Terms of Use

These Terms and Conditions ("Terms") govern your use of the services provided by Encapsulate Limited ("Company"), a private limited company incorporated in Ras Al Khaimah, United Arab Emirates. By accessing or using the Company’s services, you ("User") agree to adhere to these Terms. If you do not agree with these Terms, please refrain from using the Company’s services. We encourage you to thoroughly read these Terms to understand your rights and obligations.

For any inquiries, please contact us at contact@encapsulate.xyz

1. Definitions and Interpretation

1.1 Definitions: The terms defined below shall apply throughout these Terms:

• Affiliate: Any entity that controls, is controlled by, or shares common control with another entity, including but not limited to parent companies, subsidiaries, and joint ventures.
• Block Rewards: Newly generated tokens awarded to participants as a reward for their contributions to the network, which are distributed in accordance with the consensus mechanisms established by the Network.
• Disputes: All claims, disputes, or controversies arising from or related to these Terms or the services offered by the Company, as detailed in section 6.2, including any disagreements over the interpretation of these Terms.
• Governmental Authority: Any governmental entity, including local, state, and national agencies, exercising legislative, judicial, or administrative functions.
• hereof, herein, hereunder, hereby: Refers to these Terms in their entirety, not any specific provision.
• include(s), including: Means "including, but not limited to," unless specified otherwise, thereby expanding the interpretation of the terms that follow.
• Laws: All relevant laws, statutes, regulations, ordinances, and rules enacted by any applicable Governmental Authority, including any applicable international laws.
• Network: A "Proof-of-Stake Network" is a blockchain platform where transactions are validated by a distributed network of software clients utilizing a consensus mechanism that requires users to stake tokens as collateral.
• or: Should be interpreted as "and/or," depending on context, ensuring flexibility in interpretation.
• Person: Any individual or legal entity, including government entities and organizations, and shall also encompass natural persons and legal persons.
• Service Fees: Charges for services provided by Validator Nodes within the Network, generally calculated as a percentage of Block Rewards earned by the User.

2. Services

2.1 Description: The Company provides token delegation services on Proof-of-Stake Networks. These services include but are not limited to:

• Transaction Validation: Ensuring transactions are processed accurately and securely on the blockchain, which involves confirming that transactions comply with the rules of the Network.
• Token Staking: Allowing users to stake their tokens, thereby contributing to the network’s security and operations. Staked tokens are locked for a certain period, depending on the Network’s protocols.
• Earning Block Rewards: Enabling users to earn rewards based on the number of tokens staked and the overall performance of the network. These rewards are distributed periodically according to the rules set forth by the Network.

2.2 Eligibility: Users must be at least 18 years of age and possess the legal capacity to enter into binding agreements. Compliance with all applicable laws and regulations in the user's jurisdiction is mandatory.

2.3 Account Registration: Users are required to create an account to access the Company’s services. During registration, users must provide accurate and complete information and are responsible for keeping this information up to date. Users must safeguard their account credentials and are fully responsible for all activities conducted under their account.

2.4 Account Security: Users are responsible for maintaining the security of their accounts. This includes:

• Password Management: Users should choose strong passwords and change them regularly. Passwords should not be shared with anyone.
• Two-Factor Authentication: Users are encouraged to enable two-factor authentication (2FA) for added security.
• Reporting Unauthorized Access: Users must report any unauthorized access or security breaches to the Company immediately.

2.5 Service Availability: The Company aims to provide reliable services; however, it does not guarantee uninterrupted or error-free service. Users acknowledge that the Company may experience downtime for maintenance, upgrades, or other unforeseen circumstances.

2.6 Modification of Services: The Company reserves the right to modify or discontinue any part of the services, temporarily or permanently, with or without notice to users. The Company shall not be liable for any modification, suspension, or discontinuance of the services.

2.7 Third-Party Services: The Company may utilize third-party services or platforms to provide its services. Users agree to comply with any additional terms imposed by these third parties.

3. User Responsibilities

3.1 Legal Compliance: Users agree to comply with all relevant laws and regulations, including anti-money laundering and counter-terrorist financing laws, when utilizing the Company’s services.

