Terms & Conditions – Staking Wallet

Legal & Privacy

Last updated 12.11.2024

Introduction

These Terms and Conditions (“Staking Wallet T&Cs”) regulate the use of the Staking service (“Service”) provided by Young Platform S.p.A. (“Young Platform” or the “Company”). The Service, offered in collaboration with third-party providers of custody and staking services (hereinafter “Providers,” such as (i) Fireblocks Ltd. and/or other similar third parties; (ii) decentralised protocols like Lido or other similar parties), enables Users to participate in the staking process of specific cryptocurrencies to earn rewards and contribute to the operation and security of the respective blockchain networks.

In line with ESMA’s guidelines (QA_2067 of 20-06-2024), the Service is provided in compliance with all the requirements set out in MiCA for entities authorised to provide custody and administration of crypto-assets on behalf of clients (in particular, Articles 59, 62, 66, 67, 68, 69, 70, 71, 72, 73, 74, and 75 MiCA).

To ensure the security of the custody infrastructure and the Users’ cryptocurrencies, the Company relies on some of the best Providers in the market, including Fireblocks Ltd. Fireblocks provides a cryptocurrency wallet service with high-security standards, including private key storage in secure environments and interactions with various blockchains to monitor asset balances. The agreement between Young Platform and Fireblocks includes guarantees to protect Young Platform’s information and excludes liability for indirect damages or damages caused by force majeure. Young Platform undertakes to adopt security measures such as promptly notifying of any breaches and conducting integrity tests on the services provided by the Provider.

Users’ use of the Service is subject to full and unconditional acceptance of these Terms, as well as the Privacy Policy and the Staking Configurations (as described below) selected by the User under Article 5 of these Staking Wallet T&Cs. Therefore, Users are encouraged to carefully read these terms before using the Service and regularly check the Young Platform website for any updates and/or changes.

Definitions

Staking: A fundamental process for certain cryptocurrencies, particularly those using the “Proof of Stake” (PoS) consensus mechanism. It involves the User “locking” a certain amount of cryptocurrency to support the blockchain network operations.
User: The natural or legal person using the Staking service provided by Young Platform.
Configuration: A set of parameters that define the staking conditions for a specific cryptocurrency with a particular Provider, including minimum and maximum amounts, fees, technical timelines, blockchain-imposed timelines, and APY.
Position: The Staking Service that the User activates following a specific Configuration and that the User can deactivate upon confirmation of the closure of the Position. A single Position may include multiple Stakes (as defined below).
Stake: Refers to each individual term within a Position. Technically, “stake” is each staking action that the User can perform within a single Position.
APY (Annual Percentage Yield): The estimated annual percentage reward that each User can receive through staking.
Epoch: The frequency of reward maturation on the respective blockchain (e.g., Solana).

The object of the Service

2.1 Young Platform makes available to Users the Service that allows them to participate in the staking process of supported cryptocurrencies actively.

2.2 The Staking Service offered by Young Platform allows Users to participate actively in the functioning and security of the blockchain network underlying their chosen cryptocurrency by making their cryptocurrencies available for a specific period. In return for this active participation, Users receive rewards, generally in the form of additional units of the same cryptocurrency.

2.3 In this context, Young Platform plays a fundamental facilitation role. The platform acts as a bridge between the User and the so-called Providers, i.e., third parties specialised in the technical and operational management of the staking process on specific blockchains. Young Platform simplifies access to this process by providing an intuitive interface and tools that enable users to participate in staking.

2.4 Through the Staking Service, Users can contribute to the network’s security by supporting the “Proof of Stake” consensus mechanism of some blockchains, thereby enhancing their security and decentralisation. Additionally, Users have access to diversified staking opportunities, as Young Platform allows the selection among various cryptocurrencies and/or Providers, enabling diversification and customisation of staking options.

General Terms and Conditions

3.1 Access to and use of the Service provided by Young Platform are subject to compliance with the following conditions:

(i) The User must hold an active account on the Young Platform and have successfully completed the entire identity verification process in accordance with the applicable anti-money laundering regulations and Young Platform’s internal policies.

(ii) The User must have read, understood, and fully accepted the General Terms and Conditions – Young Platform Currency Exchange, which governs the use of the Young Platform, available on the Company’s website. Acceptance of these terms is a prerequisite for accessing any services Young Platform offers.

