Staking Product Agreement
This Staking Product Agreement (the "Agreement") is made between you (Name:[]; BIT Platform Account No.: []) (“You”, or the "User") and [Smart Vega Holding Limited] (“We” or the “Company”) (collectively, the "Parties" and each, a "Party"). This Agreement sets out the terms and conditions in respect of the staking product provided by us or our affiliate (the "Staking Product").
By clicking "[Agreed]" you agree that you have read, understood and accepted this Agreement, the BIT platform User Agreement (https://www.bit.com/userAgreement) (the “User Agreement”) and our privacy policy (available at https://www.bit.com/privacyPolicy) (the “Privacy Policy”). If you have any questions about the Staking Product and/or this Agreement, please contact our customer service by email at [[email protected]].
Section 1. Definitions
“Lock-up Period” means a period of time when the digital assets staked cannot be traded, transferred or otherwise accessed.
“Staking Rewards” or “Rewards” means a portion of rewards in digital assets that may be generated on the amount of digital assets you staked.
“Shanghai” means a planned upgrade of the blockchain as described here - https://ethereum.org/en/upgrades/merge/.
“Slashing” means any slashing penalty assessed by the blockchain for a material failure to perform the Validation Services.
“Validator” means special nodes responsible for the provision of infrastructure as well as validating new blocks and appending them to the blockchain.
Section 2. Staking Product Information
Our Staking Product provides you with the option to stake some or all of your digital assets with one or more third-party platform(s)/protocol(s), with you retaining discretion (subject to this Agreement) with respect to the choice of digital assets to be staked and the platform(s)/protocol(s) involved. If you choose to stake your digital assets under the Staking Product, we or our affiliate will facilitate the staking of those digital assets on your behalf on the applicable network in accordance with your instructions, so far as reasonably practicable.
We may on your behalf, authorize third parties (e.g. P2P) to validate block of transactions and contribute resources to the network or performs other incentivised activities on the relevant network. Such successful validations and contributions may be rewarded with Staking Rewards by the relevant network.
Certain digital asset protocols offer stakers the ability to vote on matters related to the governance of protocol-level issues. We may or may not support voting and shall not be obliged to vote or to facilitate your vote in respect of digital assets staked under the Staking Product. Notwithstanding the foregoing, we shall be entitled to vote the digital assets staked by you on your behalf without obtaining your instructions or providing further notice to you.
We reserve the right to amend this Agreement (including the Rewards payable) without further notice to the User, and to suspend and/or terminate any ongoing Staking Products (including suspending withdrawals where required by applicable law or regulation or by a court, regulatory or supervisory authority having jurisdiction over us).
Section 3. Rights and Obligations of the User
The User shall be solely responsible for any applicable taxes and fees.
The User has read, understood and accepted the terms and conditions of this Agreement as well as the risks set out in the RISK DISCLOSURE which are deemed to be incorporated by reference herein.
The User hereby makes the representations and warranties set out in clause 2 (Account Registration) of the User Agreement.
The User shall bear the risk and costs of any loss of their digital assets arising from or in connection with the staking of the User’s assets with one or more third-party platform(s)/protocol(s), including any losses associated with Slashing, smart contract vulnerabilities, price volatility or liquidity issues. The User acknowledges that we shall not be responsible for any losses in connection with the foregoing.
Section 4. Rewards
Your Stating Reward will be determined by the relevant platform(s)/protocol(s) in relation to your digital asset that is staked. The Rewards rate that is displayed on the our platform is an estimate only and may change over time. The Rewards earned while staking your digital assets through us and which are attributable to your digital assets may remain locked on-chain until a certain event has taken place, such as successful validation or a successful network upgrade (e.g. Shanghai). The Rewards reflected in your account prior to such event are an estimate only and may not be actually accessible until the end of the Lock-up Period or the occurrence of such event. We have no control over the operations of the blockchain, including how the Staking Rewards are calculated, Slashed, or distributed. We do not guarantee that the digital assets you staked will ever generate any Staking Rewards and that any of them will have any market value of secondary market.
You have no right to a reward attributable to your digital assets until it is actually received by us. We will distribute the Rewards to you after receipt by us, after deducting the following:
Platform slippage (including third-party platforms onto which the digital asset is staked or where Rewards are sold or converted).
Mining fees (if any).
Slashing fees (if any).
Transaction and other third-party service fees.
You hereby irrevocably authorise and instruct us, our affiliates and/or the third-party platform (as applicable) to:
Channel your staked digital assets onto the platform(s)/protocol(s) of your choice;
(If applicable) Convert your digital assets into third-party tokens (e.g. stETH) issued by the third-party platform (if any) in connection with the staking activity, and vice versa;
(If applicable) Deposit any third-party tokens (e.g.stETH) received into the relevant Defi platform(s)/protocol(s) displayed on our platform;
Realise or convert the third-party tokens or Rewards received by us in connection with the staking and/or Defi activity. You acknowledge that we shall have sole and absolute discretion on the exchange or other third-party service that we may use to effect for such authorised sale or conversion.
We are not responsible for any depreciation of your staked digital asset. The trading prices of many digital assets have experienced extreme volatility in recent periods and may continue to do so. You understand as a result of these price fluctuations, you could lose a substantial portion or all of the digital assets you staked on a U.S. dollar basis.
The product page of certain staking products may show the Staking Rewards (and the digital assets available for staking) of such staking product may be further utilized by us and our affiliates to engage in certain transactions (such as advancing collateralized loans, margin loans and other loans) with the intention to generate a higher yield for you. If you agree to purchase such staking products, you understand such transactions are subject to third-party credit risks, market risks, legal and regulatory risks, etc. and which may cause us unable to receive yield and even lose the Staking Rewards (or other digital assets) invested. You agree you are taking the risks of losing the Staking Rewards (or other digital assets) if you agree to purchase such type of staking product.
