Terms of use
These "Terms of Use" govern your interaction with the Hats Protocol, a decentralized protocol on the Ethereum blockchain. The Protocol aims to incentivize security professionals/auditors with funds sourced from various projects and their token holders. These Terms serve as a multiparty agreement between you and all other parties involved with the Protocol. This includes (i) code contributors, (ii) users (depositors of cryptocurrencies), (iii) vault committee members, and (iv) security professionals/auditors.
Be sure to read these terms thoroughly, especially all disclaimers and risk factors, before engaging with the Protocol. Your use of the Protocol signifies your irreversible consent to abide by these terms. If you disagree with any part of these terms, refrain from using the Protocol. Your ability to use the Protocol depends on your acceptance of all these terms, which will be evidenced by your use of the Protocol.
Minors Prohibited
If you are under the age of eighteen or under the legal age in your jurisdiction, you are not permitted to access or use the Protocol. Your use of the Protocol is an affirmation that you are of the required age.
Arbitration
Be aware that these terms, including an Agreement to Arbitrate, govern how any claims you might have in connection with the Protocol, its use, or these terms are resolved. This agreement will necessitate both parties to submit any claims to binding and final arbitration. As per the Agreement to Arbitrate, both parties can only (1) pursue claims individually, not as a plaintiff or class member in any collective action or proceeding, and (2) seek relief (like monetary, injunctive, or declaratory) on an individual basis.
The Protocol
The Protocol is a self-governing decentralized system on the Ethereum blockchain, designed to reward security professionals through funds gathered from projects and their token holders. As a decentralized blockchain protocol, the Protocol operates autonomously without any central authority or entity in control. The open-source code that forms the foundation of the Protocol is freely accessible at https://github.com/hats-finance/hats-contracts. Modifications to the software code and the Protocol's regulations can only be executed by the holders of a specific percentage of the Protocol's governance tokens, a threshold set within the Protocol's code. However, in case of a fork, alterations can be implemented by those instigating the fork.
While Incentive Alignment Ltd., a Cayman Islands Foundation ("IA"), was the creator of the original code for the Protocol, it no longer holds control over its operation once deployed on the Ethereum blockchain. Instead, the Protocol's governance is under the purview of the decentralized Hats DAO token. The Protocol's code may have been altered by other parties and might not reflect the original code released by IA. As an open-source, decentralized protocol subject to modifications by others at any time, IA disclaims all responsibility or liability, under any legal theory, for your use of the Protocol, which is done solely at your risk. It is your responsibility to verify the proper operation, performance, functionality, and security of the Protocol prior to use. You assume full risk and responsibility for your engagement with the Protocol and/or any Vault.
Vaults within the Protocol are overseen by independent committee members, who have no affiliation with IA and who operate independently from Hats DAO. Neither IA nor the Hats DAO bear any responsibility or liability for these committee members' actions or inactions. Your engagement with the Protocol and any Vault is undertaken solely at your own risk. It's recommended that you thoroughly examine the operation, functionality, and performance of each Vault, as well as its committee members, before depositing any crypto assets.
License; No Warranties; Limitation of Liability
The software that underpins the Protocol is provided under the terms of the MIT License, accessible here: https://github.com/hats-finance/hats-contracts.
The Protocol is given "AS IS," "WITH ALL FAULTS," and "AS AVAILABLE," without any express or implied assurances, including warranties of merchantability or fitness for a particular use, which are hereby disclaimed.
Neither the copyright holders nor contributors will be responsible for any direct, indirect, incidental, special, exemplary, or consequential damages. This includes, but is not limited to, replacement of goods or services; loss of use, data, or profits; or interruption of business activities, regardless of how they occur or the theory of liability, be it in contract, strict liability, or tort (including negligence or otherwise). This applies even if the possibility of such damage was previously advised, and results from the use of this software.
Risk Disclaimers By using the Protocol, you acknowledge the risks tied to cryptographic systems and affirm your understanding of cryptographic tokens, digital assets, blockchains, decentralized systems, and smart contracts. To ensure you understand all risks as well as the protocol’s disclaimers, thoroughly read and review the Risks and Disclaimers page of Hats Finance’s documents available at: https://docs.hats.finance/miscellaneous/risk-factors-and-disclaimers.
Governing Law; Jurisdiction; Agreement to Arbitrate; No Class Action; Waiver of Right to Jury Trial
All claims or disputes relating to the Protocol or its use, or these Terms, will be interpreted and governed by the laws of the Cayman Islands. This applies without reference to its conflict-of-laws principles, and the United Nations Convention Relating to a Uniform Law on the International Sale of Goods may not be applied.
Every claim or dispute emerging from these terms, the Protocol, or its use, shall be conclusively settled under the Rules of Arbitration of the International Chamber of Commerce by one or more arbitrators designated following the said Rules. The arbitration will be conducted in English and held via teleconference or, if teleconference isn't feasible, in the Cayman Islands (the “Agreement to Arbitrate”).
You are required to bring all such claims or disputes individually, not as a plaintiff or member of any alleged class action, collective action, private attorney general action, or other representative proceeding. This provision is applicable to class arbitration.
By using the Protocol, you waive your right to a trial by jury.
Severability
If a court of competent jurisdiction determines that any provision of these Terms is unenforceable, that provision will be reduced or removed to the minimal extent necessary. This ensures that these Terms remain fully effective, while staying as close as possible to the original intent.
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