Regulations

Transactions within the Protocol are peer-to-peer, utilizing a pooled mechanism to facilitate exchanges without any single entity bearing the counterparty risk. Transactions are thus governed exclusively by pre-set rules encoded into the Protocol, rather than controlled by any central authority.

Interacting with the Protocol should thus be viewed as engaging with automated and autonomous technology, without the oversight or guarantees typically provided by traditional financial institutions.

For transactions initiated through the Protocol, there is no identified individual or entity bearing counterparty risk and subject to specific regulations of a determined jurisdiction.

The Association does not partake in any of the services facilitated by the Protocol nor does it accept any deposits of crypto assets from Protocol users. Users of the Protocol should understand that they do not hold any claims against the Association for crypto assets transferred to the Protocol and transactions initiated therewith, including when such interactions occur through the Interface.

Consequently, the Association operates outside the purview of existing regulatory frameworks for these services and assets, has not been authorized or licensed by any authority, and does not extend guarantees for crypto assets contributed to the Protocol or any transactions conducted therein. Participants engage with the Protocol at their sole discretion, acknowledging that the regulatory landscape and assurances for these assets and activities may be subject to change, independent of the Association's authority or intervention.

The Association takes measures to ensure that its interface does not provide access to any services or crypto assets on the Protocol that could potentially be classified as financial services and instruments in its jurisdiction.

While the activities facilitated by the Protocol might mirror those found in traditional financial services, they do not necessarily fall under the same regulatory frameworks.

Given the dynamic nature of regulatory environments and case law, the Association cannot assure that the current classification of such services and crypto assets will remain unchanged in the future. The regulatory landscape governing such services and assets is continuously evolving, which may lead to a reevaluation of how these offerings are perceived legally.

Given the inherently global reach of decentralized protocols, the Association also cannot guarantee uniform categorization of such services and crypto assets across different jurisdictions. Legal and regulatory perceptions can vary significantly from one region to another, potentially affecting how these services and assets are categorized and regulated worldwide.

This underscores the importance of users conducting their due diligence and staying informed about the regulations applicable in their respective jurisdictions.