Terms of Service
TrustedStake User Agreement and Comprehensive Risk Disclosure
1. Introduction
Welcome to TrustedStake. By accessing or using our services, you agree to be bound by this User Agreement and Comprehensive Risk Disclosure ("Agreement"). This Agreement governs your use of TrustedStake's non-custodial staking services within the Bittensor ecosystem, including interactions with Dynamic TAO (dTAO) and associated subnet tokens. Please read this Agreement carefully before proceeding.
2. Eligibility
Age Requirement: You must be at least 18 years old or the age of majority in your jurisdiction to use our services.
Legal Capacity: You represent and warrant that you have the legal capacity to enter into this Agreement.
Jurisdictional Limitations: Our services may not be available or appropriate for use in all jurisdictions. It is your responsibility to ensure that your use of our services complies with all applicable laws, regulations, and ordinances in your jurisdiction.
3. Acknowledgment of Risks
By using TrustedStake's product, you acknowledge and accept the inherent risks involved in digital asset transactions, staking, and interactions with decentralized networks and smart contracts. These risks include, but are not limited to, the specific risks outlined below. You understand that the value of digital assets can fluctuate dramatically and that you could lose part of or all of your investment.
4. Comprehensive Risk Disclosure
4.1 Trading Risks
Market Volatility: Digital asset markets, including the Bittensor (TAO) and Dynamic TAO (dTAO) ecosystems, are highly volatile. Prices can fluctuate significantly in short periods due to various factors, including changes in technology, market sentiment, regulatory developments, and macroeconomic events.
Complexity of dTAO: The dTAO system introduces additional complexities, including the management of stakes across multiple subnets, which can impact the ability to make informed trading decisions.
Game Theoretic Strategies: The Bittensor ecosystem requires understanding complex game theoretic strategies to optimize returns. Without sufficient expertise, desired results may not be achieved.
No Guarantee of Profit: Past performance is not indicative of future results. There is no guarantee that your staking or investment activities will be profitable. You may lose some or all of your staked TAO or other digital assets.
Execution Risks: Market orders may not execute at the desired price due to market conditions and random transaction finality, including insufficient liquidity or rapid price movements.
4.2 Smart Contract Risks
Technical Vulnerabilities: Smart contracts are self-executing contracts with the terms of the agreement directly written into code. They may contain bugs, coding errors, or security vulnerabilities that could result in the loss of assets. For example, a flaw in a smart contract could be exploited to drain funds or lock users out of their assets.
Future Implementations: Although our initial platform does not utilize smart contracts, future updates may incorporate them for revenue collection, new products, or liquid staking derivatives. These future implementations may introduce new risks.
Immutable Transactions: Transactions executed via smart contracts are generally irreversible. If you send assets to the wrong address or execute a transaction in error, you may not be able to recover your assets.
Third-Party Dependencies: Smart contracts may rely on external data sources (oracles) or interactions with other contracts, introducing additional risks if those sources are compromised.
No Warranty: TrustedStake does not warrant that smart contracts used in connection with our services are free of errors or vulnerabilities.
4.3 Liquidity Risks
Low Liquidity Assets: Some subnet tokens or digital assets within the Bittensor ecosystem may have low liquidity, meaning there may not be enough buyers or sellers to execute your trades promptly or at favorable prices.
Difficulty Exiting Positions: In low liquidity scenarios, you may find it difficult to sell your assets or unstake your tokens, which could result in significant losses if market conditions change rapidly.
Staking and Unstaking Delays: Due to the nature of the Bittensor network and dTAO, there may be delays in staking or unstaking operations, affecting your ability to respond to market changes.
Market Depth Limitations: Large orders can impact the market price due to insufficient market depth, leading to less favorable execution prices.
Risk of Suspension: Trading or staking activities may be suspended or limited due to network conditions, upgrades, or regulatory requirements, affecting your ability to access or move your assets.
4.4 Front Running Risks
Transaction Transparency: Transactions on decentralized networks are generally transparent and visible in the transaction pool before they are confirmed. This visibility allows malicious actors to observe pending transactions and attempt to execute their own transactions ahead of yours—a practice known as front running.
Random Transaction Finality: Unlike Ethereum, where transaction finality is predictable and often based on gas fees, the Bittensor network introduces a concept of random transaction finality. This feature makes it less straightforward for front-running bots to prioritize specific transactions, as it reduces the predictability that bad actors rely upon.
