Terms of Service

1. About ApeCover

ApeCover provides blockchain-based infrastructure designed to allow eligible users to purchase short-duration protection relating to certain digital-asset trades.

Protection may be available for eligible token purchases and may provide a predefined payout if specified on-chain conditions are satisfied during the applicable protection period.

ApeCover is designed to operate through smart contracts and supporting infrastructure. Certain functions may be performed automatically based on blockchain data, eligibility assessments, pricing models, oracle data and predefined protocol rules.

ApeCover does not guarantee the value, liquidity, safety, profitability or future performance of any digital asset.

2. Eligibility

You may use the Services only if:

• you are legally capable of entering into a binding agreement;
• you are not prohibited from using the Services under applicable law;
• you are not located in or ordinarily resident in a jurisdiction where use of the Services is prohibited;
• your use of the Services does not violate applicable sanctions, financial restrictions or other laws; and
• you satisfy any additional eligibility requirements imposed by ApeCover or the applicable smart contract.

We may restrict access to the Services, particular assets, chains, venues, jurisdictions, wallets or transactions at any time.

ApeCover may implement geographic restrictions, wallet screening, sanctions screening, eligibility checks or other compliance measures.

3. Wallets and Blockchain Transactions

ApeCover does not custody your private keys unless expressly stated otherwise. You are solely responsible for:

• maintaining control of your wallet;
• protecting your private keys and seed phrases;
• reviewing transaction details before signing;
• paying blockchain network fees;
• ensuring you interact with the correct contracts and interfaces; and
• ensuring that transactions are sent from an eligible wallet.

Blockchain transactions are generally irreversible.

ApeCover cannot reverse, cancel or recover a transaction after it has been confirmed on-chain unless the relevant smart contract expressly provides such functionality.

4. Protection Purchases

Protection is available only for eligible assets, venues, chains and transactions supported by the protocol. Eligibility may depend on factors including:

• token contract characteristics;
• liquidity conditions;
• pool configuration;
• liquidity-lock or burn conditions;
• trading venue;
• price-history availability;
• protocol risk parameters; and
• other screening criteria.

The protocol may refuse to issue protection where an asset or transaction does not satisfy the applicable eligibility conditions.

The development architecture specifically provides that an asset is insurable only when it has a published eligibility verdict, with bytecode screening and liquidity checks used as part of the eligibility process.

5. Protection Period

Each protection policy has a defined protection period displayed before purchase.

Unless otherwise stated in the applicable policy, the protection period is short-duration. The current protocol design uses a 15-minute policy duration, followed by a claim window.

The exact terms applicable to a particular policy are those displayed at the time the policy is created and recorded by the applicable smart contract.

Once a policy has been created on-chain, its terms generally cannot be modified retroactively.

6. Premiums

A premium is payable when protection is purchased. The premium:

• is determined according to the applicable pricing model;
• may vary by asset, venue, chain, tier, market conditions and other risk factors;
• is generally non-refundable once the policy has been created; and
• does not constitute a guarantee that a claim will be paid.

The protocol’s current development model uses risk-calibrated pricing and different protection tiers. The current test design includes Basic, Standard and Degen Max tiers, although these parameters may change before or after launch.

Only the policy terms displayed at the time of purchase are authoritative for that policy.

7. Claims and Payouts

A claim may become eligible when the conditions specified by the applicable policy are satisfied.

Claims are determined according to the applicable smart-contract rules and permitted blockchain data.

The protocol is designed to use both spot and TWAP conditions, with minimum TWAP-age requirements, to reduce the risk of manipulation.

A successful claim does not necessarily reimburse the entire loss on a trade.

Protection payouts may represent a predefined percentage or amount subject to the applicable policy.

The current design specifically ensures that a payout cannot exceed the corresponding real loss on the covered position.

8. No Guaranteed Claim

Purchasing protection does not guarantee a payout. A claim may fail or be rejected where:

• the policy conditions were not satisfied;
• the asset or transaction was not eligible;
• required price conditions were not met;
• required oracle data was unavailable or invalid;
• the policy expired;
• the transaction does not correspond to the covered position;
• the applicable smart contract rejects the claim; or
• another exclusion or condition in the applicable policy applies.

The smart contract’s determination may be final except where an applicable governance or dispute mechanism expressly provides otherwise.

9. Smart Contracts

The Services depend materially on smart contracts.

Smart contracts may contain bugs, vulnerabilities, design flaws or unexpected behaviors despite testing and auditing.

ApeCover’s development process includes internal audits, extensive testing and planned independent third-party audits. The current development record states that two internal audit passes identified and fixed seven issues, with regression tests added for those fixes.

Independent audits reduce but do not eliminate smart-contract risk.

No audit is a guarantee that the protocol is secure or free of vulnerabilities.

