Last Updated: April 11, 2025
Version: 1.0

1. Introduction

a. Application

These Terms apply to and govern your participation in the Node Operation, the Devnet Program, and any subsequent programs introduced by us. Please read them carefully as they affect your obligations and legal rights.

b. Acceptance

By applying for or participating in the Node Operation, downloading and installing the Node Software, or clicking a checkbox referencing these Terms, you agree to these Terms without modifications or reservations, which form a legally binding agreement between you and us. If you do not agree to these Terms, you must refrain from applying for the Node Operation and discontinue any related engagement immediately. If you are acting on behalf of an entity, you accept these Terms both on behalf of yourself and on behalf of such entity, and confirm that you are authorised to do so.

c. Personal Data

Your personal data is processed in accordance with the Privacy Notice.

d. Risk Disclosure Statement

By participating in the Node Operation, you acknowledge, accept, and agree to assume the risks set out in the ‘Risk Disclosure Statement’, which are not exhaustive nor presented in any specific order of priority. You understand that any of these risks may result in damages or complete loss of your assets, and you are solely responsible for that. You must not participate in the Node Operation or undertake any related actions if you cannot accept these risks.

e. Modification

These Terms may be modified, supplemented, or updated from time to time without your consent or prior notice. In this case, the “Last Updated” date and version number at the top of these Terms will be updated accordingly. The updated Terms will automatically replace and supersede the previous version upon publication, taking immediate effect. Your continued use of the Node Software or participation in the Node Operation shall constitute your full acceptance of the updated Terms. It is your responsibility to review these Terms regularly to stay informed of any changes. If you do not agree to the amended Terms, you may reject them by ceasing to use and uninstalling the Node Software; in this case, you must stop your participation in the Node Operation or any related activities.

f. Interpretation

Capitalised terms used herein and rules of interpretation are defined in the ‘Interpretation’ Section.

2. Eligibility

To become a Node Operator, you must: (i) submit the Application and be approved by us; (ii) be capable of forming a legally binding agreement with us; (iii) not be a Prohibited Person nor participate in the Node Operation for their benefit; (iv) be at least 18 years old or of majority in your jurisdiction; (v) if acting on behalf of an entity, be authorised by that entity and confirm that it is properly existing; and (vi) comply with these Terms. If you do not meet these requirements, you are not eligible and are not allowed to participate in the Node Operation, and must immediately suspend any such participation until you meet all of the requirements indicated in this paragraph.

3. Node Operation

a. General

Subject to these Terms, you may participate in the Node Operation by contributing the computational resources of your Equipment to the Fortytwo Network. Additional information regarding the Node Operation may be provided from time to time in associated Materials, which are for informational purposes only, are not binding, and do not form part of these Terms. All terms, parameters, conditions, and requirements relating to the Node Operation shall be determined by us in our sole and absolute discretion. We reserve the right, at any time and without prior notice or liability, to limit the number of participating Node Operators or Nodes, suspend or terminate any Node, modify any aspect of the Node Operation (including its features, requirements, or parameters), suspend or discontinue the Node Operation in part or altogether, or implement additional conditions, restrictions or changes. Any such action may be taken by us at any time and without obligation to provide notice, and without incurring any liability to you or any third party.

b. Becoming a Node Operator

To become a Node Operator, you must complete the applicable requirements as may be specified from time to time on our Website, in the Materials, or through other means of communication made available to you. These requirements may include submitting an Application, which may be subject to our review, and/or taking specific actions, such as commencing operation of the Node Software within a designated time period. The window for applying or fulfilling such requirements may be limited, and failure to comply within the designated timeframe will result in your ineligibility to become a Node Operator. Any decision regarding your approval or rejection as a Node Operator shall be made by us in our sole discretion, shall be final and non-negotiable, and may be taken in whole or in part through automated means. Your right to participate in the Node Operation is personal, non-transferable, and remains at all times subject to these Terms.

c. Participation Requirements

We may, at any time and from time to time, introduce certain Participation Requirements applicable to applicants for the Node Operation, existing Node Operators, and/or specific groups or categories thereof. Such Participation Requirements may be established, modified, or repealed by us at our sole and absolute discretion, and without a prior notice. We retain the exclusive right to determine whether any applicant or Node Operator has satisfied, and continues to satisfy, the applicable Participation Requirements. All such determinations shall be final, non-disputable, and may be made with or without prior notice. We further reserve the right to reject, suspend, or revoke your participation in the Node Operation at any time, with or without cause or notice, and without incurring any liability to you or any third party.

d. Equipment Requirements

To participate in the Node Operation, you must use the Equipment that satisfies the applicable Equipment Requirements, as may be established and updated by us from time to time at our sole discretion. If your Equipment does not meet or ceases to meet these requirements, your participation in the Node Operation may be denied, suspended, or discontinued. You are solely responsible for ensuring that your Equipment remains compatible with the Equipment Requirements at all times. Failure to comply may result in malfunctions or other issues with your Equipment, for which we bear no responsibility or liability. You are solely responsible for maintaining the security and integrity of your Equipment in connection with the Node Operation, including implementing appropriate safeguards against unauthorised access, malware, cyberattacks, data breaches, and other security threats. We shall not be liable for any loss, damage, or unauthorised activity arising from your failure to adequately secure your Equipment.

e. Node Software Updates

By downloading or installing the Node Software, you acknowledge and agree that the Node Software may, from time to time, automatically download and install updates, patches, or modifications without any further notice to or approval from you. Such updates, patches, and modifications may be necessary for continued participation in the Node Operation, and may be deployed directly to your Equipment. You expressly consent to the automatic delivery and installation of such updates, patches, and modifications as a condition of using the Node Software. Note that certain updates may still require manual installation.

