KriptoEarn Staking Services

Introduction

KriptoEarn is a blockchain staking solution, a simplified technical interface to staking functionality on individual protocols. KriptoEarn Staking Services (KriptoEarn Services) are available for Virtual Currencies that are transferred in a Proof of Stake network and for which we provide off-chain staking protocol support (Qualified Virtual Currencies). Qualified Virtual Currencies and their staking properties are displayed in the KriptoEarn interface.

KriptoEarn Services enable our clients to put their virtual currencies into practical use by using our blockchain staking solution, and in exchange earn cryptocurrency rewards as a form of passive income. 

Only Kriptomat Platform users are eligible to use the KriptoEarn Services, and this Annex C is interpreted and understood as part of and subject to  Kriptomat’s Terms of Service and Privacy Policy, governing the use of KriptoEarn Services. In the event that the provisions of the general Terms of Service and this Annex C differ, the provisions of this Annex shall prevail within the framework of the KriptoEarn. 

KriptoEarn is provided solely for use by you, and your use of the Services is expressly conditioned on your consent to, and compliance with, this Annex. By accessing or using your KriptoEarn Services you accept and agree to comply with this Annex and any other applicable conditions communicated to you through the KriptoEarn interface from time to time. If you do not agree to any of the provisions of this Annex you should immediately stop using the KriptoEarn Service. 

Be advised that in some jurisdictions, due to regulatory considerations, Kriptomat may not provide part or all of the KriptoEarn Services.

Due to changing regulatory requirements and interpretations in the cryptocurrency markets, Kriptomat will use its sole and absolute discretion to limit or disable the Earn Services if determined that regulatory or policy reasons prevent Kriptomat from being able to offer KriptoEarn Services in whole or for individual markets.

Important notice: We reserve our right to change, cancel, suspend, or modify any aspect of the Earn Terms at any time and at our sole and absolute discretion, taking into account the User’s benefits and rewards earned. You agree it is your responsibility to follow and review any such changes. We will notify you of any changes via our webpage or KriptoEarn interface becoming effective on the day of their publication. It shall be considered that you agree with the changed Terms if you continue to use the KriptoEarn Services after the changes become effective. 

When you confirm these Terms and initiate KriptoEarn Services you authorize us to use your Qualified Virtual Currencies for Staking purposes on your behalf. At all times you remain sole owner of the Qualified Virtual Currencies.

UNDER NO CIRCUMSTANCES OUR KriptoEarn SERVICES APPLY TO, INCORPORATE, AND/OR INCLUDE FIAT MONEY. EARN SERVICES APPLY SOLELY TO VIRTUAL CURRENCIES, SUBJECT TO QUALIFIED VIRTUAL CURRENCIES. 

Your Earn Account is not a bank account, deposit account, savings account, checking account, or any other type of asset account and should not be characterized, understood, considered, or interpreted as a banking product or service. KriptoEarn does not represent and cannot be interpreted as an investment program, or a speculative tool. 

Definitions

Capitalized terms shall have the meanings assigned to them in these Terms.

“(User) Earn Account” or “(Kriptomat) Earn Account” means a User’s sub-account within their Kriptomat account on the Kriptomat Platform, allowing a User to access and use the KriptoEarn Services. The Earn account is generated when the User activates KriptoEarn Services within their Kriptomat Account. 

“Earn Balance” means a balance on the User’s Kriptomat Earn Account. 

“Earn Deposit” means the balance of Qualified Virtual Currencies that the User deposits in its Earn Account transferred from their Kriptomat wallet to be further used for staking. 

“Earn Deposit Period” means the time period during which the Earn Deposit is available in User’s Earn Account to be put to use for staking. The Earn Deposit Period starts with the deposition of Qualified Virtual Currency in your Earn Account, and terminates with your withdrawal to your Kriptomat account (opting out from Earn Service) subject to limitations and withdrawal bound periods as indicated in the KriptoEarn interface. 

“KriptoEarn Services” or “KriptoEarn” is a trademark name under which Kriptomat offers its blockchain staking solution, available as a special section on the Kriptomat platform and Kriptomat Account. KriptoEarn is a simplified technical interface to staking functionality on individual protocols. 

“Kriptomat Earn Balance” means a sum of Earn Deposit and cryptocurrency assets received as a reward for using the Earn Deposit for KriptoEarn Services. 

“Qualified Virtual Currencies” means the Virtual Currencies for which we offer staking services.

“Staking” means a consensus protocol of active participation in transaction validation on a Proof of Staking blockchain. 

KriptoEarn

KriptoEarn is your user-friendly technical interface through which you can participate in Staking on individual protocols. The user can see the approximate reward values for staking-supported assets within the Earn Account interface. These rewards are solely approximate and provided for informative purposes only, and may change at any time.