(iii) The Staking Service is available exclusively for a specific set of cryptocurrencies and through specifically selected staking Providers. The list of supported cryptocurrencies and the relevant Providers may be subject to change at the sole discretion of Young Platform. Any deactivation of one or more cryptocurrencies and/or Providers will be communicated with reasonable notice, except in cases of force majeure or evident and confirmed risk, in which Young Platform reserves the right to take immediate action to protect Users.

3.2 Young Platform reserves the right, at any time and at its sole discretion, to modify the conditions of the Staking Service, including supported cryptocurrencies, available Providers, applicable fees, and any other relevant aspects. The Company also reserves the right to discontinue, in whole or in part, the provision of the staking service, subject to notice to Users at least seven calendar days in advance, during which the User may opt out before the new conditions apply.

3.3 Use of the staking service is at the User’s sole risk and discretion. Young Platform cannot be held liable for any losses, damages, or harm, whether direct or indirect, suffered by the User as a result of their participation in staking, including but not limited to losses arising from cryptocurrency market volatility, technical issues, or actions or omissions by the staking Providers. Staking, like any operation involving cryptocurrencies, entails risks. The value of cryptocurrencies may fluctuate, and past returns are not indicative of future results. Staking rewards may vary based on multiple factors, including the cryptocurrency protocol, the number of validators, and market conditions. It is crucial to conduct thorough research and fully understand the mechanics of staking before deciding to proceed. The User acknowledges that potential risks and/or attacks on the blockchain of one or more cryptocurrencies may result in the partial or total loss of their portfolio. The User is solely responsible for their own decisions.

Activation of the Staking Service

The activation of the Staking Service on Young Platform involves the following phases:

A. Selection and setup

Selection of Cryptocurrency and Provider: The User, through the platform interface, selects the cryptocurrency they wish to stake and the desired staking Provider from those available.
Defining the Amount: The User specifies the amount of cryptocurrency to allocate to staking, which must comply with the minimum and maximum limits established in the specific “Configuration” for the selected cryptocurrency-provider combination. The Configuration also defines other relevant parameters such as fees, unlocking times, and the estimated APY (note that the estimated APY is gross of the fee applied by Young Platform).

B. Verification and Staking Start

Resource Check: Young Platform performs real-time verification to ensure that the necessary technical and operational resources are available to process the User’s staking request.
Potential Technical Delays: The actual start of staking may be delayed due to technical factors such as transferring funds between wallets, performing currency conversions, or awaiting transaction confirmations on the blockchain. If any delays occur, the User will see a status of “Activating” in the staking section of the platform.
Locking and Reward Generation: Once the preliminary steps are completed, the User’s cryptocurrencies are “locked,” meaning they are made available to the Staking Provider to participate in the block validation process. From this moment, the cryptocurrencies begin generating rewards according to the conditions outlined in the selected Configuration.

C. Reward Management and Unlocking:

Calculation and Credit: Accrued rewards are calculated periodically as the Company specifies in agreement with the Staking Provider. Rewards are displayed within the active Staking Position and subsequently credited to the User’s account on the Young Platform after completing the unlocking process (hereinafter “Unstake“) for one or more Stakes.
Unlock Request or Unstake: The User may request to unlock staked cryptocurrencies at any time, provided that the Stakes for which the User wishes to request the unlock are active. Unstaking a Stake does not close the Position, which may remain active with the remaining Stakes. Additionally, the unlock request must comply with the conditions and unlock times defined in the selected Configuration. “Unbonding Periods” (described below) imposed by the blockchain may apply during which cryptocurrencies do not generate rewards and are not yet available for withdrawal.
Fee Deduction: Young Platform will deduct applicable fees, as specified in the Configuration (see below), from generated rewards or, alternatively, from the unlocked amount at the time of the Unstake request.

Staking Configurations: Parameters and Conditions

5.1 Young Platform’s staking service is based on a system of ‘Configurations‘ that define the specific parameters and conditions applicable to each combination of cryptocurrency and Staking Provider.