3.2 Prohibited Conduct: Users must refrain from any activities that could harm, disrupt, or interfere with the Company’s services. Prohibited activities include, but are not limited to:

• Using the services for unlawful purposes.
• Attempting unauthorized access to any part of the services or related systems.
• Engaging in actions that could damage, disable, or impair the services or disrupt other users’ access.

3.3 User Conduct: Users are expected to engage respectfully with the Company and other users. Any form of harassment, discrimination, or abusive behavior is strictly prohibited and may result in suspension or termination of services.

3.4 Content Responsibilities: Users may not upload, post, or share any content that is defamatory, obscene, or otherwise objectionable. Users are solely responsible for any content they share or create while using the Company’s services.

3.5 Feedback and Suggestions: Users are encouraged to provide feedback and suggestions regarding the Company’s services. Any feedback provided may be used by the Company without obligation or compensation to the User.

3.6 Indemnification: Users agree to indemnify and hold harmless the Company and its Affiliates from any claims, losses, liabilities, damages, or expenses, including legal fees, arising out of or related to the User's use of the services or violation of these Terms.

3.7 Duty to Update: Users must promptly update their account information if there are any changes to their contact details, payment methods, or other relevant information.

4. Fees and Payments

4.1 Service Fees: Users acknowledge and agree to pay the Service Fees associated with the Company’s services. These fees are generally deducted directly from the Block Rewards earned.

4.2 Payment Terms: The Company reserves the right to automatically deduct Service Fees from any Block Rewards earned by the User, without prior notice. Users agree to understand the fee structure before utilizing the services.

4.3 Changes to Fees: The Company may adjust the Service Fees at its discretion. Users will be notified of any changes via email or through the Company’s website. Continued use of the services after such changes constitutes acceptance of the new fee structure.

4.4 Payment Methods: Users may be required to provide valid payment information to facilitate payments of Service Fees. The Company accepts various payment methods, which may be updated from time to time.

4.5 Refund Policy: The Company does not provide refunds for Service Fees once they have been deducted. Users are encouraged to review the terms and conditions carefully before proceeding with any transactions.

4.6 Tax Responsibilities: Users are responsible for any taxes, fees, or charges imposed by any governmental authority related to their use of the Company’s services. Users agree to indemnify the Company for any claims arising from their failure to pay such taxes.

4.7 Payment Security: The Company implements reasonable security measures to protect payment information. However, users acknowledge that no method of transmission over the internet or method of electronic storage is 100% secure, and the Company cannot guarantee absolute security.

5. Termination

5.1 User Termination: Users may terminate their use of the services at any time by discontinuing the delegation of their tokens. Upon termination, the User will forfeit any unclaimed Block Rewards.

5.2 Company Termination: The Company retains the right to terminate or suspend a User's access to the services, with or without cause or prior notice, in order to maintain compliance with these Terms and ensure the integrity of the services.

5.3 Effect of Termination: Following termination, all provisions of these Terms that should reasonably survive termination shall remain in effect, including ownership rights, warranty disclaimers, indemnities, and limitations of liability.

5.4 Post-Termination Obligations: Upon termination of the User's account, all rights granted to the User under these Terms will immediately cease. Users will remain liable for any outstanding obligations incurred prior to termination.

5.5 Reinstatement: The Company may, at its sole discretion, reinstate a terminated account under specific circumstances, provided the User complies with all Terms and conditions.

5.6 Data Retention: Upon termination of the account, the Company may retain certain data as required by law or for legitimate business purposes.

6. Dispute Resolution

6.1 Governing Law: These Terms are governed by and construed in accordance with the laws of the United Arab Emirates, without regard to its conflict of law principles.

6.2 Dispute Resolution: Any disputes arising from or related to these Terms or the services will be resolved through binding arbitration according to the rules of a recognized Arbitration Organization. The arbitration will occur in Ras Al Khaimah, United Arab Emirates, with proceedings conducted in English. Both parties agree to waive their right to a jury trial or to participate in a class action.

6.3 Notification of Disputes: Prior to initiating arbitration, the parties agree to notify each other of any disputes in writing and attempt to resolve them amicably within a reasonable time frame.

6.4 Arbitration Costs: Each party will be responsible for its own costs and expenses in relation to the arbitration, including legal fees, unless the arbitrator determines that a different allocation of costs is warranted.

