Tokenomy’s Earn Service (“Earn”) offers Tokenomy.com Users the opportunity to potentially earn a return by depositing certain Digital Assets into an Earn Service Account (“Earn Account”).
When you use Earn, you authorize Tokenomy to deposit into your Account any earned return on a Digital Asset held in your Earn Account in accordance with the rules of the platform.
You shall abide by all relevant laws and regulations in regard to the Digital Assets that you hold in your Earn Account. In the event that you violate the rules of the platform, Tokenomy has the right to take necessary steps including, but not limited to, freezing your Earn Account or deducting any Digital Assets previously rewarded to you.
When you use Earn, you acknowledge the risks of investing in cryptocurrencies. You agree that all of your investment activities conducted on the platform represent your true investment intentions and that you unconditionally accept the potential risks of your investment decisions.
Tokenomy will use commercially reasonable efforts to ensure that the Earn execution system runs stably and effectively. However, network delays, computer system failures and force majeure events may lead to delay, suspension or deviation in the execution of Earn. Tokenomy does not bear any responsibility if the final execution does not match your expectations due to any of the above referenced factors.
Using Earn does not guarantee a User any interest proceeds or any fixed rate of return. Tokenomy and/or any third party affiliate will use reasonable efforts to stake any Digital Assets held in your Earn Account. Earn provides an estimated rate of return which can change at any time without prior notice.
Interest Calculation. When using Earn, you have the opportunity to earn interest on the Digital Assets held in your Earn Account based upon the applicable periodic interest rate. The applicable periodic interest rate is calculated by dividing the stated annual interest rate by three hundred and sixty five (365), then multiplied by the relevant duration of the product subscription. All interest will be paid in the same Digital Asset that was used to subscribe. Unless specifically mentioned per product or agreed upon by Tokenomy in writing, interest earned will not accrue additional interest, and you will continue to accrue interest based solely upon the subscribed Digital Asset held in your Earn Account. We will determine the applicable interest rates for each product in our sole discretion, and you acknowledge and agree that such rates may fluctuate.
Consent to Rehypothecate. Except where prohibited or limited by applicable law, in consideration for any interest earned through the use of our Services, you grant Tokenomy the right, without further notice to you, to pledge, repledge, hypothecate, rehypothecate, sell, lend, or otherwise transfer or use any portion of the Digital Assets held in your Earn Account, separately or together with other property, with all attendant rights of ownership for any period of time without retaining in Tokenomy’s possession and/or control a like amount of Digital Assets. You acknowledge that, with respect to Digital Assets used by Tokenomy pursuant to this paragraph, you may not be able to exercise certain rights of ownership and that Tokenomy may receive compensation in connection with lending or otherwise using cryptocurrency in its business to which you will have no entitlement.
Premature Withdrawals. Premature withdrawals, whether in whole or in part, may be made only with Tokenomy’s consent and upon such terms as Tokenomy may in its absolute discretion impose from time to time, including, without limitation, no payment of interest, recovery of interest paid, payment of Tokenomy’s cost of replacing funds, and/or the payment of administration fees.
Network Control. Tokenomy does not own or control any of the underlying software through which blockchain networks are formed and Digital Assets are created and transacted. In general, the underlying software for blockchain networks is open source such that anyone can use, copy, modify, and distribute it. By using Earn, you understand and acknowledge that Tokenomy is not responsible for the operation of the underlying software and networks that support Digital Assets and that Tokenomy makes no guarantee of functionality, security, or availability of such software and networks.
Tokenomy reserves the right to suspend, modify or terminate any Earn Account at any time.
Earn offers returns over a predetermined period of time and you will not be able to access your Digital Assets for the duration of the subscription. Using Earn carries a number of potential risks including credit and default risk, interest risk and liquidity risk.
Credit risk is the risk of not getting paid interest and/or principal when it becomes due as the result of a default event.
Default risk can happen when the User may lose both interest and principal.
Interest rate risk refers to the potential for investment losses resulting from a change in interest rates. Interest rate risk may arise as the supply and demand of Digital Asset lending activities change, which may directly impact interest rates.
Liquidity risk refers to the lack of marketability of a Digital Asset such that it cannot be bought or sold quickly enough to prevent or minimise a loss. It is common for certain Digital Assets to suffer from poor liquidity. Tokenomy does not warrant that there is an active trading market or that the prices on Tokenomy’s exchange will at any time be the best price in the market.
You understand and acknowledge that Tokenomy’s relationship with you in regard to Earn is solely as an execution-only broker/dealer or as a counterparty to you.