SHKG Creation and SharkGate Platform Conditions:
Explanatory Note & Governance Terms
1 Principles
1/. By transferring Ether (ETH) to the Smart Contract System and the Smart Contract System creating SharkGate Tokens (“SHKG”), the User understands and accepts that the User makes a contribution into a Smart Contract System for the development of the SharkGate platform, as described in the SharkGate Crowdfunding Whitepaper (SharkGate Platform” / “the Whitepaper”). For the Whitepaper and/or further information on the SharkGate Platform, visit: https://play.sharkgate.ai . The information contained in the Whitepaper and on the website is of descriptive nature only, are not binding and do – unless explicitly referred to herein – not form part of the Terms as set forth under para. 4 below.
2/. The User understands and accepts that while the individuals and entities, assigned to this task will make reasonable efforts to develop and complete the SharkGate Platform, it is possible that such development may fail and User’s SHKG may become useless and/or valueless due to technical, commercial, regulatory or any other reasons (see also Chapter 5 regarding Risks). The User is also aware of the risk that even if all or parts of the SharkGate Platform are successfully developed and released in full or in parts, due to a lack of public interest, the SharkGate Platform could be fully or partially abandoned, remain commercially unsuccessful or shut down for lack of interest or other reasons. The User therefore understands and accepts that the transfer of ETH to the Smart Contract System and the creation of SHKG by the Smart Contract System carry significant financial, regulatory and/or reputational risks (including the complete loss of value of created SHKGs, if any, and attributed features of the SharkGate Platform).
3/. The User furthermore understands and accepts that in the creation of the SHKG, any implemented governing rights of the User, as well as the assignment of the execution of the SharkGate Platform, are smart contract based – the terms and conditions applicable thereon are set forth in the Smart Contract System Code, consisting of software code, existing on the Ethereum Blockchain. To the extent the terms contained herein or in any other document or communication contradict the ones set forth in the Smart Contract System, the terms of the Smart Contract System shall prevail. Furthermore, neither this document nor any other document or communication may modify or add any additional obligations or covenants to FNAS, the publisher of these terms or the developers of the Smart Contract System functions and/or any other person, entity and/or affiliates involved with the deployment of the Smart Contract System and the setting up of the SharkGate Platform beyond those set forth in the Smart Contract System.
4/. By transferring ETH to the Smart Contract System, the User expressly agrees to all of the terms and conditions set forth in Smart Contract System Code existing on the Ethereum blockchain (at the addresses set forth under para 3) and in this document (together the “Terms”), which is incorporated by reference herein. The User further confirms to have carefully reviewed the Smart Contract System Code, its functions and these Terms and under hereby confirm to fully understand the risks and costs of creating SHKG and contributing into a Smart Contract System for the development of the SharkGate Platform.
5/. This document, the SharkGate Whitepaper, and related documents do not constitute a prospectus of any sort, is not a solicitation for investment and does not pertain in any way to an offering of securities in any jurisdiction. It is a description of the functionality of a Smart Contract System.
6/. By transferring ETH to the Smart Contract System and/or receiving SHKG, no form of partnership, joint venture or any similar relationship between the Users and/or other individuals or entities involved with the deployment of the Smart Contract System and the setting up of the SharkGate Platform is created.
7/. SHKG are only for use in connection with the SharkGate Platform under the terms of the Smart Contract System and under the terms of the SharkGate platform (to be released), and only constitute a transferable representation of attributed functions of the Smart Contract System.
8/. Ownership of SHKG carries no rights expressly or implied other than the right to use SHKG as a means to enable usage of and interaction with the SharkGate Platform if successfully completed and deployed (see section 3). In particular, the User understands and accepts that SHKG does not represent or constitute any ownership right or stake, share or security or equivalent rights or any right for receive future revenues shares, IP rights or any other form of participation in or relating to the SharkGate Platform and/or the SharkGate Platform.
