Important changes! Poloniex’s have new "Terms of Use"! [Full comparison]
Poloniex has today changed its Terms of Service.
I myself hate to read the TOS of Services. But because Poloniex has not noticed lately due to reliability, I have looked at this change of the TOS more closely today and compared the old one with the new one.
I've created a countertop for each section and listed all the changes accordingly. So you only have to read the most necessary and do not compare everything yourself.
Everyone can form their own opinion on these TOS.
My conclusion can be found at the end of this article.
INTRO
Added / Changed
- Hint that some massive change was made
- API is now part of the TOS
- Support desk is now part of the TOS
- Reference to paragraph 23
Removed
Nothing
PREAMBLE
Added / Changed
- Specification about what Poloniex is
Removed
Nothing
1. ELIGIBILITY
Added / Changed
- Reference of to a list of now restricted states (find it here)
Restricted states in the U.S. are:
- New Hampshire
- New York
- Washington
Removed
- Removed "New York" as specific "restricted state"
2. ACCOUNT AND INITIAL FUNDING; THIRD PARTY TRANSFERS
Added / Changed
- Corrected Spelling
- Tablets and mobile phones are now part of the devices list
- You must provide Poloniex with a valid email address to create an Account.
- You agree to keep your email address on file with us updated.
- You may withdraw your consent to receive emails by sending a withdrawal notice to Poloniex, understanding that Poloniex may suspend or terminate your ability to use the Services.
- Poloniex does not allow Users to exchange Tokens for money; Users can only exchange Tokens for other Tokens
- In order to fund your Account and begin trading, you will need to first procure Tokens
- It is your responsibility to ensure you send Tokens to the correct address provided for that particular Token, else your funds may never be recovered.
- Poloniex makes no representations or warranties regarding the amount of time that may be required to complete transfer of your Tokens from a third party wallet or other source and have such Tokens become available in your Account.
- You agree that you shall not hold Poloniex liable for any damages arising from a rejected token transfer.
- Poloniex reserves the right to limit the number of Accounts that any User or such User’s affiliates can open or hold.
Removed
Nothing
3. PRIVACY POLICY
Added / Changed
- Poloniex is now able to send your data to third parties to verify your identity. On Poloniex’s sole judgment.
- Poloniex will provide your data in cases of law enforcement or court order
Removed
Nothing
4. CONFIDENTIALITY OF THE TRANSMISSION OF INFORMATION OVER THE INTERNET
Added / Changed
- Changed "not hundred percent" to "may not always"
- No liability now for "loss and damage" instead of only "damage"
Removed
Nothing
5. RISK DISCLOSURE STATEMENT
Added / Changed
- Trading Tokens can be extremely risky.
- Understanding Tokens requires advanced technical knowledge.
- You accept the risk of trading Tokens.
- You are responsible for complying with applicable law.
- You are aware of and accept the risk of operational challenges.
- Poloniex does not advise on trading risk
- Poloniex is a regulated entity and must comply with applicable law.
(Applicable law, regulation, and executive orders may require Poloniex to, upon request by government agencies, freeze withdrawals or trading (or both), or provide information regarding your account. Further, our recordkeeping and customer verification procedures are subject to change at any time as required by law or industry practices. We must comply with the law and you accept any inconveniences to you or other consequences resulting from our compliance.) - Users accept all consequences of sending Tokens to an address off our platform.
In short: it´s all your own risk!
Removed
Nothing. Just changed and specified.
6. MARGIN TRADING
Added / Changed
You agree to maintain a sufficient amount of Tokens at all times to meet Poloniex’s minimum balance requirements, as such requirements may be modified from time to time. If the value of the assets in your Account falls below the minimum balance requirement or Poloniex determines, at its sole discretion, that your Account appears to be in danger of defaulting on a loan, Poloniex may seize and liquidate any or all of your positions and assets on any balance in your Account in order to settle your debt to other Users. If, after your positions and assets are liquidated, your Account still contains insufficient Tokens to settle your debts to other Users, you will be responsible for any additional Tokens owed. Intentionally defaulting on a loan may result in Poloniex reporting your activities to authorities and/or in legal prosecution.
Although Poloniex takes several precautions to prevent a User from defaulting on a loan, the high volatility and substantial risk of illiquidity in markets means that Poloniex cannot make any guarantees to any Users using the Services against default. When you lend Tokens to other Users, you risk the loss of an unpaid principal if the borrower defaults on a loan and liquidation of the borrower's Account fails to raise sufficient Tokens to cover the borrower’s debt.
Under certain market conditions, you may find it difficult or impossible to liquidate a position. This can occur, for example, if there is insufficient liquidity in the market or due to technical issues on our platform. Placing contingent orders, such as "stop-loss" or "stop-limit" orders, will not necessarily limit your losses to the intended amounts, since market conditions may make it impossible to execute such orders. The use of leverage can work against you as well as for you and can lead to large losses as well as gains.
