Terms of Use

1. Introduction and definitions

This document uses the following defined terms throughout.

2. Acceptance of these terms

Where legally applicable, accessing the Website or using it to interact with the Protocol constitutes acceptance of these terms. If you do not accept them, do not use the Website.

This version is 1.1, effective 2026-09-06. Material changes create a new version, and the Platform may ask you to acknowledge the updated version before your next trade.

The Protocol is autonomous software. Withdrawing acceptance of these terms ends your right to use the Website, but does not alter Smart Contracts already deployed on Arc.

3. Eligibility

• You must be at least 18 years old.
• You must have the legal capacity to enter into a binding agreement.
• You must not be a resident, national of, or located in a jurisdiction listed on the Geographic restrictions page.
• You must not be subject to applicable sanctions, nor act for a sanctioned person or entity.
• You must not use a VPN, proxy, false location data or any other method to circumvent geographic restrictions.
• You are solely responsible for determining whether your use of the Website and the Protocol is lawful where you are.

4. Non-custodial nature of the Platform

• You connect your own Wallet. The Platform never takes possession of your USDC or Outcome Tokens.
• You retain sole control of your Wallet credentials, including private keys and seed phrases.
• Proodos Group BV has no access to your private keys and cannot move, freeze or recover your funds.
• Blockchain transactions are generally irreversible once confirmed. A mistaken transaction usually cannot be undone.
• You are responsible for securing your Wallet, verifying transaction details and managing token approvals.

5. Wallet connection

You may browse Markets without connecting a Wallet. To trade, create Markets, provide liquidity, resolve Markets or claim funds, you connect a self-custodied Wallet. Kairo does not offer a separate social-login account or password.

• Connecting a Wallet gives the Platform no ability to sign transactions, move funds or approve tokens on your behalf.
• You may disconnect a Wallet at any time. Disconnecting changes nothing on Arc.
• Every on-chain action still requires you to approve it in your own Wallet.
• You are responsible for securing your Wallet and for any activity authorised through it.
• Wallet connections may be made through a browser extension wallet or through WalletConnect. Those wallet providers are third parties governed by their own terms.

6. Prediction markets

• Each Market offers a YES position and a NO position, collateralised by USDC.
• Prices are commonly expressed between $0.00 and $1.00 and can be read as a market-implied probability.
• After a Market resolves, the winning Outcome Tokens may be redeemable according to the Market's rules and the Protocol's design.
• Prices are produced by trading activity against an automated market maker. They are not forecasts, opinions or guarantees issued by Proodos Group BV.
• Trading is executed as market orders against the automated market maker. There is no order book and no limit orders.

7. Permissionless market creation

• Any User with a Wallet may deploy a Market through the Protocol without approval from Proodos Group BV.
• Creation of a Market is not an endorsement, verification or recommendation by the Platform.
• The Platform may moderate, label, hide, de-rank or delist Markets from its own interface at its discretion or where legally required.
• Removing a Market from the Website does not delete, pause or disable the underlying Smart Contracts.
• Markets removed from the Website may continue to exist and be traded directly on Arc by anyone, independently of this interface.

8. Market creator responsibilities

If you create a Market you are responsible for its quality and lawfulness. You must provide:

• a clear, unambiguous question with a single binary outcome;
• objective resolution criteria that a neutral reader can apply;
• a valid closing time and a realistic resolution deadline;
• an accurate topic classification;
• lawful subject matter that complies with the Prohibited Markets policy;
• an acceptable, publicly checkable resolution source;
• wording that is not misleading, and no duplicate or spam Markets.

9. What creating a market costs

Creating a Market is permissionless, but it requires you to commit USDC from your own Wallet. Under the current Protocol configuration this is a refundable creation deposit of 10 USDC, returned to the Creator once the Market is settled, plus initial liquidity of at least 10 USDC that you supply as the first liquidity provider. Arc network transaction costs are additional.

• The values enforced by the Protocol configuration contract at the moment of your transaction are authoritative over any figure in this document.
• The creation deposit is held by the Protocol, not by Proodos Group BV, and is released according to the rules encoded in the Smart Contracts.
• A deposit can be forfeited or delayed where the Market never reaches a valid settlement, in accordance with those rules.
• Initial liquidity is at risk like any other liquidity position and is not a fee, a payment or a guarantee of return.

10. Providing liquidity

• Any User may add liquidity to an open Market and receives liquidity shares representing a pro-rata claim on that Market's pool.
• 0.25% of applicable trade value stays in the pool and accrues to liquidity providers in proportion to their shares.
• Liquidity added after creation may be withdrawn at any time while the Market is open.
• The Creator's initial liquidity is locked by the Smart Contracts until the Market is resolved. This is a deliberate protection for traders against a Creator withdrawing the pool that backs the Market.
• The value of a liquidity position moves with the Market. You can withdraw less value than you deposited, and fees earned may not offset that.
• Liquidity provision gives no control over resolution and no claim on other Users' positions.

11. Market creator fees

Under the current Protocol configuration, a Market's Creator may accrue 0.25% of applicable trading volume in that Market, claimable from the Protocol.

• Creator fees depend entirely on actual trading activity. No level of earnings is promised or guaranteed.
• Fee parameters may be changed for future Markets through Protocol configuration changes.
• The Smart Contract configuration applicable to a Market is authoritative over any figure shown in documentation.
• Creator fees confer no authority over resolution of the Market.
• Creator fees confer no custody of, or claim over, collateral or trader funds.
• Creator fees do not represent ownership of the Market, the Protocol or any revenue share beyond the accrued fee balance.

12. Trading fees

The current V1 configuration applies a total trading fee of 1.50% on applicable buys and sells, split 1.00% to the protocol, 0.25% to the market creator and 0.25% to liquidity.

