Earn Terms

V1 Updated August 23, 2021

Earn Terms

These Altafin Earn Terms of Use (“Earn Terms”) govern your access to and use of the Earn service, which allows for the lending of capital, initially contributed in the form of certain digital assets, to Altafin in exchange for interest payments and a return on capital in the form of USD Coin (USDC) upon maturity of the loan, and the creation of contracts memorializing the creditor-debtor relationship (the “Earn Services”). In order to use the Earn Services, you must agree to these Earn Terms as well as the Website Terms located at https://altafin.co/legal/earn-terms and Privacy Policy available at https://altafin.co/legal/privacy-policy on behalf of yourself or the entity that you represent, and you represent and warrant that you have the right, authority, and capacity to do so. Аll undefined and capitalized terms shall have the same meaning as the one given to them in the Website Terms. 

  1. Eligibility
    1. You may enter into these Earn Terms and use the Earn Services only if all of the conditions below are met:
      1. You are an Eligible Person as defined in the Website Terms;
      2. You have successfully applied for and opened an Altafin Account in accordance with Section 2 of the Website Terms;
      3. If you are a citizen or resident of the U.S., you are an Accredited Investor as defined under Rule 501(a) of the Securities Act of 1933;
      4. You are age 18 or over;
      5. You have not been identified as a Specially Designated National or placed on any sanctions list by the U.S. Treasury Department’s Office of Foreign Assets Control, the U.S. Commerce Department, or the U.S. Department of State; and you will not use our Website to conduct any illegal or illicit activity; and
      6. You have not been placed on any of the following lists: European External Action Service Consolidated Financial Sanctions List; EU Terrorist List; FATF Non-Cooperative Countries and Territories; Federal Bureau of Investigation Most Wanted Terrorists & Seeking Information; Bank of England Sanctions List; HM Treasury Sanctions List; Politically Exposed Persons List; World Bank Ineligible Firms; Department of Foreign Affairs and Trade Consolidated List.
    2. Your Altafin Account is only deemed to be opened once you receive written confirmation from us regarding its opening. We have no responsibility to you regarding your Altafin Account until you have received such written confirmation. In the event we subsequently ascertain you have not met or do not meet any of the above conditions anymore, we may suspend the provision of the Earn Services to you, close your Altafin Account, and/or restrict your use of the Earn Service.
    3. At any time, at our sole and absolute discretion, without liability to you, we can: (i) refuse your request to use the Earn Services; (ii) change the conditions for entering into this agreement or use of the Earn Services; (iii) suspend the provision of the Earn Services; or (iv) change, update, remove, cancel, suspend, disable or discontinue any feature, component, content, incentive or referral plan of the Earn Services.
  2. The Earn Services
    1. The Earn Services allow you to loan capital to Altafin, initially contributed in the form of eligible digital assets, to receive a return on the capital loaned in the form of the USDC equivalent of the digital asset loaned (as determined at the time of such loan to Altafin),and to earn interest on the USDC equivalent amount of any such loaned digital assets in your Altafin Account subject to the terms of an Investor Agreement (the “Agreement”) and a promissory note (the “Note”) both of which are to be agreed to and signed by you and Altafin. The precise terms of the Agreement and Note will be provided to you before you execute the respective documents. You may access the Earn Service, and Altafin may grant you a Note and related agreements (the “Earn Contracts”) that specify the terms of the agreement(s) between you and Altafin if you satisfy the following:
      1. You have completed the Earn application form on the Website and chosen the desired term lengths of the Earn Contract; and
      2. You have agreed to these Earn Terms.
    2. The list of eligible digital assets are indicated on the Website and in your Altafin Account, and are subject to revision from time to time, at our sole and absolute discretion.
  3. Funding your Altafin Account
    1. You can fund your Altafin Account by transferring eligible digital assets to the wallet address provided in your Altafin Account. Your digital assets will be accepted by Altafin, and then will be transferred to Altafin, which will act as holder of your Altafin Account.
  4. Interest
    1. Interest will be paid every 7 calendar days upon request and will begin accruing immediately upon opening an Earn Contract at the rate indicated on the Earn Contract. Interest will be denominated in USDC. You have the opportunity to choose the term lengths, interest rate payout options and denominations of the interest payout upon completing the Earn application form (“Earn Rates”).
    2. If you choose to participate in the Token Services, you may be eligible for a higher rate of interest. For more details on the Token Services, see the Altafin Token Whitepaper.
    3. We will notify you of any changes to your interest rate on the Website. Unless indicated otherwise in the notification, the new interest rate shall apply on the next calendar day following the notification.
