First version of protocol disclaimer

DISCLAIMER.md

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+**HATS PROTOCOL**
+
+**TERMS OF USE**
+
+THE TERMS OF USE CONTAINED HEREIN (THESE “**TERMS**”) GOVERN YOUR USE OF THE HATS
+
+PROTOCOL, WHICH IS A DECENTRALIZED PROTOCOL ON THE ETHEREUM BLOCKCHAIN (the
+
+“**PROTOCOL**”) THAT INTEND TO INCENTIVISE WHITE HAT HACKERS/AUDITORS WITH FUNDS THAT
+
+ARE BEING COLLECTED FROM PROJECTS AND THEIR TOKEN HOLDERS. THESE TERMS ARE A
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+MULTI-PARTY CONTRACT AMONG YOU AND ALL OTHER CONTRIBUTORS, PARTICIPANTS AND
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+USERS OF THE PROTOCOL, INCLUDING: (I) CONTRIBUTORS TO THE PROTOCOL’S CODE; (II) USERS
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+(DEPOSITORS OF CRYPTOCURRENCIES); (III) VAULT COMMITTEE MEMBERS; AND (IV)
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+HACKERS/AUDITORS.
+
+**PLEASE READ THESE TERMS CAREFULLY, INCLUDING ALL DISCLAIMERS AND RISK FACTORS,**
+
+**BEFORE USING THE PROTOCOL. BY USING THE PROTOCOL, YOU ARE IRREVOCABLY**
+
+**CONSENTING TO BE BOUND BY THESE TERMS.**
+
+**IF YOU DO NOT AGREE TO ALL OF THESE TERMS, DO NOT USE THE PROTOCOL**. **YOUR RIGHT TO**
+
+**USE THE PROTOCOL IS SUBJECT TO, AND DEPENDENT UPON, YOUR AGREEMENT TO ALL TERMS**
+
+**AND CONDITIONS SET FORTH HEREIN, WHICH AGREEMENT SHALL BE EVIDENCED BY YOUR USE**
+
+**OF THE PROTOCOL.**
+
+Minors Prohibited: The Protocol is not directed to individuals under the age of eighteen (18) or
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+the age of majority in your jurisdiction if the age of majority is greater. If you are under the age
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+of eighteen or the age of majority (if greater), you are not authorized to access or use the
+
+Protocol. By using the Protocol, you represent and warrant that you are above such age.
+
+**Please be advised that these Terms contain provisions, including an Agreement to Arbitrate,**
+
+**that govern how claims that you may have or assert relating to the Protocol or the use thereof**
+
+**or these Terms are resolved, which will require the parties to submit claims they may have**
+
+**against one another to binding and final arbitration. Under the Agreement to Arbitrate, the**
+
+**parties will (1) only be permitted to pursue claims against each other on an individual basis,**
+
+**not as a plaintiff or class member in any class or representative action or proceeding and (2)**
+
+**only be permitted to seek relief (including monetary, injunctive, and declaratory relief) on an**
+
+**individual basis.**
+
+\1. **The Protocol**
+
+(a)
+
+The Protocol is a decentralized protocol on the Ethereum blockchain, that is
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+intended to incentivise white hat hackers/auditors with funds that are being collected
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+from projects and their token holders. Given the nature of a decentralized blockchain
+
+protocol, the Protocol operates in a decentralized, automatic manner, and it is not
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+controlled by any person or entity. The source code underlying the Protocol has been
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+released in open source form, and is available at
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+https://github.com/hats-finance/hats-contracts. Changes to the software code and rules
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+of the Protocol can only be made by the holders of more than a certain percentage (as
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+shall be set from time to time within the Protocol’s code) of the Protocol’s governance
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+tokens, unless the Protocol is forked in which case changes can be made by the forkers.
+
+
+
+
+
+(b)
+
+**Therefore, although the original code for the Protocol was written by Incentive**
+
+**Alignment Ltd., a British Virgin Islands company (“IA”), once the protocol was released**
+
+**and launched on the Ethereum blockchain, IA has no control over it or its operation,**
+
+**the Hats DAO governance token, which itself is decentralized, has certain control rights**
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+**over the Protocol, and the Protocol’s code at any given time may have been changed**
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+**or modified by other parties and may not reflect the original code released by IA. AS**
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+**AN OPEN SOURCE, DECENTRALIZED PROTOCOL, THAT CAN BE MODIFIED BY OTHER**
+
+**PARTIES AT ANY TIME, IA DISCLAIMERS ANY RESPONSIBILITY OR LIABILITY OF ANY**
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+**TYPE OR NATURE OR UNDER ANY LEGAL THEORY FOR YOUR USE OF THE PROTOCOL,**
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+**WHICH WILL BE MADE AT YOUR SOLE AND EXCLUSIVE RISK. YOU ARE RESPONSIBLE**
+
+**FOR VERIFYING THE PROPER OPERATION, PERFORMANCE, FUNCTIONALITY AND**
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+**SECURITY OF THE PROTOCOL BEFORE USING I T, AND ASSUME FULL RISK AND**
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+**RESPONSIBILITY FOR YOUR USE OF THE PROTOCOL AND/OR ANY VAULT.**
+
+(c)
+
+Vaults are controlled by independent committee members, unaffiliated with IA
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+or the Hats DAO. Neither IA nor the Hats DAO assumes any responsibility or liability for
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+the actions or omissions of the committee members, and shall have no responsibility or
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+liability for any such actions or omissions. Your use of the Protocol and any Vault is at
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+your sole risk and responsibility. We urge you to carefully review the operation,
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+functionality, performance and committee members of each Vault prior to depositing
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+crypto assets within a vault.
