Custody and Administration agreement

General provisions

1.1. Description of the service

BLOX B.V. (“BLOX”) instructs Stichting BLOX Custody on your behalf to keep and manage your crypto assets. Stichting BLOX Custody’s sole purpose is to hold your crypto assets separately from BLOX’s assets.

Users who choose a Custody Account accept the User Agreement and this Custody and Administration Agreement.

There are risks associated with the custody and management of your crypto assets by Stichting BLOX Custody. For more information about these risks, you should carefully review the User Agreement, this Custody and Administration Agreement and the risk disclaimer.

1.2. Custody and Administration agreement

This Custody and Administration Agreement and all other documents referenced or incorporated herein form a legally binding contract between you, as User of the Custody Account, BLOX and the Stichting BLOX Custody.

By accepting the Custody and Administration Agreement and using the Custody Account, you enter into a Custody and Administration Agreement with BLOX and the Stichting BLOX Custody. As a result, you agree that your current and future crypto assets will be held and managed on behalf of BLOX by Stichting BLOX Custody.

By giving your consent you are deemed to have read, understood and agreed to this Custody and Administration Agreement, in addition to the User Agreement. This Custody and Administration Agreement forms an integral part of the User Agreement associated with your Custody Account.

Unless otherwise stated, the definitions in this Custody and Administration Agreement have the same meaning as in the User Agreement. In the event of any conflict between the Custody and Administration Agreement and the User Agreement regarding the custody and management of your Crypto Assets, the terms of this Custody and Administration Agreement shall prevail.

2. Use of the Safekeeping and Management Service

BLOX reserves at all times the right to suspend and terminate access to the Custody Account in accordance with Article 21 of the User Agreement.

3. The Custody and Management Service

3.1. Stichting BLOX Custody

Stichting BLOX Custody is responsible for the safekeeping and management of the crypto assets of users who choose a Custody Account. Stichting BLOX Custody is a party to this User Agreement solely for the purpose of asset segregation and the safeguarding of customer funds for users with a Custody Account.

3.2. Safekeeping and management policy of the Stichting BLOX Custody

Stichting Custody applies a custody and management policy that stipulates how Stichting BLOX Custody secures the crypto assets for Users with a Custody Account. Stichting BLOX Custody may engage third parties for the execution of safekeeping and management of these crypto assets in accordance with the policy established by BLOX.

At the User’s request, a summary of the custody and management policy will be shared with the User electronically. Crypto assets held in custody by Stichting BLOX Custody are registered in the name of Stichting BLOX Custody. For the sake of risk diversification, crypto assets may be held in multiple wallets in the name of Stichting BLOX Custody.

3.3. Wallets for the safekeeping and administration of crypto assets

3.3.1 Transfer to the Stichting BLOX Custody

BLOX acts as the counterparty to you in every transaction and will record the crypto assets you purchase or sell. At your instruction, BLOX will also forward the crypto assets you have purchased to Stichting BLOX Custody. In accordance with this article of this Custody and Administration Agreement and at BLOX’s instruction, Stichting BLOX Custody is responsible for the safekeeping and management of your crypto assets.

3.3.2. Measures of the Stichting BLOX Custody

Stichting BLOX Custody takes all reasonable measures to secure the crypto assets that BLOX holds on your behalf in the Custody Account. Third parties may also be engaged for this purpose. Inventory management is used for the secure storage of these crypto assets. Although BLOX and Stichting BLOX Custody take reasonable measures to secure the wallets, complete security cannot be guaranteed.

3.3.3. Use pooled wallets

For the storage of your crypto assets, BLOX may use pooled wallets. This means that the crypto assets are not stored separately in an individual wallet for each user with a Custody Account, but in collective wallets.

3.3.4. Offline and external storage of your crypto assets

For security and efficiency reasons, Stichting BLOX Custody Cryptoactiva may store and manage crypto assets offline or outsource them to third parties. This may result in delays in withdrawals. BLOX only entrusts your crypto assets to a third party when that third party holds a MiCAR licence to carry out the custody and management of crypto assets. BLOX informs you electronically about the outsourcing of the custody and management of your crypto assets when this is the case.

3.3.5. Risks in the custody and administration of your crypto assets

The User acknowledges that storing cryptoassets in a Custody Account with BLOX entails risks as described in the risk disclaimer. Although BLOX and Stichting BLOX Custody take all reasonable measures to secure the wallets, complete safety cannot be guaranteed.

