Terms of Service

1. Acceptance of Terms

By accessing or using Polis Exchange (the "Service"), you agree to be bound by these Terms of Service. If you do not agree, you may not access or use the Service. These terms constitute a legally binding agreement between you and Polis Exchange.

2. Eligibility and KYC

You must be at least 18 years old and legally able to enter into a binding contract. You must complete identity verification (KYC) before trading. The Service is not available to residents of sanctioned jurisdictions. You are responsible for ensuring that your use of the Service complies with all applicable laws in your jurisdiction.

Polis Exchange reserves the right to refuse service, suspend accounts, or require additional verification at any time.

3. Risk Disclosure

Trading conditional tokens carries risk of loss. You should carefully consider whether trading is appropriate for you in light of your financial circumstances, experience, and objectives.

Specific risks include:

• Bounded loss. Your maximum loss is the price you paid for your tokens. There is no leverage, no margin, and no liquidations. However, tokens can settle at zero if the underlying company's EBITDA falls to zero.
• Liquidity risk. Markets may experience periods of low liquidity, wide spreads, or rapid price movements that make it difficult to exit positions at favorable prices.
• Settlement risk. Settlement payouts are derived from external data sources (Companies House filings). Delays or inaccuracies in these sources may affect settlement timing and payout values.
• Technology risk. The Service relies on software and network infrastructure that may experience outages, delays, or errors.

You acknowledge that you are solely responsible for your trading decisions and for monitoring your token holdings and collateral balance.

4. User Responsibilities

You agree to:

• Provide accurate and complete information during registration and KYC.
• Maintain the security of your account credentials and API keys.
• Monitor your open orders and maintain sufficient collateral for all obligations.
• Not engage in market manipulation, spoofing, wash trading, or any abusive trading practice.
• Not attempt to reverse engineer, disrupt, or overload the Service infrastructure.
• Not use the Service for money laundering, terrorism financing, or any illegal activity.
• Comply with all applicable tax obligations arising from your trading activity.

5. Fees

The current fee structure is 0% for makers (resting limit orders) and 0.05% (5 bps) for takers (orders that cross the spread). Minting charges 0.10% (10 bps) on the deposited USDC. Redeeming and auction crosses are free. Polis Exchange reserves the right to modify fees at any time with reasonable notice.

6. Bounded Risk

The token model is designed so that your risk is strictly bounded. You can never lose more than the price you paid for your tokens. There is no leverage, no margin requirement, and no liquidation mechanism. Tokens settle to USDC based on the company's filed EBITDA at the next Companies House filing. If the company's EBITDA falls to zero, BULL tokens settle at zero and BEAR tokens settle at 2 × mint price.

7. Limitation of Liability

To the maximum extent permitted by law, Polis Exchange and its operators shall not be liable for any indirect, incidental, special, consequential, or punitive damages, including loss of profits, data, or trading opportunities, arising out of or related to your use of the Service. The Service is provided "as is" and "as available" without warranties of any kind.

Polis Exchange is not liable for losses caused by system outages, network failures, data feed errors, or actions taken by other users. You use the Service at your own risk.

8. Account Suspension and Termination

Polis Exchange may suspend or terminate your account at any time, with or without cause, including for violations of these Terms, suspicious activity, or regulatory compliance requirements. Upon termination, your open orders will be cancelled and any remaining collateral and token holdings will be returned to you.

9. Modifications

Polis Exchange may modify these Terms at any time. Material changes will be communicated through the Service. Continued use of the Service after changes take effect constitutes acceptance of the modified Terms.

10. Governing Law

These Terms are governed by the laws of England and Wales. Any disputes shall be resolved in the courts of England and Wales, without regard to conflict of law principles.