# Table of Contents - [Welcome to Main St | Mainstreet.Finance](#welcome-to-main-st-mainstreet-finance) - [Introduction | Mainstreet.Finance](#introduction-mainstreet-finance) - [Team | Mainstreet.Finance](#team-mainstreet-finance) - [Main St Token Ecosystem Overview | Mainstreet.Finance](#main-st-token-ecosystem-overview-mainstreet-finance) - [Trading Strategy Framework | Mainstreet.Finance](#trading-strategy-framework-mainstreet-finance) - [Options Arbitrage | Mainstreet.Finance](#options-arbitrage-mainstreet-finance) - [Minting Pathway | Mainstreet.Finance](#minting-pathway-mainstreet-finance) - [Hedged liquidity pool farming | Mainstreet.Finance](#hedged-liquidity-pool-farming-mainstreet-finance) - [Basis Trading Implementation | Mainstreet.Finance](#basis-trading-implementation-mainstreet-finance) - [Key Features | Mainstreet.Finance](#key-features-mainstreet-finance) - [Permissionless Minting Partners | Mainstreet.Finance](#permissionless-minting-partners-mainstreet-finance) - [Buying msUSD | Mainstreet.Finance](#buying-msusd-mainstreet-finance) - [Market Stability Mechanisms | Mainstreet.Finance](#market-stability-mechanisms-mainstreet-finance) - [Redemption Process | Mainstreet.Finance](#redemption-process-mainstreet-finance) - [Returns Calculation & Distribution | Mainstreet.Finance](#returns-calculation-distribution-mainstreet-finance) - [Protocol Economics | Mainstreet.Finance](#protocol-economics-mainstreet-finance) - [Strategy Backtesting & Validation | Mainstreet.Finance](#strategy-backtesting-validation-mainstreet-finance) - [Staking Model | Mainstreet.Finance](#staking-model-mainstreet-finance) - [Insurance Fund | Mainstreet.Finance](#insurance-fund-mainstreet-finance) - [Risk Factors | Mainstreet.Finance](#risk-factors-mainstreet-finance) - [WatchPug Security Audit 2 | Mainstreet.Finance](#watchpug-security-audit-2-mainstreet-finance) - [WatchPug Security Audit 1 | Mainstreet.Finance](#watchpug-security-audit-1-mainstreet-finance) - [Key Addresses | Mainstreet.Finance](#key-addresses-mainstreet-finance) - [Privacy Policy | Mainstreet.Finance](#privacy-policy-mainstreet-finance) - [General Risk Disclosures | Mainstreet.Finance](#general-risk-disclosures-mainstreet-finance) - [Terms of Service | Mainstreet.Finance](#terms-of-service-mainstreet-finance) - [msUSD and smsUSD Mint User Agreement - Non EEA | Mainstreet.Finance](#msusd-and-smsusd-mint-user-agreement-non-eea-mainstreet-finance) - [msUSD and smsUSD Terms and Conditions - EEA | Mainstreet.Finance](#msusd-and-smsusd-terms-and-conditions-eea-mainstreet-finance) - [msUSD and smsUSD Terms and Conditions - Non EEA | Mainstreet.Finance](#msusd-and-smsusd-terms-and-conditions-non-eea-mainstreet-finance) - [Introduction | Mainstreet.Finance](#introduction-mainstreet-finance) - [Main St Token Ecosystem Overview | Mainstreet.Finance](#main-st-token-ecosystem-overview-mainstreet-finance) - [Key Addresses | Mainstreet.Finance](#key-addresses-mainstreet-finance) - [WatchPug Security Audit 2 | Mainstreet.Finance](#watchpug-security-audit-2-mainstreet-finance) - [Risk Factors | Mainstreet.Finance](#risk-factors-mainstreet-finance) - [General Risk Disclosures | Mainstreet.Finance](#general-risk-disclosures-mainstreet-finance) --- # Welcome to Main St | Mainstreet.Finance Main St delivers institutional-grade delta-neutral yield strategies through a dual-token system — msUSD (the yield-generating token) and smsUSD (the staking token) — with high-yield options trading strategies on Sonic. #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance#core-advantages) **Core Advantages** * **First-Mover Advantage:** Pioneer in options arbitrage strategies for stablecoins, delivering institutional-grade delta-neutral yield previously unavailable in DeFi * **Two-Token Yield System:** Earn yield by staking msUSD to receive smsUSD, which accrues returns from sophisticated options strategies * **Institutional Strategies:** Access sophisticated delta-neutral trading techniques previously reserved for hedge funds * **Chain Flexibility:** Seamlessly bridge between networks using LayerZero technology * **Infrastructure Layer:** Built as a foundation for options volatility strategies across DeFi #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance#getting-started) **Getting Started** 1. **Explore the Documentation**: Learn how our dual-token system works and the strategies that generate yield 2. **Complete KYC**: Register as a verified user to mint or redeem msUSD directly 3. **Obtain msUSD**: Mint with USDC or purchase on supported exchanges 4. **Stake for Yield**: Stake your msUSD to receive smsUSD and begin earning yield ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance#join-the-community) Join the Community * [Twitter](https://x.com/Main_St_Finance) * [Discord](https://discord.gg/CNreNaB78r) Please review the Risk Factors section carefully before participating. The Main St token ecosystem involves risks different from traditional dollar-pegged assets. [NextIntroduction](https://mainstreet-finance.gitbook.io/mainstreet.finance/getting-started/quickstart) Last updated 5 months ago --- # Introduction | Mainstreet.Finance ![](https://mainstreet-finance.gitbook.io/mainstreet.finance/~gitbook/image?url=https%3A%2F%2F2732132553-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FvwA4hjA4e9xA076Qn9YB%252Fuploads%252FRX0qK6ZjDCs9llLPN8VD%252FIntroduction2.png%3Falt%3Dmedia%26token%3D140bf2c5-28bf-4a5a-93da-bf9f52e1b5c0&width=768&dpr=4&quality=100&sign=292397e2&sv=2) Main St revolutionizes yield generation on Sonic by harnessing **delta-neutral options arbitrage** strategies through a sophisticated dual-token system. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/getting-started/quickstart#evolution-of-delta-neutral-dollars) **Evolution of Delta-Neutral Dollars** Delta-neutral trading has traditionally been reserved for institutional investors with sophisticated infrastructure to balance positions across spot and derivatives markets. These strategies capture market upside while hedging downside risk. In March 2023, Arthur Hayes outlined a vision for creating synthetic dollars using crypto collateral and derivatives in his "Dust on Crust" publication. This concept was first successfully implemented at scale by Ethena, which pioneered the basis trade approach to create a yield-bearing synthetic dollar. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/getting-started/quickstart#main-sts-options-first-approach) **Main St's Options-First Approach** Main St builds upon this foundation with a different strategy focus. While Ethena specializes in the basis trade (cash and carry), Main St pioneers options arbitrage as our primary yield engine. This approach captures inefficiencies between implied and realized volatility in options markets, providing a complementary alternative in the delta-neutral ecosystem. Our infrastructure layer for options volatility strategies aims to scale to $500M-$1B with 30%+ APY, establishing Main St as the "savings account for crypto natives." ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/getting-started/quickstart#market-timing-advantage) **Market Timing Advantage** The crypto ecosystem is experiencing what many are calling "DeFi Spring" — a renaissance period with unprecedented innovation across DeFi primitives. Simultaneously, options markets have grown substantially, with Bitcoin options open interest approaching $35 billion — creating an ideal environment for sophisticated options strategies that were previously inaccessible to most participants. This environment creates an ideal window for our token ecosystem: * Capturing significant yield from options market inefficiencies * Establishing early market leadership in options-based yield strategies * Leveraging our quantitative team's sophisticated prediction models * Participating in the growth of one of crypto's largest but underutilized markets * Benefiting from renewed DeFi enthusiasm focused on sustainable yield generation ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/getting-started/quickstart#main-sts-dual-token-system-yield-made-simple) **Main St's Dual-Token System: Yield Made Simple** Main St democratizes institutional-grade options strategies through our dual-token system: * **msUSD**: The base token that maintains a soft dollar peg * **smsUSD**: The staking token that accrues yield when users stake their msUSD This structure delivers hassle-free earnings through a staking mechanism. Sell anytime, move between chains via LayerZero, and deploy in DeFi applications for additional yields. While msUSD maintains a soft dollar peg for convenience, it is not a stablecoin. Its redemption value is tied to the protocol's coverage ratio and insurance fund, with different risk parameters than USDC or USDT. [PreviousWelcome to Main St](https://mainstreet-finance.gitbook.io/mainstreet.finance) [NextTeam](https://mainstreet-finance.gitbook.io/mainstreet.finance/getting-started/team) Last updated 7 months ago --- # Team | Mainstreet.Finance **Jaron Abbott** Former Head of Crypto Quant Research specializing in algorithmic trading. Harvard Mathematics graduate with CQF certification. [**LinkedIn**](https://www.linkedin.com/in/jaronabbott/) **Xin Fan** Quantitative developer with experience in both CeFi and DeFi, develops trading systems using Python, Rust, and Solidity. Master's in Statistics, Michigan State. [**LinkedIn**](https://www.linkedin.com/in/fxocena/) [PreviousIntroduction](https://mainstreet-finance.gitbook.io/mainstreet.finance/getting-started/quickstart) [NextMain St Token Ecosystem Overview](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/main-st-token-ecosystem-overview) Last updated 5 months ago --- # Main St Token Ecosystem Overview | Mainstreet.Finance Main St's flagship token system delivers institutional-grade returns through a sophisticated staking model while maintaining a soft dollar peg for simplified accounting. