# Welcome to Phynite A brief summary of what we do, how we do it, and the benefits of using Phynite. ## What is Phynite? Phynite redefines the experience of collectible management by introducing a pioneering Web3 marketplace. This platform empowers users worldwide to effortlessly tokenize and securely vault their cherished collectibles. With the convenience of Phynite, you can entrust your collectibles to the expert care of [Crozier Fine Art](https://www.crozierfinearts.com/about-us). Here, they are not just stored but transformed into digital assets, minted directly into your digital wallet. This innovative process leverages the robust security of blockchain technology. As a user, you gain the flexibility to trade or opt for the redemption of your physical collectibles at any time, from anywhere. Phynite's commitment to seamless integration of physical and digital collectible realms offers you an unparalleled experience in the world of collectibles. ## The Phynite Protocol, Summarized To bring these benefits to our users, we developed the Phynite Protocol. Our protocol defines how users create, obtain, and “burn” CBNFTs, along with our internal processes for assisting users with each step. We've split the protocol into three sections: **Mint, Trade,** and **Redeem.** {% tabs %} {% tab title="Mint" %}
Turn your physical collectible digital by submitting your Physical Item Questionnaire and shipping your collectible to Crozier Fine Art for vaulting. {% endtab %} {% tab title="Trade" %}
Buy, sell, and auction your digital collectible on our marketplace, and earn 2% of every subsequent trade for items you shipped to Phynite. {% endtab %} {% tab title="Redeem" %}
Upon initiating the “redeem” function, Phynite will deliver your physical collectible to your doorstep, anywhere, anytime. {% endtab %} {% endtabs %} ## Why Phynite? #### Physical, Digital, and Legal Security Through the Phynite Protocol, we ensure the highest level of physical, digital, and legal security for all Phynite users and their treasured collectibles. {% tabs %} {% tab title="Physical" %} Collectibles shipped to Phynite are re-verified, photographed, and secured in environmentally-controlled, 24/7 monitored vaults through our vaulting partner [Crozier Fine Arts](https://www.crozierfinearts.com/about-us) prior to minting. {% endtab %} {% tab title="Digital" %} Each physical collectible is uniquely identified to a irreproducible digital token on the Blockchain, thus eternally recording collectibles’ ownership and transacton history over time. {% endtab %} {% tab title="Legal" %} While vaulted and in-transit, items are fully insured up to 100% of its market value (upon their entry to the vault) and collectors’ ownership rights are protected through each token's integrated contract. {% endtab %} {% endtabs %} #### Unmatched Trading Efficiency By using Blockchain technology to manage transactions and inventory management, collectors can now trade with each other instantly, regardless of physical distance. With low fees and high speed on every trade, collectors no longer face the timely and costly process of mailing items for each transaction. Additionally, eliminating physical transfers also greatly minimizes the risk of item damage/loss, extra insurance costs, and packaging charges. #### 2% Royalty on Minted CBNFTs Along with cost reductions on each trade, we also offer users the ability to earn passive income from their collection. Specifically, users who were the first to mint/hold their CBNFT will earn a 2% royalty each time their item is traded following the first trade. {% hint style="info" %} Example: Ash mints a digital collectible and sells it to Brock for $1,000. If Brock then sells the digital collectible to Misty for $2,000, Ash will earn $40! {% endhint %} #### Supporting Collectibles Communities Vibrant Collector Community Phynite invites collectors to exhibit their extensive collections to a worldwide audience, thereby nurturing a vibrant, enthusiastic community of collectors. Valued collectibles that would usually be stored away in private security can now be viewed and coveted by audiences worldwide. This improved visibility not only fosters a dynamic trading environment, but it also initiates meaningful interactions among collectors, thus leading to the creation and development of niche collector groups.
Join us at Phynite and experience a new era of digital investment in physical assets. Digitize, trade, and earn – all on a single platform. Phynite is more than an investment platform; it's an ecosystem, a community, and a revolution in the world of tangible assets. Embrace the future now, only on Phynite!
{% embed url="" %} {% embed url="" %} # Our Team Learn about who we are, and why we founded Phynite. ## Our Story

Team Phynite in action!

Like many great ideas throughout history, our plans for Phynite stemmed from one late-night conversation in a college dorm. As passionate collectors ourselves, our discussion revolved around our first-hand experiences with issues faced by all collectors: Item validity, high shipping fees/taxes, low transaction speed, inadequate user protections, and product security. Whether it was Andy never receiving his 2016 Charizard-Holo in the mail or even Will having his Off-White Nike Air VaporMax sneakers stolen during an in-person trade, our team had faced enough of the problems associated with collecting to know that collectors worldwide need better solutions. The day after our dorm-room discussion, we immediately got to work building Phynite. Every day since, we’ve worked tirelessly to succeed in the mission we set for ourselves that night: **Serve the unmet needs of collectors worldwide, and trailblaze a brighter future for digital collectibles as a whole.** ## Meet the Founders
Andy Park | CEO/CTO | "The Hacker"Prior to Phynite, Andy spent years working on Web3 projects and staying up to date on cutting-edge developments within the community, even prior to studying Computer Science at USC. With this prior experience as both a founder and developer, Andy feels just as at home during meetings with potential clients as he does during all-nighters fixing bugs behind the screen! Outside of his dedication to building Phynite, Andy spends his developing relationships co-founders and investors within the tech. start-up industry. /files/1wVmPrRmgNY2L8wlNPNX
## Meet the Founders
Will Yeo | CFO | "The Hustler"When Will sees an entrepreneurial opportunity, he acts immediately, and puts all his strength into securing a victory. Will not only understands how to serve the many needs of a diverse audience, but also the importance of fostering diversity both within and outside of Phynite. Thus, whether working on big-picture or detail-oriented tasks, Will finds success through deeply considering others’ individual needs, and applying skills from multiple disciplines to develop a solution. More than solely masterfully managing books, budgets, and balances; Will’s strong suit lies in building strong, mutually-beneficial relationships with partners./files/TLmkjSJrEPvqDQmL78Th
# Tokenization and Vaulting Get started at no cost today. Phynite is a Web3 marketplace that allows users to tokenize and vault collectibles from anywhere, at any time. A user can submit their collectibles to [Crozier Fine Art](https://www.crozierfinearts.com/about-us), in which it will then be minted directly into the user’s digital wallet. After the tokenization process, the user can choose to trade or redeem the corresponding physical collectible through the security of the Blockchain. **How does the Tokenization Process look like?** To begin the process of creating your very own digital collectible, go to Phynite.io and navigate to the ‘Create’ button. 1. Briefly share some details of the collectible for us to learn more about the item you wish to submit and download a prepaid shipping label. 2. Prepare your collectible to be shipped and drop off your package at a local USPS. 3. After your package arrives at Crozier Fine Art, your collectible will be authenticated, photographed, and processed. 4. Art handlers at Crozier Fine Art will securely vault your collectible and your card will be minted as a token directly into your digital wallet. It's as easy as 4 steps! Now having access to your digital collectible wherever you go, you can choose to list your collectible for sale or choose to transfer it to a friend or family member at any time. **How fast is the tokenization process after the card has been shipped to Crozier Fine Art?** We understand the excitement of creating your very own digital collectible, so we have designed an intricate process that only takes 5-7 business days to process, photograph, and mint your asset. **Can my collectible generate passive income?** When a user ships a collectible to Crozier Fine Art, that customer becomes the creator of the corresponding digital asset, marked by the originating digital wallet. As the creator, the user is entitled to a 2% royalty every time the vaulted asset is sold on the Phynite platform. * For instance, if Customer A submits an asset and it is subsequently sold to Customers B, C, and D, Customer A will receive 2% of the final selling price for each transaction until the collectible is redeemed. **Can I redeem my collectible and have it shipped to me?** Yes, you can choose to redeem an item anywhere, at any time. To have your collectible shipped back to your home, you as the owner of the asset must begin the redemption process by using the "redeem" function. * After initializing the redemption process, allow 5-7 business days for processing and shipping. **Where is my collectible stored?** All collectibles on Phynite are stored at Crozier Fine Art in undisclosed locations that are specifically designed to store fine art. These items are securely stored in an environmentally-controlled facility where every measure is taken to ensure utmost security and quality. **Are my collectibles insured?** We assure comprehensive insurance for your collectibles, valued at market price upon their entry into the vault. This coverage extends through every phase, including tokenization, redemption, and during their secure storage at Crozier Fine Art, providing you with unwavering peace of mind. **Should my collectibles be graded before sending it to Phynite?** Currently, we welcome items already authenticated by leading third parties such as PSA, Beckett, and CGC, ensuring the highest standards of quality and authenticity. **What are the fees involved with buying and selling on Phynite?** Phynite currently offers 0% trading fees. Just keep in mind that both buyers and sellers are responsible for covering any gas fees associated with their transactions on the platform. # Overview ## Our Goal Phynite's mission is to create the easiest, fastest, and most secure way to trade the value of physical assets. ## The Phynite Protocol The Phynite Protocol is our ultimate solution, and it consists of the specific components that we use to create what we believe is the most efficient technological and business method. Through the Phynite Protocol, we are able to allow users to trade legal ownership rights of physical assets through the blockchain, which has never been done before. The protocol consists of details regarding Contractually Bound NFTs (CBNFTs), the necessary components in the specialized CBNFT smart contract, the legal elements in the standard legally binding contracts, and etc. To learn the specific technical details, read the [Phynite Protocol White Paper](/technology/phynite-protocol). ## Contractually Bound Non-Fungible Tokens (CBNFTs) Contractually Bound Non-Fungible Tokens serve as the core component of the Phynite Protocol. CBNFTs are essentially specialized NFTs that can legally obligate a party or parties to take certain actions depending on the state of the blockchain. Phynite uses CBNFTs within the Phynite Protocol by connecting them to real physical assets. # Phynite Protocol A protocol which essentially allows people to securely trade ownership rights of physical assets digitally. The Ethereum blockchain provides a part of the solution, as it is a transparent and decentralized network that allows for smart contracts, specifically the ERC-721 (Non-Fungible Token Standard) smart contract, to be uploaded onto the Ethereum network. Organizations, like Phynite, can create legally binding contracts with entities, and the contract will have conditions that such organizations will be legally obligated to execute based on how such entities change the state of the ERC-721 smart contract. The legal binding of an NFT’s state to a party’s actions causes these NFTs to be Contractually Bound Non-Fungible Tokens (CBNFTs). Organizations like Phynite will be responsible for securely storing physical assets, and these assets will have CBNFTs which it corresponds to (throughout the rest of this white paper, such organizations will be referred to as guardian organizations, or guardian companies). Owners of such CBNFTs will be able to exercise legal rights through cryptographic functions that only the rightful owners may exercise, whether that is selling the CBNFT, burning the CBNFT to redeem the physical item, or etc. The validity of the legally binding contracts can be proven through the use of the Elliptical Curve Digital Signature Algorithm (ECDSA), and signatures created by the ECDSA can be stored on the Interplanetary File System (IPFS), a distributed and immutable file system, to serve as digital receipts to the signatures. These signatures along with other possible data can be stored on the blockchain by storing the IPFS files' Uniform Resouce Identifiers (URIs) onto the blockchain through the Protocol's specialized CBNFT smart contracts. # 1. Introduction The Phynite Protocol was built on the belief that the digitalization of physical assets is a valuable process that will benefit the lives of everyday consumers. The goal of a business is to create and capture value, and this protocol was created to aid businesses like ours in their attempts to create products that users want and need. The following subsections describe how exactly digitizing physical assets creates value, the problems that arise when attempting to connect physical assets to those of digital form, and the ways in which the Phynite Protocol elegantly solves those issues. ## 1.1 The Benefits of Digitizing Physical Assets By creating a digital token that corresponds to a physical asset, the cost of shipping is no longer necessary for the transferring of the value of physical assets, reducing the amount of value lost between every transaction. Instead of using services like eBay to list, sell, and ship items, consumers can instantaneously trade the ownership rights of physical assets without wasting time and resources. Although there is a fee that users must pay in gas fees for using Ethereum’s network, it is far more affordable than shipping fees, and the distance between trading parties nor the size of the physical asset affects the gas fee. Furthermore, the lack of need for the transportation of physical assets allows for the globalization of trade for items of smaller value, and increases the value retention of items of greater value. For example, it simply would not make sense for someone in America to buy a physical asset owned by someone in Japan for $400, and have to pay $100 in shipping fees. However, using the Phynite Protocol, one can buy the rights to the asset, not pay shipping fees, and attain its value for a mere fraction of the trading fee all in less than a minute. Globalization will increase the possible number of buyers and as we’re dealing with finite, physical goods, the supply is fixed and the increasing demand will likely lead to an increase in the value of the physical assets. Using the Phynite Protocol, guardian organizations are responsible for maintaining the condition of the physical assets which they store, alleviating investors of that responsibility. In comparison to everyday consumers, guardian organizations that use the Phynite Protocol should be more well equipped in keeping physical assets in pristine condition, maintaining the correct amount of light exposure, humidity, and security of the physical items. The rise in popularity of NFTs have shown that people are willing to invest in digital tokens as they can be conveniently stored in cryptographic wallets, and using the Phynite Protocol, people can do the same with physical assets. Without using any physical space, consumers can now hold large portfolios of physical assets which already have established markets, and sell such assets at any time, in the comfort of their home, or anywhere they have access to the internet and their crypto wallet. As aforementioned, the rise in popularity of NFTs in the past couple of years have shown that people are willing to invest in digital tokens, however the highly speculative value of such NFTs have shown to be an issue as well. People invest in NFTs believing that other people in the future will buy the NFTs from them at higher or similar prices at which the NFTs were bought. However, there are many times in which there are even no buyers who are willing to buy the NFTs at any given price, and this causes the values of the NFTs to simply cease to exist. However, with the Phynite Protocol’s CBNFTs, if a buyer cannot be found, the rightful owner can simply redeem the physical asset that corresponds to the CBNFT and sell it on an already existing market of buyers. Although physical assets are speculative in value as well, there are many established markets for physical items ranging from sports memorabilia, Pokemon Cards, to even automobiles, where there are many buyers looking for a fair price on such items. ## 1.2 The Issue of Trust The concept of creating NFTs that are backed by physical assets has been around for quite some time, and this is due to the fact that there are benefits that this technology can create, as previously stated. A small number of companies in the past and present have attempted to solve this challenge, and although some have succeeded on a small level, no company has yet to create and implement an adequate solution that has claimed dominant market share over the concept of physically backed digital assets. This is due to the main issue that arises when digitizing physical assets: trust. For physically backed digital assets to exist, a 3rd party must be responsible for maintaining the condition of the physical asset, and they must also be able to hand over such asset if it is redeemed by the rightful owner. More importantly, the rightful owner and potential buyers must have trust in that 3rd party to carry out the promised actions. ## 1.3 The Phynite Protocol's Solutions As previously stated, quite a number of companies have attempted and are attempting to implement the idea of digitizing physical goods. There have been companies that attempted to build trust by endorsing famous celebrities, creating a process that decentralizes the physical storage of items via financial incentives, or even using partnerships with popular brands. However, the number of scams in the past couple of years in the crypto space has brought trust in Web3 companies to an all time low. Therefore, the Phynite Protocol was designed to create maximum trust in guardian companies such as Phynite to be the 3rd party companies who can be entrusted to safely store the physical goods that correspond to NFTs. The way in which the