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 1.0, 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 [MINIMUM_AGE] years old.
• You must have the legal capacity to enter into a binding agreement.
• You must not be a resident, national or located in a jurisdiction listed in [RESTRICTED_JURISDICTIONS].
• 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. 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.

6. 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.

7. 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.

8. 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.

9. 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.

10. Market resolution

• Every Market carries specific resolution criteria and a resolution source chosen by its Creator.
• You must read a Market's rules before trading it.
• Resolution is performed by the Resolution Mechanism assigned to the Market, currently a bonded on-chain resolution adapter, and in future potentially other explicitly disclosed adapters or oracles.
• A Creator does not gain authority to determine the outcome merely by creating the Market.

11. 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.

12. 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.

13. 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.
• Resolution uncertainty, delays and disputed outcomes.
• Oracle or resolver failure, including incorrect or unavailable data.
• Smart-contract defects, economic exploits and integration bugs.
• 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.

14. 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.

15. 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.

16. 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.

17. 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.

18. 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.

19. 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.

20. 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. Any aggregate liability is limited to [LIABILITY_CAP].

21. 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.

22. Governing law and dispute forum

• Governing law: [GOVERNING_LAW]
• Legal entity: Proodos Group BV
• Registration number: [REGISTRATION_NUMBER]
• Registered address: [REGISTERED_ADDRESS]
• Dispute forum: [DISPUTE_FORUM]

23. Contact

• Legal enquiries: [LEGAL_EMAIL]
• Support: [SUPPORT_EMAIL]