10. Oracles and External Data

ApeCover may depend on blockchain data, price feeds, liquidity information, token metadata, venue adapters, TWAP calculations and other external or derived data.

Data may be delayed, incomplete, incorrect, manipulated or unavailable.

The protocol may reject transactions or claims when required information fails validation.

ApeCover does not guarantee continuous availability or accuracy of third-party data sources.

11. Protocol Pauses and Emergencies

ApeCover may include emergency controls designed to stop new protection from being issued when a material technical, market or security issue is identified.

The current architecture includes a guardian mechanism capable of pausing the protocol while requiring timelocked governance for resumption.

A pause may affect your ability to purchase new protection or interact with certain protocol functions.

A pause does not necessarily cancel or modify an existing policy unless expressly provided by the applicable smart contract.

12. Reserves and Capacity

Protection is subject to available protocol capacity and reserve requirements.

The protocol is designed so that reserve availability is a precondition to writing a policy, rather than merely a condition monitored after issuance. Utilisation is also capped.

Protection capacity may therefore be unavailable even where an asset is otherwise eligible.

You should never assume that the ApeCover reserve pool is unlimited or that every valid claim will be economically recoverable in every extreme circumstance.

13. Underwriters and Protocol Capital

Where applicable, ApeCover may use underwriting pools or vaults through which participants provide capital that absorbs specified losses.

The current architecture contemplates a first-loss junior tranche that is subordinate to policyholders.

Participation in an underwriting pool may involve substantial risk, including loss of some or all contributed capital.

Underwriting is not a savings account, deposit, guaranteed investment or risk-free yield product.

14. Fees and Revenue Sharing

ApeCover may receive fees from protection premiums or other protocol activity.

Where applicable, partners may receive revenue shares pursuant to separate partner agreements or protocol rules.

The current architecture includes on-chain partner revenue sharing.

All fees applicable to a transaction should be displayed before the transaction is confirmed where technically practicable.

15. Partner Platforms

ApeCover may be integrated into third-party launchpads, DEXs, wallets, trading platforms and Web3 applications.

Third-party platforms are independent of ApeCover unless expressly stated otherwise. ApeCover is not responsible for:

• third-party interfaces;
• third-party smart contracts;
• third-party token listings;
• third-party custody;
• third-party fees;
• third-party security practices; or
• losses arising from third-party systems.

Using ApeCover through a third-party platform does not create a partnership, endorsement or guarantee unless explicitly stated.

16. Digital Assets and Market Risk

Digital assets are highly volatile and may lose substantial or all of their value. Protection does not guarantee:

• that you will make a profit;
• that you will recover your investment;
• that your token will remain liquid;
• that you can sell your position;
• that a token will not fall below the protection threshold;
• that the underlying protocol will remain operational; or
• that a claim will compensate you for your total loss.

17. Prohibited Use

You may not use ApeCover to:

• violate applicable law;
• evade sanctions or financial restrictions;
• conduct fraud or market manipulation;
• exploit vulnerabilities;
• interfere with protocol operation;
• circumvent eligibility or position limits;
• create fraudulent claims;
• use stolen assets;
• impersonate ApeCover or its personnel;
• introduce malicious code or attacks; or
• otherwise abuse the Services.

ApeCover may block wallets or transactions reasonably suspected of violating these Terms or applicable law.

18. Intellectual Property

The ApeCover name, logo, website, software, documentation, branding, graphics and other materials are owned by or licensed to ApeCover unless otherwise indicated.

Except as expressly permitted, you may not reproduce, modify, distribute, sell, sublicense or commercially exploit ApeCover intellectual property.

Open-source components remain subject to their respective licenses.

19. Disclaimers

20. Limitation of Liability

To the maximum extent permitted by applicable law, ApeCover and its affiliates, officers, directors, employees, contributors and service providers will not be liable for indirect, incidental, consequential, special, exemplary or punitive damages, including loss of profits, digital assets, data, business opportunity or expected returns.

Nothing in these Terms excludes liability that cannot legally be excluded or limited.

The maximum aggregate liability of ApeCover arising from your use of the Services shall be limited to the greater of: the fees you paid directly to ApeCover during the [three/six/twelve] months preceding the event giving rise to the claim.

21. Indemnification

To the extent permitted by law, you agree to indemnify and hold harmless ApeCover and its affiliates, officers, directors, employees and service providers from claims, losses, liabilities and expenses arising from:

• your violation of these Terms;
• your unlawful use of the Services;
• your violation of another person's rights;
• your misuse of the protocol;
• fraud or misconduct; or
• your violation of applicable law.

22. Changes

ApeCover may modify these Terms from time to time.

Updated Terms will be posted on the website with a revised effective date.

Your continued use of the Services after the updated Terms become effective constitutes acceptance of the revised Terms to the extent permitted by law.