f. Licence

Subject to your compliance with these Terms and your approval as a Node Operator, the Node Software is made available to you under the terms of the Licence, which shall remain in effect unless and until revoked by us at any time or these Terms are otherwise terminated. Certain components of the Node Software may be distributed under the FOSS Licences. Your use and operation of the Node Software must comply with the terms of the Licence and all applicable FOSS Licences. To the extent there is any conflict between these Terms and applicable FOSS Licences, the terms of the FOSS Licences shall prevail with respect to the use of the corresponding Node Software components.

g. Expenses

You acknowledge and agree that your participation in the Node Operation is undertaken in an independent capacity. You are solely responsible for all expenses and costs incurred in connection with your participation in the Node Operation, including but not limited to hardware, electricity, Internet access, maintenance, and Third-Party Costs. Except as expressly set forth in these Terms, we shall have no obligation to reimburse or compensate you for any such expenses.

h. Feedback

By sharing any Feedback in connection with the Node Operation, you grant us a non-exclusive, irrevocable, royalty-free, perpetual, fully paid-up, worldwide licence (right) to use, copy, edit, reproduce, translate, publicly display and perform, distribute, commercialise, and create derivative works from your Feedback, including the right to assign these rights to third parties in whole or in part without your consent or approval.

i. Fortytwo Brand Assets

Nothing in these Terms grants, or shall be construed as granting, any rights, title, or proprietary interest to you in or to the Fortytwo Brand Assets. Certain Fortytwo Brand Assets may be embedded in or displayed in connection with the Node Software, and you are not authorised to use them independently of the Node Software, nor to remove, obscure, or disassociate them from it. You may not use any of the Fortytwo Brand Assets in any manner without our prior written consent, including any use that may create the impression that they belong to or are associated with you, or imply any affiliation with, or endorsement by, us or our Affiliates.

4. Rewards

a. General

As a Node Operator, you may accrue certain Rewards as a form of recognition for your contribution to the security and operation of the Fortytwo Network or its broader ecosystem. Generally, Rewards serve as a means for us to monitor, track, and rank Node Operators and other contributors within the Fortytwo Network, as well as their performance. They are solely intended to support a gamified participation experience that encourages active engagement, sustained involvement in the development of the Fortytwo ecosystem, and fosters a more interactive, motivating environment built on community and shared achievement. The accrual of Rewards is not promised or guaranteed, and is subject entirely to our discretion; accordingly, there is no assurance that your participation in the Node Operation will result in the accrual, receipt, or distribution of any Rewards. Rewards have no cash or monetary value, are non-transferable (unless otherwise expressly stated by us), and are not intended to have, nor shall be construed as having, any utility, function, or redeemable value of any kind. We make no representation or commitment that Rewards can or will be exchanged for any asset, right, benefit, service, or product, now or in the future. You may incur losses arising from, or in connection with, transactions related to the Rewards, and you are solely responsible for any decision to participate in such transactions. We do not sell Rewards, and they cannot be purchased or acquired other than through becoming a contributor to the Fortytwo Network. Nothing in these Terms, nor in any communication made by us, shall be construed as granting you any right or expectation to receive profits, returns, income, equity, ownership interests, voting rights, or any other form of participation in us, our Affiliates, or the Fortytwo Network as a result of receiving or being eligible for Rewards.

b. Conditions

All parameters, eligibility conditions, and any terms governing the allocation, calculation, accrual, and distribution of Rewards are determined exclusively by us, and may be modified, suspended, or withdrawn at any time, with or without notice, and without liability. To the extent that any requirements or conditions must be met in order to qualify for or receive Rewards, whether technical, procedural, or otherwise, the determination of whether such requirements have been satisfied shall be made solely by us and shall be final, non-negotiable, and not subject to dispute or appeal.

c. Adjustments

We reserve the right to adjust, reduce, withhold, or cancel any accrued or expected Rewards in whole or in part, at any time and for any reason, including but not limited to inadequate performance, failure to meet operational standards, protocol violations, misconduct, abuse of systems, or any activity we determine to be inconsistent with the spirit or intended purpose of the Node Operation or the broader ecosystem. Any such determination shall be made at our sole and absolute discretion, may be based on automated or manual evaluation, and shall be final and non-negotiable. You acknowledge that Rewards may be decreased or revoked without notice and without any obligation on our part to compensate, restore, or justify such action. We assume no liability in connection with any adjustment, forfeiture, or failure to receive or retain Rewards under this provision.

5. Wallets

a. General

To operate a Node, your Node Software will create a Wallet to enable broadcasting of messages to the peer-to-peer network and participation in the network consensus mechanisms. The new Wallet will be dedicated exclusively to the operation of your Node, and you must not store any substantial personal assets in this Wallet. If you operate multiple Nodes, you will have dedicated Wallets for each individual Node. All Wallets used in connection with the Node Operation are considered Third-Party Services, and we do not own, control, endorse, or assume any responsibility or liability in connection with such Wallets, including their security, availability, functionality, or any loss or damage arising therefrom. We do not access your Wallets nor manage, custody, hold, or deal with any of the Virtual Assets held in such Wallets.

b. Security

You must keep your Wallet credentials, including secret key, seed phrase, pin, or password, as applicable, strictly confidential and private, and must not share those with any third parties, or otherwise allow any third party to access your Wallet or credentials thereto. Any unauthorised disclosure or use of your Wallet credentials may result in the loss of Virtual Assets held in them. You are fully responsible for securing your Wallets and associated credentials, as well as confidentiality thereof. We reserve the right to consider any transaction made from your Wallet or using credentials thereto to be made personally by you.

c. Release

We are not liable for any losses or damages, including consequential, incidental, or indirect damages, resulting from the unauthorised use of your Wallet. This includes cases where you fail to maintain the confidentiality of your Wallet credentials. To the maximum extent permitted by applicable law, you hereby release and forever discharge the Fortytwo Parties from any and all actions, claims, suits, demands, losses, damages, obligations, or liabilities of any kind, whether known or unknown, arising from or related to the above.