9/. Through the allocation of SHKG to a User, the User receives no right to receive any revenues generated by the intellectual property rights developed as part of the SharkGate Platform or any other assets. The User understands and accepts that SHKG does not represent or constitute any ownership right or stake, share or security or equivalent right in or relating to the SharkGate Platform, SharkGate and/or any software, any public or private company, corporation, entity or property.
10/. By transferring ETH to the Smart Contract and creating SHKG, the User represents and warrants that:
a) the User has a deep understanding of the functionality, usage, storage, transmission mechanisms and intricacies associated with cryptographic tokens, like bitcoin (BTC) and Ether (ETH), and blockchain-based software systems;
b) the User has carefully reviewed the code of the Smart Contract System located on the Ethereum blockchain at the addresses set forth under para 3 and fully understands and accepts the functions implemented therein;
c) the User is legally permitted to transfer ETH to the Smart Contract System, create and obtain SHKG in the User’s jurisdiction;
d) the User is legally permitted to receive software and contributing to the Smart Contract System for the development of the SharkGate Platform;
e) the User is of a sufficient age to legally create and obtain SHKG;
f) the User will take sole responsibility for any restrictions and risks associated with the creation of SHKG by the Smart Contract System as set forth below;
g) the User is not submitting ETH to the Smart Contract System to obtain SHKG for the purpose of speculative investment;
h) the User is not obtaining or using SHKG for any illegal purposes;
i) the User is purchasing the functionality of the SHKG issued by the Smart Contract System primarily to support the development, testing, deployment, and operation of the SharkGate Platform, being aware of the commercial risks associated with the SharkGate Platform;
j) the User waives the right to participate in a class action lawsuit or a class-wide arbitration against any entity or individual involved with the creation of SHKG;
k) the User understands the creation of SHKG does not involve the purchase of shares or any equivalent in any existing or future public or private company, corporation or other entity in any jurisdiction;
l) the User understands that the transfer of ETH to the Smart Contract System, the creation of SHKG and the development of the SharkGate Platform carries significant financial, regulatory and reputational risks as further set forth in the Terms;
m) the User understands and expressly accepts that there is no warranty whatsoever on SHKG, the Smart Contract System and/or the success of the SharkGate Platform, expressed or implied, to the extent permitted by law, and that the Smart Contract System is used and SHKG are created and obtained at the sole risk of the User on an “as is” and “under development” basis and without, to the extent permitted by law, any warranties of any kind, including, but not limited to, warranties of title or implied warranties, merchantability or fitness for a particular purpose; the User understands that the User has, other than as implemented in the Smart Contract System in case the Activation Threshold has not been reached (see para 9), no right against any other party to request any refund of the ETH submitted to the Smart Contract System for the creation of the SHKG under any circumstance; and that
n) the User understands with regard to SHKG no market liquidity may be guaranteed and that the value of SHKG over time may experience extreme volatility or depreciate in full; the User understands that the User bears the sole responsibility to determine if the User’s contribution to the Smart Contract System for the development of the SharkGate Platform, the transfer of ETH to the Smart Contract System, the creation, ownership or use of SHKG, the potential appreciation or depreciation in the value of SHKG over time, the sale and purchase of SHKG and/or any other action or transaction related to the SharkGate Platform have tax implications for him; by creating, holding or using SHKG, and to the extent permitted by law, the User agrees not to hold any third party (including developers, auditors, contractors or founders liable for any tax liability associated with or arising from the creation, ownership or use of SHKG or any other action or transaction related to the SharkGate Platform;
o) should the User be a consumer and should any applicable consumer legislation or cancellation rights apply to such User in relation to the creation and obtainment of the SHKG, the User waives any such consumer and cancellation rights unless otherwise prescribed by mandatory law; and
p) should any consumer legislation or cancellation rights apply in any jurisdiction, the User acknowledges and accepts that any applicable cancellation rights are waived and lost when the User transfer ETH to the Smart Contract and thereby creates and obtains SHKG unless otherwise prescribed by mandatory law.
