Last Updated: 17 July 2024
1.1. Description of Service. M2 Earn, a feature within the M2.com platform (“M2 Platform”), and related functionality permits eligible M2 Platform users (“Earn Users”) to earn rewards on certain supported Virtual Assets maintained in their M2 Earn Accounts (“Earn Accounts”).
1.2. Contractual Agreement. These terms and conditions (“Earn T&Cs”), and any others referenced or incorporated herein, constitute a legally binding contract between you, as an Earn User, and M2 Global Wealth Limited (“M2”, “we”, “our” or “us”) that provides you access to M2 Earn. These Earn T&Cs do not apply to your use of any other products or services offered by M2 or its Affiliates, except as expressly provided in these Earn T&Cs. By using M2 Earn, you are entering into a binding contract and shall be deemed to have expressly read, understood and agreed to be bound by these Earn T&Cs in addition to the M2 Platform terms of service (“M2 Terms of Service”), which you accepted to gain access to the M2 Platform and which are available in the same. Unless otherwise stated, defined terms used in these Earn T&Cs shall have the same meanings given to them in the M2 Terms of Service. In the event of any inconsistency between the M2 Terms of Service and these Earn T&Cs with respect to M2 Earn, these Earn T&Cs shall prevail.
2. Eligibility. To be eligible to use M2 Earn, you must:
• Be an onboarded existing M2 Platform user in compliance with the M2 Terms of Service;
• Be at least 18 years of age or the legal age of majority in the jurisdiction in which you reside (whichever is higher);
• Not be a Restricted Person or located in a Restricted Location;
• Not be subject to any sanctions imposed by any government or regulatory authority, including without limitation those imposed by the United Nations, the European Union, any EU country, the UK Treasury, the United Arab Emirates Executive Office for Control & Non-Proliferation or the U.S. Office of Foreign Assets Control (“OFAC”); and
• Read, understand, and agree to our Privacy Policy.
Notwithstanding your meeting the eligibility criteria above, we reserve the right to refuse your request to use and access the M2 Earn service, including your ability to open an Earn Account, to suspend your access to M2 Earn, and terminate your Earn Account at any time in our sole discretion. Further, we reserve the right to change the eligibility criteria at any time at our sole discretion. If we become aware that you are an ineligible Earn User or otherwise determine that you are in violation of any applicable terms and conditions, including the M2 Terms of Service, we may delete your Earn Account immediately without notice and ban you from using any of our or our products and services. We are under no obligation to notify you in any way upon deciding that you are or have become ineligible to use M2 Earn. In addition to the other rights set forth herein and to those that may be available to us, you agree that you will indemnify and hold harmless M2 and its Affiliates from any legal or monetary consequences that arise from any unauthorized use, including without limitation, all uses associated with an ineligible Earn User.
3.1. General. Earn Users may earn rewards on certain supported Virtual Assets that you allocate from your Virtual Asset wallet on the M2 Platform (“M2 Platform Crypto Wallet”) to their Earn Accounts for a defined period of time (“Fixed Term Plan”), indefinite period of time (“Flexi Term Plan”) or a custom period of time (“Custom Term Plan”) (together “Earn Plans”).
3.2. Earn Users have the right to access and view the status of their Earn Plans, including the accrued rewards, at any time through their account on the platform, subject to outages, downtime and other applicable policies (including these Earn T&Cs and the M2 Terms of Service). M2 will provide regular updates and statements reflecting the current status of the user's plan, including the principal amount, interest earned, and any applicable fees or charges. Earn Users are responsible for reviewing these updates and statements to ensure that their account information is accurate and up to date.
