Terms and Conditions
Mining for Customers
(A) Hydrominer. Hydrominer IT-Services GmbH is an Austrian limited liability company (Gesellschaft mit beschränkter Haftung), registered in the commercial (company) register under registration number FN 480790 w, with its registered seat at Wiedner Hauptstraße 65, 1040 Vienna, Austria (“Hydrominer”). Hydrominer’s main business is the mining of virtual currencies such as Bitcoin, Ether, Dash, Litecoin, and others.
(B) Customer. The Customer of Hydrominer intends to purchase Mining-Packages for virtual currency mining in the online shop under https://portal.hydrominer.org (“Web Shop”) at the prices quoted in the Web Shop.
(C) Scope. These Terms and Conditions govern the reciprocal rights and obligations of Hydrominer and the Customer in connection with the purchase of a Mining-Package and the performance of the mining by Hydrominer on behalf of the Customer. The Customer must expressly agree to these Terms and Conditions before purchasing a Mining-Package.
§1. Definitions and Interpretation
(1) Defined Terms. Unless the context clearly implies a contrary intention of the Parties, the terms of this Contract shall have the following definitions:
“Change Fee” means changes to the Mining-Package whereby the Customer incurs a fee; before making any paid changes to the Settings of its Mining-Hardware, the Customer will be explicitly notified of the cost on the Dashboard and be asked to confirm such costs.
“Amending Agreement” means amendments of the Mining-Package with regard to the Settings made by the Customer.
“Dashboard” means the personal mining dashboard where the Customer can exercise its rights as outlined in § 2.
“Settings” mean various parameters in the Dashboard with respect to the Mining-Hardware that the Customer may freely change from time to time; particular Settings are outlined in subparagraphs (a) through (d) in paragraph (1) of § 5.
“Hydrominer” has the meaning defined in Preamble (A); Hydrominer is an Austrian limited liability company (Gesellschaft mit beschränkter Haftung), registered in the commercial (company) register under registration number FN 480790 w, with its registered seat at Wiedner Hauptstraße 65, 1040 Vienna, Austria.
“Purchase Price” is the fee paid by the Customer to Hydrominer for the provision of the Mining-Hardware with the selected Mining-Performance during the selected Mining-Period.
“Customer” has the meaning defined in Preamble (B); the Customer purchases one or more Mining-Packages in accordance with these Terms and Conditions.
“Customer Rights” are the rights referred to in subsections (a) through (e) of paragraph (4) in § 2.
“KYC Questionnaire” is the form attached hereto as Schedule 2.
“KYC Documents” are the documents referred to under subparagraphs (a) through (d) in paragraph (3) of § 2; the Customer must submit the KYC Documents before the purchase of a Mining-Package is permitted.
“Mining-Algorithms” mean the algorithms used for the mining of a given virtual currency.
“Mining-Facilities” mean the hydro power stations of Hydrominer; located in the Austrian Alps region.
“Mining-Period” means the chosen duration of the Mining-Package.
“Mining-Performance” means the computing power of the Mining-Hardware with respect to a particular Mining-Algorithm; indicated in MH/S, GH/S or TH/S.
“Mining-Package” means the various combinations of Mining-Hardware, Mining-Period and Mining-Performance available for purchase by a Customer.
“Portal” means https://portal.hydrominer.org.
“Notice of Withdrawal” means a notice from the Customer to Hydrominer to withdraw from the contract, the Notice of Withdrawal can be made by using the form attached hereto as Schedule 3.
“Withdrawal Period” means the right to withdraw from the purchase of a Mining-Package within 14 days after conclusion of the contract, if the Customer is a consumer within the meaning of § 1 KSchG.
“Right of Withdrawal” is the right of a Consumer to withdraw from the purchase of a Mining-Package according to § 4 of these Terms and Conditions.
“Contract Offer” means an offer by the Customer to conclude a new contract for a chosen Mining-Package; by confirming the summary and the Customer’s declaration that he ordered the selected Mining-Package for a fee, the Customer makes a Contract Offer to Hydrominer.
“Web Shop” has the meaning defined in Preamble (A).
(2) Definitions in Contract Text. Occasionally terms are defined in the text of this Contract. Such defined terms are placed in parentheses and quotes in bold. The definition refers to the relevant phrases before the parenthesized expression. These terms are included in the list of § 1 paragraph (1) with a summary of the meaning and a reference to the actual definition point. Terms defined in this way have the defined meaning throughout the Contract. Comprehensive explanations in the list of § 1 paragraph (1) serve as an aid to interpretation.
(3) Balanced Contract. Hydrominer attaches particular importance to a clear and unambiguous wording of this Contract. The rights and obligations of Hydrominer and the Customer should be unequivocally expressed. Nevertheless, if a wording in this Contract allows for multiple interpretations, preference shall be given to the interpretation that creates a fair distribution of rights and obligations between the Parties.