All Users understand that the technology underlying Tokens is subject to change at any time, and such changes may affect your assets stored on our platform. You claim full responsibility for monitoring such technological changes and understanding their consequences for your Tokens. Users conduct all trading, margin trading, lending, and/or borrowing on their own account and Poloniex does not take any responsibility for any loss or damage incurred as a result of your use of any Services or your failure to understand the risks involved in Token use generally or your use of our Services.
Removed
Nothing. Just changed and specified.
7. LIMITED LICENSE
Added / Changed
In consideration for the use of the Services, you agree to pay to Poloniex the fees for completed trades, as set forth in our fee schedule, which Poloniex may revise or update in its sole discretion from time to time. You authorize Poloniex to deduct any applicable fees from your Account at the time you make a given transaction. Changes to the fee schedule are effective as of the date set forth in any revision and will apply prospectively from that date forward.
Poloniex does not, as a general rule, participate in promotions without an official pronouncement, either on our Site or elsewhere. You promise to obtain prior written approval prior to releasing any statements, written media releases, public announcements and public disclosures, including promotional or marketing materials, relating to Poloniex.
Removed
Nothing
8. COPYRIGHT INFRINGEMENT
Poloniex is moved to Boston from Wilmington in Delaware.
For sure this have something todo with the laws of the both states in the U.S.
Nothing else changed here.
9. ATTACKS ON BLOCKCHAIN NETWORKS
Added / Changed
- Mostly changed wording ("crypto" to "token")
- Resolutions concerning deposits, withdrawals, and User balances for an attacked Token will be determined on a case-by-case basis by Poloniex in its sole discretion.
- Poloniex makes no representation and does not warrant the safety of the Platform and is not liable for any lost value or stolen property, whether or not Poloniex was negligent in providing the proper security.
Removed
- Reference to 51% attacks
10. BSA / FinCEN
Added / Changed
- Poloniex´s Money Services Business (“MSB”) registration number changed to 31000091844018 (Confirm here)
- Poloniex may also be required to provide information to government agencies as required by law to other state or federal agencies.
Removed
Nothing. Just changed and specified.
11. Anti-Money Laundering (AML) & Know Your Customer (KYC) Policy
Added / Changed
- Poloniex aims to reasonably identify each User by cross-checking User data against governmental watch lists such as the Specially Designated Nationals and Blocked Persons List (“SDN”) maintained by the Office of Foreign Assets Control
- If a User or a User’s transaction is flagged as suspicious through our internal controls, Poloniex will require additional proof of identification from the User and has the right to not permit any trades, deposits, and/or withdrawals until additional and verifiable proof of identity satisfactory to Poloniex in its sole discretion is received and Poloniex has approved the User for use of the Platform.
- Changed "verification levels" to "verification levels and criteria"
- Replaced "funds" with "tokens"
- Corrected spelling
Removed
Nothing
12. THIRD PARTY CONTENT
Added / Changed
- Corrected spelling.
Removed
Nothing
13. COPYRIGHT OF FEEDBACK MATERIALS
Added / Changed
- Information or commentary you provide on our platform or one of our social media accounts, regarding Poloniex or the Services (collectively, "Feedback") that are provided by you, whether by email, posting to the Site or otherwise, are non-confidential and will become the sole property of Poloniex.
Removed
Nothing.
14. USER CONDUCT AND OBLIGATIONS
Added / Changed
- Reference to section 1
- It´s now forbidden to provide "incomplete data".
- It´s now forbidden "to use a web crawler or similar technique to access our Services or to extract data
Removed
Nothing
15. NO TRANSFERABILITY
Added / Changed
- Changed section title
- Corrected spelling
- Name of lenders
Removed
Nothing
16. ELECTRONIC TRADING TERMS
Okay, this is a long one but you have to read it. It´s very important stuff!
Added / Changed
Poloniex does not own or control any of the underlying software through which blockchain networks are formed and Tokens are created and transacted. In general, the underlying software for blockchain networks tends to be open source such that anyone can use, copy, modify, and distribute it.
Poloniex is not responsible for operation of the underlying software and networks that support Tokens and that Poloniex makes no guarantee of functionality, security, or availability of such software and networks
The underlying protocols are subject to sudden changes in operating rules (a/k/a “Forks”), and that such Forks may materially affect the value, function, and/or even the name of the Tokens you store in your Account. In the event of a Fork, you agree that Poloniex may temporarily suspend the Services (with or without advance notice to you) and that Poloniex may, in its sole discretion, (a) configure or reconfigure its systems or (b) decide not to support (or cease supporting) the Forked network entirely, provided, however, that you will have an opportunity to withdraw Tokens on at least one of still existant underlying networks.
