Introduction

These Terms of Use provide the terms and conditions under which you, whether personally or on behalf of an entity ("you" or "your"), are permitted to use, interact with or otherwise access the Interfaces or Features provided by [Netty Labs Inc.] ("the Company," "Netty" "we," "us," or "our"). These Terms of Use, together with any documents and additional terms or policies that are appended hereto or that expressly incorporate these Terms of Use by reference as well as our Privacy Policy (collectively, the "Terms"), constitute a binding agreement between you and us.

These Terms are applicable to (i) all content, informational functionality, and information features (the "Content Features") available on Nettyx.org (the "Site") and any other site to which the Terms are posted (each, as applicable, an "Interface") and (ii) software, including but not limited to the blockchain-based, app-specific rollup protocol (the "Protocol") known as Netty (hereinafter, the "Platform"), that may be available to users by connecting their self-hosted wallets via an Interface, including but not limited to the Site (the "Technology Features" and together with the Content Features, the "Features").

The Site primarily functions to provide professional prediction market infrastructure for trading financial event outcomes. If you are in a Restricted Jurisdiction (as defined below), you are only permitted to use the Content Features on the Site or any other Interface and may not use the Site or any other Interface for any other purpose and you may not access the Technology Features, including and in particular the Platform.

NOTICE: PLEASE REVIEW THE TERMS CAREFULLY. BY ACCESSING, INTERACTING WITH OR USING THE SITE OR ANY OTHER INTERFACE (INCLUDING BY LINKING YOUR WALLET, OR OTHERWISE CREATING AN IDENTIFIER ON THE SITE), ANY INTERFACE OR ANY FEATURE, YOU AGREE THAT YOU ARE ABLE TO ENTER INTO A BINDING AGREEMENT AND, AS SUCH, HAVE READ, UNDERSTOOD, AND AGREE TO BE BOUND BY THE TERMS, INCLUDING THE BINDING ARBITRATION AGREEMENT AND CLASS ACTION WAIVER BELOW. IF YOU DO NOT AGREE TO ALL OF THE TERMS, YOU ARE NOT AUTHORIZED TO INTERACT WITH, ACCESS OR USE ANY INTERFACE OR FEATURE.

USE OF THE SITE, PLATFORM OR TECHNOLOGY FEATURES FOR TRADING IS NOT PERMITTED BY PERSONS OR ENTITIES WHO RESIDE IN, ARE LOCATED IN, ARE INCORPORATED IN, HAVE A REGISTERED OFFICE IN, OR HAVE THEIR PRINCIPAL PLACE OF BUSINESS IN THE UNITED STATES OF AMERICA, OR ANY OTHER RESTRICTED TERRITORY AS DEFINED BELOW (ANY SUCH PERSON OR ENTITY FROM THESE JURISDICTIONS, A "RESTRICTED PERSON"). ADDITIONALLY, USE OF THE SITE, PLATFORM OR TECHNOLOGY FEATURES FOR TRADING IS NOT PERMITTED BY PERSONS OR ENTITIES (I) ON BEHALF OF ANY RESTRICTED PERSON(S) OR (II) DIRECTED, COORDINATED OR CONTROLLED BY ANY RESTRICTED PERSON (ANY SUCH PERSON OR ENTITY ALSO SHALL BE CONSIDERED A RESTRICTED PERSON).

THERE ARE NO EXCEPTIONS; THEREFORE, IF YOU ARE A RESTRICTED PERSON, THEN DO NOT ATTEMPT TO USE THE SITE, PLATFORM OR ANY OF THE TECHNOLOGY FEATURES TO TRADE. USE OF A VIRTUAL PRIVATE NETWORK ("VPN") OR ANY SIMILAR TOOL TO ATTEMPT TO OR TO CIRCUMVENT THE RESTRICTIONS SET FORTH HEREIN IS STRICTLY PROHIBITED. ANY PERSON IN VIOLATION OF THESE TERMS MAY HAVE THEIR WALLETS PLACED IN CLOSE-ONLY MODE AND BE PROHIBITED FROM ACCESSING THE TECHNOLOGY FEATURES IN OUR SOLE DISCRETION.

The Site and Features

Description of the Site and Features

The Site contains different functionality – one part provides information about financial markets and prediction market infrastructure (the "Information Site"), while another part contains features that allow users to send messages to the blockchain network in an entirely self-directed manner in order to engage in trades for certain event-based prediction contracts focused on financial outcomes including earnings, macroeconomic data, commodity levels, and cryptocurrency/equity price movements (the "Contracts").

The Platform is built as an app-specific rollup. Neither the Company operates a cryptoasset or derivatives exchange platform nor offers trade execution or clearing services in the traditional sense and, therefore, does not have control concerning your transactions using the Features. All matching, settlement, and risk management occurs through decentralized smart contract infrastructure.

