Bitsy Service User Agreement

This User Agreement (this “Agreement”) is a contract between you and Bitsy, Inc. (“Bitsy,” “we,” “us”, or “ours”). By enrolling in the Bitsy Service (“Bitsy Enrollment”) through bitsy.com, or any associated websites, APIs, or mobile applications (collectively the “Bitsy App“), you agree that you have read, understood, and accept all of the terms and conditions contained in this Agreement. As used herein, “User refers to you and all other Users of the Bitsy Services, as defined below.

About the Bitsy Service

The Bitsy Service allows you to buy from and sell back to Bitsy those cryptocurrencies supported by Bitsy (currently Bitcoin, but others as notified to you) and other digital financial assets (such cryptocurrencies and other digital financial assets purchased and supported through the Bitsy Service shall be collectively referred to as either “Digital Financial Assets” or “Assets”). The Bitsy Service also allows you to hold such supported Assets in your Bitsy Wallet and transfer such supported Assets to third parties.

The Bitsy Service is unique, however, in that you own, hold and control your own Bitsy Wallet and its associated Assets. When you download the Bitsy App onto your laptop, cell phone or other mobile device (“Your Device”) and instruct the movement of Assets to your Bitsy Wallet, all access to your Assets’ value—including, if you elect, all private keys—are held by you, not a third party. Moreover, if the unexpected happens and Your Device is stolen, lost or damaged, Bitsy’s unique backup private key storage system allows you to obtain access to the then-current value of your Assets in the Bitsy Wallet following research and rebuild process (which may take approximately 1‑4 weeks), for a reasonable fee. (See Lost Key Process below.) In short, with the Bitsy Wallet, you have the advantage of having your Assets wallet held by you on Your Device, while also having protection in the event of loss.

At this time the Bitsy Service is available solely to US residents. When you make a purchase using ACH or Wire Transfer, you will be purchasing (at the same price and pursuant to the terms of this same Agreement) from Bitsy Inc., a company based in the United States. When you make a purchase using a credit/debit card, you will be purchasing pursuant to the terms of this Agreement from Bitsy Inc.’s wholly owned subsidiary, Bitsy Crypto UK Limited which is located in the United Kingdom.

1. Applicable Laws and Regulations.

Your enrollment with Bitsy and your conduct on the Bitsy App may be subject to the applicable laws, regulations, and rules of any appropriate governmental or regulatory authority (the “Applicable Laws and Regulations”) including, but not limited to:

  • All applicable federal laws, regulations, and rules, including, but not limited to:
    • The Bank Secrecy Act of 1970 (“BSA”);
    • The USA PATRIOT Act of 2001 (“Patriot Act”);
    • Anti-Money Laundering (“AML”) and Counter-Terrorist Financing (“CTF”) provisions under United States law and any other rules and regulations regarding AML/CTF within the United States and the individual states;
    • The Commodity Exchange Act (“CEA”)
  • Applicable regulations and guidance set forth by (“FinCEN), including, but not limited to, its Money Service Business (“MSB”) regulations;
  • Sanctions program rules implemented by the United States Department of the Treasury’s Office of Foreign Assets Control (“OFAC”);
  • Laws, regulations, and rules of relevant tax authorities;
  • All applicable rules, regulations, and laws of the various states within which Bitsy operates and wherein its customers reside, including, but not limited to, those states’ money transmission laws; and
  • To the extent the above laws may be applicable to your use of the Bitsy Service, you acknowledge and agree that, by enrolling for the Bitsy Service or utilizing the Bitsy App, you agree to act in compliance with and be legally bound by this Agreement as well as the Applicable Laws and Regulations. The continued use of your Bitsy Enrollment and the Bitsy App is conditioned on continued adherence at all times to this Agreement and all Applicable Laws and Regulations.

2. Bitsy Services.

2.1. Eligibility.

To be eligible to use Bitsy and Bitsy Services (as defined below), you must be at least 18 years old and you must create a user account with Bitsy (a “Bitsy Enrollment”) pursuant to section 3. By creating a Bitsy Enrollment, you represent and warrant to Bitsy that you are at least 18 years old and able to enter into contracts, including this Agreement.

2.2. Bitsy Services.

Your Bitsy Enrollment encompasses the basic services offered by Bitsy (collectively, the “Bitsy Services”) which currently include the following: 

  • A hosted digital financial assets wallet (a “Bitsy Wallet”) that is loaded on Your Device and that allows Users to store certain Supported Assets (as defined below) and to track, transfer, and manage Supported Assets;
  • Asset purchase and sale services through which Users can buy and sell Supported Assets to and from Bitsy;
  • A Bitsy two-private-key solution that provides security for your Assets;
  • The Bitsy “Lost Key Process” that protects you in the event Your Device is lost, stolen or damaged or in the event of your death (see Lost Key Process terms below).
  • Access to your transaction records.

At this time the Bitsy Service does not provide access to a wallet that can hold US Dollars or any other fiat currencies; however, when and if such a service becomes available, we will notify you.

The Bitsy Service is offered jointly with Bitsy’s financial services partner, Beckstrand & Associates Employees Credit Union, an insured, federally-regulated, state-chartered, financial institution, (the “Credit Union”), which transfers Assets from exchange accounts into or out of the Bitsy Wallet on Your Device, and which maintains and monitors overall the regulatory compliance of the Bitsy Service.

The Assets that Bitsy supports (each, a “Supported Asset”) may change from time to time and currently includes solely Bitcoin. See Appendix 4 (the “Supported Assets List”) for an up-to-date listing of all Bitsy Supported Assets. We will notify you when additional Supported Assets are available.

Bitsy will provide you with advance notice of any decision to stop supporting a Supported Asset, so that you will have an opportunity to move such Supported Asset out of your Bitsy Wallet. If you have any questions about which Assets Bitsy currently supports, please visit bitsy.com/help.

2.3. Purchasing, Selling and Transferring Assets.

When you wish to purchase Assets from Bitsy (see 4.9), Bitsy will instruct the Credit Union to deliver the purchased Assets to your Bitsy Wallet, and the Credit Union will ensure that the Assets are transferred. When a User wants to sell Assets to Bitsy (see 4.10), or transfer Assets to a third party, Bitsy will instruct the Credit Union to transfer the Assets in in accordance with your instructions from your Bitsy Wallet, and the Credit Union will ensure that the Assets are transferred as you requested. In the event that you have lost access to Your Device or your private keys, the Credit Union will help recover your private keys (see 4.14).

