Terms of Service




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 User’s Passphrase that gives access to User’s LAVAPAY account. User agrees that, in the event of the loss or misuse of User’s Passphrase, Issuer disclaims all liability for such loss. User shall indemnify and hold harmless Issuer for relying on transactions authorized using User’s Passphrase prior to such time as User notifies Issuer that User’s 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 User’s Passphrase to anyone else, nor may User use anyone else’s Passphrase. User agrees that Issuer will treat any person accessing User’s account using User’s Passphrase as the User.

2.3.4. Issuer is not responsible for losses incurred by User as the result of User’s misuse of a Passphrase.

2.3.5. User agrees that any action taken by any person using User’s 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 User’s 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.

2.6. Indemnification

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 User’s use of the LAVAPAY system, except for any loss caused by willful misconduct of Issuer.

2.7. Prohibited Transactions

2.7.1. It is strictly forbidden to send or receive payments as consideration for the sale or supply of: Tobacco products Prescription drugs Drugs and drug paraphernalia Weapons (including without limitation, knives, guns, firearms or ammunition) Satellite and cable TV descramblers Pornography, adult material, material which incites violence, hatred, racism or which is considered obscene Government IDs and licences including replicas and novelty items and any counterfeit products Unlicensed or illegal lotteries or gambling services (including without limitation the use of or participation in illegal gambling houses) Unregistered charity services Items which encourage or facilitate illegal activities Prepaid debit cards or other stored value cards that are not associated with a particular merchant and are not limited to purchases of particular products or services Third party processing or payment aggregation products or services Multi-level marketing, pyramid selling or ponzi schemes, matrix programmes or other “get rich quick” schemes or high yield investment programmes Goods or services that infringe the intellectual property rights of a third party. Un-coded/miscoded gaming Timeshares or property reservation payments (On and Off Plan) We reserve the right, in our sole discretion, to add categories of prohibited transactions by adding such categories either to these Terms of Use or an acceptable use policy published on the Website.

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.

2.7.5. You may only accept payments for certain categories of business after approval from us in our sole discretion. Such business categories include but are not limited to: money exchange or remittance businesses, including but not limited to bureaux de change, currency exchanges and purchase of travel money; the collection of any form of donations or payments to charitable or not-for-profit organisations; dealing in natural resources such as jewels, precious metals or stones; live streaming the sale or supply of alcoholic beverages; the sale of supply of dietary supplements and alternative health products; any other business category published in an acceptable use policy on the Website from time to time. In case you are in doubt whether your business falls under any of the above categories, you must contact Customer Service.We reserve the right in our sole discretion, to add business categories requiring approval by adding such categories either to these Terms of Use or an acceptable use policy published on the Website.

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 User’s 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 User’s 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. Privacy

3.4.1. Issuer will produce and maintain a Privacy Policy, which will be publicly available at the LAVAPAY website. In the event of any conflict between the Privacy Policy and this Agreement, the terms of this Agreement will control.

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 User’s 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 User’s 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 User’s 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 User’s ability to use more than one LAVAPAY account in an attempt to circumvent the value limit.

4.3. Fees

Issuer reserves the right to assess and collect the following fees from User’s account:

4.3.1. Monthly Fee — collected by Issuer monthly from user’s 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.

4.4. Escheat

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 User’s LAVAPAY account ("Freeze"), with cause: 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 User’s actions, at the sole discretion of Issuer. 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. 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. Fees will continue to be assessed on a frozen account.

4.7. Trademarks

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 Issuer’s 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 User’s right to confidentiality and privacy.

4.9.2 Unless ordered by a ruling body of competent jurisdiction acceptable to Issuer, Issuer shall not reveal User’s contact or identifying information or transaction history to any third party.

4.9.3 Issuer will ensure that User has the ability to examine User’s 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.

6. Waiver

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.

7. Assignment

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.

8. Jurisdiction

9. Severability

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 User’s failure to object within 10 days to modifications posted on Issuer’s website.

Last updated 2010-01-25