Kryptnex Token Sale Agreement
This KRYPTNEX Token Purchase Agreement (this “Agreement”) contains the terms and conditions that govern your use of the KRYPTNEX Platform and purchase of the KRYPTNEX tokens (the “KRYPTNEX Tokens” or “Tokens”). This Agreement is made between you or the entity that you represent (the “Buyer” or “ you”) and Kryptnex AG, a Swiss company with registered address at:
Hinterbergstrasse 49
CH-6312 Steinhausen / Zug
Switzerland
(together with its affiliates, the “Company”). Buyer and Company are herein referred to individually as the “Party” and collectively as the “Parties”.
NOW, THEREFORE, in consideration of the mutual representations, warranties, and agreements contained in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Company and Buyer agree as follows:
IMPORTANT: PLEASE READ THIS AGREEMENT CAREFULLY AND IN ITS ENTIRETY.
Buyer acknowledges, understands, and agrees:
i. BINDING AGREEMENT: BUYER UNDERSTANDS AND AGREES THAT BUYER IS SUBJECT TO AND BOUND BY THIS AGREEMENT BY VIRTUE OF BUYER’S PURCHASE OF KRYPTNEX TOKENS.
ii. KRYPTNEX TOKENS PROVIDE YOU WITH A DIGITAL UNIT OF ACCOUNT, WITH STORE OF VALUE, TO BE USED AS A MEDIUM OF EXCHANGE WITH INTRINSIC VALUE, FOR THE PAYMENT OF GOODS AND SERVICES. (THE “PROJECT”).
iii.THE TOKENS GIVE YOU TITLE OF OWNERSHIP IN THE SPECIFIC PHYSICAL GOLD COINS IDENTIFIED BY QR CODES AND STORED AT GOLD STORAGE FACILITIES IN SWITZERLAND.
iv. PURCHASE OF KRYPTNEX TOKENS IS SUBJECT TO ANTI-MONEY LAUNDERING COMPLIANCE.
v. COMPANY RESERVES THE RIGHT TO REFUSE OR CANCEL KRYPTNEX TOKEN PURCHASE REQUESTS AT ANY TIME IN ITS SOLE DISCRETION.
vi. PERSONS WHO PURCHASE EARLIER THAN YOU MAY RECEIVE MORE TOKENS FOR THE AMOUNT PAID.
vii. PLEASE READ THE RISKS SET FORTH CAREFULLY AND IN THEIR ENTIRETY.
viii. THIS AGREEMENT INCLUDES PRE-DISPUTE RESOLUTION AND REQUIRES ARBITRATION ACCORDING TO SECTION 14.
1. BINDING AGREEMENT
1.1 Effective Time. This Agreement shall be effective and binding on the Parties when (a) Buyer clicks the check box on the official KRYPTNEX website (the “Website”) to indicate that Buyer has read, understands, and agrees to the terms of this Agreement; or (b) upon Company’s receipt of payment from Buyer. Buyer agrees to be bound on this basis, and confirms that Buyer has read in full and understands this Agreement and the terms, on which Buyer is bound.
1.2 Website Terms of Use. Company has established Terms of Use, as may be amended from time to time, for the website located at https://www.kryptnex.ch which are hereby incorporated by reference. Buyer has read, understands and agrees to those terms.
1.3 White Paper. Company has prepared the White Paper and other materials concerning the Project and the sale of KRYPTNEX Tokens and they are available at https://www.kryptnex.ch. The White Paper may be amended from time to time and is, hereby, incorporated by reference. Buyer has read and understands the White Paper and its contents.
2. KRYPTNEX TOKEN
2.1. Purpose and Use of KRYPTNEX Tokens . KRYPTNEX token is an asset-payment token backed by individually identifiable physical gold coins. The KRYPTNEX tokens are not a security and have not been registered as such in Switzerland or any other jurisdiction. For more details about the use of the KRYPTNEX Tokens, please refer to the Company’s whitepaper at https://www.kryptnex.ch.
2.2. Limited Use of KRYPTNEX Tokens. Buyer understands and accepts that KRYPTNEX Tokens do not represent a stake, share, security, or equivalent rights in the Company. They also do not confer any right to receive future Company earnings, share in future capital flows, revenue shares, dividends, other payments, intellectual property rights, or any other form of participation in or relating to the Company and its corporate affiliates, other than any rights relating to title of the physical gold coins, subject to limitations and conditions in this Agreement. The holders of KRYPTNEX token are entitled to use the KRYPTNEX services as described in the Company’s White Paper or to sell the KRYPTNEX Tokens. KRYPTNEX Tokens are intended to be a digital currency.The KRYPTNEX token itself will be based on a blockchain-based computing platform that allows smart contracts – distributed computer programs which can facilitate online contractual agreements in a cryptographically secure manner.
