Gam3

Gam3 Foundation

Staking Terms and Conditions

Last Revised: 7 July 2024

IMPORTANT: This document outlines crucial information regarding potential risks, your rights and responsibilities, along with conditions, limitations, and exclusions that may affect your rights, including dispute resolution processes. Please read this document thoroughly.

1. Introduction

1.1 These Gam3 Foundation Staking Terms and Conditions ("Staking Terms") outline the rules for voluntarily staking Gam3 Tokens and Terra Nodes on the Gam3 Network. These Staking Terms are part of the Terms of Use agreement that governs your use of the Gam3 Foundation website and services.

1.2 It's important that you carefully read these Staking Terms along with the Terms of Use. Together, they form a binding legal agreement between you and the Gam3 Foundation. If you disagree with any part of these Staking Terms or the Terms of Use, you should not participate in Staking.

1.3 By staking on the Gam3 Network, you acknowledge that you have read, understood, and agree to be bound by these Staking Terms and the Terms of Use, including any future modifications. If you own a Terra Node, you further acknowledge and agree that you have read, understood, and agree to be bound by the Terra Node Software Agreement.

1.4 The Gam3 Foundation reserves the right to update or modify these Staking Terms at any time under the conditions set out in the Terms of Use. If you continue staking Gam3 Tokens and/or Terra Nodes after any changes are made, you are signifying your acceptance of the updated, modified, or removed terms.

1.5 Unless otherwise stated below, all capitalized terms, names, and definitions within these Staking Terms should be understood and interpreted according to the definitions set forth in the Gam3 Foundation's Terms of Use. If a term or definition is defined in both these Staking Terms and the Terms of Use, the definition in the Staking Terms will prevail for matters related to Staking.

2. Definitions

2.1 The following terms are used throughout these Terms and Conditions with the corresponding meanings:

Arbitrum: The Layer 2 (L2) scaling sidechain to Ethereum denoted by ARB, including Arbitrum One and Arbitrum Nova.
Breakdown: The allocation of Net Network Rewards among Terra Node Holders, Gam3 holders, and the Pool Owner. A Breakdown is typically expressed as a percentage.
Challenge: The hourly network challenge that invites assertions from operational Terra Nodes that are verified with Terra Node Keys.
Cooldown Period: A fixed period before a specific action can be taken regarding a Staking Pool.
Digital Wallet: An Ethereum wallet compatible with Arbitrum that allows you to store, trade, and use ether (ETH).
Gam3: The non-transferable utility Token of the Gam3 Network.
Ethereum: The layer-1 blockchain denoted by ETH.
Emissions Schedule: The schedule outlining the issuance of new Gam3 Tokens on the Gam3 Blockchain.
Gam3 Foundation: "We," "us," or "our" refers to the Gam3 Foundation, a foundation company incorporated in the BVIs, along with its personnel, affiliates, and related companies.
Genesis Key: A Pool Owner's sole or remaining Terra Node Key in a Staking Pool.
Lock Period: A designated timeframe during which Gam3 cannot be Redeemed. Refer to Section 9 for further details.
Network Reward: The total amount of new Gam3 Tokens generated during each Challenge according to the Emissions Schedule.
Net Network Reward: A pro-rata share of the Network Reward collected by or on behalf of a Terra Node Key, minus any Slashing Penalties (if applicable).
Participate" or "Participating: To submit proof on the Gam3 Blockchain and collect a Net Network Reward from the Referee. Each Terra Node Key has a baseline 1% chance of Participating.
Pool Contract: A Smart Contract deployed on Arbitrum by a Digital Wallet signifying a decision to stake Gam3 or Terra Node Keys to a Staking Pool associated with the Gam3 Network.
Pool Owner: A Terra Node Key Owner who creates and manages a Staking Pool.
Redeem" or "Redemption: To burn Gam3 in your custody upon the Lock Period's conclusion and receive an equivalent number of Gam3, minus any Redemption Penalties.
Redemption Interface: Any software or application that facilitates Redemption.
Redemption Penalty: The penalty automatically applied to a user who Redeems Gam3 within a Lock Period.
Redemption Request Date: The date on which a user submits a request to redeem xGam3 for Gam3.
Referee: The Referee Smart Contract responsible for overseeing and validating assertions made by Terra Nodes regarding a Challenge.
Reward Multiplier: The adjustment to the baseline 1% chance a Terra Node Key will receive a Net Network Reward by Participating in a Challenge.
Reward Threshold: The minimum number of xGam3 required to be staked in a Staking Pool to raise the Reward Multiplier for the Terra Node Keys within that Staking Pool.
Terra Node Key: The unique non-fungible Key Token required to license and operate a Terra Node on the Gam3 Network. Each Terra Node Key has a baseline 1% chance of Participating in a Challenge.
Terra Node Owner: The owner of a Terra Node Key who has accepted the Terra Node Software Agreement and passed KYC.
Terra Node: Any observation node that submits proof to the Referee on behalf of one or more Terra Node Keys.
Slashing" or "Slashing Penalty: Any penalty incurred by a Terra Node, Terra Node Key, or Staking Pool for unavailability, slow performance, incorrect results, or malicious behavior on the Gam3 Network.
Smart Contract: A self-executing digital contract on a blockchain platform.
Staking" or "to Stake: To commit xGam3 and/or Terra Node Key(s) in your custody to a Pool Contract on Arbitrum. All Terra Node Key(s) will remain in your wallet. The Pool Contract will hold all xGam3 for the duration of your Stake.
**Staking Pool" or "Pool": A group of Terra Node Keys and xGam3 staked to a Pool Contract to achieve a Reward Tier for the Terra Node Keys within that group.
Staking Terms: These Terms and Conditions of Staking, as amended from time to time.
Token: Any digital representation of value, regardless of whether it can be digitally traded, transferred, used for payment, or invested.
Unstake: To withdraw xGam3 in your custody from a Staking Pool Contract.

