Using our Crypto Services

Using our Crypto Services

Introduction

The use of our Services may allow the Client to effect custody of Digital Assets. We refer to these types of services as “Crypto Services.”

The Crypto Services are governed by the terms of the Master Services Agreement, these Crypto Services Terms and Conditions, and any applicable addendums or policies (collectively, the “Terms”). These Terms outline the conditions under which Asset Reality will provide the Crypto Services and form an integral part of the Agreement between You and Us.

You may access or use the Crypto Services only after entering into the Agreement and agreeing to be bound by these Terms. Before entering into the Agreement, please read these Terms carefully to ensure you fully understand them.

You acknowledge that Asset Reality uses Third‑Party Providers to effect the custody of Digital Assets. The choice of custodian and trading partners may vary over time, depending on the type and location of the assets held via the Platform.

PLEASE READ THESE LEGAL DISCLOSURES CAREFULLY. BY ACCESSING OR USING THE CRYPTO SERVICES, YOU ACKNOWLEDGE AND AGREE TO BE LEGALLY BOUND BY THESE DISCLOSURES.

While Asset Reality is registered as a Virtual Asset Service Provider (“VASP”) with the OAM (Italy), the FSA (Seychelles), and as an MSB with FinCEN (USA) (please refer to our website for the current registration status of Asset Reality entities), neither Asset Reality nor the Crypto Service has been licensed or authorised by the Central Bank of Italy or the Financial Services Authority Seychelles.

You will not be entitled to the regulatory protections typically available for services offered by licensed or authorised firms in those jurisdictions. In particular, any business conducted in connection with the Crypto Service is not covered by any depositor protection scheme, and you cannot refer any complaint regarding the Crypto Service to any Banking Ombudsman in these jurisdictions.

No Insurance

You acknowledge, understand, and agree that Digital Assets and Asset Reality accounts are not insured against losses. They are not covered by the Federal Deposit Insurance Corporation, the Securities Investor Protection Corporation in the United States, or by any comparable organisation anywhere in the world.

The Asset Reality entity providing the Crypto Services is the one identified on the Order and governed by the applicable law as specified in the MSA.

1. Definitions

For the purposes of this Custody Agreement (and where terms are not defined in our Master Services Agreement), the following definitions apply:

• Asset Reality: Also referred to as “AR,” “We,” “Our,” or “Us.”
• Client: Also referred to as “You” or “Your.”
• Custody Account: A segregated custody account provided by Asset Reality to hold Digital Assets.
• Digital Asset: Any Digital Asset (including “Supported Digital Assets”) that has been Delivered to Asset Reality to be held in a Custody Account on your behalf until withdrawn or until it ceases to be classified as a Digital Asset under this Agreement.
• Digital Asset Balance: The quantity of each Digital Asset, denominated in the appropriate Supported Digital Asset type.
• Crypto Services: The crypto-related functions within our overall Services. These allow Clients to:
  • Hold interests in supported Digital Assets;
  • Sell seized Digital Assets (“Realise Seized Cryptoassets”); and/or
  • Send Digital Assets to their other Digital Assets Wallets (“Withdraw to Crypto”).
• Cut-off Time: 13:00 UTC.
• Applicable Laws and Regulations: The laws, regulations, and rules of any relevant governmental or regulatory authority, including:
  • Those of relevant tax authorities;
  • AML (Anti‑Money Laundering) and CTF (Counter‑Terrorism Financing) provisions (e.g., as mandated by Seychelles);
  • Issuances or directives from the Office of Foreign Assets Control (“OFAC”).
• Authorised Person: Any Authorised User designated by the Client to have access to the Client’s Custody Account based on role‑based permissions.
• Blockchain Address: A public address on a blockchain used to hold Digital Assets (for example, a Bitcoin address for bitcoin or an Ethereum address for ether).
• Business Day: A day (other than Saturdays, Sundays, or public holidays in the U.S. and/or the UK) during which Business Hours (typically 9:00 am to 5:00 pm) apply, unless otherwise notified.
• Delivery: The transfer of Supported Digital Assets to one or more Blockchain Addresses provided by the receiving Party to the sending Party. Supported Digital Assets are considered “Delivered” only after Asset Reality confirms the required network confirmations on the blockchain.
• Effective Date: The date on which the Supported Digital Assets are delivered to Asset Reality. For clarity, this is tied to the final blockchain confirmation (not the initiation or broadcast of the transfer).
• General Instruction: Any notice, instruction, or communication that is not a Proper Instruction. Asset Reality may rely on any General Instruction it believes in good faith has been given by an Authorised Person.
• Other Functionality: Additional functions associated with certain Digital Assets, such as staking, protocol governance, or smart contract functionality.
• Proper Instruction: A specific, clear, and actionable direction from the Client (or an authorised representative) regarding the management, transfer, or disposal of your Digital Assets. It should include detailed information (e.g., asset type, amount, destination wallet) and secure authorisation (such as via multi‑factor authentication or a cryptographic signature).
• Supported Digital Assets: Digital Assets represented or issued using distributed ledger technology that can be held in a Custody Account. These may include cryptocurrencies, stablecoins, tokens, CBDCs, and NFTs.
• Withdrawal Request: A request submitted via a Proper Instruction that specifies the type and amount of Digital Assets to be withdrawn from your Custody Account, along with the destination Blockchain Address.