3. BUYERS
3.1. Token Receipt Address. In order to be eligible to participate in the Company’s token sale, Buyer must have an KRYPTNEX wallet that supports the [ERC-20] standard in order to receive any Tokens purchased from Company (the “Token Receipt Address”). Company reserves the right to prescribe additional guidance regarding specific wallet requirements.
3.2. Minimum Age. In order to be eligible to participate in the Company’s token sale, Buyers must be at least eighteen (18) years of age.
3.3. Acknowledgment and Assumption of Risks. Buyer acknowledges and agrees that there are risks associated with purchasing KRYPTNEX Tokens, owning KRYPTNEX Tokens, and using KRYPTNEX Tokens. These risks are outlined in Section 12 below. BY PURCHASING KRYPTNEX TOKENS, BUYER EXPRESSLY ACKNOWLEDGES AND ASSUMES THESE RISKS.
3.4. Buyer’s Security. Buyer will implement, at his sole risk, reasonable and appropriate measures designed to secure access to: (i) any device associated with Buyer and utilized in connection with Buyer’s purchase of KRYPTNEX Tokens; (ii) private keys to Buyer’s wallet or account; and (iii) any other username, passwords, or other login or identifying credentials. In the event that Buyer is no longer in possession of Buyer’s private keys or any device associated with Buyer’s account or is not able to provide Buyer’s login or identifying credentials, Buyer may lose all of Buyer’s KRYPTNEX Tokens and/or access to Buyer’s account. Company is under no obligation to recover any KRYPTNEX Tokens and Buyer acknowledges, understands, and agrees that all purchases of KRYPTNEX Tokens are non-refundable and Buyer will not receive money or other compensation for any KRYPTNEX Tokens purchased.
3.5. Personal Information. Upon Company’s request, Buyer will immediately provide to Company information and documents that Company, in its sole discretion, deems necessary or appropriate to comply with any laws, regulations, rules, or agreements, including, without limitation, judicial process. Such documents include, but are not limited to, passport, driver’s license, utility bills, photographs of associated individuals, government identification cards, source of funds or sworn statements. Buyer consents to Company disclosing such information and documents in order to comply with applicable laws, regulations, rules, or agreements. Buyer acknowledges that Company may refuse to distribute KRYPTNEX Tokens to Buyer and/or terminate this Agreement until such requested information is provided.
3.6. Taxes. Buyer acknowledges, understands, and agrees that: (a) the purchase and receipt of KRYPTNEX Tokens may have tax consequences for Buyer; (b) Buyer is solely responsible for Buyer’s compliance with Buyer’s tax obligations; and (c) Company bears no liability or responsibility with respect to any tax consequences to Buyer.
4. ACQUISITION OF TOKENS
4.1. Acquisition. On the terms set forth herein, you agree to purchase and we agree to sell KRYPTNEX Tokens. There is no minimum or maximum amount of purchase. Company reserves the right to refuse or cancel KRYPTNEX Tokens purchase requests at any given time in its sole discretion.
4.2. Accepted Forms of Payment. As a form of payment, Company accepts fiat money including [USD, EUR an CHF, BTC].
4.3. Attachment. Attachment between the token and its corresponding physical gold coin will occur upon receipt of the purchase price and registration of the correspondence (“Attachment”) on an audited ledger (“Audited Ledger”). The Token will be delivered to you on completion of the Token sale period. All of the KRYPTNEX Tokens are of equal value and functionality.
4.4. The price of KRYPTNEX Token.The initial price of the KRYPTNEX Tokens is nominated in CHF with the minimum of 500 Tokens purchased by each ICO participant.
4.5. More details regarding the purchase procedure, the timing, the pricing, and the anticipated use of the KRYPTNEX Tokens sale are defined in the Company’s White Paper at https://www.kryptnex.ch
5. KRYPTNEX TOKEN DISTRIBUTION
5.1. Allocation and Distribution of KRYPTNEX Tokens. Company intends to allocate and distribute KRYPTNEX Tokens (the “Token Distribution”) in accordance with the White Paper, including, without limitation, that the distribution will take place over several weeks with earlier buyers receiving more KRYPTNEX Tokens for the same amount paid. Company will provide specific procedures on how Buyer may seek purchase KRYPTNEX Tokens through the Website. By purchasing KRYPTNEX Tokens, Buyer acknowledges, understands, and has no objection to such procedures and specifications. Failure to use the Website and follow such procedures may result in Buyer not receiving any KRYPTNEX Tokens. The access or use of the KRYPTNEX Platform and/or the receipt or purchase of KRYPTNEX Tokens through any other means are not sanctioned or agreed to in any way by Company. Buyer should take great care and purchase KRYPTNEX Tokens using only Company’s official website at https://www.kryptnex.ch.