3. Eligibility and Participation

3.1 To be eligible to Stake xGam3 or Terra Node Keys within the Gam3 Ecosystem, you must meet the eligibility requirements outlined in the Terms of Use. This includes adhering to exclusions for U.S. Persons, Sanctioned Persons, and the Risk Assessment Framework. Additionally, you must satisfy the following criteria:

(a) You must agree to and accept these Staking Terms and regularly review them to stay informed of any changes or modifications.

(b) You must reside in a jurisdiction where participating in Token Staking is not prohibited or restricted by applicable laws, regulations, or sanctions.

(d) You must possess an active and valid Digital Wallet compatible with Staking and meet the conditions set out in Section 4 of these Staking Terms.

(e) You must agree to comply with all laws, regulations, and guidelines applicable to you regarding Token Staking, including tax obligations and reporting requirements, if applicable.

(f) You must acknowledge and agree that you possess sufficient knowledge of digital assets, blockchain technology, Staking, and the Gam3 Ecosystem to understand the risks associated with Staking xGam3 and Terra Node Keys, as outlined in Section 10 of these Staking Terms.

(g) You must ensure you have access to and control of the technology necessary to participate in Staking safely and securely (including hardware, software, and internet connectivity, as applicable).

4. Connecting a Digital Wallet

4.1 To stake xGam3 or Terra Node Keys on the Gam3 Network, you must connect a Digital Wallet that supports these Tokens. We have no access to or control over your Digital Wallets. You are solely responsible for the security and management of your Digital Wallets, including any private keys. We cannot help you access or recover your private keys or seed phrases. It's your sole responsibility to keep your private keys confidential and be accountable for any transactions signed with them. Losing access to your wallet due to lost, stolen, or compromised keys (or any other reason) will result in the permanent loss of any staked xGam3 or Terra Node Keys. We bear no responsibility for such losses.

4.2 The staking of xGam3 and Terra Node Keys to the Gam3 Network occurs within your connected Digital Wallet. You are entirely responsible for verifying all Staking activities from your Digital Wallet and ensuring they are executed securely and correctly. The Gam3 Foundation will not be held liable for any disputes or losses arising from this.

