Terms of Service
THIS AGREEMENT SETS FORTH THE TERMS AND CONDITIONS UNDER WHICH LAVAPAY WILL PROVIDE ITS ACCOUNT SERVICES. THIS AGREEMENT DESCRIBES USERS RIGHTS AND OBLIGATIONS WHEN USING THESE SERVICES. USER MUST READ THE AGREEMENT CAREFULLY AND BE SURE USER UNDERSTANDS THESE TERMS AND CONDITIONS.
CREATION OR USE OF A LAVAPAY ACCOUNT MEANS USER ACCEPTS ALL THE TERMS AND CONDITIONS OF THIS AGREEMENT.
THE PARTIES TO THIS AGREEMENT ARE THE ISSUER AND THE USER.
1. Definition of Terms
EUR backing the LAVAPAY currencies is held in trust by LAVAPAY Inc. for the exclusive benefit of all LAVAPAY account holders collectively.
1.1. "LAVAPAY"; means the currency backed by EUR; the word "LAVAPAY"; is a registered trademark.
1.2. "Issuer"; means LAVAPAY Inc.
1.3. "Primary User"; means the User that creates the LAVAPAY account. Primary User is the owner of the account from the perspective of Issuer. Primary User may add additional Users to the account. The Issuer shall treat all such additional Users as agents or delegates of Primary User.
1.4. "Permissions"; means account access privileges granted by Primary User to designated additional Users. Unless Primary User specifically limits permissions, such additional Users have the same privileges as Primary User with certain exceptions, including, but not limited to (1) the ability to reassign Primary User status and (2) the ability to close the account.
1.5. "User"; means any user accessing a LAVAPAY account with permissions granted by Primary User.
1.6. "Available Balance"; means the total balance of a particular LAVAPAY account minus any accrued fees.
1.7. "Spend"; means the act of transferring value between LAVAPAY accounts. Spends are accounted in EUR (or other foreign currency equivalent) and convey title to that precise amount of value. Spends may not exceed Available Balance.
1.8. "Passphrase"; means a series of characters, known only to User, deemed of suitable complexity as determined from time to time by Issuer. For purposes of this agreement, Passphrase also refers to other authentication mechanisms to which User and Issuer mutually agree.
2. Conditions of Use
User acknowledges that (i) LAVAPAY is not a bank (ii) LAVAPAY accounts are not insured by any government agency and (iii) LAVAPAY is not subject to banking regulations.
2.1. User Obligations. User agrees that all User obligations under this Agreement are the joint and several obligations of all the Users with greater than read-only access to a particular account.
2.2. Identifying Information. User must provide Issuer with valid and accurate identifying information as determined from time to time by Issuer.
2.3. Protection of Passphrase
2.3.1. User is responsible for the protection of Users Passphrase that gives access to Users LAVAPAY account. User agrees that, in the event of the loss or misuse of Users Passphrase, Issuer disclaims all liability for such loss. User shall indemnify and hold harmless Issuer for relying on transactions authorized using Users Passphrase prior to such time as User notifies Issuer that Users Passphrase has been compromised.
2.3.2. User acknowledges and accepts that in the case of a claim of unauthorized Spends, the presumption shall be that all Spends are authorized by and are the liability of the User.
2.3.3. User must not divulge Users Passphrase to anyone else, nor may User use anyone elses Passphrase. User agrees that Issuer will treat any person accessing Users account using Users Passphrase as the User.
2.3.4. Issuer is not responsible for losses incurred by User as the result of Users misuse of a Passphrase.
2.3.5. User agrees that any action taken by any person using Users Passphrase shall be binding on User and all other parties with an interest in that account.
2.4. Irrevocability of Spends
2.4.1. User agrees that all Spends initiated by User are final and not reversible.
2.4.2. User is responsible for all Spends from Users LAVAPAY account, except as provided in section 2.3, even if the instructions provided by User are incorrect.
