1. GLOSSARY

1.1. All capitalised terms used in this Description of the Commercial Exchange Policy (the Description) shall have the following meaning:

1.1.1. Applicable Law - means laws, rules, and regulations applicable to the Company and its activities.

1.1.2. Blockchain Fee - means the amount of the required crypto-asset amount imposed upon participants to execute and validate transactions on the applicable blockchain network.

1.1.3. CEO - means a Chief Executive Officer, the management body of the Company elected by the Management Board, who organizes everyday economic-commercial activities of the Company.

1.1.4. Company - means Fincryptou, UAB, a private limited liability company, legal entity code 306068445.

1.1.5. Client - means a legal person or a natural person who has entered into an agreement with the Company for the provision of Exchange Services by accepting the Terms and Conditions. This concept includes not only qualified investors, but also any other investors, including retail holders as they are defined under the MiCAR.

1.1.6. Client Agreement - means an agreement concluded between the Company and the Client for the use of Exchange Services.

1.1.7. Exchange Services - means services for the exchange of crypto-assets for funds (as defined in MiCAR) provided by the Company to its Clients, as specified in this Procedure.

1.1.8. Kraken - means the crypto-asset exchange platform available at https://www.kraken.com/.

1.1.9. PEP - means politically exposed persons and legal requirements applicable to transactions with such persons.

1.1.10. Platform - means the software platform and the Website through which the Company is providing its Exchange Services.

1.1.11. Processing Fee - means the fee charged by the Company to cover the costs associated with handling the Exchange Services for the Client.

1.1.12. Terms and Conditions - means an agreement entered into between the Company and the Client regarding the rendering of services by the Company to the Client, including the Exchange Services.

1.1.13. Website - means the website of the Company through which the Exchange Services are offered, i.e. https://www.fincryptou.com/.

1.2. Other terms shall have the meaning given to them in the body of this Description.

2. INTRODUCTION

2.1. The Company provides services of exchange of crypto-assets for funds and exchange of funds for crypto-assets to Clients. Accordingly, this Description explains the Company’s policy established as a commercial non-discriminatory procedures for the provision of the Exchange Services and regulates the type of the Clients it agrees to transact with and the conditions that shall be met by such Clients, as well as methodology for determining the price and limits of the crypto-assets that it proposes to exchange. 

2.2. When providing its services, the Company shall act honestly, fairly and professionally in accordance with the best interests of its Clients and prospective Clients.

3. USE OF EXCHANGE SERVICES

3.1. This Description applies to the Clients’ dealings in respect to the Exchange Services with the Company, as amended or supplemented from time to time.

3.2. To use the Exchange Services, the Clients must meet the following requirements:

3.2.1. the Client Agreement with the Client is signed;

3.2.2. the Client has accepted the Terms and Conditions;

3.2.3. the Client is at least 18 years of age (in case of a natural person) and has the full capacity to accept the Terms and Conditions and enter into transactions with the Company;

3.2.4. the Client has (in case the Client is a legal entity, then its authorized representative has) completed online verification as per the Company’s procedures;

3.2.5. the Client confirms that the Client will not use the Exchange Services for any illegal purposes, including actions and operations in order to legalize funds received from a criminal or illegal activity;

3.2.6. all relevant trading, custody and settlement accounts have been set up.

3.3. In order to use the Exchange Services in addition to the requirements provided in Clause 3.2, before entering into an agreement, the Client must successfully undergo the KYC/AML check, PEP, sanctions and adverse media checks in accordance with the Company’s procedures.

3.4. The Exchange Services are only permitted in crypto-assets that have been indicated as compatible by the Company, such as they may be from time to time, and which are available on the Platform. All other crypto-assets that are not indicated as compatible cannot be used for any Exchange Services.

3.5 The Company may refuse to enter into or discontinue business relationships with Clients due to the reasons indicated in the Terms and Conditions or Applicable Law.

3.6. The up-to-date list of available/eligible crypto-assets is provided on the Website and is updated in real-time.

4. METHOD OF DETERMINING THE PRICE, PUBLICATION OF QUOTES

4.1. For the purposes of Exchange Services, the Company publishes on the Website quotes of the crypto-assets that are accepted to be exchanged for funds and crypto-assets that can be acquired for funds at that moment. Quotes are published by providing the information listed in Annex 1.

4.2. The quote the Company makes available to the public for the purpose of publication of the quote (pre-trade transparency) is the traded quote at the moment established by the Company based on normal market conditions, but excluding the applicable Processing Fee and Blockchain Fees, as provided in the Description of Pricing Policy.

4.3. The quote specified by the Company is equal to the market price of the respective transaction on Kraken. The Company shall provide the Client with the aggregate number that includes the quote together with the applicable Processing Fee.

4.4. The provided quote is valid for 1 minute until it recalculates and the new quote is provided.

4.5. In case of changes to the process of providing the quote, the Company shall update the specifications in this Procedure, the Client Agreement and the Terms and Conditions.