3.3. Each Earn Plan may maintain only one type of Virtual Asset and remains subject to an amount up to the maximum value specified by us from time to time (the “Maximum Value”). Earn Users are permitted to have multiple Earn Plans provided that the aggregate value of the Virtual Assets maintained in all active Earn Plans does not exceed the Maximum Value. In the event that we reduce the Maximum Value such that the aggregate value of the Virtual Assets maintained across all of an Earn User’s active Earn Plans exceeds the reduced Maximum Value, we will:
3.3.1. In the case of Earn Users with only active Flexi Term Plans, we will deallocate and transfer the amount that exceeds the reduced Maximum Value, in an equivalent amount of the excessive Virtual Asset, from your Earn Account to your corresponding M2 Platform Crypto Wallet;
3.3.2. In the case of Earn Users with only active Fixed Term Plans or Custom Term Plans, we will delay enforcement of the reduced Maximum Value until the expiration of the first Fixed Term Plan/Custom Term Plan that brings the aggregate value of the Virtual Assets maintained across all active Fixed Term Plans and Custom Term Plans below the reduced Maximum Value; and
3.3.3. In the case of Earn Users with both active Flexi Term Plans and either a Fixed Term Plan or Custom Term Plan, we will first deallocate and transfer the amount maintained across all Fixed Term Plans/Custom Term Plans that exceeds the reduced Maximum Value, in an equivalent amount of whichever Virtual Asset we choose, from your Earn Account to your corresponding M2 Platform Crypto Wallet. In the event that the aggregate value of the Virtual Assets maintained across all Fixed Term Plans/Custom Term Plans remains in excess of the reduced Maximum Value after we deallocate and transfer all Virtual Assets held in Flexi Term Plans to your corresponding M2 Platform Crypto Wallet, we will delay enforcement of the reduced Maximum Value until the expiration of the first Fixed Term Plan/Custom Term Plan that brings the aggregate value of the Virtual Assets maintained across all Fixed Term Plans/Custom Term Plans below the reduced Maximum Value.
3.4.1. Plan Minimum. Each Fixed Term Plan requires a minimum amount of Virtual Assets to be maintained (“Minimum Quantity”) which varies by Virtual Asset and is disclosed in the M2 Platform.
3.4.2. Plan Duration. Each Fixed Term Plan will be for a fixed duration ranging from one (1) day to 360 days. The rate at which Earn Users earn rewards (“Rewards Rate”) shall apply for the duration of the Fixed Term Plan. We reserve the right to amend the terms of any Fixed Term Plan in line with section 3.8 below.
3.4.3. Rewards Accrual. Rates of rewards specified in the M2 Platform are anticipated rates. These rates are not guaranteed and are subject to the risks specified below in these Earn T&Cs. Rewards will begin accruing on the Virtual Assets allocated to and maintained in a Fixed Term Plan on the day after you allocate Virtual Assets to your Earn Account. Rewards will accrue on a daily basis based on the value of the Virtual Assets held in the Fixed Term Plan. Accrued rewards will be credited in the same Virtual Asset allocated to and held in the Fixed Term Plan post completion of Plan Duration. In the event that a Fixed Term Plan is terminated before accrued rewards are credited, such rewards will be forfeited or subject to a penalty which may be updated to from time to time at the sole discretion of M2 Platform..
3.4.4. Withdrawal. You may submit a request to close your Earn Account prior the expiration of a Fixed Term Plan, but you agree that any early withdrawal shall be at our sole discretion and that, in the event of early withdrawal, any accrued rewards not yet credited to your M2 Platform Crypto Wallet will be either forfeited or subject to a penalty which shall be disclosed on the M2 Platform. Note that partial withdrawals will not be possible.
3.4.5 Automatic Renewal. The Auto-Renew Feature is allowed Fixed Term Plans, allowing Earn Users to automatically renew their plans upon maturity. This feature is designed to facilitate seamless continuation of investments, enabling users to benefit from compounding without manual intervention. Upon automatic renewal, the interest rate applicable will be the rate offered at the time of renewal, not the rate from the previous term. By default, the Auto-Renew Feature is disabled, granting users the flexibility to activate or deactivate this option via the Earn Plan subscription page or active plan screen. Users can adjust their Auto-Renew settings up to 24 hours before the plan's maturity. Note: This feature does not apply to Flexible Plans.
3.4.6 Expiration. Upon expiration of a Fixed Term Plan which has not been renewed, the Virtual Assets allocated to it will automatically be deallocated and transferred to your corresponding M2 Platform Crypto Wallet within 24 hours (with such timing being on a best-efforts basis).
3.5.1. Plan Minimum. Each Flexi Term Plan requires a Minimum Quantity which varies by Virtual Asset and is disclosed in the M2 Platform. You must always maintain the Minimum Quantity of a given Virtual Asset to accrue any rewards in a Flexi Term Plan.