Adverse Effects: Even with the randomness in transaction finality, front running remains a risk. Malicious actors might still observe transactions and try to interfere by submitting their own transactions. This could lead to unfavorable trade execution prices, increased slippage, or even failed transactions. For example, if a malicious entity submits a similar transaction with a higher priority, it may still cause your transaction to be delayed or executed at a worse price.
MEV Bots: The use of Maximal Extractable Value (MEV) bots by participants in the network can still be a factor, as these bots are designed to detect and exploit transactions in the mempool. While random transaction finality adds complexity, it does not fully eliminate the possibility of MEV-related front running.
4.5 Slippage Risks
Price Changes During Execution: Slippage occurs when the price at which your order is executed differs from the price at which it was submitted. In highly volatile markets or low liquidity conditions, slippage can be significant.
Impact on Staking and Unstaking: Slippage can affect the amount of subnet tokens received when staking TAO or the amount of TAO received when unstaking subnet tokens. This can result in receiving fewer assets than anticipated.
Complexity of dTAO Pools: The constant product formula used in dTAO pools (similar to Uniswap's x*y=k) means that large trades can result in significant slippage due to the pool's size and liquidity.
Mitigation Limitations: While some platforms like TrustedStake offer features to limit slippage, such as setting maximum slippage tolerances, these features may not be available or effective in all situations.
4.6 Price Impact Risks
Market Influence of Large Trades: Large trades or staking activities can significantly impact the market price of an asset, particularly in pools with low liquidity. Your own transactions may move the market against you.
Adverse Price Movements: Executing large orders may result in less favorable prices for subsequent trades or for other users, potentially leading to market manipulation concerns.
Strategic Trading Risks: Engaging in strategies that attempt to minimize price impact may not be successful and could result in additional costs or losses.
Whale Influence: Large holders ("whales") may influence market prices and emission distributions, potentially disadvantaging smaller participants.
4.7 Non-Fungibility and Future Changes
Token Non-Fungibility: Subnet tokens within the Bittensor ecosystem are currently non-transferable and non-fungible. This means they cannot be exchanged or traded outside of their specific subnet context.
Potential for Change: The non-fungibility and transferability of subnet tokens may change in the future due to protocol updates, the introduction of smart contracts, or other developments. Such changes could affect the value and utility of your tokens.
Protocol Upgrades: Future upgrades to the Bittensor network, including EVM support and smart contract functionality, may alter how tokens function, potentially impacting your holdings.
Lack of Market for Tokens: Non-transferable tokens may not have a secondary market, making it difficult to ascertain their value or convert them back to TAO or other assets.
4.8 Regulatory Risks
Regulatory Uncertainty: The legal and regulatory landscape for digital assets is evolving rapidly. New laws, regulations, or interpretations may materially and adversely affect the value and legality of digital assets and related services.
Jurisdictional Variations: Regulations vary significantly across jurisdictions. Certain activities involving digital assets may be restricted or prohibited in your jurisdiction.
Compliance Obligations: You are responsible for understanding and complying with all laws and regulations applicable to your activities, including anti-money laundering (AML), counter-terrorist financing (CTF), and tax obligations.
Potential for Enforcement Actions: Regulatory authorities may conduct investigations or take enforcement actions that could impact your ability to access or use our services.
4.9 Security Risks
Responsibility for Security Measures: You are solely responsible for implementing appropriate security measures to protect your account, private keys, and devices.
No Recovery of Lost Credentials: If you lose access to your private keys or account credentials, you may permanently lose access to your digital assets. TrustedStake cannot recover lost credentials.
Multi-Signature Escrow Risks: Our revenue model involves the use of multi-signature escrow accounts. While this enhances security, it also requires that all parties approve transactions, which may introduce delays or additional risks if any party fails to cooperate.
4.10 Technological Risks
Network Failures: The Bittensor network or associated technologies may experience failures, disruptions, or delays due to technical issues, attacks, or unforeseen events.
Software Bugs and Errors: The software underlying the Bittensor network, dTAO, and our services may contain bugs or errors that could result in unintended behavior or security vulnerabilities.
Dependency on Third-Party Services: Our services may rely on third-party providers, such as internet service providers, hosting services, or blockchain networks, which may experience outages or disruptions beyond our control.