2.4. Assumption of Risk.

THERE IS A SIGNIFICANT RISK OF LOSS INHERENT IN PURCHASING, TRADING, HOLDING, AND TRANSACTING DIGITAL FINANCIAL ASSETS. The following is a non-exhaustive list of risks involved in accessing or using Bitsy to purchase and hold Digital Financial Assets:

  • The risk of loss in trading Assets is substantial and losses may occur over a short period of time;
  • The price and liquidity of Assets has been subject to large fluctuations in the past and is likely to be subject to large fluctuations in the future;
  • Legislative and regulatory changes or actions at the state, federal, or international level may adversely affect the use, transfer, exchange, and value of Assets;
  • In your jurisdiction, Bitsy may not be regulated as a financial institution;
  • Deposits of fiat currency into your Bitsy Account may not be considered deposits under the applicable laws, rules, or regulations in your jurisdiction;
  • Assets are not legal tender and are not backed by the government;
    Transactions made with Assets are generally irreversible, and, accordingly, losses due to fraudulent or accidental transactions are generally not recoverable;
  • Asset Transactions (as defined in 4.1) are deemed to be made when recorded on a public ledger, which is not necessarily the date or time that you initiated the transaction;
  • The value of Assets is derived from the continued willingness of market participants to exchange fiat currency or Assets for other Assets, which may result in the potential for permanent and total loss of value of a particular Asset should the market for that Asset disappear;
  • The nature of Assets may lead to an increased risk of fraud or cyber-attack; and
  • Any bond or trust account maintained by Bitsy for the benefit of our Users may not be sufficient to cover all losses due to theft or fraud incurred by Users.

YOU AGREE AND UNDERSTAND THAT YOU ARE SOLELY RESPONSIBLE FOR DETERMINING THE NATURE, POTENTIAL VALUE, SUITABILITY, AND APPROPRIATENESS OF DIGITAL FINANCIAL ASSETS AND THESE RISKS FOR YOURSELF, AND THAT BITSY DOES NOT GIVE ADVICE OR RECOMMENDATIONS REGARDING ASSETS, INCLUDING THE SUITABILITY AND APPROPRIATENESS OF, AND INVESTMENT STRATEGIES FOR, SUCH ASSETS.

YOU AGREE AND UNDERSTAND THAT YOUR ACCESS AND USE OF THE BITSY SERVICE AND BITSY WALLET IS ENTIRELY AT YOUR OWN RISK; HOWEVER, THIS BRIEF STATEMENT DOES NOT DISCLOSE ALL OF THE RISKS ASSOCIATED WITH DIGITAL FINANCIAL ASSETS AND USING THE BITSY SERVICE AND BITSY WALLET. YOU SHOULD, THEREFORE, CAREFULLY CONSIDER WHETHER SUCH USE IS SUITABLE FOR YOU IN LIGHT OF YOUR CIRCUMSTANCES AND FINANCIAL RESOURCES. YOU SHOULD BE AWARE THAT YOU MAY SUSTAIN A TOTAL LOSS OF THE VALUE OF ASSETS IN YOUR BITSY WALLET, INCLUDING YOUR SUPPORTED ASSETS IN YOUR BITSY WALLET, AND THAT UNDER CERTAIN MARKET CONDITIONS, YOU MAY FIND IT DIFFICULT OR IMPOSSIBLE TO LIQUIDATE A POSITION.

YOU SHOULD CAREFULLY CONSIDER WHETHER PURCHASING, TRADING, HOLDING, OR TRANSACTING WITH DIGITAL FINANCIAL ASSETS IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION. BY PURCHASING, TRADING, HOLDING, OR TRANSACTING BY WAY OF THE BITSY SERVICES, YOU EXPRESSLY ASSUME ALL FINANCIAL, ECONOMIC, AND TECHNOLOGICAL RISKS ASSOCIATED WITH SUCH TRANSACTIONS.

3. Creating a Bitsy Enrollment.

3.1. Registration of a Bitsy Enrollment.

In order to use the Bitsy Services, you will need to register and obtain a Bitsy Enrollment. During the registration process, we will ask you for information, including your name and other personal information, to verify your identity. We may, in our sole discretion, or the Credit Union, in its sole discretion, refuse to establish a Bitsy Enrollment for you or otherwise restrict your access to Bitsy Services. The Credit Union will have the ultimate authority to decide whether to establish a Bitsy Enrollment for you.

3.2 Identity Verification.

During registration of your Bitsy Enrollment, you agree to provide us with the information we request for the purposes of identity verification and the detection of money laundering, terrorist financing, fraud, or any other financial crimes, and permit us to keep a record of such information.

You will need to complete the verification procedures described in Appendix 2 (the “Verification Procedures”) before you are permitted to use the Bitsy Services. Your access to one or more Bitsy Services and the limits that apply to your use of the Bitsy Services may be altered from time to time as a result of information you provide to Bitsy and that Bitsy collects about you.

The information we request includes, at a minimum, the following personal information: your name, physical address (no post office boxes), telephone number, e-mail address, date of birth, and for certain transactions, taxpayer identification number, a government identification, and information regarding your bank account (such as the name of the bank, the account type, routing number, and account number). In providing us with this or any other information that may be required, you confirm that the information is accurate and authentic. We may request other additional information from time to time.

You agree to inform us of any changes to the personal information you provide us. You are liable for any adverse consequences arising out of the incompleteness or inaccuracy of any personal information you provide to us.

You authorize us to make any credit or other investigative inquiries (including, without limitation, obtaining a consumer report) which we consider appropriate to verify your identity or protect you and/or us against fraud or other financial crime, and to take action we reasonably deem necessary based on the results of such inquiries, in connection with your Bitsy Enrollment. If we do so, then upon your request, we will tell you whether we obtained a consumer report and the names and addresses of any consumer-reporting agencies that provided such reports. When we carry out these inquiries, you acknowledge and agree that your personal information may be disclosed to credit reference and fraud prevention or financial crime agencies and that these agencies may respond to our inquiries and initiate their own investigations and response procedures.

If you believe that we have furnished any inaccurate information relating to your Enrollment to any consumer-reporting agency, you may notify us by phone or mail using the contact information listed in Support page at bitsy.com/help . To help us respond to your notification, you must include your name, address, Enrollment number, Social Security Number, the name of the consumer-reporting agency reflecting the inaccurate information, and an explanation of why you believe the information is inaccurate. You understand that you may also contact the appropriate consumer-reporting agency directly at the appropriate address and toll-free number: [Equifax, P.O. Box 740241, Atlanta, GA 30374, 1-800-685-1111; Trans Union, P.O. Box 1000, Chester, PA 19022, 1-800-916-8800; or Experian, P.O. Box 2002, Allen, TX 75013, 1-888-397-3742.] 

4. The Bitsy Service

4.1. Bitsy Wallet

Upon creating a Bitsy Enrollment you will receive the Bitsy App that will allow you to download your Bitsy Wallet onto Your Device. After we complete the Verification Procedures and notify you of your successful Bitsy Enrollment, you will be able to use your Bitsy Wallet to purchase and sell Supported Assets to and from Bitsy and send Supported Assets to third party exchanges wallets and merchants through the Bitsy App (each such transaction, an “Asset Transaction”).

Bitsy and the Credit Union reserve the right to refuse to process or to cancel any pending Asset Transaction as required by law or in response to a subpoena, court order, or other binding government order, or to enforce transaction limits. The Credit Union will make the ultimate decision whether to refuse to process or to cancel any pending Asset Transaction.

Bitsy cannot reverse Asset Transactions that have been recorded in any blockchain-based digital currency network. The Bitsy Wallet only works with Supported Assets. The Bitsy Wallet does not have the ability to hold fiat currency balances, including US Dollar balances; should the ability to hold US Dollar balances become available as a Bitsy service in the future, you will be notified. Under no circumstances should you attempt to use the Bitsy Service to store, send, request, or receive fiat currencies or Unsupported Assets (as defined below). Bitsy assumes no responsibility or liability in connection with any attempt to use Bitsy Services for fiat currencies or Unsupported Assets, including lost or unrecoverable funds.