2. Custodian Appointment

2.1. You hereby appoint Asset Reality as the custodian of your Digital Assets, to be securely held within your designated Custody Account in accordance with the terms of this Agreement and the MSA. By entering into this Agreement, you confirm your intent to establish a bailment of Digital Assets with Asset Reality, whereby we act as the designated bailee, assuming custodial control and care of your assets in line with our responsibilities.

3. Custody Account

3.1. Asset Reality will establish a Custody Account in your name. This account will have one or more unique Blockchain Addresses where your Digital Assets will be segregated from other assets and verifiable on the blockchain. You will receive all Blockchain Addresses associated with your Custody Account.

3.2. Ownership of your Digital Assets will be clearly recorded as belonging solely to you. Our records will ensure your assets are separately and accurately identified. Asset Reality will not loan, stake, hypothecate, pledge, assign, or encumber any Digital Assets in your Custody Account.

3.3. Proper Instructions: You must designate at least two persons as Authorised Persons for each Custody Account—one to create instructions and a separate one to authorise them. The same individual may not serve both roles.

3.4. You authorise Asset Reality to rely on and act upon any proper instruction received from you (or on your behalf) that is accepted in good faith. Although we may require evidence of authority, you remain responsible for all contracts, obligations, costs, or expenses incurred from such instructions. If your authorised delegation is revoked or altered, you must notify us immediately; failure to do so will make you liable for all resulting costs or fees.

3.5. Asset Reality may, at its discretion, require that an instruction be confirmed in writing (including via electronic signature) before acting on it.

3.6. We may designate approved communication methods for submitting instructions. If an instruction is not submitted via an approved channel, we may refuse to act on it. We will provide at least 30 days’ notice before changing the approved channels.

3.7. Asset Reality may refuse any instruction or cancel/reverse an order if, in our sole discretion, it is necessary or prudent to do so. We will notify you of any such decision as soon as reasonably practicable; however, we are not liable for any losses arising from these actions.

3.8. Once given, you may amend or cancel any instruction only with our express written consent.

4. Delivery

4.1. You agree that Supported Digital Assets are considered “Delivered” only after they have reached a Blockchain Address provided by Asset Reality. We have no obligation regarding Supported Digital Assets unless they have been Delivered to us. Furthermore, if we believe accepting delivery would expose us to liability, we may refuse delivery (except when required to return such assets to you).

5. Deposits

5.1. Deposits of Supported Digital Assets to a Blockchain Address associated with your Custody Account may occur without our involvement. Deposits will be credited to your Custody Account once they are Delivered.

6. Withdrawals

6.1. When you submit a Withdrawal Request via our Platform, all Authorised Persons will receive an email notification. An Authorised Person (other than the one initiating the request) must approve the request via our Platform (a “Withdrawal Confirmation”).

6.2. A Withdrawal Request will be approved following new or recent successful multi‑factor authentication. After a Withdrawal Confirmation is issued, your request will be processed within one Business Day following the next Cut‑off Time.

6.3. You acknowledge that for Proper Instructions, we may not be able to authenticate the origin of the instruction beyond our reasonable good‑faith determination.

6.4. We reserve the right to refuse to execute any Withdrawal Request that we believe may violate applicable laws or regulations.

6.5. We may rely on any action that we reasonably believe has been taken by an Authorised Person.

6.6. For liquidation (“Realise Seized Cryptoassets”) requests, liquidation will be carried out by a Third‑Party Provider. The liquidation valuation will be subject to Third‑Party Pricing and any applicable fees as set out in the Order.

6.7. Asset Reality does not control the underlying software protocols governing Digital Assets. These protocols (and their associated smart contracts) are generally open source and subject to change (e.g., forks). By using the Crypto Services, you acknowledge that: 

(i) Transactions on Governance Modifiable Blockchains may be affected by protocol changes;

(ii) Sudden changes (“forks”) in operating rules may occur; and

(iii) Forks may materially affect the value, function, or name of the Digital Assets.

In the event of a fork, Asset Reality may temporarily suspend aspects of the Crypto Services (with notice) and decide whether to support either branch. Asset Reality bears no liability for losses arising from protocol changes, Governance Modifiable Blockchains, or unsupported fork branches.

7. Fees

7.1. The Custody Fee is calculated at the rate specified in the applicable Order and accrues daily against your Digital Asset Balance from the day the Supported Digital Assets are Delivered (i.e., become Digital Assets). We will invoice you on a recurring basis, and—at our sole discretion—we may deduct the Custody Fee from the Digital Assets we hold on your behalf if your balance falls below the accrued but uncollected fee.

7.2. An administrative withdrawal fee (“Administrative Withdrawal Fee”) may be deducted in connection with a Withdrawal Request, per the Fee Schedule in the Order.

7.3. You will receive a monthly, itemised account statement (“Custody Statement”) via our Platform listing the accrued Daily Fees for your Digital Assets.