5.2 Each Configuration establishes a set of rules and limits (the “Parameters“) governing the staking process for a given cryptocurrency with a particular Provider. Key information included in a Configuration includes:

Minimum and maximum amounts: the Configuration specifies the minimum and maximum amount of cryptocurrency that the User can Staking. These limits may vary depending on the cryptocurrency, the Provider and market conditions.
Fees: The configuration details the fees charged by Young Platform for using the Staking service. These Commissions may include deposit commissions, withdrawal commissions, and commissions on generated rewards.
Technical Times: the Configuration indicates the technical times that may occur during the Staking process.
Annual Reward or APY: The Configuration provides an estimate of the Annual Percentage Yield (APY) that the User can expect to obtain from staking the selected cryptocurrency with the specific Provider. The APY is indicative and may vary based on factors such as market fluctuations and the Provider’s decisions.
Closing period (Unbonding Period): The Configuration specifies the period required to unlock staked cryptocurrencies. During this “Unbonding Period,” cryptocurrencies do not generate rewards and are unavailable for withdrawal.
Club benefits: Potential reward increases and/or other advantages reserved for Users who belong to specific membership levels or Clubs within the Young Platform.

5.3 The Configuration system adopted by Young Platform ensures informational transparency for the User, allowing them to know in advance all relevant parameters and conditions before initiating the staking process. Moreover, different Configurations for each cryptocurrency offer the User greater flexibility in selecting the staking options best suited to their needs and yield expectations. The User acknowledges and agrees they are solely responsible for the chosen Configurations.

Risks and Liability

6.1 Young Platform is committed to providing the Staking Service; however, it is crucial that the User is aware of the inherent risks associated with this activity and assumes full responsibility for their decisions.

6.2 The cryptocurrency market is highly volatile, with significant price fluctuations over short periods. The User acknowledges that the value of cryptocurrencies staked may fluctuate upwards and downwards during the lock-in period and that such fluctuations may result in significant financial losses. In this regard, the User acknowledges and unreservedly accepts that, in the event of delays and/or the necessity to comply with Unbonding Periods, Young Platform shall in no way be held responsible for any decreases or increases in the value of the cryptocurrencies for which the User intends to request Unstake.

6.3 Young Platform cannot be held liable for any losses, damages, or detriments incurred by the User as a result of technical issues, platform malfunctions, cyberattacks, service interruptions, or any other events beyond its reasonable control, including force majeure events such as natural disasters, wars, or acts of terrorism.

6.4 Although Young Platform, where possible, actively cooperates with the Providers, each Provider operates independently and under its terms and conditions of service. The Company cannot be held liable for any actions, omissions or failures to act on the part of the Provider(s) nor for any loss or damage that the User may suffer in connection with the Provider(s).

6.4.1 Slashing: in Staking, as mentioned above, staked assets are delegated to third-party validators, the Providers. If Providers act improperly or fail to validate transactions, they may fail to accrue rewards and suffer ‘Slashing‘, i.e. a reduction or loss of generated rewards. This may adversely affect Staking rewards. Young Platform is committed to selecting reliable validators and minimising the risk of Slashing, but the remote risk cannot be completely eliminated. In the event of Slashing, unless otherwise stipulated, providers have no obligation to cover lost rewards, especially if the Slashing is caused by factors outside their control (such as hacker attacks or problems in the blockchain). By participating in Staking, therefore, the User accepts the risk that Slashing may result in a partial or total loss of the value of the cryptocurrencies “locked” in Staking and the associated rewards. In the case of Slashing, Young Platform cannot be held liable in any way for any consequential damages and/or losses.

6.5 The User declares that he/she fully understands the risks associated with Staking cryptocurrencies, including the risks of loss of invested capital, market volatility, technical problems and Provider default. The User undertakes to adequately inform himself of the specific characteristics of each cryptocurrency and each Provider before making any decision. The User assumes full responsibility for all decisions related to Staking, including the choice of cryptocurrencies, Providers, and amounts to be allocated. The Company does not provide any form of financial or investment advice, and the User is advised to consult a qualified professional if in doubt or in need of assistance.

Commissions

7.1 The use of the Staking Service offered by Young Platform involves the application of fees, the specific methods and amounts of which are detailed within the Configurations for each cryptocurrency and Staking Provider combination.

7.2 The fees applied by the Company may include, but are not limited to, the following types:

Deposit Fees: Fees are charged when cryptocurrencies are deposited onto the Young Platform, provided such cryptocurrencies are intended to be used for the Staking Service.
Withdrawal Fees: Fees charged at the time of withdrawal of cryptocurrencies from the Young Platform, whether for the withdrawal of staked cryptocurrencies or the rewards generated from staking.
Reward Fees: Fees are calculated as a percentage of rewards generated from staking and deducted directly from such rewards before they are credited to the User’s account.