3.5.2. Plan Duration. The duration of each Flexi Term Plan is perpetual. You may deallocate and transfer Virtual Assets allocated to a Flexi Term Plan at any time, subject to outages, downtime, and other applicable policies (including these Earn T&Cs and the M2 Terms of Service).
3.5.3. Rewards Accrual. Rates of rewards specified in the M2 Platform are anticipated rates. These rates are not guaranteed and are subject to the risks specified below in these Earn T&Cs. Rewards will begin accruing on the Virtual Assets allocated to and maintained in a Flexi Term Plan on the day after you allocate such Virtual Assets to your Earn Account. Rewards will accrue daily and will be based on the value of the Virtual Assets held in the Flexi Term Plan. Accrued rewards will be credited in the same Virtual Asset allocated and held in the Flexi Term Plan to your corresponding M2 Platform Crypto Wallet on cancellation of the Plan. In the event that a Flexi Term Plan is terminated before accrued rewards are credited, such rewards will be forfeited or subject to a penalty which shall be disclosed on the M2 Platform.
3.5.4. Withdrawal. You may submit a request to close your Flexi Term Plan anytime and the Virtual Assets allocated to it will be deallocated and transferred to your corresponding M2 Platform Crypto Wallet within 24 hours (with such timing being on a best-efforts basis).
3.6.1. Plan Minimum. Each Custom Term Plan requires a Minimum Quantity which varies by Virtual Asset and is disclosed in the M2 Platform. You must always maintain the Minimum Quantity of a given Virtual Asset to accrue any rewards in a Custom Term Plan.
3.6.2. Plan Duration. The duration of each Custom Term Plan remains at your discretion, subject to the terms of these Earn T&Cs.
3.6.3. Rewards Accrual. Rates of rewards specified in the M2 Platform are anticipated rates. These rates are not guaranteed and are subject to the risks specified below in these Earn T&Cs. Rewards will begin accruing on the Virtual Assets allocated to and maintained in a Custom Term Plan on the day after you allocate such Virtual Assets to your Earn Account. Rewards will accrue daily and will be based on the value of the Virtual Assets held in the Custom Term Plan. Accrued rewards will be credited in the same Virtual Asset allocated and held in the Custom Term Plan to your corresponding M2 Platform Crypto Wallet post completion of Plan Duration. In the event that a Custom Term Plan is terminated before accrued rewards are credited, such rewards will be forfeited or subject to a penalty which may be updated to from time to time at the sole discretion of M2 Platform.
3.6.4. Withdrawal. You may submit a request to close your Earn Account prior the expiration of a Custom Term Plan, but you agree that any early withdrawal shall be at our sole discretion and that, in the event of early withdrawal, any accrued rewards not yet credited to your M2 Platform Crypto Wallet will be either forfeited or subject to a penalty which shall be disclosed on the M2 Platform. Note that partial withdrawals will not be possible.
3.6.5 Automatic Renewal. The Auto-Renew Feature is allowed for Custom Term Plans, allowing Earn Users to automatically renew their plans upon maturity. This feature is designed to facilitate seamless continuation of investments, enabling users to benefit from compounding without manual intervention. Upon automatic renewal, the interest rate applicable will be the rate offered at the time of renewal, not the rate from the previous term.By default, the Auto-Renew Feature is disabled, granting users the flexibility to activate or deactivate this option via the Earn Plan subscription page or active plan screen. Users can adjust their Auto-Renew settings up to 24 hours before the plan's maturity. Note: This feature does not apply to Flexible Plans.
3.6.6 Expiration. Upon expiration of a Custom Term Plan which has not been renewed, the Virtual Assets allocated to it will automatically be deallocated and transferred to your corresponding M2 Platform Crypto Wallet within 24 hours (with such timing being on a best-efforts basis).
3.7. Rights of M2. We reserve the right to and at any time, in our sole discretion, without liability to you to:
• Refuse your request to open an Earn Account;
• Change the eligibility criteria for registration or use of M2 Earn or an Earn Account;
• Close, suspend, limit, restrict, or terminate your access to M2 Earn, the M2 Platform, or other products and services provided by our Affiliates;
• Change, update, remove, cancel, suspend, disable, or discontinue any plan, features, component, content, incentive, or referral plan of M2 Earn including the rewards rate, maturity date, lock-in periods or other material terms that may impact your rewards accrual during the duration of any active Earn Plan you have.