2.4.3 User understands and acknowledges that user is aware that LAVAPAY spends are irrevocable and that user agrees to follow the policy of buyer beware ("Caveat Emptor") when using LAVAPAY at various merchant sites.
2.4.4 User understands and acknowledges that LAVAPAY is registered and is 100% domiciled and that LAVAPAY follows the laws including, but not limited to, allowing gaming and gambling businesses to use LAVAPAY as a payment system, which may not be acceptable or legal in user's own jurisdiction.
2.4.5 User understands and acknowledges that LAVAPAY does not act as judge or jury or as law enforcement or as a court of law with respect to any disputes between users of LAVAPAY. User understands that any such involvement by LAVAPAY in the affairs of users of the system could expose LAVAPAY to civil legal liability, or possibly criminal liability, even if LAVAPAY believes that its actions are in good faith.
2.5. Disputes Between Users
2.5.1. Any disputes that arise between Users are not the responsibility of Issuer.
2.5.2. User acknowledges Issuer does not make any guarantees regarding purchases made when using the LAVAPAY service. User acknowledges that Issuer does not ensure the quality, safety, or legality of any merchandise received, nor that the seller will even ship the merchandise.
User agrees to indemnify and hold harmless Issuer, its agents, affiliates, officers, directors and employees from any claim or demand whatsoever relating to or arising out of Users use of the LAVAPAY system, except for any loss caused by willful misconduct of Issuer.
2.7. Prohibited Transactions
2.7.2. It is strictly forbidden to make payments to or to receive payments from persons or entities offering illegal gambling services, including (but not limited to) illegal sports betting, casino games and poker games. We may suspend or terminate your LavaPay Account at any time or refuse to execute or reverse a transaction if we believe that you directly or indirectly use or have used your LavaPay Account for or in connection with illegal gambling transactions. Countries where online gambling is illegal include the United States of America, Turkey, China, Malaysia and Israel. This list is not exhaustive and it is your responsibility to ensure that you do not use our services for transactions that may be considered illegal in your jurisdiction.
2.7.3. You may not use our services if you are residing in any of the following countries: Afghanistan, Cuba, Iran, Myanmar, Nigeria, North Korea, North and South Sudan, Somalia, the United States of the America(This includes US citizens residing overseas), Puerto Rico, American Samoa, Virgin Islands (US), American Samoa, Guam, Northern Mariana Islands, Syria or Yemen. This list is not exhaustive and we may in our sole discretion decide to discontinue or restrict our services in other countries at any time and without prior notice. We reserve the right to suspend or terminate your LavaPay Account at any time if we reasonably believe to be required to do so by law or in order to comply with recommendations issued by a relevant government authority or recognised body for the prevention of financial crime.
2.7.4. It is strictly forbidden to use your LavaPay Account for any illegal purposes including but not limited to fraud and money laundering. We will report any suspicious activity to the relevant law enforcement agency. You are prohibited from using your LavaPay Account in an attempt to abuse, exploit or circumvent the usage restrictions imposed by a merchant on the services it provides.
2.7.6. If you conduct or attempt to conduct any transaction in violation of the prohibitions contained in this section 2.7 or without the necessary approval under section 2.7.5, we reserve the right to: reverse the transaction; and/or close or suspend your LavaPay Account; and/or report the transaction to the relevant law enforcement agency; and/or claim damages from you; and charge you an administration fee of up to 200 EUR in case we apply any of the above.
2.7.7. It is your and not our responsibility to ensure that you only send payments to or receive payments from persons or entities for the sale or supply of goods and services that you may provide or receive in compliance with any applicable laws and regulations. The mere fact that a person or entity accepts payments through us is not an indication of the legality of the supply or provision of their goods and services. If you are in doubt as to the legality of a supply or purchase, you should not continue with your payment.