KriptoEarn interface provides information on the Qualified Virtual Currencies and related important properties of the staking protocol for each of them:

• estimation of the award (in %)
• Timeline of depositing Qualified Virtual Currencies to the protocol
• Reward accrue start date
• The reward awarding schedule 
• Deposit withdrawal bounding period 
• Reward withdrawal period. 

The user decides on the amount of the Qualified Virtual Currency he wishes to include in the KriptoEarn. Within the KriptoEarn all user’s instructions for staking are gathered and broadcasted to the blockchain for staking purposes. The virtual currency remains within Kriptomat’s custody or within Kriptomat’s management (private keys are kept in our custody). When the reward is deposited as well as the actual value of it depends on the technicalities pertaining to each protocol and staking solution, and the rewards are recieved from the blockchain and distributed among the users. The user can collect (withdraw) the staking rewards together with the KriptoEarn deposit subject to the withdrawal bounding period as indicated in the KriptoEarn interface.  

Important notice:  Different protocols entail different requirements and characteristics. Each protocol provides a reward for ensuring the security of the blockchain network (PoS). The rewards are dynamic and changeable over time. 

Each product within KriptoEarn has the following properties defined in the Kriptomat Account interface:

• Non-obligatory estimation of the award (in %)
• Timeline of depositing Qualified Virtual Currencies to the protocol
• Reward accrue start date
• The reward awarding schedule 
• Deposit withdrawal bounding periods 
• Reward withdrawal period. 

The timeline of deposits being broadcasted to the blockchain are subject to deposit periods as indicated in the Earn Account interface for each Qualified Virtual Currency, meaning that deposits to staking are not instantaneous but are subject to deposit periods. Deposit periods might differentiate from deposit periods defined by the blockchain protocol.

Your rewards are automatically added to your Earn Deposit, from which rewards are further distributed (compounding system), subject to protocol limitations. 

Earn Account

Your Earn Account allows you to access KriptoEarn Services and provides information on your Earn Balance and rewards. Importantly, you are solely responsible for the activities under your Earn Account, and we will in no case be liable for following any instructions (authorizations) we receive through your Earn Account. You will be required to actively confirm each transaction or action (eg. withdrawal, depositing virtual currency on your Earn Balance, and similar). By confirming certain actions within your Earn Account you authorize us to include your Qualified Virtual Currencies in KriptoEarn.

You may discontinue the use of KriptoEarn Services at any time either in full or partially, and request that Earn Deposit is transferred to your Kriptomat Account, together with any Rewards accrued, which shall be done in accordance with the characteristics of the applicable protocol as defined in the KriptoEarn interface.  

The withdrawals are subject to withdrawal bound periods as indicated in the Earn Account interface for each Qualified Virtual Currency, meaning that withdrawals are not instantaneous but are subject to withdrawal periods. Withdrawal periods might differentiate from withdrawal periods defined by the blockchain protocol.

Rewards

Our KriptoEarn Services allows you to earn an in-kind reward as payment for putting your Qualified Virtual Currencies into Staking. Kriptomat does not guarantee nor promise any Rewards as they are determined by the staking protocols. The Rewards may vary due to the technical parameters of the protocols for which your Qualified Virtual Currencies are used. 

The Rewards provided in the KriptoEarn interface are provided solely as an example of possible Rewards and may change at any time as determined by the protocols of the applicable network and similar.

Rewards will be payable in arrears and added to the principal Earn Deposit, and reflected in your Earn Account balance daily, weekly, and monthly, namely as indicated in the Earn Account interface depending on the Qualified Virtual Currency. All generated rewards on your Earn Deposit will be distributed to you. 

We will record the Rewards earned within Earn Account. Your Earn Account must be active on the date the Rewards are payable for you to receive the applicable Rewards. All Rewards will be added to your Account Earn balance in-kind.

If, at any time, for legal or other reasons, your Earn Account is suspended or frozen, Qualified Virtual Currencies connected to your Earn Account shall not be eligible to earn Rewards.

The Rewards may not be distributed or may be reduced in case of protocol/network malfunction. We hold no responsibility for such occurrences and you fully understand and accept this risk and the fact, that in such cases you might not receive any Reward. 

We shall charge a certain fee for using KriptoEarn Services, however, is calculated within the estimation of the reward percentage and is calculated from the actual distributed Reward. 

Withdrawals

Subject to these Terms, you have a  termination option on all Earn Deposits and demand complete or partial withdrawal of any Earn Deposit from your Earn Account balance at any time subject to bounding periods for particular Qualified Virtual Currency. 

A such withdrawal request will immediately result in the cessation of use of Earn Deposit in whole or in part subject to a bounding period, and you shall no longer accrue Rewards on the amount of withdrawn Earn Deposit as of the time of your deposit being withdrawn. 

Kriptomat initiates the withdrawal process immediately following a withdrawal request when possible; however, the bounding period applies as indicated in the Earn Account. 