6. Third-Party Costs and Taxes

a. Third-Party Costs

In the course of the Node Operation and related transactions, certain Third-Party Costs may arise. You are solely responsible for bearing all such Third-Party Costs, and we shall not be liable for them in any way. You are encouraged to independently verify and review any Third-Party Costs associated with your transactions. Upon the initial installation of the Node Software, a certain amount of Virtual Assets will be allocated to the Wallet specified in your Application. These Virtual Assets are intended to help offset certain Third-Party Costs incurred during the initial period of Node Operation. Subject to the continued, uninterrupted, and successful operation of your Node, you may receive additional Virtual Assets from time to time. The amount, timing, and conditions of any such allocations shall be determined by us at our sole discretion.

b. Taxes

You are solely responsible for all current and future taxes applicable to you that may arise from or relate to the transactions made during or in connection with the Node Operation. This includes all taxes imposed, levied, collected, withheld, or assessed by any state, government, or governmental authority. It is your obligation to manage your tax responsibilities, as failure to do so may result in penalties, fines, or other legal consequences.

7. Your Representations and Warranties

By accepting these Terms, you make the following representations and warranties, which must remain true, complete, accurate, and non-misleading at the time of acceptance and throughout your participation in the Node Operation:

a. Acknowledgement of Terms

You have read and understood these Terms, have the authority to accept them, enter into a binding legal agreement with us, and meet all obligations these Terms outline.

b. No Conflict

Acceptance of these Terms will not breach or conflict with any court orders, judgments, or existing agreements or arrangements you are bound by.

c. Approvals or Authorisations

If and to the extent necessary, all consents, permissions, authorisations, approvals, and agreements from third parties, as well as any required registrations, declarations, or filings with regulatory or governmental authorities, have been unconditionally obtained as of the date you accept these Terms.

d. Entity Representation

If you are acting on behalf of an entity, you confirm that the entity is properly incorporated, registered, and in good standing in its jurisdiction. The entity is responsible for any breach of these Terms by you or its employees, unless you are personally liable under the law. Additionally, accepting these Terms must not breach or conflict with the entity’s organisational documents.

e. Compliance

Your acceptance of these Terms and participation in the Node Operation is in full compliance with all applicable laws. You will meet all tax obligations arising from or in connection with any transactions made by you, as well as any acquisition, storage, transfer or other disposal of Rewards.

f. Prohibited Person Status

You are not a Prohibited Person, nor act on behalf or for the benefit of a Prohibited Person.

g. Authorised Wallet and Asset Use

Any Wallet you use in connection with the Nodes must either be owned by you or used with valid authorisation. All funds or Virtual Assets involved must be owned by you or used with proper authorisation, originate from legitimate sources, and have been lawfully acquired.

h. Ownership and Control of Equipment

You own or otherwise lawfully control the Equipment used in connection with the Node Operation, and that you have the full right, power, and authority to install the Node Software on such Equipment and perform all obligations under these Terms.

i. Understanding of Blockchain Technology

You have sufficient understanding of the functionality, usage, storage, transmission mechanisms, and complexities related to Virtual Assets, Nodes, Wallets, and distributed ledger technology, including blockchain, in general.

j. Participation Expectations

You understand that your participation in the Node Operation, as well as accrued Rewards, may not meet your expectations, be beneficial, profitable or suitable for you, and it is your decision whether to become a Node Operator.

8. Prohibited Activities

You must not conduct or participate in any of the following activities, whether directly or indirectly, when participating in the Node Operation or in connection therewith:

a. No Disruption and Interference

Disrupt, interfere with, or inhibit others from becoming a Node Operator and participating in the Node Operation. Additionally, you are prohibited from engaging in activities that could disable, impair, or harm the Nodes, Node Software, Fortytwo Network and their components.

b. No Restrictions Circumvention

Circumvent or attempt to bypass any access, security and/or functionality restrictions or limitations related to the Nodes, Node Software, Fortytwo Network and their components, or attempt to compromise the integrity, logic, algorithms, or underlying operational processes thereof. Submitting false or incorrect transactions through the Nodes, or intentionally disrupting consensus mechanisms or related operations, is strictly forbidden.

c. No Illegal Use and Harm to Others

Participate in the Node Operation for any illegal purposes, or those that are harmful or detrimental to the Fortytwo Parties, Node Operators or others. This includes, without limitation, any activity that violates or assists in the violation of any applicable law, statute, ordinance, regulation, or sanctions regime, or that involves the proceeds of any unlawful activity.

d. No Harmful or Malicious Activities

Use malware, harmful code, or software, engage in hacker attacks, or exploit any technical glitches, malfunctions, failures, delays, defaults, or security breaches in relation to the Nodes, Node Software and its components, including, without limitation, intercepting or expropriating any system or data, or initiating activities such as overloading, “flooding,” “spamming,” “mailbombing,” or “crashing” the Node Software and/or Fortytwo Network. You must also refrain from attempting to probe, scan, or test the vulnerability of the Node Software and/or Fortytwo Network, as well as from attempting to breach any applicable security or authentication measures.

e. No Excessive or Abusive Use

Use the Nodes, Node Software and/or Fortytwo Network in any manner that exceeds a reasonable volume of requests or constitutes excessive, abusive, or otherwise disruptive usage.