5.3. No Representations and Warranties.
Without limiting the foregoing, none of the Company parties represent or warrant that the process of purchasing and/or receiving of the KRYPTNEX Tokens will be uninterrupted or error-free or that the KRYPTNEX Tokens are reliable and error-free. As a result, Buyer acknowledges and understands that Buyer may never receive KRYPTNEX Tokens, noting however that the physical gold coins owned by the Token purchaser are secured.
5.4. Not an Offering of Securities. The sale of the KRYPTNEX Tokens is not an investment and the KRYPTNEX Tokens themselves are not equity or debt securities, swaps on securities, or a financial instrument of any kind. Purchases and sales of the KRYPTNEX Tokens are not subject to the protections of any laws governing those types of financial instruments. This Agreement and all other documents referred to in this Agreement, including the White Paper, do not constitute a prospectus or offering document, and are not an offer to sell, nor the solicitation of an offer to buy an investment, a security, or a swap on a security.
5.5. Not an Investment. Buyer should not purchase KRYPTNEX Tokens or participate in the KRYPTNEX Token distribution for investment purposes. KRYPTNEX Tokens are not designed for investment purposes and should not be considered as a type of investment. Buyer acknowledges, understands, and agrees that Buyer should not expect (and there is no such guarantee or representation or warranty by Company) that: (a) the Project will be taken to full completion; (b) the Project will be adopted as developed by Company and not in a different or modified form.
5.6. Not for Speculation. Buyer acknowledges and agrees that Buyer is not purchasing the KRYPTNEX Tokens for purposes of investment, speculation, as some type of arbitrage strategy, for immediate resale, or other financial purposes.
5.7. Sources and Uses of Funds.
(a) Use of Funds. Buyer shall not use KRYPTNEX Tokens to finance, engage in, or otherwise support any unlawful activities.
(b) Payments. All payments by Buyer under this Agreement shall be made only in Buyer’s name.
(c) Anti-Money Laundering; Counter-Terrorism Financing; Sanctions. To the extent required by applicable law, Buyer shall comply with all anti-money laundering and counter-terrorism financing requirements as well as with any restrictions imposed by the applicable sanctions regulations.
5.8. Transfers
(a) Transfer Fees. Buyer acknowledges and agrees that any transfer of KRYPTNEX Tokens may be subject to transfer fees imposed by Company through [Wire Protocol].
(b) Transfer Restrictions. The KRYPTNEX Tokens purchased at a discounted price cannot be resold within 3 months of the ICO completion date and cannot enter into any swap or other agreement that transfers, in whole or in part, any of the economic consequences of ownership of the KRYPTNEX Tokens. Buyer agrees that Company may place other limitations on the transferability of KRYPTNEX Tokens.
5.9. Cancellation or Refusal of Purchase Requests. All KRYPTNEX Token purchases from the Company are final, and there are no refunds or cancellations except as may be required by applicable law or regulation. Company reserves the right to refuse or cancel KRYPTNEX Token purchase requests at any time in its sole discretion.
5.9. Token Allocation. Important information about the Company’s creation and intended use of the KRYPTNEX Tokens is provided in the Company’s White Paper at https://www.kryptnex.ch. By purchasing KRYPTNEX Tokens, Buyer acknowledges that Buyer has read and understands the White Paper.
6. NO OTHER RIGHTS CREATED
6.1. No Claim, Loan, or Ownership Interest. The purchase of KRYPTNEX Tokens: (a) does not provide Buyer with rights of any form with respect to the Company or its revenues or assets, including, but not limited to, any voting, distribution, redemption, liquidation, proprietary (including all forms of intellectual property), or other financial or legal rights; (b) is not a loan to Company; and (c) does not provide Buyer with any ownership or other interest in Company.
7. INTELLECTUAL PROPERTY
7.1. Company retains all rights, titles and interests in all of Company’s intellectual property including, without limitation, inventions, ideas, concepts, code, discoveries, processes, marks, methods, compositions, formulae, techniques, information and data, whether or not patentable, copyrightable, or protectable in trademark and any trademarks, copyrights, or patents based thereon. Buyer may not use any of Company’s intellectual property for any reason except with our express prior written consent.
7.2. In particular, Company retains all intellectual property rights over the source code forming KRYPTNEX Tokens. These terms shall not be understood and interpreted in a way that they would mean assignment of intellectual property rights unless it is explicitly defined so in this Agreement.
7.3. Buyers are granted a non-exclusive and non-transferable revocable license to access and use the KRYPTNEX Platform. Limitation to the transferability of license shall not be understood in that the users are not allowed to transfer KRYPTNEX Tokens to third parties.
7.4. Buyer shall use the KRYPTNEX Platform and the KRYPTNEX Tokens strictly in accordance with the provisions of this Agreement and the respective White Paper. As a condition of Buyer’s use of the KRYPTNEX Platform and the KRYPTNEX Tokens, Buyer warrants to the Company that Buyer will not use the KRYPTNEX Platform and the KRYPTNEX Tokens for any purpose that is unlawful or prohibited by the provisions of this Agreement. Buyer will not use the KRYPTNEX Tokens in any manner that could damage, disable, overburden, or impair the Website or interfere with any other party’s use and enjoyment of the KRYPTNEX Platform. Buyer will not obtain or attempt to obtain any materials or information through any means not intentionally made available or provided through the KRYPTNEX Platform and the KRYPTNEX or other services provided.
