FUNDSLaunch protocol ↗

First draft, for legal review. Nothing here is final until a lawyer has reviewed it.

Legal

Terms of use.

These terms apply when you use the FUNDS website and app. By using them, you agree to these terms. Please read them together with the Risk disclosure.

Last updated: [TBC: date]

1. Who we are

FUNDS is provided by [TBC: legal entity name], registered in [TBC: country]. In these terms, “we” and “the FUNDS operator” mean that company and the service it runs.

2. Who may use FUNDS

[TBC: who may use the service, including any minimum age and any countries where FUNDS is not available.] You may use FUNDS only where it is legal for you to do so.

3. What FUNDS does

FUNDS lets you mint and redeem a coin designed to hold 1 USD, backed by digital assets held in one public vault.

  • Mint: you send collateral token and get 1 FUNDS for every 1 USD worth of collateral tokens, minus a fee.
  • Redeem: you send FUNDS back and get 1 USD worth of collateral tokens for every FUNDS, minus a fee, while the vault has it.

All FUNDS is created in advance and held by the protocol. Minting releases it to you, and redeeming takes it back.

4. How requests work

Every mint or redeem is a request with its own ID. A request starts when you send tokens through the app. It ends when you are paid, when your tokens are sent back, or when it expires because no tokens arrived in time.

You must use the app to send tokens. The app adds a note that links each transaction to your request. Tokens sent any other way can't be matched automatically and wait for manual review. [TBC: time limits and any charges for manual review]

5. Prices and your minimum

Minting uses the lower of the live collateral token price and its recent average. Redeeming uses the higher of the two. If the price is too old, or the two differ by too much, minting and redeeming pause.

Every request carries a minimum that you choose. If the result would be lower than your minimum, your tokens are sent back.

6. Fees

A fee applies to every mint and every redeem, currently …. It is paid to the FUNDS treasury and shown before you confirm. We may change the fee. [TBC: notice given before fee changes]

Network fees are separate. You pay them from your own wallet.

7. Partial redemptions

Redemptions are paid first come, first served. If the vault can't cover your whole request, it pays what it has and sends the rest of your FUNDS back to you.

8. Refunds

If a request can't be completed, for example because the price moved past your minimum, your tokens are sent back. [TBC: which wallet refunds go to, and whether network fees are refunded]

9. Pauses and changes

We may pause minting, redeeming or the whole service, and change settings such as the fee, the price rules and the treasury wallet. [TBC: notice, if any, before pauses and changes]

10. What we are responsible for

We run the service that watches the vault, processes requests and sends payouts, following the rules described on the How it works page. We publish the vault address and show vault health live in the app. [TBC: limits of our responsibility]

11. What we are not responsible for

[TBC: legal to confirm.] Suggested scope: your wallet and its security; tokens sent to a wrong address; losses from changes in the collateral token price; outages or delays on the network; and third party wallets and websites such as blockchain explorers.

12. Your responsibilities

  • Keep your wallet, recovery phrase and private key secure.
  • Use the app for every mint and redeem.
  • Follow the laws that apply to you.
  • Don't use FUNDS for anything illegal, and don't try to disrupt or misuse the service.

13. Changes to these terms

We may update these terms. When we do, we will post the new version here with a new date. [TBC: how users are told about changes]

14. Governing law

[TBC: governing law and where disputes are heard]

15. Contact

[TBC: support channels]