Client money (Fiat)

All the definitions used below are defined in the Client Agreement and MTF Rules and must be read in conjunction with these documents.

Before we receive Client Money, MidChains is required to disclose to you the following:

1. [Interest] MidChains does not provide interest on the Client’s money held.
2. [Segregation] Client money shall be held segregated from money belonging to MidChains.
3. [Protection] When Client money are held in MidChains’ Client money account, you shall be subject to the protections conferred by the Client Money Provisions as provided under the FSRA Rules.
4. [Pooling] Your money shall be pooled with other client money into one account, therefore, your money is not physically segregated from other clients money, but shall remain segregated from MidChains’ own money. In the event of MidChains’ insolvency, winding up or other event stipulated by the FSRA, the Client’s Money will be subject to the Client Money Distribution Rules.
5. [Bank] Client Money will be held in client money accounts by a third party banking partner(s) approved by the FSRA. MidChains’ current third party banking partner is SEBA Bank AG, Switzerland (may change from time-to-time).
6. [Jurisdiction] Whether Client Money may at any point be held in a jurisdiction outside ADGM and (if so) whether and how far the market practices, insolvency and legal regime applicable in that jurisdiction may differ from the regime applicable in ADGM. At the moment Client Money are being held in and are subject to the applicable laws of Switzerland.
7. [Reconciliation and Statements] MidChains shall conduct a daily reconciliation of your money that Company holds on your behalf. MidChains will not physically send out statements, instead, you may view your near-real time statement at any time upon logging into your Account. Please refer to Client Agreement Section 12 for details of the statement.
8. [Liability] MidChains shall not be liable for insolvency, acts or omissions of a third-party banking partner(s) holding Client Money. However, MidChains is conduct an appropriate and continuing risk assessment of our third-party banking partner(s) prior to enter into a service agreement, in order to ensure that those banks are safe repositories.
9. [Client Default] On a Default event under the MTF Rules or at any time after MidChains has determined, in its absolute discretion, that you have not performed (or MidChains reasonably believes that you will not be able or willing in the future to perform) any of your obligations to it, MidChains may immediately suspend your access to the Custody Service.

Safe custody provisions (AVA)

1. [Protection] When your Accepted Virtual Assets are held in MidChains’ custody on your behalf, you shall be subject the protections conferred by the Safe Custody Provisions as provided under the FSRA Rules.
2. [Safe custody] Any Accepted Virtual Asset received by MidChains from Clients will be received and securely stored by the Company, whereas MidChains will be sole custodian of the private keys.
3. [Interest] MidChains does not provide interest on the Accepted Virtual Assets held on your behalf.
4. [Jurisdiction] MidChains shall hold Clients Accepted Virtual Assets in the ADGM. Shall MidChains decide to locate the Assets outside the ADGM, the Company must promptly disclose to the Clients their Accepted Virtual Assets are being held outside the ADGM and, if applicable, the market practices, insolvency and legal regime in that jurisdiction may differ from the regime applicable in the ADGM.
5. [Segregation] Your Accepted Virtual Assets shall be held segregated from Accepted Virtual Assets belonging to MidChains.
6. [Pooling] Your Accepted Virtual Assets shall be pooled with other client Assets into omnibus Wallet, therefore, your money is not physically segregated from other clients Assets, but shall remain segregated from MidChains’ Assets.
7. [Reconciliation and Statements] MidChains shall conduct a daily reconciliation of your Accepted Virtual Assets that Company holds on your behalf. MidChains will not physically send out statements, instead, you may view your near-real time statement at any time upon logging into your Account. Please refer to Client Agreement Section 12 for details of the statement.
8. [Client Default] On an event of a Default or at any time after MidChains has determined, in its absolute discretion, that you have not performed (or MidChains reasonably believes that you will not be able or willing in the future to perform) any of your obligations to it, MidChains may immediately suspend your access to the Custody Service.