4. Prohibited Activities. By accessing and using M2 Earn, you agree that you will not do any of the following (“Prohibited Activities”):
• Engage in any activity that would violate or assist in the violation of any Applicable Law;
• Violate or breach any terms or conditions in these Earn T&Cs, M2 Terms of Service, any other agreement between you and M2 or between you and an Affiliate of M2 or set of applicable terms and conditions for products and services offered by M2 or its Affiliates, or our Privacy Policy;
• Provide us with any false, inaccurate, or misleading information or otherwise attempt to defraud us;
• Attempt to gain unauthorized access to our network, system, or websites or Earn Accounts other than your own;
• Decompile, disassemble, or otherwise reverse engineer our M2 Platform, M2 Earn, or any other related product, program, or system or in any way infringe on our intellectual property rights including, but not limited to, copyrights, patents, trademarks, or trade secrets;
• Engage in any form of data mining, indexing, scraping, surveying, or otherwise with respect to our M2 Platform, M2 Earn, or any other related product, program, or system; or
• Unduly burden or hinder the functionality and/or operation of any aspect of our M2 Platform, M2 Earn, or any other product, program, or system offered, maintained, or provided by us or our Affiliates.
• You are not authorized to sublicense, distribute, or otherwise make M2 Earn available to any third party, including your clients (“Make Available”), without our prior written consent (which may be withheld for any reason, determined in our sole discretion). Any violation of the prohibition outlined in this paragraph shall be deemed a violation of these Earn T&Cs and will result in the immediate termination of your Earn Account and will result in M2 taking legal action against you for any claims, damages, losses or demands incurred or suffered by M2 as a result of such violation.
• Notwithstanding that M2 may grant you consent to Make Available M2 Earn in certain circumstances (determined in our sole discretion on a base by base basis), under no circumstances shall you be permitted to market, advertise or otherwise promote or distribute M2 Earn as an M2 product to your clients or any third party. Your marketing materials and/or communications whether distributed (howsoever described) to your clients, sub-clients or any third party, must not expressly make reference to M2 or imply or suggest an affiliation with M2. Failure to comply with this provision will result in the immediate termination of your Earn Account and may lead to legal action for any damages incurred by M2.
5.1. Earn Account. We reserve the right to suspend, restrict or terminate your Earn Account at any time at our sole discretion. For example, we may suspend, restrict or terminate your Earn Account if:
• We are required to do so by a court order, regulatory order, government order, or a facially valid subpoena;
• We reasonably suspect you of engaging in Prohibited Activities as described in these Earn T&Cs; or
Upon termination of your Earn Account, you are entitled to recover your Virtual Assets in accordance with the M2 Terms of Service and these Earn T&Cs, unless we are prohibited from doing so by law or a court order or where we reasonably suspect that such funds were obtained through fraud or any unlawful means or in connection with any criminal activities.
5.2. Agreement. These Earn T&Cs terminate immediately upon you closing your Earn Account or our termination of your Earn Account, but such termination shall not prevent any party from seeking remedies against any other party for any breach of these Earn T&Cs occurring prior to termination.
5.3. Contact. If you have any questions regarding M2 Earn or need assistance in connection with the suspension or termination of your Earn Account, please contact us at [email protected].
6.1. Indemnification. You will defend, indemnify, and hold harmless M2, its Affiliates, and each of their respective employees, officers, directors, and representatives from and against any claims, damages, losses, liabilities, costs, and expenses (including reasonable attorneys’ fees) arising out of or related to your breach of these Earn T&Cs, including any unauthorized sub-distribution, your violation of any statute, regulation, or ordinance, or the rights of any third party..
