DUELYST VANGUARD

STAKING TERMS AND CONDITIONS

Written on: 05 January 2024

THIS DOCUMENT INCLUDES VITAL DETAILS ABOUT RISKS, YOUR RIGHTS AND RESPONSIBILITIES, AND THE TERMS, LIMITATIONS, AND EXCLUSIONS THAT COULD AFFECT YOUR RIGHTS, INCLUDING HOW DISPUTES ARE HANDLED.

1. DEFINITIONS

1.1 For the purposes of these Terms, the following definitions apply:

"Breakdown" refers to the distribution of Net Network Rewards among Vanguard NFTs Holders, xDUEL holders, and the Pool Owner. Typically, a Breakdown is expressed as a percentage.
"Cooldown Period" signifies a specified duration before certain actions may be performed within a Staking Pool.
"Web3 Wallet" denotes an Ethereum wallet facilitating storage, trading, and use of cryptocurrencies.
"xDUEL" or "xDUEL Token" represents the non-transferable utility Token native to the Duelyst Vanguard ecosystem.
"Emissions Schedule" outlines the emissions schedule governing Duelyst Token emissions within the Duelyst Vanguard ecosystem.
"Duelyst Vanguard", "we", "us," or "our" denotes the Duelyst Vanguard, a DAO (Decentralized Autonomous Organization) for Duelyst enthusiasts, along with its partners and affiliates.
"Genesis Vanguard NFT" signifies the sole Vanguard NFTs owned by a Pool Owner within a Staking Pool.
"Lock Period" refers to any duration during which xDUEL is restricted from Redemption, as detailed in section 9.
"Pool Contract" denotes a Smart Contract executed by a Web3 Wallet on the blockchain, pertaining to the staking of xDUEL or Vanguard NFTs within the Duelyst Vanguard.
"Pool Owner" refers to a Vanguard NFTs Owner responsible for creating and overseeing a Staking Pool.
"Redeem" or "Redemption" means the process of burning xDUEL or DUEL in your possession at the end of a Lock Period, in exchange for an equivalent amount of DUEL or xDUEL minus any Redemption Penalties.
"Redemption Interface" refers to any software or application facilitating the Redemption process.
"Redemption Penalty" signifies the penalty imposed programmatically on a user redeeming xDUEL within a Lock Period.
"Redemption Request Date" refers to the date on which a user submits a request to redeem xDUEL for DUEL.
"Reward Threshold" denotes the minimum amount of xDUEL required to stake in a Staking Pool to elevate the Reward Multiplier for the Vanguard NFTs within that Pool.
"Vanguard NFTs" signifies the unique non-fungible Token essential for governing and participating in Duelyst Token emissions.
"Vanguard NFTs Owner" refers to the owner of a Vanguard NFTs who has agreed to the Terms and Conditions.
"Smart Contract" signifies a self-executing digital contract on a blockchain platform.
"Staking" or "to Stake" refers to committing xDUEL and/or Vanguard NFT(s) from your possession to a Pool Contract on the blockchain. All Vanguard NFT(s) remain in your wallet, while xDUEL is held by the Pool Contract for the stake duration.
"Staking Pool" or "Pool" refers to a collection of Vanguard NFTs and xDUEL staked to a Pool Contract to achieve a Reward Tier for the Vanguard NFTs within that collection.
"Staking Terms" refers to these Staking Terms and Conditions, subject to periodic revisions through DAO voting.
"Token" signifies any digital representation of value, whether or not tradable, transferable, or used for payments or investments.
"Unstake" refers to withdrawing xDUEL from a Staking Pool Contract back to your custody.
"DUEL" or "DUEL Token" denotes the tradeable and transferable gas fee Token of the Duelyst Vanguard, operating on both Arbitrum (L2) and the Duelyst Vanguard Game (L3).
"Duelyst Community" refers to the Duelyst Vanguard Game, inclusive of licenses, protocols, processes, services, software, Smart Contracts, and Tokens (each, a "Component").