7.3 The amount of fees charged may vary depending on various factors, including:

Cryptocurrency: Fees may differ based on the specific cryptocurrency involved in staking.
Staking Provider: Each Staking Provider may have different economic conditions, which are reflected in the fees charged by Young Platform.
Market Conditions: In certain cases, fees may be influenced by prevailing conditions in the cryptocurrency market, such as volatility or liquidity of a particular cryptocurrency.

7.4 It is specified that fees will be applied by Young Platform when the User decides to proceed with the Unstake, whether for a single stake or upon closing the Position.

7.5 Young Platform is committed to ensuring maximum transparency regarding the applied fees, providing the User with all necessary information within the Staking Configurations and through other appropriate communication channels. The User is advised to carefully review such information before initiating any staking operation.

Staking Operation Modes

Staking with Lido (Ethereum)

For this type of staking, known as “Liquid Staking,” Young Platform uses Lido https://lido.fi/, whose T&Cs are available at the following link: https://lido.fi/terms-of-use.

Staking Start: When users decide to stake their ETH, they must specify the desired amount, respecting the minimum and maximum limits defined in the applicable Configuration. Young Platform will verify the availability of Wrapped Staked Ether (wstETH) to ensure the execution of the staking activation request.
Conversion and Activation: After a configurable technical delay (usually between 24 and 48 hours) required to manage fund transfers and conversions, the User’s ETH will be converted into wstETH from Young Platform’s reserves. It should be noted that the provider determines the conversion rate from ETH to wstETH. Once the conversion is completed, the User’s individual Stake will become active. Therefore, each Staking Position must have at least one Stake. However, the User can decide how many Stakes to activate within each Position. As previously mentioned, the User may choose to perform an Unstake for the entire Position or only for one active Stake.
Reward Calculation: Young Platform will monitor the price of wstETH relative to ETH, recording the exchange rate at the time of staking activation and tracking daily variations to calculate rewards. The displayed APY represents the average of the last 30 calendar days of on-chain rewards for Lido, net of Young Platform’s fees. Rewards generated by Users will be automatically reallocated to staking, gradually increasing the amount staked over time.
Unstaking Process: The User may decide to unlock one or more Stakes within a Position, up to a maximum of all active Stakes. At the time of Unstake, a reward fee will be applied, as specified by the applicable parameter. If the calculated fee is below the minimum threshold, the minimum fee will be applied. Additionally, there may be a delay before the funds from the unlocked Stakes are returned due to the on-chain deactivation procedures. Once the deactivation period is complete, the originally staked amount and any rewards (net of fees) will be returned to the User’s main wallet.

“Proof of Stake” Staking with Provider

The Staking Service is provided exclusively through the Provider itself. Specifically, for this type of Staking, Young Platform makes use of providers such as Fireblocks https://www.fireblocks.com/ and Kiln https://www.kiln.fi/, whose terms and conditions are available at the following link: https://www.kiln.fi/terms-and-conditions.

The Staking Service is provided exclusively through the Provider. For simplicity, we will use Solana (SOL) as an example to illustrate the process, but the same conditions apply to all other supported cryptocurrencies.

Staking Start: To stake SOL, the User must specify the desired amount within the minimum and maximum limits defined in the Configuration. Each staking action generates an on-chain transaction, transferring the User’s SOL to a dedicated staking account created for them. Due to Solana network protocols, a delay (typically more than 48 hours) may occur before staking becomes active.
Reward Calculation: Rewards accrue at the end of each Epoch of the Solana blockchain. Rewards are recognised only at the end of the Stake and once the Unstake process is completed.
Unstaking Process: The User may request to Unstake their SOL anytime, provided the Stake is active. Due to network protocols, the Unstake process involves on-chain transactions, which may take more than 48 hours. Once the deactivation period is complete, the User’s SOL and the rewards (net of fees) will be returned to their main wallet.

Data Processing

9.1 Young Platform is committed to processing the User’s personal data in full compliance with applicable data protection regulations, including the General Data Protection Regulation (GDPR) and the Personal Data Protection Code (Legislative Decree 196/2003 and subsequent amendments).