Scalability and Performance Issues: As the Bittensor network evolves and more subnets are added, scalability and performance issues may arise, affecting transaction processing times and service reliability.
4.11 Tax Implications
Tax Liability: Transactions involving digital assets may have tax consequences, including income tax, capital gains tax, or other tax liabilities.
Complex Tax Treatment: The tax treatment of digital assets is complex and may vary by jurisdiction. Activities such as staking, trading, and receiving emissions may be taxable events.
Responsibility for Reporting: You are responsible for determining, reporting, and paying any taxes due as a result of your activities. TrustedStake does not provide tax advice.
4.12 No Insurance
No Government Protection: Digital assets are generally not backed by any government or central bank. They are not covered by insurance protections such as the Federal Deposit Insurance Corporation (FDIC) or Securities Investor Protection Corporation (SIPC) in the United States, or similar protections elsewhere.
Loss of Assets: In the event of loss or theft of digital assets, there may be no recourse or recovery mechanisms available.
4.13 Revenue Model Risks
Profit-Dependent Fees: Our revenue model involves earning commissions only when users make a profit. While this aligns our interests with yours, it may also result in delays or disputes over profit calculations and fee deductions.
Escrow Account Management: The use of multi-signature escrow accounts for fee reservations introduces complexity and requires cooperation among all parties.
Third-Party Involvement: The involvement of a trusted third party in the escrow process may introduce additional risks, including potential security vulnerabilities or coordination challenges.
No Guarantee of Profit: Our optimization strategies and algorithms aim to maximize returns, but there is no guarantee that they will be successful. Market conditions, network performance, and other factors may result in losses.
4.14 Operational Risks
Reliance on Proprietary Algorithms: Our staking strategies rely on proprietary algorithms and analysis, which may not perform as expected or may contain errors.
Human Error: Operational mistakes, including errors in executing staking strategies, managing accounts, or processing transactions, could result in losses.
Business Continuity Risks: Events such as natural disasters, pandemics, or other disruptions could affect our ability to provide services.
5. User Responsibilities
Due Diligence: You agree to conduct your own research and due diligence before making any investment or staking decisions through our platform. This includes understanding the functionalities, risks, and regulations associated with digital assets, dTAO, Bittensor, and our services.
Compliance with Laws: You agree to comply with all applicable laws, regulations, and ordinances, including those related to AML, CTF, and economic sanctions.
Accurate Information: You agree to provide accurate and complete information when using our services and to promptly update any information that becomes outdated.
Account Security: You are responsible for maintaining the confidentiality and security of your account credentials, private keys, and devices. Do not share your credentials with others.
Understanding of the Bittensor Ecosystem: You acknowledge that participation in the Bittensor network and dTAO system requires a certain level of technical and strategic understanding.
Engagement with Subnets: You are responsible for monitoring your stake and balance on TrustedStake’s platform and understanding the performance metrics and risks associated.
6. Financial and Investment Considerations
6.1 Nature of Services
Automated Staking Management: TrustedStake provides automated staking management services that involve allocating your staked TAO tokens across various subnets within the Bittensor ecosystem based on predefined performance metrics, proprietary algorithms, and expert analysis.
Objective to Optimize Returns: Our services aim to maximize your returns by leveraging key performance indicators (KPIs) and strategies developed through extensive research and experience in the Bittensor ecosystem.
Non-Custodial Solution: While we manage staking activities on your behalf, you retain full control and ownership of your tokens through a trustless delegation mechanism using the Substrate proxy pallet.
6.2 No Personalized Investment Advice
General Information and Strategies: The information and strategies we provide are based on general performance indicators and are applied uniformly across users without consideration of your individual financial situation, investment objectives, or risk tolerance.
No Personalized Recommendations: We do not provide personalized financial advice or recommendations tailored to your specific circumstances. Our services should not be construed as financial planning or investment advisory services.
6.3 User Responsibility
Independent Decision-Making: You are solely responsible for making your own decisions regarding the use of our services. Before using our services, you should carefully consider whether staking TAO tokens and participating in the Bittensor ecosystem are appropriate for you in light of your financial condition and investment objectives.
Consultation with Professionals: We strongly encourage you to consult with qualified financial, investment, tax, or legal professionals for advice tailored to your personal situation.