Section 5. Withdrawals
Certain digital asset platform(s)/protocol(s) require that a certain amount of staked digital assets be restricted from sale or transfer (i.e. locked) for a certain period of time while staking. We may also impose additional Lock-up Periods on the Staking Product (as displayed on the product page).
If you choose a Fixed Staking product, you will not be able to withdraw the staked digital assets until after the applicable Lock-up Period. If you choose a Flexi Staking product, you will be able to withdraw your staked digital assets at any time (subject to the Company’s system withdrawal rules). However, under extreme market conditions such as volatile price movements, an unpredicted large volume of withdrawal requests may be submitted to our platform. This may affect the normal use of our platform and we may set certain limits on your withdrawal requests.
Section 6. Digital asset-specific terms and conditions
Ethereum Staking
If you choose to stake your ETH into a Fixed Staking product, your ETH will become locked on the Ethereum protocol until the agreed Ethereum network upgrade is completed. We have no control over the duration of the Lock-up Period, which will ultimately be determined by the success of the update to the Ethereum network. You will be unable to opt out of ETH staking once you have staked your ETH into Fixed Staking. You will not be able to trade, transfer or otherwise access your staked ETH or ETH Staking Rewards during the Lock-up Period.
We make no guarantees that the upgrade(s) in respect of the Ethereum network will be successful. If the network upgrade ultimately fails, you may lose all, or a portion of, your staked ETH. We will not be responsible for any ETH lost due to a network upgrade failure, and shall not be subject to any obligation to replace any ETH you may lose.
Staking ETH means your staked assets can be subject to “Slashing” by the Ethereum network if the transaction Validator representing those assets incorrectly validates a transaction. We will use commercially reasonable efforts to protect against Slashing incidents but has no control over the behaviour of the third-party platform(s)/protocol(s).
ETH 2.0 Product
Please refer to the product page for the rules and information of the product. Specifically, the product's return is composed of:
The annualized return (if any) obtained from staking ETH to project platforms (such as lido finance (lido.fi), Balancer (balancer.fi), Anchor (anchorprotocol.com) and CURVE (curve.fi), etc.);
Mining rewards (if any) obtained from staking the liquidity governance token provided by the project platform (such as stETH, obtained from staking ETH at lido.fi) to the project platform; and
Fee income (if any) obtained through the mining process described in sub-section (ii) above.
The expiration date of the product is the date when the ETH 2.0 upgrade is completed, and the exact date when the upgrade is completed shall refer to the official notice from the Ethereum development team (https://ethereum.org/en/eth2). You understand that we are not able to exercise any control over the ETH 2.0 upgrade, and we do not make any commitments regarding if such upgrade will eventually happen.
Starting from the effective date of this Agreement, you can submit a redemption request once a month, and the redemption amount should be calculated by subtracting the various fees mentioned in Section 4.2 of this Agreement from the net value displayed on the product page for the current month. The specific calculation method is subject to the rules displayed on the product page. You hereby acknowledge and understand that ETH 2.0 products are long-term investment products. Once ETH is staking on the lido.fi platform and replaced with stETH, it cannot be redeemed at 1:1. Early redemption can only be done through https:// The curve.fi/steth where allows discounted redemption, so early redemption may result in a loss of your investment principal.
Leveraged Staking Product
If you choose to purchase leveraged staking products, then we will borrow digital assets and stake those borrowed assets on your behalf. We will do this recursively until the relevant leverage ratio is achieved. We shall have the right to monitor and adjust the leverage ratio of your account.
You understand that the rate of return displayed on our platform is an estimate only and will change over time. For example, when the Staking Rewards and borrowing costs change, the overall rate of return may change accordingly.
You hereby irrevocably authorise and instruct us, our affiliates and/or the third-party platform (as applicable) to:
Channel your staked digital assets (such as ETH) to a third-party staking platform of your choice (such as Lido), and convert your digital assets into third-party tokens issued by the staking platform for staking activities (such as stETH) and vice versa.
Deposit the converted third-party tokens (such as stETH) into the relevant Defi platform/protocol disclosed on our platform, and use it as collateral (the “Collateral”) to borrow more digital assets (the “Borrowed Assets”) from the Defi platform/protocol;
Carry out further staking, conversion and borrowing as described in sub-sections (i) and (ii), until the leverage ratio disclosed on our platform is achieved.
You understand that before we distribute the return it has received to you, in addition to deducting the fees mentioned in Section 4.2 of this Agreement, we shall also have the right to deduct the borrowing cost.
You understand that the price of tokens (such as stETH) issued by the staking platform relative to the underlying digital assets (such as ETH) may fluctuate, and such fluctuations may result in the loss caused by collateral being liquidated. You understand that we shall not be liable for such losses.
Section 7. Governing Law and Jurisdiction
The execution, performance, termination and interpretation of this Agreement shall be governed by the laws of Seychelles.
In the event you and us are unable to settle a dispute regarding this Agreement, such dispute shall be exclusively submitted to the competent Court of Seychelles.
Section 8. Miscellaneous
Any notice, consent or other communication required or permitted hereunder shall be in writing and shall be deemed to have been duly given at the time it is sent by us via our platform or via email.
The Parties agree that the User’s acceptance or signature may be made and delivered electronically, whether digitally or otherwise (including where the User clicks “[Agreed]” on our Platform) and this method of execution or signing shall have the same legal validity and enforceability as a manually executed signature and the Agreement shall be effective and binding on all Parties.
Should any part of this Agreement be determined to be illegal, invalid or unenforceable, such determination shall not affect the remaining part of this Agreement.
The English language version of this Agreement shall prevail over its translations