APPENDIX 1: EARN PROGRAM  – Terms & Conditions

1. Bitcipher Labs LLP, a limited liability partnership incorporated under the Limited Liability Partnership Act, 2008, provides You i.e. the User, with the option to participate in the Earn Program (“Program”) subject to the terms and conditions of this Appendix No. 1 (“Appendix”). The terms of this Appendix are subject to change at the sole discretion of CoinSwitch without any notice or liability to You. You are advised to review this Appendix each time you participate in the Program. This Program may be offered to the Users who fulfill the Eligibility Criteria stated in the Terms of Use (the “Terms”) and this Appendix whereby Users can earn more Cryptos by locking certain specified Cryptos (“Supported Cryptos”) for validation on proof-of-stake blockchains through third-party validators (“TPV”). This Appendix incorporates by reference and supplements the Terms. Capitalized terms used but not defined herein shall have the meanings given to them in the Terms. In the event of a conflict between the Terms and this Appendix with respect to the Program, the terms of this Appendix will prevail to the extent of the conflict.

1. Additional Eligibility Criteria: In addition to the Eligibility Criteria, You represent and warrant that You are not domiciled in or operating the Platform out of a jurisdiction where availing benefits under or Your participation in the Program is currently prohibited under applicable laws.

1. Nature of the Program: 

1. The Program is made available to You by Us in our capacity as an intermediary between You and the TPVs who are offering their validation services under the Program.

1. Choice of TPV: Under the Program, You (i.e. an eligible user) will be given an option to select / earmark a certain quantity of the Supported Cryptos (“Locked Cryptos”) that You hold in Your User’s LLP Account (also referred to as “Account”) , to be locked for validation (“Locking”) by the TPV until Unlocked by You (“Unlocking”). Such TPV will be selected by You based on Your assessment and analysis of their past performance data displayed to You on the Platform out of the options provided by Us to You. You acknowledge and agree that We may modify the list of available TPVs at our sole discretion without any prior notice to You.

1. List of Supported Cryptos: Under the Program, currently, You can Lock the following Cryptos:

1. MATIC (Polygon);
2. NEAR (Near Protocol);
3. SOL (Solana); and
4. ADA (Cardano).

You acknowledge and agree that the list of Supported Cryptos may be modified by Us at our sole discretion without prior notice to You.

1. Removal of Crypto from List of Supported Cryptos: In case of deletion of any Crypto (“Deleted Crypto”) from the list of Supported Cryptos, CoinSwitch will intimate the date of removal (“Delisting Date”) of the Deleted Crypto from the Program as soon as reasonably practicable. If the Locked Cryptos in Your Account include such Deleted Crypto, you will have the option to request Unlocking any time before the Delisting Date, failing which CoinSwitch will automatically effect Unlocking of the Deleted Crypto on the Delisting Date. Your Locked Cryptos will be Unlocked and You will receive the accumulated Reward as per the terms of this Appendix as in case of an Unlocking request under sub-clauses (F) and (G).

1. Locking: In order to participate in the Program, You must opt-in by selecting the Supported Crypto of Your choice to Lock from Your Account. By opting-in a portion or Your entire balance of the Supported Crypto chosen by You in Your Account, You acknowledge and agree that:  

1. You are restricted from selling the Locked Cryptos until Unlocking of your Locked Cryptos, which will further be subject to the Cool-off Period (defined hereinafter); 
2. The Locked Cryptos will remain Locked until You elect to Unlock them, subject to the Cool-off Period ;
3. You are entitled to an annual rate (“Reward Rate”) of Cryptos as reward (“Reward”) to be received in Your Account for the period of Locking from the relevant underlying and issuing blockchain of the Supported Crypto (“Supported Blockchain”) subject to the factors enumerated in Clause (G) of this Appendix; and
4. Your Locked Cryptos may be burned as a penalty assessed by a Blockchain network protocol for unavailability or slow, incorrect or malicious performance (“Slashed” or “Slashing”) as per the rules of the relevant Supported Blockchain. However, CoinSwitch will use commercially reasonable efforts to retrieve such Slashed Cryptos as detailed in sub-clause (H) of this Appendix.
5. You may elect to lock Your entire balance at any given point in time of a Supported Crypto or all of the Supported Cryptos for validation by giving perpetual consent to lock such Cryptos for validation. This consent will be deemed to be perpetual unless specifically withdrawn by You on the Platform.

You acknowledge and agree that CoinSwitch retains the right to unilaterally Unlock the Locked Cryptos at its sole discretion with a notice of 7 (Seven) days to You for reasons including but not limited to compliance with any applicable law or order from any regulatory/ statutory/ judicial authority.

For the avoidance of doubt, it is clarified that You retain beneficial ownership of the Supported Cryptos and such Supported Cryptos shall remain property of You when Locked for validation under the terms of this Appendix.  