§ 2. Registration, Customer Identification, Dashboard
(2) Limited Dashboard. Upon receipt of the data, Hydrominer will send a confirmation e-mail to the Customer. After confirmation by the Customer, the Customer receives limited access to the Customer overview at https://portal.hydrominer.org (the “Dashboard”). In the Dashboard, the Customer initially can only manage his master data and complete the KYC check by Hydrominer according to paragraph (3).
(3) KYC Verification. The purchase of a Mining-Package is only permitted after the Customer has proven his identity to Hydrominer by uploading suitable documents, namely:
(a) a completed and signed questionnaire (the “KYC Questionnaire”, Schedule 2); and
(b) front and back of an official photo ID; and
(c) proof of Customer address, such as the scan of a utility bill showing the name and address of the Customer; and
(d) a self-portrait of the Customer, in which the photo ID shown next to the Customer is clearly recognizable.
The documents referred to under subparagraphs (a) through (d) in this paragraph (3) are hereinafter also referred to as the “KYC Documents”.
(4) Advanced Dashboard. After Hydrominer has received and verified the KYC Documents, Hydrominer can decide to give the Customer access to the Dashboard’s advanced features. However, Hydrominer reserves the right to request additional KYC Documents or to refrain from unlocking advanced features of the Dashboard without giving any reason. The advanced functionality of the Dashboard includes the ability to exercise all the rights that the Customer has under these Terms and Conditions, including:
(a) to purchase one or more Mining-Packages pursuant to § 3;
(b) to exercise the Right of Withdrawal according to § 4 insofar as this can be exercised by the Customer in accordance with the provisions stated therein;
(c) to freely determine the parameters for mining with the purchased Mining-Package(s) pursuant to § 5, including a change of virtual currency, if permitted by the provisions of § 5;
(d) to inspect the Mining-Result of the purchased Mining-Packages according to § 6; and
(e) to demand a distribution of the coins generated by the Mining-Package(s) pursuant to § 6.
(5) Customer Rights. The rights referred to in paragraph (4) subsections (a) through (e) are also referred to below as the “Customer Rights”. Hydrominer reserves the right to provide the Customer additional functions in the Dashboard.
§3 Purchase of Mining-Packages
(1) Use of the Dashboard. The Customer can purchase Mining-Packages from Hydrominer using the Dashboard. Hydrominer reserves the right to continuously change the details of the Mining-Packages offered for purchase and to offer new Mining-Packages. Each purchase of a Mining-Package is a separate contract with Hydrominer for the provision of the selected Mining-Hardware with the selected Mining-Performance over the selected Mining-Period in accordance with paragraph (2) of this § 3. The respective concluded contracts for Mining-Packages are service contracts in the sense of § 11 Abs 1 Z 1 FAGG.
(2) Subject of the Contract. The subject of a Mining-Package is the provision of a specific Hydrominer Mining-Hardware to the Customer, whereby the Mining-Packages differ in the following factors:
(a) Mining-Hardware; the selected Mining-Hardware is suitable for one or more specific Mining-Algorithms;
(b) Mining-Performance; the Mining-Performance determines the computing power of the Mining-Hardware with respect to a particular Mining-Algorithm; indicated in MH/S, GH/S or TH/S;
(c) Mining-Period; the Mining-Period determines the duration during which the Mining-Hardware is operated by Hydrominer on behalf of the Customer;
(d) Remuneration; the fee paid by the Customer to Hydrominer for the provision of the Mining-Hardware with the selected Mining-Performance during the selected Mining-Period; the fee is also referred to below as the “Purchase Price”.
The various combinations of Mining-Hardware, Mining-Period and Mining-Performance are also referred to as “Mining-Packages”.
(3) Contract Offer. The contract is initiated by selecting the desired Mining-Package in the Dashboard and following the steps in the Dashboard to conclude the contract. Before any offer to purchase a Mining-Package, the Customer will receive a summary of the order. By confirming the summary and the Customer’s declaration that he ordered the selected Mining-Package for a fee, the Customer makes an offer to Hydrominer to conclude a new contract for the chosen Mining-Package (“Contract Offer”).
(4) Conclusion of a Contract. After Hydrominer has received the Contract Offer of the Customer, Hydrominer will confirm the Contract Offer by email within 24 hours. With this confirmation, the contract for the Mining-Package is effectively concluded and the Customer’s obligation to pay arises.
(5) Payment Required. The Purchase Price including VAT for the Mining-Package is due for payment immediately after conclusion of the contract. The Customer can already choose from various payment options when submitting a Contract Offer to Hydrominer, such as payment by PayPal, payment by Bitcoin or Altcoins, payment by bank transfer, payment by iDEAL, payment by ING Home’Pay, payment by KBC / CBC Payment, or payment via immediate transfer. Hydrominer reserves the right to adjust the payment options on an ongoing basis.