The pricing information provided on the Site relating to Contracts does not represent an offer, a solicitation of an offer, or any advice regarding, or recommendation to enter into, a transaction with the Company.

Even when the Site appears to be dynamic (e.g., updating order books, displaying market data), at no time is the Company taking action directed by you or on your behalf. When you click the "Connect Wallet" feature on the Site such that your self-hosted cryptocurrency wallet ("Wallet") is able to provide information to be transmitted to the blockchain network, you should note that the Company (i) is not involved in providing or transmitting any such information to networks, (ii) cannot transmit any information to networks or otherwise assist in any transaction, (iii) never has access to and cannot control or provide guarantees relating to your Wallet and (iv) has no authority over and does not take possession or custody of your crypto assets at any time.

You are solely responsible for familiarizing yourself with your Wallet and its safety and security features, including any private keys and passwords associated therewith. We will not and cannot access your private key, password, or any cryptoassets held within your Wallet nor can we reverse any transactions you initiate with your Wallet.

You should familiarize yourself with the risks associated with transacting on blockchain networks, including but not limited to smart contract vulnerabilities, front-end vulnerabilities, hacks, phishing attacks, social engineering attacks, cryptoasset volatility, transaction irreversibility, liquidation risks, and the specific risks associated with leveraged trading and portfolio margin systems.

We do not effectuate, facilitate or control any transactions initiated via the Platform, and the Company will not be responsible for the result of any transactions, including but not limited to failed, inadvertent, or fraudulent transactions that may result in loss of funds or transaction fees or any other loss or harm to you.

Your Acknowledgement Relating to the Site and Information on the Site

You hereby acknowledge and agree that all information provided as part of the Content Features in connection with your access and use of the Site is intended for informational purposes only. The Site strives to provide accurate information about market conditions, order books, and financial data, but there is no guarantee or warranty that the information is updated, complete, or timely.

From time to time the Site, any other Interface or the Features may be inaccessible or inoperable for any reason, including, without limitation: (A) equipment malfunctions; (B) periodic maintenance procedures or repairs; (C) causes beyond the Company's control; (D) disruptions and temporary or permanent unavailability of underlying blockchain infrastructure or data availability layers; or (E) unavailability of third-party service providers including oracle providers.

None of the information provided on the Site, any other Interface, or through the Features should be construed as professional, investment, financial, tax, legal, or trading advice. Before you make any financial, legal, or other decisions involving the Features, you should seek independent professional advice from an individual who is licensed and qualified in the area for which such advice would be appropriate.

Modifications

To The Terms

We reserve the right, in our sole discretion, to modify the Terms at any time. The modified Terms will be posted on the Site with the last updated date. Any modified Terms will become effective upon posting. By continuing to access or use any Interface or Feature after modifications, you agree to be bound by the modified Terms.

To the Site, Interfaces, or Features

We reserve the right, in our sole discretion, to modify, substitute, eliminate, restrict access to, or add to the Site, any Interface, or any Feature at any time, with or without notice, including modifying risk parameters, margin requirements, market availability, order types, or liquidation procedures.

We may, at our sole discretion, suspend or disable (temporarily or permanently) the Site, any Interface, or the Features, in whole or in part, for any reason whatsoever, including to implement upgrades, address security issues, or comply with legal requirements.

Your Responsibilities, Representations & Prohibited Conduct

Your Representations

As a condition to accessing or using the Site or the Features, you represent and warrant to the Company the following:

Of Age and Legal Authority. The Site and Features are intended only for users who are 18 years of age or older and have the legal capacity to enter into binding agreements. If you are entering into the Terms on behalf of an entity, you represent that you have the legal authority to bind such entity.

Professional Sophistication. You represent and warrant that you possess sufficient knowledge, market sophistication, professional advice, experience and skills to engage with professional-grade prediction markets, leveraged trading, portfolio margin systems, and financial derivatives. You understand the risks associated with:

• Leveraged positions and margin calls

• Portfolio margining and cross-collateral systems

• Liquidation waterfalls and insurance fund mechanisms

• Mark-to-market accounting and blended mark pricing

• FIFO CLOB matching and order book dynamics

• Financial market event risk and outcome uncertainty

Sanctions. You represent that you are not subject to economic or trade sanctions, not on any prohibited persons list (including OFAC SDN list), and not operating in a sanctioned jurisdiction.

Restricted Jurisdictions. You acknowledge and agree that you are not permitted to access or trade on the Platform if you are residing in, a citizen of, organized in, or located in the following jurisdictions (collectively, the "Restricted Jurisdictions"): jurisdictions subject to comprehensive sanctions by the United States (including Iran, Syria, Cuba, North Korea, and certain regions of Ukraine), the United States of America, or any other jurisdiction we designate as restricted.