9.2 The User acknowledges that Young Platform will process their personal data in accordance with the Company’s Privacy Policy, which is available on the Company’s website. The Policy provides comprehensive details on the purposes of processing, methods of data collection and storage, User rights, and any other relevant aspect concerning privacy.

9.3 To ensure the provision of the Service, it may be necessary for Young Platform to share specific User personal data with selected Staking Providers. Such data sharing will occur exclusively to the extent strictly necessary to allow the Providers to perform the technical and operational activities related to the staking process. User personal data that may be shared with Staking Providers includes, but is not limited to:

Identification Data: name, surname, date of birth, residence address, nationality;
Contact Data: email address, phone number;
Young Platform Account Data: user ID, account balance, transactions performed;
Staking Data: cryptocurrencies staked, amounts, selected providers, and rewards generated.

9.4 Young Platform is committed to carefully selecting Staking Providers and, where necessary, entering into contractual agreements with them to ensure the adoption of adequate security measures for protecting the User’s data. Providers will also be bound to comply with applicable data protection regulations and may process User data solely for purposes strictly related to providing the Staking Service.

Applicable Law and Jurisdiction

10.1 These Terms and Conditions are governed by Italian law. The court of competent jurisdiction for all disputes between the Parties arising from or relating to this contractual relationship is the court of Turin unless consumer protection regulations apply (e.g., Legislative Decree of September 6, 2005, No. 206).

Amendments to the Terms and Conditions

11.1 Young Platform reserves the right to modify, supplement, or update these Terms and Conditions, as well as the Staking Configurations, at any time in order to adapt to regulatory, technological, commercial, or other changes.

11.2 Any modification to the Terms and Conditions or Configurations will be communicated to Users with reasonable notice through the Company’s communication channels.

11.3 The User’s continued use of the Service after notification of changes to the Terms and Conditions or Configurations will be considered implicit acceptance of the changes. Suppose the User does not wish to accept the changes made. In that case, they may discontinue use of the Service and, if applicable, request the unlocking of staked cryptocurrencies according to the stipulated procedures.

Tax Treatment of Rewards

12.1 The User acknowledges that rewards generated by the Staking activity may be subject to taxation by the tax legislation in the User’s country of residence or tax domicile.

12.2 Young Platform does not provide tax advice and is not responsible for calculating, declaring, or paying any taxes owed by the User in connection with the Staking Rewards.

12.3 It is the User’s responsibility to inform himself/herself about the tax implications of the Staking activity and to comply with all tax obligations required by law. It is advisable to consult a qualified tax professional for personalised advice.

Miscellaneous

13.1 By accessing and using the Service offered by Young Platform, the User expressly declares:

I have carefully and fully read these Terms and Conditions and the applicable Privacy Policy and Staking Configurations.
I fully understand the contents of the above documents, including the risks associated with cryptocurrency staking and Young Platform’s limitations of liability.
Unconditionally accept all the terms, conditions, and provisions in these Terms and Conditions, the Privacy Policy, and the Staking Configurations.

13.2 The User’s acceptance of these Terms and Conditions is binding and creates a legally valid agreement between the User and Young Platform. This agreement governs all aspects of your use of the Service and defines the mutual rights and obligations of the parties involved. Young Platform reserves the right to change the Terms and Conditions unilaterally and the Staking Configurations by giving Users reasonable notice. Continued use of the Service after notice of changes implies acceptance thereof.

13.3 Young Platform reserves the right, at its sole discretion and without prior notice, to suspend or terminate your account and access to the Staking Service if you breach these Terms and Conditions or any other policy or regulation of Young Platform in the event of fraudulent, suspicious or illegal activity, or attempt to circumvent the security measures of the platform; or for any other reason deemed justified by Young Platform, to protect its interests or the security of the platform and other Users.

13.4 Should one or more clauses of the Terms and Conditions be declared null, void, or invalid, the remaining clauses shall nevertheless remain valid and effective.

13.5 These Terms and Conditions, together with the Privacy Policy and the Staking Configurations, constitute the entire agreement between you and Young Platform regarding your use of the Service, superseding any prior agreement or understanding, oral or written, between the parties.

13.6 Young Platform reserves the right to revise this document to incorporate possible regulatory changes and to guarantee better the Users who intend to activate the Staking Service. In such cases, the Company may not make the activation of new Positions and/or Stake available for a given time, which will be communicated in advance to the Users with suitable notice.

Last updated 12.11.2024