> For the complete documentation index, see [llms.txt](https://bound-1.gitbook.io/bound-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://bound-1.gitbook.io/bound-docs/legal/terms-and-conditions.md). # Terms and Conditions Bound Exchange ## 1. Acceptance of Terms These Terms and Conditions ("Terms") govern your access to and use of the Bound Exchange platform, including all services, features, and content provided through Bound Exchange (collectively, the "Services"). By accessing or using the Services, you agree to be bound by these Terms. If you do not agree to these Terms, you may not use the Services. Bound Exchange is operated by Bound Labs SRL ("we," "us," or "our"). These Terms constitute a legally binding agreement between you ("User," "you," or "your") and us. We reserve the right to update or modify these Terms at any time, with notice provided via the Platform or other reasonable means. Your continued use of the Services after such changes constitutes acceptance of the updated Terms. ## 2. Nature of the Platform Bound Exchange is a full-stack, self-custodial DeFi platform purpose-built for Bitcoin and applicable to other networks. The platform provides three core services built on a non-custodial foundation: ### 2.1 Automated Market Making (AMM) - Swaps Bound Exchange operates an Automated Market Maker protocol for Bitcoin and Bitcoin tokens (e.g., Runes) that executes trades on Bitcoin mainnet and leverages smart contracts on the Sonic Network to calculate and propagate trade quotes and liquidity. This enables two primary activities: * **Automated Market Making:** Users may earn yield on their BTC and Runes by depositing assets into Bound Exchange Agency Pools within a customizable price range. These users are known as Liquidity Providers ("LPs"). * **Instant Swaps:** Users may buy or sell Runes with near-instant execution, with settlement occurring at the end of each Bitcoin block. These users are known as Traders. ### 2.2 Peer-to-Peer RFQ Lending Bound Exchange operates a non-custodial, peer-to-peer lending protocol through which lenders may provide stablecoin liquidity and borrowers may obtain Bitcoin-collateralized loans. Key characteristics include: * **Request for Quote (RFQ) Mechanics:** Borrowers submit loan requests specifying principal, term, collateral, and proposed APR. Lenders, operating through automated Trusted Execution Environment (TEE) infrastructure, respond to RFQs based on pre-configured risk policies. * **Atomic Settlement:** Loan origination is settled via an atomic Partially Signed Bitcoin Transaction (PSBT) co-signed by all parties. All transfers settle together or not at all. * **No-Liquidation Term Loans:** Loans are fixed-rate and fixed-term. Bound Exchange cannot force-sell or liquidate collateral during the loan term. Upon maturity, borrowers may repay principal and interest to reclaim their collateral, or elect to walk away, in which case the lender claims the BTC collateral pursuant to the escrow terms. * **BTC Escrow:** Collateral is held in a 2-of-2 multisig escrow with a timelock. The borrower is always a required co-signer during the loan term and grace period. After expiry of the grace period, the lender may claim collateral unilaterally if repayment has not been made. * **Lender Automation:** Lenders may configure a TEE-hosted agent to respond to RFQs autonomously based on a pre-set risk policy. Idle lender funds earn the short-duration treasury rate. When matched, lenders earn the agreed lender APR. ### 2.3 Investing and Capital Deployment Bound Exchange provides an integrated investing interface through which users may deploy capital into major asset classes directly from their self-custodial account. Swaps and cross-chain transactions executed through this interface are subject to the fee and risk disclosures set out in these Terms. ### 2.4 Self-Custodial Account and Trading Wallet All Services are accessed through a self-custodial account provisioned via passkey authentication. Users retain control of their private keys at all times. Bound Exchange never takes unilateral custody of user assets. * **Trading Wallet:** Prior to using the AMM or lending Services, users must fund a trading wallet. This wallet is a 2-of-2 multisig between the user and Bound Exchange, in which Bound Exchange's co-signing authority has a predetermined expiration date, ensuring users can always reclaim custody of their assets. * **Passkey Onboarding:** Account creation uses passkey authentication, with backup and recovery available through supported recovery methods. Users are solely responsible for maintaining access to their account credentials and recovery materials. ## 3. Agency Pool Mechanics Users may transfer BTC and/or Bitcoin tokens from their trading wallet to Bound Exchange Agency Pools. Transfers include instructions specifying a desired fee tier and price range. * Pricing is determined using the constant product