Disclaimer
AP Protocol

v-1, 28.08.2024

Please read this disclaimer ("Disclaimer") carefully before accessing, interacting with, or using the set of blockchain-based smart contracts that together constitute the "Aqua Patina Protocol" or the "AP Protocol". This Disclaimer relates to the use of the AP Protocol. The use of services offered by Avado AG is distinctly separate from the use of the AP Protocol and is governed by the Terms of Service at aquapatina.com/blog/terms-of-service .

The AP Protocol is a fully on-chain, decentralized and non-custodial restaking protocol. The AP Protocol enables its users ("you" or "Protocol User(s)") (i) to restake natively staked Ether (ETH) with node operators ("Node Operator(s)" or "Validator(s)") on the one hand, and operators of actively validated services ("AVS(s)") on the other hand, and (ii) to secure the AP Protocol through governance decisions by voting with non-transferable AP Points ("AP Points" and "AP Points Holder(s)"). For a complete overview of the technical functionalities and features of the AP Protocol, please refer to the documentation at docs.aquapatina.com.

ALL FUNCTIONALITIES OF THE AP PROTOCOL ARE OF A PURELY TECHNICAL NATURE, ARE NOT ASSOCIATED WITH, AND DO NOT CONVEY ANY LEGAL CLAIM TOWARD ANY ENTITY, INDIVIDUAL, OR GROUP OF INDIVIDUALS, INCLUDING BUT NOT LIMITED TO AVADO AG, ANY DIRECTOR, EMPLOYEE, AGENT, TEAM MEMBER, AP POINT HOLDER OR ANY OTHER THIRD-PARTY.

WHILE ACCESS TO THE AP PROTOCOL IS PERMISSIONLESS, YOU SHOULD NOT ACCESS THE AP PROTOCOL FROM AN EXCLUDED JURISDICTION (AS DEFINED UNDER PROVISION ‎3.2 OF THE TERMS OF SERVICE AT aquapatina.com/blog/terms-of-service. DO NOT ATTEMPT TO ACCESS OR USE THE AP PROTOCOL IF YOU ARE IN ANY WAY RESTRICTED FROM ACCESSING OR USING. DO NOT USE A VPN OR ANY SIMILAR METHOD, DEVICE, OR TECHNOLOGY TO CIRCUMVENT ANY RESTRICTION.

1. No legal or factual relationship

The AP Protocol has been deployed and runs in a non-custodial and decentralized manner on the Ethereum network. Neither Avado AG nor any AP Point Holder, Validator, AVS or any other third-party is responsible for the operation, running, or functioning of the AP Protocol and/or any of the interactions, collaborations, or factual relationships between Protocol Users and the smart contracts of the AP Protocol, between Protocol Users themselves, or between Protocol Users and Validators and/or AVSs. Any use of the terms 'we', 'our' etc., is for semantic purposes only and not to be understood as an assumption of ownership or control of the AP Protocol.

The Protocol User understands, acknowledges, and agrees that:

• No relevant control / no relevant permissioned functions: Avado AG has neither access to nor any other possibility to control and/or influence any transactions, deposits, and/or allocations made by the Protocol Users using the AP Protocol. Any funds potentially placed with the AP Protocol are in the sole control of the respective smart contracts and cannot be accessed by Avado AG. There is no operational dependency of the AP Protocol on Avado AG.
• Third Party Services and Materials: The AP Protocol may integrate and rely on the functioning of third-party services and technologies, such as the Ethereum network, the Eigenlayer protocol, third-party digital wallets, and other external protocols (collectively, "Third Party Services"), as well as third party content, data, information, applications, materials, or may provide links to third-party websites (collectively, "Third Party Materials"). By using the AP Protocol, you acknowledge that the functionality, reliability and compatibility of Third Party Services and Third Party Materials may be essential to the functioning of the AP Protocol and you assume any and all responsibility for the use of such Third Party Services and Third Party Materials.
• Restaking rewards: By using the AP Protocol and subject to the programmatic logic of the AP Protocol and any integrated Third Party Services (such as the Eigenlayer protocol or the Ethereum staking mechanism), Protocol Users may earn network fees and token rewards from Third Party Services through interactions such as participating in the network consensus mechanism. Any such rewards are a direct compensation for services provided by the Protocol User. Avado AG has no control over any such rewards (including the amount of such rewards paid to Protocol Users) and such rewards do not originate from / are not intermediated or forwarded by Avado AG.
• Liquid restaking token: By restaking natively staked ETH with a Validator on the AP Protocol, the Protocol User receives a liquid restaking token representing their restaked position with the AP Protocol (such token is the "apETH"). The underlying restaking positions earn restaking rewards which are reflected in the price of apETH. Unstaking is subject to a certain minimum duration between the initiation of the applicable transaction by the Protocol User and the completion of such transaction, depending on the EigenLayer unstaking requirements and on each AVS.
• AP Protocol and governance: Certain functionalities of the AP Protocol may be updated through technical means such as on-chain governance. You may, at any time, opt out of any updates or changes by ceasing to use the AP Protocol. While Avado AG may provide and monitor a forum for the information exchange of governance participants, Avado AG does not control these persons or any decisions taken by them. In your use of the AP Protocol, you may be rewarded with certain reputation indicators, points, or other intangible rewards which allow you to participate in the governance mechanism. Avado AG does not guarantee that you will receive or be eligible to receive any minimum amount of AP Points. Such AP Points are non-transferable (and you may not attempt to transfer or sell such AP Points), and are not, and may never convert to, accrue to, be used as a basis to calculate, or become any token of the AP Protocol. You will not be distributed any tokens or other assets for holding such AP Points. Such AP Points do not allow you to vote on the inflow of tokens or assets to yourself. Such AP Points are mere virtual items with no cash or monetary value designed to allow interested persons to take part in the governance of the AP Protocol.
• No partnership: Protocol Users do not agree to and do not state their will to enter into or create a simple partnership, joint venture, or similar sort of legal or factual partnership by accessing or using the AP Protocol, by holding the AP points, by participating in the AP Protocol governance and/or interacting with the AP Protocol in any other way.
• Release of claims: By accessing or using the AP Protocol, you hereby, to the maximum extent permissible under applicable law, release all present and future claims against Avado AG, and against any individual or group of project team members, contributors, or AP Points Holders related to your use of the AP Protocol, the AP Points, the AP Protocol governance mechanism, and any other facet of the AP Protocol.
• Open source license: The AP Protocol has been developed and published under the MIT open-source license, which forms an integral part of this Disclaimer.

