Digital Assets Supplementary Terms

1. Scope and Applicability

These Digital Assets Supplementary Terms ("Supplementary Terms") supplement the Gauge Terms of Service available at gauge.fun/terms (the "Main Terms"). These Supplementary Terms apply when you access or use any digital asset features on the Gauge platform, including but not limited to purchasing, selling, or trading tokens, tickets, or fractions; using a Custodial Wallet; or interacting with bonding curve mechanics.

In the event of a conflict between these Supplementary Terms and the Main Terms, these Supplementary Terms shall prevail with respect to digital asset features. All definitions, general provisions, dispute resolution, and other terms from the Main Terms apply unless specifically modified herein.

If you do not use digital asset features, these Supplementary Terms do not apply to you.

2. Definitions

In addition to the definitions in the Main Terms, the following definitions apply:

• "Blockchain" means the Avalanche C-Chain, Base, Monad, or other supported distributed ledger technologies.
• "Custodial Wallet" means a cryptocurrency wallet created and managed by Gauge on behalf of a user to facilitate digital asset transactions on the Platform.
• "Digital Assets" means cryptocurrencies, tokens, tickets, fractions, and other blockchain-based assets accessible through the Platform.
• "Fractions" means ERC-20 tokens representing partial ownership of a ticket.
• "Smart Contract" means self-executing code deployed on a blockchain that governs transactions on the Platform.
• "Ticket" means a digital asset representing membership, access, or support for a creator on the Platform.
• "Bonding Curve" means the algorithmic pricing mechanism that determines ticket prices based on supply and demand.

3. Social Proof Protocol

The Social Proof Protocol enables creators to issue and manage tokenized social proof through the Platform:

• Creators can issue tickets that represent membership or support within their community.
• Tickets can be fractionalized into ERC-20 tokens, allowing broader accessibility and participation.
• Supporters can accumulate fractions to obtain full tickets.
• Full tickets trade on bonding curves, enabling dynamic price discovery based on supply and demand.
• All transactions are recorded on-chain for transparency and verifiability.

Ticket and fraction issuance, pricing, and availability are subject to the mechanics of the applicable smart contracts and blockchain network conditions. Gauge does not guarantee specific outcomes, returns, or liquidity for any digital asset.

4. Custodial Wallet

When you access digital asset features, Gauge may facilitate the creation of a Custodial Wallet on your behalf through a third-party wallet service provider. By using a Custodial Wallet, you acknowledge and agree that:

• A third-party wallet service provider creates and manages the Custodial Wallet on your behalf.
• Private keys for Custodial Wallets are managed by our third-party wallet service provider. Gauge does not directly store or access private keys.
• You may request to export your digital assets to a self-custody wallet at any time, subject to applicable network fees and processing times.
• Gauge is not liable for losses resulting from failures, errors, or security breaches of the third-party wallet service provider.
• You are responsible for ensuring the accuracy of any wallet address you provide for asset transfers.

Gauge employs commercially reasonable security measures to protect Custodial Wallets but does not guarantee against all risks, including those arising from blockchain network vulnerabilities or third-party exploits.

5. Cryptocurrency Payments

The Platform facilitates transactions in cryptocurrencies including AVAX (Avalanche), ETH (Base and Monad), and other supported tokens. By transacting in digital assets, you acknowledge:

• Cryptocurrency values are highly volatile and can fluctuate significantly in short periods.
• Blockchain transactions are irreversible once confirmed on the network.
• Network fees ("gas fees") apply to all on-chain transactions and are determined by network conditions, not by Gauge.
• Transaction processing times depend on blockchain network congestion and conditions beyond Gauge's control.
• Gauge is not responsible for failed, delayed, or misdirected transactions resulting from user error or network issues.

6. Ticket and Fraction Trading

When purchasing, selling, or trading tickets and fractions on the Platform:

• Prices are determined by bonding curve mechanics, smart contract logic, or prevailing market conditions.
• Past performance of any digital asset does not guarantee or indicate future results.
• You are solely responsible for your trading decisions and for evaluating the risks of any transaction.
• Platform fees may apply to transactions as disclosed at the time of the transaction.
• Liquidity is not guaranteed. You may not be able to sell or trade digital assets at your desired price or at all.
• Gauge does not act as a broker, dealer, exchange, or financial advisor. The Platform provides infrastructure for peer-to-peer transactions governed by smart contracts.

7. Reward Distribution for Digital Assets

Where creator rewards from campaigns are distributed in digital assets:

• Rewards are calculated according to published reward formulas and are subject to minimum AI moderation score thresholds as described in the Main Terms.
• Rewards are paid in cryptocurrency to your Custodial Wallet or a designated external wallet.
• Reward distribution is subject to engagement verification and anti-fraud measures.
• The value of cryptocurrency rewards may fluctuate between the time of earning and the time of withdrawal or conversion.
• Gauge is not responsible for changes in the value of rewards after distribution.