6.5 Limitation on Actions: Users agree that any claims arising out of these Terms or the services must be filed within one year after the cause of action arose, or the claim will be barred.

7. Miscellaneous

7.1 Entire Agreement: These Terms constitute the complete agreement between the User and the Company regarding the use of the services and supersede all prior agreements, whether written or oral, related to the subject matter herein.

7.2 Severability: If any provision of these Terms is determined to be invalid or unenforceable by a court of competent jurisdiction, the remaining provisions will continue in full force and effect, and the invalid provision will be modified to reflect the parties' intentions to the maximum extent permissible.

7.3 Amendments: The Company reserves the right to amend these Terms at any time. Users will be notified of significant changes via email or through the Company’s website. Continued use of the services after any amendments constitutes acceptance of the revised Terms.

7.4 Waiver: No waiver of any term or condition of these Terms shall be considered a further or continuing waiver of such term or condition or any other term or condition. The failure of the Company to assert any right under these Terms shall not constitute a waiver of such right.

7.5 Force Majeure: The Company shall not be liable for any failure to fulfill its obligations under these Terms if such failure arises from any cause beyond its reasonable control, including but not limited to mechanical, electronic, or communications failure or degradation.

7.6 Assignment: The Company may assign its rights and obligations under these Terms to any party at any time without notice to the User. Users may not assign their rights or obligations without the prior written consent of the Company.

7.7 Headings: The section headings in these Terms are for convenience only and shall not affect the interpretation of these Terms.

7.8 Notices: All notices or other communications required or permitted under these Terms shall be in writing and shall be deemed to have been duly given when delivered in person, sent by email, or sent by registered or certified mail.

7.9 Relationship of the Parties: The relationship between the User and the Company is that of independent contractors. Nothing in these Terms shall be construed to create a partnership, joint venture, or agency relationship.

8. Intellectual Property

8.1 Ownership: The Company owns all rights, titles, and interests in and to its services, including all intellectual property rights therein. Users acknowledge that they have no rights in or to the services other than the right to use them in accordance with these Terms.

8.2 Trademarks: All trademarks, service marks, logos, and trade names used in connection with the services are the property of the Company or its Affiliates. Users are prohibited from using any of these without prior written consent from the Company.

8.3 User Content: Users retain ownership of any content they submit or create using the Company’s services. However, by submitting content, users grant the Company a worldwide, non-exclusive, royalty-free, perpetual license to use, modify, and display such content in connection with the services.

8.4 Copyright Policy: The Company respects the intellectual property rights of others. If a User believes that their copyright has been infringed, they should contact the Company with a notice including specific information about the allegedly infringing material.

9. Risk Disclosure

9.1 Market Risk: Users acknowledge that the use of blockchain technology and digital assets involves significant risks, including market volatility and potential losses. Users should conduct their own research and consider their risk tolerance before participating.

9.2 Regulatory Risks: The regulatory environment surrounding blockchain and digital assets is evolving and may vary by jurisdiction. Users understand that changes in laws and regulations could adversely impact their use of the services.

9.3 Technical Risks: Users acknowledge that the services are subject to technical risks, including potential failures of software, hardware, or internet connections. The Company does not warrant that the services will be error-free or uninterrupted.

9.4 Security Risks: Users are responsible for maintaining the security of their accounts and private keys. The Company is not liable for any losses resulting from unauthorized access to a User's account.

10. Limitation of Liability

10.1 Exclusion of Damages: To the fullest extent permitted by law, the Company and its Affiliates shall not be liable for any indirect, incidental, special, consequential, or punitive damages arising from or related to these Terms or the use of the services.

10.2 Cap on Liability: In no event shall the Company’s liability to a User exceed the total amount of Service Fees paid by the User in the six months preceding the event giving rise to the liability.

10.3 Disclaimer of Warranties: The services are provided on an "as is" and "as available" basis, without any warranties of any kind, either express or implied. The Company disclaims all warranties, including but not limited to implied warranties of merchantability and fitness for a particular purpose.

11. Governing Language

11.1 Language of the Terms: These Terms are provided in English. In the event of any conflict between the English version and any translated version, the English version shall prevail.