4.3 By Staking xGam3 or Terra Node Keys on the Gam3 Network, you acknowledge and agree that you are interacting directly with a Smart Contract. We do not act on your behalf in any such Staking activity. You further acknowledge and agree to the following:

(a) We do not and will not take custody of any Tokens on your behalf at any time, including any xGam3 or Gam3 staked to a Smart Contract.

(b) We do not and will not offer safekeeping services for any Tokens on your behalf. You are solely responsible for the safekeeping of any Tokens in your Digital Wallet, including any Gam3, xGam3, or Terra Node Keys.

(c) We do not and will not administer, manage, or otherwise control any Tokens on your behalf, including Gam3, xGam3 , or Terra Node Keys.

5. Staking Pool Operation

5.1 All Tokens staked on the Gam3 Network after the effective date of these Terms must be staked through a Staking Pool Contract created and managed by a Pool Owner who has agreed to the Terra Node Software Agreement. A copy of this Agreement is available on the Gam3.Games website. Review both this Agreement and these Staking Terms if you intend to purchase a Terra Node Key and operate a Staking Pool. The Gam3 Foundation does not create, host, operate, or own any Staking Pools itself and is not responsible for the operation or performance of any Staking Pools created by Terra Node Key owners.

5.2 If you have purchased a Terra Node Key and wish to create a Staking Pool, you agree to do so in accordance with these Terms and any current or future procedures and policies established by the Gam3 Foundation. You further agree to comply with all applicable laws, including those related to the distribution of any Tokens generated by your Staking Pool. The Gam3 Foundation disclaims all liability for the creation and operation of Staking Pools on the Gam3 Network.

5.3 Staking Pools did not exist before these Terms became effective. Therefore, if you staked xGam3 or Terra Node Keys on the Gam3 Network before that date, they were not staked to a Staking Pool. You can choose to maintain your independent stake or join a Staking Pool; however, you cannot add any additional independent xGam3 stake to the Gam3 Network. Any new stake of xGam3 or Terra Node Keys must be staked to a Staking Pool Contract.

5.4 If you choose to stake xGam3 or Terra Node Keys to a Staking Pool, you are responsible for selecting the Staking Pool you wish to join. A list of available pools may be found on our website: TBU

5.5 While the Gam3 Foundation makes reasonable efforts to provide a list of active Staking Pools that comply with our policies, all such information is provided "as is" and we make no guarantees about the accuracy, completeness, or reliability of the information presented regarding Staking Pools or any other matters. We do not offer investment or financial advice, and nothing on our website, in these Terms, or elsewhere should be construed as such. The performance of Staking Pools is influenced by many variables, and past performance is not indicative of future results. We encourage you to conduct your own research and consult with advisors before making any decisions regarding Staking Pools.

5.6 All Staking Pools are subject to the following common parameters (subject to change). Please review these parameters carefully before joining a Staking Pool:

(a) A Pool Owner determines the Breakdown (allocation) of rewards for any Staking Pool they create. This Breakdown will be coded into the Staking Pool Contract, and we assume no responsibility for its fairness, reliability, or completeness.

(b) Until further notice, the following limitations apply to the Breakdown of Net Network Rewards within a Staking Pool:

The allocation to Terra Node Keys is capped at ninety-five (95) percent.
The allocation to staked xGam3 is capped at eighty-five (85) percent.
The allocation to Pool Owners is capped at ten (10) percent.

The Gam3 Foundation reserves the right to amend these limitations at any time. Please review our website for up-to-date information on allocation limitations or contact us at the email address provided below.