"Duelyst Vanguard" refers to the Duelyst Vanguard DAO responsible for overseeing the Duelyst Vanguard Game. The terms"include" or "including" (or any similar term) should not be interpreted as imposing any restrictions, and general terms introduced by the word "other" (or any similar term) should not be narrowly interpreted because they are preceded by words indicating a specific category of actions, issues, or objects.

2. INTRODUCTION

2.1 These Staking Terms set out the terms and conditions by which you may voluntarily stake xDUEL Tokens and Vanguard NFTs on the Duelyst Vanguard. They form an integral part of the Terms of Use agreement that governs your use of the Website and our Services.

2.2 It is crucial that you read these Staking Terms carefully, along with the Terms of Use. Together they constitute a binding legal agreement between you and the Duelyst Vanguard. If you do not agree with any part of these Staking Terms or the Terms of Use, you should not participate in Staking.

2.3 By engaging in Staking on the Duelyst Vanguard Monolith App, you acknowledge that you have read, understood and agree to be bound by these Staking Terms, as well as the Terms of Use, including any future modifications that may be made. To the extent you own a Vanguard NFTs, you further acknowledge and and agree that you have read, understood and agree to be bound by the Duelyst Vanguard Agreement.

2.4 The Duelyst Vanguard reserves the right to update or modify these Staking Terms at any time on the conditions set out in the Terms of Use. Your continued Staking of xDUEL Tokens and/or Vanguard NFTs following any such changes constitutes your acceptance of any updated, modified or removed terms.

2.5 Unless otherwise set out below, all capitalised terms, names and definitions contained within these Staking Terms shall be understood and interpreted in accordance with the definitions set forth in the Duelyst Vanguard's Terms of Use. If a definition or term is defined both in these Staking Terms and in the Terms of Use, the meaning defined in the Staking Terms shall prevail insofar as the definition or term applies to Staking.

3. PARTICIPATION ELIGIBILITY

3.1 In order to participate in Staking xDUEL or Vanguard NFTs within the DUEL Ecosystem, you must meet the eligibility criteria outlined in the Terms of Use, including provisions related to the exclusion of U.S. Persons, Sanctioned Persons, and the Risk Assessment Framework. Additionally, you must fulfill the following requirements:

(a) You must consent to and agree with these Staking Terms, and commit to reviewing them regularly to stay informed of any updates or revisions.

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

(c) You must hold legal ownership of your xDUEL and Vanguard NFTs and possess the right to utilize and manage them as you deem appropriate.

(d) You must have an active and valid Web3 Wallet capable of supporting Staking, and must comply with the conditions outlined in Section 4 of these Staking Terms.

(e) You must agree to adhere to all laws, regulations, and guidelines applicable to you concerning Token Staking, including obligations for taxes and necessary reporting.

(f) You must acknowledge and agree that you possess adequate understanding of digital assets, blockchain technology, Staking, and the DUEL Ecosystem to comprehend the risks associated with Staking xDUEL and Vanguard NFTs, including those risks detailed in Section 10 of these Staking Terms.

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

4. CONNECTING A Web3 Wallet

4.1 To stake xDUEL or Vanguard NFTs with the Duelyst Vanguard, you must link a Web3 Wallet capable of supporting these Tokens. We do not access or hold custody of your Web3 Wallets. You are solely responsible for safeguarding and managing your Web3 Wallets, including any private keys. We are unable to assist with accessing or recovering lost private keys or seed phrases, which could lead to permanent loss of staked xDUEL or Vanguard NFTs, for which we are not liable.

4.2 Staking xDUEL and Vanguard NFTs with the Duelyst Vanguard occurs within your connected Web3 Wallet. You are solely responsible for verifying all staking transactions from your Web3 Wallet and ensuring their secure and accurate execution. The Duelyst Vanguard assumes no liability for disputes or losses arising from these transactions.