f. No Third-Party Rights Violation

Violate any rights of any third person, including intellectual property rights. Subject to the terms of applicable FOSS Licences, (i) disassemble, decompile, or reverse-engineer of the Node Software or its components; (ii) copy, distribute, encumber, sublicense, transfer, rent, lease, or time-share the Node Software to or for the benefit of any third party, and (iii) remove or modify any copyright statements, labels, or licensing information related to the Node Software.

h. No Fraudulent Behaviour

Engage in fraudulent activities, including providing false, inaccurate, or misleading information to unlawfully obtain Rewards, Virtual Assets, funds, or property.

i. No Impersonation

Impersonate any person, project, or entity, or misrepresent your affiliation with them in any way. This includes attempting to disguise your identity or the origin of any messages or transmissions sent to us or others.

j. Good Faith and Lawful Conduct

Act unfairly and contrary to the principle of good faith, or carry out any other activities that violate any applicable regulations, rules, orders, etc.

9. No Warranties and Representations

a. General

The sole and exclusive purpose of a Node is to support the Fortytwo Network, specifically by running AI model inferences, broadcasting messages to the network and facilitating the validation of transactions within it. The Node Software is designed and provided for this functional purpose, and should not be relied upon for any other use. The Nodes and Node Software ARE EXPERIMENTAL and still IN THE TESTING PHASE. While we have endeavoured to exercise reasonable skill and care in developing the Node Software and its components, it is provided strictly on an “AS IS” and “AS AVAILABLE” basis. Your decision to install the Node Software or operate a Node within the Fortytwo Network is entirely voluntary and undertaken at your sole discretion. Always do your own independent research.

b. Disclaimer of Warranties

Except as expressly provided in these Terms, we make no express or implied warranties regarding the Nodes, Node Software, and their components, including any implied warranties of non-infringement, integration, merchantability, or warranties arising from any course of performance, all of which are expressly denied and disclaimed. Specifically, there is no warranty that:
  1. the Nodes, Node Software and its components will function as expected, without interruption, or work at all;
  2. the Node Software or its components will be secure at all times or be immune to any viruses, bugs, errors, malfunctions, hacker, malware or other attacks, or third-party hostile interferences;
  3. any bugs, vulnerabilities, security flaws, or other technical issues in the Node Software or its components will be discovered, remedied, or resolved, whether promptly or at all;
  4. your participation in the Node Operation or any accrued Rewards will meet your expectations, be beneficial or suitable to you;
  5. the Node Software, its components, or any of their current or future updates, patches, or upgrades will be compatible with your Equipment used to operate the Node;
  6. the continued availability, support, development, or maintenance of the Node Software or any of its components will be supported or provided beyond the scope outlined in these Terms.

10. Important Disclaimers

a. No Benefits

Participating in the Node Operation does not guarantee any benefits, financial returns, gains, or positive outcomes. Any expectations of financial gain or other benefits are entirely your responsibility, and we are not liable for any losses or damages resulting from such expectations.

b. No Advice

No part of these Terms or Materials is intended to be, or should be considered, or construed as a business, legal, financial, investment, trading, or any other sort of advice, or advice of a broker regarding any matters to which all or any part of such information relates. Before making any decision, you should consult your own legal, financial, tax, or other professional advisors regarding any such information.

c. No Offer or Solicitation

No part of these Terms, Website, and Materials constitutes (i) a prospectus, (ii) offer document, or (iii) an offer, recommendation, or solicitation to buy, sell, or hold investment instruments, securities, or Virtual Assets in any jurisdiction.

d. No Regulated Services

Nothing in these Terms or Materials shall be interpreted or considered as the provision of financial, legal, investment, tax, brokerage, financial advisory, fund management, or any related intermediation services. You are solely responsible for ensuring that your participation in the Node Operation and any related transactions comply with the applicable laws, regulatory and other requirements.

e. No Fiduciary Relationship

To the fullest extent permitted by applicable law, we owe no fiduciary duties to you under these Terms. However, we must act in accordance with these Terms and the implied contractual covenant of good faith and fair dealing, as required by law.

f. No Partnership or Agency

These Terms do not create any agency relations, partnership, joint venture, or co-operative entity. We and you have no authority to bind each other or make public statements on each other’s behalf.

g. Insufficient Public Interest

Public interest in the Fortytwo Network or Node Operation is not guaranteed, and low user engagement may negatively impact the Nodes and associated business activities.

h. Unofficial or Fraudulent Projects

You may be targeted by fraudulent activities, including fake websites, emails, text messages, or social media accounts impersonating us or the Website. They may aim to deceive you, steal your Virtual Assets, or otherwise profit unlawfully. Exercise extreme caution when interacting with websites, emails, text messages, and social media accounts, directing you to sources other than the official Website, or those asking you to connect your Wallet. Always verify the authenticity of any communication claiming to represent us or the Website.

i. Third-Party Services

When participating in the Node Operation, you may encounter certain Third-Party Services. We do not provide any warranties, express or implied, regarding them and do not endorse, recommend, or solicit their use or any interaction with them. Your use of Third-Party Services, as well as any interactions with third parties linked to or from the Website or Materials, are entirely at your own risk.

j. Void Transactions

Any funds or Virtual Assets misappropriated or obtained through violations of these Terms or the intended functionality of the applicable software, including interference with smart contract operations or attacks, are strictly prohibited. Any related transactions will be deemed null and void from the outset (ab initio), and the involved Virtual Assets may be subject to forfeiture under applicable law.