Phynite Protocol establishes trust is quite simple, and it is by allowing users to trust in a system they are already familiar with: the US Legal System. By creating legal contracts that are initialized when a user buys a Contractually Bound Non-Fungible Token (CBNFT) and having conditions that are triggered by changes to the CBNFT’s state on the Ethereum blockchain, users can have the trust that guardian organizations will deliver upon the promised conditions as they are legally obligated to carry them out. Furthermore, decentralization/transparency of blockchain technology essentially ensures that no one except for the rightful owner may carry out functions that can alter the state of their CBNFT. The ways in which digital signatures can be used to cryptographically verify the legitimacy of the legally binding contracts will be explained later in the white paper. # 2. Contractually Bound Non-Fungible Tokens Contractually Bound Non-Fungible Tokens, or CBNFTs are a variant to normal NFTs, and they are essentially NFTs which can legally obligate a party to carry out actions based on what happens to the state of the NFT. Although there can be different ways in which two parties can be contractually bound to an NFT, the Phynite Protocol simply requires a guardian company and a prospective buyer of a CBNFT to sign a legally binding contract. The legally binding contract will need to cite specific information such as the address of the Ethereum smart contract, the tokenId, and the physical item which is being contractually bound to the corresponding NFT. The details of the standard legally binding contracts will be explained in the next section of the white paper. It is important to note that although Phynite will only use this technology for the Phynite Protocol to implement a system of physically backed NFTs, CBNFTs are a technology that can be used by other entities for virtually any contractual agreement between two parties that depend on the state of an NFT. The blockchain is a great tool for ensuring that only the rightful owners of specific crypto wallets, which essentially hold cryptographic keys, have the power to implement functions that can change the state of smart contracts in specific ways. Later in this white paper, we’ll talk about how we can further increase the security of CBNFTs by uploading the signatures of legally binding contracts onto the blockchain, the specific smart contract we have designed to allow this feature, and how we plan to deliver this technology in the near future. # 3. Standard Legally Binding Contract Although there may be different variations of legally binding contracts that the Phynite Protocol uses in the future, there is a set of information that will be required for the contracts to be legally binding, and also for the basic functionalities of the protocol. Simply put, the standard legally binding contract is a contract between the guardian company that agrees to store the physical asset, and the potential buyer of the CBNFT that corresponds to such physical asset. As stated by Cornell Law School’s Legal Information Institute, \[1] “The basic elements required for the agreement to be a legally enforceable contract are: mutual assent, expressed by a valid offer and acceptance; adequate consideration; capacity; and legality.” In addition to such components, the standard legally binding contracts will require contact information of the guardian company that is responsible for storing the physical asset in consideration, as well as the user who is agreeing to the conditions of the said contract. The following subsections will describe in detail these legally necessary components, as well as additional components that are required for the Phynite Protocol’s functionalities. ## 3.1 Contact Information of Both Parties The first party, or the guardian company agreeing to safeguard the physical asset, must include the legal name of their organization as well as the address of their business. The second party, or the potential buyer of the CBNFT that corresponds to the physical asset in consideration, must include their legal name, phone number, email address, and permanent address. Although participants of the Web3 space may be opposed to the idea of trusting centralized entities with personal information, correct contact information is necessary for a contract to be legally binding, and will serve to protect their rights as well. ## 3.2 Offer And Acceptance As previously stated in this section, an offer and an acceptance are necessary components to make a contract legally binding. Using software, guardian organizations can automate the process of creating offers, essentially generating legally binding contracts for CBNFTs whenever users request to buy a CBNFT. Furthermore, during this process of automatic generation, such companies can use cryptographic wallets to sign the legally binding contract, which can essentially prove that the contract was one that was authentically created by the company. The way in which this is done and how this further improves the security of storing users’ contact information will be explained later in the white paper. When the offeree, or the user that is offered a contract, finishes reviewing the legally binding contract, they can sign the contract using their crypto wallets, and this can serve to prove that the user initiated an acceptance of the legally binding contract. ## 3.3 Consideration The consideration is the main part of a legally binding contract, and essentially what both parties promise each other in exchange for the other fulfilling their promise. The consideration that is used for the Phynite's Protocol will be written to include: ***Party 1 (The company)’s Consideration:*** *Party 1 must maintain the physical state of the Physical Item, and deliver the Physical Item to the location of Party 2’s once Party 2 fulfills their consideration.* ***Party 2 (The user)’s Consideration:*** *Party 2 MUST first acquire the CBNFT with the TokenId of \[TOKENID] within \[EXPIRATION TIME] of the Effective Date, whether it is through Buying or by receiving the CBNFT with the TokenId of \[TOKENID] through a Transfer. Then, Party 2 must Burn the CBNFT and pay for the shipping fee (a shipping fee that does not profit Party 1) to redeem the Physical Item.* ## 3.4 Identification of the Assets, Terms, and Definitions First of all, the physical assets and digital assets in consideration must be identified. Furthermore, such assets should be tied to a term that can be used to easily identify the assets in the legally binding contract. For the physical item, the name of the item as well as the serial number or unique identifier associated with the physical item must be cited in the legally binding contract, and associated with a key term such as “Physical Item.” The digital asset on the other hand, which is the CBNFT that corresponds to the physical asset, needs to be identified using tokenId and smart contract address, which will be defined in the following paragraphs. The American law system is a common law system, which is essentially a procedure of creating legal judgements based on precedent or comparable court cases. Crypto technology is still very new, and this means that there are not many precedents or comparable court cases that relate to such issues. This calls for companies that use the Phynite Protocol to concretely define unfamiliar terms in legally binding contracts to decrease ambiguity. The terms that must be defined and their definitions are as follows: ***CBNFTs** (Contractually Bound Non-Fungible Tokens) - NFTs (Non-Fungible Tokens) that can determine the legal obligations of entities through the changes of its state. CBNFTs can be transferred or burned through our Phynite CBNFT Smart Contract.* ***Phynite CBNFT Smart Contract** - PHYNITE LLC’s smart contract on the Ethereum Blockchain that allows the transaction of CBNFTs. The smart contract allows for anyone with an Ethereum wallet and a sufficient balance in such wallet to buy a listed CBNFT, and gives the rightful owner of the Ethereum wallet that holds the CBNFT the exclusive right of selling or burning the said CBNFT. The smart contract’s Ethereum address is: \[SMART CONTRACT ADDRESS].* ***Burning** - References to the term “Burning” in this Agreement mean specifically the burning of CBNFTs which is done through calling the “burnToken” function in the Phynite CBNFT Smart Contract; only the rightful owner of the Ethereum wallet that holds the CBNFT may execute this function. "Burning" a CBNFT causes it to no longer exist, meaning that it would not be owned by any Ethereum account.* ***Transferring** - References to the term “Transferring” in this Agreement mean specifically the transferring of the ownership of a CBNFT to another Ethereum wallet which can be done through calling the “transferFrom” or “safeTransferFrom” functions in the Phynite CBNFT Smart Contract; only the rightful owner of the Ethereum wallet that holds the CBNFT may execute these functions.* ***Buying** - References to the term “Buying” in this Agreement mean specifically the buying of a CBNFT with Party 2’s Ethereum wallet which has the wallet address of \[WALLET ADDRESS]. This action should be taken through Phynite’s CBNFT marketplace web application. The web application uses the Seaport Protocol (a protocol that allows the sale/auctioning of NFTs for cryptocurrencies), and the protocol uses the “transferFrom” or “safeTransferFrom” functions in the Phynite CBNFT Smart Contract. One can officially buy a CBNFT by executing a buy order, or by bidding or offering a price for a CBNFT and getting that bid or offer accepted by the seller of the said CBNFT.* ***Selling** - References to the term “Selling” in this Agreement mean specifically the selling of a CBNFT to another Ethereum wallet which can be done through Phynite’s CBNFT marketplace web application. The web application uses the Seaport Protocol (a protocol that allows the sale/auctioning of NFTs for cryptocurrencies), and the protocol uses the “transferFrom” or “safeTransferFrom” functions in the Phynite CBNFT Smart Contract. Only the rightful owner of the Ethereum wallet that holds the CBNFT may create sell or auction orders, and when a buyer executes a buying transaction or the seller accepts a bid or offer, the item has officially been sold.* ***TokenId** - The TokenId is a positive integer that is the identification number of a CBNFT in a Phynite CBNFT Smart Contract.* ## 3.5 Termination The termination clause is a very necessary component of the Phynite Protocol’s standard legally binding contracts. This is due to the fact that a contract must be terminated if a user does not buy the CBNFT after signing the contract, or sells/transfers the CBNFT which they rightfully own. The contract should be terminated after the following events: 1. *Party 2 does not acquire the CBNFT with the TokenId of \[TOKENID] within \[EXPIRATION TIME] of the Effective Date, whether it is through Buying or by receiving the CBNFT with the TokenId of \[TOKENID] through a Transfer.* 2. *Party 2 Sells the CBNFT with the TokenId of \[TOKENID] or Transfers it to a different Ethereum wallet.* ## 3.6 Formatting of the Legally Binding Contract The legally binding contracts used by the Phynite Protocol must be able to be signed using the Elliptic Curve Digital Signature Algorithm (ECDSA), as well as easily modified by our software programs everytime it is generated prior to a user buying a CBNFT. For this purpose, formatting the legally binding contract in JSON (JavaScript Object Notation) format is the most optimal, as it is a flexible format that can be stringified (converted to string variable type) before being input into the ECDSA algorithm. ## 3.7 Receipts for Users after Signing For the ability to verify legally binding contracts as will be explained in the following section, users must hold the original legally binding contract which they have signed. This makes it important for guardian companies to send users a copy of such a contract immediately after they sign it. The legally binding contract will be emailed to the user after they have signed it, containing a PDF version of the contract that can be visually read, as well as the contract in JSON format for cryptographic verification. The email should also include the digital signature, wallet address used to sign the contract, as well as the IPFS URI which points to the digital signature publicly. # 4. Digital Signatures Cryptographic signatures are a key component in popular blockchain cryptocurrencies such as Bitcoin and Ethereum. The cryptographic signature algorithm used by Bitcoin and Ethereum is the Elliptic Curve Digital Signature Algorithm (ECDSA), and this algorithm is used for validating transactions, ownership, and even message signatures. Ethereum crypto wallets, which are essentially Ethereum accounts, are entities on the Ethereum network with an Ether balance that can send transactions on the network. Ethereum accounts are made up of a cryptographic pair of keys: public and private \[2], and they can be used to sign transactions or messages and also prove the validity of signatures. Although the private and public key pairs associated with Ethereum accounts are mainly used for the purpose of signing and validating transactions, they can be used to sign messages, and this ability serves as a core functionality of the Phynite Protocol. When using the ECDSA, private keys can be combined with messages to generate values known as signatures. These signatures, unlike the results of encryption algorithms, are nearly impossible to revert. However, with the combination of the original message, the address of the private key it was signed with (the public key), and the signature, the validity of the signature can be verified. Signing using ECDSA works as follows \[3]: *ECDSA signatures consist of two numbers (integers): r and s. Ethereum also uses an additional v (recovery identifier) variable. The signature can be notated as {r, s, v}.* *To create a signature you need the message to sign and the private key (dₐ) to sign it with. The “simplified” signing process looks something like this:* 1. *Calculate a hash (e) from the message to sign.* 2. *Generate a secure random value for k.* 3. *Calculate point (x₁, y₁) on the elliptic curve by multiplying k with the G constant of the elliptic curve.* 4. *Calculate r = x₁ mod n. If r equals zero, go back to step 2.* 5. *Calculate s = k⁻¹(e + rdₐ) mod n. If s equals zero, go back to step 2.* *Because we use a random value for k, the signature we get is different every time. When k is not sufficiently random, or when the value is not secret, it’s possible to calculate the private key using two different signatures (“fault attack”). The random generation methods of k varies depending on wallet providers, and tend to be pseudo-random enough where fault attacks are not common.* Verification using ECDSA works as follows \[3]: *In order to verify a message, we need the original message, the address of the private key it was signed with, and the signature {r, s, v} itself.* *The simplified process for recovering the public key looks like this:* * *Calculate the hash (e) for the message to recover.* * *Calculate point R = (x₁, y₁) on the elliptic curve, where x₁ is r for v = 27, or r + n for v = 28.* * *Calculate u₁ = -zr⁻¹ mod n and u₂ = sr⁻¹ mod n.* * *Calculate point Qₐ = (xₐ, yₐ) = u₁ × G + u₂ × R.* *Qₐ is the point of the public key for the private key that the address was signed with. We can derive an address from this and check if that matches with the provided address. If it does, the signature is valid.* As most participants in the Web3 space have Ethereum crypto wallets, they can use the private keys associated with their accounts to easily sign the standard legally binding contracts of the Phynite Protocol using the Elliptic Curve Digital Signature Algorithm. Furthermore, the legally binding contracts between guardian companies and their users should be signed by such companies using their own Ethereum Accounts prior to the user signing the legally binding contracts, and this could serve beneficial legally, in terms of security, and validity; the reasoning behind such benefits will be explained in the next section. When the digital signatures are created, they can serve as receipts to the validity of legally binding contracts between the company and the user, and when this signature is uploaded onto a distributed and immutable file system such as IPFS, such signatures become tamper-proof. # 5. Off-Chain and On-Chain Storage of Digital Signatures As previously stated in different segments of this white paper, when a user signs a legally binding contract and creates a digital signature, that signature will be stored on the Interplanetary File System, or IPFS. This section of the white paper will discuss the benefits of storing signatures on IPFS, the security measures taken to store signatures publicly, and how the Phynite Protocol can eventually support the storage of digital legal signatures on the Ethereum blockchain itself. ## 5.1 Benefits of Storing Digital Signatures on IPFS IPFS is a distributed and immutable peer-to-peer (p2p) storage network, and its permanence and non-centralized functionalities have made it a popular tool in the Web3 space. When a file is added to IPFS, \[4] the file is split into smaller chunks, cryptographically hashed, and given a unique fingerprint called a content identifier (CID). The CID acts as a permanent record of your file as it exists at the point in time. This means that to overwrite previously uploaded files on IPFS, new CIDs must be generated, making the file system immutable. Furthermore, a node can pin content in order to keep (and provide) it forever, and the permanence paired with the ability to query the stored files using HTTPS gateway providers have made it the most popular solution for storing large files that are connected to NFTs. Using IPFS, digital signatures can now serve as permanent digital receipts that can verify the validity of legally binding contracts. Although the hope is that the legally binding contracts used by the Phynite Protocol will never be brought to court, the contracts exist to serve this exact purpose: the legal obligation for both parties to be honest prevents the need for trust and reduces the likelihood of bad actors. ## 5.2 Security Measures for Publicly Storing Digital Signatures To verify the validity of digital signatures created by users who have signed legally binding contracts, you need the original legally binding contract, the wallet address of the crypto wallet used to sign, and the digital signature. This could impose a security risk however, as the wallet addresses and digital signatures associated with the Phynite Protocol are publicly stored information, and one could theoretically guess the contents of the legally binding contract associated with each digital signature. The contents of the legally binding contracts hold privacy-sensitive legal contact information of users, therefore there must be steps taken to ensure security for users. This issue can be solved quite simply, however, and it is done by simply requiring a digital signature from companies like Phynite and including it in the message signed by users. When a user generates a legally binding contract so that they can purchase a CBNFT, a secure server holding public and private key pairs of an Ethereum account can automatically sign the legally