4.3 By staking xDUEL or Vanguard NFTs with the Duelyst Vanguard, you acknowledge that you are interacting directly with a Smart Contract and that we do not provide staking services on your behalf. You further acknowledge:

(a) We do not and will not hold custody of any Tokens for you, including xDUEL or DUEL staked via Smart Contracts.

(b) We do not and will not provide safekeeping services for any Tokens on your behalf. It is your responsibility to securely store any Tokens in your Web3 Wallet, including DUEL, xDUEL, or Vanguard NFTs.

5. OPERATION OF STAKING POOLS

5.1 From the effective date of these Terms, all staked Tokens in Duelyst Vanguard must be done through a Staking Pool Contract managed by a Pool Owner who has accepted the Duelyst Vanguard Agreement. You can find this agreement on the Duelyst website. The Duelyst Vanguard does not create, host, operate, or own any Staking Pools and is not liable for their performance.

5.2 If you own a Vanguard NFT and wish to create a Staking Pool, you must adhere to these Terms and any updated procedures or policies. You must also comply with relevant laws, especially those regarding the distribution of Tokens from your Staking Pool. The Duelyst Vanguard disclaims any responsibility for Staking Pools created by Vanguard NFT owners.

5.3 Before the effective date of these terms, no Staking Pools existed. If you staked xDUEL or Vanguard NFTs before this date, you did not stake to a Staking Pool. You may continue your independent stake or join a Staking Pool, but new stakes must go to a Staking Pool Contract.

5.4 If you choose to stake to a Staking Pool, you must select which pool to join. A list of available pools may be found on our website at Duelyst Website or other URLs as updated.

5.5 The Duelyst Vanguard will strive to provide a list of compliant Staking Pools, but this information is "as is" without guarantees on accuracy or reliability. We do not offer financial or investment advice. Performance of Staking Pools can vary and past results are not indicative of future performance. Conduct your own research and consult advisors as needed.

5.6 All Staking Pools follow these common parameters, subject to change:

(a) Pool Owners set the Breakdown of each Staking Pool, coded into the contract. We are not responsible for its fairness or accuracy.

(b) Breakdown limits for Net Network Rewards are currently:

(i) Vanguard NFTs: up to 95%

(ii) Staked xDUEL: up to 85%

(iii) Pool Owners: up to 10%

We reserve the right to adjust these limits. Check our website for updates.

(c) Pool Owners are responsible for gas fees related to their Vanguard NFTs' operation. Ensure your Web3 Wallet has enough Arbitrum ETH for these fees. Insufficient gas fees can impact reward distributions, and we are not liable for this.

(d) Pool Owners can manage all Vanguard NFTs in their pool and may delegate this to another Web3 Wallet. Communication with the Pool Owner about Vanguard NFT operations is your responsibility.

(e) The Duelyst Vanguard limits the total amount of staked xDUEL, based on Vanguard NFTs in circulation. Once the cap is reached, no additional xDUEL can be staked until more Vanguard NFTs are available. Check our website for current caps.

(f) Staking Pool Contracts have a cap on the number of Vanguard NFTs and the amount of xDUEL. If reached, no further staking is allowed until the number of stakers is below the cap. Check our website for current caps.

(g) Staking Pool Contracts may be updated as decided by the Duelyst Community or Duelyst Vanguard.

5.7 By agreeing to these terms, you understand that staking xDUEL or Vanguard NFTs to a Staking Pool does not guarantee any payments or rewards, only a potential share of Net Network Rewards collected by a Participating Vanguard NFT.