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/main-st-token-ecosystem-overview#key-features) **Key Features** Main St transforms complex delta-neutral trading into a simple dual-token system where yield is earned through staking: * **msUSD**: The base token that maintains a soft dollar peg * **smsUSD**: The staking token that accrues yield when users stake their msUSD ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/main-st-token-ecosystem-overview#proof-of-reserves-and-transparency) **Proof of Reserves & Transparency** Main St sets a higher standard for stablecoin transparency through continuous, cryptographically verifiable attestation of assets backing msUSD. #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/main-st-token-ecosystem-overview#live-balance-attestation) **Live Balance Attestation** Unlike traditional stablecoins that rely on infrequent, opaque attestation reports, Main St integrates with Deribit's Proof of Reserves (PoR) system to provide: * **Daily Updates:** Real-time visibility into collateral balances with daily cryptographic snapshots * **Verifiable Inclusion:** Independent confirmation of our holdings through Deribit's public PoR data * **Trust-Minimized Verification:** Third-party validation without accessing our internal account data #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/main-st-token-ecosystem-overview#how-verification-works) **How Verification Works** 1. **Deribit Daily Snapshots:** Each day, Deribit publishes cryptographically signed snapshots containing anonymized balance data for all accounts 2. **Main St Proof Publication:** We publish verifiable proofs including digital signatures and proof IDs that can be independently validated 3. **Open-Source Verification:** Anyone can use our public verification tools to confirm our collateral coverage matches our transparency dashboard #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/main-st-token-ecosystem-overview#why-this-matters) **Why This Matters** This framework transforms stablecoin transparency from a marketing promise to a verifiable fact, enabling users to conduct meaningful due diligence on our collateral claims in real-time. **Access Our Transparency Tools:** * Live Collateral Balances: [https://mainstreet.finance/transparency](https://mainstreet.finance/transparency) * Verify Proof of Reserves: [https://mainstreet.finance/transparency/por](https://mainstreet.finance/transparency/por) * GitHub Repository: Open-source verification scripts and tools ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/main-st-token-ecosystem-overview#asset-backing) **Asset Backing** Each msUSD is fully collateralized by a diversified portfolio deployed in sophisticated delta-neutral strategies: * **USDC:** Stablecoin component providing baseline stability * **Large-cap cryptocurrencies:** Primarily Bitcoin (BTC) and Ethereum (ETH), selected for their deep liquidity in both spot and options markets * **Additional assets:** May include other liquid cryptocurrencies with established options markets based on market conditions and strategy optimization The specific allocation between these collateral types will vary based on prevailing market conditions and strategy requirements. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/main-st-token-ecosystem-overview#yield-mechanism) **Yield Mechanism** Returns primarily flow from options arbitrage with supplementary strategies when needed: 1. Options Volatility Arbitrage utilizing sophisticated options trading strategies primarily executed on Deribit 2. Derivatives Yield from perpetual futures positions (utilized when options strategies reach capacity) 3. DeFi Optimization through on-chain liquidity pools (deployed selectively when primary strategies are fully utilized) 4. Yield Distribution through the staking mechanism (smsUSD) ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/main-st-token-ecosystem-overview#access-and-flexibility) **Access & Flexibility** KYC-verified users can mint and redeem msUSD at a rate of 1 USDC to 0.998 msUSD (reflecting the 0.2% fee which covers costs of getting in and out of positions) subject to coverage ratio. After minting, users can stake their msUSD to receive smsUSD and begin earning yield. The LayerZero integration enables seamless cross-chain movement with optimized paths between Sonic and Ethereum. Actual yields fluctuate based on prevailing market funding rates. [PreviousTeam](https://mainstreet-finance.gitbook.io/mainstreet.finance/getting-started/team) [NextTrading Strategy Framework](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/trading-strategy-framework) Last updated 5 months ago --- # Trading Strategy Framework | Mainstreet.Finance Main St implements sophisticated market-neutral strategies that have historically been accessible only to specialized quantitative funds with significant technical infrastructure. Our framework translates these complex approaches into a seamless user experience through msUSD. [PreviousMain St Token Ecosystem Overview](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/main-st-token-ecosystem-overview) [NextOptions Arbitrage](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/trading-strategy-framework/options-arbitrage) Last updated 8 months ago --- # Options Arbitrage | Mainstreet.Finance Main St's primary yield strategy centers on capturing inefficiencies in cryptocurrency options markets through sophisticated volatility prediction models. While the basis trade has become well-known through Ethena's popularization, options arbitrage represents a significant yet undercapitalized opportunity within delta-neutral strategies. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/trading-strategy-framework/options-arbitrage#strategy-mechanics) **Strategy Mechanics** Our options arbitrage approach focuses on the fundamental relationship between two critical volatility metrics, primarily executed on Deribit, the leading cryptocurrency options exchange: 1. **Implied Volatility (IV):** The market's expectation of future volatility priced into options premiums 2. **Realized Volatility (RV):** The actual volatility that occurs over the option's lifetime The core profit formula for our strategy can be expressed as: P&L\=12S2Γ(σ2−σimplied2){\\text{P\\&L}} = \\frac{1}{2} S^2 \\Gamma \\left( \\sigma^2 - \\sigma^2\_{\\text{implied}} \\right)P&L\=21​S2Γ(σ2−σimplied2​) The core profit mechanism differs based on our volatility predictions: **Short Volatility Strategy:** When our models predict RV will be less than IV, we sell straddles (both calls and puts) to collect premium. This generates profit when markets are less volatile than options pricing suggests. **Long Volatility Strategy:** When our models predict RV will exceed IV, we buy straddles to capitalize on underpriced volatility. This generates profit during periods when markets experience greater volatility than expected. Our machine learning models excel at identifying these volatility mispricing opportunities in both directions, allowing the strategy to adapt to changing market conditions rather than relying solely on collecting volatility premium. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/trading-strategy-framework/options-arbitrage#implementation-framework) **Implementation Framework** Our execution follows a systematic process: 1. **Market Analysis:** Our proprietary machine learning models analyze historical volatility patterns and market conditions to predict future realized volatility 2. **Strategy Selection:** We primarily utilize at-the-money straddles (simultaneously buying or selling calls and puts at the same strike price), which begin delta-neutral without requiring immediate hedging 3. **Dynamic Hedging:** As underlying prices move, we implement real-time delta hedging to maintain neutrality, protecting against directional exposure 4. **Risk Management:** Sophisticated monitoring of critical option Greeks (Delta, Gamma, Theta, Vega) ensures portfolio stability and targeted risk parameters ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/trading-strategy-framework/options-arbitrage#market-opportunity) **Market Opportunity** The cryptocurrency options market has grown substantially, with Bitcoin options open interest approaching $35 billion - nearly comparable to futures markets. This deep liquidity allows our strategy to scale significantly while maintaining execution efficiency. Like the basis trade, which generates profit by financing market demand for futures, options markets also exhibit a market premium from structural factors including: 1. **Term Structure Dynamics:** Due to stochastic volatility, the forward curve typically slopes upward, creating sustainable premium harvesting opportunities 2. **Market Inefficiency:** Implied volatility can regularly become disconnected from realized volatility 3. **Systematic Demand:** Institutional investors regularly overpay for downside protection, thus creating persistent options mispricings ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/trading-strategy-framework/options-arbitrage#performance-profile) **Performance Profile** Options arbitrage strategies exhibit a unique performance profile: 1. Higher yield potential than traditional basis trades, especially in volatile market environments 2. Statistical rather than deterministic returns, creating occasional drawdowns offset by larger cumulative gains 3. Performance smoothed through portfolio diversification across multiple expirations and underlying assets Current testing demonstrates annual returns exceeding 35% after all fees, with results continuously optimized through machine learning model refinements. All yield figures based on historical or modeled performance are subject to change based on market conditions. Past performance does not guarantee future results. While options arbitrage forms Main St's core yield engine, we maintain flexibility to incorporate supplementary strategies that enhance portfolio diversification and stability. [PreviousTrading Strategy Framework](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/trading-strategy-framework) [NextStrategy Backtesting & Validation](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/trading-strategy-framework/strategy-backtesting-and-validation) Last updated 6 months ago * [Strategy Mechanics](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/trading-strategy-framework/options-arbitrage#strategy-mechanics) * [Implementation Framework](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/trading-strategy-framework/options-arbitrage#implementation-framework) * [Market Opportunity](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/trading-strategy-framework/options-arbitrage#market-opportunity) * [Performance Profile](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/trading-strategy-framework/options-arbitrage#performance-profile) --- # Minting Pathway | Mainstreet.Finance ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/minting-pathway#compliance-architecture) Compliance Architecture KYC verification serves multiple functions—preventing exploitation, ensuring regulatory alignment, enabling higher redemption limits, and creating reliable arbitrage channels that support msUSD's soft peg. Verified users can mint and redeem msUSD directly at a 1:1 ratio with USDC (subject to coverage ratio), establishing an essential price stabilization mechanism. [PreviousKey Features](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/trading-strategy-framework/key-features) [NextPermissionless Minting Partners](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/permissionless-minting-partners) Last updated 8 months ago --- # Hedged liquidity pool farming | Mainstreet.Finance In specific market conditions, Main St may selectively deploy capital into delta-hedged liquidity pools, particularly when: * Pool incentives create yield opportunities exceeding our core options strategy * Market conditions reduce options volatility premiums * Diversification benefits enhance overall portfolio stability This approach involves providing liquidity to on-chain pools while hedging underlying assets off-chain to neutralize directional exposure. While we believe options arbitrage offers superior risk-adjusted returns currently, maintaining flexibility across multiple delta-neutral approaches enhances our ability to adapt to changing market conditions. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/trading-strategy-framework/hedged-liquidity-pool-farming#strategy-implementation) **Strategy Implementation** Our approach follows this process: 1. **Pool Selection** using multi-factor analysis evaluating volume, security, and incentive sustainability 2. **Optimized Capital Utilization** through strategic redeployment of cash-and-carry collateral to on-chain yield farming, creating multiple yield streams from the same capital base. Allocation percentages adjust based on market conditions, liquidation risk, and asset-specific requirements. 3. **Multi-Layer Yield** from trading fees, liquidity incentives, and strategic positioning 4. **Dynamic Optimization** through continuous calibration of hedge ratios and impermanent loss mitigation The technical implementation requires orchestrating complex interactions between on-chain liquidity provision and off-chain hedging operations—a process that would be prohibitively difficult for individual investors but is automated through Main St's infrastructure. All yield figures based on historical or modeled performance are subject to change based on market conditions. Past performance does not guarantee future results. [PreviousStrategy Backtesting & Validation](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/trading-strategy-framework/strategy-backtesting-and-validation) [NextBasis Trading Implementation](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/trading-strategy-framework/basis-trading-implementation) Last updated 7 months ago --- # Basis Trading Implementation | Mainstreet.Finance The Bitcoin and Eth cash and carry trade provides another complementary yield strategy during periods of strong backwardation in futures markets. While this approach has been widely popularized through protocols like Ethena, it serves as a secondary strategy within Main St's framework. This approach continues to offer value through: * Reliable yield generation during periods of high funding rates * Portfolio diversification to complement our options-focused approach * Established infrastructure for efficient execution ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/trading-strategy-framework/basis-trading-implementation#market-structure-approach) Market Structure Approach Our strategy utilizes persistent market patterns where derivatives pricing creates predictable payment flows: 1. Establishing balanced positions across multiple venues 2. Capturing pricing differentials between related instruments 3. Collecting periodic payments from market mechanisms 1. Establishing balanced positions across multiple venues 2. Capturing pricing differentials between related instruments 3. Collecting periodic payments from market mechanisms This creates a position protected from price volatility while generating yield regardless of market direction. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/trading-strategy-framework/basis-trading-implementation#implementation) **Implementation** The strategy focuses on systematic yield capture from established market structures. By maintaining position neutrality to minimize directional exposure, it delivers returns independent of price movement in the underlying assets. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/trading-strategy-framework/basis-trading-implementation#performance-context) **Performance Context** The strategy typically generates: * Daily yields within expected parameters * Monthly returns that compound over time * Annualized performance that varies with market conditions Sonic's infrastructure enables optimized execution with reduced friction and improved position management. _Performance varies based on market conditions_ ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/trading-strategy-framework/basis-trading-implementation#capital-allocation-techniques) Capital Allocation Techniques Main St employs position management techniques to balance capital efficiency with risk parameters. #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/trading-strategy-framework/basis-trading-implementation#position-types) **Position Types** Our approach utilizes two complementary position structures: **Stablecoin-Denominated Positions** These positions enable performance tracking in dollar terms and flexible deployment across multiple assets. They support efficient capital utilization while allowing adjustment based on evolving market conditions. * Performance tracking in dollar terms * Flexible deployment across multiple assets * Efficient capital utilization * Adaptive positioning based on market conditions **Native-Denominated Positions** This approach features automatic collateral optimization as markets fluctuate and provides inherent protection against sudden price movements. It reduces unnecessary conversion requirements while offering performance advantages in certain market environments. * Automatic collateral optimization * Inherent protection against sudden movements * Reduced conversion requirements * Performance advantages in specific environments ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/trading-strategy-framework/basis-trading-implementation#strategy-management) **Strategy Management** Position management adapts based on market analysis including volatility assessment, yield evaluation, and risk metrics. This approach maintains neutral exposure while seeking returns across different market environments. [PreviousHedged liquidity pool farming](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/trading-strategy-framework/hedged-liquidity-pool-farming) [NextKey Features](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/trading-strategy-framework/key-features) Last updated 7 months ago * [Market Structure Approach](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/trading-strategy-framework/basis-trading-implementation#market-structure-approach) * [Implementation](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/trading-strategy-framework/basis-trading-implementation#implementation) * [Performance Context](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/trading-strategy-framework/basis-trading-implementation#performance-context) * [Capital Allocation Techniques](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/trading-strategy-framework/basis-trading-implementation#capital-allocation-techniques) * [Strategy Management](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/trading-strategy-framework/basis-trading-implementation#strategy-management) --- # Key Features | Mainstreet.Finance ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/trading-strategy-framework/key-features#delta-neutral-architecture) Delta-Neutral Architecture Main St employs sophisticated hedging techniques that shield msUSD from crypto market volatility. Our options-based strategies maintain dollar-value stability through carefully balanced exposures and continuous risk management. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/trading-strategy-framework/key-features#options-arbitrage-mechanics) **Options Arbitrage Mechanics** Our primary strategy utilizes volatility arbitrage principles to generate yield: **During Volatility Spikes:** When market volatility increases, our dynamic hedging protocols automatically adjust position exposure. For example, if BTC's price rapidly moves from $90,000 to $80,000, our system rebalances delta exposure by selling BTC to offset the increased positive delta from our short put options in a short straddle position, or by adjusting hedges for long straddle positions to maintain market neutrality despite price movements. **During Volatility Compression:** When markets calm after pricing in high volatility, our short straddle positions capture the premium difference. For instance, if the market priced in 80% implied volatility but realized only 60%, our short options positions generate profit from both time decay and volatility convergence. **During Volatility Expansion:** When our models predict realized volatility will exceed implied volatility, we can utilize long straddle positions that benefit when actual market movements exceed expectations, capturing profit from increasing option values. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/trading-strategy-framework/key-features#strategy-diversification) **Strategy Diversification** Main St continuously optimizes capital allocation across multiple volatility-based strategies: * **Directional Straddles:** Core positions that can be either long or short based on volatility forecasts * **Term Structure Trades:** Exploiting differences between short and long-dated option implied volatilities * **Cross-Asset Volatility Spreads:** Identifying relative value opportunities between BTC and ETH volatility markets * **Supplementary Basis Trades:** Deployed when options markets offer suboptimal yields ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/trading-strategy-framework/key-features#market-neutral-protection) **Market-Neutral Protection** Our positions maintain stability across even extreme market scenarios: **During Market Surges:** When BTC experiences significant upward price movements, our delta hedging automatically adjusts to offset directional exposure, preserving dollar-value stability regardless of magnitude. **During Market Crashes:** When BTC undergoes sharp corrections, our balanced position management ensures downside protection while maintaining the target coverage ratio for msUSD holders. [PreviousBasis Trading Implementation](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/trading-strategy-framework/basis-trading-implementation) [NextMinting Pathway](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/minting-pathway) Last updated 7 months ago * [Delta-Neutral Architecture](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/trading-strategy-framework/key-features#delta-neutral-architecture) * [Options Arbitrage Mechanics](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/trading-strategy-framework/key-features#options-arbitrage-mechanics) * [Strategy Diversification](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/trading-strategy-framework/key-features#strategy-diversification) * [Market-Neutral Protection](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/trading-strategy-framework/key-features#market-neutral-protection) --- # Permissionless Minting Partners | Mainstreet.Finance Main St enables broader access to msUSD through strategic partnerships with KYC-compliant protocols. This approach maintains regulatory compliance while expanding distribution and accessibility across the DeFi ecosystem. * 10% of all Season 1 points are allocated to partner protocols that enable permissionless minting of msUSD * Points are divided proportionally based on the volume each partner protocol generates * Anyone can participate by spinning up a front end, passing KYC with their protocol details * We will whitelist contracts for protocols that successfully complete KYC verification * This structure ensures regulatory compliance by offsetting risk to KYC'd partners **Current Partners:** * Brunch * Stability [PreviousMinting Pathway](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/minting-pathway) [NextBuying msUSD](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/buying-msusd) Last updated 6 months ago --- # Buying msUSD | Mainstreet.Finance ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/buying-msusd#quick-access-guide) **Quick Access Guide** The Main St token ecosystem is accessible on Sonic blockchain through ShadowDEX and will be integrated with the broader Sonic ecosystem starting June 3rd, 2025. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/buying-msusd#direct-access-path) **Direct Access Path** 1. **Complete KYC Verification** * Visit the Main St platform * Complete the verification process * Once approved, you can mint and redeem directly 2. **Mint msUSD** * Connect your verified wallet * Deposit USDC to mint msUSD at a 1:0.998 ratio 3. **Stake for Yield** * Stake your msUSD to receive smsUSD * Your smsUSD balance will reflect your earned yield ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/buying-msusd#secondary-market-access) **Secondary Market Access** msUSD is also available for purchase on various exchanges and platforms within the Sonic ecosystem: 1. **Purchase on ShadowDEX** * Visit [ShadowDEX](https://www.shadowdex.fi/) * Connect your wallet * Swap USDC or another trading pair for msUSD 2. **Ensure You Have Sonic Funds** * You'll need SONIC (native token) for gas fees * You'll need USDC or another trading pair available on ShadowDEX ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/buying-msusd#trading-pairs) **Trading Pairs** Main St's token is available in the following trading pairs on ShadowDEX: * msUSD/USDC - Primary trading pair ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/buying-msusd#after-acquisition) **After Acquisition** Once you hold msUSD: * Stake your msUSD to receive smsUSD and begin earning yield * Track your yield accrual through the Main St dashboard For users seeking additional yield opportunities, msUSD can be deployed in various DeFi protocols across the Sonic ecosystem starting June 3rd. _For any assistance, please join our Discord community or contact support@mainstreet.finance_ [PreviousPermissionless Minting Partners](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/permissionless-minting-partners) [NextRedemption Process](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/redemption-process) Last updated 7 months ago * [Quick Access Guide](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/buying-msusd#quick-access-guide) * [Direct Access Path](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/buying-msusd#direct-access-path) * [Secondary Market Access](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/buying-msusd#secondary-market-access) * [Trading Pairs](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/buying-msusd#trading-pairs) * [After Acquisition](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/buying-msusd#after-acquisition) --- # Market Stability Mechanisms | Mainstreet.Finance Main St implements a market-driven stability mechanism for msUSD's soft peg through natural arbitrage incentives rather than algorithmic controls or forced liquidations. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/market-stability-mechanisms#self-correcting-arbitrage-engine) Self-Correcting Arbitrage Engine KYC-verified participants act as stability agents, capturing profit opportunities when msUSD deviates from its 1:1 target with USDC. This creates a self-correcting mechanism that naturally maintains price parity. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/market-stability-mechanisms#peg-defense-scenarios) Peg Defense Scenarios When msUSD falls below $1: 1. Arbitrageurs buy discounted msUSD from markets 2. Redeem with protocol at full value 3. Profit from the differential This buying pressure increases demand in secondary markets, driving the price back toward $1. When msUSD rises above $1: 1. Arbitrageurs mint msUSD at standard rate 2. Sell at premium in secondary markets 3. Profit from the differential This selling pressure increases supply, bringing price back toward the target. [PreviousRedemption Process](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/redemption-process) [NextProtocol Economics](https://mainstreet-finance.gitbook.io/mainstreet.finance/protocol-economics-1) Last updated 7 months ago * [Self-Correcting Arbitrage Engine](https://mainstreet-finance.gitbook.io/mainstreet.finance/market-stability-mechanisms#self-correcting-arbitrage-engine) * [Peg Defense Scenarios](https://mainstreet-finance.gitbook.io/mainstreet.finance/market-stability-mechanisms#peg-defense-scenarios) --- # Redemption Process | Mainstreet.Finance ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/redemption-process#strategic-redemption) Strategic Redemption The redemption system balances user needs with protocol stability through dynamic capacity management. Concurrent redemptions are generally limited to approximately 30% of total supply to prevent disruptive position unwinding and maintain optimal strategy positioning. This capacity limit is subject to adjustment based on several factors including total Assets Under Management (AUM), current market liquidity conditions, strategy deployment levels, and overall market volatility. When initiating redemption, users deposit msUSD to start a sophisticated process including position unwinding, asset conversion, and cross-chain transfer. After a 7-day cooldown period—essential for responsible position management—users receive USDC based on the current coverage ratio. The protocol reserves the right to temporarily modify redemption parameters during exceptional market circumstances to preserve overall system stability and protect all users' interests. Any such modifications will be clearly communicated through official channels. For immediate liquidity needs, secondary market trading offers faster execution than the redemption process. [PreviousBuying msUSD](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/buying-msusd) [NextMarket Stability Mechanisms](https://mainstreet-finance.gitbook.io/mainstreet.finance/market-stability-mechanisms) Last updated 7 months ago --- # Returns Calculation & Distribution | Mainstreet.Finance Understanding how yields are calculated and distributed through the msUSD/smsUSD staking system. #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/returns-calculation-and-distribution#yield-calculation-process) **Yield Calculation Process** 1. **Strategy Performance Measurement:** Daily assessment of options arbitrage and delta-neutral strategy returns 2. **Fee Deduction:** Protocol fees (10% to insurance fund, 15% to treasury) are deducted from gross yields 3. **Net Yield Distribution:** Remaining 75% of yields flow to smsUSD holders through exchange rate appreciation #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/returns-calculation-and-distribution#distribution-mechanism) **Distribution Mechanism** * **Exchange Rate Updates:** The msUSD to smsUSD exchange rate updates continuously as yields accrue * **Automatic Compounding:** Yields compound automatically without requiring user action * **No Manual Claims:** Users benefit from yield simply by holding smsUSD tokens #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/returns-calculation-and-distribution#distribution-timing) **Distribution Timing** * **Strategy Execution:** Yield generation occurs continuously through active trading * **Rate Updates:** Exchange rates reflect accumulated yield on an ongoing basis * **Performance Assessment:** Monthly performance reviews ensure consistent yield delivery #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/returns-calculation-and-distribution#yield-transparency) **Yield Transparency** Users can track yield performance through: * Real-time exchange rate monitoring on our dashboard * Historical performance data and analytics * Monthly performance reports * Live strategy performance metrics #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/returns-calculation-and-distribution#risk-considerations) **Risk Considerations** Yields are variable and depend on: * Options market conditions and volatility levels * Strategy capacity and scaling effects * Market liquidity and execution efficiency * Overall crypto market dynamics Historical performance does not guarantee future results. All yield projections are estimates based on backtesting and current market conditions. [PreviousStaking Model](https://mainstreet-finance.gitbook.io/mainstreet.finance/staking-model) [NextRisk Factors](https://mainstreet-finance.gitbook.io/mainstreet.finance/risk-factors/risk-factors) Last updated 5 months ago --- # Protocol Economics | Mainstreet.Finance Main St's tokenomic structure balances user rewards with protocol sustainability on Sonic. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/protocol-economics-1#revenue-distribution) **Revenue Distribution** Yield flows through our staking system: * 75% to smsUSD Holders via the staking mechanism * 10% to Insurance Fund for protocol resilience * 15% to treasury In circumstances where funding rates or yields significantly exceed competitive market rates, the protocol may retain a portion of yield from distribution. These retained yields may be allocated to multiple purposes including protocol operations, supplementing the insurance fund, and stabilizing returns during periods of lower market funding rates or yields. This mechanism helps ensure sustainable long-term performance. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/protocol-economics-1#token-architecture) Token Architecture * **msUSD** - A dollar-pegged token that serves as the base asset in our ecosystem. Each token is backed by delta-neutral positions ensuring stability regardless of market direction. * **smsUSD** - The staking token received when users stake msUSD, allowing them to earn yield from our delta-neutral strategies. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/protocol-economics-1#protection-and-governance) Protection & Governance The Insurance Fund receives 10% of generated yield, serving as defense during market disruptions and ensuring 1:1 redemptions during temporary shortfalls. [PreviousMarket Stability Mechanisms](https://mainstreet-finance.gitbook.io/mainstreet.finance/market-stability-mechanisms) [NextStaking Model](https://mainstreet-finance.gitbook.io/mainstreet.finance/staking-model) Last updated 7 months ago * [Revenue Distribution](https://mainstreet-finance.gitbook.io/mainstreet.finance/protocol-economics-1#revenue-distribution) * [Token Architecture](https://mainstreet-finance.gitbook.io/mainstreet.finance/protocol-economics-1#token-architecture) * [Protection & Governance](https://mainstreet-finance.gitbook.io/mainstreet.finance/protocol-economics-1#protection-and-governance) --- # Strategy Backtesting & Validation | Mainstreet.Finance Our options arbitrage strategies undergo rigorous backtesting using historical market data to validate performance assumptions and risk parameters before live deployment. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/trading-strategy-framework/strategy-backtesting-and-validation#backtesting-methodology) **Backtesting Methodology** * **Historical Data Coverage:** Multi-year datasets spanning various market conditions including bull markets, bear markets, and high volatility periods * **Transaction Cost Inclusion:** All backtests incorporate realistic trading costs, slippage, and execution delays * **Risk-Adjusted Analysis:** Performance metrics include Sharpe ratios, Sortino ratios, maximum drawdown, and volatility measurements * **Stress Testing:** Models tested against extreme market scenarios and black swan events ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/trading-strategy-framework/strategy-backtesting-and-validation#latest-performance-metrics-may-2024-may-2025) **Latest Performance Metrics (May 2024 - May 2025)** Our most recent backtesting demonstrates: * **Sharpe Ratio:** 2.96 - indicating strong risk-adjusted returns * **Sortino Ratio:** 3.73 - demonstrating excellent downside risk management * **Maximum Drawdown:** -3.25% - well within conservative risk parameters * **Consistent Monthly Performance:** Positive returns in all 13 months tested ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/trading-strategy-framework/strategy-backtesting-and-validation#monthly-returns-breakdown) **Monthly Returns Breakdown** Month Return % May 2024 4.7% Jun 2024 3.5% Jul 2024 1.3% Aug 2024 0.4% Sep 2024 0.8% Oct 2024 1.8% Nov 2024 2.7% Dec 2024 0.2% Jan 2025 1.4% Feb 2025 3.2% Mar 2025 3.1% Apr 2025 1.1% May 2025 0.9% ![](https://mainstreet-finance.gitbook.io/mainstreet.finance/~gitbook/image?url=https%3A%2F%2F2732132553-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FvwA4hjA4e9xA076Qn9YB%252Fuploads%252Fn0tawdIhKcOtWJqqVcws%252Fimage.png%3Falt%3Dmedia%26token%3Da0d81aef-d10c-4597-a57a-c16cb54dea80&width=768&dpr=4&quality=100&sign=24e93376&sv=2) ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/trading-strategy-framework/strategy-backtesting-and-validation#key-validation-results) **Key Validation Results** * **Consistency:** 13 consecutive months of positive returns * **Risk Management:** Maximum drawdown never exceeded 4% * **Strategy Robustness:** Strong performance across varying market conditions * **Scalability:** Results remain consistent as strategy capacity increases ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/trading-strategy-framework/strategy-backtesting-and-validation#continuous-model-refinement) **Continuous Model Refinement** Machine learning models are continuously updated and backtested against new data to ensure: * Adaptation to evolving market conditions * Maintenance of predictive accuracy * Risk parameter optimization * Strategy capacity assessment as we scale All