NOTWITHSTANDING ANY PROVISIONS TO THE CONTRARY IN THESE EARN T&CS OR OTHERWISE MADE AVAILABLE TO YOU FROM TIME TO TIME, IN NO EVENT SHALL M2 OR ANY OF ITS AFFILIATES BE LIABLE TO YOU FOR ANY TYPE OF INCIDENTAL, SPECIAL, EXEMPLARY, PUNITIVE, INDIRECT, OR CONSEQUENTIAL DAMAGES, INCLUDING, BUT NOT LIMITED TO, LOST REVENUE, LOST PROFITS, REPLACEMENT OF GOODS, LOSS OF TECHNOLOGY, LOSS OF DATA, OR INTERRUPTION OR LOSS OF USE OF SERVICE OR EQUIPMENT EVEN IF SUCH PARTY WAS ADVISED OF THE POSSIBILITY OF SUCH DAMAGES AND WHETHER ARISING UNDER THEORY OF CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE.
Except as provided in these Earn T&Cs and to the extent permitted by law, we disclaim all other representations or warranties, express or implied, made to you, your Affiliates, or any other person including, without limitation, any warranties regarding quality, suitability, merchantability, fitness for a particular purpose, title, non-infringement, or otherwise, regardless of any course of dealing, custom, or usage of trade, of any service or any goods provided incidental to M2 Earn under these Earn T&Cs.
Our liability in respect of representations and warranties that cannot be excluded under these Earn T&Cs is limited to, at our option, any one of resupplying, replacing, or repairing, or paying the cost of thereof, the services in respect of which the breach occurred.
IN NO EVENT WILL OUR AGGREGATE LIABILITY FOR ANY LOSS OR DAMAGE ARISING IN CONNECTION WITH M2 EARN (BEYOND THE PRINCIPAL AMOUNT ALLOCATED AND REWARDS ACCRUED) EXCEED THE LESSER OF US $100 OR THE TOTAL FEES THAT YOU PAID US FOR ITS USE DURING THE TWELVE (12) MONTH PERIOD IMMEDIATELY PRECEDING THE EVENT GIVING RISE TO THE CLAIM FOR LIABILITY. THE FOREGOING LIMITATIONS OF LIABILITY SHALL APPLY TO THE FULLEST EXTENT PERMITTED BY LAW IN THE APPLICABLE JURISDICTION.
6.3. Tax Obligations. Uncertainty in the treatment of taxes related to Virtual Assets may expose you to future or unknown tax obligations. It is your sole responsibility to determine what taxes, if any, arise from your use of M2 Earn. Further, you are solely responsible for reporting and paying any applicable taxes. Except to the extent that we are required by applicable law, we will not determine whether, or to what extent, you are liable for taxes, report them, or withhold them.
6.4. Relationship. M2 is not your trustee, investment advisor, or fiduciary. By providing the M2 Earn service to you, M2 does not become a trustee, investment advisor, or form any sort of fiduciary relationship with you. We have no trust or other obligations with respect of your Virtual Assets other than those expressly specified in these Earn T&Cs.
6.5. Entire Agreement. These Earn T&Cs (together with the M2 Terms of Service and Privacy Policy) represents the entire agreement between you and us with respect to M2 Earn and supersedes all prior representations, understandings, agreements, or communications between you and us, whether written or verbal, including any statements published in our whitepaper regarding M2 Earn.
6.6. Amendments. We may amend or modify these Earn T&Cs from time to time by posting the updated Earn T&Cs on the M2 Platform or in accordance with the M2 Terms of Service and such amendment or modification shall take effect immediately. Your continued use of M2 Earn constitutes your acceptance of the updated Earn T&Cs; if you do not agree with the updated Earn T&Cs, your sole and exclusive remedy is to discontinue use of M2 Earn.
6.7. Severability. If any provision, in whole or in part, of these Earn T&Cs shall be determined to be invalid or unenforceable by a court of competent jurisdiction or a governmental body, such provision shall be changed and interpreted to accomplish its objectives to the greatest extent possible under Applicable Law and the validity and enforceability of any other provision of these Earn T&Cs shall not be affected.
6.8. Survival. All provisions of these Earn T&Cs which by their nature extend beyond its termination, including, without limitation, provisions pertaining to suspension and termination, shall survive such termination.
6.9. Waiver. The delay or failure of one party to require performance of any provision of these Earn T&Cs shall not constitute a waiver of that party’s right to require performance at any time thereafter. Further, the waiver of one party to seek recovery for the other party’s non-performance shall not constitute a waiver by the former party to seek recovery for any subsequent non- performance.