For the avoidance of doubt, any repayment shall be in-kind (i.e. in the same type of Qualified Virtual Currency. 

Risk Disclosure

This Risk Disclosure complements risk disclosure in the Terms of Service. You should carefully read and make sure you fully understand Risk disclosure in the Risk Section of the Terms of Service. 

Smart contracts entail the risk of hacking which may lead to the complete loss of your assets. 

KRIPTOMAT IS NOT A BANK OR DEPOSITORY INSTITUTION, AND YOUR EARN ACCOUNT IS NOT A DEPOSIT ACCOUNT. QUALIFIED VIRTUAL CURRENCIES (EARN DEPOSIT) REPRESENTED IN YOUR EARN ACCOUNT ARE NOT INSURED BY ANY PRIVATE OR GOVERNMENTAL INSURANCE PLAN, AND ARE NOT COVERED BY ANY COMPENSATION SCHEME. YOUR EARN ACCOUNT DOES NOT CONSTITUTE AN INVESTMENT CONTRACT OR A SECURITY, IS NOT TRANSFERABLE, AND MAY NOT BE TRADED, EXCHANGED, OR SOLD TO ANY THIRD PARTY UNDER ANY CIRCUMSTANCES.

Limitation of Liability and Disclaimer of Warranty

Kriptomat shall in no event and under no circumstances be liable for absences of Rewards or Rewards not being distributed, regardless of the reasons, and for a timeline for adding your Qualified Virtual Currencies to the staking protocol,  the start of the staking, the bounding period or any withdrawal limitation, as all these depend on the staking protocol itself. 

Kriptomat shall in no event and under no circumstances be liable for any protocol hacks or cyber security incidents, even if you lose all your assets. Any and all IT and cyber security circumstances are considered vis major and Kriptomat cannot be held responsible for any such occurrence. 

KRIPTOEARN SERVICES ARE PROVIDED ON AN “AS IS” AND “AS AVAILABLE” BASIS WITHOUT ANY WARRANTY UNDER THESE TERMS AND TO THE EXTENT ALLOWED BY APPLICABLE LAW ALL EXPRESS OR IMPLIED CONDITIONS, REPRESENTATIONS, AND WARRANTIES INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTIES OR CONDITIONS OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, SATISFACTORY QUALITY, OR ARISING FROM A COURSE OF DEALING USAGE, OR TRADE PRACTICE, OR WARRANTY OF NON-INFRINGEMENT ARE DISCLAIMED. IN NO EVENT SHALL KRIPTOMAT, IT’S AFFILIATES AND SERVICE PROVIDERS, OR ANY OF THEIR RESPECTIVE OFFICERS, DIRECTORS, AGENTS, JOINT VENTURERS, EMPLOYEES, OR REPRESENTATIVES, BE LIABLE FOR ANY AMOUNT GREATER THAN THE VALUE OF THE BALANCE OF YOUR EARN ACCOUNT; AND IN NO EVENT THEY SHALL BE LIABLE FOR ANY LOST PROFITS, DIMINUTION IN VALUE OR BUSINESS OPPORTUNITY, ANY LOSS, DAMAGE, CORRUPTION OR BREACH OF DATA OR ANY OTHER INTANGIBLE PROPERTY OR ANY SPECIAL, INCIDENTAL, INDIRECT, INTANGIBLE, OR CONSEQUENTIAL DAMAGES, WHETHER BASED IN CONTRACT, TORT, NEGLIGENCE, STRICT LIABILITY, OR OTHERWISE, ARISING OUT OF OR IN CONNECTION WITH AUTHORIZED OR UNAUTHORIZED USE OF THE KRIPTOEARN SERVICES OR THE KRIPTOMAT  EARN ACCOUNT, OR THESE TERMS, EVEN IF AN AUTHORIZED REPRESENTATIVE OF KRIPTOMAT HAS BEEN ADVISED OF OR KNEW OR SHOULD HAVE KNOWN OF THE POSSIBILITY OF SUCH DAMAGES (COMPLETE EXCLUSION OF LIABILITY).

KRIPTOMAT WILL MAKE REASONABLE EFFORTS TO ENSURE THAT REQUESTS FOR TRANSACTIONS ARE PROCESSED IN A TIMELY MANNER BUT KRIPTOMAT MAKES NO REPRESENTATIONS OR WARRANTIES REGARDING THE AMOUNT OF TIME NEEDED TO COMPLETE PROCESSING (WHICH IS DEPENDENT UPON MANY FACTORS, INCLUDING THOSE OUTSIDE OF OUR CONTROL), AND KRIPTOMAT SHALL NOT BE LIABLE FOR ANY LOSSES OR DAMAGES WHICH YOU MAY INCUR AS A RESULT OF ANY DELAY IN THE PROVISION OF THE SERVICES.

Version 4.0

26 April 2023