2.7.8. User may only open one LavaPay Account unless we explicitly approve the opening of additional accounts.
3. Obligations of Issuer
Issuer shall honor these obligations:
3.1. Reserve Requirement
3.1.1. All funds in circulation shall be backed 100% at all times with unencumbered EUR (or other currency that is held in Users LAVAPAY account).
3.1.2. Under no circumstances will Issuer abrogate its obligation to back all electronic funds with (at least) 100% reserve EUR.
3.2. User Interface
Issuer will ensure that a secure online User interface is made available.
3.3. Exchange Rates
Strictly for Users convenience, Issuer may allow Spend order entry in terms of national currency units using an exchange rate specified by Issuer. Posted exchange rates are only for convenience of User. Issuer does not make a market for exchange and Issuer does not represent that anyone will make a market honoring the specified exchange rates.
3.4.2. Unless (1) otherwise approved by User or (2) ordered by a court or arbitration body of acceptable jurisdiction, as determined by Issuer, Issuer shall not reveal Users contact or identifying information or transaction history to any third party.
3.4.3. Issuer will not store Passphrase in plaintext. No employee of Issuer will ever ask for Users Passphrase.
3.4.4 User agrees that the only way to recover access to a User Account where the Passphrase or Login ID have been lost is by following the password recovery procedure established by Issuer. User is responsible for being able to meet the requirements and costs for the password recovery. LAVAPAY will not be responsible in any way for any of Users losses due to User failing to meet the requirements for password recovery.
4. Rights of Issuer
Issuer reserves the following rights:
4.1. Governance Model
Issuer reserves the right to appoint third parties to fulfill specified governance roles, including, but not limited to: (1) Trust, (2) Auditor, (3) Operator.
4.2. Value Limits
Issuer may set value limits (balance, spends, etc.) on a LAVAPAY account based on the sufficiency of the identifying information provided by User or by order of a court or arbitration body acceptable to issuer. Issuer may restrict Users ability to use more than one LAVAPAY account in an attempt to circumvent the value limit.
Issuer reserves the right to assess and collect the following fees from Users account:
4.3.1. Monthly Fee collected by Issuer monthly from users account.
4.3.2. Spend Fee deducted by Issuer in EUR from the recipient account of a Spend.
4.3.3. Other Administrative Fees collected by Issuer for providing support to User when User contacts Issuer and Issuer is not at fault.
4.3.4. Funds Recovery Process and Fees.
Upon satisfying all legal requirements necessary to recover funds, LAVAPAY will, if at all possible, attempt to recover the funds in question. Common legal requirements include, but not limited to: valid court orders, valid law enforcement orders, notarized copies of all requests submitted in writing and notarized copies of all IDs. In most cases all originals have to be submitted via snail mail, as electronic copies sent by e-mail are not acceptable. If by any reason LAVAPAY is requested to recover any funds by any reason, a one-time 10% Recovery fee will be charged in order to cover any and all expenses of the recovery process.
Issuer will not escheat inactive LAVAPAY accounts. An inactive account with a balance shall remain dormant forever, other than continued assessment of fees, unless and until an heir presents valid documentation entitling the heir to inherit the account.
4.5. Force Majeur
Issuer will not be responsible for delays or failures in the transmission, receipt or execution of orders, payments, deliveries or information due to events beyond its control. The obligations of this contract precede any government enactment.
4.6. Right of Association
Issuer reserves the right to refuse service to particular individuals or entities, at its sole discretion, with or without cause.
4.6.1. Refusal with Cause
Issuer will block any transactions that increment or decrement the balance in Users LAVAPAY account ("Freeze"), with cause:
126.96.36.199. Issuer will Freeze the LAVAPAY account of User if User uses, or attempts to use the LAVAPAY service in connection with tampering, cracking, modifying or otherwise corrupting the security or functionality of the LAVAPAY system. Additionally, User will be subject to damages and other penalties, including criminal prosecution where available and the notification of the general public of Users actions, at the sole discretion of Issuer.