(6) Consequences of Non-Payment. In case of late payment, Hydrominer will charge default interest of 4% per annum. In addition, Hydrominer is entitled to withdraw from the contract with regard to the newly acquired Mining-Package in the event of non-payment for at least 14 days.
§ 4. Mining-Period & Right of Withdrawal
(1) Contract Term. The contract for a Mining-Package is concluded for the chosen duration of the Mining-Package and thus for a limited period of time (the “Mining-Period”). Termination before the end of the Mining-Period is mutually excluded.
(2) Right of Withdrawal. If the Customer is a consumer within the meaning of § 1 KSchG, he has the right to withdraw from the contract within 14 days after conclusion of the contract (the “Withdrawal Period”) (“Right of Withdrawal”). For example, the Right of Withdrawal may be exercised by notifying Hydrominer by means of a clear statement to Hydrominer’s e-mail address ([email protected]); the Customer can also use the withdrawal form in Schedule 3 (the “Notice of Withdrawal”). A Notice of Withdrawal must actually arrive at Hydrominer in order to be effective.
(3) Legal Consequences. In the event of cancellation under paragraph (2) of this § 4, Hydrominer will refund the Purchase Price in the same manner as the Customer used to pay Hydrominer the Purchase Price. In the case of a transfer of Bitcoin or Altcoins, Hydrominer will return the same amount of Bitcoins or Altcoins to the Customer. Refund will be made within 14 days of the date on which Hydrominer received a Notice of Withdrawal. Consumers will not be charged for the refund.
§ 5. Mining Parameters
(1) Dashboard Settings. In the Dashboard, Hydrominer offers the Customer the possibility to freely choose various parameters related to the Mining-Hardware (the “Settings”). This provides the Customer with an ongoing direct and continuous decision-making power over all operational action related to the daily use and management of the Mining-Hardware. The parameters for setting the Mining-Hardware are, in particular:
(a) Virtual Currency; the Customer can choose from various virtual currencies displayed in the Dashboard; only those alternative virtual currencies are displayed which are supported by the Mining-Hardware due to the Mining-Algorithm;
(b) Mining-Pool; the Customer can choose whether and, if applicable, to which Mining-Pool the Mining-Hardware should be connected; Hydrominer recommends connection to a Mining-Pool;
(c) Mining-Software; the Customer can choose which Mining-Software to run on the Mining-Hardware; Hydrominer may also make available certain parameters of the Software in the Settings;
(d) Distribution; the Customer may choose to collect the coins generated by the Mining-Hardware prior to Hydrominer distributing them to the Customer from a Hydrominer Collection Address, or to transmit them to a Customer-specified address without the intervention of Hydrominer; Furthermore, the Customer can freely choose the distribution address on the respective blockchain.
(2) Enhancements, Hardware Access. Hydrominer reserves the right to provide additional parameters customizable by the Customer. The Dashboard does not provide direct access to the Mining-Hardware, but allows the Customer to configure the above Settings.
(3) Free and Paid Changes. Hydrominer will indicate in the Dashboard whether a change will be made to the Customer free of charge or whether the Customer will be charged a fee for the change (the “Change Fee”). Changes that cannot be handled automatically by Hydrominer will only be offered for a Change Fee.
(4) Free Changes. Changes made by the Customer on a specific day (24:00 CET) and offered for free by Hydrominer will be implemented by Hydrominer by the following day (0:00 CET to 24:00 CET) and will be effective until the Customer changes the Settings again. Within the daily routine of the day on which the Customer made the change of the Settings, the Mining-Package will be amended with regard to the Settings made by the Customer (“Amending Agreement”).
(5) Paid Changes. Before making any paid changes to the Settings of its Mining-Hardware, the Customer will be explicitly notified of the cost on the Dashboard and asked to confirm the costs. This confirmation will also result in an Amending Agreement to the Mining-Package contract and the Customer’s obligation to pay will be incurred.
(6) Payment Obligation. The provisions of § 3 paragraph (5) apply to the payment of the Change Fee. In the event of non-payment of the change fee, the provisions of § 3 paragraph (6) shall apply, but only with regard to the Amending Agreement.
(7) Implementation Deadline. In the case of free changes, Hydrominer will make the changes within the day on which the Settings become effective for the Customer, if that day is a business day in Austria, otherwise no later than the business day following that day. The same applies in the case of fee-based changes, with the proviso that these will be implemented at the earliest on the day the payment is received by Hydrominer.
(8) No Right of Withdrawal. With regard to a fee-based Amending Agreement, the Customer has no Right of Withdrawal.
(9) Change of Mining-Hardware. If the Customer desires to mine a virtual currency based on a Mining-Algorithm that is not supported by the selected Mining-Hardware, the Customer can send Hydrominer a request via the Dashboard. Hydrominer will then notify the Customer of any change in Mining-Hardware, associated costs, and the earliest possible date for the change in Mining-Hardware. The Customer is not entitled to such a change of the Mining-Hardware.