8. Termination and Cancellation

8.1. Asset Reality reserves the right to suspend or terminate our custody services under this Custody Agreement in accordance with the Account Termination provisions of the Master Services Agreement.

8.2. If the Crypto Services are terminated or cancelled, you may withdraw the Digital Assets that have been Delivered to us for up to 90 days following the deactivation or cancellation date, subject to applicable law or valid court orders.

8.3. In the event of cancellation or termination by you, you are responsible for all costs incurred in processing any Withdrawal Request.

9. Representations, Warranties, and Covenants

9.1. You represent and warrant—and reaffirm each time you initiate a Withdrawal Request or deliver Supported Digital Assets—that:

• If you represent a legal entity, it is duly organised, validly existing, and in good standing.  

• You have the power to enter into this Custody Agreement and to make Withdrawal Requests, and to perform your obligations hereunder.  

• Your performance of this Agreement does not conflict with any law, order, or contract.  

• All necessary governmental and other consents have been obtained.  

• Your obligations under this Agreement are legal, valid, and binding.  

• You are in compliance with all Applicable Laws and have obtained all required regulatory licences and consents.  

• You are aware of and accept the risks associated with giving Proper Instructions, and you (and your Authorised Persons) will safeguard all credentials related to such instructions.  

• You acknowledge that Supported Digital Assets are new asset forms with evolving legal frameworks, and you accept the risk of potential loss or diminution in value.  

• You agree that Asset Reality does not own or control the underlying software protocols, and we are not liable for any actions or omissions by developers or promoters of those protocols.  

• When delivering Custody-Only Digital Assets, you do so from a wallet you own and control.  

• When submitting a Withdrawal Request for Custody-Only Digital Assets, you are delivering to a wallet you own and control.  

• Neither you nor any transferee of Digital Assets via a Withdrawal Request is subject to sanctions under OFAC, OFSI, the EU, the UN, DFAIT, or similar authorities, nor are you located in a sanctioned country.  

• You are not the issuer, sponsor, or affiliate of the issuer or sponsor of any Custody-Only Digital Assets held in your Custody Account.

9.2. Asset Reality represents and warrants—and reaffirms with each Withdrawal Request—that:  

• We are duly organised and in good standing.  

• We have the power to execute this Custody Agreement and satisfy Withdrawal Requests.  

• Our performance does not conflict with any applicable law or contractual obligation.  

• Our obligations hereunder are legal, valid, and binding.

9.3. These representations and warranties are in addition to those set forth in the Master Services Agreement.

10. Custodial Obligations

10.1. Asset Reality will use reasonable care in maintaining your Custody Account and safeguarding your Digital Assets; however, nothing herein obligates us to risk our own funds or property.

10.2. We segregate all client funds and Digital Assets from our own and from those of other clients, as described in our Segregation and Safekeeping of Digital Assets Policy.

10.3. Our ‘Platform Agreement’ governs this Custody Agreement—including warranties, liability disclaimers, force majeure, and indemnities.

10.4. In the event of a market disruption, we may, at our sole discretion, suspend custody services or restrict your actions via our custody services. You acknowledge that market prices may change significantly when services resume, and we are not liable for any resulting losses.

10.5. Neither Party shall be liable for any indirect, special, incidental, punitive, or consequential losses or damages.

10.6. We maintain accurate records of each Custody Account and all associated Digital Assets, including receipts and withdrawals.

10.7. We may perform our obligations under this Agreement through subcontractors or agents; however, such arrangements do not relieve us of our responsibilities.

10.8. We have no duty to inquire into, recommend, or supervise the suitability of any transaction involving Digital Assets, nor to extend credit or financial accommodation unless separately agreed in writing.

10.9. We reserve the right to retain or set off, against any Digital Assets (or their value as reasonably determined), any obligations you may owe us.

10.10. We are authorised to supply information regarding any Custody Account or Digital Assets if required by law, regulation, court order, or government directive. To the extent permitted by law, we may provide notice of such requests. You waive any claims for damages arising from our disclosure or our inability to provide notice.

10.11. We have no further duties or responsibilities regarding any Custody Account or Digital Assets beyond those expressly set forth herein.

10.12. We maintain a commercially reasonable disaster recovery system for all records associated with your Custody Account.

11. Your Obligations

11.1. You agree to indemnify and hold Asset Reality and its affiliates harmless from any losses, claims, or liabilities (including reasonable legal fees and expenses) arising from your actions or inactions or any breach of this Custody Agreement. This indemnity is a continuing obligation.

11.2. You are responsible for all taxes, assessments, duties, and governmental charges (including any interest or penalties) related to your Digital Assets or any related transactions.

11.3. You and all Authorised Persons must successfully complete our client onboarding process per our compliance policies. You agree to promptly notify us if:  

• You become subject to any laws administered by OFAC, OFSI, the EU, the UN, DFAIT, or similar;  

• You become located, organised, or resident in a sanctioned country or territory; or  

• You become aware that you or any asset or transaction is under investigation.

END OF TERMS

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Last Updated: 28 Feb 2025 | Version: 1.0