governing Law and Dispute Resolution
Section 16: Intellectual-Property Rights
Section 18: Miscellaneous
These provisions shall remain effective to the extent necessary to enforce rights and obligations that arose prior to termination or to address ongoing responsibilities.
Interpretation The headings and section titles used in these Terms are for convenience only and do not affect the interpretation or meaning of the provisions. Any ambiguities or uncertainties in the language of these Terms shall not be construed against the drafter.
Language These Terms are drafted in the English language. If these Terms are translated into another language, the English version shall prevail in the event of any discrepancies or conflicts.
No Third-Party Beneficiaries These Terms are for the sole benefit of the User and the Platform Operator. No third party shall have any rights to enforce any provision of these Terms, except where expressly stated otherwise.
USER PRIVACY AND DATA SECURITY
Data Collection and Use:
The Platform Operator is committed to protecting the privacy of its Users. By using the Platform, Users acknowledge and consent to the collection and use of certain data, including but not limited to:
Blockchain wallet addresses;
Transaction history and interactions within the Platform;
Aggregated usage data to improve Platform functionality.
User Responsibilities:
Users acknowledge and agree that they are responsible for safeguarding their personal data and blockchain credentials. Users must:
Use secure methods to store private keys and recovery phrases;
Avoid sharing sensitive information with unauthorised parties;
Regularly review their security settings.
The Platform Operator is not responsible for any unauthorised access resulting from the User’s failure to secure their personal information.
Third-Party Services:
The Platform may integrate with third-party services that have their own privacy policies. Users acknowledge and agree that the Platform Operator does not control and is not responsible for the privacy practices of such third-party services. Users should review third-party policies before engaging with them.
Data Retention:
The Platform Operator retains collected data only for as long as necessary to fulfil the purposes outlined in these Terms or as required by Applicable Laws. Data may be deleted or anonymised after the retention period expires.
User Rights:
Users may have the following rights regarding their data, subject to Applicable Laws and their jurisdiction of residence:
The right to access their personal data collected by the Platform;
The right to request correction or deletion of inaccurate or incomplete data;
The right to withdraw consent for data processing, where applicable.
Requests to exercise these rights should be submitted through official support channels provided by the Platform Operator.
Data Security Measures:
The Platform Operator implements security measures intended to protect user data, including encryption, secure storage solutions, and access controls. However, Users acknowledge that no system is entirely immune to security breaches.
Cross-Border Data Transfers:
By using the Platform, Users consent to their data being transferred and processed in jurisdictions that may have different data protection standards than their home country.
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