6.10. Assignment, Delegation, or Transfer. You may not assign, delegate, or transfer any rights or obligations under these Earn T&Cs without our prior written consent. Any such attempted assignment, delegation, or transfer shall be null and void. We reserve the right to assign, delegate or transfer these Earn T&Cs or our rights and/or obligations hereunder without restriction, including without limitation to Affiliates or subsidiaries, or to any successor in interest of any business associated with the M2 Platform or M2 Earn.
6.11. Third Party Rights. Other than the Affiliates of M2, a person who is not a party to these Earn T&Cs shall have no right under these Earn T&Cs.
6.12. Conflicts. In the event there are conflicts between these Earn T&Cs and the M2 Terms of Service, these Earn T&Cs shall prevail to the extent of the conflict, except in respect of any conflict or part thereof relating solely to those aspects of the M2 Platform other than M2 Earn (in which case the M2 Platform Terms of Service will prevail).
(a) Any dispute, claim, controversy, or action arising out of or related to these Earn T&Cs or the existence, breach, termination, enforcement, interpretation or validity thereof, or your Earn Account:
i. shall be subject to the exclusive jurisdiction of the Commonwealth of The Bahamas (“The Bahamas”);
ii. if not resolved through formal good faith discussion within thirty (30) days after one party has served a written notice on the other party, describing the matter(s) in dispute in reasonable detail, shall be referred to and finally settled by final and binding arbitration as outlined herein.
(b) You and M2 agree to submit claims to the arbitrator regarding issues of arbitrability, the validity, scope, and enforceability of these Earn T&Cs, his or her jurisdiction, as well as any gateway, threshold, or any other challenges to these Earn T&Cs, including claims that these Earn T&Cs are unconscionable.
(c) You and M2 further agree:
i. Unless the parties have agreed in writing to a single arbitrator to be mutually appointed, the number of arbitrators shall be three (3) with each party appointing one and the parties together appointing the third;
ii. The arbitrator(s) must be a neutral party acceptable to all parties;
iii. The cost of the arbitration, not including the legal fees of the parties, shall be shared equally by the parties during an arbitration;
iv. The prevailing party in any arbitration shall be entitled to recover its reasonable attorney’s fees and costs;
v. The seat or legal place of the arbitration shall be Nassau, New Providence, The Bahamas;
vi. The language to be used in the arbitral proceedings shall be English;
vii. The UNCITRAL Model Rules on Arbitration (as revised in 2010), and as further revised as may be, shall be the rules for the conduct of the arbitration (subject to such modifications as the parties may agree); and
viii. The parties agree to waive any right to an appeal of the award and that judgment on any award rendered by the arbitrator may be entered and enforced by the Courts of The Bahamas.
(d) For the avoidance of doubt, and without limiting the generality of the foregoing, this provision expressly applies to any claim, whether in tort, contract or otherwise. You irrevocably and unconditionally agree and consent to the jurisdiction and venue of The Bahamas, and you waive any objections thereto, including under the doctrine of forum non conveniens or other similar doctrines.
(e) You and M2 agree that any party hereto may bring claims against the others only on an individual basis and not as a plaintiff or class member in any purported class or representative proceedings or action. To the fullest extent permitted by Applicable Law, the parties hereby waive any entitlement to seek and agree that no adjudicator may consolidate or join more than one person’s or party’s claims and may not otherwise preside over any form of a consolidated, representative, or class proceeding. Any relief awarded to any one Earn User cannot and may not affect any other Earn Users.
TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE PARTIES HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING OF ANY KIND WHATSOEVER ARISING OUT OF OR RELATING TO THESE TERMS OR ANY BREACH THEREOF, ANY USE OR ATTEMPTED USE OF THE SITE OR THE SERVICES BY YOU, AND/OR ANY OTHER MATTER INVOLVING THE PARTIES.
6.14. Force Majeure. We shall not be liable for any delay, error, interruption, or failure to perform any obligation under these Earn T&Cs where the delay or failure is directly or indirectly resulting from any cause beyond our reasonable control including, but not limited to i) acts of God, nature, court, or government; ii) failure or interruption in private or public telecommunications networks, communication channels, or information systems; iii) acts or omissions of a party for whom we are not responsible; iv) delay, failure, interruption in, or unavailability of third-party services and sites; v) strikes, lockouts, labor disputes, war, terrorist acts, or riots; and vi) viruses, malware, other malicious computer code, or the hacking of any part of the M2 Platform or M2 Earn.