8. Digital Asset User Conduct

In addition to the user conduct requirements in the Main Terms, when using digital asset features you agree not to:

• Engage in market manipulation, wash trading, or any form of fraudulent trading activity.
• Use automated bots or scripts to manipulate ticket or fraction prices.
• Exploit smart contract vulnerabilities or engage in front-running transactions.
• Use the Platform for money laundering, terrorist financing, or circumventing sanctions.
• Create multiple accounts or wallets to artificially inflate trading volumes or manipulate bonding curves.
• Circumvent geographic restrictions or sanctions compliance measures.

Violation of these rules may result in immediate account suspension, forfeiture of digital assets held in Custodial Wallets, and referral to applicable authorities.

9. Blockchain and Digital Asset Risks

You acknowledge and accept the following risks associated with blockchain technology and digital assets:

9.1 Smart Contract Risks

• Smart contracts may contain vulnerabilities, bugs, or exploits that could result in loss of digital assets.
• Smart contract behavior is determined by code and may produce unexpected results.
• Gauge conducts reasonable security reviews but does not guarantee smart contracts are free from defects.

9.2 Network Risks

• Blockchain networks may experience congestion, forks, or outages that affect transaction processing.
• Network upgrades or changes may affect the functionality of digital assets on the Platform.
• Cross-chain transactions involve additional risks related to bridge protocols and interoperability.

9.3 Regulatory Risks

• The regulatory environment for cryptocurrencies and digital assets is evolving and uncertain.
• Changes in laws or regulations may restrict or prohibit the use of digital assets in your jurisdiction.
• You are solely responsible for understanding and complying with applicable laws in your jurisdiction.

9.4 Value and Liquidity Risks

• Digital assets may lose all or substantially all of their value.
• There is no guarantee of liquidity for any digital asset on the Platform.
• Bonding curve mechanics mean that prices can change rapidly with each transaction.
• The total loss of your investment in digital assets is possible.

10. No Financial Advice

Nothing on the Platform or in these Supplementary Terms constitutes financial, investment, tax, or legal advice. Specifically:

• Gauge does not recommend or endorse any digital asset, creator, or investment strategy.
• Information displayed on the Platform, including prices, scores, and metrics, is for informational purposes only.
• You should consult qualified financial, tax, and legal professionals before making any decisions involving digital assets.
• Past performance of any digital asset does not indicate or guarantee future results.

11. Limitation of Liability for Digital Assets

TO THE MAXIMUM EXTENT PERMITTED BY LAW, IN ADDITION TO THE LIMITATIONS SET FORTH IN THE MAIN TERMS, GAUGE AND ITS AFFILIATES, OFFICERS, DIRECTORS, EMPLOYEES, AND AGENTS SHALL NOT BE LIABLE FOR:

• Any loss of digital assets due to smart contract vulnerabilities, blockchain network issues, or third-party exploits.
• Fluctuations in the value of digital assets, including total loss of value.
• Failed, delayed, or misdirected blockchain transactions.
• Loss of access to digital assets due to lost private keys, compromised wallets, or user error.
• Actions taken by blockchain network validators, miners, or governance participants.
• Regulatory actions that affect the availability or value of digital assets.

IN NO EVENT SHALL GAUGE'S TOTAL LIABILITY FOR CLAIMS ARISING FROM DIGITAL ASSET FEATURES EXCEED THE GREATER OF (A) THE FEES YOU PAID TO GAUGE FOR DIGITAL ASSET TRANSACTIONS IN THE 12 MONTHS PRECEDING THE CLAIM, OR (B) ONE HUNDRED U.S. DOLLARS ($100).

12. Indemnification

In addition to the indemnification obligations in the Main Terms, you agree to indemnify, defend, and hold harmless Gauge from any claims, damages, losses, and expenses arising from:

• Your digital asset transactions, including trading, purchasing, or selling tickets and fractions.
• Your use of the Custodial Wallet or interactions with smart contracts.
• Any tax obligations arising from your digital asset activities.
• Claims by third parties related to your digital asset transactions on the Platform.

13. Tax Obligations

You are solely responsible for determining and fulfilling any tax obligations arising from your use of digital asset features, including but not limited to:

• Reporting income, gains, or losses from digital asset transactions.
• Paying applicable taxes in your jurisdiction.
• Maintaining records of your transactions for tax purposes.

Gauge may be required to report certain transaction information to tax authorities. Gauge does not provide tax advice and recommends consulting a qualified tax professional.

14. Termination and Digital Assets

In the event of account termination:

• You may request withdrawal of digital assets held in your Custodial Wallet to a self-custody wallet within 30 days of termination notice.
• Withdrawal requests are subject to applicable network fees and verification procedures.
• If termination results from your violation of these Supplementary Terms or the Main Terms, pending rewards and unclaimed digital assets may be forfeited.
• Gauge reserves the right to freeze digital assets in Custodial Wallets during investigation of suspected violations.
• After the 30-day withdrawal period, Gauge has no obligation to maintain or return digital assets remaining in terminated Custodial Wallets.

15. Modifications to Supplementary Terms

We may modify these Supplementary Terms at any time by posting updated terms on our website. Material changes affecting digital asset features will be notified via email or Platform notification at least 30 days before taking effect. Your continued use of digital asset features after changes take effect constitutes acceptance of the modified Supplementary Terms.

16. Contact Information

For questions about these Supplementary Terms or digital asset features, contact us at:

Email: legal@gauge.fun

Website: gauge.fun