6.4 No Fiduciary Relationship
Scope of Relationship: While we strive to act in your best interests and align our success with yours through our profit-dependent revenue model, the use of our services does not establish a fiduciary or advisory relationship between you and TrustedStake, except where such a relationship is imposed by law.
Limitations of Duty: Our responsibilities are limited to providing the staking management services as described in this Agreement. We do not assume any fiduciary duties beyond those required by applicable law.
6.5 Risk Acknowledgment
Understanding Risks: You acknowledge that staking and managing digital assets involve significant risks, including the potential loss of all staked assets.
No Guarantees: We do not guarantee any specific results, returns, or profits from the use of our services. Past performance is not indicative of future results.
7. Limitation of Liability
No Liability for Losses: To the fullest extent permitted by law, TrustedStake and its affiliates, officers, directors, employees, and agents shall not be liable for any direct, indirect, incidental, special, consequential, or exemplary damages, including but not limited to loss of profits, goodwill, use, data, or other intangible losses resulting from:
Your use of or inability to use our services.
Any unauthorized access to or alteration of your transmissions or data.
Statements or conduct of any third party on our services.
Any other matter relating to our services.
No Warranty: TrustedStake provides services on an "as is" and "as available" basis without any warranties or guarantees of any kind, whether express or implied.
8. Indemnification
You agree to indemnify, defend, and hold harmless TrustedStake and its affiliates, officers, directors, employees, and agents from and against any and all claims, liabilities, damages, losses, costs, and expenses (including reasonable attorney's fees) arising out of or related to:
Your use of our services.
Your violation of this Agreement.
Your violation of any applicable laws or regulations.
Your infringement of any third-party rights, including intellectual property rights.
9. Changes to the Agreement
Right to Modify: TrustedStake reserves the right to modify or update this Agreement at any time in its sole discretion.
Notification of Changes: Any changes will be effective immediately upon posting on our website or through other communication methods. We will indicate the date of the latest revision at the top of the Agreement.
Review of Changes: It is your responsibility to review the Agreement periodically. Continued use of our services after any changes constitutes your acceptance of the new terms.
10. Termination
By User: You may terminate this Agreement at any time by discontinuing use of our services and unstaking your assets, subject to any applicable terms and conditions.
By TrustedStake: We may suspend or terminate your access to our services at any time, with or without cause or notice, including for violations of this Agreement or applicable laws.
Effect of Termination: Upon termination, all rights granted to you under this Agreement will cease immediately. Sections of this Agreement that by their nature should survive termination shall continue to be in effect.
11. Governing Law and Dispute Resolution
Governing Law: This Agreement shall be governed by and construed in accordance with the laws of [Applicable Jurisdiction], without regard to its conflict of law provisions.
Arbitration: Any disputes arising out of or relating to this Agreement or your use of our services shall be resolved through binding arbitration in accordance with the rules of [Arbitration Institution], except where prohibited by law.
Class Action Waiver: You agree to resolve disputes on an individual basis and waive the right to participate in a class action lawsuit or class-wide arbitration.
12. Privacy Policy
Your privacy is important to us. Please review our Privacy Policy to understand how we collect, use, disclose, and protect your personal information. By using our services, you consent to the practices described in the Privacy Policy.
13. Intellectual Property
Ownership: All content, trademarks, service marks, trade names, logos, and intellectual property contained on our website or in our services are the property of TrustedStake or its licensors.
Limited License: We grant you a limited, non-exclusive, non-transferable license to access and use the content for personal or internal business purposes. Any other use is prohibited without our prior written consent.
User Contributions: If you provide feedback, suggestions, or other input to TrustedStake, you grant us a worldwide, perpetual, irrevocable, royalty-free license to use and incorporate such feedback into our services.
14. Severability
If any provision of this Agreement is found to be invalid or unenforceable by a court of competent jurisdiction, such provision shall be severed, and the remaining provisions shall remain in full force and effect.
15. Entire Agreement
This Agreement constitutes the entire agreement between you and TrustedStake regarding your use of our services and supersedes any prior agreements or understandings, whether written or oral.
16. Contact Information
If you have any questions or concerns about this Agreement or our services, please contact us at:
Email: hello@trustedstake.ai
17. Acknowledgment and Acceptance
By checking the boxes below and proceeding, you confirm that you have carefully read, understood, and agree to be bound by the terms and conditions of this Agreement, including the Comprehensive Risk Disclosure.
Last updated