backtesting results and methodologies are subject to regular review and validation by our quantitative research team. [PreviousOptions Arbitrage](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/trading-strategy-framework/options-arbitrage) [NextHedged liquidity pool farming](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/trading-strategy-framework/hedged-liquidity-pool-farming) Last updated 5 months ago * [Backtesting Methodology](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/trading-strategy-framework/strategy-backtesting-and-validation#backtesting-methodology) * [Latest Performance Metrics (May 2024 - May 2025)](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/trading-strategy-framework/strategy-backtesting-and-validation#latest-performance-metrics-may-2024-may-2025) * [Monthly Returns Breakdown](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/trading-strategy-framework/strategy-backtesting-and-validation#monthly-returns-breakdown) * [Key Validation Results](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/trading-strategy-framework/strategy-backtesting-and-validation#key-validation-results) * [Continuous Model Refinement](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/trading-strategy-framework/strategy-backtesting-and-validation#continuous-model-refinement) --- # Staking Model | Mainstreet.Finance Main St has implemented a sophisticated staking model that balances capital efficiency, user experience, and regulatory compliance. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/staking-model#core-token-structure) **Core Token Structure** **msUSD (Main St USD)** * The base token that maintains a soft dollar peg * Serves as the entry point for users * Can be minted directly with USDC at a 1:0.998 ratio by KYC-verified users **smsUSD (Staked Main St USD)** * Received when users stake msUSD * Automatically accrues yield from delta-neutral strategies * Represents a claim on the underlying msUSD plus accumulated yield ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/staking-model#how-staking-works) **How Staking Works** 1. **Deposit Process** * Users deposit msUSD into the staking contract * They receive smsUSD representing their share of the yield-generating pool * The exchange rate between msUSD and smsUSD continuously updates as yield accrues 2. **Yield Accrual** * As the protocol generates yield from options strategies, the value of smsUSD increases relative to msUSD * This increasing exchange rate represents the yield earned by stakers * No manual claiming or harvesting required 3. **Unstaking Process** * Users can unstake at any time by converting smsUSD back to msUSD * The amount of msUSD received reflects the original deposit plus accumulated yield ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/staking-model#market-access) **Market Access** msUSD can be acquired through: * Direct minting by KYC-verified users * Purchase on decentralized exchanges like ShadowDEX * Integrated partner platforms within the Sonic ecosystem ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/staking-model#benefits-of-the-staking-model) **Benefits of the Staking Model** * **Enhanced Efficiency:** Optimizes capital utilization by deploying assets strategically * **Capital Concentration:** Maintains unified liquidity in a single token ecosystem * **Compliance-Friendly:** Designed with regulatory considerations in mind * **Scalable Architecture:** Supports growth to $500M-$1B with 30%+ APY * **Ecosystem Integration:** Forms an infrastructure layer for options volatility strategies The staking model represents Main St's commitment to creating a sustainable "savings account for crypto natives" while maintaining the highest standards of security and compliance. [PreviousProtocol Economics](https://mainstreet-finance.gitbook.io/mainstreet.finance/protocol-economics-1) [NextReturns Calculation & Distribution](https://mainstreet-finance.gitbook.io/mainstreet.finance/returns-calculation-and-distribution) Last updated 6 months ago * [Core Token Structure](https://mainstreet-finance.gitbook.io/mainstreet.finance/staking-model#core-token-structure) * [How Staking Works](https://mainstreet-finance.gitbook.io/mainstreet.finance/staking-model#how-staking-works) * [Market Access](https://mainstreet-finance.gitbook.io/mainstreet.finance/staking-model#market-access) * [Benefits of the Staking Model](https://mainstreet-finance.gitbook.io/mainstreet.finance/staking-model#benefits-of-the-staking-model) --- # Insurance Fund | Mainstreet.Finance ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/risk-factors/insurance-fund#coverage-protection) Coverage Protection The coverage ratio (Backing Assets + Insurance Fund ÷ Total msUSD Issued) transparently measures the protocol's ability to honor redemptions: * Coverage ≥100%: Full redemption value * Coverage <100%: Proportional redemption The Insurance Fund receives 10% of every rebase yield, creating a growing reserve designed to absorb temporary shortfalls during market disruptions or unexpected hedge performance issues. This fund maintains 1:1 redemptions during adverse conditions until exhausted, providing an important buffer against strategy volatility. A 0.2% fee on mint and redeems sustains protocol operations while remaining competitive for arbitrage. Mint and redeem fees are zero until $100m TVL. [PreviousRisk Factors](https://mainstreet-finance.gitbook.io/mainstreet.finance/risk-factors/risk-factors) [NextKey Addresses](https://mainstreet-finance.gitbook.io/mainstreet.finance/technical/key-addresses) Last updated 8 months ago --- # Risk Factors | Mainstreet.Finance msUSD is not a stablecoin but a yield-generating rebasing token with a soft dollar peg, creating a fundamentally different risk profile than USDC or USDT. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/risk-factors/risk-factors#key-distinctions) Key Distinctions Traditional stablecoins maintain their peg through fiat reserves. In contrast, msUSD's value derives from sophisticated delta-neutral trading strategies, with redemption value dependent on the current coverage ratio. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/risk-factors/risk-factors#primary-risk-categories) Primary Risk Categories **Options Strategy Risks** * **Volatility Risk:** Mispricing between realized and implied volatility can create losses - unexpected volatility spikes can impact short positions, while lower-than-predicted volatility can affect long positions * **Delta Hedging Costs:** Extreme market conditions may increase the costs of maintaining delta neutrality * **Liquidity Risk:** Options market depth limitations could impact strategy execution during high volatility periods * **Model Risk:** Machine learning volatility prediction models may experience periods of reduced forecasting accuracy * **Options Market Disruptions:** Temporary dislocations in options pricing may occur during extreme market events **Market Structure Risks** * **USDT Depegging:** Could impact positions or collateral denominated in USDT * **Basis Risk:** Potential for spot and derivatives markets to diverge unexpectedly * **Term Structure Shifts:** Rapid changes in volatility term structure could impact options positions **Custodial & Exchange** * **Operational Dependence:** Reliance on institutional custodians and options exchanges * **Counterparty Risk:** Mitigated through exchange selection and position diversification * **Planned Diversification:** Strategy implementation across multiple venues to minimize venue-specific risks **Technical & Operational** * **Smart Contract Vulnerabilities:** Potential risks in contract implementation * **Cross-Chain Risks:** Issues that may occur during bridging operations **Execution Systems:** Temporary failures in automated hedging or execution systems [PreviousReturns Calculation & Distribution](https://mainstreet-finance.gitbook.io/mainstreet.finance/returns-calculation-and-distribution) [NextInsurance Fund](https://mainstreet-finance.gitbook.io/mainstreet.finance/risk-factors/insurance-fund) Last updated 7 months ago * [Key Distinctions](https://mainstreet-finance.gitbook.io/mainstreet.finance/risk-factors/risk-factors#key-distinctions) * [Primary Risk Categories](https://mainstreet-finance.gitbook.io/mainstreet.finance/risk-factors/risk-factors#primary-risk-categories) --- # WatchPug Security Audit 2 | Mainstreet.Finance 125KB [Mainstreet\_StakedmsUSD\_&\_msYBridger\_Audit\_Report\_by\_WatchPug\_rev.pdf](https://2732132553-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FvwA4hjA4e9xA076Qn9YB%2Fuploads%2FAoUP6TpSuS16U2PKmdlp%2FMainstreet_StakedmsUSD_%26_msYBridger_Audit_Report_by_WatchPug_rev.pdf?alt=media&token=80d2fb15-44c3-42a2-9f4b-51494cb38085) PDF Download[Open](https://2732132553-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FvwA4hjA4e9xA076Qn9YB%2Fuploads%2FAoUP6TpSuS16U2PKmdlp%2FMainstreet_StakedmsUSD_%26_msYBridger_Audit_Report_by_WatchPug_rev.pdf?alt=media&token=80d2fb15-44c3-42a2-9f4b-51494cb38085) [PreviousKey Addresses](https://mainstreet-finance.gitbook.io/mainstreet.finance/technical/key-addresses) [NextWatchPug Security Audit 1](https://mainstreet-finance.gitbook.io/mainstreet.finance/audits/watchpug-security-audit-1) Last updated 1 day ago --- # WatchPug Security Audit 1 | Mainstreet.Finance **Completed:** July 18, 2025 **Auditor:** WatchPug **Scope:** Mainstreet v2 smart contract system **Key Findings:** * **Total Issues:** 11 (1 Medium, 4 Low, 6 Informational/Code