§ 6 Inspection of Mining-Results
(1) Dashboard Observation. The Customer may continuously inspect the Mining-Result in the Dashboard. The Mining-Result includes an overview of the last blocks found with the Mining-Hardware and the Block Rewards that a Customer receives. If the Mining-Hardware is operated by the Customer as part of a Mining-Pool, this includes the pro rata Block Reward and the results that this Mining-Pool has recorded.
(2) Enhancements. Hydrominer reserves the right to provide further inspection options for the Customer in the Dashboard.
§ 7. Distribution of Mined Coins
(1) Dashboard Settings. In the Dashboard, Hydrominer provides the Customer with the ability to choose whether to collect the coins generated by the Mining-Hardware prior to distributing them to the Customer from a Hydrominer Collection Address, or to transfer them to a Customer-specified address without the intervention of Hydrominer.
(2) Distribution. If the Customer has opted to collect the coins generated by the Mining-Hardware prior to their distribution to the Customer from a Hydrominer Collection Address, the Customer may at any time request that such coins be transferred to a different address on the relevant Blockchain. However, this requires that the minimum amount for a distribution is reached and displayed in the Dashboard; currently, these minimum levels are 0.005 Bitcoin, 0.05 Ether, 2 Ether Classic, 0.05 Bitcoin Cash.
(3) Withdrawal Period. During the Withdrawal Period, the Customer may not cause any distribution of virtual currencies. A distribution is therefore permitted for the first time at the end of the Withdrawal Period.
§ 8. Mining by Hydrominer
(1) Mining. Hydrominer will start operating the Mining-Hardware used with the Mining-Package purchased by the Customer within 24 hours after the Mining-Package has been paid in full and will manage the Mining-Hardware for the duration of the Customer’s Mining-Period.
(2) Mining to Customer Specification. Hydrominer will use the Mining-Hardware according to the Settings for the mining of virtual currency set by the Customer in the Dashboard. The Mining-Hardware is operated only for the Customer and not for other Customers. The Mining-Hardware also is not operated for Hydrominer itself. The provided Mining-Performance is therefore fully provided to the Customer and at no time is there any mixing of Mining-Performance provided to other Customers.
(3) Property. The Mining-Hardware is owned by Hydrominer. The Customer acknowledges that he has no right to remove the Mining-Hardware and no direct access to the Mining-Hardware. Hydrominer reserves the right to make any changes or updates to the Mining-Hardware at any time to service, upgrade or debug the Mining-Hardware.
(4) No Guaranteed Mining-Performance. Hydrominer expressly disclaims any achievement of Mining-Performance. The Customer warrants to Hydrominer that it has received full information regarding the anticipated Mining-Performance in relation to the relevant virtual currency. Hydrominer makes no warranty regarding the performance of the Mining-Hardware and the respective virtual currency.
(5) No Guaranteed Yield. Hydrominer expressly disclaims any particular revenue derived from the use of the Mining-Hardware, neither (a) with respect to a certain amount of virtual currency units produced nor (b) with respect to any amount of Euro resulting from the sale of the virtual currency through exchanges for virtual currencies.
(6) Mining-Software. Before use in the Mining-Facilities, Hydrominer will install third-party software on the Mining-Hardware suitable for the mining of certain virtual currencies. The Customer agrees that, apart from the alternatives available on the Dashboard, no other software will run on the Mining-Hardware. The Customer does not have the right to install or run other software on the Mining-Hardware.
§ 9. Technical Inquiries
(1) Support. The Customer can direct questions to Hydrominer by creating a support ticket on the Dashboard. The Customer may communicate with Hydrominer in German or English.
(2) Scope. Inquiries are limited in scope to technical issues concerning Mining-Packages, the Dashboard, the Web Shop, or related issues. In its sole discretion, Hydrominer may choose not to respond to unrelated inquiries.
(3) Response Time. Hydrominer undertakes to respond to support tickets within a reasonable time.
(4) No Charge. Submitting a support ticket is free of charge.
§ 10. Warranty & Liability
(1) Warranties by Hydrominer. Hydrominer warrants to the Customer that the Mining-Hardware will be able to mine the selected virtual currency and will be free from technical defects. Hydrominer further warrants:
(a) that Hydrominer will maintain the Mining-Hardware for the duration of the contract and will keep the Mining-Hardware in good order, at least in an operational readiness of 95 %, calculated for a whole year;
(b) that Hydrominer will maintain the Mining-Facilities for the duration of the contract and will provide for sufficient electrical power and connection to the Internet to mine the selected virtual currency.