binding contract prior to the user signing such contract. This will make the contracts legally binding, as it is signed by an authorized server that can sign on behalf of companies like Phynite, and increase the cryptographic security of the Phynite Protocol. For malicious actors to now guess the private contact information of users, they would have to have the original legally binding contract (including users’ private contact information) and the private key of the company’s Ethereum account to generate an identical signature, making it nearly impossible for such events to occur. ## 5.3 Storing Digital Signatures On-Chain The Ethereum blockchain can be simply thought of as a distributed database that stores immutable history of transactions. Instead of a distributed ledger like Bitcoin, \[5] Ethereum is a distributed state machine. Ethereum's state is a large data structure which holds not only all accounts and balances, but a machine state, which can change from block to block according to a predefined set of rules, and which can execute arbitrary machine code. This allows for smart contracts to store data inside the Ethereum blockchain, which is a powerful function if used correctly. To further solidify the validity of the digital signatures of legally binding contracts, we can use the power of smart contracts to store the signatures on-chain. Although it does come with a small cost in gas fees to write more data onto the blockchain, the feature will add the benefit of decentralizing the storage of the digital signature. Without this feature, companies like Phynite and their users will each have to store the digital signature. However, this data can be securely stored on the blockchain, and the blockchain does not lie. To address the issue regarding the extra gas fees necessary to store more data on the Ethereum blockchain, we can use a solution that many NFT projects already use: storing data on IPFS and storing the IPFS URI (Uniform Resource Identifier, Ex: ipfs\://\[CID]) on the blockchain. Although signatures produced by signing with crypto wallets are not too large in terms of character length, the size difference in terms of percentage is quite large when scaled. Such digital signatures are 132 characters, which is 149% longer than IPFS URIs which are 53 characters. Such data will need to be stored as a string type variable (variable type offered by Solidity, the most popular object-oriented programming language for implementing smart contracts on Ethereum), which has a data size dependent on the number of characters. # 6. Specialized CBNFT ERC-721 Smart Contract ERC-721 smart contracts are the standard for representing the ownership of non-fungible tokens, and they can be modified for different purposes, such as storing the digital signatures of legally binding contracts. Although the additional functions that allow for the instantaneous uploading of signatures every transfer will not be authorized until a trading protocol for this purpose is built, tested, and established, those that use the Phynite Protocol can still use the specialized ERC-721 smart contract as it is certainly possible for this upgrade to be supported, and it will be executed in the near future. This section of the white paper will discuss how standard NFT smart contracts work, the differences of the specialized CBNFT smart contract compared to that of standard NFT smart contracts, as well as its upgradability. ## 6.1 How Standard NFT Smart Contracts Work The ERC-721 standard smart contract consists of many functions that can be used for its core functionality of representing ownership of non-fungible tokens. There is a common way such functions are used for the majority of NFT projects, and we must first establish the common methods to display our differences. Standard NFT smart contracts, including those used for popular NFT projects such as Bored Ape Yacht Club (BAYC), store a base IPFS URI inside their smart contract that points to a folder file containing the IPFS URIs of all of their NFTs’ metadatas, that can be indexed by following the base IPFS URI with a “/\[INDEX #]”. Metadata in the NFT space is essentially text in a JSON format containing an NFT’s information such as name, image IPFS URI, or unique traits. For example, the following is BAYC #0’s metadata with the IPFS URI of "ipfs\://bafybeihpjhkeuiq3k6nqa3fkgeigeri7iebtrsuyuey5y6vy36n345xmbi/0"*:* ``` { "image":"ipfs://QmRRPWG96cmgTn2qSzjwr2qvfNEuhunv6FNeMFGa9bx6mQ", "attributes": [ {"trait_type":"Earring", "value":"Silver Hoop"}, {"trait_type":"Background","value":"Orange"}, {"trait_type":"Fur","value":"Robot"}, {"trait_type":"Clothes","value":"Striped Tee"}, {"trait_type":"Mouth","value":"Discomfort"}, {"trait_type":"Eyes","value":"X Eyes"} ] } ``` The majority of NFT projects use this method, as they only need to store one IPFS URI which contains a folder of premade JSON files that contain the NFT’s information. When it is time for an NFT project to launch its collection, buyers can mint the NFTs using the “mint()” function of smart contracts which generally have the parameters of “payableAmount (ether)” and “numberOfTokens (uint256).” However, this only works for normal NFT collections that can be arranged ahead of time that have the same minting, and for the purposes of systems such as the Phynite Protocol, different mechanisms are necessary. Furthermore, most NFTs are transferred using the “transferFrom()” function \[6], which is an interface function that is required by the ERC-721 standard. It has the parameters of “from (address),” “to (address),” and “tokenId (uint256),” and by inputting correct arguments into the “transferFrom()” function, the rightful owners or approved addresses can transfer the ownership of standard NFTs. ## 6.2 Differences to Standard NFT Smart Contracts As stated in the previous subsection, the specialized CBNFT smart contracts for the Phynite Protocol need a different method of minting as the standard NFT smart contracts’ minting methods only work for collections that can have their NFTs’ metadata premade. This is due to the fact that when someone wishes to create a new CBNFT, new metadata needs to be created and stored on the blockchain to correspond to an NFT. A solution to this issue is to simply not use IPFS, as IPFS limits the ability to update metadata flexibly. The large benefit of using IPFS is the fact that creators don't have to maintain a server that stores the metadata, and owners of NFTs that have IPFS metadata don't need to worry about the metadata suddenly being unsupported by a server. However, as a company, we have the resources and legal obligation to support such a server, therefore we don't need to face the disadvantages that arise when using IPFS for metadata. This means we can have a designated base URI that would be a HTTPS URL, and whenever a new CBNFT is minted on the smart contract, we would simply upload the corresponding metadata onto the server so that it can be retrieved when the NFT's metadata is indexed through the smart contract's "tokenURI" function. Furthermore, only authorized addresses should be allowed to mint, as new CBNFTs that are being added to the protocol’s smart contracts should be thoroughly verified. This verification of eligible minters can be done by creating a list of addresses that are authorized to mint that only the owner of the smart contract can modify, then using the “require()” function to check if a certain address that is attempting to mint exists in the authorized array of addresses. Lastly, the standard parameters of “payableAmount” or “numberOfTokens” will not be necessary for the minting function, however, the parameter of "tokenId" will be necessary to assign specific tokenIds to each NFT for reasons to be explained in the next subsection. Another large difference compared to standard NFT smart contracts are the CBNFT smart contract’s additional specialized “transferFrom” functions that should be able to instantaneously upload the IPFS URIs of legal contract signatures when transferring the ownership rights of the NFTs. Furthermore, a "uint256 to string" map variable that can store the IPFS URIs of legally binding contracts’ digital signatures will be necessary as well; we’ll call this map “legalContractSignatureURIs”. As the “transferFrom()” functions are interface functions required by the ERC-721 standard and simply changing the parameters will result in a change in the function signature (meaning that this function cannot be overridden for our purposes), a new function with a different name such as “legalTransferFrom()” is necessary. The specialized transfer function will have the extra parameter of string type for the legal digital signature, besides the other necessary parameters as stated in subsection 6.1. The new function will replace the old digital signature IPFS URI in the “legalContractSignatureURIs,” as the change in ownership necessitates a new legal contract to be bound to the CBNFT. ## 6.3 Proof of Identity and TokenId An extra utility that the CBNFT smart contract has is the ability to generate hashes based on the uniquely identifiable attributes of physical assets, and such hashes can be used as the tokenId or unique identifier for CBNFTs. Such hashes are called Proofs of Identity, as they can be used to verify the identities of physical assets that correspond to such tokenIds. The onchain function which creates these hashes is called "generateProofOfIdentity()," and it uses the popular hashing function, keccak256. The data to be hashed, which we will call "itemId" is a human readable string that describes the physical assets, and a salt (random number that increases cryptographic security) will be used when hashing as well. The hash, which is a 64 digit hexadecimal number preceded by "0x", can be translated to a base 10 number using an onchain function called "getTokenId()." Lastly, a Proof of Identity can be easily validated by using another onchain function called "validateProofOfIdentity()," which has the parameters of "proofOfIdentity," "itemId," and "salt".\ \ There are 3 main reasons as to why the Proof of Identity is necessary for the Phynite Protocol: 1. When users are creating CBNFTs with us by submitting physical assets and signing legally binding contracts that bind both the company and the users to such CBNFTs, we would need to know the tokenIds of the CBNFTs before they are minted. TokenIds are the unique identifiers used to identify the CBNFTs in legal documents which are crucial to legal ownership of assets corresponding to CBNFTs, therefore Proof of Identity can be used to generate such unique identifiers. 2. Phynite CBNFTs use an HTTPS URL for the baseURI of the CBNFTs' metadata as opposed to IPFS which does not allow data at a certain URI to be changed. The Proof of Identity can be used to prevent tampering of the metadata and cryptographically prove that a CBNFT of certain tokenId has a corresponding physical asset of certain attributes and unique identifiers. 3. The CBNFT contracts can be used for physically-backed NFT drops. When a user mints a CBNFT in the drop, the the CBNFT will have a tokenId generated from a Proof of Identity. This way, companies like Phynite will have no way of switching assets connected to specific CBNFTs, and minting will not require trust in such companies as they will be legally liable if they tamper with cryptographic evidence. ## 6.4 Upgradability As previously stated in different parts of this white paper, the instantaneous uploading of the IPFS URIs of legal contract signatures during ownership transfers is a feature that will not yet be supported, but in the near future. This is due to the fact that the specialized “legalTransferFrom()” functions will need to be used during trades, and the popular trading protocols that allow for the selling and auctioning of NFTs use the ERC-721 standard’s “transferFrom()” function for transferring the ownership of NFTs. The current most gas-efficient trading protocol is the Seaport Protocol by Opensea, and although the software for this protocol is open source, it is a fairly intricate protocol which necessitates modification to not only the smart contract but its numerous SDKs as well. The Seaport Protocol achieved its efficiency through low level programming using a Solidity “assembly” language called Yul, and a trading protocol of that level of complexity that may potentially manage millions of dollars needs thorough auditing from specialists. Although the time period in which this development will finish is uncertain, one thing for certain is that this is an engineering problem that can 100% be solved by competent engineers. Therefore, the CBNFT smart contracts for the Phynite Protocol will have the upgradability to allow such features. This can be achieved simply by having a boolean variable that determines whether or not the “legalTransferFrom()” function is allowed, a function reserved for the owner of the smart contract that can modify that boolean value, and lastly a modifier of sorts that checks the boolean value before allowing the “legalTransferFrom()” function to be ran. # 7. Minting The minting process can vary depending on the way in which the guardian organization chooses to verify physical items before minting a CBNFT and transferring its ownership to the rightful owner. However, there are certainly required components such as verification of the physical item by a credible authority, some form of legal writing in place to ensure that the guardian company nor the users cannot be defrauded, and lastly a minting and transferring of the CBNFT to the rightful owner. The minting and transferring functions on the CBNFT smart contract can be run separately, however custom functions such as a “mintForAddress()” type of function that combines both functions in one function. ## 7.1 Phynite’s Minting Process Phynite will have the following procedure for minting CBNFTs: 1. Users will have to initially fill out a Physical Item Verification Form which will include questions that ask for the details of the physical item they wish to submit. The form will include parts where users can submit images of the item as well, so experts at Phynite can do an initial eye test and ensure that the item is one that is allowed for minting at Phynite. 2. Users will have to sign a legally binding contract where we’ll ensure that they’ll have the right to reclaim the item as long as they send us the item which they submitted the Physical Item Verification Form for. 3. Phynite will then send a protective and insured box that users can send their physical item in, and once they do so, our experts will verify the validity of the item. 4. Once the item is deemed valid, a 3D model will be made or a 3D scanning of the item will be done by artists to aesthetically represent the physical item as an NFT. 5. A CBNFT will be minted by authorized Ethereum accounts, and the ownership will be transferred to the rightful owner who may burn the CBNFT to redeem the item, sell, auction, or transfer the CBNFT. # 8. Conclusion We have proposed a system for the digital trade of ownership rights of physical items without relying on trust. We used the innovative technology of NFTs provided by Ethereum, and built on top of the transparency and decentralization of blockchain to connect the blockchain network to the real world. By combining the power of the established US legal system and blockchain, we have created the concept of Contractually Bound Non-Fungible Tokens, or NFTs which can legally obligate parties to carry out certain actions depending on its state. We have provided solutions to publicly store digital signatures of legally binding contracts on the blockchain to be used as digital receipts, while maintaining the privacy of users’ contact information. Although having a guardian company hold the physical items creates a lack of decentralization in certain aspects, decentralization is a feature that is used to replace trust, and we believe that the incentives created by the legally obligating power of the Phynite Protocol can serve that purpose as well. # 9. References \[1] Cornell Law School, Legal Information Institute, “contract,” In Wex, . \[2] Ethereum.org, “Ethereum Accounts,” In Ethereum Development Documentation, , November 2022. \[3] M. Zuidhoorn, “The Magic of Digital Signatures on Ethereum, , October 2020. \[4] Protocol Labs, “How IPFS Works,” . \[5] Ethereum.org, “Ethereum Virtual Machine,” In Ethereum Development Documentation, , November 2022. \[6] OpenZeppelin, “ERC 721,” In Contracts, . # Asset Storage and Insurance Unwavering Commitment to the Safety of Your Collectibles **Who is Crozier Fine Arts?** [Crozier Fine Arts](https://www.crozierfinearts.com/about-us), a beacon of innovation and a fervent admirer of art, has been leading the global art storage industry for over four decades. With a sprawling 1.8 million square feet of premium art vaulting facilities, Crozier is at the forefront in 30 key locations across 11 major art markets worldwide. Their comprehensive art logistics solutions, encompassing art handling, installation, packing, crating, and shipping, are backed by a team deeply versed in the nuances of art logistics, earning the trust of artists, collectors, galleries, and museums alike. **How does the storage of my collectible work?** In collaboration with Phynite, Crozier Fine Arts offers unparalleled security for your collectibles, stored in undisclosed, secure locations. Each item is meticulously encased in tamper-proof protective sleeves, equipped with Radio Frequency Identification Tags and security labels, assuring maximum safety and peace of mind. **Does it cost anything to store my collectible with Crozier Fine Art?** We provide a cost-free solution to safeguard your valuable items. Enjoy complimentary storage and insurance services, preserving the pristine condition of your assets without any additional expense. **What happens to lost or damaged collectibles?** As a global leader in art storage, Crozier is synonymous with security and excellence. In the rare event of loss or damage to your collectibles, rest assured that we will promptly notify you and reimburse the insured value directly to your digital wallet, ensuring your investment is always protected. **How can I ensure the authenticity of the collectibles listed on Phynite?** At Phynite, authenticity is non-negotiable. Every collectible is rigorously verified by renowned third parties such as PSA, Beckett, and CGC. Our mystery collections are sourced exclusively from suppliers renowned for their authenticity. Leveraging our deep connections with seasoned experts and investors in the trading card industry, we meticulously scrutinize every detail to authenticate each item, ensuring only the genuine make it to our esteemed clients. # Redeeming and Shipping Dive into the redemption and shipping process **Is it possible to redeem the physical asset and have it sent to me?** Every collectible featured on Phynite is redeemable exclusively by its owner, at anyplace and anytime. Moreover, the redemption process is designed to be straightforward and swift. **Can I own the digital asset through the marketplace and have the physical asset with me at the same time?** No. At Phynite, your physical collectibles are securely stored in Crozier Fine Arts’ vault for as long as you hold the digital asset. When you choose to claim your item, we will permanently burn the corresponding digital asset (CBNFT). Additionally, should you wish to create a new digital asset for a previously redeemed item, we will provide you with a completely new and unique digital asset, distinct from the original. **What locations are available to redeem the physical asset?