Welcome to BitMerchants’ DeFi (Decentralized Finance) Terms. These terms govern your use of our DeFi services. By accessing or using these services, you agree to these terms. Please read them carefully.
1. Eligibility To use BitMerchants’ DeFi services, you must:
- Be at least 18 years old.
- Have a verified BitMerchants account.
- Comply with our Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures.
2. DeFi Services Overview BitMerchants provides access to various DeFi services, including but not limited to:
- Staking: Earn rewards by participating in blockchain networks.
- Yield Farming: Provide liquidity to DeFi protocols in exchange for returns.
- Lending and Borrowing: Participate in decentralized lending and borrowing pools.
- Liquidity Provision: Supply assets to decentralized exchanges (DEXs) and earn a share of trading fees.
3. Staking
- Supported Assets: BitMerchants supports staking for various cryptocurrencies. The list of supported assets may be updated periodically.
- Rewards: Staking rewards are distributed based on the protocol’s rules and are usually proportional to the amount staked and the duration of the staking period.
- Lock-up Periods: Some staking programs may require assets to be locked for a specified period. Early withdrawal of staked assets may result in penalties or loss of rewards.
4. Yield Farming
- Liquidity Pools: Provide liquidity to supported DeFi protocols by depositing your assets into liquidity pools.
- Rewards: Earn returns in the form of interest, fees, or governance tokens. Rewards are typically proportional to your contribution to the liquidity pool.
- Risks: Yield farming involves risks, including impermanent loss, smart contract vulnerabilities, and market volatility. BitMerchants is not responsible for any losses incurred.
5. Lending and Borrowing
- Decentralized Lending Pools: Deposit your assets into lending pools and earn interest from borrowers.
- Borrowing: Borrow assets from lending pools by providing collateral. The terms and interest rates are determined by the DeFi protocols.
- Collateral Management: Borrowers must maintain sufficient collateral to avoid liquidation. Collateral requirements and liquidation processes are governed by the protocol’s rules.
6. Liquidity Provision
- DEXs: Supply assets to decentralized exchanges and earn a share of the trading fees.
- Automated Market Makers (AMMs): Participate in AMMs by providing liquidity to trading pairs.
- Impermanent Loss: Be aware of the risk of impermanent loss when providing liquidity to AMMs, which occurs when the value of deposited assets changes relative to each other.
7. Security and Risk Management
- Smart Contract Risks: DeFi services rely on smart contracts, which are subject to vulnerabilities and bugs. BitMerchants does not guarantee the security of these contracts.
- Due Diligence: Users are advised to conduct their own due diligence before participating in any DeFi service. Understand the risks associated with each protocol and service.
- Insurance: Some DeFi services may offer insurance against certain risks. Details and coverage vary by service and protocol.
8. Fees
- Transaction Fees: BitMerchants may charge fees for transactions involving DeFi services. Fees are transparently disclosed before the transaction is processed.
- Service Fees: Additional fees may apply for specific DeFi services, such as staking or yield farming. These fees are detailed in the service terms.
9. Tax Implications
- Participation in DeFi services may have tax implications. BitMerchants does not provide tax advice, and it is your responsibility to comply with applicable tax laws. Consult a tax professional for guidance.
10. Amendments
- BitMerchants reserves the right to amend these DeFi Terms at any time. Any changes will be communicated to you, and your continued use of the DeFi services constitutes acceptance of the amended terms.
11. Termination of Service
- BitMerchants reserves the right to terminate or suspend your access to DeFi services at its sole discretion, without prior notice, for any reason, including but not limited to violation of these terms or illegal activities.
12. Contact Information
By using BitMerchants’ DeFi services, you acknowledge that you have read, understood, and agreed to these DeFi Terms.