11/. As part of the creation process, the User will use own account (address) on the Ethereum network, with a private key associated to this address and password. The password is used to encrypt the User’s private key. Following the creation of SHKG by the Smart Contract System, the SHKG will be transferred to the User’s address by the Smart Contract System. The User understands that the User must keep his password and private key safe and that the User may not share them with anybody. The User further understands that if his private key and/or password is lost or stolen, the User will not be able to generate a new password or recover his private key, and if the User also loses his private keys and password, the SHKG associated with the User’s account (address) will be unrecoverable and will be permanently lost. Furthermore, the User understands that there is no recovery mechanism for lost keys and passwords, so no one will be able to help the User retrieve or reconstruct a lost password and private keys and provide the User with access to any lost SHKG.
12/. SharkGate Platform Execution
The User understands and accepts that the development and execution of the SharkGate Platform will be released by the Smart Contract System to the wallet of a third party contractor. SharkGate has the right to engage subcontractors to perform the entire or partial development and execution of the SharkGate Platform. The scope of the development work will be triggered by the amount of contribution received during the Contribution Period as set forth in the Whitepaper (SharkGate Roadmap).
13/. The User understands and accepts that the User may not have any expectation of influence over governance on the SharkGate Platform.
The User understands and accepts that the SharkGate Platform and/or SharkGate Platform will need to go through substantial development works as part of which they may become subject of significant conceptual, technical and commercial changes before release. User understands and accepts that as part of the development, an upgrade of the SHKG Token may be required (hard-fork of SHKG Token) and that, if User decides not to participate in such upgrade, he may no longer use his SHKG token in the SharkGate Platform and that non-upgraded SHKG Tokens may lose their functionality in full.
14/. Audit of the Smart Contract System has been, on a reasonable effort basis, audited and approved by legal and technical experts with regard to the conformity of the Smart Contract System’s functionality to the content of these Terms. The technical experts have further confirmed that the Smart Contract System has, with regard to both accuracy and security, been programmed according to the current state of the art.
15/. However, the User understands and accepts that smart contract technology is still in an early development stage and its application of experimental nature which carries significant operational, technological, financial, regulatory and reputational risks. Accordingly, while the audit conducted raises the level of security and accuracy, the User understands and accepts that the audit does not amount to any form of warranty, including direct or indirect warranties that the Smart Contract System and the SHKG are fit for a particular purpose or do not contain any weaknesses, vulnerabilities or bugs which could cause, inter alia, the complete loss of ETH and/or SHKG.
16./ Risks – The User understands and accepts the risks in connection with transferring ETH to the Smart Contract System and creating SHKG as exemplary set forth above and hereinafter. In particular, but not concluding, the User understands the inherent risks listed hereinafter:
a) Risk of software weaknesses: The User understands and accepts that the Smart Contract System concept, the underlying software application and software platform (i.e. the Ethereum blockchain) is still in an early development stage and unproven, that there is no warranty that the process for creating SHKG will be uninterrupted or error-free and that there is an inherent risk that the software could contain weaknesses, vulnerabilities or bugs causing, inter alia, the complete loss of ETH and/or SHKG.
b) Regulatory risk: The User understands and accepts that the blockchain technology allows new forms of interaction and that it is possible that certain jurisdictions will apply existing regulations on, or introduce new regulations addressing, blockchain technology-based applications, which may be contrary to the current setup of the Smart Contract System and which may, inter alia, result in substantial modifications of the Smart Contract System and/or the SharkGate Platform, including its termination and the loss of SHKG for the User.
c) Risk of abandonment / lack of success: The User understands and accepts that the creation of the SHKG and the development of the SharkGate Platform may be abandoned for a number of reasons, including lack of interest from the public, lack of funding, lack of commercial success or prospects (e.g. caused by competing projects). The User, therefore, understands that there is no assurance that, even if the SharkGate Platform is partially or fully developed and launched, the User will receive any benefits through the SHKG held by him.
d) Risk associated with other applications: The User understands and accepts that the SharkGate Platform and/or particular SharkGate Platforms may give rise to other, alternative projects, promoted by unaffiliated third parties, under which SHKG will have no intrinsic value.