5.8 THE DUELYST VANGUARD DOES NOT GUARANTEE THAT A STAKING POOL YOU JOIN WILL OPERATE AS YOU INTEND OR MAKE ANY REPRESENTATION ABOUT THE PERFORMANCE OF ANY STAKING POOL. THE BREAKDOWN OF REWARDS AND THE OPERATION OF A STAKING POOL IS A MATTER FOR THE POOL OWNER AND NOT THE Duelyst Vanguard. THE PARAMETERS OUTLINED ABOVE ARE DETERMINED BY THE UNDERLYING SMART CONTRACTS AND THE Duelyst Vanguard AND MAY FLUCTUATE OR OPERATE UNPREDICTABLY, INCLUDING BECAUSE THE UNDERLYING SERVICES ARE PERFORMED IMPROPERLY.

6. TIME COOLDOWNS APPLICABLE TO STAKING POOLS

6.1 To ensure efficient operation of Staking Pools, specific Cooldown Periods are implemented for all Staking Pool Contracts on the Duelyst Vanguard. These Cooldown Periods are coded into each Staking Pool Contract. Review them carefully to understand their implications. It is your responsibility to stay informed about Staking Pool operations:

(a) Pool Owners are prohibited from initiating more than one change to the Breakdown of Net Network Rewards for a Staking Pool within a fourteen (14) day period. If a change is made, it will take fourteen (14) days to take effect, during which Net Network Rewards will be distributed based on the previous Breakdown.

(b) If you stake xDUEL or Vanguard NFTs to a Staking Pool, you can request to Unstake at any time. However, the unstaked xDUEL or Vanguard NFTs will only be released after a seven (7) day cooldown period (or sixty (60) days for Vanguard Genesis Vanguard NFTNFTs). During this period, your xDUEL and Vanguard NFTs remain staked. Once expired, you can claim and continue to stake the unstaked assets.

6.2 The current Cooldown Periods for Staking Pool Contracts may be subject to change in the future as determined by the Duelyst Community or the Duelyst Vanguard.

7. TOKEN EMISSIONS

7.1 Duelyst Vanguard issues token emissions to xDUEL token and Vanguard NFT stakers, as well as individuals participating in the DAO governance of the ecosystem. Emissions are based on participation in governance and staking activities.

7.2 By agreeing to these Staking Terms, you acknowledge:

(a) Token emissions to xDUEL token and Vanguard NFT stakers and DAO participants are automated under Duelyst Vanguard Game Smart Contracts.

(b) Automated distribution of token emissions carries inherent risks, smart contract errors, network failures, or unforeseen exploits, which may affect distribution outcomes. Additional risks are detailed in Section 10.

(c) We do not guarantee the availability or amount of token emissions. The ability of Vanguard NFTs and Staking Pools to receive token emissions depends on various factors, including contract reliability, Game performance, Vanguard NFT operators, network conditions, ecosystem functioning, and more.

(d) The Duelyst Vanguard bears no responsibility for any losses, damages, or inconveniences resulting from delayed, inadequate, or erroneous token emissions distribution, regardless of the cause. You indemnify and hold harmless the Duelyst Vanguard against claims related to non-receipt or insufficiency of token emissions.

(e) Penalties affecting token emissions, if any, are beyond the Duelyst Vanguard DAO's control, and you assume all associated risks.

(f) By accepting these Staking Terms, you acknowledge the inherent risks and limitations of token emissions distribution by the Duelyst Vanguard. The Duelyst Vanguard disclaims responsibility for such risks and advises conducting thorough due diligence before engaging in staking.

7.3 THE DUELYST VANGUARD DOES NOT GUARANTEE THAT YOU WILL RECEIVE TOKEN EMISSIONS OR ANY OTHER REWARDS. EMISSIONS ARE DETERMINED BY THE UNDERLYING SMART CONTRACTS AND THE DUELYST VANGUARD AND MAY FLUCTUATE OR OPERATE UNPREDICTABLY, INCLUDING BECAUSE THE UNDERLYING SERVICES GENERATING EMISSIONS ARE PERFORMED IMPROPERLY.