11. Limitation of Liability

a. Damages

We are liable only for damages that directly arise from breach of our obligations under these Terms or applicable law. To the fullest extent permitted by the applicable law, the Fortytwo Parties shall not be liable for any consequential, incidental, indirect, or punitive damages, including loss of profits, business opportunities, data, goodwill, diminution of value, or business interruptions, regardless of their legal basis.

b. No Personal Liability

To the fullest extent permitted by law, in no event shall our or Affiliates’ officers, directors, employees, consultants, and shareholders be held personally liable in connection with these Terms and any transaction contemplated hereunder, provided that the foregoing shall not limit our liability as an entity.

c. Liability Cap

To the fullest extent permitted by law, the total liability of the Fortytwo Parties arising from these Terms, whether in contract, tort, breach of duty, or otherwise, including attorney’s fees, will not exceed one hundred (100) U.S. dollars or equivalent.

d. No Liability

To the fullest extent permitted by law, the Fortytwo Parties shall not be liable for any losses or damages, regardless of their legal basis (breach of warranty, contract, negligence, strict liability, or tort), even if advised of the possibility of such losses, including those arising from or caused by: (i) the Fortytwo Network, Virtual Assets and their underlying blockchain networks, as well as any failure thereof to perform as represented or expected; (ii) any acts, activities or omissions of other Node Operators; (iii) unauthorised use of your Wallets or any credentials thereto, or your failure to ensure security thereof; and (iv) the Force Majeure circumstances.

e. Exclusions

Nothing in these Terms limits liability for gross negligence, fraud, death or personal injury resulting from negligence, or any other liability that cannot be legally limited.

12. Indemnification

To the fullest extent allowed by law, you agree to indemnify, defend, and hold harmless the Fortytwo Parties from any claims, demands, actions, damages, losses, costs, and expenses (including reasonable legal fees) arising from: (i) your violation of these Terms or applicable laws, including providing false representations or warranties; (ii) your participation in the Node Operation; (iii) your acquisition, use, or disposal of Virtual Assets; and (iv) your tax obligations arising from or in connection with any transactions contemplated by these Terms. We reserve the right to control the defence of any indemnified claim, at your cost. This indemnity is in addition to any other legal remedies available to us.

13. Term and Termination

a. Termination by Us

We have the right to immediately terminate these Terms and your participation in the Node Operation, with or without prior notice, for any reason, including if:
  1. you are not, or are no longer, eligible to participate in the Node Operation;
  2. you are, or we suspect that you are, in breach of these Terms, including by providing false or misleading warranties or representations;
  3. you are, or we suspect that you are, in breach of any applicable laws, regulations, or orders;
  4. either you or we are subject to a governmental proceeding, criminal investigation, or other pending litigation, and/or we perceive a heightened risk of legal or regulatory non-compliance related to your participation in the Node Operation;
  5. you have, or we suspect that you have, while participating in the Node Operation, violated any of our or third-party right;
  6. we are required to do so by a court order or command by a regulatory or government authority, or in accordance with our internal policies and procedures;
  7. we detect any suspicious activity related to you or the Node operated by you;
  8. we identify abnormal activities related to the Node operated by you; or
  9. we detect or reasonably suspect any unauthorised access or suspicious activity related to the Node operated by you.
The final decision on whether to terminate or suspend your participation in the Node Operation shall be taken by us at our sole and absolute discretion. You acknowledge and agree that the above termination and suspension circumstances are not exhaustive, and our decision to limit, terminate, suspend, or restrict your participation in the Node Operation may be based on confidential criteria essential to our risk management and security policies. You further agree that we have no obligation to disclose the details of these policies to you.

b. Termination by You

You may terminate these Terms and your participation in the Node Operation at any time by deleting and ceasing to use the Node Software installed on your Equipment.

14. Communication

a. Communication Terms

The information concerning these Terms and Node Operation is made available online at https://www.fortytwo.network. All such information will be deemed valid, in writing, and legally binding, and will be considered effective on the day after it is published. You can contact us at legal@fortytwo.network. We may ask for additional information to verify your identity.

b. Communication Disclaimers

You shall always carefully assess and verify any information you access or receive via the Communication Channels. You must cross-verify any hyperlinks and Wallet addresses provided through the Communication Channels for authenticity, correctness, and accuracy by cross-referencing them with our other Communication Channels or through our officially designated moderators before relying on or using such information or details. Be extra cautious regarding any hyperlinks, Wallet addresses, or instructions, which are shared only through one Communication Channel. There is always a risk that one or more of our Communication Channels may be compromised, which is a common occurrence in the blockchain space, resulting in unauthorised third parties gaining control over them and posting or sending misleading information in an attempt to steal or gain control over your assets. Accordingly, you hereby assume such risks and the responsibility to reasonably verify and assess any and all information you receive or access through our Communication Channels, at the very least by means mentioned herein. No Fortytwo Party shall be held liable or responsible for, or in connection with, your reliance upon or use of unauthentic or misleading information or communications shared through the Communication Channels as a result of our loss of control or their compromise. We hereby disclaim any duty of care with respect thereto and shall not be held liable or responsible for any damages or losses sustained by you in connection with, or resulting from, the compromise of our Communication Channels.