** Currently, Phynite offers redemption of physical assets exclusively within the United States. However, we're excited to announce that in the near future, our services will expand, allowing users worldwide to redeem their physical assets, regardless of their location. **What fees are associated with the redemption process?** Users looking to redeem their physical asset will be responsible for covering shipping costs, as well as any customs duties or sales taxes, which may vary based on their country of residence. * Shipping Fees: Shipping costs can differ based on location. At Phynite, we're currently delivering to users within the United States. You'll be informed of all shipping fees associated with the redemption process at the time of checkout. * Sales Tax: For Phynite customers in the United States, sales tax is applied just like it would be for any standard physical item purchase, based on their Zip Code. This applies whether the payment is made using USDC, which has a 1:1 ratio with the US dollar, a credit card, or direct USD payments. The tax is calculated on the monetary value of the asset's most recent sale, determined by the amount of USDC used, or the equivalent value in USD at the time of transaction. When preparing the invoice, we use the last sale price of the asset in USDC or its USD equivalent to compute the sales tax. This amount is collected by Phynite and remitted to the respective states. It's important to note that Phynite does not profit from these taxes. Additionally, this process is consistent even for transactions that take place directly between two users, without the platform's direct involvement. Phynite is responsible for collecting and remitting sales taxes for these transactions, in line with the tax regulations followed by other online marketplaces like eBay or Amazon. This ensures compliance with state tax laws for all asset redemptions, maintaining transparency and legality in all transactions. # Adding Funds Adding USDC to your Phynite Account is very simple. Use the following steps successfully to add USDC to your Phynite Account! 1. **Open Coinbase**: Start by logging into your [Coinbase](https://www.coinbase.com) account. You can use either the desktop version or the mobile app. 2. **Purchase USDC**: In Coinbase, buy the amount of USDC (USD Coin) you plan to use. 3. **Prepare to Send USDC**: After buying USDC, find your USDC balance in Coinbase. Click the three dots next to it and choose 'Send'. 4. **Enter Digital Wallet Address**: Type in your Phynite account's digital wallet address. If you're not sure what your address is, you can find it in your Phynite account. 5. **Change the Network**: During the sending process, change the network option to Polygon. 6. **Send USDC**: After confirming all details, click 'Send now' to transfer your USDC to your Phynite account. # User Agreements Read over our Terms of Service, Privacy Policy, and Listing Guidelines to enure that you are using the platform for its intended use. We hope that you are enjoying using Phynite and never hesitate to reach out to our email, Instagram, Twitter, and Discord for further assistance. * Terms of Service * Terms and Conditions For Online Sales To Consumers * Privacy Policy # Terms of Service Last updated: July 24, 2024 1. **Introduction** 1. These terms of service (“ToS”) constitute a legally binding agreement between you (referred to herein as “you”, “your”, or “User”) and Phynite Corporation, a California Corporation located at 24445 Hawthorne Boulevard Torrance, CA 90501 (“Phynite”, “we”, “us”, or “our”), governing your interaction with the Service (as defined below). A Contractually Bound Non-Fungible Token (“CBNFT”) is a variant to a normal NFT. A CBNFT differs from a normal NFT because it can legally obligate a party to carry out actions based on what happens to the state of the NFT. 2. Certain services or elements of the Service, including without limitation any Phynite CBNFT or any Phynite profile hosted on a social media platform (e.g., Facebook, Twitter, Discord, or Instagram), may be subject to additional or supplemental terms, as set forth in these ToS or in connection with such services or elements and as are herein incorporated by reference (“Supplemental Terms” and, collectively with these ToS, the “Agreement”). If these ToS are inconsistent with any Supplemental Terms, the Supplemental Terms shall control solely with respect to such Service. 3. By browsing the website available at (the “Website”), offering for sale or selling a Collectible (as defined below) through the Service, participating in the minting, purchase, acquisition, or sale of a Phynite CBNFT (either directly from us or in a Secondary Sale), making a purchase from a third party using our payment gateway (a “Third-Party Purchase”), storing an Collectible with or redeeming an Collectible from Phynite, participating in other social media properties, and/or using any of our other services (collectively, the “Service”), you expressly acknowledge and agree that you have read, understand, and agree to be bound by this Agreement. If you do not agree to the terms set forth in this Agreement, you must not access or use our Website or any Service, including to purchase any Phynite CBNFT or to offer for sale, sell, store, or redeem any Collectible. 4. THE SERVICE INCLUDES A MARKETPLACE WHICH ALLOWS SELLERS (AS DEFINED HEREIN) TO OFFER TO SELL AND SELL COLLECTIBLES AND PHYNITE CBNFTS, AND BUYERS TO OFFER TO BUY AND BUY COLLECTIBLES AND PHYNITE CBNFTS TO EACH OTHER. ALL COLLECTIBLES AVAILABLE THROUGH THE MARKETPLACE ARE FURNISHED BY OR ON BEHALF OF SELLERS IN CONNECTION WITH SUCH SALES. YOU AGREE THAT, EXCEPT WHERE PHYNITE IS THE SELLER IN SUCH SALE, WE SHALL NOT BE A PARTY TO OR HAVE ANY RESPONSIBILITY OR LIABILITY FOR, ARISING OUT OF, RELATING TO, ASSOCIATED WITH OR RESULTING FROM ANY DISPUTES BETWEEN YOU AND ANY SELLER OF ANY COLLECTIBLE IN RESPECT OF THE USE, MISUSE, PROVISION OR FAILURE TO PROVIDE ANY SUCH COLLECTIBLE. 5. PLEASE READ SECTION 20 OF THIS AGREEMENT CAREFULLY, AS IT CONTAINS AN ARBITRATION AGREEMENT WHICH WILL, WITH LIMITED EXCEPTIONS, REQUIRE DISPUTES BETWEEN US TO BE SUBMITTED TO BINDING AND FINAL ARBITRATION. UNLESS YOU OPT OUT OF THE ARBITRATION AGREEMENT: (1) YOU WILL ONLY BE PERMITTED TO PURSUE CLAIMS AND SEEK RELIEF AGAINST US ON AN INDIVIDUAL BASIS, NOT AS A PLAINTIFF OR CLASS MEMBER IN ANY CLASS OR REPRESENTATIVE ACTION OR PROCEEDING; AND (2) YOU ARE AGREEING TO MANDATORY INDIVIDUAL ARBITRATION FOR THE RESOLUTION OF DISPUTES AND WAIVING YOUR RIGHT TO A JURY TRIAL ON YOUR CLAIMS. 6. PLEASE BE AWARE THAT SECTION 7 OF THIS AGREEMENT, BELOW, CONTAINS YOUR OPT-IN CONSENT TO RECEIVE COMMUNICATIONS FROM US. 7. THIS AGREEMENT IS IMPORTANT AND AFFECTS YOUR LEGAL RIGHTS, SO PLEASE READ CAREFULLY. BY CONNECTING YOUR WALLET (AS DEFINED BELOW) TO THE SERVICE, PURCHASING OR OFFERING TO PURCHASE PHYNITE CBNFTS THROUGH THE SERVICE, AND/OR OTHERWISE USING THE SERVICE, YOU AGREE TO BE BOUND BY THIS AGREEMENT AND ALL OF THE TERMS INCORPORATED HEREIN. If you do not agree to this Agreement, you may not access or use the Service or purchase any Phynite CBNFTs. 8. Please refer to our Privacy Notice for information about how we collect, use and share personal information about you. By submitting data through the Service, you expressly consent to the collection, use and disclosure of your personal data in accordance with the Privacy Notice. 9. Phynite reserves the right to change or modify this Agreement at any time and in our sole discretion. If we make changes to this Agreement, we will provide notice of such changes, such as by sending an email notification, providing notice through the Service or updating the “Last Updated” date at the beginning of these ToS. By continuing to access or use the Service at any point after such update, you confirm your acceptance of the revised ToS and all of the terms incorporated therein by reference. We encourage you to review this Agreement frequently to ensure that you understand the terms and conditions that apply when you access or use the Service. If you do not agree to the revised Agreement, you may not access or use the Service. 2. **Our Service** 1. **Minting Process** 1. Before the initial sale of the CBNFT, Users will have to fill out a Minting Pre-Verification Form which will include questions that ask for the details of the physical item they wish to submit. The form will include parts where users can submit images of the item as well, so experts at Phynite can do an initial eye test and ensure that the item is one that is allowed for minting at Phynite. 2. Users will have to sign a legally binding contract where we’ll ensure that they’ll have the right to reclaim the item as long as they send us the item which they submitted the Minting Pre-Verification Form for. 3. After an item has been approved, Phynite will then send a protective and insured box that users can send their physical item to the Phynite Vault. Upon receipt of the item, our experts will verify the validity of the item. 4. At the Phynite Vault, received collectibles are re-verified. Next, high quality photographs of the collectibles will be taken to represent the physical item as an NFT. Lastly, the collectible will be securely stored. 5. A CBNFT will be minted by authorized Ethereum accounts. We mint users’ CBNFT using their collectible’s scanned images and deposit it into their Ethereum wallet. The ownership will be transferred to the rightful owner who may burn the CBNFT to redeem the item, sell, auction, or transfer the CBNFT. 6. \*The Minting Fees will be waived until October 20, 2024. 2. **CBNFT Sales Process** 1. CBNFTs are made available for purchase by Users through our Website. Listing your CBNFT for sale places it on the explore page and allows instant purchases by potential buyers. Each Phynite CBNFT represents a certain individual Collectible as depicted in or otherwise corresponding to the artwork or listing information embodied by such Phynite CBNFT (the “Collectible”). Each Collectible is owned by the individual or entity offering such Collectible for sale (the “Seller”). When the individual or entity (the “Initial Seller”) desires to offer a Collectible for sale, the Initial Seller can use the Service to offer a Phynite CBNFT depicting such Collectible. After your CBNFT’s first sale, you earn 1% of each subsequent trade’s value. Ownership of a Collectible is transferred at sale of the corresponding Phynite CBNFT from the Seller to the buyer of the Phynite CBNFT (the “Buyer”). 2. It may take up to 12 hours for the Buyer to receive the CBNFT of token id. 3. **CBNFT Purchase Process** 1. Upon purchase of a Phynite CBNFT, the Buyer of such Phynite CBNFT assumes the Seller’s rights and responsibilities under the Seller’s contract for Vault Services and may, subject to their ongoing compliance with this Agreement (including without limitation payment of the Phynite Fee (as defined below)), either continue to engage the Vault Services with respect to such any Collectible for which they own the corresponding Phynite CBNFT, offer for sale and sell such Phynite CBNFT (and the corresponding Collectible) to a third party, and/or submit their Phynite CBNFT to the Service in order to terminate the Vault Services and request delivery of the Collectible. 4. **CBNFT Redemption Process** 1. To receive a CBNFT, linked physical item, users activate the “burn” function. This function deletes the physical collectible’s CBNFT so that it cannot be digitally traded after being removed from the Phynite Vault. Before a user burns a CBNFT, we require a users’ preferred shipping address for the collectible. After the address is confirmed, users must pay any shipping and service fees to receive the collectible. 5. **Phynite’s Role in the Sale and Purchase Process** 1. Except where explicitly set forth at point of sale, Phynite is not the Seller of any Collectible listed on the Service. While we may, in our discretion, help facilitate resolution of disputes through various programs, we have no control over the quality of Collectibles offered by Sellers on the Service. We cannot control or guarantee the truth or accuracy of the Initial Seller’s listing, the ability of Sellers to sell Collectibles and/or Phynite CBNFTs, the ability of Buyers to pay for Collectibles and/or Phynite CBNFTs, or that a Buyer and Seller will actually complete a transaction with respect to Collectibles and/or Phynite CBNFTs listed on the Marketplace. While Phynite may provide pricing and guidance for Collectibles and/or Phynite CBNFTs sold by Sellers on our Marketplace, such information is solely informational. We do not have control over the quality, timing, legality, failure to provide, or any aspect whatsoever of any Collectibles sold by the Initial Sellers or the subsequent Seller, or of the integrity, responsibility, or any actions of any Users. Phynite makes no representations about the suitability, reliability, timeliness or accuracy in public, private or offline interactions. When interacting with other Users you should exercise caution and common sense to protect your personal safety and property, just as you would when interacting offline with other persons whom you don’t know. NEITHER PHYNITE NOR ITS AFFILIATES OR LICENSORS IS RESPONSIBLE FOR THE CONDUCT, WHETHER ONLINE OR OFFLINE, OF ANY USER OF THE SERVICE. PHYNITE AND ITS AFFILIATES AND LICENSORS WILL NOT BE LIABLE FOR ANY CLAIM, INJURY OR DAMAGE ARISING IN CONNECTION WITH YOUR INTERACTIONS WITH OTHER USERS OF THE SERVICES OR YOUR USE OF OR INABILITY TO USE ANY COLLECTIBLE PURCHASED THROUGH THE SERVICES. 6. **Cryptocurrency Transaction Information** 1. In order to access and use certain features of the Service, including without limitation to purchase a Phynite CBNFT, you must connect to the Service using a software-based digital wallet that allows you to purchase, store, and engage in transactions using cryptocurrency and non-fungible tokens (your “Wallet”). ANY TRANSACTIONS INITIATED THROUGH OUR SERVICE ARE AFFECTED BY THIRD-PARTY DIGITAL WALLET EXTENSIONS. BY USING OUR SERVICE YOU AGREE THAT SUCH TRANSACTIONS ARE GOVERNED BY THE TERMS OF SERVICE AND PRIVACY NOTICE FOR THE APPLICABLE EXTENSIONS. You acknowledge and agree that certain information, including the public address of your Wallet and the transactions you conduct through that Wallet, may be publicly available and viewable on the applicable blockchain. Phynite does not own, operate, or control any blockchain or Wallet. Phynite is not an agent or intermediary of any User. Phynite does not store or have access to or control over any Phynite CBNFTs or any of a User’s private keys, passwords, Wallets, or other property. Phynite is not capable of performing transactions or sending transaction messages on behalf of any User. All transactions related to or initiated through the Service are recorded solely through the interactions of the User with the respective blockchain, which is not under the control of or affiliated with Phynite or the Service. 3. **Purchase and Sale of Phynite CBNFT Policies** 1. All pricing and payment terms for Phynite CBNFTs are as indicated at point of sale or otherwise on the Service, and any payment obligations you incur are binding at the time of purchase. You may not substitute any other currency, whether cryptocurrency or fiat currency, for the currency in which you have contracted to pay at the time of purchase. For clarity, no fluctuation in the value of any currency, whether cryptocurrency or otherwise, shall impact or excuse your obligations with respect to any purchase. 2. We cannot, and expressly do not, guarantee that Phynite CBNFTs will be available for purchase at the time you seek to purchase one. 3. When you purchase a Phynite CBNFT on our Website from an Initial Seller, such Phynite CBNFT is minted directly into the Wallet through which you connected to the Website and initiated payment. When you purchase a Phynite CBNFT from any then-current Seller after the Initial Seller, such Phynite CBNFT is transferred directly from the Seller to you. Except where Phynite is the Buyer or Seller of a Phynite CBNFT, Phynite does not hold custody of, nor take ownership or possession of, any Phynite CBNFT. Phynite CBNFTs can be transferred between Wallets on the Ethereum network (or any then-compatible blockchain or comparable third-party service). 4. You are responsible for ensuring that your Wallet has a sufficient amount of funds to cover the full cost of your purchase, including without limitation (i) transaction fees imposed by a third-party payment processor, (ii) any Taxes (as defined below), and (iii) Gas Fees. “Gas Fees” are fees assessed in connection with the computing energy required to process and validate transactions on a blockchain and may fluctuate in accordance with market conditions or activity on such blockchain. Phynite does not receive and has no authority with respect to any Gas Fees. 5. Any payments made to us via the Website will be effectuated through the underlying blockchain. We have no control over these payments or transactions initiated through your Wallet, nor do we have the ability to reverse any such payments or transactions. Phynite may add or change any payment processing Service at any time. Such Service may be subject to additional terms or conditions. Whether a particular cryptocurrency is accepted as a payment method by Phynite is subject to change at any time in Phynite’s sole discretion. You acknowledge that Phynite has no liability to you or to any third party for any claims or damages that may arise as a result of your payment not reaching us, including, but not limited to, instances where your purchase fails due to a processing error of your payment on the applicable blockchain or bridge extension. It is solely your responsibility to confirm that your payment for a Phynite CBNFT has been accepted. 6. If you have any issues with respect to your purchase of any Phynite CBNFT, please contact us. We will do our best to resolve any issues in accordance with our then-current policies and procedures. You are solely responsible for determining and paying (or reimbursing for the payment of) any and all sales, use, value-added and other taxes, duties, and assessments (excluding taxes imposed on our net income) now or hereafter claimed or imposed by any tax or other governmental authority associated with your use of our Website or transactions of any Phynite CBNFT (collectively, the “Taxes”). You will pay or reimburse us for all Taxes of any jurisdiction (whether national, federal, state, local, foreign or other), including value added taxes and other similar amounts as are now or hereafter may be imposed under the authority of any national, federal, state, local, foreign or other taxing jurisdiction; and will not be entitled to deduct the amount of any such Taxes or amounts levied in lieu thereof from payments (including, without limitation, Gas Fees) made pursuant to this Agreement. 7. When you purchase or otherwise acquire a Phynite CBNFT, you agree that you have read, understand, and agree to be bound by any terms and conditions applicable to the use and sale of that Phynite CBNFT, including payment of Phynite Fees (regardless of whether any Phynite Fee is enforced or supported by the third-party platform or marketplace that facilitates such sale). You further agree that you will bind any subsequent purchaser of the Phynite CBNFT to such terms and conditions. 