You understand and agree that your use of the M2 Platform and M2 Earn is at your own risk. This section is not exhaustive and does not disclose all the risks associated with Virtual Assets and the use of our products and services. You should carefully consider whether such use is suitable for you in light of your circumstances and financial resources.
6.15 Liability for Sub-Clients. If you are authorized to sub-distribute M2 Earn, you shall be solely responsible for all actions and liabilities of your sub-clients. M2 has no responsibility or liability for any sub-clients or the services provided to them. You agree to indemnify and hold harmless M2 from any claims, damages, losses, liabilities, costs, and expenses (including reasonable attorneys’ fees) arising out of or related to any actions or omissions by your sub-clients. You agree to defend, indemnify, and hold harmless M2, its Affiliates, and each of their respective employees, officers, directors, and representatives from and against any claims, damages, losses, liabilities, costs, and expenses (including reasonable attorneys’ fees) arising out of or related to any unauthorized marketing or promotion of M2 Earn as an M2 product to your clients or their clients.
7.1. Legal and Regulatory. The regulatory status of Virtual Assets is currently unsettled, varies among jurisdictions, and is subject to significant uncertainty. It is possible that in the future, certain laws, regulations, policies, or rules relating to Virtual Assets, blockchain technology, or blockchain applications may be implemented which would directly or indirectly affect or restrict the services that we provide to you.
YOU ARE RESPONSIBLE FOR DETERMINING WHETHER THE USE OF M2 EARN AND ANY OF OUR RELATED SERVICES IS LEGAL IN YOUR JURISDICTION AND YOU SHALL NOT USE THEM SHOULD SUCH USE BE ILLEGAL IN YOUR JURISDICTION. YOU ARE RESPONSIBLE FOR DETERMINING THE REGULATORY STANDING OF THE VIRTUAL ASSETS IN YOUR EARN ACCOUNT. IF YOU ARE UNCERTAIN, PLEASE SEEK INDEPENDENT LEGAL ADVICE.
We may be forced to suspend, discontinue, or to change aspects of M2 Earn and any of our services in any jurisdictions without notice and for whatever reason if demanded by regulatory authorities. In such instances, Virtual Assets in your Earn Account may be frozen for an indefinite period of time until the matter is resolved.
7.2. Network Events. In the event of a Fork and/or an Airdrop, to the extent that we have any rights or are able to take any action, M2 shall have the sole discretion to take any action that it deems appropriate, including (but not limited to) determining what action to take in respect of the Fork and/or Airdrop, determining who should have ownership or receive newly created Virtual Assets and/or benefits (if any), recalling, suspending or terminating your Earn Plan(s) early and/or amending any terms in relation to your Earn Plan(s) (regardless of whether you are subscribed to a Fixed Term Plan, Flexi Term Plan or Custom Term Plan). You acknowledge and agree that all benefits flowing from rights in relation to the Virtual Assets(s) associated with the Virtual Assets you allocate to your Earn Account (including all benefits and rights flowing from any property received from such Forks and/or Airdrops) shall be retained by M2 and/or its Affiliates, to the fullest extent. You agree to pay or transfer to M2 such property, rights or benefits pursuant to such Forks and/or Airdrops, failing which, M2 shall have the absolute right to suspend your Earn Plan(s) and/or Earn Account, and/or arrange to sell, dispose of or redeem in any manner and method all the Virtual Assets held in your Earn Plan(s) and/or Earn Account without further reference to you.
7.3. Operational Risk Disclosure. You acknowledge that by using M2 Earn, your assets may be utilized in various activities within the network, such as bitcoin mining, staking, liquid staking, borrowing and lending, proprietary trading, and decentralized finance (DeFi) operations within the cryptocurrency space. These on-chain yield generation endeavors introduce additional complexities and can be subject to both operational and market risks. M2 conducts thorough due diligence and maintains continuous monitoring systems to manage deployments and minimize counterparty risks. However, Earn Users should be aware that there are inherent operational and custodial risks associated with these activities.