You acknowledge and agree that Poloniex assumes absolutely no responsibility whatsoever in respect of any underlying software protocols, whether Forked or not.
Poloniex may delist a Token at any time in its sole discretion based on a number of factors, one of which may include changes in a given Token’s characteristics after Poloniex has listed the Token.
A transaction on the Platform may fail for several reasons, including but not limited to change in seller prices, insufficient margin, or unanticipated technical difficulties. We make no representation or warrant that any transaction will be executed properly.
Poloniex is under no circumstances liable for any loss or injury suffered by a failure of a transaction to complete properly or in a timely manner. Further, Poloniex is in no way responsible for notifying you of a transaction failure. The User has full responsibility to determine and inquire into the failure of any transaction the User initiates.
In the event that you receive any data, information, or software through our Services other than that which you are entitled to receive pursuant to these Terms, you will immediately notify us and will not use, in any way whatsoever, such data, information, or software. If you request a withdrawal of Tokens and we cannot comply with it without closing some part of your open positions, we will not comply with the request until you have closed sufficient positions to allow you to make the withdrawal.
Poloniex may refuse to execute a trade, impose trade amount limits or restrictions at any time in its sole discretion without notice. Specifically, Poloniex reserves the right to refuse to process, or the right to cancel or reverse, any transaction or disable a User’s deposit address on the Platform where Poloniex suspects the transaction involves money laundering, terrorist financing, fraud, or any other type of crime or if Poloniex suspects the transaction relates to a prohibited use as stated in our Terms, including transactions involving the opening of an Account and subsequent closure without any actual trading occurring.
Poloniex provides deposit Accounts to enable trading using the Services and does not allow Users to use such Accounts as a web wallet or address changing service. We reserve the right to halt deposit activity at our sole discretion.
While Poloniex may in its discretion reverse a trade, a User may not change, withdraw, or cancel its authorization to make a transaction, except with respect to partially filled orders.
Poloniex may correct, reverse, or cancel any trade impacted by an error in processing your purchase or otherwise. Your remedy in the event of an error will be limited. You may seek to cancel your order or obtain a refund of any amounts charged to you, although we cannot guarantee such cancellations or refunds will always be possible.
Poloniex provides its Users with a platform that allows their orders to be matched with the orders of other Users. Orders may be partially filled or may be filled by a number of orders, depending on the trading activity at the time an order is placed.
The Tokens that are available for purchase through the Services may be subject to high or low transaction volume, liquidity, and volatility at any time for potentially extended periods. You acknowledge that while we are using commercially reasonable methods to provide exchange rate information to you through our Services, the exchange rate information we provide may differ from prevailing exchange rates made available by third parties. Similarly, the actual market rate at the time of your trade may be different from the indicated prevailing rate depending on the velocity of trading in the Tokens involved in your trade.
You agree that Poloniex is not liable
Removed
Nothing
17. PERMANENT WITHDRAWAL OF SERVICE
Added
- You may not cancel your Account if Poloniex believes in its sole discretion that such cancellation is being performed in an effort to evade an investigation or avoid paying any amounts otherwise due to Poloniex.
- Corrected spelling
- Replaced "funds" with "tokens"
Removed
Nothing
18. OWNERSHIP OF TOKENS
Added
- Corrected spelling
- Replaced "funds" with "tokens"
Removed
Nothing
19. INDEMNIFICATION
Added / Changed
Nothing
Removed
Nothing
20. DISCLAIMER OF WARRANTIES
Added / Changed
POLONIEX WILL MAKE REASONABLE EFFORTS TO ENSURE THAT TRANSACTIONS ON THE PLATFORM ARE PROCESSED IN A TIMELY FASHION, BUT MAKES NO REPRESENTATIONS OR WARRANTIES WITH RESPECT TO THE AMOUNT OF TIME NEEDED TO PROCESS SUCH TRANSACTIONS. BECAUSE TOKEN TRANSFERS ON AND OFF THE PLATFORM ARE DEPENDENT UPON MANY FACTORS OUTSIDE OF OUR CONTROL INCLUDING DENIAL OF SERVICE ATTACKS AND THE LIQUIDITY OF THE TOKENS TRADED ON OUR PLATFORM, AMONG OTHER FACTORS, POLONIEX MAKES NO REPRESENTATIONS OR WARRANTIES REGARDING THE SUCCESS OF, OR THE AMOUNT OF TIME NEEDED FOR, TOKEN TRANSACTIONS
YOU ALSO ACKNOWLEDGE THAT ANY INFORMATION THAT YOU STORE OR TRANSFER USING THE SERVICES MAY BECOME IRRETRIEVABLY LOST OR CORRUPTED OR TEMPORARILY UNAVAILABLE DUE TO A VARIETY OF CAUSES, INCLUDING SOFTWARE FAILURES, THIRD PARTY PROTOCOL CHANGES, INTERNET OUTAGES, THIRD PARTY DENIAL OF SERVICE ATTACKS, ACTS OF GOD OR UNSCHEDULED MAINTENANCE. YOU ARE ENCOURAGED TO BACK UP AND SAFEGUARD YOUR INFORMATION, INCLUDING LOGIN CREDENTIALS, AT ALL TIMES.