(c) A Pool Owner is responsible for paying all gas fees associated with operating all Terra Node Keys within a Staking Pool they create. If you are a Pool Owner, your Digital Wallet address must contain sufficient Arbitrum ETH to cover these gas fees. You acknowledge and agree that you are liable for such fees. If you stake xGam3 or Terra Node Keys to a Staking Pool Contract, you understand that the Terra Node Keys in that Staking Pool may not be able to Participate in a Challenge and collect Net Network Rewards if the Pool Owner has not maintained a sufficient amount of Arbitrum ETH in their Digital Wallet Address to cover the applicable gas fees. This may impact your ability to claim a distribution of Net Network Rewards according to the Breakdown of your Pool. The Gam3 Foundation is not responsible in any way for the operation of any Staking Pool.

(d) A Pool Owner may operate all of the Terra Node Keys within their Staking Pool in unison, regardless of whether they own all the Terra Node Keys. A Pool Owner may also specify a "delegate" Digital Wallet Address to operate the Terra Node Keys within their Staking Pool on their behalf. It is up to you to communicate with the Pool Owner regarding the operation of Terra Node Keys, including any delegation.

(e) The Gam3 Network caps the total amount of xGam3 that can be staked on the network. This cap is determined by the number of Terra Node Keys in circulation. If the cap is reached, you acknowledge and agree that you cannot stake xGam3 on the Gam3 Network until more Terra Node Keys become available. Please check our website for current network cap information or contact us at the provided email address.

(f) The Gam3 Network caps the number of Terra Node Keys and the amount of xGam3 that can be staked to any individual Staking Pool Contract. If the cap is reached, you acknowledge and agree that you cannot stake your xGam3 or Terra Node Keys to that pool until the number of stakers falls below the cap. Please check our website for current network cap information or contact us at the provided email address.

(g) Staking Pool Contracts may be upgraded in the future as determined by the Gam3 Community or the Gam3 Foundation acting on its behalf.

5.7 By accepting these terms, you acknowledge and agree that staking xGam3 or a Terra Node Key to a Staking Pool does not guarantee any payments or rewards. It only grants you the potential right to share a portion of the Net Network Rewards collected by a Participating Terra Node Key (if any).

5.8 THE GAM3 FOUNDATION DOES NOT GUARANTEE THAT A STAKING POOL YOU JOIN WILL OPERATE AS YOU INTEND OR MAKE ANY REPRESENTATIONS ABOUT THE PERFORMANCE OF ANY STAKING POOL. THE BREAKDOWN OF REWARDS AND THE OPERATION OF A STAKING POOL IS THE RESPONSIBILITY OF THE POOL OWNER, NOT THE FOUNDATION. THE PARAMETERS DESCRIBED ABOVE ARE DETERMINED BY THE UNDERLYING SMART CONTRACTS AND THE GAM3 NETWORK AND MAY CHANGE OR OPERATE UNPREDICtably, INCLUDING DUE TO IMPROPER PERFORMANCE OF THE UNDERLYING SERVICES.

6. Time Cooldowns Applicable to Staking Pools

6.1 To promote the smooth and efficient operation of Staking Pools, the following Cooldown Periods have been implemented for all Staking Pool Contracts on the Gam3 Network. These Cooldowns are coded directly into each Staking Pool Contract. Please review these Cooldowns carefully and consider how they might affect you. It's your sole responsibility to stay informed about Staking Pool operations.

(a) Breakdown Changes: As a Pool Owner, you are limited to making changes to the Breakdown (allocation) of Net Network Rewards for your Staking Pool only once every fourteen (14) days. Any initiated change will take effect after fourteen (14) days, and any Net Network Rewards received by the Staking Pool during that period will be distributed according to the Breakdown in effect before the change.

(b) Unstaking Cooldown Period: You can submit an Unstake request for your xGam3 or Terra Node Keys in a Staking Pool at any time. However, the staked xGam3 or Terra Node Keys will only be released after a seven (7) day period from the request date (or sixty (60) days for a request to Unstake a Genesis Key). During this Unstaking Cooldown Period, the staked xGam3 and Terra Node Keys will remain staked in the Staking Pool Contract. Upon expiry, any xGam3 or Terra Node Keys associated with the Unstake request will be available for you to claim and will continue to be staked until claimed.