(2) Liability of Hydrominer. The liability of Hydrominer for ordinary negligence in connection with pure financial loss is excluded. Furthermore, the Parties agree that Hydrominer is in no case liable for damages or lost profit of the Customer due to the temporary unusability of the used Mining-Hardware or the Dashboard. The Customer expressly acknowledges that repairs and maintenance may result in breakdowns and interruptions of the Mining-Hardware. Hydrominer is expressly not responsible for any lower Mining-Performance.
§ 11. Changes to these Terms & Conditions
(1) Subsequent Changes. The opportunity to subsequently change these Terms & Conditions agreed between Hydrominer and the Customer were expressly negotiated. Changes will be offered to the Customer no later than two months before the proposed date of entry into force with reference to the relevant provisions.
(2) Consent. Consent shall be deemed granted if objections are not received by Hydrominer by the proposed date of entry into force. The Customer is informed of his right of objection. Hydrominer will publish on its homepage a comparison of the affected provisions in the Terms and Conditions as well as a complete version of the new Terms and Conditions for their entry into force.
§ 12. Miscellaneous
(1) Entire Agreement. These Terms and Conditions govern the entire contractual agreement between Hydrominer and the Customer regarding the purchase and use of Mining-Packages and supersede all prior written or oral commitments, understandings or agreements. General terms and conditions of the Customer are expressly objected, so that they are not part of the contract.
(2) Taxes. If the Customer is not resident in Austria, the Customer must timely notify Hydrominer of the applicable tax conditions of his country of residence in order for Hydrominer to issue an invoice with a correctly stated tax.
(3) Prohibition of Assignment. The assignment of rights and obligations under this contract by the Customer requires the prior express written consent of Hydrominer.
(4) Writing. Changes and/or additions to contracts concluded under these Terms and Conditions must be in writing or at least electronically confirmed by the Customer and Hydrominer.
(5) Severability. If the Customer is not a consumer within the meaning of § 1 KSchG, the following applies: Should one or more of the provisions or parts of any provision of these Terms and Conditions be or become void, unlawful or unenforceable, the validity, legality or enforceability of the remaining provisions shall not be affected thereby and the Parties shall make reasonable efforts to agree on a new provision which has such legal and, above all, economic content as the invalid provision or which comes closest to it and complies with the purpose of these Terms and Conditions.
(6) Applicable Law. This contract and all non-contractual obligations arising out of or in connection with it shall be governed in all respects by Austrian law, to the exclusion of the conflict of law rules of Austrian International Private Law and the UN Convention on Contracts for the International Sale of Goods.
(7) Disputes. If the Customer is not a consumer within the meaning of § 1 KSchG, the following applies: All disputes arising from this contract or in connection with its infringement, termination or invalidity shall be settled by the competent commercial court (Handelsgericht) in Vienna, Austria.
(8) Language. In case of differences between the German and the English version of these Terms and Conditions, the German version of the text shall prevail.
|By providing my signature at the end of this Questionnaire, I confirm:
(a) to have read, understood and agree to the Terms and Conditions, available under
(c) that the purchase of any Mining-Package is made in my own name and on my own account and not upon third party instruction;
(d) that the purchase of any Mining-Package neither serves for money laundering nor terrorism financing purposes; and
(e) that I am neither a politically exposed person myself nor a family member of a politically exposed person.
Please upload the signed KYC Questionnaire to the
Hydrominer Mining Portal (https://portal.hydrominer.org)
Notice of Withdrawal
ATTN: Hydrominer IT-Services GmbH, FN 480790 w
By providing my signature at the end of this Notice of Withdrawal, I
|Last Name||Fist Name|
|Street, No.||ZIP Code, Town|
|Telephone Number||E-mail Address|
|Please provide your personal details in CAPITAL LETTERS.|
hereby exercise my right of withdrawal and revoke the purchase of
|Name of Mining-Package||Date of Purchase|
Withdrawal is not effective until actual notice is received by Hydrominer.
A completed Notice of Withdrawal may be sent to Hydrominer via email at [email protected]
Hydrominer IT-Services GmbH (“Hydrominer”) operates the mining of virtual currencies and sells Mining-Packages (“Mining-Packages”) to customers. So far, virtual currencies have not been regulated in many areas of the world and are not recognized as legal tender. For this reason, there are all sorts of risks involved in the mining of virtual currencies.
Before concluding the contract, interested parties should read the following risk factors fully and carefully, analyze the risks and base their decision on these risks. The following list of risk factors includes the risks currently known which are considered to be material by Hydrominer. It is not an exhaustive list of all risks that might arise in connection with virtual currencies.
In addition to the risks presented, other risks currently unknown to Hydrominer may occur. Risks currently considered insignificant by Hydrominer may subsequently prove material. The following ranking of the risk factors does not contain any information about the likelihood of occurrence or the extent or significance of the individual risks.
Due to the risk factors presented, it is recommended that only freely disposable capital is used to invest in virtual currencies and related products and services. It is not recommended to finance an investment in virtual currencies with borrowed capital, since a total loss of the invested assets cannot be ruled out.