e) Risk of loss of private key: SHKG can only be accessed by using an Ethereum wallet with a combination of User’s account information (address), private key and password. The private key is encrypted with a password. The User understands and accepts that if his private key file or password respectively got lost or stolen, the obtained SHKG associated with the User’s account (address) or password will be unrecoverable and will be permanently lost.
f) Risk of theft: The User understands and accepts that the Smart Contract System concept, the underlying software application and software platform (i.e. the Ethereum blockchain) may be exposed to attacks by hackers or other individuals that that could result in theft or loss of SHKG or ETH, impacting the ability to develop the SharkGate Platform.
g) Risk of Ethereum mining attacks: The User understands and accepts that, as with other cryptocurrencies, the blockchain used for the Smart Contract System is susceptible to mining attacks, including but not limited to double-spend attacks, majority mining power attacks, “selfish-mining” attacks, race condition attacks and other methods. Any successful attacks present a risk to the Smart Contract System, expected proper execution and sequencing of SHKG transactions, and expected proper execution and sequencing of contract computations.
17/. Taxation – The User bears the sole responsibility to determine if his contribution into the Smart Contract System for the development of the SharkGate Platform, the creation, ownership or use of SHKG, the potential appreciation or depreciation in the value of SHKG over time, the sale and purchase of SHKG and/or any other action or transaction related to the SharkGate Platform have tax implications for him.
18/. By creating, holding or using SHKG, and to the extent permitted by law, the User agrees not to hold any third party, including developers, auditors, contractors or founders, liable for any tax liability associated with or arising from the creation, ownership or use of SHKG or any other action or transaction related to the SharkGate Platform.
19/. No Liability The User acknowledges and agrees that, to the fullest extent permitted by any applicable law, the User will not hold any developers, auditors contractors or founders of the SHKG, the Smart Contract System and/or SharkGate liable for any and all damages or injury whatsoever caused by or related to the use of, or the inability to use, SHKG or the Smart Contract System under any cause or action whatsoever of any kind in any jurisdiction, including, without limitation, actions for breach of warranty, breach of contract or tort (including negligence) and that developers, auditors contractors or founders of the Smart Contract System, the SHKG and/or the SharkGate Platform shall not be liable for any indirect, incidental, special, exemplary or consequential damages, including for loss of profits, goodwill or data, in any way whatsoever arising out of the use of, or the inability to use of the Smart Contract System, the SharkGate Platform and/or SHKG.
20/. The User further specifically acknowledges that developers, auditors, contractors or founders of the SHKG, Smart Contract System and/or the SharkGate Platform are not liable, and the User agrees not to seek to hold them liable, for the conduct of third parties, including other creators of SHKG, and that the risk of creating, holding and using SHKG rests entirely with the User.
21/. By creating, holding or using SHKG, and to the extent permitted by law, the User agrees not to hold any third party, including developers, auditors, contractors or founders, liable for any regulatory implications or liability associated with or arising from the creation, ownership or use of SHKG or any other action or transaction related to the SharkGate Platform.
22/. Miscellaneous – The User understands and accepts that the network of miners will be ultimately in control of the Smart Contract System. The User understands that a majority of these miners could agree at any point to make changes to the official Smart Contract System and to run the new version of the Smart Contract System. Such a scenario could lead to SHKG losing intrinsic value.
23/. The User agrees that if any portion of these Terms is found illegal or unenforceable, in whole or in part, such provision shall, as to such jurisdiction, be ineffective solely to the extent of such determination of invalidity or unenforceability without affecting the validity or enforceability thereof in any other manner or jurisdiction and without affecting the remaining provisions of the Terms, which shall continue to be in full force and effect.
24/. The Terms govern the creation, ownership, and use of SHKG and supersede any public statements about the launch of SHKG and/or the Smart Contract System made by anyone in the past, present and future.
25/. By purchasing the SHKG token, I acknowledge that I have read and accepted Sharkgate’s terms & conditions. I specifically acknowledge that any cancellation rights or warranties granted in any applicable jurisdiction are simultaneously lost with the immediate delivery of the SHKG token.
Final / 1st of May 2018