15. Applicable Law and Dispute Resolution

a. Applicable Law

These Terms, as well as any relationships relating to the Node Operation, are governed by the laws of England and Wales, excluding any conflict of law rules.

b. Negotiations

You must first contact us to try to resolve any dispute related to these Terms or any matters contemplated herein informally by sending a notice via email at legal@fortytwo.network. If no agreement is reached within thirty (30) days, the dispute may be submitted to arbitration as outlined below.

c. Arbitration

All disputes arising from or related to these Terms and any matters contemplated herein will be resolved through binding arbitration under the London Court of International Arbitration Rules, which are incorporated by reference herein. The arbitration will take place in London, UK, with a single arbitrator, and the proceedings will be conducted in English. All notices, requests, demands, and communications related to the arbitration must be sent electronically, either via email or through an electronic filing system operated by the London Court of International Arbitration. Electronic communications will be considered received on the day they are transmitted, based on the recipient’s time zone.

d. Opt-Out

Notwithstanding anything to the contrary contained in these Terms, you have the right to opt out of the binding arbitration for disputes arising from or related to these Terms and any matters contemplated herein. To do so, you must send a written notice via email to legal@fortytwo.network within thirty (30) days of accepting these Terms. Your notice must include your name, residence address, email address, and an explicit, unequivocal statement that you are opting out of the settlement and resolution of disputes through binding arbitration. If you exercise your opt-out right within the specified timeframe, all other provisions of these Terms will remain in full force and continue to apply to you. Exercising this right does not affect any future arbitration agreements that you, and we may enter into separately.

e. Court Proceedings

You and we hereby waive your and our respective rights to have any dispute arising from or related to these Terms and any matters contemplated herein resolved in a court, and to a jury trial. If, and only if, you opt out of the settlement and resolution of disputes in the binding arbitration as prescribed in these Terms, or a dispute cannot be resolved by the arbitration indicated in these Terms, whether under the law or arbitration rules, such dispute shall be finally settled by the courts of the Seychelles, having jurisdiction.

f. Confidentiality

To the fullest extent permitted under applicable law, each party involved must maintain the confidentiality of any arbitration, litigation and negotiation proceedings, judgments and awards, including, but not limited to, all information gathered, prepared, and presented for purposes of the arbitration or related to the disputes.

g. No Class Actions

To the extent permissible by applicable law, any dispute arising out of or related to these Terms is personal to you and us, and will be resolved solely through individual arbitration, not as part of a class, collective, representative, or private attorney general action or proceeding. You further agree to waive any right for such disputes to be brought, heard, or arbitrated as a class, collective, representative, or private attorney general action or proceeding, to the extent permissible by applicable law. Combining or consolidating individual arbitrations into a single arbitration is not permitted without our prior consent.

h. Statutes of Limitation

To the extent permitted by law, any claim related to these Terms and any matters contemplated herein must be filed within one year of the event giving rise to the claim. Claims not filed within this period will be permanently barred, meaning neither you nor we can pursue such claims.

16. Miscellaneous

a. Entire Agreement

These Terms and any incorporated documents constitute the entire agreement between you and us, superseding all prior and contemporaneous understandings, writings, or promises related to the subject matter of these Terms. You acknowledge and confirm that you will not rely on and have no remedies in respect of any warranty, statement, promise, assurance, or statement (whether made innocently or negligently) that is not set out in these Terms.

b. Third-Party Beneficiaries

These Terms will benefit the Fortytwo Parties, and any of them may rely on and enforce the provisions as if they were a party to these Terms. However, no consent, approval, or notice from the Fortytwo Parties is required to modify, assign, novate, or otherwise change these Terms.

c. No Waiver

Our failure or delay in exercising any right or remedy under these Terms or applicable law does not constitute a waiver of that or any other right or remedy. It also does not preclude or limit the further exercise of that or any other right or remedy. Similarly, any single or partial exercise of a right or remedy does not preclude or limit its further exercise or the exercise of any other right or remedy.

d. Language

Currently, only the English version of these Terms, Materials and any communications is considered official. The English version shall prevail in case of differences in translation of any Materials, communications, or other content.

e. Assignability

You may not assign or transfer any rights or obligations under these Terms without our prior written consent. We may transfer or assign these Terms, as well as our rights and obligations hereunder, at any time without your consent.

f. Validity and Enforceability

The invalidity or unenforceability of any provision or part-provision of these Terms shall not affect the validity or enforceability of any other provisions of these Terms, all of which shall remain in full force and effect.

g. Survival

Provisions hereof construed to survive the termination of these Terms shall survive any expiration or termination of these Terms.