4.2. Asset Transactions

Bitsy processes Asset Transactions according to the instructions provided by the User initiating the Asset Transaction. Bitsy does not guarantee or verify the identity of any party to an Asset Transaction. You are responsible for verifying all transaction information before you submit instructions to Bitsy with respect to any Asset Transaction.

Asset Transactions will be reflected in your Bitsy Wallet immediately. However, Asset Transactions submitted to a digital currency network will not be complete until confirmed by the applicable digital currency network. Funds associated with pending transactions will be placed on hold, and will not be available for other transactions.

4.3. Asset Storage & Transmission Delays

You acknowledge and agree that an Asset Transaction facilitated by Bitsy and the Credit Union may be delayed for any reason. Delays may occur because, but not only because, the digital currency network that processes the transaction may experience technical difficulties or a high volume of transactions.

For typical Asset Transactions, your private key will be stored on your phone, with a second key being sent by you directly to the other party to the transaction. If you lose your private key, Bitsy has a recovery process that will allow you to retrieve your private key following a research and rebuild process (which may take approximately 1–4 weeks), for a reasonable fee. [See Lost Key Process, section 4.14 below]. If Your Device is stolen, lost or damaged, our Lost Key Process also provides a reconstruction method that will allow us to reconstruct and retrieve your Private Key, but that process can take up to 4 weeks.

4.4. Third Party Payments

Bitsy’s sole purposes are (i)  to sell and buy Supported Assets from Enrolled Users and (ii) to facilitate Asset Transactions. Bitsy has no control over, or liability for, the delivery, quality, safety, legality or any other aspect of any goods or services that you may purchase from or sell to a third party (including other Users). Bitsy is not responsible for ensuring that a buyer or a seller you may transact with will actually complete the transaction or is authorized to do so. If you experience a problem with any goods or services purchased from, or sold to, a third party in connection with Assets transferred using the Bitsy Services, or if you have a dispute with such third party, you must resolve the dispute directly with that third party.

4.5. Unsupported Assets

Bitsy does not support digital financial assets other than Supported Assets, nor does it support forked protocols (“Forks,” as defined in 4.7) , tokens, or alternative coins which supplement, are based on, or otherwise interact with Supported Assets (collectively, “Unsupported Assets”). Do not use your Bitsy Enrollment or Bitsy Wallet to attempt to receive, request, send, store, or engage in any other type of transaction involving an Unsupported Asset. Doing so may result in unrecoverable funds. The Bitsy App is not configured to detect, secure, or store Unsupported Assets and Bitsy assumes no responsibility whatsoever in respect to Unsupported Assets.

4.6. Operation of Digital Currency Protocols

Bitsy does not own or control the underlying software protocols which govern the operation of Digital Financial Assets supported on our platform. In general, the protocols underlying Supported Assets are open source and anyone can use, copy, modify, and distribute them. By using the Bitsy App, you acknowledge and agree (i) that Bitsy is not responsible for operation of the underlying protocols and that Bitsy makes no guarantee of their functionality, security, or availability; and (ii) that the underlying protocols are subject to sudden changes in operating rules (i.e., Forks, as defined in 4.7), and that such Forks may materially affect the value, function, and/or even the name of the Asset you store in your Bitsy Wallet.

4.7. Forks

You agree and understand that the underlying protocols of Supported Assets are subject to changes in operating rules (each, a “Fork”) that may result in more than one version of the Supported Asset  (a “Forked Network”) and Bitsy holding an identical amount of Supported Assets associated with each Forked Network. You further agree and understand that Forks may materially affect the value, function, and/or name of the Supported Assets  you hold in your Bitsy Wallet.

In the event of a Fork, you agree and understand that we may temporarily suspend the operations of Bitsy (with or without advance notice to you) while we choose, in our sole discretion, which Forked Networks, if any, to support.  It is your responsibility to learn about Forks and how they may impact the value of your Supported Assets.

You agree and understand that in our best estimation we are unlikely to support most Forked Networks and that the Assets of most Forked Networks will likely not be made available to you. You acknowledge and agree that Bitsy assumes absolutely no responsibility whatsoever in respect of an unsupported branch of a forked protocol.

Again, with respect to Forks, Forked Networks, and otherwise altered Digital Financial Assets:

SUPPORTED ASSET VALUES CAN FLUCTUATE SUBSTANTIALLY WHICH MAY RESULT IN A TOTAL LOSS OF THE VALUE OF ASSETS HELD IN YOUR BITSY WALLET. THE SUPPLY OF ASSETS AVAILABLE TO BITSY TO PROVIDE TO YOU AS A RESULT OF A FORKED NETWORK AND OUR ABILITY TO DELIVER DIGITAL FINANCIAL ASSETS RESULTING FROM A FORKED NETWORK MAY DEPEND ON THIRD PARTY PROVIDERS THAT ARE OUTSIDE OF OUR CONTROL.

WE DO NOT OWN OR CONTROL ANY OF THE PROTOCOLS THAT ARE USED IN CONNECTION WITH ASSETS AND THEIR RELATED DIGITAL CURRENCY NETWORKS, INCLUDING THOSE RESULTING FROM A FORKED NETWORK. ACCORDINGLY, WE DISCLAIM ALL LIABILITY RELATING TO SUCH PROTOCOLS AND ANY CHANGE IN THE VALUE OF ANY SUPPORTED ASSETS (WHETHER OF A FORKED NETWORK OR OTHERWISE), AND WE MAKE NO GUARANTEES REGARDING THE SECURITY, FUNCTIONALITY, OR AVAILABILITY OF SUCH PROTOCOLS OR DIGITAL CURRENCY NETWORKS. YOU ACCEPT ALL RISKS ASSOCIATED WITH THE USE OF THE BITSY SERVICE TO CONDUCT TRANSACTIONS, INCLUDING, BUT NOT LIMITED TO, IN CONNECTION WITH THE FAILURE OF HARDWARE, SOFTWARE, AND INTERNET CONNECTIONS.

4.8. Users’ purchase and sale of Supported Assets 

Users may buy or sell Supported Assets through their Bitsy Wallets. The price to purchase Supported Assets is stated as a  “Buy Price” and the price to sell Supported Assets is stated as a “Sell Price,” which is the price at which Users may buy Supported Asset from Bitsy (a “Purchase Transaction”) or sell Supported Asset to Bitsy (a “Sale Transaction”).

You acknowledge that it is Bitsy’s sole determination as to what the Buy Price and Sell Price will be at any time.  Bitsy is buying and selling for its own account and the Buy Price or Sell Price may be different from prices that you might be able to find elsewhere in the market. You agree, as a condition of using the Bitsy Service, to accept the stated Buy Price and the Sell Price. If you do not wish to accept Bitsy’s Buy Price or Sell Price, do not use the Bitsy Service.

Bitsy and the Credit Union reserves the right to delay any Purchase Transaction if it perceives a risk of fraud or illegal activity. Bitsy does not guarantee the availability of the Bitsy Service.