188.8.131.52. Issuer will Freeze or remove a Freeze from a LAVAPAY account, if ordered to do so by an order from a court or arbitration body of acceptable jurisdiction, as determined by Issuer.
184.108.40.206. Issuer will Freeze the LAVAPAY account if LAVAPAY account holder(user) will be using proxy, vpn, tunnels, tor or any other services in order to hide his real location.
220.127.116.11. Fees will continue to be assessed on a frozen account.
Issuer retains all right, title, and interest in and to trademarks. User shall only use LAVAPAY trademarks with the express permission of Issuer. User shall not use the trademarks in any manner that is disparaging to LAVAPAY. Under no circumstances may a User alter, modify, or change Issuers trademarks.
4.8 Exchange services (i. e. exchanging national currency to LAVAPAY and vice versa and other currencies to LAVAPAY and vice versa) are provided by independent Exchange Providers
4.9. Privacy and Confidentiality Policy
4.9.1 LAVAPAY recognizes the Users right to confidentiality and privacy.
4.9.2 Unless ordered by a ruling body of competent jurisdiction acceptable to Issuer, Issuer shall not reveal Users contact or identifying information or transaction history to any third party.
4.9.3 Issuer will ensure that User has the ability to examine Users contact and identifying information and make updates and changes when necessary.
4.9.4 Issuer will not store any User details, including but not limited to account history, contact or identifying information, or Personal Identification Number(s) in unencrypted plain text under any circumstances.
4.9.5 User agrees that LAVAPAY has the right to monitor the LAVAPAY Network electronically from time to time in order to operate the System properly.
4.9.6 Issuer will email User only if (a) User's email address is either
listed with Issuer as someone who has expressly shared this address for
the purpose of receiving information in the future ("opt-in"), or (b)
User has registered or otherwise have an existing relationship with
Issuer. Issuer respects User's time and attention by controlling the
frequency of the mailings.
4.9.7 To cease receiving Issuer's emails User must login to his or her
account and disable all email notifications, which by default are enabled.
5. Third Party Links
5.1 LAVAPAY provides links to other web sites that may be of interest or of use to Users solely for the convenience of Users. Any such linked site does not constitute part of the LAVAPAY Network unless expressly stated. LAVAPAY is not responsible for the privacy practices, or the content of any such web sites.
5.2 User acknowledges and agrees that LAVAPAY (and its directors, affiliates, officers, employees and agents) give no warranties or representations in connection with any links to other web sites or the operations of those web sites and in no way guarantees the use of such web sites or the services offered, included but not limited to the services of any Exchange Provider.
Failure to exercise or delay in exercising any right, power or remedy hereunder by Issuer shall not operate as waiver thereof, nor shall any single or partial exercise of any right, power or remedy of Issuer hereunder preclude any other or future exercise thereof or the exercise of any other right, power or remedy.
The provisions of this Agreement shall be continuous and shall inure to the benefit of Issuer, its successors and assigns, and shall be binding upon User and/or the estate, personal representatives, administrators and successors of User. Issuer may assign its rights and delegate its duties as to any or all transactions under this Agreement. User shall not delegate any obligations hereunder without the prior written consent of a duly authorized officer of Issuer and any attempt at such delegation without such consent shall be void.
In the event that any provisions of this Agreement shall be determined by an arbitration body or a court of competent jurisdiction to be unenforceable in any jurisdictions, such provision shall be unenforceable in that jurisdiction and the remainder of this Agreement shall remain binding upon the parties as if such provisions were not contained therein. The enforceability of such provision shall otherwise be unaffected and remain enforceable in all other jurisdictions.
10. Entire Agreement
This Agreement constitutes the entire and whole Agreement between User and Issuer and is intended as a complete and exclusive statement of the terms of the Agreement. This Agreement shall supersede all other communications between the parties. This Agreement may be amended only upon execution of a subsequent agreement or upon Users failure to object within 10 days to modifications posted on Issuers website.
Last updated 2010-01-25