4.6. The price to be charged to the Client for the Exchange Service equals the market price of the respective transaction on Kraken at the moment the order becomes final and is executed plus the applicable Processing Fee and the Blockchain Fees.

5. PROCEDURES FOR PROVISION OF EXCHANGE SERVICES

5.1. Clients shall interact with the Company via the Platform.

5.2. The Client’s order to process the payment in crypto-assets is deemed to be final upon successful screening of the crypto-assets deposited to the digital wallet opened by the Company on behalf of the Client.

5.3. The Client’s order to acquire crypto-assets for funds is deemed final after confirmation is received from the acquiring bank.

5.4 The Exchange Service for the exchange of crypto-assets to funds is provided in the following steps:

5.4.1. The Client asks the Company for Exchange Services in respect of a specified amount of crypto-assets.

5.4.2. The Company generates a unique wallet address on behalf of the Client for the transaction within the internal system of the Company and provides the wallet address to the Client’s client for the relevant deposit.

5.4.3. Once the Client’s client deposits relevant crypto-assets to the unique wallet address on behalf of the Client, the Company performs the relevant screening within blockchain screening tools.

5.4.4. The Company sends a confirmation about the receipt of crypto-assets to the Client.

5.4.5. The Company settles with the Client as soon as possible and not later than by the end of the day by transferring the fiat funds from the Company’s own funds account at the Client’s choice to the segregated clients’ funds account or directly to the Client’s account.

5.4.6. Then the Company appropriates the crypto-assets deposited to the unique wallet deposit address on behalf of the Client generated by the Company and sends them at its choice either to the unique wallet deposit address of the Company or to the unique wallet address generated by Kraken on behalf of the Company to be exchanged for fiat funds.

5.4.7. Kraken performs the relevant screening of crypto-assets and settles with the Company by transferring the relevant funds to the Company’s account opened with Kraken.

5.5. The Exchange Service for the exchange of funds for crypto-assets is provided in the following steps:

5.5.1. The Client asks the Company for Exchange Services by indicating the fiat amount intended to be spent and the crypto-assets to be acquired.

5.5.2. The Client’s client is directed to the checkout operated by the Company, where the Client’s client enters the details for the credit card payment and confirmation from the acquiring service provider is received. Then, the Company performs the KYC and other required processes and checks.

5.5.3. In case the checks are successful, the Company approaches the acquiring banks with the request to charge the respective credit card with the required amount of fiat currency. Upon receipt of the payment, the Company delivers the purchased amount of crypto-assets to the wallet provided by the Client.

5.5.4. Then the Company uses the funds received to acquire the respective crypto-assets on Kraken.

5.5.5. Kraken settles with the Company by transferring the relevant crypto-assets to the Company’s digital wallet.

5.6. The Company may choose to change the order of settlement with the Client, so that for exchange of crypto-assets to funds the settlement as stated in Clause 5.4.5 would take place after the steps described in Clauses 5.4.6 and 5.4.7 are taken, and for the exchange of funds for crypto-assets the settlement as stated in Clause 5.5.3 would take place after the steps described in Clauses 5.5.4 and 5.5.5 are taken.

6. FEES

6.1. The quotes published by the Company do not include the Company’s Processing Fee. In addition to that, Blockchain Fees may apply to the Exchange Services.

6.2. The amount of the Processing Fee applicable to the Client is specified in the Client Agreement concluded with that Client.

6.3. The amount of Blockchain Fees is charged to the Client after completion of the transaction. The Blockchain Fees are variable and fluctuate based on the level of network congestion at the time of transaction execution.

6.4. No later than by the end of the business day on which the transaction was executed, the Company provides the Client with the detailed breakdown of Blockchain Fees applicable to the transaction.

6.5. The Company shall continuously make its policies and procedures on pricing, costs and fees publicly available in a prominent place on the Website.

7. LIMITATIONS ON TRANSACTIONS

7.1. The Company shall limit the number of transactions it undertakes to enter into with the Client on the basis of a single quote to 1 (one) transaction.

7.2. The quote provided to the Client may only be used for the transaction fully meeting the conditions of the Client’s request (i.e. amount of fiat, amount of crypto-assets) and may not be executed in part.

8. WITHDRAWAL OF QUOTES

8.1. The Company may withdraw its quote before the order of the Client’s client has become final as per Clauses 5.2 and/or 5.3 under exceptional market conditions and if the Company becomes aware of any error or omission in the quote by properly notifying the Client and without charging fees.

9. POST-TRADE TRANSPARENCY

9.1. The Company will publish information on the Website about the transactions concluded (i.e. the Exchange Services provided), including transaction volumes and prices, for the purpose of post-trade transparency.

9.2. For transactions performed by the Company while providing Exchange Services, the Company shall make public the details of each transaction as set out in Annex 1 as close to real-time as is technically possible and in any case within thirty seconds after the execution of the transaction.

10. GENERAL PROVISIONS

10.1. The Description has been reviewed and approved by the CEO of the Company.

10.2. Description may be subject to changes as required under the Applicable Law or otherwise if needed. If the Description is amended, the latest applicable version of the Description is always available on the Company’s Website.