No VPN To Circumvent Restrictions. You do not, and will not, use VPN software or any privacy tools to circumvent restrictions that apply to the Site or Features.

Applicable Law. Your access to the Site and Features does not violate any applicable laws, and you will comply with all laws including but not limited to financial regulations, tax laws, and sanctions compliance.

Financial Risks and Trading Acknowledgements. You acknowledge and understand that:

• Prediction market contracts carry substantial financial risk

• Use of leverage amplifies both gains and losses

• Portfolio margin systems can result in positions being liquidated across multiple markets simultaneously

• Liquidations may occur rapidly during volatile market conditions

• The liquidation process follows a specific waterfall (pre-liquidation, partial liquidation, full takeover, insurance fund)

• You may lose your entire deposited amount and any leveraged positions

• Mark prices used for liquidation calculations blend multiple data sources and may differ from last traded prices

• FIFO matching means orders are filled in strict price-time priority

• Soft confirmations provide speed but final settlement occurs on the data availability layer

• Market conditions can change rapidly around scheduled financial events

BY USING THE PLATFORM TO TRADE, YOU CAN LOSE YOUR ENTIRE DEPOSITED AMOUNT PLUS ANY LEVERAGED EXPOSURE.

Contract Resolution. You acknowledge that Contracts are resolved based on objective, verifiable numeric outcomes from designated oracle feeds. The Company is not responsible for oracle feed accuracy, disputes related to settlement values, or resolution timing. All markets settle only on outcomes that can be verified by numeric data.

Professional Use. You acknowledge that the Platform is designed for professional trading use and is not intended for entertainment, gambling, or casual speculation.

Your Responsibilities & Prohibited Conduct

You agree to access and use the Site and Features only in an authorized, proper manner and in accordance with these Terms and all applicable laws.

You agree that you will not:

• Violate any applicable laws, regulations, or these Terms

• Engage in market manipulation, including but not limited to: spoofing, layering, front-running, wash trading, painting the tape, quote stuffing, or any other abusive trading practices

• Attempt to manipulate FIFO matching priority through technical means

• Exploit bugs, vulnerabilities, or unintended functionality in the Platform

• Circumvent risk management systems, margin requirements, or liquidation procedures

• Use the Platform in any way that creates systemic risk or threatens market integrity

• Provide false or misleading information or engage in fraudulent activity

• Use VPNs or similar tools to circumvent geographic restrictions

• Interfere with other users' access to or use of the Platform

• Attempt to gain unauthorized access to the Site, Platform, or underlying infrastructure

• Reverse engineer, decompile, or attempt to derive source code from the Platform (except as permitted by applicable open source licenses)

• Use automated trading systems that violate our fair use policies or create excessive load

• Trade on behalf of Restricted Persons or facilitate access for Restricted Persons

You acknowledge that engaging in prohibited conduct may result in: (i) immediate termination of access, (ii) positions being placed in close-only mode, (iii) forfeiture of rewards or incentive programs, (iv) reporting to relevant authorities, and (v) legal action.

Portfolio Margin and Risk Management

Portfolio Margin System

The Platform utilizes a portfolio margin system that evaluates risk across all your positions. Key features include:

• Initial Margin: Minimum collateral required to open positions

• Maintenance Margin: Threshold below which liquidation procedures begin

• Close-Out Margin: Final threshold triggering full position takeover

• Blended Mark Pricing: Mark prices calculated using oracle feeds, order book depth, and impact models

You acknowledge that portfolio margin allows for greater capital efficiency but also concentrates risk. A single market moving against you can affect margin availability across all positions.

Liquidation Procedures

When your account falls below maintenance margin requirements, the following liquidation waterfall applies:

1. Pre-Liquidation Constraints: Restrictions on opening new positions

2. Partial Liquidation: IoC orders to bring account back above maintenance margin

3. Full Takeover: Complete position closure if partial liquidation insufficient

4. Insurance Fund: Last resort to cover shortfalls

You acknowledge that:

• Liquidations can occur rapidly and without prior notice beyond margin warnings

• You may not receive optimal prices during liquidation

• Liquidation may not occur at your mark price

• In extreme market conditions, losses may exceed your deposited collateral

• The insurance fund is a systemic backstop and not a guarantee of your specific position

Oracle Resolution and Settlement

Markets on the Platform resolve based on objective, verifiable numeric data from designated oracle feeds. You acknowledge and agree that:

• The Company does not control oracle feeds or resolution outcomes

• Resolution is final once confirmed through the oracle mechanism

• Disputes regarding settlement values must follow the prescribed oracle dispute process

• Only markets with verifiable numeric outcomes are listed (no subjective or opinion-based markets)

• Settlement timing depends on oracle feed publication and may vary

• The Company is not liable for oracle feed errors, delays, or disputes

Intellectual Property Rights

The Company and its licensors own all right, title, and interest in the Site, Interfaces, and Features, excluding open source components. Subject to these Terms, we grant you a limited, revocable, non-exclusive, non-transferable license to access and use the Site and Features for their intended purpose.