The exchange rate of virtual currencies is highly volatile and is determined solely by supply and demand
The exchange rates of virtual currencies, despite widespread acceptance, are still subject to strong fluctuations, which is why virtual currencies are classified as high-risk investments. The virtual currency market is not subject to any state control and influence and is therefore completely influenced by supply and demand. For speculators, these price fluctuations are often interesting and lucrative, but are contrary to the goal of a virtual currency as a means of payment or recognition as a legal tender. Due to the volatility of the exchange rate, virtual currencies cannot be considered a safe investment compared to traditional savings or investment opportunities. In addition, bitcoin and other virtual currencies may not be of interest to certain large investors and speculators, with increased stability of the exchange rate, leading to an outflow of investment in these virtual currencies. This uncertainty must be taken into account in the purchase decision. Hydrominer is not liable for any loss of value of virtual currencies.
Warnings from states or their authorities may have a major impact on the price of virtual currencies
In recent years, governments have increasingly issued warnings about virtual currencies, as well as authorities such as banking regulators. These warnings and statements can have a strong impact on the price of virtual currencies. In addition, it is unclear how banks, credit card companies and other providers of payment services will react to virtual currencies. On the one hand, they could embrace virtual currencies. On the other hand, it is possible for banks and payment service providers to argue in favor of regulation or supervision by an authority in order not to be pressured by virtual currencies in their business model. This uncertainty must be taken into account when purchasing Mining-Packages.
There is no single deposit guarantee for virtual currencies compared to savings on bank accounts
In the absence of clear legal regulation and institutions overseeing the network of virtual currencies, there is no deposit insurance such as savings on bank accounts. Trading platforms and exchange platforms have no legal obligation to provide security for any balances on accounts. The strict equity capital rules that serve to protect creditors and prevent insolvency are, in principle, only applicable to banks. Investor protection for investors also does not exist in these cases. The customer must bear any loss of virtual currencies. This uncertainty must be taken into account when purchasing Mining-Packages.
The customer is responsible for the secure storage and handling of his accounts
The customer is responsible for the safekeeping of all necessary data, which are necessary in connection with the transfer of virtual currency units and access to accounts. There is no institution like a bank or any other government agency to hold virtual currencies. In the event of loss of currency units or expiry for other reasons which are not the responsibility of the buyer, there is no possibility to indemnify oneself. This uncertainty must be taken into account when purchasing Mining-Packages.
Loss of the private key threatens the total financial loss of virtual currency units
Unlike credit cards or other payment cards, a credit-card lock or contacting an institution is not provided if the private key is lost. Virtual currency can thus only be provided by means of the private key. If the private key is lost or someone else gains access to the private key, the units available on the associated address are lost to the owner. A refund or recovery is not possible. This uncertainty must be taken into account when purchasing Mining-Packages.
Theft of the private key and access to the wallet
Thieves could try to obtain the private key of an address on the blockchain or to copy the data of a user’s wallet by means of malware. In such cases, the victim usually faces a total loss of his virtual currency units. Wallets as well as trade and exchange platforms do not always meet the appropriate security standards to ward off such dangers. Secure access to these services and platforms is therefore not guaranteed. This uncertainty must be taken into account when purchasing Mining-Packages.
In the case of a financial crisis, there is no third-party checking the system of virtual currencies, which leads to an increased uncertainty comparted to conventional currencies and means of payment
The financial and debt crisis of the last decade has led to increased caution and, in some cases, to increased market control and oversight. In contrast, there is no neutral third party for the virtual currency market that oversees and controls the trading of virtual currencies. Therefore, it is currently impossible to influence the exchange rate of virtual currencies. Possibilities of control or certain stability mechanisms, such as those available to central banks, do not exist. In case of economic collapse or sharp drop in the exchange rate of a virtual currency, there is no possibility to take countermeasures. In the event of a crisis, enormous economic damage could arise as the virtual currencies depreciate and this loss in value could otherwise not be compensated. European countries have in the past provided some security in the market by providing financial support to banks in times of crisis. If the price of a virtual currency declines or the virtual currency trading platforms collapse, comparable solidarity and support is not expected. This uncertainty must be taken into account when purchasing Mining-Packages.
There are hardly any legal regulations at European and international level
Virtual currencies have not yet experienced sound and clear legal regulation. There is therefore a danger that virtual currencies will simply be declared illegal or at least not clearly regulated by law. In addition, it is unpredictable whether the government seeks a measure of moderation that does not overregulate and overwhelm the market for virtual currencies. The mining of virtual currency has also not been regulated by law and it is also unpredictable here whether and to what extent the legislator intervenes in a regulatory manner. This not only entails economic but also legal risks with regard to the integration of virtual currencies into the legal system. In particular, it is questionable whether virtual currencies have tax consequences. Private law issues such as the creation of ownership, ownership or liens on virtual currency units, which are of great importance for commercial traffic, are also not clarified. All these and other legal issues can only be clarified by the legislator. However, this has not happened in many parts of the world. This uncertainty must be taken into account when purchasing Mining-Packages.