formula (x x y = k) within the specified range. * Liquidity Providers earn a proportional share of trading fees generated by the pool. Fee tiers are set by the Liquidity Provider and may vary by pool. Fees accrue automatically and are claimable at any time. * Bound Exchange charges a platform fee on fee earnings, as specified in official Bound Exchange documentation. Bound Exchange reserves the right to alter the percentage of fee earnings taken as a platform fee. * Users may remove liquidity at any time by signing a transaction on the Bitcoin blockchain. Upon withdrawal, users receive their proportional share of pool assets plus accrued fees, subject to the pool's state at the time of withdrawal. ## 4. Eligibility The Services are not available to U.S. citizens or residents. To use the Services, you must: * Be at least 18 years of age or the age of legal majority in your jurisdiction; * Not be a citizen or resident of the United States of America, including its territories and possessions; * Not be located in, or a resident of, any country or region subject to U.S. sanctions or embargoes, or otherwise prohibited from accessing the Services under applicable law; * Not be a person or entity barred from using the Services under applicable regulations in your jurisdiction. By accessing or using the Services, you represent and warrant that you are not a U.S. citizen or resident and that you meet all other eligibility requirements. We reserve the right to restrict access to the Platform from IP addresses or locations associated with the United States. ## 5. User Responsibilities ### 5.1 Wallet and Passkey Security You are solely responsible for securing your passkey credentials, blockchain wallet, private keys, and any other credentials used to access the Services. Bound Exchange is not liable for any loss or damage resulting from unauthorized access to your account, loss of passkey credentials, or loss of private keys. Bound Exchange has no ability to recover lost credentials or reverse transactions on your behalf. ### 5.2 Lending and Borrowing Responsibilities If you participate in the RFQ lending protocol as a lender or borrower, you acknowledge and accept the following: * As a lender, you are responsible for configuring your risk policy, including acceptable LTV ratios, APR thresholds, and loan terms, prior to activating automated RFQ responses. * As a borrower, you are responsible for understanding the fixed-rate, fixed-term nature of your loan, including your repayment obligations and the consequences of non-repayment. * Bound Exchange acts solely as coordinator and co-signer for atomic settlement. It does not guarantee loan performance, borrower repayment, or lender returns. * In the event of borrower default or walk-away, the lender's sole recourse is the BTC collateral held in escrow, subject to the timelock and escrow mechanics described in these Terms. ### 5.3 Compliance with Laws You agree to use the Services in compliance with all applicable laws in your jurisdiction, including but not limited to securities laws, tax obligations, and anti-money laundering (AML) regulations. You acknowledge that the Services are not intended for use by U.S. citizens or residents and agree not to access the Services from within the United States. ### 5.4 Prohibited Activities You may not use the Services to: * Engage in illegal activities, including money laundering, terrorist financing, or fraud; * Trade assets that infringe intellectual property rights or are otherwise unlawful; * Manipulate markets or engage in deceptive trading practices; * Attempt to interfere with, hack, or disrupt the Platform or its underlying blockchain network; * Circumvent restrictions on U.S. citizens or residents, including through the use of VPNs or other anonymizing tools. ## 6. Risks You acknowledge and accept the following risks associated with using the Services: ### 6.1 AMM and Swap Risks * **Impermanent Loss (IL):** If the price of pooled tokens diverges significantly from your deposit price, you may experience impermanent loss relative to simply holding the tokens outside the pool. * **Volatility and Slippage:** Returns depend on trading volume and price stability within your chosen range. Outside that range, funds earn no fees and may lose value relative to market prices. * **Software Risk:** You rely on Bound Exchange's software being secure. There is no guarantee against bugs or exploits that could result in loss of funds. * **No Custodial Oversight:** If you lose access to your wallet or send funds incorrectly, there is no support available to recover them. ### 6.2 Lending and Borrowing Risks * **Counterparty Risk:** As a lender, you bear the risk that a borrower may default or elect to walk away from a loan. Your sole recourse is the BTC collateral held in escrow. * **Collateral Value Risk:** The value of BTC collateral may decline between loan origination and the end of the grace