GENERAL TERMS AND CONDITIONS FOR THE MANAGEMENT OF TERAHASH FOR BITCOIN MINING
IBX is a Liechtenstein-based anonymous company specialized in the selection, evaluation, management, and maintenance of bitcoin mining equipment (“Miners”), and has facilities for mining operations, preferably using renewable energy, in various parts of the world. IBX has issued the Bitcoin Hash Power token (“BHP”), a token that represents ownership of computing power (Hash) for Bitcoin mining, equivalent to 1 Terahash per token. Finally, IBX has developed a management system that allows the Customer to have a clear, transparent, and real-time view of the computing power owned by them.
IBX provides this service on behalf of the owner of the computing power (Mining as a Service, hereinafter “MaaS”). The MaaS service includes, on behalf of the Customer, negotiation of favorable electricity rates, installation, management, and optimization of the Miners.
By activating their BHP, the Customer has requested MaaS service from IBX. The Customer is aware that IBX cannot guarantee that the mining activity will be profitable, and it depends on factors such as electricity prices and the price of Bitcoin. In particular, the price of Bitcoin is highly volatile, with large fluctuations, and changes in the level of difficulty of the hashrate for Bitcoin mining are always increasing, making mining less profitable with outdated machines and necessitating their replacement after a few years of operation. Changes in the market price of Bitcoin and/or hashrate can have a negative effect on the mining equipment’s capacity. The Customer declares to have been duly informed of such risks and accepts them. Any liability on the part of IBX (including in the case of a total loss of the Customer’s invested capital) is explicitly excluded. In particular, the Customer has been informed that as the halving approaches, the mining activity may also be suspended if revenues are not sufficient to cover the costs of machine usage.
Subject of the contract
The MaaS solution offered by IBX to the Customer includes:
- Advanced and pre-installed necessary infrastructure;
- Dedicated space in IBX mining farm;
- Internet connection necessary for the operation of the Miners;
- Inspection of Miners’ conditions upon delivery;
- Miners set-up;
- Networking infrastructure set-up;
- Cooling infrastructure set-up;
- Initial configuration of the Miners;
- Operational management of installed Miners and their system integration;
- Ordinary and extraordinary maintenance of the Miners;
- Possible modification and optimization of Miners’ firmware;
- Network optimization and communication with mining pools;
- Maintenance and management of the Customer’s hashing power;
- Replacement of hashing power at the end of the Miner’s lifecycle;
- Use of electricity supply contracts negotiated by IBX.
The MaaS solution includes a continuous process of monitoring and optimization of the Miners, following their evolution over time, maximizing their lifespan and optimizing their earnings over time. IBX will perform the services within its own infrastructure, following the same policies applied to its own mining activities, including the choice of mining pools and cryptocurrencies to mine. IBX will not manage the Customer’s exchanges, therefore, it will not be able to carry out transactions or withdrawals from such exchanges. However, IBX, having access to the addresses, may verify all transactions.
The Client acknowledges a monthly Maintenance fee for the entire duration of the contract, covering the costs of maintenance, internet connection, rent and management of premises, management and maintenance of network and electrical infrastructure, monitoring and software maintenance of Miners, and other MaaS services offered, as well as disposal of Miners at the end of their lifecycle. The Maintenance fee will be calculated by third-party providers (electricity, hosting). The amount will be deducted from the earnings obtained from the Miners.
The Client acknowledges to IBX a Management fee of 5% (+VAT) on the pre-tax net income derived from the mining operations of the Client under this contract.
Payments IBX will ensure the transfer of proceeds from the mining activity, after deduction of the Maintenance and Management fees, to the Client’s BHP token activity wallet. Credits to the Client’s wallet will be made according to the schedule provided by the Mining Pool used by IBX.
Transfer of Proceeds of the Mining activity
IBX will ensure the transfer of the proceeds of the Mining activity, after deduction of the Maintainance and Management Fee, to the Client’s wallet.
Credits to the client’s wallet are made according to the schedule provided by the mining pool used by IBX.
The Client undertakes not to engage in any unfair competition against IBX, in particular by copying its business model and/or improperly using its commercial contacts. The Client undertakes not to engage in any unfair competition against IBX, in particular by copying its business model and/or improperly using its commercial contacts.
The offer described in the following document does not include:
- Warranties related to the provided Miners;
- Costs related to Bitcoin exchange, legal, tax, and administrative services for regulatory compliance;
- Custodial services for the Client’s cryptocurrencies or private keys related to cryptocurrencies;
- Configuration of cryptocurrency wallets or exchanges for the Client.
IBX complies with the Data Protection regulation and does not collect any personal data with the exception of the client wallet used for the transfer of the mining gains. Pleaser refer however to the AML section of these Terms.
Intellectual Property and Other Rights
IBX grants the Customer, for the duration of the contractual relationship, the non-exclusive right to use the services provided by IBX in accordance with the contract. All other rights, especially those related to intellectual property (copyrights, trademarks, etc.), as well as those related to IBX services, remain the property of IBX or any legitimate third parties and cannot be claimed by the Customer.
Commencement, Duration, and Termination of the Contract
The contract commences upon activation of the BHP token, which is executed by transferring the token to the activation wallet at a designated exchange, and it lasts until its deactivation (transferring the token out of the activation wallet).
Ineffectiveness of Individual Provisions
If any provision of this contract is legally ineffective or inapplicable, the validity of the contract with respect to the other provisions shall not be affected.
Except for the exceptions contained in the following clause, IBX, as well as its officers, directors, employees, and suppliers, shall not be liable for any losses arising from or related to the purchase of BHP in connection with mining activity, any interruptions or technical malfunctions of mining equipment, interruption of electricity, theft of equipment, or loss of equipment due to any type of incident such as theft, water damage, or other. In particular, IBX disclaims any liability for damages caused by the malfunction of the internet network and/or the failure to provide electricity. The above limitation of liability shall not apply in case IBX or an IBX employee has caused the damage intentionally or through gross negligence. The Customer also provides a release of liability and undertakes to indemnify IBX in case of illegal or deemed inappropriate use of the BHP Token.
Transfer of Rights and Obligations
The contracting parties may transfer the rights and obligations of this contract to third parties with the transfer of the BHP token.
The Customer has been informed that for the Bitcoin transfer service, IBX uses a duly authorized counterparty that must comply with anti-money laundering regulations and proceed with identification accordingly.
Additions and Modifications
IBX reserves the right to change services and prices at any time by informing the Customer adequately and with sufficient advance notice.
Applicable Law and Jurisdiction
This contract is exclusively governed by the law of Liechtenstein. In case of disputes, the contracting parties undertake to find a consensual solution within 1 month. If this is not possible, the competent jurisdiction is Vaduz.