Neutral Chain Split Token contract for Bitfinex

Terms and Conditions for Chain Split Tokens

These terms and conditions (these “T+Cs”) govern your use and exchange of Chain Split Tokens (as defined below) on the Site. You should read these T+Cs carefully. The Site’s Terms of Service continue to apply to all Site users; these T+Cs are in addition to, and supplement, and not in substitution of, the Terms of Service. The Terms of Service are available here. By using any CSTs on the Site in any manner from time to time, you agree to these T+Cs and, for the avoidance of any doubt, to the Terms of Service.

These T+Cs may be amended, changed, or updated by Bitfinex at any time and without prior notice to you. You should check back often to confirm that your copy and understanding of these T+Cs is current and correct. Your non-termination or continued use of any Services after the effective date of any amendments, changes, or updates constitutes your acceptance of these Terms of Service, as modified by such amendments, changes, or updates.

The use of, ownership of, and trading in any Chain Split Token (as defined below) is void where prohibited by applicable law.

1. Definitions: In these T+Cs, the following words have the following meanings unless otherwise indicated:

1.1 “CST” means a Chain Split Token, which are Digital Tokens designed to facilitate trading on the value of incompatible ledger units associated with a potential, contingent, and non-guaranteed forking event on the Bitcoin blockchain;

1.2 An “Excessive Block” is any block with a base size exceeding 1 MB;

1.3 “BTC-S” (“Bitcoin-Small”) is a CST representing a chain whose base blocks do not exceed 1 MB;

1.4 “BTC-L” (“Bitcoin-Large”) is a CST representing a chain containing Excessive Blocks;

1.6 The “Contract Period” starts on March 17, 2017 and ends at Contract Settlement;

1.7 A “Contract Extension” is an announcement which may be issued by Bitfinex on the Site at any time before settlement in order to extend the Contract Period;

1.8 The “Chain Split Event” occurs when a chain contains an Excessive Block with 100 block confirmations, represented by the UTC date & time of the first Excessive Block in this chain, only if this chain’s mining algorithm and difficulty have not been altered from the existing Bitcoin consensus parameters;

1.9 The “Contract Expiration” means the later of 11:59:59 pm UTC on March 17, 2018 or one year after the latest Contract Extension;

1.10 The “Contract Settlement” means the earlier of the Chain Split Event or Contract Expiration, as set out in these T+Cs; and,

1.11 “T+Cs” means these terms and conditions governing the use and exchange of CSTs on the Site.

Other terms not expressly defined in these T+Cs have the meanings set out in the Terms of Service.

2. Exchange & Trade: You may exchange bitcoins for BTC-S and BTC-L using the Site’s token manager platform until immediately before Contract Settlement. The rate available for exchange is 1 BTC-S + 1 BTC-L for each bitcoin. You may also redeem BTC-S and BTC-L for bitcoins using the Site’s token manager platform until immediately before Contract Settlement. The rate available for redemptions is 1 bitcoin for 1 BTC-S + 1 BTC-L. You may trade CSTs on the Site during the Contract Period in five market pairs: BTC-L/BTC-S, BTC-S/USD, BTC-L/USD, BTC-S/BTC, and BTC-L/BTC.

3. Settlement — Chain Split Event: At the Chain Split Event, CSTs shall be converted on a 1:1 basis to Digital Tokens on their respective blockchains, as set out in these T+Cs.

4. Settlement — Expiration: In the event that no Chain Split Event occurs within the Contract Period, BTC-S and BTC-L will be deemed to have a value equal to zero and shall be confiscated and destroyed by Bitfinex.

Important: Settlement of any BTC-S or BTC-L may be delayed in Bitfinex’s sole and absolute discretion. If, after the Chain Split Event, the blockchain represented by either CST is destroyed or experiences an unresolvable technical malfunction, in any manner and by any party or source, the CST of that problematic blockchain shall be deemed to have a value equal to zero and shall be confiscated and destroyed by Bitfinex.

5. No Representations & Warranties by Bitfinex: Bitfinex makes no representations, warranties, or guarantees to you of any kind. All CSTs, all software, and all blockchains are offered strictly on an as-is, where-is basis and, without limiting the generality of the foregoing, are offered without any representation as to merchantability or fitness for any particular purpose.

6. Limitation of Liability & Release: Important: Bitfinex assumes no liability or responsibility for and shall have no liability or responsibility for any Losses directly or indirectly arising out of or related to your use of or trading in one or more CSTs and the use of any one or more blockchains, including but not limited to either blockchain after the Chain Split Event. You hereby agree to release the Associates from liability for any and all Losses, and you shall indemnify and save and hold the Associates harmless from and against all Losses. The foregoing limitations of liability shall apply whether the alleged liability or Losses are based on contract, negligence, tort, unjust enrichment, strict liability, or any other basis, even if the Associates have been advised of or should have known of the possibility of such losses and damages, and without regard to the success or effectiveness of any other remedies.

7. Post-Contract Settlement: After Contract Settlement, Bitfinex may or may not list BTC-S or BTC-L for trading, if they exist, on the Site, in its sole and absolute discretion. At any time after Contract Settlement, Bitfinex may assign the label “BTC” to either BTC-S or BTC-L, relabeling these tokens as bitcoins.