4.9. Purchase Transactions

After creating your Bitsy Enrollment and linking one or more valid payment methods to your Bitsy Enrollment, you may initiate Purchase Transactions through the Bitsy App. When you initiate a Purchase Transaction, you agree to purchase a stated amount of Assets from Bitsy, and you authorize Bitsy to initiate debits or charges from your selected payment method(s) to settle the Purchase Transaction. A Service Fee (as defined in 4.11) applies to all Purchase Transactions. All Purchase Transactions are subject to Transaction Limitations as set forth in 5.4.

You agree that we may debit or charge your selected payment method at the time you initiate a Purchase Transaction; however, you acknowledge that your payment may take three or more business days to process. To complete the Purchase Transaction, the Credit Union will direct the digital currency exchange that holds Bitsy’s inventory of Digital Financial Assets to send the amount of Assets you ordered from Bitsy to your Bitsy Wallet.

4.10. Sale Transactions

After creating your Bitsy Enrollment and linking one or more valid payment methods to your Bitsy Enrollment, you may initiate Sale Transactions through the Bitsy App. When you initiate a Sale Transaction, you authorize Bitsy to purchase Supported Assets from you in accordance with the Sale Price and to initiate payments to you to your selected payment method(s) to settle Sale Transactions. A Service Fee applies to all Purchase Transactions. The timing of your receipt of funds depends on your payment method, and it may take three or more business days for you to receive your funds.

4.11. Service Fees

Each Purchase Transaction and Sale Transaction is subject to a standard “Conversion Fee” of 4.5%. Since different payment methods cost Bitsy more to process, Bitsy will waive portions of the Conversion Fee depending upon which method of payment you use. In addition to the Conversion Fee, each Purchase Transaction and Sale Transaction will incur a “Blockchain Recording Fee” which is a third-party fee to pay miners on the relevant blockchain to record transactions on that blockchain. The Blockchain Recording Fee can change from day to day; usually we expect it to be in the range of $0.25 to $5.00.

Net Fees for Each Method of Purchase and Sale (after waiver):

U.S. Bank Account (ACH) 1.49% + the Blockchain Recording Fee

Credit/Debit Card 4.5% + the Blockchain Recording Fee

The above fees are collectively referred to in this Agreement as the “Service Fees”.

Please note, that Bitsy does NOT charge any additional withdrawal fee. Other cryptocurrency platforms such as Coinbase have historically charged a 1% fee to withdraw funds when you remove cryptocurrency from their platform. At Bitsy, these fees are all the fees you will pay. Also, please note, that some Credit/Debit Card issuers and some banks may charge additional fees to their account holders. Please check with your financial institution.

The Bitsy App will show the fees applicable to your transaction prior to initiation of any Purchase Transaction. If you are unhappy with the amount of Service Fees displayed, you can elect not to complete the Sale or Purchase Transaction at no risk and without penalty. Bitsy reserves the right to adjust its Service Fees at any time. We will always notify you of the applicable Service Fees each time you authorize a Purchase Transaction, and we will record the applicable Service Fees in each receipt we issue to you.

4.12. Reversals; Cancellations

You cannot cancel, reverse, or change any completed or pending Asset Transaction once it is submitted. If an Asset Transaction is not successful or if your payment method has insufficient funds or is declined for any other reason, you authorize Bitsy, in its sole discretion, either to cancel the Asset Transaction or to debit any of your other payment methods, including Bitsy balances or other linked accounts, in any amount necessary to complete the Asset Transaction, in accordance with applicable laws. You are responsible for maintaining an adequate balance and/or sufficient credit limits in order to avoid overdraft, non-sufficient funds (NSF), or similar fees charged by your bank or payment provider.

Bitsy and the Credit Union reserve the right to refuse to process, or to cancel or reverse, any Asset Transaction between Bitsy and you in their sole discretion, even after funds have been debited from your account(s), if Bitsy suspects the Asset Transaction involves (or has a high risk of involvement in) money laundering, terrorist financing, fraud, or any other type of financial crime; in response to a subpoena, court order, or other government order; if Bitsy reasonably suspects that the Asset Transaction is erroneous; or if Bitsy suspects the Asset Transaction relates to Prohibited Use as set forth in 6.1.  In such instances, Bitsy will reverse the transaction and is under no obligation to allow you to reinstate an Asset Transaction at the same price or on the same terms as the cancelled transaction.

4.13. Payment Services Partners

Bitsy may use a third party payment processor to process any USD payment between you and Bitsy.

4.14. Lost Key Process

If Your Device has been lost, stolen, or damaged, or if you are unable to access your Assets for any other reason, you can follow the following steps to gain access to your Assets in your Bitsy Wallet.

(i) If you have backed up your wallet by writing down the 12-word seed phrase and storing it somewhere safe: 

  1. You must download the Bitsy App on new device;
  2. Then you must go to the Enrollment recovery page and indicate that you have your seed phrase;
  3. You must then enter your seed phrase and email address as requested.
  4. Once Bitsy has validated that these match, you will be notified;
  5. Your access to your Bitsy Wallet will then be restored.

(ii) If you do not have your 12-word seed phrase and you have not backed up your wallet, you will need to follow the following steps:

  1. You must download the Bitsy App on your new device;
  2. Then you must go to the Enrollment recovery page and indicate that you do NOT have your 12-word seed phrase;
  3. Then you will be asked to provide the following information directly to Bitsy
    1. Name
    2. Email address
    3. Photo of front and back of ID compared to live Photo of Face –
    4. Other documentation to help with recovery (i.e., death certificate and documents proving authority to settle the deceased’s estate)
  4. You will be asked to submit a non-refundable payment of $25 plus estimated blockchain recording fees.
  5. Adjudication - First, Bitsy will confirm ownership of the public address using your ID:
    1. If Bitsy cannot confirm ownership with your ID (or if you are unable to provide ID), Bitsy will review any documentation you have provided with respect to ownership of the public address and will determine whether it can restore access to the Assets in your Bitsy Wallet without further information.
    2. Bitsy will communicate its ability to restore access to the Assets (or not) to you at the email address you have provided.
  6. Account Restoration - Second, if Bitsy has determined that it can restore access to the Assets in your Bitsy Wallet, then the following steps must be followed:
    1. Bitsy will create a new Bitsy Wallet for you and manually access the root key stored at Credit Union or some other third party institution. This process will be done regularly but because of the highly manual and secure manner in which it must be done, it will always take at least one to four weeks and may take longer.
    2. Using the root key, Bitsy will obtain keys to the lost public address and sweep all amounts of Assets that remain in your previous Bitsy Wallet under the lost public address, into a new Bitsy Wallet for you.
    3. Bitsy will notify you when the process has been completed and will provide you with the new keys you will need to access your Assets in your new Bitsy Wallet.
    4. Please Note:

i. Only Assets that have not been transferred out of the public address in your previous Bitsy Wallet (whether such a transfer was through theft, accident or otherwise) will be recoverable under this process.

ii. Digital Financial Assets are very volatile and the value of your Assets could change dramatically during the recovery process. Bitsy will not be responsible for price changes that occur during the long and manual adjudication or recovery process.

5. General Use, Prohibited Use, and Termination.

5.1. Limited License

We grant you a limited, nonexclusive, nontransferable license, subject to the terms of this Agreement, to access and use the Bitsy App, and related media, materials, information (collectively, the “Content”) solely for purposes expressly permitted by this Agreement. Any other use of the Bitsy App or Content is expressly prohibited and all other rights, title, and interest in the Bitsy App or Content is exclusively the property of Bitsy and its licensors.