6.2 There is no guarantee that the current Cooldown Periods will apply to future Staking Pool Contracts. The Gam3 Community or the Gam3 Foundation, acting on its behalf, may decide to change or modify the Cooldown Periods in the best interests of the Gam3 Network.

7. Gam3 Network Rewards

7.1 The participation of a Terra Node Key in a Challenge is governed by a predefined, programmatic process built into the Gam3 Network's protocol. This process is designed to automatically generate a fixed Network Reward for each Challenge. The amount of each Network Reward is determined by the Emissions Schedule of the Gam3 Blockchain and will be divided equally among all Participating Terra Node Keys as a Net Network Reward.

7.2 By agreeing to these Staking Terms, you acknowledge and accept the following:

(a) The creation, division, and distribution of Network Rewards is a fully automated process governed by the protocols of Arbitrum and the Gam3 Blockchain. The Gam3 Foundation disclaims any responsibility or liability for its operation, performance, and functionality.

(b) As with any technology, the automated process for distributing Network Rewards is subject to risks. These include but are not limited to software bugs, errors in the smart contracts, network failures, or unforeseen exploits. Such issues could potentially lead to delayed, diminished, or failed distributions of Network Rewards. Further risks are outlined in Section 10.

(c) We make no guarantees or representations regarding the availability or amount of Network Rewards that may be generated by Challenges on the Gam3 Network. The ability of Terra Node Keys – and as a result, Staking Pools – to collect Net Network Rewards depends on numerous factors, including the reliability of the smart contracts, the performance of the Terra Nodes, the operation of the Terra Node Keys, network conditions and stability, adherence to protocols, the operation of protocols, and the functioning of the Gam3 ecosystem.

(d) The Gam3 Foundation shall not be liable for any loss, damage, or inconvenience suffered by you as a result of any failure, delay, or error in the distribution of Network Rewards, regardless of the cause. You agree to indemnify and hold the Foundation harmless against any claims related to the non-receipt or insufficiency of Network Rewards (or part thereof).

(e) Slashing Penalties imposed on Network Rewards, if any, are outside of the Foundation's control, and you assume all risks associated with Slashing Penalties.

(f) By accepting these Staking Terms, you acknowledge and accept the inherent risks and limitations of the creation, division, and distribution of Network Rewards by the Gam3 Network. The Foundation bears no responsibility for such risks and advises you to conduct your own due diligence before staking on the Gam3 Network.

7.3 THE GAM3 FOUNDATION DOES NOT GUARANTEE THAT YOU WILL RECEIVE NET NETWORK REWARDS OR ANY OTHER REWARDS. REWARDS ARE DETERMINED BY THE UNDERLYING SMART CONTRACTS AND THE GAM3 NETWORK AND MAY FLUCTUATE OR OPERATE UNPREDICtably, INCLUDING BECAUSE THE UNDERLYING SERVICES GENERATING REWARDS ARE PERFORMED IMPROPERLY.

8. Impact of Staking Pools on Terra Node Participation

8.1 During a Challenge, the Referee Smart Contract determines the probability that any given Terra Node Key will participate in the Challenge and collect a Net Network Reward. Currently, the Referee Contract considers the following criteria:

(a) If a Terra Node Key is staked to a Staking Pool containing less than 10,000 xGam3, the Referee assigns a "Bronze" Reward Tier to the Terra Node Key, granting it a one percent (1%) chance of participating in the Challenge. Bronze Tier is the default tier for all Terra Node Keys.

(b) If a Terra Node Key is staked to a Staking Pool containing between 10,000 and 99,999 xGam3, the Referee assigns a "Silver" Reward Tier to the Terra Node Key, granting it a one and a half percent (1.5%) chance of participating in the Challenge.

(c) If a Terra Node Key is staked to a Staking Pool containing between 100,000 and 499,999 xGam3, the Referee assigns a "Gold" Reward Tier to the Terra Node Key, granting it a two percent (2%) chance of participating in the Challenge.