2. No liability

AVADO AG HAS NOT AND WILL NOT ENTER INTO ANY LEGAL OR FACTUAL RELATIONSHIP WITH ANY PROTOCOL USER OF THE AP PROTOCOL. AVADO AG IS, THEREFORE, NOT LIABLE TO ANY PROTOCOL USER FOR DAMAGES, INCLUDING ANY GENERAL, SPECIAL, INCIDENTAL, OR CONSEQUENTIAL DAMAGES ARISING OUT OF THE USE, IN CONNECTION WITH THE USE OR INABILITY TO USE THE AP PROTOCOL (INCLUDING BUT NOT LIMITED TO LOSS OF ETH, AP POINTS, OR ANY OTHER DIGITAL ASSET OR TOKEN, GOVERNANCE DECISIONS TAKEN BY AP POINTS HOLDERS, LOSS OF DATA, BUSINESS INTERRUPTION, DATA BEING RENDERED INACCURATE OR OTHER LOSSES SUSTAINED BY A PROTOCOL USER OR THIRD-PARTIES RELATED TO THE AP PROTOCOL AND/OR ANY ACTIVITY OF A FRONTEND OPERATOR OR A FAILURE OF THE AP PROTOCOL TO OPERATE WITH ANY OTHER SOFTWARE) OR ANY THIRD PARTY SERVICES OR THIRD PARTY MATERIAL.

3. Assumption of risks

The Protocol User understands and acknowledges that the AP Protocol, in particular, and smart contracts, blockchains, cryptographic tokens, and related systems and software, in general, are nascent, experimental, inherently risky, and subject to change. In order to understand the risks associated with using the AP Protocol, as well as any other blockchain-based technology, you are strongly encouraged to get acquainted with the underlying protocols as much as possible.

The following list contains some of the risks associated with the use of the AP Protocol, without being exhaustive:

• THE AP PROTOCOL IS DEPLOYED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND NONINFRINGEMENT.
• THE AP PROTOCOL IS HIGHLY EXPERIMENTAL, AND ANY DIGITAL ASSETS OR TOKENS (INCLUDING, BUT NOT LIMITED TO, ETH AND THE AP POINTS) USED IN CONNECTION WITH THE AP PROTOCOL ARE AT RISK OF BEING LOST INDEFINITELY, WITHOUT ANY KIND OF CONSIDERATION.
• Although the AP Protocol has been security-audited prior to its deployment, THERE IS A HIGH RISK THAT THE AP PROTOCOL MAY CONTAIN BUGS, DEFECTS, OR ERRORS THAT MATERIALLY AND ADVERSELY AFFECT THE USE, FUNCTIONALITY, OR PERFORMANCE OF THE AP PROTOCOL OR ANY OTHER PROTOCOL, APPLICATION, OR SERVICE CONTAINING OR USED IN CONNECTION WITH THE AP PROTOCOL OR THAT THE AP PROTOCOL MAY BE HACKED BY THIRD-PARTIES, POTENTIALLY LEADING TO ADVERSE EFFECTS ON RESTAKED ASSETS OR THE INDEFINITE LOSS OF ANY DIGITAL ASSETS OR TOKENS PLACED WITH THE AP PROTOCOL.
• The AP Protocol is built on the Ethereum network and may make use of other DeFi applications or services, including but not limited to services of Validators and AVSs. As such, the proper functioning of the AP Protocol is dependent on the proper functioning of the underlying and/or incorporated protocols.
• Any transaction done on the AP Protocol requires the Protocol User to pay gas fees on the Ethereum network (or other networks). The cost of transactions on the Ethereum network (or related blockchain networks) is variable and may increase or decrease at any time causing impact to any activities taking place on the Ethereum network.
• Placing transactions, including restaking natively staked Ether, on the AP Protocol may carry substantial financial risks. Tokens, and any transactions done with tokens, are by nature highly experimental, risky, complex and challenging to understand, and volatile. Transactions entered in connection with the AP Protocol are irreversible, final and there are no refunds. Any Protocol User understands, acknowledges, and agrees that any transactions entered in connection with the  AP Protocol are unsolicited and solely initiated, and their outcome is solely born by the Protocol User. The risk of loss in transactions with tokens in connection with the AP Protocol may be substantial, up to a complete loss. Any Protocol User should, therefore, carefully consider whether entering into such transactions is suitable in light of their circumstances, financial background, and financial resources. Any Protocol User entering into a transaction in connection with the AP Protocol represents and warrants that they have been, are, and will be solely responsible for marking their independent appraisal, investigations, and research into the risks of any given transaction and that they have sufficient knowledge, market sophistication, access and use of professional advice, and overall experience to make a thorough evaluation of the merits and risks involved. Nobody is responsible or liable for any financial loss or injury sustained from entering into any transactions in connection with the AP Protocol.
• There are a number of risks associated with holding cryptographic tokens, using blockchain technology, and (re)staking tokens. Such risks include but are not limited to, risk of losing access to tokens due to slashing, loss of private key(s), custodial error or purchaser error, risk of blockchain attacks, risk of hacking and security weaknesses.
• The Protocol User understands, acknowledges, and agrees that the AP Points may provide certain utility and functionality in connection with the AP Protocol, under technical, legal and other limitations as may apply, and that the AP Points (i) do not confer or represent any right of any form, including but not limited to any equity or ownership, voting, distribution, redemption, liquidation, intellectual property, participation, or any sort of right to receive future revenues, profit shares, or similar, (ii) do not create or confer any enforceable contractual or other legal obligations against any person or entity (including, but not limited to, Avado AG, any individual or group of project team members, contributors, or AP Points Holders, and similar persons associated in any way with the AP Protocol, (iii) are not any kind of loan, investment, or other form of participation in Avado AG or the AP Protocol; and (iv) are non-transferable.
• The Protocol User understands, acknowledges, and agrees that the apETH represent their restaked position with the AP Protocol and that apETH (i) do not confer or represent any right of any form, including but not limited to any equity or ownership, voting, distribution, redemption, liquidation, intellectual property, participation, or any sort of right to receive future revenues, profit shares, or similar, (ii) do not create or confer any enforceable contractual or other legal obligations against any person or entity (including, but not limited to, Avado AG, any individual or group of project team members, contributors, or AP Points Holders, and similar persons associated in any way with the AP Protocol, and (iii) are not any kind of loan, investment, or other form of participation in Avado AG or the AP Protocol.
• The AP Protocol is non-custodial. The Protocol User is solely responsible for implementing reasonable measures to secure access to the wallet solution (i.e., private key(s) or other credentials) used to interact with AP Protocol or restake natively staked Ether.
• The AP Protocol could be impacted by one or more regulatory inquiries or regulatory actions, which could impede or limit the availability of the AP Protocol and your continued use of the AP Protocol. The AP Protocol has not been reviewed, registered, approved, or licensed by any regulatory agency or authority.
• Further risks associated with the use of the AP Protocol may include but are not limited to, risks of software weakness (of the underlying blockchain infrastructure or any protocol or any other software), risks associated with uncertain laws and regulations, risk of abandonment, lack of success or business failure, speculation risk, risks associated with other applications, risks associated with markets for the cryptographic tokens, risk of losing access to cryptographic tokens due to loss of private key(s), custodial errors or errors of the Protocol User, risks of hacking, theft and vulnerabilities, risks of mining or validation attacks, risks of incompatible wallet services, risks of hard forks, risk of uninsured losses, risks arising from taxation, risks of an unfavorable fluctuation of currency value, risk of dissolution of the network, risk arising from lack of legal rights, risk associated with third-parties, jurisdiction related risks and/or any unanticipated risks. Any and all of these risks could disrupt the underlying technologies and result in a total loss of cryptographic assets, their market value, or any digital funds. The Protocol User is solely responsible for the safekeeping of the private key or other credentials associated with the blockchain address used to interact with the AP Protocol. ANY PROTOCOL USER THAT IS NOT COMFORTABLE ASSUMING ANY AND ALL RISKS RELATED TO THE ACCESS AND USE OF THE AP PROTOCOL OR ENGAGING IN TRANSACTIONS THAT RELY ON SMART CONTRACTS, DIGITAL ASSETS AND CRYPTOGRAPHIC TOKENS, AND OTHER EXPERIMENTAL TECHNOLOGY SHOULD NOT DO SO.

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