7.5. All content listed on the website, including the description of KRYPTNEX Token, the KRYPTNEX ecosystem and associated products and services, text, graphics, logos, images, source code, as well as the compilation, are copyrighted and may not be copied, even if modified or merged with other Content, except as expressly permitted herein or in a signed written agreement between Buyer and KRYPTNEX. All rights are reserved. Therefore, any software used on the website is the property of the Company and protected by copyright, trademark, and other laws that protect intellectual property and proprietary
rights. Buyer will agree to observe and abide by all copyright and other proprietary notices, legends or other restrictions contained in any of the content and will not make any changes.
8. REPRESENTATIONS AND WARRANTIES OF BUYER
By purchasing KRYPTNEX Tokens, Buyer represents and warrants to Company that:
8.1. Authority. Buyer has all requisite power and authority to execute and deliver this Agreement, to use the KRYPTNEX Platform and purchase KRYPTNEX Tokens, and to carry out and perform its obligations under this Agreement.
(a) If an individual, Buyer is at least 18 years old and of sufficient legal age and capacity to purchase KRYPTNEX Tokens.
(b) If a legal person, Buyer is duly organized, validly existing, and in good standing under the laws of its domiciliary jurisdiction and each jurisdiction where it conducts business.
(c) Buyer has the full legal capacity, power and authority to execute and deliver this Agreement and to perform its obligations hereunder.
(d) this Agreement will, when executed, constitute a legal, valid and binding obligation of the Buyer, enforceable against the Buyer in accordance with its terms, except as limited by bankruptcy, insolvency or other laws of general application relating to or affecting the enforcement of creditors’ rights generally and general principles of equity.
(e) The Buyer is not identified on any list of prohibited parties maintained by Switzerland and the Buyer is not owned or controlled by, or acting on behalf of, any person or the government of a country/territory identified in the preceding sentences.
(f) the entry into this Agreement and the consummation of the transactions contemplated thereby is lawful under the laws of the jurisdiction of the Buyer’s incorporation or domicile and the jurisdiction in which it operates (if different), and such purchase will not contravene any law, regulation or regulatory policy applicable to the Buyer.
(g) the Buyer shall acquire the KRYPTNEX Tokens for its own account and not with a view towards, or for resale in connection with, the sale or distribution thereof (provided, however, that by making the representations and warranties herein, except as set forth in this Agreement, the Buyer does not agree to hold any of the KRYPTNEX Tokens for any minimum or other specific term and reserves the right to dispose of the Tokens at any time in accordance with applicable laws and the terms of this Agreement). The Buyer
(h) does not presently have any agreement or understanding, directly or indirectly, with any person to distribute any of the Tokens.
(i) The Buyer has received and carefully reviewed a copy of the White Paper (including any updates thereto), and understands the contents thereof. Purchaser understands and agrees that neither the acceptance of the terms and conditions of this Agreement nor the purchase, holding, receipt of the KRYPTNEX Tokens or other use of the KRYPTNEX Tokens: (a) provides Buyer with any claim whatsoever with respect to the Company or its assets; (b) represents or constitutes a loan or a contribution of capital to, or other investment in, the Company; (c) provides Buyer with any ownership interest, equity, security, or right to or interest in the assets, rights, properties, revenues or profits of, or voting rights whatsoever in, the Company; or (d) creates or implies any fiduciary or other agency relationship between the Company or any of its directors, officers, employees, agents or affiliates and Buyer or entitles Buyer to any fiduciary duty or similar duty on the part any of the foregoing persons.
(j) the Buyer is entering into this Agreement and shall acquire the KRYPTNEX Tokens on its own behalf and not for the benefit of any other person.
(k) the Buyer shall complete and delivered to the Company any and all KYC documents and information and such information shall be true, accurate and not misleading. (l) neither the Buyer, nor any person having a direct or indirect beneficial interest in the Buyer or the KRYPTNEX Tokens to be acquired by the Buyer, is a sanctioned person, or a child, spouse, parent or sibling of a sanctioned person.
(m)the Buyer will not use any KRYPTNEX Tokens, directly or indirectly, in connection with any transaction, dealing or activity in violation of money laundering laws or sanctions.
(n) The Buyer is not a US person (including, without limitations, green card holder or US resident).
8.2. No Conflict. The execution, delivery, and performance of this Agreement will not result in any violation of, be in conflict with, or constitute a material default under, with or without the passage of time or the giving of notice: (a) any provision of Buyer’s organizational documents, if applicable; (b) any provision of any judgment, decree or order to which Buyer is a party, by which it is bound, or to which any of its material assets are subject; (c) any material agreement, obligation, duty, or commitment, to which Buyer is a party or by which it is bound; or (d) any laws, regulations, or rules applicable to Buyer.