8. EFFECT OF STAKING POOLS ON VANGUARD NFTs PARTICIPATION

8.1 The Referee Smart Contract determines the multiplier Tier that any given Vanguard NFT will collect a Net Tier Rewards. At present, the Referee Contract makes this determination with reference to the following criteria:

(a) If the Vanguard NFT is staked to a Staking Pool which contains fewer than 10,000 xDUEL, the Referee will assign a "Bronze" Reward Tier to the Vanguard NFT, and it will have a one percent (1%) probability of receiving rewards. Bronze Tier is the default Tier for all Vanguard NFTs.

(b) If the Vanguard NFT is staked to a Staking Pool which contains between 10,000 and 99,999 xDUEL, the Referee will assign a "Silver" Reward Tier to the Vanguard NFT, and it will have a one point five percent (1.5%) probability of receiving rewards.

(c) If the Vanguard NFT is staked to a Staking Pool which contains between 100,000 and 499,999 xDUEL, the Referee will assign a "Gold" Reward Tier to the Vanguard NFT, and it will have a two percent (2%) probability of receiving rewards.

(d) If the Vanguard NFT is staked to a Staking Pool which contains between 500,000 and 5,499,999 xDUEL, the Referee will assign a "Platinum" Reward Tier to the Vanguard NFT, and it will have a three percent (3%) probability of receiving rewards.

(e) If the Vanguard NFT is staked to a Staking Pool which contains 5,500,000 xDUEL or more, the Referee will assign a "Diamond" Reward Tier to the Vanguard NFT, and it will have a six percent (6%) probability of receiving rewards.

All quantities above are expressed in whole Tokens for ease of understanding only and expressly include any portion of a Token up to eighteen (18) decimal places.

8.2 We reserve the right to upgrade or amend the Reward Tiers in future, as determined by the Duelyst Community or the Duelyst Vanguard DAO acting on its behalf.

9. REDEMPTION OF DUEL TOKENS

9.1 All xDUEL Tokens earned on the Duelyst Vanguard are subject to redemption according to the process outlined in this Section 8. Please carefully review this section to understand the implications of redeeming xDUEL from the Duelyst Vanguard.

9.2 If you hold xDUEL Tokens, you have the option to redeem them for DUEL Tokens during designated Lock Periods as follows: 15 days, 45 days, and 90 days after the Redemption Request Date. To do so, you must submit a Redemption request and cover any associated gas costs. It is important to note that xDUEL Tokens cannot be immediately redeemed for DUEL Tokens. During each Lock Period, the following conditions apply:

(a) 15 Day Redemption: Redeeming xDUEL for DUEL fifteen (15) days after the Redemption request will yield 0.25 DUEL for every 1 xDUEL redeemed. The DUEL Tokens you are entitled to will be minted at the end of the Lock Period and must be claimed by you. Any remaining xDUEL will be subject to a Redemption Penalty and burnt.

(b) 45 Day Redemption: Redeeming xDUEL for DUEL forty five (45) days after the Redemption request will yield 0.625 DUEL for every 1 xDUEL redeemed. The DUEL Tokens you are entitled to will be minted at the end of the Lock Period and must be claimed by you. Any remaining xDUEL will be subject to a Redemption Penalty and burnt.

(c) 90 Day Redemption: Redeeming xDUEL for DUEL ninety (90) days after the Redemption request will yield 1 DUEL for every 1 xDUEL redeemed. The DUEL Tokens you are entitled to will be minted at the end of the Lock Period and must be claimed by you. This redemption will not be subject to a Redemption Penalty.

9.3 If you hold DUEL Tokens, you have the option to immediately redeem them for xDUEL at a 1:1 ratio without any Redemption Penalty or other restrictions, subject to availability. The DUEL Tokens you are entitled to will be minted immediately and must be claimed by you.

9.4 We reserve the right to impose limits on redemptions, modify Redemption Penalties, or temporarily suspend redemptions based on request frequency, volume, or other considerations we deem necessary in the best interests of the Duelyst Ecosystem.