Additionally, you acknowledge that Poloniex does not act or serve as your broker, intermediary, agent, or advisor with respect to any transaction you make or propose to make using the Services and owes you no fiduciary duty.
Corrected spelling
Replaces "cryptocurrency" with "tokens"
Removed
Nothing
21. LIMITATION OF LIABILITY
Added / Changed
Nothing
Removed
Nothing
22. APPLICABLE LAW AND VENUE
In short: Poloniex moved it´s jurisdiction away from New York.
Added / Changed
You agree that any legal or equitable claim arising out of or relating to your use of the Services or these Terms that is not subject to arbitration will be filed only in the state courts of Suffolk County, Massachusetts or the Federal Courts of the District of Massachusetts. You irrevocably and unconditionally consent and submit to the exclusive jurisdiction of such courts over any suit, action, or proceeding arising out of these Terms.
Corrected spelling
Removed
- These Terms and your use of the Services will be governed by and construed in accordance with the laws of New York, without resort to its conflict of law provisions.
23. ARBITRATION (!!!)
Well...
Added
Again, jurisdiction moved away from New York.
To expedite and control the cost of disputes, you and we agree that any legal or equitable claim arising out of or relating to your use of the Services or these Terms, including the formation, validity, enforceability, scope, or applicability of these Terms, including this Section 23 (referred to as a “Claim”) will be resolved as follows:
This means that all claims other than intellectual property lawsuits, such as copyright or trademark infringement lawsuits, or claims seeking non-monetary relief would be subject to binding arbitration. This includes claims which may pre-date this agreement.
Payment of all filing, administration and arbitrator fees will be governed by the AAA’s rules. The prevailing party in any action or proceeding to enforce this agreement shall be entitled to costs and attorneys' fees.
ADDITIONALLY, YOU HEREBY WAIVE YOUR RIGHT TO PARTICIPATE IN A CLASS ACTION LAWSUIT OR CLASS-WIDE ARBITRATION. We each agree that any dispute resolution proceedings will be conducted only on an individual basis and not in a class, consolidated or representative action. If for any reason a claim proceeds in court rather than in arbitration, we each waive any right to a jury trial. If a court or federal regulator with oversight over Poloniex decides that applicable law precludes enforcement of any of this section’s limitations as to a particular claim for relief, then that claim (and only that claim) must be severed from the arbitration and may be brought in court, subject to your and Poloniex's right to appeal the court's decision. All other claims will be arbitrated.
Removed
Nothing
24. SURVIVAL
Added / Changed
- Adjusted section numbers
Removed
Nothing
25. SEVERABILITY; WAIVER
Added
- Any delay or failure by Poloniex to enforce any of its rights shall not constitute a continuing waiver of such rights.
We all know that Poloniex is always slow.
Hereby Poloniex get their self some more time. In case they need it. ;-)
Removed
Nothing
26. INTEGRATION
Added / Changed
Nothing
Removed
Nothing
27. FORCE MAJEURE
Added
- Snow storms!! :)
As we already know Poloniex is now located in Boston. Of course they have to add snow storms to that section now. :)
Removed
Nothing
28. GOVERNING LANGUAGE AND TRANSLATIONS
Added / Changed
- Corrected spelling
Removed
Nothing
29. UNCLAIMED PROPERTY
That´s new!
Added / Changed
- If Poloniex is unable to return your Tokens to a third party Account for you after a period of inactivity, Poloniex may report and remit the Tokens to an applicable government agency pursuant to applicable escheatment or unclaimed property laws.
Don´t forget your tokens in your account.
And don´t forget your password.
Otherwise they can give your tokens to the government. ;)
Removed
Nothing
30. QUESTIONS AND CONTACT INFORMATION
Added / Changed
- Corrected spelling
Removed
- "typically within 24 hours."
Okay. That´s important. Maybe some (or a lot) of you have already experienced that Poloniex does not respond in a timely manner. From now on, Poloniex has as much time as they want to answer!
Conclusion
In summary, the following can be stated:
- Poloniex creates itself more freerooms
- Poloniex cooperates fully with authorities
- Poloniex can, at its own discretion and secretly, decide everything by itself
- Poloniex largely excludes all risks and is not liable.
- Poloniex would like to avoid court riots and rely on arbitration.
No risks. Freedom. High revenue through fees.
Sounds like a good business model. For Poloniex. ;)