8.3. No Consents or Approvals. The execution and delivery of and performance under this Agreement require no approval or other action from any governmental authority or person other than Buyer.
8.4. Company Status. In the context of the KRYPTNEX Tokens sales, Company is a financial intermediary in accordance with applicable law. Therefore, it is subject to Swiss anti-money laundering audit and has accordingly appointed an anti-money laundering officer affiliated with a Swiss self-regulatory organization recognized by the Swiss Financial Markets Authority (FINMA) which defines the due diligence requirements under the applicable anti-money laundering regulation.
8.5. Buyer Knowledge and Risks of Project. Buyer has sufficient knowledge and experience in business and financial matters, including a sufficient understanding of blockchain or cryptographic tokens and other digital assets, smart contracts, storage mechanisms (such as digital or token wallets), blockchain-based software systems, and blockchain technology to be able to evaluate the risks and merits of Buyer’s purchase of KRYPTNEX Tokens, including, but not limited, to the matters set forth in this Agreement, and is able to bear the risks thereof, including loss of KRYPTNEX Tokens, and liability to the Company Parties and others for its acts and omissions, including, with limitation, those constituting breach of this Agreement, negligence, fraud, or other willful misconduct. Buyer has obtained sufficient information in order to make an informed decision to purchase KRYPTNEX Tokens.
8.6. Funds and Payments.
(a) Funds. The funds, including any fiat, virtual currency, or cryptocurrency, Buyer uses to purchase KRYPTNEX Tokens are not derived from or related to any unlawful activities, including but not limited to money laundering, corruption or terrorist financing, and Buyer will not use the KRYPTNEX Tokens to finance, engage in, or otherwise support any unlawful activities.
(b) Payments. All payments by Buyer under this Agreement will be made only in Buyer’s name, from a digital wallet or bank account.
8.7. Miscellaneous Regulatory Compliance.
(a) Anti-Money Laundering and Counter-Terrorism Financing. To the extent required by applicable law, Buyer complies with all anti-money laundering and counter-terrorism financing requirements.
(b) Sanctions Compliance. Neither Buyer nor any person having a direct or indirect beneficial interest in Buyer or KRYPTNEX Tokens being acquired by Buyer, or any person for whom Buyer is acting as agent or nominee in connection with KRYPTNEX Tokens, is the subject of sanctions administered or enforced by any country or government (collectively, “Sanctions”) or is organized or resident in a country or territory that is the subject of country-wide or territory-wide Sanctions.
9. RIGHT TO TERMINATE ACCESS TO SERVICES
9.1. Company reserves the right in its sole discretion to terminate Buyer’s access to the KRYPTNEX Website, the KRYPTNEX Platform, and its related services or any portion thereof at any time without notice. In particular, due to legal grounds originating in the Company’s Anti-Money Laundering Policy and any other applicable regulations and procedures.
10. NOTICES
10.1. Company may provide any notice to Buyer under this Agreement by: (i) posting a notice on the Company website at https://www.kryptnex.ch; (ii)sending an email to the email address provided by Buyer and associated with Buyer’s account. Notices provided by posting on the website will be effective upon posting and notices provided by email will be effective when Company sends the email. It is Buyer’s responsibility to keep Buyer’s email address current. Buyer will be deemed to have received any email sent to the email address then associated with Buyer’s account when Company sends the email whether or not Buyer actually receive or read the email.
10.2. To provide Company with a notice under this Agreement, Buyer must contact Company by email to policy@kryptnex.ch. Company may update this email address for notices to Company by posting a notice on the website. Notices to Company will be effective on one business day after they are sent.
10.3. All communications and notices to be made or given pursuant to this Agreement must be in the English language.
11. DISCLAIMERS
TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW AND EXCEPT AS OTHERWISE SPECIFIED IN A WRITING BY US, (A) TOKENS ARE SOLD ON AN “AS IS” AND “AS AVAILABLE” BASIS WITHOUT WARRANTIES OF ANY KIND, AND WE EXPRESSLY DISCLAIM ALL IMPLIED WARRANTIES AS TO TOKENS, INCLUDING, WITHOUT LIMITATION, IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NON-INFRINGEMENT; (B) WE DO NOT REPRESENT OR WARRANT THAT TOKENS ARE RELIABLE, CURRENT OR ERROR-FREE, MEET YOUR REQUIREMENTS, OR THAT DEFECTS IN TOKENS, IF SUCH ARE FOUND, WILL BE CORRECTED; AND (C) WE CANNOT AND DO NOT REPRESENT OR WARRANT THAT TOKENS OR THE DELIVERY MECHANISM FOR TOKENS ARE FREE OF VIRUSES OR OTHER HARMFUL COMPONENTS.