You agree you will not copy, transmit, distribute, sell, license, reverse engineer, modify, publish, or participate in the transfer or sale of, create derivative works from, or in any other way exploit any of the Content, in whole or in part. “Bitsy,” “bitsy.com” and all logos related to the Bitsy Services or displayed on the Bitsy App are trademarks of Bitsy or its licensors. You may not copy, imitate or use such trademarks without Bitsy’s prior written consent.

5.2. Website Accuracy

Although we intend to provide accurate and timely information on the Bitsy App, the Bitsy App (including, without limitation, the Content) may not always be entirely accurate, complete or current and may also include technical inaccuracies or typographical errors. In an effort to continue to provide you with as complete and accurate information as possible, information may be changed or updated from time to time without notice, including without limitation information regarding our policies, products and services. Accordingly, you should verify all information before relying on it, and all decisions based on information contained on the Bitsy App are your sole responsibility and we shall have no liability for such decisions. We may provide links to third-party websites and materials, but we do not control such website or materials. You acknowledge and agree that we are not responsible for any information, media, or services contained in any third-party materials or on any third party sites accessible through or linked to by the Bitsy App.

5.3. Prohibited Use

In connection with your use of the Bitsy Services, and your interactions with other Users, and third parties you agree and represent you will not engage in any Prohibited Use defined in Appendix 1. We reserve the right at all times to monitor, review, retain and/or disclose any information as necessary to satisfy any applicable law, regulation, sanctions programs, legal process, or governmental request. We reserve the right to cancel and/or suspend your Bitsy Enrollment and/or block transactions or freeze funds immediately and without notice if we determine, in our sole discretion, that your Enrollment is associated with a Prohibited Use.

5.4. Transactions Limits.

The use of all Bitsy Services is subject to a limit on the amount of Supported Assets (stated in USD in accordance with applicable Bitsy conversion rates), that you may purchase in a given period. Bitsy and the Credit Union may also, in their sole discretion, restrict Bitsy Services based on periodic customer screenings, suspicious account activity or transactions, or upon receipt of any proper judicial or regulatory order compelling such restriction.

Your transaction limits may vary depending on your payment method, verification steps you have completed, and other factors. Bitsy and the Credit Union reserve the right to change applicable limits as we deem necessary.

You may request higher limits at bitsy.com/help. In order to facilitate that request, we may require you to submit additional information about yourself or your business, provide records, and arrange for meetings with Bitsy staff (“Enhanced Due Diligence”). Bitsy reserves the right to charge you costs and fees associated with Enhanced Due Diligence, provided that we notify you in advance of any such charges accruing. Bitsy and the Credit Union may, in their sole discretion, refuse to raise your limits or we may lower your limits at a subsequent time even if you have completed Enhanced Due Diligence. A list of Transaction Limits can be found in Appendix 5. (“Transaction Limits”).

5.5. Suspension, Termination, and Cancellation.

Bitsy and the Credit Union may: (a) suspend, restrict, or terminate your access to any or all of the Bitsy Services, and/or (b) deactivate or cancel your Bitsy Enrollment if:

  • Bitsy or the Credit Union are so required by a facially valid subpoena, court order, or binding order of a government authority; or
  • Bitsy or the Credit Union reasonably suspect you of using your Bitsy Enrollment in connection with a Prohibited Use; or
  • Use of your Bitsy Enrollment is subject to any pending litigation, investigation, or government proceeding and/or Bitsy or the Credit Union reasonably perceive a heightened risk of legal or regulatory non-compliance associated with your Enrollment activity; or
  • Bitsy’s service partners are unable to support your use; or
  • You take any action that Bitsy or the Credit Union deems as circumventing Bitsy’s controls, including, but not limited to, opening multiple Bitsy Enrollments or abusing promotions which Bitsy may offer from time to time.

If Bitsy or the Credit Union suspends or closes your Bitsy Enrollment or terminates your use of the Bitsy Services for any reason, you will be prevented from doing any further Asset Transactions. Bitsy will provide you with notice of such action unless a court order or other legal authority prohibits Bitsy from doing so. You acknowledge that Bitsy is under no obligation to disclose the details of its risk management and security procedures to you.

5.6. Relationship of the Parties

Nothing in this Agreement shall be deemed or is intended to be deemed, nor shall it cause, you and Bitsy to be treated as partners, joint ventures, or otherwise as joint associates for profit, or either you or Bitsy to be treated as the agent of the other.

5.7. Privacy of Others; Marketing

If you receive information about another User through the Bitsy Services, you must keep the information confidential and only use it in connection with the Bitsy Services. You may not disclose or distribute a User’s information to a third party or use the information except as reasonably necessary to effectuate Digital Currency Transactions and other functions reasonably incidental thereto such as support, reconciliation and accounting unless you receive the User’s express consent to do so. You may not send unsolicited emails to a User through the Bitsy Services.

5.8. Password Security; Contact Information

You may not allow third parties to access the Bitsy Services using your Bitsy Enrollment, unless you specifically authorize specific Merchants and/or applications to access your Bitsy Enrollment, or you are required to allow such access by operation of law, or you have received expressed written permission from Bitsy. You are responsible for maintaining adequate security and control of any and all IDs, passwords, hints, personal identification numbers (PINs), API keys or any other codes that you use to access the Bitsy Services. Any loss or compromise of the foregoing information and/or your personal information may result in unauthorized access to your Bitsy Enrollment by third parties and the loss or theft of any Assets held in your Bitsy Enrollment and any associated accounts, including your linked bank account(s) and credit card(s). You are personally responsible for any use of the Bitsy Services through your Bitsy Enrollment, whether by you or a third party. You are responsible for keeping your email address and telephone number up to date in your Enrollment Profile in order to receive any notices or alerts that we may send you. We assume no responsibility for any loss that you may sustain due to compromise of Enrollment login credentials due to no fault of Bitsy and/or failure to follow or act on any notices or alerts that we may send to you. If you believe your Bitsy Enrollment has been compromised, contact Bitsy Support immediately at [email protected], or report your claim by phone at the customer service number on the bitsy.com website.

5.9. Taxes

It is your sole responsibility to determine whether, and to what extent, any federal, state, local or any other jurisdiction’s taxes apply to any transactions associated with your receipt or transfer of Digital Financials Assets, and to withhold, collect, report and remit the correct amounts of taxes to the appropriate tax authorities. We maintain discretion to provide information regarding any and all Purchase Transactions and Sale Transactions as well as any and all transfers of Assets from your Bitsy Wallet to a third-party or to your Bitsy Wallet from a third-party, upon request from the relevant tax authority. We will provide such information upon receiving a properly executed subpoena for such information from a tax authority. Your transaction history is available to you through your Bitsy Enrollment.

6. Customer Feedback, Queries, Complaints, Privacy, and Dispute Resolution.

6.1. Contacting Bitsy

If you have any feedback, questions, or complaints, contact us via our telephone at the number listed at https://bitsy.com/ or write to us at Bitsy Customer Support [email protected]. When you contact us, please provide your name, address, and any other information we may need to identify you, your Bitsy Enrollment, and any Asset Transaction concerning which you have feedback, questions, or complaints.