Lack of protection in the execution of transactions
A transaction of virtual currency units can generally not be reversed. Therefore, in the realm of virtual currencies, there is a risk of no longer recovering virtual currency units following mismanaged transactions. This leads to an increased risk of loss if a transaction is sent to the wrong recipient or if a contract is terminated. Often it will be impossible to undo the erroneous transaction. The anonymity of the parties to the payment transaction also makes it difficult to get in touch in the event of failed transactions. This uncertainty must be taken into account when purchasing Mining-Packages.
The acceptance of some virtual currencies is pushing other virtual currencies out of the market
There are currently no restrictions on the creation of new virtual currencies, which has led to a proliferation of different virtual currencies. Some of these currencies are far more successful than others and have significantly more market share and market potential. Therefore, there is a risk that one virtual currency will be pushed back by the success of another and thus lose significant value. In the long run, there are likely to be a few virtual currencies in the marketplace. The buyer, who receives virtual currency units from Hydrominer, thus does not guarantee that the respective virtual currency is an investment for the future. This uncertainty must be taken into account when purchasing Mining-Packages.
There is a risk of hacker attacks on trading and exchange platforms and wallets
Trading and exchange platforms and wallets have been increasingly targeted by hackers in the past. Such attacks by hackers are usually hard to trace, and the individual account owner must be responsible for the damage and costs incurred by the hacker attack. In principle, there is no insurance if a hacker successfully hacked a wallet operator. In addition, it is not clear in individual cases whether trade and exchange platforms meet the appropriate security standards necessary to hinder or ward off attacks by hackers. This uncertainty must be taken into account when purchasing Mining-Packages.
The technology is still in its infancy and is not ready for the mass market
The technology and software behind virtual currency and blockchain technology are still in their infancy. Many software applications and exchange platforms for virtual currencies have not yet been developed for the mass market and are sometimes technically immature. In addition, only a few hundred thousand transactions per day can take place, which makes widespread use difficult. Programs and wallets are not developed by companies for a large number of potential customers, but rather by programmers who are active in the community of virtual currencies. Technical errors of Wallets, in the settlement of transactions or in the field of blockchain technology are not resolved immediately by a higher-level body. If there are any problems with the virtual currency units purchased by Hydrominer’s customer in this connection, the buyer has to bear any loss himself. This uncertainty must be taken into account when purchasing Mining-Packages.
Lack of user-friendliness and difficult access for newcomers
Traditional forms of payment are easy to handle, and banks and payment service providers always provide advice and assistance to customers in case of problems or queries. Virtual currencies are far less user-friendly for newcomers because handling apps and wallets and keeping the private key secure is a necessity when dealing with virtual currencies. If virtual currencies are increasingly used by the masses, problems and losses of the private key will accumulate. The consequences of mass use on the development of virtual currencies is currently undetectable. This uncertainty must be taken into account when purchasing Mining-Packages.
Costs for the execution of transactions
Each transaction will cost you virtual currency units. In particular, with rapid transfer of virtual currency units and integration of the transaction in the block chain higher fees than with conventional transfer virtual currency units. This uncertainty must be taken into account when purchasing Mining-Packages.
Dependence on a decentralized community of developers
There is currently no official agency responsible for advancing the technical side of virtual currencies. The development of virtual currencies is in the hands of developers and SMEs who apply a specific technical protocol. A central body for controlling the technical development of virtual currencies does not exist. Here, too, no specific developments can be anticipated or predicted about the future of virtual currencies in this area. This uncertainty must be taken into account when purchasing Mining-Packages.
Virtual currencies increasingly are becoming centralized in some parts
Even virtual currency, such as one of the most-popular virtual currencies, Bitcoin, is not immune to centralization. Many server farms that record transactions on the blockchain and provide network security are located in China. The state authorities there have the opportunity to exert massive pressure on individual members of the community. This can affect the development and exchange rate of virtual currencies. This uncertainty must be taken into account when purchasing Mining-Packages.
Virtual currencies are increasingly associated with money laundering and tax evasion
A transaction of virtual currency units, without knowing the payment partner, can only be completed using the public and private Key. Especially the virtual currency community often sees this anonymity as an advantage. However, due to the anonymity of the payment partners, virtual currencies are sometimes linked to money laundering and tax evasion. There is a risk that criminal prosecution authorities may initiate legal proceedings against certain trading and exchange platforms and may block them. This also creates dangers and disadvantages for the individual user of these platforms, because a loss of wealth may be expected under certain circumstances. In addition, it is highly likely that the applicability of EU anti-money laundering guidelines to various companies will be extended, in particular to operators of virtual currency trading platforms. In many cases, this represents an organizational challenge for these companies and platforms. This uncertainty must be taken into account when purchasing Mining-Packages.
