Terms and conditions - last updated: 15 June 18. LODE

Transcription

1 LODE

2 I (the "Customer") agree with the following terms and conditions for the provision of mining services (the "Agreement") is made as of today between: Lode (PTY) LTD, La Gratitude Unit 5, 89 Dorp Street, Stellenbosch, South Africa, 7600 ("Service Provider"); and me, the Customer. Pursuant to the terms of this Agreement, the Service Provider will sell the Customer certain hardware and maintain this hardware in order to provide the services described herein. 1. Services The Service Provider agrees to provide to the Customer with a mining unit(s) and maintain the unit(s) to provide the output of its mining capacity (the "Services") subject to the following terms: Contract type: Rig hosting contract Start Date: As stated on customer invoice Contract Term: See Contract Term Mining terms: See Contract Term Mining Power: All mining units may have a of 5% variance from their stated hash rate. LODE (PTY) LTD cannot be held accountable if a purchased mining unit is not performing in accordance with its advertised mining power. LODE (PTY) LTD will only be responsible in returning the defective unit to the corresponding manufacturer for replacement or repair if the unit was purchased through LODE (PTY) LTD s online webstore ( Mining unit s hash rates will be tested within the first 24 hours of their operations at a LODE (PTY) LTD facility and be reported to the Customer. If both LODE (PTY) LTD and the Customer are in agreement with this hash rate it will be used as the mining unit s baseline hash rate of the entire contract term. The rig hosting packages The following table outlines the rig hosting packages provided by LODE (PTY) LTD and the benefits applicable to each package. Customers who have basic rig hosting packages will not enjoy the benefits of standard or complete packages. Customers who have standard rig hosting packages will not enjoy the benefits of the complete rig hosting package.

3 BASIC STANDARD COMPLETE Insurance x x x Surge protection x x x Full setup including network and cabling x x x On-site maintenance personnel x x x Realtime miner access x x x Guaranteed mining up-time x x x Pay-out in all cryptocurrencies x x Fire-retardant mining enclosure x x Micro-particle dust filtering x x Passive air-conditioning x x Active air-conditioning Pay-outs in ZAR x x All customer miners operated at a Lode facility will be automatically insured against the risk of loss, destruction or damage by fire, storm, flood, explosion, earthquake and electrical surge protection. All customer miners operated at a Lode facility are protected by a three phase 25kVA surge protection device. All customer miners operated at a Lode facility will automatically be set up with the required surge protected power and network cabling to ensure immediate mining output. Lode facilities have dedicated on-site personnel to attended to all mining units. All miners are placed on a maintenance schedule and serviced monthly. Lode facilities have been structured to ensure that there is a consistent supply of electricity and internet access to guarantee a 99%+ uptime for all miners. The output of miners can be paid out in Bitcoin, Litecoin, Ethereum, Dash or an alternative cryptocurrency of your choice Miners are placed in flame-retardant enclosures custom designed for cryptocurrency miners. Miners are protected by micro-particle filtering dust protection panels to ensure that all mining units remain dust free and running for longer. Miners operated at a Lode facility are passively cooled through a tailored engineered high-volume air extraction system to keep all mining unit s cooler.