Operational risks include but are not limited to the potential for system failures, network attacks, equipment or hardware malfunctions especially in mining operations, and market volatility. Mining operations can be interrupted due to power outages, hardware failures, or other unforeseen issues. Staking and liquid staking, while often seen as less risky than mining, can still be affected by market dynamics, changes in network consensus, or malicious actors. In particular, trading and lending activities may expose users to risks such as price fluctuations, liquidity issues, and default or bankruptcy of counterparties.
Custodial risks refer to the possibility of loss or theft of assets held by M2, which may result in a partial or total loss of the assets. Although M2 takes reasonable steps to secure its platform and employs best practices in safeguarding user assets, there is always a risk of loss due to unforeseen circumstances, such as cyber attacks or errors made by third-party custodians.
7.4. Liquidity Risk Disclosure. M2 implements a liquidity management policy, and all assets are deployed on-chain with varying redemption periods. This includes assets used in mining, staking, and liquid staking endeavors where the liquidity can be influenced by network conditions, asset lock-up periods, or market demands. While M2 strives to return assets according to the timelines specified in the plan, Earn Users should understand that this is based on a best-effort approach and may be subject to periodic updates at M2's sole discretion.
7.5. Counterparty/Credit Risk. Earn Users participating in lending or borrowing activities related to Virtual Assets should be aware of the counterparty risk involved. Counterparty risk refers to the chance that the party on the opposite side of a transaction may fail to fulfill their contractual obligations, which could result in financial losses for the Earn User. In the context of lending/borrowing products, this may involve borrowers defaulting on their loans or lenders not providing the agreed-upon funds. While measures are taken to mitigate these risks, it is important to recognize that the complete elimination of counterparty risk is not feasible. By engaging in lending or borrowing transactions within the Virtual Asset space, Earn Users acknowledge and accept the inherent risks associated with depending on counterparties to meet their commitments.
7.6. Lending Risk. You do not have any oversight or control over the Virtual Assets that you have allocated to M2 as an Earn User, and, subject to the next sentence, any gain or loss (beyond any accrued rewards as specified in these Earn T&Cs) from our activities will be borne by M2. However, if any entity or third party that M2 lends to defaults on its obligations to M2 then we may impose limits on your ability to use M2 Earn or reduce the interest rates we are willing to pay. If our losses are large, we may become unable to meet our obligations to you in terms of repayment of Virtual Assets back to you. Although we cannot remove this risk entirely, to reduce it we perform due diligence on all entities and third parties we deal with. In the worst case scenario, if M2 were to become unable to pay its debts as they fall due, you would become a general unsecured creditor of M2, and you may not receive the same amount of Virtual Assets as you have lent by way of your participation in an Earn Plan.
7.7. Cybersecurity. Virtual Assets may be subject to expropriation, theft and/or fraud; hackers and other malicious groups or organizations may attempt to interfere with our network and/or system in various ways including malware attacks, denial of service attacks, consensus-based attacks, Sybil attacks, smurfing, and spoofing which may result in the loss of your Virtual Assets or the loss of your ability to access or control the same. In such event, we do not guarantee any remedy, refund, or compensation.
7.8. Source Code Weakness. There is risk that the M2 Platform or any of our products and services may unintentionally include weakness or bugs in the source code which may adversely affect M2 Earn.
7.9. Force Majeure. Earn Users should be aware that their investments may be subject to risks associated with force majeure events. Force majeure events refer to unforeseen, extraordinary circumstances or events beyond the reasonable control of the parties involved, which may prevent or significantly impact the performance of contractual obligations. Examples of such events include, but are not limited to, natural disasters, acts of terrorism, cyber attacks, government actions or regulations, and significant market disruptions. In the event of a force majeure, the performance of the Earn Plans may be adversely affected, which could result in delays or inability to access funds, reduced earnings, or even potential loss of assets. While efforts are made to minimize the impact of such events, Earn Users should acknowledge that the full elimination of risks arising from force majeure events is not possible. By participating in an Earn Plans, Earn Users accept the inherent risks associated with force majeure events and their potential effects on their investments.
7.10. Insurance. The Virtual Assets held in your Earn Account are not protected by any government- backed or private insurance scheme.