12. RISKS
Buyer has carefully reviewed, acknowledges, understands, and assumes the following risks, as well as all other risks associated with the KRYPTNEX Tokens (including those not discussed herein), all of which could render the KRYPTNEX Tokens worthless or of little value:
12.2. Purchase Price Risk. The distribution of KRYPTNEX Tokens will occur at the end of the distribution period. There are no guarantees as to the price of KRYPTNEX Tokens purchased by Buyer and no guarantees that the price per KRYPTNEX Token determined by the market will be equal to or higher than the purchase price paid by Buyer. There is the possibility that the price per KRYPTNEX Token will fall below the price paid by initial buyers of KRYPTNEX Tokens during the distribution period. Company reserves the right to change the duration of the distribution period for any reason, including, without limitation, bugs in the distribution contract or the unavailability of the Website or other unforeseen procedural or security issues.
12.5. Ability to Transact or Resell. Buyer may be unable to sell or otherwise transact with a third party the KRYPTNEX Tokens at any time, or for the price Buyer paid. By purchasing KRYPTNEX Tokens, Buyer acknowledges, understands and agrees that: (b) there is no guarantee or representation of liquidity for the KRYPTNEX Tokens; and (c) Company is not and shall not be responsible or liable for the market value of KRYPTNEX Tokens, the transferability and/or liquidity of KRYPTNEX Tokens and/or the availability of any market for KRYPTNEX Tokens through third parties or otherwise.
12.6. Token Security.The KRYPTNEX Tokens may be subject to expropriation and or/theft. Hackers or other malicious groups or organizations may attempt to interfere with the KRYPTNEX Distribution Contract or the KRYPTNEX Tokens in a variety of ways, including, but not limited to, malware attacks, denial of service attacks, consensus-based attacks, Sybil attacks, smurfing and spoofing. Furthermore, because the platform rests on open source software and the KRYPTNEX Tokens are based on open source software, there is the risk that smart contracts may contain intentional or unintentional bugs or weaknesses which may negatively affect the KRYPTNEX Tokens or result in the loss of Buyer’s KRYPTNEX Tokens, the loss of Buyer’s ability to access or control Buyer’s KRYPTNEX Tokens, or the loss in Buyer’s account. In the event of such a software bug or weakness, there may be no remedy and holders of the KRYPTNEX Tokens are not guaranteed any remedy, refund, or compensation.
12.7. Access to Private Keys. The KRYPTNEX Tokens purchased by Buyer may be held by Buyer in Buyer’s digital wallet or vault, which requires a private key, or a combination of private keys, for access.
Accordingly, loss of requisite private key(s) associated with Buyer’s digital wallet or vault storing the KRYPTNEX Tokens will result in loss of such KRYPTNEX Tokens, access to Buyer’s KRYPTNEX Token balance and/or any initial balances in blockchains created by third parties. Moreover, any third party that gains access to such private key(s), including by gaining access to login credentials of a hosted wallet or vault service Buyer uses, may be able to misappropriate Buyer’s KRYPTNEX Tokens. Company is not responsible for any such losses.
12.7. New Technology. The Project and all of the matters set forth in the White Paper are new and untested. The Project might not be capable of completion, implementation, or adoption. It is possible that no blockchain utilizing the Project will ever be launched and there may never be an operational platform. Even if the Project is completed, implemented, and adopted, it might not function as intended, and any tokens associated with a blockchain adopting the Project may not have functionality that is desirable or valuable. Also, technology is changing rapidly, so the KRYPTNEX Tokens and the Project may become outdated.
12.9. Reliance on Third-Parties. Even if completed, the Project will rely, in whole or partly, on third parties to adopt and implement it and to continue to develop, supply, and otherwise support it. There is no assurance or guarantee that those third parties will complete their work, properly carry out their obligations, or otherwise meet anyone’s needs, all of which might have a material adverse effect on the Project.
12.10. Failure to Map a Public Key to Buyer’s Account. Failure of Buyer to map a public key to Buyer’s account may result in third parties being unable to recognize Buyer’s KRYPTNEX Token.
12.11. Exchange & Counterparty Risks. If Buyer sends a cryptocurrency payment from an exchange or an account that Buyer does not control, the KRYPTNEX Tokens will be allocated to the account that has sent such payment; therefore, Buyer may never receive or be able to recover these KRYPTNEX Tokens. Furthermore, if Buyer chooses to maintain or hold the KRYPTNEX Tokens through a cryptocurrency exchange or other third party, Buyer’s KRYPTNEX Tokens may be stolen or lost. In addition, third parties may not recognize Buyer’s claim to any derivative tokens if and when launched by third parties according to the distribution rules set in the Project. Buyer acknowledges and agrees that if Buyer makes payments and/or purchases KRYPTNEX Tokens through an account that Buyer does not control and/or
holds KRYPTNEX Tokens on a cryptocurrency exchange or with another third party, Buyer does so at its own and sole risk.