period. Bound Exchange does not guarantee that collateral will cover the full loan principal and accrued interest in all market conditions. * **TEE Infrastructure Risk:** The automated lender TEE infrastructure is experimental. Failures or vulnerabilities in TEE infrastructure may affect your ability to respond to RFQs or manage your lending position. * **Liquidity Risk:** Lender stablecoins committed to active loans are subject to the fixed term. Early exit from an active loan position may not be available. ### 6.3 General Risks * **Regulatory Uncertainty:** Changes in laws or regulations in your jurisdiction or the United States may impact your ability to use the Services or the legality of certain activities. * **Loss of Funds:** Errors, exploits, or loss of private keys or passkey credentials may result in irretrievable loss of assets. * **Immutability and Governance:** You accept that future governance decisions could impact pool or protocol economics, though core mechanics remain fixed. ## 7. Fees The Platform charges fees for certain transactions and services, disclosed at the time of each transaction. Fee structures include: * **Loan Origination Fees:** A percentage of principal collected at origination. The same fee applies to loan rollovers and refinances. * **Swap Fees:** A fee charged on each swap executed through the platform. * **bUSD Reserve Spread:** Bound Exchange earns the risk-free rate on cold bUSD reserves and nets a spread on amounts passed through to lenders. * **Agency Pool Platform Fee:** A platform fee on Liquidity Provider fee earnings, as specified in official documentation. * **Network Fees:** All Bitcoin network fees associated with your use of the Services are your sole responsibility and are not Bound Exchange fees. ## 8. No Warranties The Services are provided on an "as-is" and "as-available" basis. We make no warranties, express or implied, regarding the availability, accuracy, or reliability of the Platform or Services, including the RFQ lending protocol, TEE infrastructure, or AMM. We disclaim any liability for interruptions, errors, or losses resulting from the use of the Services. ## 9. Limitation of Liability To the fullest extent permitted by law, Bound Labs SRL and its affiliates, officers, directors, employees, or agents shall not be liable for any direct, indirect, incidental, consequential, or punitive damages arising from your use of the Services, including but not limited to loss of funds, data, or profits, whether arising from AMM operations, lending or borrowing activity, swap execution, TEE infrastructure failure, or any other use of the platform. Our total liability, if any, shall not exceed $100 USD. ## 10. Indemnification You agree to indemnify and hold harmless Bound Labs SRL and its affiliates from any claims, losses, damages, or expenses (including legal fees) arising from your use of the Services, violation of these Terms (including accessing the Services as a U.S. citizen or resident), or infringement of any third-party rights. ## 11. Intellectual Property All content, trademarks, and intellectual property related to the Platform are owned by Bound Labs SRL or its licensors. You are granted a limited, non-exclusive, non-transferable license to use the Services for personal, non-commercial purposes, subject to these Terms. ## 12. Termination We reserve the right to suspend or terminate your access to the Services at our sole discretion, with or without notice, for any reason, including suspected violation of these Terms (including use by U.S. citizens or residents) or applicable law. Termination does not affect obligations arising under active loans or open positions; the escrow and PSBT mechanics governing active transactions will continue to operate according to their terms. ## 13. Governing Law and Dispute Resolution You waive any right to participate in a class action lawsuit or class-wide arbitration. Any disputes arising from these Terms shall be resolved through binding arbitration in a jurisdiction of our discretion. ## 14. Privacy Our collection and use of your personal information, if any, are governed by our Privacy Policy, available at . As a non-custodial platform using passkey-based onboarding, we collect minimal personal data, including cryptographic public keys, passkey credential identifiers, and anonymized usage data, as described in the Privacy Policy. You acknowledge that accessing the Services from the United States may result in termination of access and reporting to relevant authorities if required. ## 15. Force Majeure We are not liable for delays or failures in performance due to events beyond our reasonable control, including but not limited to natural disasters, cyberattacks, blockchain network failures, or failures of third-party TEE or oracle infrastructure. ## 16. Contact Us For questions or support, contact us at or raise a ticket in the official Bound Exchange Discord server.