8. By offering any Collectible or Phynite CBNFT on or through the Service, you hereby appoint Phynite as your limited payments agent for the sole purpose of receiving, holding and settling payments due and owed to you arising out of such Collectible or Phynite CBNFT. Phynite will process such payments and settle payments that are actually received by Phynite, less any amounts owed to Phynite, including taxes, fees and other obligations, and subject to the terms of this Agreement. You agree that a payment received by Phynite, on your behalf, satisfies the payor’s obligation to make payment to you, regardless of whether Phynite actually settles such payment to you. If Phynite does not settle any such payments as described in this Agreement to you, you will have recourse only against Phynite and not the payor, as payment is deemed made by the payor to you upon constructive or actual receipt of such payment by Phynite. 4. **Initial Seller Agreement** 1. When an Initial Seller makes a Collectible available for sale on the Service, they represent and warrant that (i) they are the owner of such Collectible; (ii) they have all rights in and to the Collectible necessary to make such Collectible available on the Service and to mint a Phynite CBNFT corresponding to such Collectible; (iii) that they will not offer the Collectible for sale on any other service or any marketplace for so long as the corresponding Phynite CBNFT is available for sale; and (iv) that the Collectible complies with Phynite’s then-current Collectible Listing Guidelines. 2. On or before the primary sale of a Phynite CBNFT, the Initial Seller agrees to deliver the corresponding Collectible to Phynite for storage. The Initial Seller is solely responsible for any loss of or damage to any Collectible prior to Phynite’s confirmed receipt of the same. Each Initial Seller shall be entitled to receive a percentage of the Net Revenue received by Phynite from the Collectible Services provided by Phynite with respect to Collectibles originally made available by such Initial Seller (the “Initial Seller Revenue Share”). “Net Revenue” means the total consideration received by Phynite as a Phynite Fee with respect to any such Collectible (“Revenue”), less any fees as may be mutually agreed upon by the parties in writing. 3. Each Initial Seller must provide Phynite with a Wallet address supported by the Service in order to receive any cryptocurrency Net Revenue payable to such Initial Seller. Phynite shall have no liability arising out of or relating to the Wallet address, payment processor information, or other banking or payment account information provided by you (e.g., any errors, circumstances, acts or omissions resulting in loss of funds). Phynite reserves the right, but has no obligation, to confirm that the provenance and condition of each Collectible received by Phynite from an Initial Seller are as described by such Initial Seller. In the event that Phynite reasonably determines that a Collectible does not conform with the Initial Seller description and/or the Collectible Listing Guidelines, Phynite shall return such Collectible to the Initial Seller at the Initial Seller’s expense. If a Buyer has purchased a Phynite CBNFT corresponding to any such Collectible, Phynite may cancel or refund such purchase in accordance with its then-current policies and procedures. For more information, please contact us at . 4. You acknowledge and agree that you, and not Phynite, are solely responsible for providing support to Buyers in connection with the sale of any Phynite CBNFTs corresponding to your Collectibles. While Phynite may in its sole discretion elect to provide technical support to its Users in connection with the sale of any Phynite CBNFTs, Phynite has no obligation to you to provide any such support. 5. In the event of a dispute between you and any third party related to Phynite CBNFTs or Collectibles made available by you, including without limitation any dispute between you and a Buyer, Seller, or payment services provider, Phynite will not be a party to any such dispute. YOU ARE SOLELY RESPONSIBLE FOR DISPUTE RESOLUTION IN CONNECTION WITH YOUR COLLECTIBLES AND YOUR PHYNITE CBNFTS. You shall have no recourse against Phynite in connection with any claims that arise from disputes between you and any third party arising from or related to your Collectibles or your Phynite CBNFTs. 6. Phynite reserves the right to remove any Initial Seller from the Service and to terminate such Initial Seller’s ability to offer Collectibles through the Service at any time, with or without notice, (i) upon Phynite’s reasonable belief that such Initial Seller has breached this Agreement; or (ii) in the event that Phynite terminates the applicable Service. 5. **Vault Services** 1. Phynite reserves the right to remove any Initial Seller from the Service and to terminate such Initial Seller’s ability to offer Collectibles through the Service at any time, with or without notice, (i) upon Phynite’s reasonable belief that such Initial Seller has breached this Agreement; or (ii) in the event that Phynite terminates the applicable Service. Our Vault Services include the receipt of Collectibles from Initial Sellers, the storage of Collectibles on behalf of the then-current owner of the corresponding Phynite CBNFT, the listing and relisting of Collectibles as Phynite CBNFTs, and the shipment of Collectibles to the then-current owner of the corresponding Phynite CBNFT upon redemption of such Phynite CBNFT. 2. Phynite represents that all Collectibles are and will remain in the constructive possession of Phynite following the receipt of such Collectibles from the applicable Initial Seller of such Collectibles, until and unless such Collectibles are transferred to the then-current owner of the associated Phynite CBNFT. Phynite uses good faith efforts to maintain the integrity of each Collectible subject to Vault Services, including through partnerships with best-in-class providers of Collectible storage and shipping services. Phynite shall maintain an insurance policy covering such Collectibles sufficient to cover the fair market value of each such Collectible at the time of receipt by Phynite. Notwithstanding the foregoing, Phynite shall not be liable to you for any loss, damage, or destruction of any Collectible subject to the Vault Services except to the extent arising from Phynite’s gross negligence or willful misconduct. 3. When you sell any Phynite CBNFT, you represent and warrant to and for the benefit of both Phynite and the applicable Buyer that you have no outstanding liabilities with respect to any Vault Services, and you acknowledge and agree that you shall assign to the Buyer, and the Buyer shall assume by way of novation, your agreement with Phynite for such Vault Services (the “Assumed Contract”). For the avoidance of doubt, the Assumed Contract excludes the Initial Seller Revenue Share, which shall remain at all times a contract between the Initial Seller and Phynite. Phynite shall, upon the sale of any Phynite CBNFT in accordance with this Agreement and the receipt of the Phynite Fee in connection with such transaction, release the Seller from the Assumed Contract. 4. When you purchase any Phynite CBNFT, you acknowledge and agree that (i) the Seller from which you purchased such Phynite CBNFT is released from the Assumed Contract; (ii) by way of novation, you assume such Seller’s rights and are bound by and shall perform such Seller’s obligations and liabilities under the Assumed Contract; and (iii) you are entering into a binding legal agreement with Phynite for the Vault Services with respect to such Collectible. You may terminate the Assumed Contract at any time by selling the corresponding Phynite CBNFT and assigning the Assumed Contract by way of novation to the Buyer of such Phynite CBNFT; or redeeming your Phynite CBNFT for the underlying Collectible. 5. Following your purchase of a Phynite CBNFT, you may request to receive the Collectible associated with your Phynite CBNFT through the Website or otherwise through the Service. As a precondition of any transfer of the associated Collectible, Phynite shall verify (i) your identity, (ii) your compliance with this Agreement and eligibility to use the Service; and (iii) your ownership of such Phynite CBNFT. If Phynite transfers such Collectible to you, the associated Phynite CBNFT shall be burned by Phynite. 6. Your redemption of a Phynite CBNFT for a Collectible may be subject to additional fees for such redemption, including without limitation Taxes and shipping and handling fees, in each case as determined in Phynite’s sole discretion, as set forth on the Service, and as may be subject to change from time to time in Phynite’s sole discretion. 6. **User Agreements, Representations and Warranties** 1. You must be eighteen (18) years old or otherwise capable of forming a binding contract in your jurisdiction to use the Service. By using the Service, you agree (i) to provide accurate, current, and complete information about yourself as requested, (ii) to maintain and promptly update such information from time to time as necessary, (iii) to maintain the security of your Wallet and accept all risks of unauthorized access to your Wallet and to the information you provide to us, and (iv) to notify us immediately if you discover or otherwise suspect any security breaches related to the Service or your Wallet. 2. You will not buy, sell, rent, or lease access to the Service without our written permission or access or attempt to access the Service through unauthorized third-party applications or clients. 3. Phynite may require you to provide additional information and documents from time to time, including without limitation at the request of any competent governmental authority or in order to help Phynite comply with applicable law, regulation, or policy, including laws related to anti-laundering (legalization) of incomes obtained by criminal means, or for counteracting financing of terrorism. Phynite believes in comprehensive customer identification, customer due diligence, and enhanced due diligence (if applicable). Phynite places importance on Knowing our Customers and require customers to provide ample information to verify their identity. Phynite may also require you to provide additional information and documents in cases where it has reason to believe that: (i) your Wallet or other means of access to the Service is being used for money laundering or for any other illegal activity; (ii) You have concealed or reported false identification information and other details; or (iii) transactions effected via your Wallet may have been done in breach of this Agreement. In such cases, Phynite, in its sole discretion, may pause or cancel your transactions until such requested additional information and documents have been reviewed and deemed satisfactory by Phynite. If you do not provide complete and accurate information and documents in response to such a request, Phynite may refuse to provide any Phynite CBNFT, Content (as defined below), product, service and/or further access to the Service to you. 4. When you use the Service, you hereby represent and warrant, to and for the benefit of Phynite, its affiliates and its and their respective representatives, as follows: 1. Authority. You have all requisite capacity, power and authority to enter into, and perform your obligations under this Agreement, including to mint, sell, or buy any Phynite CBNFTs, as applicable. 2. Valid Execution. This Agreement constitutes your legal, valid and binding obligation, enforceable against you in accordance with this Agreement. 3. Accuracy of Information. All information provided to Phynite and/or its third-party designees by you, including your address and social security number or tax ID number, is accurate and complete. 4. Sanctions. You are not, and you will not authorize, enable, or permit any use of the Service by any person that is: (1) in, under the control of, or a national or resident of any jurisdiction subject to a U.S. trade embargo; or (2) identified on any export- or sanctions-related restricted party list, including but not limited to the U.S. Department of the Treasury’s Specially Designated Nationals and Blocked Persons List or the U.S. Department of Commerce’s Denied Persons List, Unverified List, or Entity List. 5. Non-Contravention. This Agreement does not, and the performance of your obligations under this Agreement and your minting, listing, buying, or selling of any Phynite CBNFTs, as applicable to your use of the Service, will not: (i) if you are an entity, conflict with or violate any of the charter documents of such entity or any resolution adopted by its equity holders or other persons having governance authority over the entity; (ii) contravene, conflict with or violate any right of any third party or any applicable legal requirement to which you or any of the Collectibles owned or used by you, is subject; or (iii) result in any breach of or constitute a default (or an event that with notice or lapse of time or both would become a default) under any material contract or agreement to which you are a party, permit held by you or legal requirement applicable to you. 6. Independent Investigation and Non-Reliance. You are sophisticated, experienced and knowledgeable in the minting or buying of non-fungible tokens and other cryptoassets. Additionally, you have conducted an independent investigation of the Service and the matters contemplated by this Agreement, have formed your own independent judgment regarding the benefits and risks of and necessary and desirable practices regarding the foregoing, and, in making the determination to mint, list, buy, or sell any Phynite CBNFTs using or in connection with your use of the Service, you have relied solely on the results of such investigation and such independent judgement. Without limiting the generality of the foregoing, you understand, acknowledge and agree that the legal requirements pertaining to blockchain technologies and digital assets generally, including the Phynite CBNFTs, are uncertain, and you have conducted an independent investigation of such potentially applicable legal requirements and the resulting risks and uncertainties, including the risk that one or more governmental entities or other persons may assert that any digital assets or cryptographic tokens (including the Phynite CBNFTs) may constitute securities under applicable legal requirements. You hereby irrevocably disclaim and disavow reliance upon any statements or representations made by or on behalf of, or information made available by Phynite in determining to enter into this Agreement, mint, list, buy, or sell any Phynite CBNFTs, or otherwise use the Service. 7. Litigation. There is no legal proceeding pending that relates to your activities relating to the minting of Phynite CBNFTs or other CBNFT- or digital asset- trading or blockchain technology related activities. 8. Compliance. You have not failed to comply with, and have not violated, any applicable legal requirement relating to any blockchain technologies. No investigation or review by any governmental entity is pending or, to your knowledge, has been threatened against or with respect to you, nor does any government order or action prohibit you or any of your representatives from engaging in or continuing any conduct, activity or practice relating to the Service. You must provide all equipment, including without limitation hardware and software, necessary to connect to the Service. You are solely responsible for any fees, including Internet connection or mobile fees, that you incur when accessing the Service. 7. **Consent to Electronic Communication** 1. By contacting Phynite via email, or by using the Service, you consent to receive electronic communications from Phynite (e.g., via email or by posting notices to the Service). These communications may include notices about your use of the Service (e.g., transactional information) and are part of your relationship with us. You agree that any notices, agreements, disclosures or other communications that we send to you electronically will satisfy any legal communication requirements, including, but not limited to, that such communications be in writing. You should maintain copies of electronic communications from us by printing a paper copy or saving an electronic copy. We have no obligation to store for your later use or access any such electronic communications that we make to you. 8. **Ownership** 1. Unless otherwise indicated in writing by us, the Service and all content and other materials contained therein, including, without limitation, the Phynite logo and all designs, text, graphics, pictures, information, data, software, sound files, other files and the selection and arrangement thereof (collectively, “Content”) are the proprietary property of Phynite. 2. The Phynite logo and any Phynite product or service names, logos or slogans that may appear on the Service are trademarks of Phynite or our affiliates and may not be copied, imitated or used, in whole or in part, without our prior written permission. You may not use any metatags or other “hidden text” utilizing “Phynite,” or any other name, trademark or product or service name of Phynite or our affiliates without our prior written permission. In addition, the look and feel of the Service and Content, including, without limitation, all page headers, custom graphics, button icons and scripts, constitute the service mark, trademark or trade dress of Phynite and may not be copied, imitated or used, in whole or in part, without our prior written permission. All other trademarks, registered trademarks, product names and other names or logos mentioned on the Service are the property of their respective owners and may not be copied, imitated or used, in whole or in part, without the permission of the applicable trademark holder. Reference to any products, Service, processes or other information by name, trademark, manufacturer, supplier or otherwise does not constitute or imply endorsement, sponsorship or recommendation by Phynite. 3. You agree that any submission of any ideas, suggestions, documents, and/or proposals to Phynite (collectively, “Feedback”) is at your own risk and that Phynite has no obligations (including without limitation obligations of confidentiality) with respect to such Feedback. You represent and warrant that you have all rights necessary to submit the Feedback. You hereby grant to Phynite a fully paid, royalty-free, perpetual, irrevocable, worldwide, non-exclusive, and fully sublicensable right and license to use, reproduce, perform, display, distribute, adapt, modify, re-format, create derivative works of, and otherwise commercially or non-commercially exploit in any manner, any and all Feedback, and to sublicense the foregoing rights, in connection with the operation and maintenance of the Service and Phynite’s other products and Service. 