See Appendix 3 for a description of how Bitsy delivers communications to you electronically, your corresponding obligations, and how you can withdraw your consent from receiving electronic communications.

6.2. Privacy of Information

You agree that the information contained in your Bitsy Enrollment is only for you and that you will not cause others to access or rely upon it (other than your tax advisor or attorney, or as otherwise prescribed by law) without Bitsy’s prior written consent. We agree that we will keep such information confidential, subject to the following paragraph.

For the avoidance of doubt, you agree and understand that we share information concerning you and your Bitsy Enrollment as follows: (i) with our banks and other financial institutions that we use or may use to process funds in connection with the Bitsy Services to the extent necessary to conduct ordinary banking and other business operations; (ii) with appropriate state and federal regulatory authorities, and self-regulatory organizations, as we determine, in our sole discretion, is required or otherwise appropriate in connection with our regulatory requirements; and (iii) in response to a court or government order. We may also disclose information about you and your Bitsy Enrollment to any of Bitsy’s service providers in accordance with Applicable Laws and Regulations, this Agreement, our Privacy Policy, and customary banking practices. Lastly, you agree that we may obtain and use such information as may be necessary for legitimate business needs in connection with the operation of Bitsy. For more information on what information we collect and how we treat it, please see our Privacy Policy at https://bitsy.com/privacy-policy/.

6.3. Arbitration; Waiver of Class Action

If you have a dispute with Bitsy, we will attempt to resolve any such disputes through our support team. If we cannot resolve the dispute through our support team, you and we agree that any dispute arising under this Agreement shall be finally settled in binding arbitration, on an individual basis, in accordance with the Utah Rules of Civil Procedure, unless otherwise required by applicable law. You and Bitsy hereby expressly waive trial by jury and right to participate in a class action lawsuit or class-wide arbitration.

The arbitration will be conducted by a single, neutral arbitrator and shall take place in the county or parish in which you reside, or another mutually agreeable location, in the English language. The arbitrator may award any relief that a court of competent jurisdiction could award, including attorney fees when authorized by law, and the arbitral decision may be enforced in any court. At your request, hearings may be conducted in person or by telephone. The arbitrator may provide for submitting and determining motions on briefs, without oral hearings. The prevailing party in any action or proceeding to enforce this agreement shall be entitled to costs and attorney fees.

In the event of any arbitration or action at law or in equity to enforce or interpret the terms of this Agreement, the parties agree that the party who is awarded the most money (which, for the avoidance of doubt, shall be determined without regard to any statutory fines, penalties, fees, or other charges awarded to any party) shall be deemed the prevailing party for all purposes and shall therefore be entitled to an additional award of the full amount of the attorney fees, deposition costs, and expenses paid by such prevailing party in connection with arbitration or litigation without reduction or apportionment based upon the individual claims or defenses giving rise to the fees and expenses. Nothing herein shall restrict or impair an arbitrator’s or a court’s power to award fees and expenses for frivolous or bad faith pleading.

If a court decides that any provision of this section 6.3 is invalid or unenforceable, that provision shall be severed and the other parts of this section 6.3 shall still apply. In any case, the remainder of this Agreement, will continue to apply.

7. General Provisions.

7.1. Computer Viruses

We shall not bear any liability, whatsoever, for any damage or interruptions caused by any computer viruses, spyware, scareware, Trojan horses, worms, or other malware that may affect your computer or other equipment, or any phishing, spoofing or other attack. We advise the regular use of a reputable and readily available virus screening and prevention software. You should also be aware that SMS and email services are vulnerable to spoofing and phishing attacks and should use care in reviewing messages purporting to originate from Bitsy. Always log into your Bitsy Enrollment through the Bitsy App to review any transactions or required actions if you have any uncertainty regarding the authenticity of any communication or notice.

7.2. Maintenance

You agree and understand that part of or all of Bitsy and the Bitsy App may be periodically unavailable during scheduled maintenance or unscheduled downtime (“Downtime”).

You agree and understand that Bitsy is not liable or responsible to you for any inconvenience or damage to you as a result of Downtime. Following Downtime, when services resume, you understand that market conditions and prices may differ significantly from the market conditions and prices prior to such Downtime.

7.3. Release of Bitsy; Indemnification

You release Bitsy, its affiliates and service providers, and each of their respective officers, directors, agents, joint venturers, employees and representatives from any and all claims, demands and damages (actual and consequential) of every kind and nature arising out of or in any way related to disputes between you and third parties, including Users, arising out of your use of the Bitsy Services. You agree to indemnify and hold Bitsy, its affiliates and service providers, and each of its or their respective officers, directors, agents, joint venturers, employees and representatives, harmless from any claim or demand (including attorneys’ fees and any fines, fees or penalties imposed by any regulatory authority) arising out of or related to your breach of this Agreement or your violation of any law, rule or regulation, or the rights of any third party. You further acknowledge and agree that neither Bitsy nor any of its officers, directors, members, managers, employees, representatives, or agents has made any representations or warranties to you, and you are not relying on any representation, warranty, covenant, or promise of Bitsy or its officers, directors, members, managers, agents, or representatives, in making your decision to register for a Bitsy Enrollment or enter into Digital Currency Transactions.

7.4. Limitation of Liability; No Warranty.

IN NO EVENT SHALL BITSY, ITS AFFILIATES AND SERVICE PROVIDERS, OR ANY OF THEIR RESPECTIVE OFFICERS, DIRECTORS, AGENTS, JOINT VENTURERS, EMPLOYEES OR REPRESENTATIVES, BE LIABLE

  • (A) FOR ANY AMOUNT GREATER THAN THE VALUE OF THE SUPPORTED ASSET ON DEPOSIT IN YOUR BITSY ENROLLMENT OR
  • (B) FOR ANY LOST PROFITS OR ANY SPECIAL, INCIDENTAL, INDIRECT, INTANGIBLE, OR CONSEQUENTIAL DAMAGES, WHETHER BASED IN CONTRACT, TORT, NEGLIGENCE, STRICT LIABILITY, OR OTHERWISE, ARISING OUT OF OR IN CONNECTION WITH AUTHORIZED OR UNAUTHORIZED USE OF THE BITSY APP OR THE BITSY SERVICES, OR THIS AGREEMENT, EVEN IF AN AUTHORIZED REPRESENTATIVE OF BITSY HAS BEEN ADVISED OF OR KNEW OR SHOULD HAVE KNOWN OF THE POSSIBILITY OF SUCH DAMAGES.

THIS MEANS, BY WAY OF EXAMPLE ONLY (AND WITHOUT LIMITING THE SCOPE OF THE PRECEDING SENTENCE), THAT IF YOU CLAIM THAT BITSY FAILED TO PROCESS A BUY OR SELL TRANSACTION PROPERLY, YOUR DAMAGES ARE LIMITED TO NO MORE THAN THE VALUE OF THE SUPPORTED DIGITAL CURRENCY AT ISSUE IN THE TRANSACTION, AND THAT YOU MAY NOT RECOVER FOR LOST PROFITS, LOST BUSINESS OPPORTUNITES, OR OTHER TYPES OF SPECIAL, INCIDENTIAL, INDIRECT, INTANGIBLE, OR CONSEQUENTIAL DAMAGES IN EXCESS OF THE VALUE OF THE SUPPORTED ASSET AT ISSUE IN THE TRANSACTION. SOME JURISDICTIONS DO NOT ALLOW THE EXCLUSION OR LIMITATION OF INCIDENTAL OR CONSEQUENTIAL DAMAGES SO THE ABOVE LIMITATION MAY NOT APPLY TO YOU.