(d) If a Terra Node Key is staked to a Staking Pool containing between 500,000 and 5,499,999 xGam3, the Referee assigns a "Platinum" Reward Tier to the Terra Node Key, granting it a three percent (3%) chance of participating in the Challenge.

(e) If a Terra Node Key is staked to a Staking Pool containing 5,500,000 xGam3 or more, the Referee assigns a "Diamond" Reward Tier to the Terra Node Key, granting it a six percent (6%) chance of participating in the Challenge.

For clarity, all quantities are expressed in whole Tokens but include any portion of a Token up to eighteen (18) decimal places.

8.2 We reserve the right to update or modify the Reward Tiers in the future, as determined by the Gam3 Community or the Gam3 Foundation acting on its behalf.

8.3 Terra Node Keys selected to participate in a Challenge will only collect a Net Network Reward if their corresponding Terra Node submits a valid proof. For staked Terra Node Keys, the Net Network Reward will be distributed to the applicable Staking Pool Contract (for distribution according to the Pool's Breakdown). For unstaked Terra Node Keys, the Net Network Reward will be distributed directly to the Digital Wallet of the Terra Node Key holder. The distribution of Net Network Rewards occurs approximately one hour after the Challenge's completion. We guarantee neither the proper nor the efficient operation of this automated process. You agree to release, indemnify, and hold harmless the Foundation from any claims, actions, losses, or damages relating to the distribution (or failure to distribute) of Net Network Rewards. Staking is subject to the risks outlined in these Staking Terms, including those described in Section 10.

9. Redemption of Network Rewards

9.1 All Network Rewards on the Gam3 Network are Gam3 Tokens (xGam3). xGam3 cannot be traded or transferred and can only be redeemed from the Gam3 Network according to the redemption process outlined in this Section 9. Please carefully review this section to understand the implications of redeeming xGam3 from the Gam3 Network.

9.2 If you hold xGam3 , you can redeem your Tokens for Gam3 during designated Lock Periods: 15 days after the Redemption Request Date, 90 days after the Redemption Request Date, and 180 days after the Redemption Request Date. To redeem, you must submit a Redemption request and pay any associated gas costs. You acknowledge and accept that xGam3 cannot be immediately redeemed for Gam3 under any circumstances. During each Lock Period, the following restrictions apply:

(a) 15 Day Redemptions: If you choose to redeem Gam3 for xGam3 fifteen (15) days after submitting a Redemption request, you acknowledge and accept that you will only receive 0.25 Gam3 for every 1 xGam3 redeemed. You also acknowledge and agree that the Gam3 you are entitled to receive will be minted at the end of the Lock Period and made available for you to claim. It is your responsibility to claim these Tokens. The remaining xGam3 will be burned as a Redemption Penalty.

(b) 90 Day Redemptions: If you choose to redeem Gam3 for xGam3 ninety (90) days after submitting a Redemption request, you acknowledge and accept that you will only receive 0.625 Gam3 for every 1 xGam3 redeemed. You also acknowledge and agree that the Gam3 you are entitled to receive will be minted at the end of the Lock Period and made available for you to claim. It is your responsibility to claim these Tokens. The remaining xGam3 will be burned as a Redemption Penalty.

(c) 180 Day Redemptions: If you choose to redeem Gam3 for xGam3 one hundred and eighty (180) days after submitting a Redemption request, you acknowledge and accept that you will be entitled to receive 1 Gam3 for every 1 xGam3 redeemed. You also acknowledge and agree that the Gam3 you are entitled to receive will be minted at the end of the Lock Period and made available for you to claim. It is your responsibility to claim these Tokens. This redemption will not be subject to a Redemption Penalty.

9.3 If you hold Gam35t, you can immediately redeem it for xGam3 at a 1:1 ratio without any Redemption Penalty or other restrictions, subject to availability. You acknowledge and agree that the xGam3 you are entitled to receive will be minted immediately and made available for you to claim.

