Terms and Conditions - Bitcoin Segwit2x CSTs

Chain Split Tokens > Terms and Conditions for Segwit2x Tokens

These terms and conditions (these “T+Cs”) govern your use and exchange of BT1 and BT2 Chain Split Tokens (as defined below) on the Site. You should read these T+Cs carefully. The Site’s Terms of Service continue to apply to all Site users; these T+Cs are in addition to, and supplement, and not in substitution of, the Terms of Service. The Terms of Service are available here. By using any CSTs on the Site in any manner from time to time, you agree to these T+Cs and, for the avoidance of any doubt, to the Terms of Service.

These T+Cs may be amended, changed, or updated by Bitfinex at any time and without prior notice to you. You should check back often to confirm that your copy and understanding of these T+Cs is current and correct. Your non-termination or continued use of any Services after the effective date of any amendments, changes, or updates constitutes your acceptance of these Terms of Service, as modified by such amendments, changes, or updates.

The use of, ownership of, and trading in any Chain Split Token (as defined below) is void where prohibited by applicable law.

  1. 1.Definitions: In these T+Cs, the following words have the following meanings unless otherwise indicated:
    1. 1.1“BT1” means a CST representing the Incumbent Bitcoin Blockchain;
    2. 1.2“BT2” means a CST representing Segwit2x consensus protocol;
    3. 1.3“B2X” means a Digital Token converted from BT2s at or after Contract Settlement, as set out in these T&Cs;
    4. 1.4“Chain Split Event” means a fork in the Incumbent Bitcoin Blockchain that produces a viable and alternative blockchain based on—and that may only be used exclusively based on—the consensus protocol of Segwit2x. Segwit2x is scheduled to occur at Block Height 494784 and will be deemed to occur at the moment in time that a new, viable, and exclusive blockchain based on the Segwit2x consensus protocol comes into existence;
    5. 1.5 the “Contract Period” starts on October 5, 2017, and ends at 11:59:59 pm UTC on December 31, 2017;
    6. 1.6“Contract Settlement” means the earlier of 11:59:59 pm UTC on December 31, 2017, or immediately following a Chain Split Event, as defined in these T+Cs;
    7. 1.7“CST” means a Chain Split Token, which are Digital Tokens designed to facilitate trading on the value of ledger units exclusively associated with a potential, contingent, and non-guaranteed forking event on the Bitcoin blockchain;
    8. 1.8“Incumbent Blockchain” means the currently existing Bitcoin blockchain that is exclusively used based on the consensus protocol as set out from time to time in the repository https://github.com/bitcoin/bitcoin;
    9. 1.9“Segwit2x” means the anticipated Bitcoin blockchain that will be exclusively used based on the consensus protocol as set out from time to time in the repository https://github.com/btc1/bitcoin; and,
    10. 1.10“T+Cs” means these terms and conditions governing the use and exchange of Segwit2x CSTs on the Site.

    Other terms not expressly defined in these T+Cs have the meanings set out in the Terms of Service.

  2. 2.Exchange & Trade: You may exchange bitcoins for BT1 and BT2 using the Site’s token manager platform until immediately before the Chain Split Event. The rate available for exchange is 1 BT1 + 1 BT2 for each bitcoin. You may also redeem bitcoins using the Site’s token manager platform until immediately before Contract Settlement. The rate available for redemptions is 1 bitcoin for 1 BT1 + 1 BT2. You may trade CSTs on the Site during the Contract Period in four market pairs: BT1/USD, BT1/BTC, BT2/USD, and BT2/BTC.
  3. 3.Settlement—Generally & BT1s: At Contract Settlement, CSTs shall be converted on a 1:1 basis to Digital Tokens on their respective blockchains at Contract Settlement. In the case of BT1, the blockchain shall be defined by the consensus rules used on the Incumbent Blockchain, currently designated with the ticker symbol BTC. If no Incumbent Blockchain exists pursuant to these T+Cs, BT1 tokens shall be deemed to have a value equal to zero and shall be removed from the platform. All open orders for any BT1 trading pair will be canceled at Contract Settlement.
  4. 4.Settlement—BT2s: In the case of BT2, Segwit2x shall be deemed to exist only if a blockchain has diverged incompatibly from the Incumbent Blockchain. Any settlements of BT2 shall be to B2X. If no Segwit2x blockchain exists pursuant to these T+Cs, BT2 tokens shall be deemed to have a value equal to zero and shall be removed from the platform. All open orders for any BT2 trading pair will be converted into open orders for corresponding B2X trading pairs to ensure pricing continuity and minimize disruption for users trading BTC pairs on leverage prior to the Chain Split Event.
  5. 5.Delayed Settlement: Important: Settlement of BT1 into BTC and BT2 into B2X may be delayed in Bitfinex’s sole and absolute discretion. If either of the blockchains associated with BT1 and BT2 is destroyed, reorganized, or experiences a technical malfunction, in any manner and by any party or source, before settlements have been completed, those tokens shall be deemed to have a value equal to zero and shall be removed by Bitfinex. Furthermore, there is a risk that, after the Contract Settlement, either blockchain may be unstable, abandoned or destroyed. This may happen even after multiple confirmed blocks. Among other limitations, Bitfinex assumes no liability or responsibility for any Losses attributable to this or any other circumstances.
  6. 6.One Chain: In the unlikely event that only one blockchain exists, and it is compatible with the consensus rules of both the Incumbent Blockchain and Segwit2x, then a determination may be made, in the sole and absolute discretion of Bitfinex, as to whether that blockchain is more compatible with the consensus rules of the Incumbent Blockchain or with Segwit2x effective on October 5, 2017. In the event that the blockchain after any fork is more compatible with the October 5, 2017, Incumbent Blockchain, then only BT1 tokens will be convertible, and BT2 tokens shall be deemed to have a value equal to zero. In the event that the blockchain after any fork is more compatible with the October 5, 2017, Segwit2x rules, then only BT2 tokens will be convertible, and BT1 tokens shall be deemed to have a value equal to zero.
  7. 7.Distribution of Unrelated Forks: For existing CSTs, if and as a fork that is unrelated to the CST in question occurs, then assets created as a result of the fork will accrue to CST holders associated with the Incumbent Blockchain, i.e., to BT1.
  8. 8.No Representations & Warranties by Bitfinex: Bitfinex makes no representations, warranties, or guarantees to you of any kind. All CSTs, all software, and all blockchains are offered strictly on an as-is, where-is basis and, without limiting the generality of the foregoing, are offered or made available to you without any representation as to merchantability or fitness for any particular purpose.
  9. 9.Limitation of Liability & Release: Important: Bitfinex assumes no liability or responsibility for and shall have no liability or responsibility for any Losses directly or indirectly arising out of or related to your use of or trading in one or more CSTs, Digital Tokens, or B2X, or your use of any one or more blockchains, including but not limited to Segwit2x after Contract Settlement. You hereby agree to release the Associates from liability for any and all Losses, and you shall indemnify and save and hold the Associates harmless from and against all Losses. The foregoing limitations of liability shall apply whether the alleged liability or Losses are based on contract, negligence, tort, unjust enrichment, strict liability, or any other basis, even if the Associates have been advised of or should have known of the possibility of such losses and damages, and without regard to the success or effectiveness of any other remedies.
  10. 10.Post-Contract Settlement: After Contract Settlement, Bitfinex may or may not list B2X, if existing, on the Site, in its sole and absolute discretion.