9. **License to Our Service and Content** 1. You are hereby granted a limited, revocable, non-exclusive, non-transferable, non-assignable, non-sublicensable, “as-is” license to access and use the Service and Content for your own personal, non-commercial use; provided, however, that such license is subject to this Agreement and does not include any right to (i) sell, resell, or use commercially the Service or Content; (ii) distribute, publicly perform, or publicly display any Content except as expressly permitted by us; (iii) modify or otherwise make any derivative uses of the Service or Content, or any portion thereof, except as expressly permitted by us; (iv) use any data mining, robots, or similar data gathering or extraction methods; (v) download (other than page caching) any portion of the Service or Content, except as expressly permitted by us; and (vi) use the Service or Content other than for their intended purposes. This license is subject to your compliance with the Acceptable Use Policy set forth in Section 12 below. 2. You may not use a logo or other proprietary graphic of Phynite to link to the Service or Content without our express written permission. Further, you may not use, frame or utilize framing techniques to enclose any Phynite trademark, logo or other proprietary information, including the images found on the Service, the content of any text or the layout or design of any page, or form contained on a page, on the Service without our express written consent. 3. Phynite may from time-to-time change or discontinue any or all aspects or features of the Service, including by (i) altering the smart contracts which are included in the applicable blockchain pursuant to upgrades, forks, security incident responses or chain migrations, (ii) deactivating or deleting Content that Phynite in its sole discretion determines has been abandoned; or (iii) repossessing any Phynite CBNFTs that Phynite in its sole discretion determines have been abandoned or used or acquired in violation of this Agreement. In such events, you may no longer be able to access, interact with or read the data from the Service. 10. **User Content** 1. Certain Content may be made available by a User on or through the Service, including without limitation in connection with the listing of a Phynite CBNFT by an Initial Seller and through Phynite’s third-party social media accounts or pages (“User Content”). If you choose to make User Content available on or through the Service, you hereby grant Phynite a fully paid, royalty-free, worldwide, non-exclusive right (including any moral rights) and license to use, sublicense, distribute, reproduce, modify, adapt, and display, such User Content (in whole or in part) for the purposes of (i) providing the Service, including making User Content available to other Users in accordance with your elections on the Service, (ii) improving the Service, and (iii) advertising and promoting Phynite and its products and Service. You also hereby grant each other User of the Service a non-exclusive license to access your User Content through the Service, and to use, reproduce, distribute, display and perform such User Content solely as permitted through the functionality of the Service and under this Agreement. You are solely responsible for any User Content you provide. You represent and warrant that you have obtained, all rights, licenses, consents, permissions, power and/or authority necessary to grant the rights granted herein for any User Content that you submit, post or display on or through the Service. You agree that such User Content will not contain material subject to copyright or other proprietary rights, unless you have necessary permission or are otherwise legally entitled to post the material and to grant the licenses described above. We take no responsibility for the User Content posted or listed via the Service, although we reserve the right to remove any User Content that is in violation of this Agreement. 11. **Third-Party Service; Third-Party Terms** 1. The Service may contain links to third-party properties, Service and applications (collectively, “Third-Party Service”). When you click on a link to a Third-Party Service, such as a bridge extension, you are subject to the terms and conditions (including privacy policies) of another property or application. Such Third-Party Service are not under the control of Phynite. Phynite is not responsible for any Third-Party Service. Phynite provides links to these Third-Party Service only as a convenience and does not review, approve, monitor, endorse, warrant, or make any representations with respect to Third-Party Service, or their products or services. You use all links in Third-Party Service at your own risk. When you leave our Service, our terms and policies no longer govern. You should review all applicable agreements and policies, including privacy and data gathering practices, of any Third-Party Service, and should make whatever investigation you feel necessary or appropriate before proceeding with any transaction with any third party. 12. **Acceptable Use Policy** 1. You agree that you are solely responsible for your conduct in connection with the Service. You agree that you will abide by this Agreement and will not (and will not attempt to): 1. Provide false or misleading information to Phynite; 2. Use or attempt to use another User’s linked Wallet without authorization from such User and Phynite; 3. Create, list, or otherwise make available through or in connection with the Service any counterfeit Phynite CBNFTs; 4. Pretend to be another person or entity; 5. Use the Service in any manner that could interfere with, disrupt, negatively affect or inhibit other Users from fully enjoying the Service, or that could damage, disable, overburden or impair the functioning of the Service in any manner; 6. Develop, utilize, or disseminate any software, or interact with any API in any manner, that could damage, harm, or impair the Service; 7. Reverse engineer any aspect of the Service, or do anything that might discover source code or bypass or circumvent measures employed to prevent or limit access to any service, area, or code of the Service; 8. Attempt to circumvent any content-filtering techniques we employ, or attempt to access any feature or area of the Service that you are not authorized to access; 9. Use any robot, spider, crawler, scraper, script, browser extension, offline reader, or other automated means or interface not authorized by us to access the Service, extract data or otherwise interfere with or modify the rendering of Service pages or functionality; 10. Collect or harvest data from our Service that would allow you to contact individuals, companies, or other persons or entities, or use any such data to contact such entities; 11. Use data collected from our Service for any direct marketing activity (including without limitation, email marketing, SMS marketing, telemarketing, and direct marketing); 12. Bypass or ignore instructions that control all automated access to the Service; 13. Use the Service for any illegal or unauthorized purpose, or engage in, encourage, or promote any activity that violates any applicable law or this Agreement; 14. Use the applicable blockchain to carry out any illegal activities in connection with or in any way related to your access to and use of the Service, including but not limited to money laundering, terrorist financing or deliberately engaging in activities designed to adversely affect the performance of such blockchain, or the Service; 15. Engage in or knowingly facilitate any “front-running,” “wash trading,” “pump and dump trading,” “ramping,” “cornering” or fraudulent, deceptive or manipulative trading activities, including: 1. trading a Phynite CBNFT at successively lower or higher prices for the purpose of creating or inducing a false, misleading or artificial appearance of activity in such Phynite CBNFT, unduly or improperly influencing the market price for such Phynite CBNFT trading on the Service or establishing a price which does not reflect the true state of the market in such Phynite CBNFT; 2. for the purpose of creating or inducing a false or misleading appearance of activity in a Phynite CBNFT or creating or inducing a false or misleading appearance with respect to the market in a Phynite CBNFT: (A) executing or causing the execution of any transaction in a Phynite CBNFT which involves no material change in the beneficial ownership thereof; or (B) entering any order for the purchase or sale of a Phynite CBNFT with the knowledge that an order of substantially the same size, and at substantially the same price, for the sale of such Phynite CBNFT, has been or will be entered by or for the same or different parties; or 3. participating in, facilitating, assisting or knowingly transacting with any pool, syndicate or joint account organized for the purpose of unfairly or deceptively influencing the market price of a Phynite CBNFT; 16. Use the Service to carry out any financial activities subject to registration or licensing, including but not limited to using the Service to transact in securities, debt financings, equity financings or other similar transactions; 17. Use the Service to participate in fundraising for a business, protocol, or platform, including but not limited to creating, listing, or buying Collectibles that (i) are redeemable for financial instruments, (ii) give owners rights to participate in an ICO or any securities offering, or (iii) entitle owners to financial rewards, including but not limited to, DeFi yield bonuses, staking bonuses, and burn discounts; or 18. Copy or use this website for research or training purposes for artificial intelligence such as ChatGPT or other similar technologies. 13. **Copyright** 1. Phynite retains the absolute right to terminate access to the Service and remove any User’s Content that violates or infringes our rights or the rights of any third party. Without limiting the foregoing, if you believe that your intellectual property has been used on the Service in a way that constitutes infringement, please provide our Copyright Agent with the following information: 1. an electronic or physical signature of the person authorized to act on behalf of the owner of the copyright interest; 2. a description of the copyrighted work that you claim has been infringed; 3. a description of the location on the Service of the material that you claim is infringing; 4. your address, telephone number and e-mail address; 5. a written statement by you that you have a good faith belief that the disputed use is not authorized by the copyright owner, its agent or the law; and 6. a statement by you, made under penalty of perjury, that the above information in your notice is accurate and that you are the copyright owner or authorized to act on the copyright owner’s behalf. 2. Contact information for Phynite’s Copyright Agent for notice of claims of copyright infringement is as follows: . 14. **Investigations** 1. If Phynite becomes aware of any possible violations by you of this Agreement, Phynite reserves the right to investigate such violations. If, as a result of the investigation, Phynite believes that criminal activity may have occurred, Phynite reserves the right to refer the matter to, and to cooperate with, any and all applicable legal authorities. Phynite is entitled, except to the extent prohibited by applicable law, to disclose any information or materials on or in the Service, including your Content, in Phynite’s possession in connection with your use of the Service, (i) to comply with applicable laws, legal process or governmental request; (ii) to enforce this Agreement, (iii) to respond to any claims that User Content violates the rights of third parties, (iv) to respond to your requests for customer service, or (v) to protect the rights, property or personal safety of Phynite, its Users, or the public, and all law enforcement or other government officials, as Phynite in its sole discretion believes to be necessary or appropriate. Your agreement to these Terms of Service provides your irrevocable consent to the foregoing. Also, you acknowledge and agree that you have no expectation of privacy concerning your use of the Service, including without limitation text, voice, or video communications. 15. **Release** 1. You hereby release and forever discharge Phynite and our officers, employees, agents, successors, and assigns (the “Phynite Entities”) from, and hereby waive and relinquish, each and every past, present and future dispute, claim, controversy, demand, right, obligation, liability, action and cause of action of every kind and nature (including personal injuries, death, and property damage), that has arisen or arises directly or indirectly out of, or that relates directly or indirectly to, the Service (including any interactions with, or act or omission of, other Users of the Service or any Third-Party Service). YOU HEREBY WAIVE CALIFORNIA CIVIL CODE SECTION 1542, OR ANY SIMILAR LAW OR RULE OF ANY OTHER JURISDICTION, WHICH STATES IN SUBSTANCE: “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.” 16. **Assumption of Risk Related To Phynite CBNFTs** 1. You acknowledge and agree that: 1. You are solely responsible for determining what, if any, taxes apply to your transactions involving Phynite CBNFTs. Neither Phynite nor any other Phynite Entity is responsible for determining the taxes that may apply to transactions involving Phynite CBNFTs; 2. Phynite CBNFTs exist and can be transferred only by virtue of the ownership record maintained on the blockchain supporting such Phynite CBNFTs; 3. There are risks associated with using digital currency and digital assets, including but not limited to, the risk of hardware, software and Internet connections, the risk of malicious software introduction, and the risk that third parties may obtain unauthorized access to your information; 4. The legal and regulatory regime governing blockchain technologies, cryptocurrencies, and CBNFTs is evolving, and new regulations or policies may materially adversely affect the same; 5. There are risks associated with purchasing user-generated content, including but not limited to, the risk of purchasing counterfeit assets, mislabeled assets, assets that are vulnerable to metadata decay, assets on smart contracts with bugs, and assets that may become untransferable; 6. Phynite reserves the right to hide collections, contracts, and Collectibles that Phynite suspects or believes may violate this Agreement. Phynite CBNFTs you purchase may become inaccessible on the Service. Under no circumstances shall the inability to access or view your Collectibles on the Service serve as grounds for a claim against Phynite; and 7. Phynite has no responsibility for any Phynite CBNFTs after the initial offering or sale of such Phynite CBNFTs. Phynite does not investigate and cannot guarantee or warrant the authenticity, originality, uniqueness, marketability, legality or value of any Phynite CBNFT. 17. **Indemnification** 1. To the fullest extent permitted by applicable law, you agree to indemnify, defend, and hold harmless Phynite from and against all actual or alleged third party claims, damages, awards, judgments, losses, liabilities, obligations, penalties, interest, fees, expenses (including, without limitation, attorneys’ fees and expenses) and costs (including, without limitation, court costs, costs of settlement, and costs of or associated with pursuing indemnification and insurance), of every kind and nature whatsoever arising out of or related to this Agreement or your use of the Service, whether known or unknown, foreseen or unforeseen, matured or unmatured, or suspected or unsuspected, in law or equity, whether in tort, contract or otherwise (collectively, “Claims”), including, but not limited to, damages to property or personal injury, that are caused by, arise out of or are related to (a) your use or misuse of the Service, Content or Phynite CBNFTs, including, without limitation, any act or omission involving any third party in connection with the minting, listing, buying, selling, or trading of any Phynite CBNFTs hereunder; (b) any Feedback you provide; (c) your violation of this Agreement; (d) your violation of the rights of any third party, including another User; (e) any breach or non-performance of any covenant or agreement made by you; (f) your Content or the minting, listing, buying, selling, or trading of any Phynite CBNFTs; or (g) any Collectibles (including the furnishing, or any failure to furnish, or any acts or omissions of or attributable to you or any third party in respect of the same). You agree to promptly notify Phynite of any third-party Claims and cooperate with the Phynite Entities in defending such Claims. You further agree that Phynite shall have control of the defense or settlement of any third-party Claims. THIS INDEMNITY IS IN ADDITION TO, AND NOT IN LIEU OF, ANY OTHER INDEMNITIES SET FORTH IN ANY OTHER SEPARATE WRITTEN AGREEMENTS BETWEEN YOU AND PHYNITE. 18. **Disclaimers** 1. THE SERVICE, CONTENT CONTAINED THEREIN, AND PHYNITE CBNFTS LISTED THEREIN ARE PROVIDED ON AN “AS IS” AND “AS AVAILABLE” BASIS WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, EITHER EXPRESS OR IMPLIED. PHYNITE (AND ITS SUPPLIERS) MAKE NO WARRANTY THAT THE SERVICE: (A) WILL MEET YOUR REQUIREMENTS; (B) WILL BE AVAILABLE ON AN UNINTERRUPTED, TIMELY, SECURE, OR ERROR-FREE BASIS; OR (C) WILL BE ACCURATE, RELIABLE, COMPLETE, LEGAL, OR SAFE. PHYNITE DISCLAIMS ALL OTHER WARRANTIES OR CONDITIONS, EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, IMPLIED WARRANTIES OR CONDITIONS OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, AND NON-INFRINGEMENT AS TO THE SERVICE OR ANY CONTENT CONTAINED THEREIN. PHYNITE DOES NOT REPRESENT OR WARRANT THAT CONTENT ON THE SERVICE IS ACCURATE, COMPLETE, RELIABLE, CURRENT, OR ERROR-FREE. WE WILL NOT BE LIABLE FOR ANY LOSS OF ANY KIND FROM ANY ACTION TAKEN OR TAKEN IN RELIANCE ON MATERIAL OR INFORMATION, CONTAINED ON THE SERVICE. WHILE PHYNITE ATTEMPTS TO MAKE YOUR ACCESS TO AND USE OF THE SERVICE AND CONTENT SAFE, PHYNITE CANNOT AND DOES NOT REPRESENT OR WARRANT THAT THE SERVICE, CONTENT, OR ANY PHYNITE CBNFTS LISTED ON OUR SERVICE OR OUR SERVERS ARE FREE OF VIRUSES OR OTHER HARMFUL COMPONENTS. WE CANNOT GUARANTEE THE SECURITY OF ANY DATA THAT YOU DISCLOSE ONLINE. YOU ACCEPT THE INHERENT SECURITY RISKS OF PROVIDING INFORMATION AND DEALING ONLINE OVER THE INTERNET AND WILL NOT HOLD US RESPONSIBLE FOR ANY BREACH OF SECURITY UNLESS IT IS DUE TO OUR GROSS NEGLIGENCE. 2. WE WILL NOT BE RESPONSIBLE OR LIABLE TO YOU FOR ANY LOSSES YOU SUSTAIN AS A RESULT OF YOUR USE OF THE SERVICE, INCLUDING IN CONNECTION WITH ANY RECOMMENDATION. WE TAKE NO RESPONSIBILITY FOR, AND WILL NOT BE LIABLE TO YOU FOR, ANY PURCHASE OR USE OF PHYNITE CBNFTS, INCLUDING BUT NOT LIMITED TO ANY LOSSES, DAMAGES OR CLAIMS ARISING FROM: (I) USER ERROR SUCH AS FORGOTTEN PASSWORDS, INCORRECTLY CONSTRUCTED TRANSACTIONS, OR MISTYPED ADDRESSES; (II) SERVER FAILURE OR DATA LOSS; (III) CORRUPTED DIGITAL WALLET FILES; (IV) UNAUTHORIZED ACCESS TO APPLICATIONS; OR (V) ANY UNAUTHORIZED THIRD PARTY ACTIVITIES, INCLUDING WITHOUT LIMITATION THE USE OF VIRUSES, PHISHING, BRUTE-FORCE ATTACKS OR OTHER MEANS OF ATTACK AGAINST THE SERVICE, PHYNITE CBNFTS OR DIGITAL WALLETS. 3. PHYNITE CBNFTS ARE INTANGIBLE DIGITAL ASSETS. THEY EXIST ONLY BY VIRTUE OF THE OWNERSHIP RECORD MAINTAINED IN THE BLOCKCHAIN NETWORK. ANY TRANSFER OF TITLE THAT MIGHT OCCUR IN ANY UNIQUE DIGITAL ASSET OCCURS ON THE LEDGER WITHIN THE BLOCKCHAIN PLATFORM. WE DO NOT GUARANTEE THAT PHYNITE OR ANY PHYNITE ENTITY CAN AFFECT THE TRANSFER OF TITLE OR RIGHT IN ANY PHYNITE CBNFTS. WE CANNOT AND DO NOT GUARANTEE THAT ANY PHYNITE CBNFT WILL HAVE OR RETAIN ANY INHERENT VALUE, OR THAT YOU WILL BE ABLE TO SELL OR RESELL ANY PHYNITE CBNFT PURCHASED THROUGH THE SERVICE. 