17. Interpretation

a. Definitions

In these Terms, unless the context requires otherwise, the terms shall have the following meaning:
  • “Affiliate” means a person controlling, controlled by, or under the same control as us.
  • “Application” means an application for the participation in the Node Operation.
  • “Communications” means any communications, agreements, documents, receipts, notices, and disclosures related to these Terms.
  • “Communication Channels” means the Website and other social media accounts and communication channels belonging to us or Affiliates, as may be linked to on the Website from time to time.
  • “Devnet Program” means the program, aimed at the development of preliminary phase of the Fortytwo Network, designed to establish a decentralised, globally distributed intelligence system composed of Nodes that run small language models on users’ devices.
  • “Equipment” means specific hardware, devices, and tools used by the Node Operator to maintain and operate the Nodes.
  • “Equipment Requirements” means certain eligibility requirements for the Equipment used to operate the Node, as may be established by us from time to time.
  • “Feedback” means any comments, suggestions, recommendations, or other feedback, provided by you in relation to the Node Operation.
  • “FOSS Licence” means a free and open-source software licence that allows for editing, modifying, or reusing software’s source code.
  • “Force Majeure” means any circumstances that are out of our control interfering to performance hereof, which include, without limitation, acts of God, natural disasters, wars, riots, terrorism, government actions, epidemics, software problems, blockchain issues and technical failures, such as blockchain vulnerabilities, software bugs, 51% attacks, loss or theft of Virtual Assets as a result of an attack, including hacker, malware, or other attack, power outages, equipment or software malfunctions, misconduct or inactions of Third-Party Service providers or other third parties, etc.
  • “Fortytwo Brand Assets” means our and/or Affiliates’ trademarks, trade names, business names, and logotypes, whether registered or unregistered.
  • “Fortytwo Network” means (i) the Fortytwo development network, which is a peer-to-peer network operating on the Monad testnet Layer 1 EVM-compatible blockchain, and (ii) the Fortytwo main network, a network that may be deployed subsequently after the completion of the testnet phase.
  • “Fortytwo Parties” means us, Affiliates, and shareholders, directors, officers, employees, agents, advisors, contractors, successors, and assignees of both us and Affiliates.
  • “Licence” means a limited, temporary, non-transferable, non-exclusive, revocable, non-sublicensable licence (right) to install, manage, operate, and maintain the Node Software for its intended purposes on the terms herein set forth and for the duration of these Terms.
  • “Materials” means any information, statements, announcements, data, content, and other materials provided via the Communication Channels, or otherwise communicated by us or on our behalf in relation to the Website, Fortytwo Network, Nodes and/or Node Operation.
  • “Node” means a computing device that facilitates the processing, exchange, storage, transmission, and validation of transactional and block data within the Fortytwo Network.
  • “Node Software” means a software or computer program that allows a Node to run AI model inferences, broadcast messages to or participate in the consensus mechanisms of the Fortytwo Network.
  • “Node Operation” means the management, operation, and maintenance of a Node.
  • “Node Operator” means a person engaged in the Node Operation.
  • “Participation Requirements” means certain requirements and/or criteria applicable to the Node Operators, which may be established by us from time to time.
  • “Prohibited Jurisdiction” means any of the following jurisdictions: Democratic People’s Republic of North Korea, Islamic Republic of Iran, Republic of Cuba, Syrian Arab Republic, Myanmar, Sevastopol and the Crimea Regions of Ukraine, Donetsk People’s Republic and Luhansk People’s Republic regions of Ukraine, Bolivarian Republic of Venezuela, the Russian Federation, Republic of Belarus, and any other jurisdiction or territory, where participating in the Node Operation is prohibited by the law, or which is subject to a country-wide or territory-wide sanction imposed by any country, government, or international authority.
  • “Prohibited Person” means any citizen or resident of, or a person subject to any Prohibited Jurisdiction, or any sanctions administered or enforced by any country, government or international authority.
  • “Rewards” means certain badges, points, or similar non-transferable units of account that can from time to time accrue in connection with the Node Operation.
  • “Risk Disclosure Statement” means the disclosure of risks attached to these Terms as ‘Exhibit 1’.
  • “Terms” means these Fortytwo Node Operation Terms & Conditions, together with any documents incorporated herein by reference, as may be amended from time to time.
  • “Third-Party Services” means any products, services, products, software, items, or solutions provided by any person, other than we, including, but not limited to, Virtual Assets, Wallets, software or hardware wallets, blockchain networks, etc.
  • “Third-Party Costs” means any costs, fees, or expenses that are charged by third parties or third-party technologies, including, for example, blockchain gas costs, commissions and fees charged by the Third-Party Services, etc.
  • “Virtual Assets” means cryptocurrencies and other digital tokens implemented on a public blockchain network, such as, for example, USD Tether (USDT), USD Coin (USDC), and so forth.
  • “Wallet” means a pair of public and private cryptographic keys which can be used to track ownership of, receive, manage, and spend Virtual Assets on a blockchain network.
  • “you”, “your” means a person, who apply for the Node Operation or is engaged as a Node Operator, and accepts these Terms; if you are acting on behalf of an entity, “your” and “you” shall refer to both you as an individual and the entity on whose behalf you are acting.
  • “Website” means the website available at https://fortytwo.network, including any of its subdomains.
  • “we”, “our”, “us” means Fortytwo Ltd, a company established under the laws of the Seychelles, which operates the Website and coordinates Node Operation.

b. Rules of Interpretation

Unless the context requires otherwise, references to one gender include all genders; singular includes plural and vice versa; terms like “including”, “in particular”, or “for example” are illustrative and shall not limit the sense of the following words; Section headings do not affect interpretation hereof; references to these Terms or any other document shall include any amendments, modifications, supplements, extensions, or restatements thereof, as applicable; ambiguities or uncertainties in the language of these Terms shall not be interpreted in favour of or against any party, regardless of whether the party participated in drafting these Terms; and these Terms will not be construed to our disadvantage for preparing them.

Exhibit 1. Risk Disclosure Statement

1. General Blockchain Risks

a. Irreversibility

Please note that transactions on a public blockchain are irreversible. No one can control or influence transactions with Virtual Assets on public blockchain networks, and, therefore, they may not be cancelled, reversed, blocked, or frozen. There is no warranty that transactions will be executed with the gas fees you expect, or that they will be executed at all.

b. Autonomy of Infrastructure

Fortytwo Network and associated blockchain-based software or infrastructure operate autonomously and are typically beyond anyone’s control. Any malfunction, breakdown, or abandonment of the underlying blockchain could significantly impact the Nodes or any associated transactions.

c. Risk Associated with Hard Fork

A hard fork in the Fortytwo Network, underlying blockchain networks of Virtual Assets, or any of their components, could require major changes. These changes might make smart-contracts incompatible, dysfunctional, impractical, or more expensive to use. This could disrupt the execution and interaction of smart-contracts critical to the Nodes. Adapting to a hard fork or changes in consensus rules may require significant time and resources, which might not be available or cost-effective. Consequently, the continued operation of Nodes cannot be guaranteed.

d. Risk Associated with Cryptography Development

Advances in cryptography and technology, particularly quantum computing, could threaten blockchain systems by weakening or breaking the cryptographic consensus mechanisms that underpin them. As quantum computing evolves, algorithms once considered secure may become obsolete, leaving systems that rely on traditional cryptographic methods vulnerable. This could allow intruders to bypass existing security measures, compromise data integrity, as well as disrupt consensus mechanisms on blockchain networks.