    4. The interest rate shall be calculated on a daily basis, at a certain time on each calendar day, on the basis of the actual number of days elapsed in a 365-day year. We will credit your Altafin Account with the interest earned upon request, which is available every 7 calendar days. Your account must be open on such date in order for you to receive this interest payment. All interest will be paid in the base and bonus APY assets as determined at the execution of the respective Earn Contract. The accrued interest will be calculated and paid to two decimal digits for USDC, and five decimal digits for other non-stable digital assets. Any digits beyond that will be truncated; balances and interest payments on account statements will be truncated to eight decimal digits (one hundred millionth of a unit).
  5. Acknowledgement of Altafin’s Ownership of Digital Assets
    1. You acknowledge any funds provided to Altafin enter into Altafin’s sole possession and control, and the only obligations Altafin has to repay with respect to any capital loaned or interest due shall be those set forth in the Earn Contract, Agreement and Note.
    2. You acknowledge Altafin may convert any digital assets related to your Earn Contract into other assets or currencies, such as USDC, for working capital purposes, which may include, but not be limited to, real estate-related asset purchases by Altafin. You further acknowledge that you will not have any benefits or liabilities associated with the use by Altafin of any digital assets loaned to the company and will not be able to exercise any rights of ownerships related to the digital asset once you enter into an Earn Contract. You further acknowledge that any return on capital that may inure to your benefit will be dependent upon Altafin’s ability to identify and deploy its working capital into revenue generating assets.
    3. You acknowledge that you will not be entitled to participate in any staking functionality, delegation, voting, or other governance functions with respect to digital assets that have been delivered to Altafin in connection with the Earn Services.
  6. Top Up and Early Contract Termination
    1. You may top up digital assets into the Altafin Account at any time in accordance with Section 3 of these Earn Terms. However no top up will have an effect on existing Earn Rates unless the Earn Contract is updated or renewed by Altafin.
    2. Any request to terminate the Earn Contract early is at the discretion of Altafin and may be subject to an early termination penalty if accepted by Altafin. Early termination penalty may be up to 50% of the Earn Contract USDC Quoted Value
  7. Obligations and Warranties
    1. You hereby declare, warrant and confirm that:
      1. The digital assets, which you have topped up or will top up into your Altafin Account are not derived from money laundering, terrorist financing, fraud or any other illegal or criminal activity under any applicable law in the respective jurisdiction;
      2. You have submitted to Altafin only complete, correct and up-to-date information and documents;
      3. You are aware that you are subject to the tax regulation in your jurisdiction and shall be fully responsible for any filing/reporting and paying any tax due to the competent tax authority, as required by the applicable law. Altafin shall not be required to compensate you for your tax obligations or advise you in relation to your tax issues.
    2. You hereby undertake to:
      1. Use the Earn Services in good faith;
      2. Not violate or breach any terms of these Earn Terms, the Privacy Policy and the Website Terms, or any applicable law in any relevant jurisdiction;
      3. Not commit, conduct or perform any misrepresentation, fraud, malicious act or criminal activities;
      4. Not provide false, inaccurate, incomplete, out-of-date or misleading information;
      5. Inform Altafin about any change in the information and documents submitted to Altafin, in particular, your status as an accredited investor and contact details, within 1 (one) day of the change.
  8. Risk Disclosure
    1. YOUR LOANED CAPITAL IN THE FORM OF DIGITAL ASSETS WILL LEAVE OUR CUSTODY, AND YOU ACCEPT THE RISK OF LOSS ASSOCIATED WITH LOAN TRANSACTIONS, UP TO, AND INCLUDING, TOTAL LOSS OF THE VALUE OF YOUR DIGITAL ASSETS.
    2. You understand that you are loaning capital to Altafin, initially contributed in the form of the base asset determined at Earn Contract execution but that your loan will NOT be repaid in the respective base asset. Your loan will be repaid in USDC, the amount of which will be equivalent to the quoted USDC Contract Value on the day you enter into the Earn Contract. Altafin will calculate a current exchange rate and reserves the right to price in slippage up to 3% into the USDC Amount Quoted. As a result, when you enter an Earn Contract, you relinquish ownership of your base asset in exchange for a promissory note from Altafin that will be repaid to you, including any interest due thereon, in the form of USDC. By entering into an Earn Contract, you acknowledge that you will no longer own the base asset contributed and will not realize any future appreciation (or decrease) in the value of the base asset.
    3. Altafin’s ability to timely liquidate any base assets received pursuant to an Earn Contract and to convert that based asset into USDC in order to execute its business model and pay any interest and principal due to you on such contracts is not guaranteed. Given digital asset market and pricing volatilities, it is possible that the value of any USDC received by Altafin upon conversion of the base asset provided by you to Altafin will be relatively less than the value of the USDC equivalent of any base asset so provided by you at the time at which your Earn Contract was initially created. In such circumstances, Altafin may not be able to fully execute its business model and/or meet its interest and/or repayment obligations under the Agreement and Note.