THE BITSY SERVICES ARE PROVIDED ON AN “AS IS” AND “AS AVAILABLE” BASIS WITHOUT ANY REPRESENTATION OR WARRANTY, WHETHER EXPRESS, IMPLIED OR STATUTORY. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, BITSY SPECIFICALLY DISCLAIMS ANY IMPLIED WARRANTIES OF TITLE, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND/OR NON-INFRINGEMENT. BITSY DOES NOT MAKE ANY REPRESENTATIONS OR WARRANTIES THAT ACCESS TO THE SITE, ANY PART OF THE BITSY SERVICES, OR ANY OF THE MATERIALS CONTAINED THEREIN, WILL BE CONTINUOUS, UNINTERRUPTED, TIMELY, OR ERROR-FREE.

Bitsy makes no representations about the accuracy or completeness of historical Digital Financial Asset price data available on the Bitsy App. Bitsy will make reasonable efforts to ensure that requests for electronic debits and credits involving bank accounts, credit cards, and check issuances are processed in a timely manner but Bitsy makes no representations or warranties regarding the amount of time needed to complete processing which is dependent upon many factors outside of our control.

The above provisions are intended only to apply to the extent permitted under applicable law.

7.5. Entire Agreement

This Agreement, all Policies and Consents, and Appendices incorporated by reference or included herein comprise the entire understanding and agreement between you and Bitsy as to the subject matter hereof, and supersede any and all prior discussions, agreements and understandings of any kind (including without limitation any prior versions of this Agreement), and every nature between and among you and Bitsy. Section headings in this Agreement are for convenience only, and do not and shall not govern the meaning or interpretation of any provision of this Agreement.

7.6. Amendments

We may amend or modify this Agreement by posting the amended Agreement on the Bitsy App, and the revised Agreement shall be effective at such time. If you do not agree with any modification to this Agreement, your sole and exclusive remedy is to terminate your use of the Bitsy Services and close your Bitsy Enrollment. You agree that we shall not be liable to you or any third party for any modification or termination of the Bitsy Services, or suspension or termination of your access to the Bitsy Services, except to the extent otherwise expressly set forth herein.

7.7. Assignment

You may not assign this Agreement or any of your obligations, rights and/or licenses under this Agreement. We reserve the right to assign this Agreement and our rights and obligations hereunder without restriction. Any attempted transfer or assignment in violation hereof shall be null and void. Subject to the foregoing, this Agreement will bind and inure to the benefit of the parties, their successors and permitted assigns.

7.8. Severability

If any one or more of the provisions contained in this Agreement or any application thereof shall be invalid, illegal or unenforceable in any respect, the validity, legality or enforceability of the remaining provisions of this Agreement and any other application thereof shall not in any way be affected or impaired thereby; provided, however, that to the extent permitted by applicable law, any invalid, illegal or unenforceable provision shall be considered for the purpose of determining the intent of the parties in connection with the other provisions of this Agreement.

7.9. Change of Control

If Bitsy is sold, acquired by or merged with a third-party, or otherwise undergoes a change of control, Bitsy may transfer or assign all information Bitsy collected from you in connection with such merger, acquisition, sale, or other change of control.

7.10. Survival

All provisions of this Agreement which by their nature extend beyond the expiration or termination of this Agreement, including, without limitation, sections pertaining to suspension or termination, Bitsy Enrollment cancellation, debts owed to Bitsy, general use of the Bitsy App, disputes with Bitsy, and general provisions, shall survive the termination or expiration of this Agreement.

7.11. Governing Law

You agree that the laws of the State of Utah, without regard to principles of conflict of laws, will govern this Agreement and any claim or dispute that has arisen or may arise between you and Bitsy, except to the extent governed by federal law. You hereby expressly consent to the personal jurisdiction of the state and federal courts located in Salt Lake City, Utah, for any action or proceeding arising from or relating to this Agreement; waive any argument that venue in any such forum is not convenient; and agree that the venue for any such action or proceeding shall be in a state or federal court located in Salt Lake City, Utah.

7.12. Force Majeure

Bitsy shall not be liable for delays, failure in performance or interruption of service which result directly or indirectly from any cause or condition beyond Bitsy’s reasonable control, including but not limited to, any delay or failure due to any act of God, act of civil or military authorities, act of terrorists, civil disturbance, war, strike or other labor dispute, fire, interruption in telecommunications or Internet services or network provider services, failure of equipment and/or software, other catastrophe or any other occurrence which is beyond our reasonable control and shall not affect the validity and enforceability of any remaining provisions.

7.13. English Language Controls

Notwithstanding any other provision of this Agreement, any translation of this Agreement is provided for your convenience. The meanings of terms, conditions and representations herein are subject to definitions and interpretations in the English language. Any translation provided may not accurately represent the information in the original English.

7.14. Non-Waiver of Rights

This agreement shall not be construed to waive rights that cannot be waived under applicable state money transmission laws in the state and/or country where you are located.

© Bitsy Inc. All rights reserved. 2018

APPENDIX 1: PROHIBITED AND CONDITIONAL USE

Prohibited Use

You may not use your Bitsy Enrollment to engage in the following categories of activity (“Prohibited Uses”). The specific types of use listed below are representative, but not exhaustive. If you are uncertain as to whether or not your use of Bitsy Services involves a Prohibited Use or have questions about how these requirements apply to you, please contact us at [email protected] Bitsy retains absolute discretion to determine which activities constitute Prohibited Uses.

By opening a Bitsy Enrollment, you confirm that you will not use your Bitsy Enrollment to do or participate in any of the following:

  • Unlawful Activity: Activity which would violate, or assist in violation of, any law, statute, ordinance, regulation, or sanctions programs administered in the countries where Bitsy conducts business, including but not limited to OFAC, or which would involve proceeds of any unlawful activity; publish, distribute or disseminate any unlawful material or information.
  • Abusive Activity: Actions which impose an unreasonable or disproportionately large use of our infrastructure, or detrimentally interfere with, intercept, or expropriate any system, data, or information; transmit or upload any material to the Bitsy App that contains viruses, Trojan horses, worms, or any other harmful or deleterious programs; attempt to gain unauthorized access to the Bitsy App, other Bitsy Enrollments, computer systems or networks connected to the Bitsy App, through password mining or any other means; use Bitsy Enrollment information of another party to access or use the Bitsy App, except in the case of specific Merchants and/or applications which are specifically authorized by a User to access such User’s Bitsy Enrollment and information; or transfer your account access or rights to your account to a third party, unless by operation of law or with the express written permission of Bitsy. Bitsy retains absolute to discretion to determine which activities constitute abusive activities.
  • Abuse Other Users: Actions that interfere with another individual’s or entity’s access to or use of any Bitsy Services; defame, abuse, extort, harass, stalk, threaten or otherwise violate or infringe the legal rights (such as, but not limited to, rights of privacy, publicity and intellectual property) of others; incite, threaten, facilitate, promote, or encourage hate, racial intolerance, or violent acts against others; harvest or otherwise collect information from the Bitsy App about others, including without limitation email addresses, without proper consent.
  • Fraud: Activity which operates to defraud Bitsy, Bitsy Users, or any other person; provide any false, inaccurate, or misleading information to Bitsy.
  • Intellectual Property Infringement: Engage in transactions involving items that infringe or violate any copyright, trademark, right of publicity or privacy or any other proprietary right under the law, including but not limited to sales, distribution, or access to counterfeit music, movies, software, or other licensed materials without the appropriate authorization from the rights holder; use of Bitsy intellectual property, name, or logo, including use of Bitsy trademarks or service marks, without express consent from Bitsy or in a manner that otherwise harms Bitsy or the Bitsy brand; any action that implies an untrue endorsement by or affiliation with Bitsy.