9.5 To initiate a redemption request, you can submit a request through the Redemption Interface (The Monolith App) or interact directly with the underlying Smart Contract on the blockchain. While we strive to maintain continuous access to the Redemption Interface, downtime may occur due to technical issues, software bugs, or external disruptions. The Duelyst Vanguard does not guarantee uninterrupted access to the Redemption Interface and shall not be liable for any losses resulting from downtime. All redemption requests are subject to the constraints of the underlying blockchains, including withdrawal queues, for which the Duelyst Vanguard bears no responsibility.

10. RISKS OF PARTICIPATING IN THE DUELYST VANGUARD

10.1 Participating in the Duelyst Vanguard DAO involves inherent risks. By staking xDUEL or Vanguard NFTs, you acknowledge and accept the following:

(a) The Duelyst Vanguard operates on smart contracts which are self-executing and based on experimental cryptographic technology. These contracts may have flaws, vulnerabilities, or be subject to exploitation, which could impact the functionality and value of staked xDUEL or Vanguard NFTs.

(b) The Duelyst Vanguard aims to be decentralized, but currently retains control over certain multisignature wallets. This control allows for upgrades and transactions which may affect the Network. The gradual decentralization of the Duelyst Vanguard introduces risks and may lead to unintended consequences.

(c) Transactions on the Duelyst Vanguard may incur no-reward emission conditions that could be subject to interpretation or applied unfairly.

(d) The Duelyst Vanguard's success relies on user engagement. There is no guarantee of sufficient user participation to sustain the Duelyst Game as intended, potentially impacting the value and utility of staked xDUEL or Vanguard NFTs.

(f) The Smart Contracts could be exploited for illegal activities, adversely affecting its development and the value of Tokens within the ecosystem.

(g) Cybersecurity threats such as attacks on the ecosystem, associated websites, or third-party integrations could result in loss of Tokens or disrupt ecosystem operations.

(h) Regulatory developments could impact the legal status and operation of the Duelyst Vanguard and its Tokens, potentially affecting their value and utility.

(i) Blockchain technology and cryptographic tokens are new and evolving, carrying unforeseen risks that may manifest as the Network develops.

10.2 The risks outlined above are provided for informational purposes. Your participation in the Duelyst Vanguard DAO is at your own risk. The Duelyst Vanguard disclaims any liability for damages arising from your use of this information or participation in the Duelyst Vanguard.

11. TERMS OF USE INCORPORATION

11.1 By agreeing to these Staking Terms, you acknowledge that all Terms of Use, including agreements, disclaimers, and indemnifications, apply to these Staking Terms. Review the Terms of Use, including any Arbitration Agreement, carefully.

12. ACKNOWLEDGEMENTS AND DISCLAIMERS

12.1 By accepting these Staking Terms, you acknowledge:

(a) These Staking Terms do not constitute financial, investment, legal, or tax advice. Staking involves risks and requires your own due diligence. Consult appropriate advisors before staking.

(b) The Duelyst Vanguard assumes no responsibility for failure to transfer rewards or for losses due to incorrect wallet addresses.

(c) The Duelyst Vanguard does not guarantee uninterrupted or error-free operation, nor protection against third-party disruptions or unauthorized access.

(d) Staking xDUEL or Vanguard NFTs does not confer equity interest in the Duelyst Vanguard or any entity.

(e) To the fullest extent permitted by law, the Duelyst Vanguard and its affiliates, team, founders, and employees are not liable for claims or damages arising from staking.

13. SEVERABILITY

13.1 If any provision of these Staking Terms is invalid or unenforceable, the remaining provisions remain valid and enforceable to the fullest extent permitted by law.

14. CONTACT INFORMATION

14.1 For any questions about these Staking Terms or other inquiries, please reach out to us at: info@duelyst.xyz