4. Phynite is not responsible for any losses or harms sustained by you due to vulnerability or any kind of failure, abnormal behavior of software (e.g., smart contract), blockchains, or any other features of or inherent to the Phynite CBNFTs. Phynite is not responsible for any delay or failure to report any issues with any blockchain supporting Phynite CBNFTs, including without limitation forks, technical node issues, or any other issues that result in losses of any sort. 5. YOU ACKNOWLEDGE AND AGREE THAT PHYNITE IS NOT LIABLE, AND YOU AGREE NOT TO SEEK TO HOLD PHYNITE LIABLE, FOR THE CONDUCT OF THIRD PARTIES, INCLUDING ANY SELLERS OF COLLECTIBLES OR PHYNITE CBNFTS OR ANY THIRD-PARTY OFFERORS OF PHYNITE CBNFTS OR OFFEROR CBNFTS, AND THAT THE RISK OF INJURY FROM SUCH THIRD PARTIES RESTS ENTIRELY WITH YOU. YOU ARE SOLELY RESPONSIBLE FOR ALL OF YOUR COMMUNICATIONS AND INTERACTIONS WITH OTHER USERS OF THE SERVICE. YOU UNDERSTAND THAT PHYNITE DOES NOT MAKE ANY ATTEMPT TO VERIFY ALL OF THE STATEMENTS OF USERS OF THE SERVICE OR THIRD-PARTY SELLERS OF PHYNITE CBNFTS. PHYNITE MAKES NO WARRANTY THAT ANY GOODS OR SERVICE PROVIDED BY THIRD PARTIES WILL MEET YOUR REQUIREMENTS OR BE AVAILABLE ON AN UNINTERRUPTED, SECURE, OR ERROR-FREE BASIS. 6. EXCEPT WHERE PHYNITE IS THE BUYER OR SELLER, PHYNITE IS NOT INVOLVED IN THE ACTUAL TRANSACTION BETWEEN BUYERS AND SELLERS. WHILE WE MAY HELP FACILITATE THE RESOLUTION OF DISPUTES THROUGH VARIOUS PROGRAMS, WE HAVE NO CONTROL OVER AND DO NOT GUARANTEE THE QUALITY, SAFETY OR LEGALITY OF COLLECTIBLES ADVERTISED, THE TRUTH OR ACCURACY OF USER CONTENT OR LISTINGS, THE ABILITY OF SELLERS TO SELL COLLECTIBLES, THE ABILITY OF BUYERS TO PAY FOR COLLECTIBLES, OR THAT BUYER OR SELLER WILL ACTUALLY COMPLETE A TRANSACTION. 7. We do not transfer legal ownership of Collectibles from the Seller to the Buyer. California Commercial Code § 2401(2) and Uniform Commercial Code § 2-401(2) apply to the transfer of ownership between the Buyer and the Seller, unless the Buyer and the Seller agree otherwise. Further, we cannot guarantee continuous or secure access to the Service and operation of the Service may be interfered with by numerous factors outside of our control. Accordingly, to the extent legally permitted, we exclude all implied warranties, terms and conditions. 8. Nothing in this Agreement shall exclude or limit liability of either party for fraud, death or bodily injury caused by negligence, violation of laws, or any other activity that cannot be limited or excluded under the laws applicable to your jurisdiction. SOME JURISDICTIONS DO NOT ALLOW THE EXCLUSION OF IMPLIED WARRANTIES IN CONTRACTS WITH CONSUMERS, SO THE ABOVE EXCLUSION MAY NOT APPLY TO YOU. 19. **Limitation of Liability** 1. TO THE FULLEST EXTENT PERMITTED BY LAW, IN NO EVENT WILL PHYNITE BE LIABLE TO YOU OR ANY THIRD PARTY FOR ANY LOST PROFIT OR ANY INDIRECT, CONSEQUENTIAL, EXEMPLARY, INCIDENTAL, SPECIAL OR PUNITIVE DAMAGES ARISING FROM THIS AGREEMENT, THE SERVICE, ANY PHYNITE CBNFTS, OR FOR ANY DAMAGES RELATED TO LOSS OF REVENUE, LOSS OF PROFITS, LOSS OF BUSINESS OR ANTICIPATED SAVINGS, LOSS OF USE, LOSS OF GOODWILL, OR LOSS OF DATA, AND WHETHER CAUSED BY TORT (INCLUDING NEGLIGENCE), BREACH OF CONTRACT, OR OTHERWISE, EVEN IF FORESEEABLE AND EVEN IF PHYNITE HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. ACCESS TO, AND USE OF, THE SERVICE IS UNDERTAKEN BY YOU AT YOUR OWN DISCRETION AND RISK, AND YOU WILL BE SOLELY RESPONSIBLE FOR ANY DAMAGE TO YOUR COMPUTER SYSTEM OR MOBILE DEVICE OR LOSS OF DATA RESULTING THEREFROM. 2. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED HEREIN, IN NO EVENT SHALL THE MAXIMUM AGGREGATE LIABILITY OF PHYNITE ARISING OUT OF OR IN ANY WAY RELATED TO THIS AGREEMENT, YOUR ACCESS TO AND USE OF THE SERVICE, CONTENT (INCLUDING YOUR CONTENT), THE VAULT SERVICES, OR ANY PHYNITE CBNFTS MINTED, PURCHASED, OR SOLD THROUGH THE SERVICE EXCEED THE GREATER OF (A) $100 OR (B) THE AMOUNT RETAINED BY PHYNITE IN THE TRANSACTION OR INCIDENT THAT IS THE SUBJECT OF THE CLAIM. 3. Some jurisdictions do not allow the exclusion or limitation of incidental or consequential damages, so the above limitation or exclusion may not apply to you. 20. **Dispute Resolution** 1. Please read carefully the following arbitration agreement (“Arbitration Agreement”). It requires you to arbitrate disputes with Phynite and limits the manner in which you can seek relief from us. 1. Applicability of Arbitration Agreement. You agree that any dispute, claim, or request for relief relating in any way to your access or use of the Service, to any products sold or distributed through the Service, or to any aspect of your relationship with Phynite, will be resolved by binding arbitration, rather than in court, except that (a) you may assert claims or seek relief in small claims court if your claims qualify; and (b) you or Phynite may seek equitable relief in court for infringement or other misuse of intellectual property rights (such as trademarks, trade dress, domain names, trade secrets, copyrights, and patents). This Arbitration Agreement shall apply, without limitation, to all disputes or claims and requests for relief that arose or were asserted before the effective date of this Agreement or any prior version of this Agreement. 2. Arbitration Rules and Forum. To begin an arbitration proceeding, you must send a letter requesting arbitration and describing your dispute or claim or request for relief to us at . 3. The Arbitration will be conducted by the California Lawyers for the Arts, Arts Arbitration and Mediation Services. The arbitrator shall be selected in accordance with the rules of Arts Arbitration and Mediation Services. If such services are not available, the dispute shall be submitted to the American Arbitration Association in accordance with the laws of the State of California. Arbitration shall occur in California. Any judgment on the award rendered by the arbitrator may be entered in any court of competent jurisdiction. 4. Authority of Arbitrator. The arbitrator shall have exclusive authority to (a) determine the scope and enforceability of this Arbitration Agreement and (b) resolve any dispute related to the interpretation, applicability, enforceability or formation of this Arbitration Agreement including, but not limited to, any assertion that all or any part of this Arbitration Agreement is void or voidable. The arbitrator will decide the rights and liabilities, if any, of you and us. The arbitration proceeding will not be consolidated with any other matters or joined with any other cases or parties. The arbitrator shall have the authority to grant motions dispositive of all or part of any claim. The arbitrator shall have the authority to award monetary damages and to grant any non-monetary remedy or relief available to an individual under applicable law, the arbitral forum’s rules, and this Agreement (including the Arbitration Agreement). The arbitrator shall issue a written award and statement of decision describing the essential findings and conclusions on which the award is based, including the calculation of any damages awarded. The arbitrator has the same authority to award relief on an individual basis that a judge in a court of law would have. The award of the arbitrator is final and binding upon you and us. 5. Waiver of Jury Trial. YOU AND PHYNITE HEREBY WAIVE ANY CONSTITUTIONAL AND STATUTORY RIGHTS TO SUE IN COURT AND HAVE A TRIAL IN FRONT OF A JUDGE OR A JURY. You and we are instead electing that all disputes, claims, or requests for relief shall be resolved by arbitration under this Arbitration Agreement, except as specified in Section 20(a) (Applicability of Arbitration Agreement) above. An arbitrator can award on an individual basis the same damages and relief as a court and must follow this Agreement as a court would. However, there is no judge or jury in arbitration, and court review of an arbitration award is subject to very limited review. 6. Waiver of Class or Other Non-Individualized Relief. ALL DISPUTES, CLAIMS, AND REQUESTS FOR RELIEF WITHIN THE SCOPE OF THIS ARBITRATION AGREEMENT MUST BE ARBITRATED ON AN INDIVIDUAL BASIS AND NOT ON A CLASS OR COLLECTIVE BASIS, ONLY INDIVIDUAL RELIEF IS AVAILABLE, AND CLAIMS OF MORE THAN ONE CUSTOMER OR USER CANNOT BE ARBITRATED OR CONSOLIDATED WITH THOSE OF ANY OTHER CUSTOMER OR USER. If a decision is issued stating that applicable law precludes enforcement of any of this section’s limitations as to a given dispute, claim, or request for relief, then such aspect must be severed from the arbitration and brought into the State or Federal Courts located in San Francisco, California. All other disputes, claims, or requests for relief shall be arbitrated. 7. 30-Day Right to Opt Out. You have the right to opt out of the provisions of this Arbitration Agreement by sending written notice of your decision to opt out to within thirty (30) days after first becoming subject to this Arbitration Agreement. Your notice must include your name and address, your username (if any), the Wallet address used to connect to the Service (if you have one), and an unequivocal statement that you want to opt out of this Arbitration Agreement. If you opt out of this Arbitration Agreement, all other parts of this Agreement will continue to apply to you. Opting out of this Arbitration Agreement has no effect on any other arbitration agreements that you may currently have, or may enter in the future, with us. 8. Severability. Except as provided in Section 20(e) (Waiver of Class or Other Non-Individualized Relief), if any part or parts of this Arbitration Agreement are found under the law to be invalid or unenforceable, then such specific part or parts shall be of no force and effect and shall be severed and the remainder of the Arbitration Agreement shall continue in full force and effect. Survival of Agreement. This Arbitration Agreement will survive the termination of your relationship with us. 9. Modification. Notwithstanding any provision in this Agreement to the contrary, we agree that if we make any future material change to this Arbitration Agreement, you may reject that change within thirty (30) days of such change becoming effective by writing us at and expressly opting out of this Arbitration Agreement. 21. **General** 1. The Service may be subject to U.S. export control laws and may be subject to export or import regulations in other countries. You agree not to use, export, reexport, or transfer, directly or indirectly, any U.S. technical data acquired from Phynite, or any products utilizing such data, in violation of the United States export laws or regulations. You may not use, export, import, or transfer the Service except as authorized by U.S. law, the laws of the jurisdiction in which you obtained the Service, and any other applicable laws. You acknowledge and agree that products, services or technology provided by Phynite are subject to the export control laws and regulations of the United States. You shall comply with these laws and regulations and shall not, without prior U.S. government authorization, export, re-export, or transfer Phynite products, services or technology, either directly or indirectly, to any country in violation of such laws and regulations. This Agreement, and your access to and use of the Service, shall be governed by and construed and enforced in accordance with the laws of the State of California, without regard to any conflict of law rules or principles that would cause the application of the laws of any other jurisdiction. Any dispute between the parties that is not subject to arbitration or cannot be heard in small claims court, shall be resolved in the state or federal courts of Los Angeles, California. We reserve the right in our sole discretion to (i) modify, suspend, or discontinue the Service, or any features or parts thereof, whether temporarily or permanently, at any time with or without notice to you; and (ii) terminate your right to access or use the Service at any time and for any or no reason. You acknowledge and agree that we shall have no liability or obligation to you in connection with any such event as described in the foregoing sentence and that you will not be entitled to a refund of any amounts that you have already paid to us, to the fullest extent permitted by applicable law. 2. If any term, clause or provision of this Agreement is held invalid or unenforceable, then that term, clause or provision will be severable from this Agreement and will not affect the validity or enforceability of any remaining part of that term, clause or provision, or any other term, clause or provision of this Agreement. This Agreement, and any rights and licenses granted hereunder, may not be transferred or assigned by you without the prior written consent of Phynite. Phynite’s failure to assert any right or provision under this Agreement shall not constitute a waiver of such right or provision. Except as otherwise provided herein, this Agreement is intended solely for the benefit of Phynite and you and shall not confer third party beneficiary rights upon any other person or entity. 22. **Contact Information**:
# Terms and Conditions For Online Sales To Consumers 1. THIS DOCUMENT CONTAINS VERY IMPORTANT INFORMATION REGARDING YOUR RIGHTS AND OBLIGATIONS, AS WELL AS CONDITIONS, LIMITATIONS, AND EXCLUSIONS THAT MIGHT APPLY TO YOU. PLEASE READ IT CAREFULLY. 1. BY PLACING AN ORDER FOR PRODUCTS FROM THIS WEBSITE, YOU ACCEPT AND ARE BOUND BY THESE TERMS AND CONDITIONS. YOU MAY NOT PERFORM TRANSACTIONS ON OUR SITE IF YOU DO NOT AGREE TO THESE TERMS. 2. These terms and conditions (these "Terms") apply to the purchase and sale of products through [www.phynite.io](http://www.phynite.io) (the "Site"). These Terms are subject to change by Phynite Corporation (referred to as “Phynite,” "us," "we," or "our" as the context may require) without prior written notice at any time, in our sole discretion. The latest version of these Terms will be posted on this Site, and you should review these Terms before purchasing any product or services that are available through this Site. Your continued use of this Site after a posted change in these Terms will constitute your acceptance of and agreement to such changes. 3. These Terms are an integral part of the Website Terms of Use that apply generally to the use of our Site. You should also carefully review our Privacy Notice before placing an order for products or services through this Site (see Section 8). 2. Order Acceptance and Cancellation. You agree that your order is an offer to buy, under these Terms all products listed in your order. All orders must be accepted by us, or we will not be obligated to facilitate the transaction. We may choose not to accept any orders in our sole discretion. Customers will receive an automatic confirmation email after placing their order. Some customers will receive their mystery item online and open it online. Other customers may receive their mystery item by mail. Acceptance of your order and the formation of the contract of sale between Phynite and you will not take place unless and until you have received your order confirmation email. 3. Prices and Payment Terms 1. All prices posted on this Site are subject to change without notice. The price charged for a product will be the price in effect at the time the order is placed and will be set out in your order confirmation email. Price increases will only apply to orders placed after such changes. Posted prices do not include taxes or charges for shipping and handling. All such processing fees and transaction fees will be displayed on your screen before you check out. The total fee breakdown can be sent by confirmation email after your purchase. We are not responsible for pricing, typographical, or other errors in any offer by us and we reserve the right to cancel any orders arising from such errors. 2. Terms of payment are within our sole discretion and payment must be received by us before our acceptance of an order. We accept USDC (crypto), credit cards, and debit cards for all purchases. You represent and warrant that (i) the credit card or debit card information you supply to us is true, correct, and complete, (ii) you are duly authorized to use such credit card or debit card for the purchase, (iii) charges incurred by you will be honored by your credit card or debit card company, and (iv) you will pay charges incurred by you at the posted prices, including all applicable taxes, if any. 4. Shipments; Delivery; Title and Risk of Loss. 1. We will arrange for shipment of the products to you. Please check the individual product page for specific delivery options. You will pay all shipping and handling charges specified during the ordering process. 2. Title and risk of loss pass to you upon our transfer of the products to the carrier/delivery. Shipping and delivery dates are estimates only and cannot be guaranteed. We are not liable for any delays in shipments or packages lost during shipping. 5. Returns and Refunds. There are no refunds for products purchased on our Site. If the product that you purchase is defective, fake, or counterfeit you will receive a cash refund subject to the following terms: 1. Returns must be received by us within 30 days of the shipping date of the original order; 2. You will be responsible for all shipping and handling charges on any defective, fake, or counterfeit products are covered in 6(e); 3. You bear the risk of loss during shipment. We therefore strongly recommend that you fully insure your return shipment against loss or damage and that you use a carrier that can provide you with proof of delivery for your protection; 4. The product must be returned in its original condition; 5. You must include a copy of the original purchase date email; and 6. Your cash refund will be processed within approximately 10 business days of our receipt of the product(s). 6. LIMITED WARRANTY THIS WARRANTY GIVES YOU SPECIFIC LEGAL RIGHTS, AND YOU MAY ALSO HAVE OTHER RIGHTS WHICH VARY FROM STATE TO STATE. WE LIMIT THE DURATION AND REMEDIES OF ALL IMPLIED WARRANTIES, INCLUDING WITHOUT LIMITATION THE WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, TO THE DURATION OF THIS LIMITED WARRANTY. SOME STATES DO NOT ALLOW LIMITATIONS ON HOW LONG AN IMPLIED WARRANTY LASTS, SO THE ABOVE LIMITATION MAY NOT APPLY TO YOU. NEITHER ANY PERFORMANCE OR OTHER CONDUCT, NOR ANY ORAL OR WRITTEN INFORMATION, STATEMENT OR ADVICE PROVIDED BY US WILL CREATE A WARRANTY, OR IN ANY WAY INCREASE THE SCOPE OR DURATION OF THIS LIMITED WARRANTY. 1. Who May Use This Warranty? 1. This limited warranty extends only to the original purchaser of products from the Site. It does not extend to any subsequent or other owner or transferee of the product. 2. What Does This Warranty Cover? 1. This limited warranty covers during the Warranty Period (as defined below) defects in materials and workmanship in products purchased from the Site. 3. What Does This Warranty Not Cover? 1. transportation; 2. storage; 3. improper use; 4. failure to follow the product instructions or to perform any preventive maintenance; 5. modifications; 6. normal wear and tear; or 7. external causes such as accidents, abuse, or other actions or events beyond our reasonable control. 4. What Is the Period of Coverage? 