Certain components of the Platform may be provided under open source licenses. You must comply with all applicable open source license terms.

Third Party Services

The Platform integrates with various third-party services including:

• Wallet providers (e.g., MetaMask, WalletConnect)

• Oracle providers

• Data availability layers

• Analytics providers

• Market data feeds

Your use of third-party services is governed by their respective terms and privacy policies. The Company is not responsible for third-party service availability, accuracy, security, or compliance.

Indemnification

You agree to defend, indemnify, and hold harmless the Company and its affiliates, employees, officers, and directors from all claims, damages, and expenses (including reasonable attorneys' fees) arising from:

• Your use of the Site, Platform, or Features

• Your breach of these Terms

• Your violation of applicable laws

• Your trading activities or positions

• Disputes with other users or third parties

• Your alleged infringement of third-party intellectual property rights

Disclaimers and Limitations of Liability

No Warranties

THE SITE, INTERFACES, AND FEATURES ARE PROVIDED "AS IS" WITHOUT WARRANTIES OF ANY KIND, WHETHER EXPRESS, IMPLIED, OR STATUTORY. THE COMPANY DISCLAIMS ALL WARRANTIES INCLUDING WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT, UNINTERRUPTED ACCESS, ERROR-FREE OPERATION, OR SECURITY.

THE COMPANY MAKES NO REPRESENTATIONS OR WARRANTIES REGARDING:

• Execution speed or soft confirmation timing

• Order book depth or liquidity

• Mark price accuracy

• Oracle feed reliability

• Liquidation timing or outcomes

• Insurance fund sufficiency

• Platform availability during high volatility

Limitations of Liability

TO THE MAXIMUM EXTENT PERMITTED BY LAW, THE COMPANY SHALL NOT BE LIABLE FOR:

• INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES

• LOSS OF PROFITS, REVENUE, DATA, OR OPPORTUNITIES

• TRADING LOSSES OR LIQUIDATION LOSSES

• DAMAGES ARISING FROM PLATFORM UNAVAILABILITY, ERRORS, OR DELAYS

• LOSSES DUE TO ORACLE FEED ISSUES OR SETTLEMENT DISPUTES

• LOSSES RESULTING FROM MARKET VOLATILITY OR ADVERSE PRICE MOVEMENTS

• COSTS OF PROCUREMENT OF SUBSTITUTE SERVICES

• UNAUTHORIZED ACCESS TO YOUR WALLET OR POSITIONS

IN ANY CASE, THE COMPANY'S AGGREGATE LIABILITY UNDER THESE TERMS SHALL NOT EXCEED $100 USD.

You acknowledge that you are using professional-grade trading infrastructure with significant leverage and risk, and you bear full responsibility for your trading decisions and outcomes.

Governing Law and Dispute Resolution

Governing Law

These Terms shall be governed by the laws of [Jurisdiction], without regard to conflict of law provisions.

Dispute Resolution

Prior to commencing legal proceedings, you and the Company agree to attempt resolution through good faith negotiations for 90 days following written notice of the dispute.

Mandatory Arbitration

Any unresolved dispute shall be determined by binding arbitration in [Jurisdiction] before one arbitrator. You and the Company agree that the arbitrator shall have exclusive authority to decide all issues relating to interpretation, applicability, enforceability, and scope of this arbitration agreement.

YOU UNDERSTAND THAT BY AGREEING TO THESE TERMS, YOU AND THE COMPANY ARE WAIVING THE RIGHT TO TRIAL BY JURY OR TO PARTICIPATE IN A CLASS ACTION.

Class Action Waiver

Any arbitration shall be conducted on an individual basis only. You agree that you will not bring or participate in any class action, consolidated action, or representative action against the Company.

General Terms

Entire Agreement

These Terms constitute the entire agreement between you and the Company regarding the subject matter herein.

No Agency Relationship

Nothing in these Terms creates any agency, partnership, joint venture, or employment relationship between you and the Company.

Severability

If any provision of these Terms is held invalid or unenforceable, the remaining provisions shall remain in full force and effect.

Survival

Sections relating to indemnification, limitations of liability, dispute resolution, and intellectual property shall survive termination of these Terms.

Contact Us

For questions, complaints, or concerns, please contact us at: hello@nettyx.org