The fee breakdown shown in the trade interface and the values stored in the Protocol configuration contract are the authoritative current source. Network transaction costs are separate.

13. Market resolution

• Every Market carries specific resolution criteria and a resolution mechanism chosen by its Creator at creation.
• You must read a Market's rules before trading it.
• Two resolution mechanisms are currently available: a bonded on-chain adapter, where a proposed outcome must survive a challenge window before it becomes final, and an oracle price-feed adapter, where the outcome is derived from an on-chain oracle reading at or after the Market's closing time.
• A price-feed Market can only settle once a feed round exists at or after the closing time. Settlement can therefore be delayed by the update cadence of the feed.
• A Creator does not gain authority to determine the outcome merely by creating the Market, and Proodos Group BV cannot override a resolver.

14. Disputes

Depending on the resolver assigned to a Market, resolution may involve a proposed outcome, a challenge period, posted bonds, escalation or arbitration, and the possibility of an invalid outcome.

The exact process, timings and bond sizes are properties of the Market's resolver contract, not of this document.

15. Invalid markets

A Market may be treated as invalid where, for example, its criteria are ambiguous, the resolution source becomes unavailable, the underlying event is cancelled, the rules contradict themselves, or the outcome cannot be objectively determined.

Settlement in that case follows the rules encoded in the Protocol and the Market's resolver. Proodos Group BV cannot arbitrarily direct where collateral goes.

16. Trading risks

• Loss of capital, up to the entire amount committed to a position.
• Market volatility and abrupt probability changes.
• Low liquidity, which can make entering or exiting a position expensive or impossible.
• Slippage and price impact when trading against an automated market maker.
• Losses as a liquidity provider, because the value of a liquidity position moves with the market and can be worth less than the USDC deposited.
• Resolution uncertainty, delays and disputed outcomes.
• Oracle or resolver failure, including a stale, incorrect or unavailable price feed.
• Smart-contract defects, economic exploits and integration bugs. No external audit of these contracts has been published.
• Network risk on Arc, including congestion, reorganisation or downtime.
• Stablecoin risk affecting USDC, including depeg, issuer action or redemption failure.
• Wallet risk, including key loss, malicious approvals and phishing.
• Regulatory and legal uncertainty in your jurisdiction.

17. No financial advice

Nothing on the Platform is financial, investment, legal or tax advice. This includes market listings, implied probabilities, charts, creator statistics, market quality scores, comments, trending rankings, educational material and any other content.

You are solely responsible for your own decisions, and for any tax reporting obligations arising from them.

18. User conduct

You must not:

• manipulate markets or prices, including wash trading and self-dealing;
• coordinate with others to distort prices or resolution outcomes;
• commit fraud or publish false information intended to move markets;
• interact maliciously with the Smart Contracts, including exploit attempts;
• attack the Platform, its infrastructure or its providers;
• spam markets, comments or the interface;
• impersonate any person, project or official channel;
• conduct phishing or distribute malicious links;
• evade sanctions or geographic restrictions;
• use the Platform for money laundering or any other illegal activity.

19. Market moderation

The Protocol is permissionless. The Website is not. These are separate layers, and moderation happens only at the interface layer.

The Platform may remove a Market from search and discovery, hide it, label it, restrict a topic, remove comments, or block interface interaction where legally required, in each case without changing any blockchain state.

20. Intellectual property

• The Platform brand, name, logos, interface design and original written content are owned by Proodos Group BV or its licensors.
• Open-source components remain governed by their own licences, and those licences prevail for those components.
• Third-party names and trademarks referenced in market questions belong to their owners and are used for identification only.
• By creating a Market or posting content you grant the Platform a licence to display, reproduce and distribute that content in connection with the service.

21. Third-party services

The Platform depends on services it does not control, including the Arc network, wallet providers, RPC providers, the USDC issuer, resolver and oracle operators, block explorers, analytics providers and external data sources referenced by market rules.

Links to third-party services do not imply endorsement, and their terms and privacy practices are their own.

22. Service availability

The Platform is provided on an as-is and as-available basis. No guarantee is made regarding continuous availability, error-free operation, specific block times, RPC uptime, resolver uptime, indexing latency or market liquidity.

23. Limitation of liability

To the maximum extent permitted by applicable law, Proodos Group BV and its officers, employees and contractors are not liable for indirect, incidental, special, consequential or exemplary damages, nor for lost profits, lost opportunity, or loss of funds arising from Smart Contract behaviour, resolver outcomes, network conditions, third-party services or your own transactions.

24. Indemnification

You agree to indemnify and hold harmless Proodos Group BV against claims, losses and reasonable costs arising from your breach of these terms, your unlawful use of the Platform, Markets you create, or content you publish.

25. Governing law and dispute forum

• Governing law: the laws of the Netherlands
• Legal entity: Proodos Group BV
• Registered in the Netherlands; the registration number and address will be published here once finalised
• Dispute forum: the competent courts of Amsterdam, the Netherlands

26. The KAIRO token

A KAIRO token exists separately from the prediction markets described in these terms. It is not required in order to browse the Website, create a Market, provide liquidity, trade or claim winnings, all of which use USDC only.

• The token is not collateral for any Market and is never accepted by the Protocol as collateral.
• Holding the token grants no ownership of Proodos Group BV, no share of protocol fees, no governance right and no claim on any Market.
• Token prices are highly volatile and a total loss is possible.
• Any third-party venue on which the token trades is outside the control of Proodos Group BV, and interacting with it is at your own risk.
• Always verify the contract address from an official Kairo channel before interacting with any token that uses this name.

27. Contact

• Legal enquiries and support: via the Contact page