2. Financial and Market Risks

a. Virtual Assets’ Value Risks

There are no representations or warranties, express or implied, regarding the Virtual Assets, including implied warranties of merchantability, fitness for a particular purpose, or non-infringement, all of which are expressly disclaimed. You acknowledge and agree that Virtual Assets may not: (i) meet your expectations or function as intended, (ii) possess the intended functionality, (iii) have a market, or (iv) have any specific price or hold any particular value, or have any value at all. Receiving, storing, using, or disposing of Virtual Assets is entirely at your own risk.

b. Volatility Risks

Purchasing, using, or holding Virtual Assets involves significant risks. The crypto market is highly volatile, and prices can change drastically in short periods, potentially leading to substantial or total loss of your funds. Due to the nature and operation of blockchain protocols, the total amount of Virtual Assets in circulation could increase through, inter alia, the adoption of a new patch, upgrade of the source code, or additional mint. You bear a sole responsibility for any damages or losses that you may incur as a result of or in connection with the change in the composition, supply, value or price of any Virtual Assets. Only allocate funds to Virtual Assets that you can afford to lose.

c. Liquidity and Market Risks

There is no assurance that an active market will exist now or in the future for buying or selling Virtual Assets. Their price and liquidity cannot be assured, and it is possible that there may be no market or liquidity for Virtual Assets at all. In some cases, they may become useless or abandoned entirely.

3. Technological Risks

a. Functionality and Flawed Logic of Software

The Node Software, Nodes and associated technical infrastructure are provided “as is” and may experience system failures, downtimes, unplanned interruptions in their underlying network or functionality, hardware or software defects, security breaches, or other causes that could adversely affect the Nodes or Fortytwo Network. We are not obligated to address these issues and do not warrant that any updates will resolve existing bugs or vulnerabilities, or avoid creating new, unanticipated issues.

b. Software Weaknesses, Bugs and Vulnerabilities

The Node Software and associated blockchain-based software or infrastructure may contain weaknesses, flaws, bugs, vulnerabilities, defects, or impairments. This can cause them to operate incorrectly or not as expected, potentially resulting in transactions being executed contrary to their intended logic or your intents. Such issues can lead to the partial or complete loss of Virtual Assets involved in a transaction or other adverse outcomes.

c. Lack of Remediation

The Node Software and associated blockchain-based software or infrastructure may have errors or vulnerabilities that are not immediately apparent. Fixing these issues can be difficult and may not always work. Many smart contracts are also immutable, meaning they cannot be changed once deployed. Attempts to fix flaws or vulnerabilities in blockchain software can be complex, risky, expensive, and time-consuming.

d. Delayed Updates

There is no warranty that the Node Software or other technical infrastructure the Nodes rely on will be updated quickly enough to address new threats, vulnerabilities, or required changes, or can be updated at all. Delays in updates can leave you exposed to risks such as errors, failed transactions, inability to execute time-sensitive operations, or the loss of Virtual Assets.

e. Downtime and Maintenance

The Node, Node Software and their components may occasionally become inaccessible or inoperable for various reasons, including maintenance, updates, technical disruptions, or third-party interference. Such occurrences may lead to downtime, and there is no assurance of continuous uptime with regard to the Node Software or its components.

4. Security Risks

a. Risk of Theft

The blockchain networks can be attacked which may result in downtime, consensus split, long reorganisation of the chain, 51% attack or other adverse outcomes. There is no warranty that there will be no theft or loss of Virtual Assets due to attacks, hacks, software flaws, or blockchain vulnerabilities, which could result in partial or complete loss of the Virtual Assets. Even when using our official resources, remain vigilant for pop-ups or unusual program behaviour, as these could result from hacks or malicious code.

b. Exploitation of Vulnerabilities

Bugs, flaws in logic, and other vulnerabilities are not part of the intended operation of the Fortytwo Network, Node Software and Nodes. However, intruders may exploit these weaknesses or flaws, potentially causing financial losses, data breaches, or system malfunctions. The exploitation of bugs, flaws, or vulnerabilities in the Node Software, smart contracts or associated software is strictly prohibited, regardless of the purpose or circumstances. Such acts, especially those that harm others, may be considered criminal or other offences under applicable laws and could result in severe consequences for those involved.

c. Risk Associated with Credentials

If a third party gains access to your Wallet or associated credentials, they may control and manage Nodes you operate, as well as Virtual Assets held in such Wallet. To reduce this risk, secure your electronic devices or systems (both hardware and software) used in relation to the Wallet, as well as associated credentials against unauthorised access. We encourage you to properly back up all credentials associated with your Wallets used in connection with the Nodes.

5. Regulatory and Compliance Risks

The Node Operation may be subject to various laws and regulations. In extreme cases, some jurisdictions may ban or heavily restrict the Node Operation. The legal status of Nodes, Virtual Assets and related transactions is uncertain, and some regions may prohibit transacting with them entirely, which could affect you. The penalties for violating such laws, if any, are unclear. You are responsible for researching and understanding the legal, regulatory and tax implications of operating the Node or interacting with Virtual Assets in your jurisdiction.

b. Taxation

Any acquisition, use, holding, or disposal of Virtual Assets, as well as related transactions, may have tax implications as imposed by state or government authorities. Tax laws for Virtual Assets may be unclear or not well-defined in your region. Additionally, these laws and their interpretations can change and may even be applied retroactively. You are solely responsible for understanding and meeting your tax obligations. Failure to properly report, collect, or pay taxes could result in penalties, fines, or other legal consequences.

6. Unanticipated Risks

In addition to the risks set forth herein, there are unanticipated risks. Further risks may materialise as unanticipated combinations or variations of the discussed risks or the emergence of new risks.