    4. You understand that Earn Contracts are not insured by us or any governmental program or institution and that we do not assume any market or investment risk of loss associated with your use of the Earn Services.
    5. Digital assets are more volatile relative to most fiat currencies and other assets and this unpredictability of their price may result in significant loss over a short period of time. We are not responsible for the digital assets market, and we make no representations or warranties concerning the real or perceived value of any digital assets, and the quality, suitability, truth, usefulness, accuracy, or completeness of any data provided by Altafin. You shall therefore carefully consider whether holding digital assets is suitable for you in light of your financial condition.
    6. Digital assets are not money or legal tender, are not backed by the government or by a central bank and mostly do not have any underlying assets, revenue stream, or another source of value.
    7. The regulatory status of digital assets is currently unsettled, varies among jurisdictions and is subject to significant uncertainty. Legislative and regulatory changes or actions relating to the digital assets or blockchain technology at a state or international level may adversely affect or restrict, as applicable, the use, transfer, exchange and value of the digital assets, as well as the provision of the Earn Services. The value of the digital assets may be derived from the continued willingness of market participants to exchange fiat currencies for digital assets, which may result in permanent and total loss of value of a particular digital asset should the market for it disappear.
    8. Some digital assets transactions are deemed to be made when recorded on a public ledger, which is not always the date or time that you initiated the transaction. Digital assets ownership is often determined by a decentralized public ledger and usually cannot be cancelled or reversed.
    9. The nature of digital assets may lead to an increased risk of fraud or cyberattacks and any losses due to fraudulent or accidental transactions will likely not be recoverable.
    10. YOU ARE RESPONSIBLE FOR DETERMINING WHETHER THE USE OF THE EARN SERVICES IS LEGAL IN YOUR JURISDICTION AND YOU SHALL NOT USE IT SHOULD SUCH USE BE ILLEGAL IN YOUR JURISDICTION. IF YOU ARE UNCERTAIN, PLEASE SEEK INDEPENDENT LEGAL ADVICE.
    11. We may be forced to suspend, discontinue, or change aspects of the Earn Service in any jurisdiction, without notice, if demanded by the regulators or applicable law, or for whatever other reason. In such case the digital assets in your Altafin Account may be frozen for an indefinite period of time until the matter is resolved.
    12. You understand and agree that you use the Earn Services at your own risk. This section is not exhaustive and does not disclose all the risks associated with the digital assets and the use of the Earn Services. You shall, therefore, carefully consider whether such use is suitable for you in light of your circumstances and financial resources.
  9. Miscellaneous
    1. These Earn Terms, together with the Website Terms, the Privacy Policy, Agreement, and Note represent the entire agreement between you and Altafin in relation to the use of the Earn Services. It supersedes all prior representations, understandings, agreements, or communications between you and Altafin, whether written or verbal, including any statements published in the whitepaper on the Website.
    2. Altafin shall reserve its right to amend or supplement these Earn Terms from time to time. Any such amendments or supplements shall become valid and in full force as of the date of their publishing on the Website unless otherwise indicated, and will not affect the current terms of any active Earn Contracts. You shall regularly check the Website to inform yourself about any such amendments or supplements. By continuing to use the Earn Service, after any such amendments or supplements have taken effect, you thereby indicate your acceptance of the amended or supplemented Earn Terms. If you do not wish to be bound by any amendments or supplements to these Earn Terms, you shall discontinue your use of the Earn Service.
    3. The descriptive headings in these Earn Terms are inserted for convenience only and shall not affect the interpretation of these Earn Terms.
    4. The invalidity of the whole or part of any provision of these Earn Terms shall not affect the validity of the whole or part of any other provision of these Earn Terms. The remaining provisions of these Earn Terms shall remain in full force and effect.
    5. The failure by Altafin to exercise or enforce any right or provision of these Earn Terms shall not constitute a present or future waiver of such right or provision.
    6. The provision of the Earn Services does not make Altafin your trustee or investment adviser and no fiduciary relationship exists between us. We have no trust or other obligations in respect of your Altafin Account other than those expressly specified hereunder.
    7. Except for the legal entities belonging to the Altafin group of companies, a person who is not a party to this agreement, shall not be entitled to enforce it.
    8. In case of any discrepancies between the present Earn Terms and the Website Terms, these Earn Terms shall prevail.
    9. These Earn Terms are prepared and concluded in English language. In case it or any part thereof is translated into another language for whatever reason, the English version shall prevail.