DePeg Cover Wording

Terms and Conditions

  1. Deposits and Withdrawals

    1. All purchasing, underwriting, deposit, and withdrawal instructions can be found here.

    2. Depositing funds into the relevant Amulet Vault acts as proof that the user agrees to and accepts these terms and conditions (“Terms”).

    3. Deposits can only be made before the start of the Cover Period. Any deposits made after the start of the Cover Period for any reason will be deemed void.

    4. Withdrawals are only enabled and processed at settlement which is when either the:

      1. Cover Period has ended; or

      2. Cover has been triggered according to its price feed here.

    5. Amulet is entitled to refuse any withdrawal if any illegality pertaining to the user’s wallet, payment or deposit is found.

    6. Registered covers cannot be altered or cancelled by cover purchasers and cover underwriters.

  2. Coverage

    1. Coverage is underwritten entirely by cover underwriters. Amulet is not responsible for underwriting any Cover, neither is Amulet liable for any payout. Amulet only provides the infrastructure to facilitate peer-to-peer coverage and transactions between the cover purchasers and cover underwriters.

    2. Cover underwriters may underwrite Cover for certain assets by depositing their Capital into the designated ‘Underwrite’ vault on Amulet.

    3. Cover purchasers may purchase Cover to hedge against such assets depegging below the Trigger Price by depositing their Contributions into the designated ‘Purchase’ vault.

    4. Corresponding SPL token receipts are issued to cover purchasers for their purchase and to cover underwriters for their deposit.

    5. In the event a Cover is triggered, cover underwriters for that Cover will be paid their Contributions pro rata but have their Capital paid out pro rata to their cover purchasers. A Cover is only triggered when its covered asset’s price depegs below the Trigger Price according to the Cover’s price feed here.

    6. In the event the Cover is not triggered, cover underwriters for the Cover will be paid back their Capital and also be paid their Contributions pro rata at settlement.

    7. Amulet charges a 5% protocol fee at settlement on either the:

      1. Contributions if the Cover is not triggered; or

      2. Payout if the Cover is triggered.

  3. Disclaimer of Liabilities

    1. The user is aware of the fact that purchasing or underwriting Covers on Amulet may lead to financial loss. All purchasing and underwriting of Covers are conducted strictly on a peer-to-peer basis. Amulet is not liable for any possible financial damage arising from the use of its products and services.

    2. You hereby agree to fully indemnify and hold harmless Amulet and its personnel for any cost, expense, loss, damages, claims, and liabilities howsoever caused that may arise in relation to your use of Amulet.

    3. In no event shall Amulet be held liable to the users for any indirect, collateral, or incidental losses or damages (including loss of profit), even though they may have been notified that such losses or damages are likely to occur.

    4. All price feeds are externally managed and developed and for guidance only. Amulet is not responsible for any errors in the price feeds. Amulet reserves the right to cancel any Cover if the outcome is already known or if the prices have not been updated correctly due to technical issues.

    5. The time display serves as an indicator. Amulet bears no responsibility for any discrepancy between any displayed date and time and the actual date and time of the Cover Period.

  4. Anti-Fraud Policy

    1. Amulet has a strict anti-fraud policy. The Cover is void if the user is suspected of fraudulent actions including but not limited to:

      1. participating in any type of collusion with other users;

      2. exploiting smart contract(s) for the purpose of getting a payout or profiting from the Cover; and/or

      3. development of strategies aimed at unfaithful settlements.

  5. User Acknowledgements

    1. Users are solely responsible for their own wallet transactions. Please be sure to review and confirm your transactions for any mistakes before sending them. Once the transaction is complete, it cannot be changed. Amulet neither takes responsibility nor entertains any requests for missing or duplicate transactions. Users may review their Covers in the “My Covers” section of the site to ensure all requests were accepted.

    2. If Amulet mistakenly credits your position with funds that do not belong to you, whether due to a technical issue, an error in the code, a human error, or otherwise, those funds will be deducted from you.

    3. The right to access and/or use Amulet may be considered illegal in certain countries. The fact that Amulet is accessible in such a country and/or jurisdiction or that it can be displayed in the official language of any of those countries cannot be considered official authorization or legal grounds for using Amulet in any way, form, or manner.

    4. You are responsible for determining whether your accessing and/or use of Amulet is compliant with applicable laws in your jurisdiction and you warrant to us that use of Amulet’s products and services is legal in the territory where you reside.

    5. You will provide all support, information and assistance necessary for Amulet or its authorised representatives to conduct investigations, audits or inspections for the purpose of ensuring proper compliance with the Terms or Amulet’s legal or regulatory obligations, without any cost to Amulet.

    6. Amulet shall be entitled to refuse the use and access of its products and services to anyone who fail to abide by these Terms.

    7. Amulet is not licensed or regulated by any regulator in any jurisdiction.

  6. Other Provisions

    1. In the Terms, “you” and “your” refers to you if you are a user, cover purchaser, and/or cover underwriter (where applicable). “Will”, “must”, and “shall” indicates a mandatory requirement.

    2. In the event any user or Amulet is unable to perform his/her/its obligations under the Terms because of acts of God, breakdown of critical blockchain infrastructure, equipment, transaction or transmission failure or damage reasonably beyond its control, or other causes reasonably beyond its control, such user or Amulet shall not be liable for any damages resulting from such failure to perform or otherwise from such causes.

    3. Any illegality, invalidity or unenforceability of any clause in the Terms shall not affect the legality, validity or enforceability of any other provisions herein.

    4. Any delay or failure to exercise any rights/remedies under the Terms will not be deemed as a waiver. Any single/partial exercise of any right/remedy shall not prevent any other or further exercise of any other right/remedy. The rights and remedies provided in the Terms are cumulative and not exclusive of any other rights/remedies.

    5. The Terms shall continue to be valid and binding for all purposes whatsoever despite any change by amalgamation, change of name, reconstruction or otherwise which may be made in Amulet’s or any user’s constitution.

    6. The Terms stated herein constitute the entire terms and conditions of the Cover and supersede any and all prior or contemporaneous written or oral agreements or representations. No prior inconsistent representation or statement made in relation to the Cover whether orally or in writing shall form part of the Terms.

    7. Except as expressly stated under the Terms of Use, you undertake not to initiate or participate, and waive the right to participate in, any lawsuit, arbitration, class action lawsuit or class wide arbitration against Amulet and/or Amulet’s affiliates.

  7. Definitions

    1. “Amulet” refers to the Amulet protocol located at the Website.

    2. "Capital" refers to the cover underwriters' underwriting capital for the Cover.

    3. “Contribution” refers to the cover purchasers’ payments for the Cover.

    4. “Cover” refers to financial coverage for certain pegged assets de-pegging below their Trigger Price as identified and listed on Amulet.

    5. “Cover Period” refers to the period during which a Cover is in effect, which is between the start of the Cover till settlement.

    6. “Terms of Use” refers to the terms of use of the Website.

    7. “Trigger Price” refers to the price threshold of a covered asset, as indicated on Amulet’s user interface and agreed to by the cover purchaser and cover underwriter for each Cover and Cover Period, below which the Cover is triggered for payout.

    8. “Website” refers to Amulet Protocol.

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