4 Miners operated at a Lode facility are actively cooled through a tailored engineered high-volume air extraction system and continually air-conditioning units to keep all mining unit s super cool and running for longer. The output of customer miners can be paid out in South African Rand Operational cost The customer will be held accountable for the operational cost of the mining unit s electricity usage and maintenance cost while it is in the care of LODE (PTY) LTD and stored at one of LODE (PTY) LTD s facilities. The current electricity tariff of the Lode rig hosting agreement is applicable. This tariff is subject to increase in accordance with the South African energy producer, Eskom s yearly increases. If an increase has been implemented during the life span of a customer s contract, that customer will furthermore be billed at the increased electricity tariff from the point of the implementation of the increase until such a time when a customer s contract has expired, or an additional tariff increase has been implemented. Apart from electricity and maintenance costs, the customer will not be held accountable for any additional operational costs of the mining unit s while it is in the care of LODE (PTY) LTD and stored at one of LODE (PTY) LTD s facilities. Electricity costs will be payable on the 25 th of each month. Clients will be informed via their rig hosting package contract their monthly electricity cost for their given machine. This monthly electricity will not be subjected to change unless the South African energy producer, Eskom, releases an updated electricity tariff charge during the term of the client s contract. This updated electricity tariff will be communicated to the client via . Electricity tariffs for the rig hosting packages: 1. High wattage tier (greater and equal to 1000 Watts): Complete rig hosting package: R1.00/KWh Standard rig hosting package: R1.20/KWh Basic rig hosting package: R1.40/KWh 2. Low wattage tier (lower than a 1000 Watts): Complete rig hosting package: R1.00/KWh Standard rig hosting package: R1.15/KWh Basic rig hosting package: R1.30/KWh Mining Algorithm The Mining Algorithm is the type of algorithm that can be processed on the purchased mining unit. As of Start Date: The X11 algorithm will be utilised to mine Dash The Scrypt algorithm will be utilised to mine Litecoin The SHA-256 algorithm will be utilised to mine Bitcoin LODE (PTY) LTD fully retains the authority to designate all ASIC miner s in LODE (PTY) LTD s care to a specific mining pool, algorithm or service. LODE (PTY) LTD

5 will not be held accountable if the designated mining pool or service does not fully align with customer s agendas, requirements or specifications. Mining Power The Mining Power is the number of hashes of the Mining Algorithm that the rented hardware can process per second. For all Bitcoin, Litecoin and Dash the Mining Power also depends on a variable factor, the DAG size, thus the number of performed hashes may vary over time. Mining Output ("Coins or ZAR") A given cryptocurrency that can be mined with the above Mining Algorithm and offered by the Service Provider. Where applicable, the mined coins can be converted to, e.g., Bitcoin, Ethereum or other cryptocurrencies and South African Rand for an additional service charge. Contract term The contract term will commence after the customer s invoice payment has reflected in LODE (PTY) LTD s FNB account (for ZAR payments) or Exodus wallet (for cryptocurrency payments). For new mining unit purchases, customer s will be subject to a day holding period after the invoice payment has cleared before mining output commences. In instances where customer purchases can be accommodated sooner than 30 days, LODE (PTY) LTD reserves the right to uphold the 30-day holding period. Rig hosting packages extend to the life of the customer s mining unit with the life of the mining unit defined as: 1. The point in time where the per month mining output s ZAR value is less than the per month operational expenses of that mining unit s ZAR value. 2. The mining unit becomes defective outside the warranty period and the cost of restoring the mining unit is more than 15% of the customer s initial invoice payment for the mining unit. 3. The customer s requests physical ownership of the unit. 4. A 6-month period has passed after the commencement of the mining unit s output. Customers who request to take physical ownership of their mining unit must, in writing, request to do so via . s must be address to info@lode.co.za. After the request has been received, LODE (PTY) LTD will, within 30 days return the mining unit to the customer. For customer s unable to collect the unit directly from a LODE (PTY) LTD facility, a delivery charge will apply. Customers choosing to end their rig hosting packages prematurely will be subjected to a penalty of one month s maintenance fee and will not be refunded their initial connection fee. Quality of Service The Customer acknowledges that the Service will be rendered on a best effort basis. The Service Provider ensures that it maintains all facilities and the relevant supplies in good working order, in order to avoid any of the aforementioned variance with the diligence that it applies in its own dealings (diligentia quam in suis).