+
+\2. **License; No Warranties; Limitation of Liability**
+
+(a) The software underlying the Protocol is licensed for use in accordance with the MIT
+
+License, which can be accessed here: https://github.com/hats-finance/hats-contracts.
+
+(b) THE PROTOCOL IS PROVIDED BY THE COPYRIGHT HOLDERS AND CONTRIBUTORS "AS IS",
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+“WITH ALL FAULTS” and “AS AVAILABLE” AND ANY EXPRESS OR IMPLIED WARRANTIES,
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+INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY
+
+AND FITNESS FOR A PARTICULAR PURPOSE ARE DISCLAIMED.
+
+(c) IN NO EVENT SHALL THE COPYRIGHT HOLDER OR CONTRIBUTORS BE LIABLE FOR ANY
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+DIRECT, INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY, OR CONSEQUENTIAL DAMAGES
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+(INCLUDING, BUT NOT LIMITED TO, PROCUREMENT OF SUBSTITUTE GOODS OR
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+SERVICES; LOSS OF USE, DATA, OR PROFITS; OR BUSINESS INTERRUPTION) HOWEVER
+
+CAUSED AND ON ANY THEORY OF LIABILITY, WHETHER IN CONTRACT, STRICT LIABILITY,
+
+OR TORT (INCLUDING NEGLIGENCE OR OTHERWISE) ARISING IN ANY WAY OUT OF THE
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+USE OF THIS SOFTWARE, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.
+
+**3. Risk Disclaimers**
+
+(a) The Protocol enables you to deposit certain blockchain-based cryptocurrencies, to
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+interact with certain Vaults and provides a smart contract that provides additional rules
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+regarding the hacker rewards process. The choice to enter into a Vault is solely your
+
+own. You acknowledge that neither IA nor the Hats DAO offers or undertakes to verify
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+the identity of any committee members and does not assume any responsibility or
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+liability for any actions or omissions of any other party using the Protocol.
+
+
+
+
+
+(b) It is not possible to ‘cancel’ or ‘undo’ deposits or withdrawals into or out of Vaults, and
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+therefore neither IA nor the Hats DAO will have any liability for deposits or withdrawals
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+which you enter into mistakenly.
+
+(c) Carefully review the risk factors for using the Protocol located at: [*insert link*]. These risk
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+factors may be updated from time to time, so we urge you to check them periodically. By
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+utilizing the Protocol, you represent that you understand the inherent risks associated
+
+with cryptographic systems; and warrant that you have an understanding of the usage
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+and intricacies of cryptographic tokens, digital assets, blockchains and other distributed
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+and decentralized systems, and smart contracts.
+
+(d) By using the Protocol, you acknowledge and recognize that use of the Protocol and/or
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+any Valut and deposit of cryptocurrencies or other digital assets in the Protocol or any
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+Vault is at your own risk and will be subject to the rules encoded within the Protocol and
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+the Vault, the Hats DAO and the Vault committee members.
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+(e) The Protocol, Vaults and blockchain networks are decentralized, open source systems
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+and may still be under active development (a) may contain bugs, errors and defects, (b)
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+may function improperly or be subject to periods of downtime and unavailability, (c)
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+may result in total or partial loss or corruption of cryptocurrencies deposited within
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+them and/or data and (d) may be modified at any time, including through the release of
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+subsequent versions, all with or without notice to you. Neither IA nor the Hats DAO will
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+be liable or responsible for any losses or damages to you as a result of any of the
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+foregoing.
+
+(f) Where you attempt to enter into a transaction, there may be a delay between your
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+initiation of that transaction and its eventual execution, or any other malfunction. Such
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+delays and malfunctions may be caused by delays inherent in the functioning of the
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+underlying blockchain.
+
+**4. Governing Law; Jurisdiction; Agreement to Arbitrate; No Class Action; Waiver of Right**
+
+**to Jury Trial**
+
+Any claim or dispute relating to the Protocol or the use thereof or these Terms will be
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+governed by and interpreted in accordance with the laws of the British Virgin Islands,
+
+without reference to its conflict-of-laws principles and the United Nations Convention
+
+Relating to a Uniform Law on the International Sale of Goods may not be applied.
+
+All claims and disputes arising out of or in connection with these terms, the Protocol
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+and/or the use thereof shall be finally settled under the Rules of Arbitration of the
+
+International Chamber of Commerce by one or more arbitrators appointed in
+
+accordance with the said Rules. The arbitration will be conducted in the English language
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+and held by teleconference or, if teleconference is not possible, in the British Virgin
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+Islands (the “**Agreement to Arbitrate**”).
+
+You must bring any and all such claims or disputes in your individual capacity and not as
+
+a plaintiff in or member of any purported class action, collective action, private attorney
+
+general action, or other representative proceeding. This provision applies to class
+
+arbitration.
+
+You waive the right to demand a trial by jury.
+
+
+
+
+
+**5. Severability**
+
+If any provision hereof is adjudged by any court of competent jurisdiction to be
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+unenforceable, that provision shall be limited or eliminated to the minimum extent
+
+necessary so that these Terms shall otherwise remain in full force and effect while most
+
+nearly adhering to the intent expressed herein.