12.12. Changes to the Project. The Project is still under development and may undergo significant changes over time. Although Company intends for the Project to have the features and specifications set forth in the White Paper, Company may make changes to such features and specifications for various reasons, any of which may mean that the KRYPTNEX Platforms does not meet Buyer’s expectations.
12.13. Project Completion. The development of the Project may be abandoned for a number of reasons, including, but not limited to, lack of interest from the public, lack of funding, lack of commercial success or prospects, or departure of key personnel.
12.14. Lack of Interest. Even if the Project is finished, launched, and adopted, the ongoing success of the Project relies on the interest and participation of third parties. There can be no assurance or guarantee that there will be sufficient interest or participation in the Project.
12.15. Uncertain Regulatory Framework. The regulatory status of cryptographic tokens, digital assets, and blockchain technology is unclear, unsettled, and rapidly changing in many jurisdictions. It is difficult to predict when, how, or whether at all governmental authorities will regulate such technologies. It is, likewise, difficult to predict when, how, or whether at all any governmental authority may make changes to existing laws, regulations, and/or rules that will affect cryptographic tokens, digital assets, blockchain technology, and its applications. Such changes could negatively impact KRYPTNEX Tokens in various ways, including, for example, through a determination that KRYPTNEX Tokens are regulated financial instruments that require registration. Company may cease the distribution of KRYPTNEX Tokens, the development of the Project, or cease operations in a jurisdiction in the event that governmental actions make it unlawful or commercially undesirable to continue to do so.
12.16. Risk of Government Action. The industry in which Company operates is new and may be subject to heightened oversight and scrutiny, including investigations or enforcement actions. There is always a possibility that governmental authorities will examine the operations of Company and/or pursue enforcement actions against Company. Such governmental activities may or may not be the result of targeting Company in particular. Although Company is undertaking maximum efforts to
comply with all existing regulations, due to multiple uncertainties and frequent changes in the rapidly evolving market of cryptographic tokens, digital assets, and blockchain technology, Company still may become subject to judgments, settlements, fines, or penalties, or may have to restructure its operations and activities or to cease offering certain products or services, all of which could harm Company’s reputation or lead to higher operational costs, which may in turn have a material adverse effect on the KRYPTNEX Tokens and/or the development of the Project.
12.17. Other Unanticipated Risks.In addition to the risks set forth here, there are other risks that the KRYPTNEX team cannot anticipate. Risks may further materialize as unanticipated combinations or variations of the risks set forth here.
13. LIMITATION OF LIABILITY; INDEMNIFICATION
13.1. Limitation of Liability. To the fullest extent permitted by applicable law, Buyer disclaims any right or cause of action against Company of any kind in any jurisdiction that would give rise to any Damages whatsoever, on the part of Company. Company shall not be liable to Buyer for any type of damages, whether direct, indirect, incidental, special, punitive, consequential, or exemplary, including damages for lost profits, goodwill, and use or data, even if and notwithstanding the extent to which Company has been advised of the possibility of such damages. Buyer agrees not to seek any refund, compensation, or reimbursement from the Company party, regardless of the reason, and regardless of whether the reason is identified in this Agreement.
13.2. Damages. In no circumstances will the aggregate joint liability of the Company Parties, whether under contract, warrant, tort, or other legal theory, for damages to Buyer under this Agreement exceed the amount received by Company from Buyer.
13.3. Force Majeure. Buyer understands and agrees that Company shall not be liable and disclaims all liability to Buyer in connection with any force majeure event, including acts of God, labor disputes or other industrial disturbances, electrical, telecommunications, hardware, software or other utility failures, software or smart contract bugs or weaknesses, earthquakes, storms, or other nature-related events, blockages, embargoes, sanctions, riots, government acts or orders, acts of terrorism or war, technological change, changes in interest rates or other monetary conditions, and, for the avoidance of doubt, changes to any blockchain-related protocol.
13.4. Release. To the fullest extent permitted by applicable law, Buyer releases Company from responsibility, liability, claims, demands, and/or damages of every kind and nature, known and unknown (including, but not limited to, claims of negligence), arising out of or related to disputes between Buyer and the acts or omissions of third parties.
13.5. Indemnity.
(a) To the fullest extent permitted by applicable law, Buyer will indemnify, defend, and hold harmless and reimburse Company from and against any and all actions, proceedings, claims, damages, demands, and actions, including without limitation fees and expenses of legal counsel, incurred by Company arising from or relating to: (i) Buyer’s purchase or use of KRYPTNEX Tokens; (ii) Buyer’s responsibilities or obligations under this Agreement; (iii) Buyer’s breach of or violation of this Agreement; (iv) any inaccuracy in any representation or warranty of Buyer; (v) Buyer’s violation of any rights of any other person or entity; and/or (vi) any act or omission of Buyer that is negligent, unlawful, or constitutes willful misconduct.