1. This limited warranty starts on the date of your purchase and lasts for 30 days the "Warranty Period". The Warranty Period is not extended if we replace a warranted product. We may change the availability of this limited warranty at our discretion, but any changes will not be retroactive. 5. What Are Your Remedies Under This Warranty Concerning Defective, Fake, or Counterfeit Products? 1. Returning defective, fake, or counterfeit products is simple. First, email us at a photograph of your defective, fake, or counterfeit product and in the subject of the email write your order number. Upon verification of the item being defective, fake, or counterfeit we will issue you a cash refund. 6. Limitation of Liability 1. THE REMEDIES DESCRIBED ABOVE ARE YOUR SOLE AND EXCLUSIVE REMEDIES AND OUR ENTIRE OBLIGATION AND LIABILITY FOR ANY BREACH OF THIS LIMITED WARRANTY. OUR LIABILITY WILL UNDER NO CIRCUMSTANCES EXCEED THE ACTUAL AMOUNT PAID BY YOU FOR THE DEFECTIVE, FAKE, OR COUNTERFEIT PRODUCT THAT YOU HAVE PURCHASED THROUGH THE SITE, NOR WILL WE UNDER ANY CIRCUMSTANCES BE LIABLE FOR ANY LOSS OF PRODUCTION, WORK, DATA, USE, BUSINESS, GOODWILL, REPUTATION, REVENUE OR PROFIT, ANY DIMINUTION IN VALUE, COSTS OF REPLACEMENT GOODS, OR ANY CONSEQUENTIAL, INCIDENTAL, SPECIAL OR PUNITIVE DAMAGES OR LOSSES, WHETHER DIRECT OR INDIRECT. WE ARE NOT RESPONSIBLE FOR ANY ALLERGIES OR SENSITIVITIES TO ANY MATERIALS USED TO MAKE OUR PRODUCTS. 2. SOME STATES DO NOT ALLOW THE EXCLUSION OR LIMITATION OF INCIDENTAL OR CONSEQUENTIAL DAMAGES, SO THE ABOVE LIMITATION OR EXCLUSION MAY NOT APPLY TO YOU. 7. What Can You Do in Case of a Dispute with Us? 1. The informal dispute resolution procedure detailed in Section 11 is available to you if you believe that we have not performed our obligations under this limited warranty or these Terms. 7. Intellectual Property Use and Ownership. You acknowledge and agree that: 1. All uses on this Site of the terms "sell," "sale," "resell," "resale," "purchase," "price" and the like mean the purchase or sale of a license. Each product marketed on this Site is made available solely for license, not sale, to you and other prospective customers. 2. Phynite is and will remain the sole and exclusive owner of all intellectual property rights in and to each product made available on this Site and any related specifications, instructions, documentation or other materials, including, but not limited to, all related copyrights, trademarks and other intellectual property rights. You do not and will not have or acquire any ownership of these intellectual property rights in or to the products made available through this Site, or of any intellectual property rights relating to those products or services. 8. Privacy. We respect your privacy and are committed to protecting it. Our Privacy Notice, located at [www.phynite.io](http://www.phynite.io), governs the processing of all personal data collected from you in connection with your purchase of products or services through the Site. 9. Force Majeure. Neither party shall be liable or responsible to the other party, nor be deemed to have defaulted under or breached this Agreement, for any failure or delay in fulfilling or performing any term of this Agreement (except for any of your obligations to make payments to us hereunder), when and to the extent such failure or delay is caused by or results from acts beyond the impacted party's ("Impacted Party") control, including, without limitation, the following force majeure events ("Force Majeure Event(s)"): (a) acts of God; (b) flood, fire, earthquake, epidemics, or explosion; (c) war, invasion, hostilities (whether war is declared or not), terrorist threats or acts, riot or other civil unrest; (d) government order, law, or actions; (e) embargoes or blockades in effect on or after the date of this Agreement; (f) national or regional emergency; (g) strikes, labor stoppages or slowdowns, or other industrial disturbances; (h) telecommunication breakdowns, power outages or shortages, lack of warehouse or storage space, inadequate transportation services, or inability or delay in obtaining supplies of adequate or suitable materials; and (i) other events beyond the control of the Impacted Party. The Impacted Party shall resume the performance of its obligations as soon as reasonably practicable after the removal of the cause. 10. Governing Law and Jurisdiction. All matters arising out of or relating to these Terms are governed by and construed in accordance with the internal laws of the State of California without giving effect to any choice or conflict of law provision or rule (whether of the State of California or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than those of the State of California. 11. Dispute Resolution 1. All disputes arising out of this agreement shall be submitted to mediation in accordance with the rules and procedures of Arts Arbitration and Mediation Services, a program of California Lawyers for the Arts. If mediation is not successful in resolving all disputes arising out of this agreement, those unresolved disputes shall be submitted to final and binding arbitration. The arbitrator shall be selected in accordance with the rules of Arts Arbitration and Mediation Services, a program of California Lawyers for the Arts. If such services are not available, the dispute shall be submitted to the American Arbitration Association in accordance with the laws of the State of California. The arbitrator’s award shall be final, and judgment may be entered upon it by any court having jurisdiction thereof. Both arbitration and mediation shall occur in California. 2. TO THE EXTENT PERMITTED BY APPLICABLE LAWS, YOU AND PHYNITE AGREE THAT ANY CAUSE OF ACTION ARISING OUT OF OR RELATED TO THE SITE MUST COMMENCE WITHIN ONE (1) YEAR AFTER THE CAUSE OF ACTION ACCRUES. OTHERWISE, SUCH CAUSE OF ACTION IS PERMANENTLY BARRED. The preceding sentence does not apply to New Jersey residents. 3. Class Action Waiver. BOTH YOU AND PHYNITE WAIVE THE RIGHT TO BRING ANY CONTROVERSY, CLAIM, OR DISPUTE ARISING OUT OF OR RELATING IN ANY WAY TO YOUR USE OF THE SERVICES OR PURCHASES THROUGH THE SERVICES AS A CLASS, CONSOLIDATED, REPRESENTATIVE, COLLECTIVE, OR PRIVATE ATTORNEY GENERAL ACTION, OR TO PARTICIPATE IN A CLASS, CONSOLIDATED, REPRESENTATIVE, COLLECTIVE, OR PRIVATE ATTORNEY GENERAL ACTION REGARDING ANY SUCH CLAIM BROUGHT BY ANYONE ELSE 4. Waiver of Jury Trial. THE PARTIES HEREBY WAIVE THEIR CONSTITUTIONAL AND STATUTORY RIGHTS TO GO TO COURT AND HAVE A TRIAL IN FRONT OF A JURY, INSTEAD ELECTING THAT THE DISPUTE BE RESOLVED BY A JUDGE. 12. Assignment. You will not assign any of your rights or delegate any of your obligations under these Terms without our prior written consent. Any purported assignment or delegation in violation of this Section 13 is null and void. No assignment or delegation relieves you of any of your obligations under these Terms. 13. No Waivers. The failure by us to enforce any right or provision of these Terms will not constitute a waiver of future enforcement of that right or provision. 14. No Third-Party Beneficiaries. These Terms do not and are not intended to confer any rights or remedies upon any person other than you. 15. Notices. 1. To You. We may provide any notice to you under these Terms by: (i) sending a message to the email address you provide or (ii) by posting to the Site. Notices sent by email will be effective when we send the email and notices we provide by posting will be effective upon posting. It is your responsibility to keep your email address current. 2. To Us. To give us notice under these Terms, you must contact us by . Notices provided by registered or certified mail will be effective three business days after they are sent. 16. Severability. The provisions of these Terms are intended to be interpreted in a manner which makes them valid, legal, and enforceable. In the event that any provision is found to be partially or wholly invalid, illegal, or unenforceable, such provision shall be modified or restricted to the extent and in the manner necessary to render it valid, legal, and enforceable. It is expressly understood and agreed between the parties that such modification or restriction may be accomplished unilaterally by us, or alternatively, by disposition of a court of law. If such provisions cannot under any circumstances be so modified or restricted, they shall be excised from the Terms without affecting the validity, legality, or enforceability of any of the remaining provisions. 17. Entire Agreement. Your order confirmation, these Terms, our Website Terms of Use and our Privacy Notice will be deemed the final and integrated agreement between you and us on the matters contained in these Terms. # Privacy Policy 1. **Types of Information Gathered** 1. Personal Information 1. Personal data refers to any information that relates to an identified or identifiable living individual. This information can be anything that can be used to identify an individual directly or indirectly, such as a name, address, email address, phone number, date of birth, or any other information that can be used to identify a person. 2. Anonymous Data 1. Anonymous data refers to information that does not identify an individual and cannot be used to infer or link back to the identity of an individual. This type of data is collected, processed, and analyzed in a way that prevents identification of the individual, for instance, by removing personally identifiable information or by aggregating data to a level that individual identities cannot be discerned. 2. **How Phynite gathers Personal and Anonymous Data** 1. Phynite Account Set Up 1. Before using our services, you will be required to create a Phynite Account. During this process we will require you to provide Personal Information, such as email address. 2. Profile 1. Phynite offers the ability for you to enable certain features and preferences on your Phynite Account. We may take these choices and correlate them to your Phynite account, device used, or third-party wallet address. 3. Feedback 1. Phynite prides itself in absorbing as much user feedback as possible in order to provide consistent optimal conditions. By giving us feedback, we may collect Personal Information, such as name, feedback content, phone number, and/or email. 4. Voluntary 1. In certain situations, Phynite may ask you for voluntary information for data collecting reasons. 3. **How Phynite Uses Gathered Information** 1. We may use your personal information to: 1. Provide our services to you. 2. Process your orders and payments. 3. Communicate with you about your account or our services. 4. Send you marketing communications if you have opted in to receive them. 5. Improve our platform and services. 6. Comply with legal requirements. 7. Investigate users who have breached our Terms of Service. 8. Send verification messages to verify the rightful owner of a CBNFT. 9. Use your personal information for analytical and statistical purposes, to detect and prevent fraud, and to protect the security of our services. 2. Phynite holds the right to disclose any or all Anonymous Information that has been gathered to third-party services, affiliates, and applications. 4. **Disclosing Personal Data:** 1. We may share your personal information with third-party service providers who help us provide our services, such as payment processors or shipping providers. These service providers are only authorized to use your personal information to the extent necessary to perform services on our behalf and are required to maintain the confidentiality and security of your information. 2. We may also share your information with our affiliates, which are companies that are under common ownership or control with us. Our affiliates may use your personal information for marketing or other purposes consistent with this Privacy Policy. 3. In addition, we may share your personal information if required by law or if we believe it is necessary to protect our rights or the rights of others. For example, we may disclose your personal information in response to a subpoena or court order, or to prevent or investigate potential fraud, security breaches, or illegal activities. 4. If we are involved in a merger, acquisition, or sale of all or a portion of our assets, your personal information may be transferred as part of that transaction. We will notify you of any such change in ownership or control of your personal information. 5. We may also share your personal information with other users of our services if you engage in transactions or interactions with them. For example, if you purchase a product from another user, we may share your name, shipping address, and other necessary information with that user to facilitate the transaction. 6. Please note that if you choose to disclose personal information in public areas of our website or third-party website links, such as message boards or forums, that information may be visible to other users and can be read, collected, or used by them. We are not responsible for the personal information you choose to submit in these public areas. We may use and disclose anonymous information for any purpose, including marketing and advertising, without restriction. 5. **Information Accessibility** 1. The Client has access to view, edit, or delete certain Personal Information that has been provided to Phynite through your account settings. If you reside in California, you have additional rights under the California Consumer Privacy Act. Moreover, if you reside in the European Area or United Kingdom you have granted additional rights under the General Data Protection Regulation as well. When exercising these additional rights, please contact so we could further assist your request. One important aspect to note is that Phynite does not have the access to view, edit, or delete Personal Information that is stored on the Ethereum Blockchain. This is due to the fact that we do not own, manage, or moderate the Ethereum Blockchain in any shape or form. 6. **Data Retention** 1. We will retain your personal information for as long as necessary to fulfill the purposes for which we collected it, including for the purposes of satisfying any legal, accounting, or reporting requirements. If you hold a Phynite account, we will retain your personal information for as long as your account is active or as needed to provide you with our services. If you wish to cancel your account or request that we no longer use your personal information to provide you with our services, please contact us at . We may retain and use your personal information to the extent necessary to comply with our legal obligations, resolve disputes, and enforce our agreements. We may also retain and use anonymous information for any purpose, including marketing and advertising, without restriction. If we no longer need your personal information for any of the purposes for which we collected it, we will take reasonable steps to securely destroy or permanently de-identify that information. Please note that we may be required by law to retain certain information for a certain period of time. In such cases, we will comply with the law and ensure that any such retention is done in a manner that protects your privacy rights. 7. **Children’s Policy** 1. Phynite’s age requirement of 18 years old (highlighted in the Terms of Service) is mandated for a reason. Our services are not intended for children under the age of 18. We do not knowingly collect personal information from children under the age of 18. 8. **Changes Made** 1. Due to the upscale potential of Phynite, we hold the right to make amendments to the Privacy Policy at any time. However, Phynite will not make these changes with the purpose to lie, deceive, or any malicious intent. We will do our due diligence of informing the client about these changes through our main communication method. \
# Phynite Anti-Money Laundering (AML) and Know Your Customer (KYC) Policies Phynite believes in comprehensive customer identification, customer due diligence, and enhanced due diligence (if applicable). Our staff is trained in risk-based procedures that enable them to form a reasonable belief in the true identity of our customers. Phynite’s goal is to obtain ample information on our customers to verify their identity and assess their riskiness. Our staff is trained to request a customer’s full legal name, full physical address, date of birth, and in certain cases identification number. Upon receipt of a customer’s personal information, we perform customer due diligence to examine and verify the information that we have received. If Phynite has reason to believe that a customer may pose additional risks, we may perform enhanced due diligence to gain a better understanding of a customer’s motivations to utilize our services. # Anti-Money Laundering (AML) and Know Your Customer (KYC) Procedures Phynite works diligently to support the efforts of our partners to know our customers and prevent money laundering. We are required to collect and periodically check the information on all of our customers. The following information is required: **Customer Information Required** * Full Legal Name (as it appears on your government identification, including middle name if applicable) * Full Physical Residential Address (P.O. Box, post office location, commercial mail receiving agency, or a registered agent cannot be accepted) * Date of Birth * SSN, ITIN, or other valid government-issued ID (where applicable) **How can I provide my information to Phynite?** You will receive an email from with a link that can be used to submit the requested information. **Frequently Asked Questions** 1. What is Know Your Customer (KYC)? 1. KYC is a government requirement designed to verify the identity of customers and understand their activities. 2. What is the purpose of Know Your Customer? 1. KYC plays a role in verifying the identify of customers to assist in preventing anti-money laundering activities, fraud, illegal fund transfers, and the financing of terrorism. 3. What is the process of Know Your Customer verification? 1. KYC procedures involve the collection and verification of customer's personal information through the form of an acceptable identification card. 2. Personal information includes your 1. First name, Middle name (if applicable), and Last name. 2. Residential address (including City, State/Province, Postal/Zip Code & Country, as applicable) 3. Date of Birth, 4. Social Security number or equivalent, in certain cases. 4. What Identification Cards are acceptable? 1. State Issued Driver’s License or Identification Card 2. Passport 3. United States Permanent Residence Card 4. National Identity Card (if from outside of United States) 5. United States Military Identification Card 5. What Identification Cards are unacceptable? 1. School Identification Card 2. Medical Identification Card 3. Temporary (paper) Identification Card 4. Residence Permit 5. Public Services Card 6. What does it mean if a customer is asked for additional information concerning proof of their address? 1. Sometimes, Phynite needs additional information to verify a customer’s address. If this is the case, we may ask that you submit to us a copy of a recent (last three months) bank statement, credit card statement, or utility bill. 7. How Phynite handles Know Your Customer verification? 1. After a customer submits their personal information, Phynite will work to verify a customer’s identity. # PHYNITE POWER PACK Coming Soon...