9.4 We may, at our discretion and in the interests of the Gam3 Ecosystem, impose redemption limits, alter redemption penalties, or pause redemptions entirely based on factors such as frequency or volume of requests, slashing penalties, or any other reason we deem appropriate.

9.5 To initiate a redemption request, you can either submit a request through the Redemption Interface or interact directly with the underlying Smart Contract on Arbitrum. We will strive to provide continuous, uninterrupted access to the Redemption Interface. However, downtime may occur due to technical failures, software bugs, or external disruptions. The Gam3 Foundation cannot and does not guarantee uninterrupted access to the Redemption Interface. The Foundation shall not be liable for any loss or damage resulting from your inability to use the Redemption Interface during periods of downtime. All Redemption requests are subject to the limitations of the underlying Layer 1 and Layer 2 blockchains, including withdrawal queues, for which the Foundation is not responsible.

10. Risks

10.1 Staking Tokens on the Gam3 Network involves significant risks. By staking xGam3 or Terra Node Keys, you acknowledge and accept that:

(a) Smart Contract Risks: The Gam3 Network is built on a number of smart contracts. Smart contracts are generally self-executing once deployed and rely on experimental cryptographic technology. These contracts may not function as intended, may contain flawed or imprecise code, may be vulnerable to exploits, may be difficult to change or fix due to the lack of centralized control, and may be subject to unknown risks. You acknowledge and accept that smart contract risks could affect adoption, continued use, or overall functionality of the Gam3 Network, as well as the utility and value of any staked xGam3 or Terra Node Keys.

(b) Network Decentralization Risks: The Gam3 Network is envisioned as an open-source project with network governance controlled by the Community. However, currently, the Gam3 Foundation controls certain multi-signature wallets related to the Network. This control allows them to implement specific upgrades and transactions. Under future plans, the Foundation will gradually relinquish control over these wallets and the Network, allowing the user community to govern itself. This decentralization process carries inherent risks and may have unintended or negative consequences.

(c) Slashing Risks: Transactions on the Gam3 Network may be subject to slashing conditions. There is no guarantee that you will find these slashing rules or conditions to be precise, objective, fair, or fairly applied. Additionally, there may not be any governance to mediate slashing events, or it may not be fair or impartial. Applying these rules can be challenging or ambiguous, and your Tokens may be partially or completely slashed despite your efforts to validate transactions and follow conditions. By staking on the Gam3 Network, you acknowledge and accept that these risks are external to the Foundation and beyond their control.

(d) Network Activity Risks: The Gam3 Network relies on active user engagement to function. The Foundation cannot guarantee that the Network will generate enough interest and user participation to be viable or remain so in the future. It is currently impossible to assess whether enough users will participate and whether their engagement will be sustainable and sufficient for the Network to function as intended. Network users could mismanage, misuse, or misappropriate aspects of the Network or Tokens, potentially harming you, the Network, and the Gam3 Community. This could negatively impact your staked xGam3 or Terra Node Keys.

(e) Underlying Blockchain Risks: The Network operates as an Arbitrum Orbit chain on Ethereum. Certain changes to Arbitrum or Ethereum could pose significant or even existential risks to the Network, making it difficult, expensive, or impractical for the Gam3 Network to function as intended. These "contagion risks" could result in the substantial or complete loss of any staked xGam3 or Terra Node Keys.

(f) Illegal Activity Risks: The Network could be exploited to facilitate illegal activities like fraud, money laundering, gambling, tax evasion, sanctions evasion, and scams. This could negatively impact development, growth, and use of the Network, including the value or uses of any Tokens on it.

(g) Cybersecurity Risks: Cyberattacks and security breaches of the Network, our Website, or our services, or those of third parties like decentralized applications or crypto wallets interacting with the Network, could cause you to lose staked xGam3 or Terra Node Keys or adversely impact the Network. The Network could be vulnerable to various attacks, including malware attacks, denial-of-service attacks, consensus-based attacks, Sybil attacks, smurfing and spoofing, governance attacks, exploitable code, or any number of other currently known or novel exploit methods. Additionally, upgrades or changes to the Network, proposed, coded, and/or implemented by parties other than the Foundation, could introduce new vulnerabilities or have unintended or malicious adverse effects. Since the Network and its associated smart contracts generally execute automatically when specific conditions are met and typically cannot be stopped or reversed, any vulnerabilities arising can have significant adverse effects on the Network and any Tokens on it.