(b) Company reserves the right to exercise sole control over the defense, at Buyer’s expense, of any claim subject to indemnification under this Section 13.5. This indemnity is in addition to, and not in lieu of, any other indemnities set forth in a written agreement between Buyer and Company.
14. DISPUTE RESOLUTION
14.1 Informal Dispute Resolution. Buyer and Company shall cooperate in good faith to resolve any dispute, controversy, or claim arising out of, relating to, or in connection with this Agreement, including with respect to the formation, applicability, breach, termination, validity or enforceability thereof (a “Dispute”). If the Parties are unable to resolve a Dispute within ninety (90) days of notice of such Dispute being received by all Parties, such Dispute shall be finally settled by Binding Arbitration as defined in Section 14.2 below.
14.2 Binding Arbitration. Any Dispute not resolved within 90 days as set forth in Section 14.1 shall be referred to and finally resolved by arbitration. Any dispute, controversy or claim arising out of, or in relation to, this contract, including the validity, invalidity, breach, or termination thereof, shall be
resolved by arbitration in accordance with the Swiss Rules of International Arbitration of the Swiss Chambers’ Arbitration Institution in force on the date on which the Notice of Arbitration is submitted in accordance with these Rules. The number of arbitrators shall be one (1). The seat of arbitration shall be Zurich. The arbitration shall be conducted in English.
14.3 No Class Arbitrations, Class Actions or Representative Actions. Any dispute arising out of or related to this Agreement is personal to Buyer and Company and will not be brought as a class arbitration, class action or any other type of representative proceeding. There will be no class arbitration or arbitration in which an individual attempts to resolve a dispute as a representative of another individual or group of individuals. Further, a dispute cannot be brought as a class or other type of representative action, whether within or outside of arbitration, or on behalf of any other individual or group of individuals.
15. GOVERNING LAW AND VENUE
This Agreement and any claim arising out of or in connection with its subject matter or formation (including non-contractual disputes and claims) shall be governed by and construed in accordance with the laws of Switzerland.
16. MISCELLANEOUS
16.1. Assignment. Buyer shall not assign this Agreement without the prior written consent of Company. Any assignment or transfer in violation of this Section will be void. Company may assign this Agreement to an affiliate. Subject to the foregoing, this Agreement, and the rights and obligations of the Parties hereunder, will be binding upon and inure to the benefit of their respective successors, assigns, heirs, executors, administrators and legal representatives.
16.2. Entire Agreement. This Agreement, including the exhibits attached hereto and the materials incorporated herein by reference, constitutes the entire agreement between the Parties and supersedes all prior or contemporaneous agreements and understandings, both written and oral, between the Parties with respect to the subject matter hereof, including, without limitation, any public or other statements or presentations made by Company about the KRYPTNEX Tokens or the Project.
16.3. Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid, inoperative, or unenforceable for any reason, the provision shall be modified to make it valid and, to the extent possible, effectuate the original intent of the Parties as closely as possible in an acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the fullest extent possible.
16.4. Modification of Agreement. Company may modify this Agreement at any time by posting a revised version on the Website, available at https://www.kryptnex.ch. The modified terms will become effective upon posting. It is Buyer’s responsibility to check the Website regularly for modifications to this Agreement. This Agreement was last modified on the date listed at the beginning of this Agreement.
16.5. Termination of Agreement; Survival. Company reserves the right to terminate this Agreement, in its sole discretion, in the event that Buyer breaches this Agreement. Upon termination of this Agreement: (a) all of Buyer’s rights under this Agreement immediately terminate; and (b) Buyer is not entitled to a refund of any amount paid.
16.6. No Waivers. The failure by Company to exercise or enforce any right or provision of this Agreement will not constitute a present or future waiver of such right or provision nor limit Company’s right to enforce such right or provision at a later time. All waivers by Company must be unequivocal and in writing to be effective.
16.7. No Partnership; No Agency; No Third Party Beneficiaries. Nothing in this Agreement and no action taken by the Parties shall constitute, or be deemed to constitute, a partnership, association, joint venture or other co-operative entity between the Parties. Nothing in this Agreement and no action taken by the Parties pursuant to this Agreement shall constitute, or be deemed to constitute, either Party the agent of the other Party for any purpose. No Party has, pursuant to this Agreement, any authority or power to bind or to contract in the name of the other Party. This Agreement does not create any third party beneficiary rights in any person.
16.7. Electronic Communications. Buyer agrees and acknowledges that all agreements, notices, disclosures, and other communications that Company provides Buyer pursuant to this Agreement or in connection with or related to Buyer’s purchase of KRYPTNEX Tokens, including this Agreement, may be provided by Company, in its sole discretion, to Buyer, in electronic form.
Latest update: March 14, 2021