Stichting BLOX Custody relies on third-party software protocols for the safekeeping and management of crypto assets that govern the operation of the supported crypto assets. BLOX and Stichting BLOX Custody have no influence over the functionality, security, availability, or continuity of these protocols. These protocols may (suddenly) change, which can affect value, function, transferability, or other characteristics. BLOX and Stichting BLOX Custody are not liable for any damage arising from this, including damage resulting from the termination of a protocol or an error in a protocol that leads to loss of assets.

3.3.6. Administration and provision of information

BLOX strives to ensure that the information made available in the BLOX Environment or in the Account (including, among other things, information regarding wallet balances) is always complete, correct, accurate and up to date. In the event of a discrepancy between the information provided on (or via) the BLOX Environment or the Account and the records of BLOX and/or the Stichting BLOX Custody, the records of BLOX and the Stichting BLOX Custody shall prevail. BLOX and the Stichting BLOX Custody will make the necessary efforts to correct any discrepancies as soon as possible.

3.4. Liability

Stichting BLOX Custody cannot be held liable if the crypto assets held by Stichting BLOX Custody cannot be paid out as a result of force majeure. Stichting BLOX Custody reserves the right, in the event of a shortfall in crypto assets due to force majeure, to make arrangements for the beneficiaries. This may, for example, involve distributing the remaining funds or crypto assets pro rata among the beneficiaries.

BLOX is liable for the loss of your crypto assets held and managed by Stichting BLOX Custody or for the loss of means of access to your crypto assets held and managed by Stichting BLOX Custody if there is a BLOX-attributable incident. This liability is limited to the market value of the lost crypto assets at the time of the incident.

3.5. No remuneration on your crypto assets

No compensation in the form of yield, interest or any other type of remuneration is calculated on or paid out for the balance of your crypto assets.

Crypto assets held by Stichting BLOX Custody under this Custody and Administration Agreement may yield certain benefits, including but not limited to airdrops and hard forks. The User has no right to such benefits, unless otherwise provided in this Custody and Administration Agreement or determined by BLOX (e.g. when BLOX decides to distribute proceeds from an airdrop or hard fork among users)

3.6. Costs for the custody and management service

Users with a Custody Account are subject to account fees under this Custody and Administration Agreement for the safekeeping and management of the crypto assets by Stichting BLOX Custody. These fees consist of monthly subscription fees. In addition, you pay a percentage of your vault value if the balance of your crypto assets as shown in the BLOX Environment represents a value of € 10,000 or more. These fees are calculated every day of the month at midnight and are charged pro rata at the end of the month for the preceding month. You therefore only pay these fees on the vault value for the days during the past month on which you had a value of € 10,000 or more in your BLOX Environment and used a Custody Account.

Users with a Custody Account receive a monthly email alert and a notification in the BLOX Environment stating the amount of the account fees for the Custody Account.

These account fees are debited from the E-Money Balance on the fifth day of each month. Users must ensure there is sufficient E-Money Balance to pay the fees. If the E-Money Balance is insufficient, BLOX is authorized to sell the User’s crypto assets so that there is enough E-Money Balance to cover the fees. By accepting this Custody and Administration Agreement, you grant BLOX an authorization to sell your crypto assets up to the amount necessary to cover the monthly fees of your Custody Account if the E-Money Balance is insufficient. You will not pay any transaction fees on these sale transaction(s). When selling your crypto assets, BLOX will always first sell a portion of your crypto assets with the highest euro value up to the amount BLOX is authorized to sell on your behalf. If that is not sufficient, BLOX will then sell the next-highest-value crypto assets.

If you only have a Custody Account for part of the month, you pay the account fees pro rata. You only pay the account fees for the days that you have used a Custody Account during the past month

The current rates are displayed in the BLOX environment and can be found in the pricing policy. BLOX is authorized to adjust these rates.

3.7. Termination of the custody and administration service

The custody and administration service is offered without a notice period. You can sell any crypto-assets that are held and managed through this service by Stichting BLOX Custody at any time. You also have the option to change your account type to an Earn Account or to terminate the User Agreement. Both actions automatically result in the termination of this Custody and Administration agreement with BLOX and Stichting BLOX Custody and the offering of the custody and administration service.