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BitMagen Terms and Conditions

Last Updated: April 12, 2025

By using the BitMagen mobile application ("App") and services ("Services"), you agree to be bound by the following Terms and Conditions ("Terms"). If you do not agree, please do not use the App or Services.

1. Service Description

BitMagen provides a service to protect the USD value of your Bitcoin (BTC) against market drops without requiring you to transfer or sell your BTC. You pay a protection fee, and if BTC's price falls below the protected threshold at expiry, a payout is issued to your wallet within 24 hours, subject to these Terms. Protection is offered via the App or Nostr, with real-time status tracking.

2. Eligibility

You must be at least 18 years old and have the legal capacity to enter into contracts to use the Services. Your country of residence must not be one of the following:

• Afghanistan
• Belarus
• Bosnia and Herzegovina
• Canada
• Central African Republic
• Côte d'Ivoire
• Cuba
• Democratic Republic of the Congo
• Guam
• Guinea-Bissau
• Iran
• Iraq
• Japan
• Kosovo
• Libya
• Mali
• Myanmar
• Nicaragua
• North Korea
• North Macedonia
• Panama
• Puerto Rico
• Russian Federation
• Samoa
• Serbia
• Somalia
• South Sudan
• Sudan
• Syrian Arab Republic
• United Arab Emirates
• United States
• Venezuela
• Virgin Islands (U.S.)
• Yemen
• Zimbabwe

By using the App, you confirm that you meet these requirements.

3. User Responsibilities

• Wallet Security: You are responsible for securing your Bitcoin wallet, private keys, and access to the BTC wallet address from which the protection fee is sent, as this is the address to which any payouts will be sent. BitMagen does not hold or control your BTC and is not liable for losses due to inaccessibility of the BTC address.
• Accurate Information: You must provide accurate BTC amounts and wallet addresses when requesting protection.
• Accurate Payment: You must send the exact protection fee quoted to the specified BTC address. BitMagen is not liable for outcomes or losses resulting from incorrect amounts sent.
• Protection Fee: You agree to pay the quoted protection fee to activate coverage. Fees are non-refundable unless BitMagen fails to process payouts within 24 hours of expiry, as per our guarantee.
• Credential Security: You are responsible for safeguarding your 4-digit PIN and 12-word seed phrase, as these are used to identify you. If lost, BitMagen cannot identify you, but this does not prevent payouts from being sent to the BTC wallet address from which the protection fee was paid.
• Compliance: You agree to use the Services in compliance with all applicable laws and regulations.

4. Protection Process

• Quote Request: You may request a protection quote via the App or Nostr, specifying the BTC amount (minimum 0.1 BTC) and duration.
• Fee Payment: Upon receiving a quote, you must send the protection fee to the provided BTC address. Protection activates within 24 hours of fee confirmation.
• Monitoring: You can track protection status (in-the-money or out-of-money) via the App or Nostr.
• Payouts: If BTC’s price drops below the protected threshold at expiry, BitMagen will calculate the payout (protected value minus current value, less the fee) and send it to the BTC address from which the protection fee was paid within 24 hours. Payouts are only sent to this address and cannot be redirected to another address for AML compliance. Estimated payouts provided in quotes or at expiry are indicative, and actual outcomes may vary. If BTC rises, no payout is issued, and your BTC remains in your wallet, minus the fee.
• No Early Cancellation: Protection cannot be canceled or exited early by BitMagen or the client once activated, unless prematurely closed by a third-party financial service provider, as outlined in Section 5. You acknowledge and agree that protection remains active until expiry or such premature closure.

5. Risks and Limitations

• Market Volatility: Protection is based on market conditions at expiry. Extreme swings may affect payout calculations, and actual payouts may differ from estimates.
• No Custody: BitMagen does not take custody of your BTC, but you bear the risk of wallet security, transaction errors, and inaccessibility of your BTC address.
• Third-Party Financial Service Providers: BitMagen relies on third-party financial service providers to obtain protection. These providers may close out protection positions for reasons beyond BitMagen’s control, resulting in premature closure of your protection. You agree that BitMagen is not liable for such closures or any resulting losses.
• Service Availability: BitMagen relies on third-party financial platforms for protection. Service disruptions beyond our control may affect functionality, and BitMagen is not liable for any losses incurred.
• Incorrect Payments: Outcomes cannot be guaranteed if the protection fee sent is incorrect. BitMagen is not liable for losses due to incorrect fee amounts.
• Lost Credentials: If you lose your 4-digit PIN or 12-word seed phrase, BitMagen cannot identify you, but payouts will still be sent to the original BTC address. BitMagen is not liable for any issues arising from lost credentials.
• No Guarantee of Profit: The Services aim to protect value, not guarantee profits. If BTC rises, you receive no payout but retain your BTC.

6. Privacy

• BitMagen collects minimal data, including your public key, wallet address, and protection details, solely to provide the Services.
• Communications via Nostr or the App are encrypted, but you are responsible for securing your Nostr keys, App access (e.g., PIN, biometric data), and 12-word seed phrase.
• We do not share your data except as required by law or to process payouts.

7. Fees and Payments

• Protection fees vary based on BTC amount, duration, and market conditions (e.g., ~0.1 BTC for 3 months, ~0.15–0.25 BTC for 9–12 months).
• Fees are paid in BTC to a BitMagen-provided address and are non-refundable except as stated in our payout guarantee.
• You are responsible for any blockchain transaction fees and ensuring the correct fee amount is sent.

8. Intellectual Property

• The App, website, and all content (e.g., logos, text) are owned by BitMagen and protected by intellectual property laws. You may not reproduce or distribute them without permission.

9. Limitation of Liability

• BitMagen is not liable for losses due to:
• Market volatility or differences between estimated and actual payouts.
• Wallet breaches, inaccessibility of your BTC address, or user errors (e.g., incorrect addresses or fee amounts).
• Premature closure of protection by third-party financial service providers.
• Service disruptions caused by third-party platforms or other factors beyond our control.
• Lost 4-digit PIN or 12-word seed phrase, or any resulting inability to identify you.
• Indirect or consequential damages.
• Our liability is limited to the protection fee paid. The Services are provided "as is" without warranties beyond the 24-hour payout guarantee.
• You acknowledge and agree to these limitations as a condition of using the Services.

10. Termination

• You may stop using the Services at any time, but active protection continues until expiry or premature closure by a third-party provider.
• BitMagen may suspend or terminate your access if you violate these Terms or applicable laws.

11. Governing Law

• These Terms are governed by the laws of Delaware, USA, without regard to conflict of law principles.

12. Changes to Terms

• BitMagen may update these Terms at any time. Continued use of the Services constitutes acceptance of the updated Terms.

13. Contact Us

• For questions, message us via Nostr at [Insert Nostr Public Key] or through the App’s support feature.

By checking the box and proceeding, you acknowledge that you have read, understood, and agree to these Terms and Conditions.