1. Unlocking: When You elect to participate in the Program, You acknowledge and agree to be bound by the cool-off period, as displayed to You on the Platform, (“Cool-off Period”) prescribed by the relevant Supported Blockchain of the Locked Cryptos and that You will not be able to trade or otherwise dispose of Your Cryptos during such cool-off period after You elect to Unlock Your Cryptos. You acknowledge and agree that in the event You do not withdraw Your consent to lock any future balance of the Unlocked and sold Supported Cryptos, Your consent to keeping Your Supported Crypto balance locked for validation on the Platform for one or more Supported Cryptos shall be deemed to be perpetual irrespective of such Unlocking. such unlocking of the Locked Crypto does not  locked for validation   
2. Reward: Under the Program, You are eligible to receive a Reward from the Supported Blockchain for the Locked Cryptos for the period of Locking. The period of Locking begins after the respective warm-up period (“Warm-up Period”) for each Crypto as decided by the relevant Supported Blockchain and ends on the day you elect to Unlock your Locked Cryptos. For the avoidance of doubt, it clarified that the Supported Blockchains do not give any Reward during the Warm-Up Period, as decided by the underlying Supported Blockchain, and the Cool-off Period as decided by the underlying Supported Blockchain and displayed on the Platform. Under the Program, CoinSwitch, in accordance with the Terms of Use and Trading Policy, agrees to receive and hold in trust and on behalf of You, the Reward received from the Supported Blockchain for the Locked Cryptos from time to time. Upon receiving an Unlocking request, CoinSwitch will make available to You in Your Account, the Reward received from the Supported Blockchain during the period of Locking after deducting a service fee of 10 (Ten) percent plus applicable GST on the service fee on Your Locked Cryptos (“Service Fee”) within 1 (One) day after the completion of the Cool-off Period, subject to receipt of rewards from the Supported Blockchain as per its respective reward cycle for the duration of Locking. You acknowledge and agree that there might be a delay in the receipt of the Reward in Your Account on account of any force majeure or related events. In such an event, CoinSwitch will make your Reward available in Your Account as soon as reasonably practicable. You acknowledge and agree that the Service Fee may be modified at Our sole discretion without any notice or liability to You. You further acknowledge and agree that in addition to the Service Fee, You are liable to pay the applicable indirect taxes. 

You acknowledge and agree that the receipt of Reward in Your Account: (i) is determined by the Supported Blockchain in its sole discretion; (ii) varies by the Supported Blockchain; and (iii) will be subject to the TPV’s successful validation as per the rules prescribed by the Supported Blockchain (Solana, Near Protocol, Polygon, Cardano). 

You acknowledge and agree that You have no right to receive the Reward until it is received by CoinSwitch from the Supported Blockchain. You agree and understand that CoinSwitch does not guarantee that You will receive Reward and that the Reward Rate displayed to You before such Locking (i) is an estimate only and not guaranteed, (ii) may change at any time in CoinSwitch’s sole discretion, and (iii) may be more or less than the actual Reward CoinSwitch receives from the Supported Blockchain. You further acknowledge and agree that by electing to Unlock the Locked Cryptos before 7 (Seven) days from the date of Locking, You agree to paying a higher Service Fee to CoinSwitch equivalent to 100 (One Hundred) percent of the Reward, inclusive of applicable GST. The higher Service Fee for Unlocking before is aimed to encourage long-term Locking and infrequent Locking and Unlocking, enabling users to get optimum Reward on their Locked Cryptos.

1. Promotional Offer:  CoinSwitch may in its sole discretion credit Your User’s LLP Account with pro-rated Reward for the Warm-up Period and the Cool-off Period. In the event, You elect to lock Your Cryptos under this promotional offer, You will have the option to lock Your entire balance of Supported Cryptos perpetually for validation till Unlocked unless You elect to withdraw such consent. These prorated Rewards will be calculated up until a standard time every day. Your pro-rated Reward shall be calculated on the basis of the day You elect to Unlock the Locked Cryptos. Further, at the sole discretion of CoinSwitch, You may be allowed to dispose off or sell Your Unlocked Cryptos immediately after Unlocking the Locked Cryptos.
2. Slashing Penalty: You acknowledge and agree that a determination by the Supported Blockchain that the validation by the TPV has been erroneously operated or any other reason deemed fit by the Supported Blockchain may result in a “Slashing penalty” and non-payment of the applicable Reward by the Supported Blockchain. You agree and acknowledge CoinSwitch will have no liability in the event of such Slashing.  However, CoinSwitch will use commercially reasonable efforts to retrieve incorrectly Slashed Cryptos from the third-party insurance provider of the TPV or the TPV as the case may be. The aforestated, however, does not create any legal obligation on CoinSwitch to indemnify or make whole any loss caused to You on account of such Slashing.
3. No Guarantee of Program Availability. While CoinSwitch employs measures to ensure that the Program is accessible 24 hours a day and 7 days a week, CoinSwitch cannot guarantee uninterrupted or error-free operation of the Program or that CoinSwitch will correct all defects or prevent third-party disruptions or unauthorized third party access. In the event of such disruptions, any Locked Supported Cryptos may not be generating the Reward.

1. Acknowledgement of Risks and Liabilities: 

1. You understand the technical complexities and possess the technical and mathematical skills to select the TPV, decide the number of Cryptos and period of Locking to participate in the Program. You hereby accept and undertake the risks involved in the services availed by You under the Program;
2. You understand that the services offered under the Program are not currently regulated in India and there might be changes in applicable law that prohibit You from availing the benefits and services under the Program;
3. You understand the blockchains are inherently risky and you may lose all or part of the Locked Cryptos and/or the rewards if the Supported Blockchain shuts down, or is technically compromised, or suffers any regulatory or legal restrictions or prohibitions in the relevant jurisdictions;
4. You acknowledge and agree that the Program is not in the nature of an investment, or lending scheme; and
5. You are solely responsible for any tax obligations and liabilities arising out of Your receipt of Reward under the Program. 

1. In no event will CoinSwitch be held liable to You for any loss, liability or damage (including loss or diminution of value of the Locked Cryptos under the Program) that may cause or arise to You from Your participation under the Program.
2. CoinSwitch without any obligation or liability shall have a right to terminate or suspend the Program including but not limited to withhold or cancel any Reward in order to comply with any applicable law or order from any regulatory, administrative, statutory, enforcement, or judicial authority.

 

Note: For more information on the Earn Program, please refer to the FAQs – About CoinSwitch Earn, How to lock / Unlock your crypto, Manage your locked in crypto.