Regulation by the state or the EU poses a risk to the survival of virtual currencies
The regulation of virtual currencies by the state or the EU should also be considered a risk factor. It is unpredictable whether the European Union and the governments of the individual member states will adopt regulation with a sense of proportion. A potentially threatening ban or substantial legal regulation of virtual currency trading would have a strong impact on the exchange rate. The approach of states differs considerably and complicates the predictability of future developments. Governments of some states have already declared certain virtual currencies illegal, while others legalize and remain open to virtual currencies. At the international or European level, there are no clear guidelines or guidelines from international organizations how to deal with virtual currencies. States will likely continue to make very different and non-harmonized rules. In particular, questions of a private law nature have not yet been clarified by law. These also entail unforeseeable risks if it turns out that legal equalization of virtual currencies with conventional means of payment is not in the intention of the issuer. This uncertainty must be taken into account when purchasing Mining-Packages.
Risk of reliability of predictions about the development of virtual currencies
The strong fluctuations in the price of virtual currencies make it impossible to make a precise and reliable forecast of future exchange rate developments. It is generally unpredictable whether and how the economic and technical development of virtual currencies will progress. Past developments in recent years are not a sufficient indicator for forecasts of future development. In addition, virtual currencies are a comparatively young phenomenon, making future development difficult to portray due to lack of experience. Forecasts from various sources about these matters must therefore be treated with the utmost caution. Hydrominer makes no predictions on the availability of virtual currencies in the future and does not forecast the development of their value. This uncertainty must be taken into account when purchasing Mining-Packages.
Risk of tax treatment of virtual currencies
In particular, under tax law, some risks can occur with virtual currencies. Profits from trading and exchange with virtual currencies are taxable where possible. The legislator could also want to continue to tax with increasing growth of payments of virtual currencies. The tax office has the opportunity to examine the tax aspects of virtual currencies. If a virtual currency is successful and there is a rapprochement or equal treatment with other means of payment, it can be assumed that taxation will also lead to equality or accentuation. Hydrominer urgently recommends to discuss with a tax adviser, attorney or accountant the impact on their own tax situation before making a purchase decision. This uncertainty must be taken into account when purchasing Mining-Packages.
Hardware failure to generate virtual currency
Enormous computing power is required for successful mining. It can not be guaranteed that the Mining-Hardware will be able to provide sufficient computing power at all times. Hydrominer does not guarantee uninterrupted operation of the Mining-Hardware used to create virtual currency units. Hydrominer may not immediately be able to compensate for the loss of Mining-Hardware through otherwise available hardware, which may result in bottlenecks or delays in the purchase of Mining-Packages. This uncertainty must be taken into account when purchasing Mining-Packages.
Increased mining difficulty for each additional virtual currency unit to be created
The mining of virtual currency units tends to be more difficult with each additional virtual currency unit created. This will tend to produce fewer new virtual currency units over a longer period of time with the same hash performance. In the past, the increase in difficulty has also been accompanied by an increase in the market value of virtual currencies. It can not be ruled out that some virtual currencies have almost reached their market potential and a price increase is unlikely. If the difficulty of creating new units of virtual currency increases in the future and the price of such currency units falls or does not rise to the necessary extent, the purchase of Mining-Packages may result in a lower long-term return or loss. Moreover, the increase in mining difficulty makes it impossible to accurately forecast the expected returns with a given hash performance. The customer is not guaranteed a minimum number of virtual currency units to be created. This uncertainty must be taken into account when purchasing Mining-Packages.
Liquidity risk for the virtual currency market
There is a risk that the market for some virtual currencies may not develop accordingly and there may be no supply or demand for a virtual currency. It may be that the buyer can not resell his received currency units at any time and at any price to third parties or trade with third parties. The customer himself is liable for the resulting loss. This uncertainty must be taken into account when purchasing Mining-Packages.
Poor legal, economic and tax advice
A lack of advice can lead to unwanted or unforeseen tax, legal and economic consequences. The lack of advice from the relevant experts, such as financial advisors, lawyers and accountants, can cause adverse consequences for the client. It is therefore recommended to inform oneself about the legal and financial aspects. Hydrominer is not liable for any loss related to lack of or incorrect advice. This uncertainty must be taken into account when purchasing Mining-Packages.
Purchase decision without taking into account the living conditions and available assets and income
A purchase decision that does not take into account living conditions, available assets and income can lead to negative consequences for the customer. In particular, it should be pointed out that, in principle, free capital should be used for investment, because a total loss of capital invested can not be ruled out. The decision to buy the products should also take individual knowledge into consideration. The buyer must also be aware that the purchase of a product does not include a claim for service. There is no liability of Hydrominer for a fraudulent or incorrect purchase decision on the part of the buyer. This uncertainty must be taken into account when purchasing Mining-Packages.