6 Mining Payouts The Customer will receive Coins mined in accordance with the above Mining Power and in accordance with applicable Maintenance Fee (as per section 2). If the expected transaction fee (needed to ensure that the network will process the transaction) divided by the value of the payout is greater than 5% or the payout is below an equivalent value of USD 1.00 the Service Provider has the option to accumulate the payouts in the Customer s account, until the payout value is sufficiently high to meet these requirements. Insurance All mining units operated at a Lode (PTY) Ltd facility is insured against theft, fire damage, water damage and electrical surge damage. An excess of R500 per miner is required by the insurance company and is fully payable by the client in case of an insurance claim. Lode (PTY) Ltd will be responsible for the monthly insurance premium on all miners operated at a Lode (PTY) Ltd facility. 2. Remuneration As a consideration for the Services the Customer agrees to pay to the Service Provider an amount of: A once-off initial connection fee for the rig hosting packages: 1. High wattage tier (greater and equal to 1000 Watts): Complete rig hosting package: R Standard rig hosting package: R Basic rig hosting package: R Low wattage tier (lower than a 1000 Watts): Complete rig hosting package: R Standard rig hosting package: R Basic rig hosting package: R0.00 Monthly maintenance fees for the rig hosting packages: 1. High wattage tier (greater and equal to 1000 Watts): Complete rig hosting package: R Standard rig hosting package: R Basic rig hosting package: R Low wattage tier (lower than a 1000 Watts): Complete rig hosting package: R Standard rig hosting package: R Basic rig hosting package: R % administration fee when an exchange transaction is required from a cryptocurrency to ZAR 3. Limitation of Liability

7 Without detriment to the Service Providers obligation to render the Services on a best effort basis, any liability of the Service Provider hereunder and/or in connection with this Agreement shall be limited to wilful misconduct and gross negligence. Further, the Service Provider shall not be liable for any damages incurred by the Customer as a result of force majeure, or any other material event which shall include, inter-alia, any disruption or breakdown of a cryptocurrency market, or a change of the proof-of-work mining algorithm / change to a different consensus system (such as proof-of-stake ). The Service Provider will try on a best effort basis to make best possible use of the Customer rented hardware to maximize the value of Coins. 4. Term This Agreement is entered into for the term as described in Services and cannot be terminated early or cancelled otherwise without consenting to the penalty clause outlined in Contract term. 5. Communication All communication between the Service Provider and the Customer shall be made in writing which includes and other electronic messaging services. 6. Data Protection The Customer agrees to the processing of its personal data provided in the context of this Agreement for the purpose described herein and also agrees, until revocation at any time to the storage of its data beyond the above Term. Should the Service Provider be required to obtain any further data in the context of providing its services hereunder, the Customer will without undue delay provide the relevant data so required by the Service Provider. 7. Representations and Warranties The Customer represents and warrants to the Service Provider that he is familiar with mining, cryptocurrencies (e.g. Bitcoin) and that he understands the nature and uses of mining such cryptocurrencies. The Customer acknowledges that it is solely liable for the maintenance of the relevant (i.e. its own) technical equipment (software / hardware) that is required to receive the Service (i.e. the Mining Payouts) The Service Provider does not guarantee or warrant the profitability of the Services at any time. The Customer acknowledges that it has no claim against Service Provider for any specific amounts of Coins on the basis of this Agreement and Service Provider does not guarantee or warrant any such output or any value thereof. Also, Customer acknowledges that the exchange risk of mined Coins depends on the actual price compared to any given fiat/cryptocurrency (the above called Market Price Volatility ). The Customer further represents and warrants that he will be the beneficial owner of the Coins. 8. Liability The customer acknowledges and agrees that if, for any reason, Lode (PTY) LTD is not able to continue supplying the purchased services during the period of the customer s

8 plan, Lode (PTY) LTD s maximum liability, if any, will be for what the customer paid, at the time of the payment for the services, minus all the dividends and/or bitcoins and/or payments that Lode (PTY) LTD provided to the customer up till the date that the service stopped. By accepting these terms, the Customer represents that all information the Customer provides to the Service Provider is true and accurate. Any false or fraudulent information and/or use of the Services rendered to the Customer, is prohibited. The Customer is not obligated by law to provide the Service with any personal information. The Customer hereby acknowledges and agrees that he is providing the Service Provider with personal information at his/her own free will, for the purposes of rendering the Services. 9. Governing Law, Language and Miscellaneous This Agreement is governed by the laws of South Africa. To the extent permitted by applicable law the parties agree that the competent courts South Africa shall have non-exclusive jurisdiction to hear and determine any suit, action or proceeding, and to settle any disputes, which may arise out of or in connection with this Agreement