APPENDIX 2: VERIFICATION PROCEDURES AND LIMITS

In accordance with our anti-money laundering compliance program and procedures, we are required to identify Users on our platform. This ensures we remain in compliance with Know-Your-Customer (“KYC”) and AML laws in the jurisdictions in which we operate, and reduces the chance that the Bitsy Service will be misused for criminal purposes.

Bitsy collects and verifies information about you in order to: (a) protect Bitsy and the community from fraudulent Users, and (b) to keep appropriate records of Bitsy’s customers. Your daily or weekly purchasing and sale limits, USD transfer limits, and limits on transactions from a linked payment method are based on the identifying information and/or proof of identity you provide to Bitsy.

All U.S. customers who wish to use Bitsy Services are required to establish a Bitsy Enrollment by:

  • Providing your name and valid email address, a password and your state of residence,
  • Certifying that you are 18 years or older and able to enter into this Agreement,
  • Accepting Bitsy’s User Agreement and Privacy Policy, and
  • Verifying your identity by submitting the following information:
    • Name
    • DOB
    • Physical address
    • Email address
    • Mobile Device number

All U.S. customers who wish to purchase Digital Financial Assets from Bitsy are required to:

  • Submit a copy of an acceptable form of identification (i.e. passport, state driver’s license, or state identification card), and
  • Submit a picture of yourself or a selfie from your webcam or mobile phone.

Notwithstanding these minimum verification procedures for the referenced Bitsy Services, Bitsy may require you to provide or verify additional information, or to wait some amount of time after completion of a transaction, before permitting you to use any Bitsy Services and/or before permitting you to engage in transactions beyond certain volume limits. You may determine the volume limits associated with your level of identity verification by visiting bitsy.com/help.

You may contact us at [email protected] to request larger limits. Bitsy will require you to submit to Enhanced Due Diligence, as defined in section 6.4 of the Bitsy User Agreement. Additional fees and costs may apply, and Bitsy does not guarantee that we will raise your limits.


APPENDIX 3: E-SIGN DISCLOSURE AND CONSENT

This policy describes how Bitsy delivers communications to you electronically. We may amend this policy at any time by providing a revised version on our website. The revised version will be effective at the time we post it. We will provide you with prior written notice of any material changes via our website.

Electronic Delivery of Communications

This policy describes how Bitsy delivers communications to you electronically and how you may withdraw your consent for electronic communications. We may amend this policy at any time by providing a revised version on our website. The revised version will be effective at the time we post it. We will provide you with prior written notice of any material changes via our website.

Electronic Delivery of Communications

By enrolling with Bitsy, you agreed to enter into contracts electronically and you agreed to receive electronically all communications, agreements, documents, notices and disclosures (together, “Communications”) that we provide in connection with your Bitsy Enrollment, the Bitsy App, and your use of Bitsy Services. Communications include:

  • Terms of use and policies you agree to (e.g., the Bitsy User Agreement and Privacy Policy), including updates to these agreements or policies;
  • Enrollment details, history, transaction receipts, confirmations, and any other Enrollment or transaction information;
  • Legal, regulatory, and tax disclosures or statements we may be required to make available to you; and
  • Responses to claims or customer support inquiries filed in connection with your Enrollment.

We will provide these Communications to you by posting them on the Bitsy website, emailing them to you at the primary email address listed in your Bitsy profile, communicating to you via “instant chat” on our website, and/or through other electronic communication such as text message or mobile push notification.

Hardware and Software Requirements

In order to access and retain electronic Communications, you will need the following computer hardware and software:

  • A device with an Internet connection;
  • A current web browser that includes 128-bit encryption (e.g. Internet Explorer version 9.0 and above, Firefox version 3.6 and above, Chrome version 31.0 and above, or Safari 7.0 and above) with cookies enabled;
  • A valid email address (your primary email address on file with Bitsy); and
  • Sufficient storage space to save past Communications or an installed printer to print them.

How to Withdraw Your Consent

You may withdraw your consent to receive Communications electronically by contacting us at [email protected] If you fail to provide or if you withdraw your consent to receive Communications electronically, Bitsy reserves the right to immediately close your Enrollment or charge you additional fees for paper copies.

Updating your Information

It is your responsibility to provide us with a true, accurate and complete e-mail address and your contact information, and to keep such information up to date. You understand and agree that if Bitsy sends you an electronic Communication but you do not receive it because your primary email address on file is incorrect, out-of-date, blocked by your service provider, or you are otherwise unable to receive electronic Communications, Bitsy will be deemed to have provided the Communication to you.

You may update your information by logging into your Enrollment and visiting settings or by contacting our support team at [email protected]

APPENDIX 4: SUPPORTED ASSETS

The following Assets are supported by the Bitsy Wallet and available for purchase, sale, and transfer through Bitsy Services:

  • Bitcoin (BTC)

APPENDIX 5: TRANSACTION LIMITS

The following transaction limits will apply to all enrolled Bitsy Users for all Purchase Transactions or Sale transactions (whether by credit or debit card, ACH, or wire) unless otherwise modified by Bitsy following its Enhanced Due Diligence process, as described in 5.4. The time periods noted are measured in calendar days. Purchase Transaction and Sale Transaction limits will be aggregated separately. In other words, your total Purchase Transactions will not affect your total Sales Transaction limits and vice versa.

  • Up to $500 per week limit for the first 8 weeks following your Enrollment;
  • Up to $1,000 per week for the subsequent 8 weeks;
  • Up to $1,500 per week for the subsequent 16 weeks;
  • Up to $5,000 per week afterward; and
  • $5,001 or more per week only upon Bitsy’s review and approval in accordance with our Enhanced Due Diligence Process (as set forth in 5.4).

All transaction limits will be enforced in their aggregate, separately for Purchase and Sale Transactions.

As an example, if you purchase $500 worth of Supported Assets via credit card in your first week as a Bitsy customer, you cannot purchase an additional $500 (whether by ACH, wire, or bank card) until a full week (7 calendar days) has passed; but you can sell $500 of an Asset via the method of your choice.

Likewise, if you purchase $900 worth of a Supported Asset via ACH in week 9, you may purchase an additional $100 of a Supported Asset via the purchasing method of your choice in that week or wait until the following week for your transaction limit to reset.

Pleases contact Bitsy Support at [email protected] if you have any questions.

If there is any disagreement about the Transaction Limits and timing of any Purchase or Sale Transactions, Bitsy’s records will control.

Modified: 12/11/2018