(h) Regulatory Risks: Regulatory frameworks governing blockchain technology are still under development worldwide. As the blockchain, crypto, and web3 industry continues to grow, so will regulatory scrutiny across jurisdictions. The Foundation, the Network, and any Tokens may be found subject to certain laws or regulations that could negatively impact you, the Network, or any Tokens you hold. Additionally, existing laws or interpretations may change, and the Foundation, the Network, or any Tokens may be subject to new or changed laws or regulations in the future. Uncertainty in the legal and regulatory environment could negatively impact development, growth, and utilization of the Network and therefore the value or uses of any Tokens on it.

(i) Cryptographic tokens and blockchain-based networks are still emerging technologies with limited testing. Beyond the aforementioned risks, there may be other inherent risks associated with Staking, including unforeseen risks or those not specifically listed here. These risks could materialize through unexpected variations or combinations of the identified risks. Additionally, new risks may emerge as the Network develops (including by parties beyond our control) or as third parties integrate our Tokens or the Network into their products.

10.2 We bring these risks to your attention solely for informational purposes. You rely on this information, Staking Keys, or the Gam3 Network entirely at your own risk. The Gam3 Foundation expressly disclaims any liability for any direct, indirect, incidental, punitive, or consequential damages of any kind arising from the use of this information, Staking Keys, or the Gam3 Network generally.

11. Incorporation of Terms of Use

11.1 By accepting these Staking Terms, you acknowledge and agree that all terms and conditions of the Terms of Use, including but not limited to agreements, acknowledgments, disclaimers, indemnifications, limitations, releases, representations, and warranties, apply equally to these Staking Terms as if fully incorporated herein. Please carefully review the Terms of Use, including the Arbitration Agreement it contains.

12. Acknowledgments and Disclaimers

12.1 By accepting these Staking Terms, you acknowledge and agree that:

(a) The information provided in these Staking Terms does not constitute financial, investment, legal, or tax advice. The decision to participate in staking involves risk and should be based on your own due diligence and risk assessment. You may wish to consult with appropriate third parties before making any staking decisions. The Gam3 Foundation, its affiliates, and its partners accept no responsibility for any loss or damage that may arise directly or indirectly from any staking decisions you make based on information contained within these Staking Terms.

(b) The Gam3 Foundation is not responsible in any way for the Gam3 Network's failure to transfer rewards (including any Slashing risks) or for the loss, destruction, or transfer of rewards to the incorrect wallet address.

(c) The Gam3 Foundation does not guarantee uninterrupted or error-free operation of the Gam3 Network or that it will correct all defects or prevent third-party disruptions or unauthorized third-party access.

(d) Staking is not an investment, and staking xGam3 or Terra Node Keys does not entitle you to any equity interest in the Gam3 Foundation, the Gam3 Network, or any other entity or asset whatsoever.

(e) You acknowledge and agree that, to the fullest extent permitted by applicable law, in no event shall the Gam3 Foundation, any of our affiliates, nor any of the officers, directors, and employees of the Gam3 Foundation or our affiliates, be liable for any claim, damages, or any other form of liability, whether in action or in tort, arising from or in connection with staking on the Gam3 Network. We further disclaim all liability arising from any reliance you placed on any materials we or our affiliates issue in relation to Staking.

13. Severability

If any provision of these Staking Terms is found to be invalid or unenforceable, it shall be severed and limited to the minimum extent necessary and required by law, and all other terms, clauses, waivers, warranties, representations, and provisions of these Terms shall remain in full force and effect.

14. Contact

If you have any questions about these Staking Terms or otherwise need to contact us for any reason, you can reach us at: [[email protected]]