Quality) * **Issues Resolved:** 4 fixed, 7 acknowledged * **No Critical or High Severity Issues Found** **Notable Improvements Implemented:** * Enhanced gas optimization for redemption processing * Improved code quality and removed unused variables * Strengthened access control mechanisms **Acknowledged Findings:** The audit identified primarily low-severity issues. Where fixes were not implemented, the team has acknowledged the findings and determined they do not materially impact protocol security or user experience. #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/audits/watchpug-security-audit-1#audit-resources) **Audit Resources** 154KB [Mainstreet\_v2\_Audit\_Report\_by\_WatchPug.pdf](https://2732132553-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FvwA4hjA4e9xA076Qn9YB%2Fuploads%2FAj3iL1Prv4DjvzSyYQc0%2FMainstreet_v2_Audit_Report_by_WatchPug.pdf?alt=media&token=4ce39d31-7c3a-41b5-9ac1-bd6986c2a25a) PDF Download[Open](https://2732132553-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FvwA4hjA4e9xA076Qn9YB%2Fuploads%2FAj3iL1Prv4DjvzSyYQc0%2FMainstreet_v2_Audit_Report_by_WatchPug.pdf?alt=media&token=4ce39d31-7c3a-41b5-9ac1-bd6986c2a25a) * [Audited Codebase](https://github.com/Mainstreet-Labs/mainstreet-core/commit/65af88a4bca55696cf5cb052363c5f91b9a6b0a5) #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/audits/watchpug-security-audit-1#ongoing-security-measures) **Ongoing Security Measures** * Continuous code reviews and testing * Bug bounty program (coming soon) * Regular security assessments with each major update All smart contracts are thoroughly tested and audited before deployment. While audits significantly reduce risk, users should always understand that DeFi protocols carry inherent risks. [PreviousWatchPug Security Audit 2](https://mainstreet-finance.gitbook.io/mainstreet.finance/audits/watchpug-security-audit-2) [NextGeneral Risk Disclosures](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/general-risk-disclosures) Last updated 1 day ago --- # Key Addresses | Mainstreet.Finance ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/technical/key-addresses#core-contracts) Core contracts #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/technical/key-addresses#ethereum) **Ethereum**: **msUSDV2:** 0x4ba01f22827018b4772CD326C7627FB4956A7C00 **Minter:** 0x70C0c12fBb3acFFf8E48aBf027436971cF2Ade14 **msY:** 0x890A5122Aa1dA30fEC4286DE7904Ff808F0bd74A **msYBridger:** 0x22eB4e61FE4D4e31113979e8b1F4377D46bc98F2 **msUSDSilo:** 0x6f188821283923953121f35d74E69a5e73EA6871 **FeeSilo:** 0x6665efDe9f1916a9e16f7f955375ecD392b98B81 **CustodianManager:** 0x4cC94169605069DDf82C815493Cf6048f1935D0A **USDC oracle:** 0x098e47096856eb292D8B2D379b74E987E23CD2Af **Custody multisig:** 0x6580ADAcC5dD7328EaBde0d7aF257535C08DCCc4 **DAO Multisig**: 0x0eAe4ACb10f3e5696cF6B0de33693eF8EC571858 **Insurance Fund:** 0x0eAe4ACb10f3e5696cF6B0de33693eF8EC571858 ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/technical/key-addresses#legacy-contracts) Legacy Contracts **msUSDV2 Token Contract:** 0xE5Fb2Ed6832deF99ddE57C0b9d9A56537C89121D **smsUSD Token Contract:** 0xc7990369DA608C2F4903715E3bD22f2970536C29 **msUSDSilo Token Contract:** 0xecC73952d38E98D37Cb0151615dFDB73af65FF6c **Mint and Redeem Contract:** 0xb1E423c251E989bd4e49228eF55aC4747D63F54D **Custodian Manager:** 0x57A4082E43DeD720e93838d34C0a6acd43AdA7e0 **Whitelist Manager:** 0x55cd9907b8A5e6E678a479C9eedcD7583dc81238 ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/technical/key-addresses#cross-chain-deployments) Cross-Chain Deployments msUSD is deployed across multiple chains via LayerZero's OFT standard. Token addresses on connected chains will be published here as they become available. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/technical/key-addresses#multisig-wallets) Multisig Wallets 0x861a58d3DE287196c5546d10c7afFa479E0963e4 ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/technical/key-addresses#liquidity-pools) Liquidity Pools Official liquidity pool addresses will be listed here as they are established. [PreviousInsurance Fund](https://mainstreet-finance.gitbook.io/mainstreet.finance/risk-factors/insurance-fund) [NextWatchPug Security Audit 2](https://mainstreet-finance.gitbook.io/mainstreet.finance/audits/watchpug-security-audit-2) Last updated 6 days ago * [Core contracts](https://mainstreet-finance.gitbook.io/mainstreet.finance/technical/key-addresses#core-contracts) * [Legacy Contracts](https://mainstreet-finance.gitbook.io/mainstreet.finance/technical/key-addresses#legacy-contracts) * [Cross-Chain Deployments](https://mainstreet-finance.gitbook.io/mainstreet.finance/technical/key-addresses#cross-chain-deployments) * [Multisig Wallets](https://mainstreet-finance.gitbook.io/mainstreet.finance/technical/key-addresses#multisig-wallets) * [Liquidity Pools](https://mainstreet-finance.gitbook.io/mainstreet.finance/technical/key-addresses#liquidity-pools) --- # Privacy Policy | Mainstreet.Finance Last Revised on June 11th, 2025 This Privacy Policy for Main St Finance Ltd (collectively, "Company", "we", "us" "our") describes how we collect, use and disclose information about users of the Company's website (mainstreet.finance, the "Site"), and any related services, tools and features, including the Main St Finance service (collectively, the "Services"). For the purposes of this Privacy Policy, "you" and "your" means you as the user of the Services. Please read this Privacy Policy carefully. By using, accessing, or downloading any of the Services, you agree to the collection, use, and disclosure of your information as described in this Privacy Policy. If you do not agree to this Privacy Policy, please do not use, access or download any of the Services. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/privacy-policy#updating-this-privacy-policy) **UPDATING THIS PRIVACY POLICY** We may modify this Privacy Policy from time to time in which case we will update the "Last Revised" date at the top of this Privacy Policy. If we make material changes to the way in which we use information we collect, we will use reasonable efforts to notify you (such as by emailing you at the last email address you provided us, by posting notice of such changes on the Site, or by other means consistent with applicable law) and will take additional steps as required by applicable law. If you do not agree to any updates to this Privacy Policy please do not access or continue to use the Services. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/privacy-policy#companys-collection-and-use-of-information) **COMPANY'S COLLECTION AND USE OF INFORMATION** When you access or use the Services, we may collect (directly or through third-party providers) certain categories of information about you from a variety of sources, which comprises: * Information provided during "Know Your Customer" ("KYC") and Anti-Money Laundering ("AML") processes, which includes personal identifying information. This may include: * Basic Information: Name, Address, Date of Birth, Nationality, Country of Residence, Phone Number, Email Address. * Identification Information: Utility bills (or other proof of address), photographs, Government-issued identification (such as identification cards, passports, driver's licenses, etc.), tax ID number, employment information, proof of residency, visa information, organizational documents, and information regarding ultimate beneficial owners. * Financial Information: Income/net assets/wealth verification statements. We process the data provided and collected to provide the Services, personalize your experience with the Services, and improve the Services. Specifically, we use your data to: * identify you as a user in our system; * identify your place of residence, or registered office; * provide you with our Service; * improve the administration of our Service and quality of experience when you interact with our Service; * manage and process staking transactions, including the exchange of msUSD for smsUSD, and calculate and distribute yield accrued through the staking mechanism; * provide customer support and respond to your requests and inquiries; * improve our trading models and strategies, including options arbitrage algorithms and machine learning systems; * investigate and address conduct that may violate our Terms of Use; * detect, prevent, and address fraud, violations of our terms or policies, and/or other harmful or unlawful activity; * send you administrative notifications, such as security, support, and maintenance advisories; * send you newsletters, promotional materials, and other notices related to our Services or third parties' goods and services; * respond to your inquiries related to employment opportunities or other requests; * comply with applicable laws, cooperate with investigations by law enforcement or other authorities of suspected violations of law, and/or to pursue or defend against legal threats and/or claims; and * act in any other way we may describe when you provide the Personal Data. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/privacy-policy#how-the-company-shares-your-information) **HOW THE COMPANY SHARES YOUR INFORMATION** In certain circumstances, the Company may share your information with third parties for legitimate purposes subject to this Privacy Policy. Such circumstances comprise of: * Blockchain analysis service providers, including TRM (TRM is a member of the EU-U.S. Data Privacy Framework as set forth by the U.S. Department of Commerce.) * Data analytics vendors, including Google Analytics * To comply with applicable law or any obligations thereunder, including cooperation with law enforcement, judicial orders, and regulatory inquiries * In connection with an asset sale, merger, bankruptcy, or other business transaction * To enforce any applicable terms of service * To ensure the safety and security of the Company and/or its users * With any parent companies, subsidiaries, joint ventures, or other companies under common control with us, in which case we will require such entities to honor this Privacy Policy * In connection with or during negotiation of any merger, financing, acquisition, or dissolution transaction or proceeding involving sale, transfer, divestiture, or disclosure of all or a portion of our business or assets. In the event of an insolvency, bankruptcy, or receivership, data may also be transferred as a business asset. If another company acquires our company, business, or assets, that company will possess the data collected by us and will assume the rights and obligations regarding your data as described in this Privacy Policy. * When you request us to share certain information with third parties, such as through your use of login integrations * With professional advisors, such as auditors, law firms, accounting firms, or KYC service providers * With related companies to provide the Services * With authorized Partner Protocols that facilitate permissionless access to our Services, including minting and staking functionality. We may share limited technical data necessary for these protocols to provide their services, but we do not share personal identifying information with Partner Protocols. Any personal data you provide directly to Partner Protocols is governed by their respective privacy policies, and we are not responsible for their data handling practices. * With authorized third-party Partner Protocols for the limited purpose of facilitating technical integrations, though we do not share personal identifying information with such partners ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/privacy-policy#legal-basis-under-gdpr) **LEGAL BASIS UNDER GDPR** The legal bases for the processing of personal data of natural persons in the European Economic Area (EEA) are detailed in the General Data Protection Regulation (GDPR). The legal bases for processing your personal data are: * In the case of the initiation of a contract or an ongoing contractual relationship (in particular for the purpose of the fulfillment of Your contract with Company), the legal basis follows from Art. 6 (1) lit. b GDPR; * We are obliged by law to process Your data, e.g. by Financial Regulations, Anti Money Laundering Laws, Tax Laws etc; the legal basis for such processing is Art. 6 (1) lit. c GDPR; * Our legitimate interests under Art. 6 (1) lit. f GDPR; our legitimate interests are e.g. to safeguard the security and stability of our Services; to monitor the use of our Services in order to comply with all applicable laws; to detect, prevent, and address fraud, violations of our terms or policies, and/or other harmful or unlawful activity; to improve our Services; and for certain limited promotional purposes. * If You have given Your consent to process Your data, the legal basis is Art. 6 (1) lit. a GDPR. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/privacy-policy#cookies-and-other-tracking-technologies) **COOKIES AND OTHER TRACKING TECHNOLOGIES** Do Not Track Signals: Your browser settings may allow you to transmit a "Do Not Track" signal when you visit various websites. Like many websites, our website is not designed to respond to "Do Not Track" signals received from browsers. To learn more about "Do Not Track" signals, you can visit [http://www.allaboutdnt.com/](http://www.allaboutdnt.com/) . Cookies and Other Tracking Technologies: Most browsers accept cookies automatically, but you may be able to control the way in which your devices permit the use of cookies, web beacons/clear gifs, other geolocation tracking technologies. If you so choose, you may block or delete our cookies from your browser; however, blocking or deleting cookies may cause some of the Services, including any portal features and general functionality, to work incorrectly. If you have questions regarding the specific information about you that we process or retain, as well as your choices regarding our collection and use practices, please contact us using the information listed below. You can opt out of tracking by Google Analytics. Your browser settings may allow you to transmit a "Do Not Track" signal when you visit various websites. The legal bases for the setting of cookies are legitimate interests under Art. 6 para. 1 letter f) GDPR and, if applicable, Your consent in accordance with Art. 6 (1) (b) GDPR. In the case of the initiation of a contract or an ongoing contractual relationship, the legal basis also follows from Art. 6 para. 1 sentence 1 letter b) GDPR. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/privacy-policy#social-networks-and-other-third-party-websites-and-links) **SOCIAL NETWORKS AND OTHER THIRD PARTY WEBSITES AND LINKS** We may provide links to websites or other online platforms operated by third parties, including third-party social networking platforms, such as Twitter, Discord, Telegram or Medium as well as decentralized finance applications and Partner Protocols operated by third parties (such platforms are "Social Networks," "Partner Protocols," or "Decentralized Finance Applications"). If you follow links to sites not affiliated or controlled by us, you should review their privacy and security policies and other terms and conditions. We do not guarantee and are not responsible for the privacy or security of these sites, including the accuracy, completeness, or reliability of information found on these sites. Information you provide on public or semi-public venues, including information you share or post on Social Networks or provide to Partner Protocols, may also be accessible or viewable by other users of the Services and/or users of those third-party online platforms without limitation as to its use by us or by a third party. Our inclusion of such links or authorization of Partner Protocols does not, by itself, imply any endorsement of the content on such platforms or of their owners or operators, except as disclosed on the Services. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/privacy-policy#third-party-wallet-extensions) **THIRD PARTY WALLET EXTENSIONS** Certain transactions conducted via our Services, will require you to connect a Wallet to the Services. By using such Wallet to conduct such transactions via the Services, you agree that your interactions with such third party Wallets are governed by the privacy policy for the applicable Wallet. We expressly disclaim any and all liability for actions arising from your use of third party Wallets, including but without limitation, to actions relating to the use and/or disclosure of personal information by such third party Wallets. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/privacy-policy#public-information-observed-from-blockchains) **PUBLIC INFORMATION OBSERVED FROM BLOCKCHAINS** We collect data from activity that is publicly visible and/or accessible on blockchains. This may include blockchain addresses and information regarding holdings, purchases, sales, transfers of tokens, and staking activities (including staking of msUSD for smsUSD and associated yield accrual), which may then be associated with other data you have provided to us. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/privacy-policy#childrens-privacy) **CHILDREN'S PRIVACY** Children under the age of 18 are not permitted to use the Services, and we do not seek or knowingly collect any personal information about children under 13 years of age. If we become aware that we have unknowingly collected information about a child under 13 years of age, we will make commercially reasonable efforts to delete such information from our database. If you are the parent or guardian of a child under 13 years of age who has provided us with their personal information, you may contact us using the below information to request that it be deleted. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/privacy-policy#data-access-and-control) **DATA ACCESS AND CONTROL** You can view, access, edit, or delete your data for certain aspects of the Service via your Settings page. You may also have certain additional rights: * If you are a user in the European Economic Area, you have certain rights under the European General Data Protection Regulation ("GDPR"). These include the right to: * (i) request access and obtain a copy of your personal data; * (ii) request rectification or erasure; * (iii) object to or restrict the processing of your personal data; and * (iv) request portability of your personal data. Additionally, if we have collected and processed your personal data with your consent, you have the right to withdraw your consent at any time. If you wish to exercise your rights under the GDPR, CCPA, or other applicable data protection or privacy laws, please contact us at the address provided herein, specify your request, and reference the applicable law. We may ask you to verify your identity, or ask for more information about your request. We will consider and act upon any above request in accordance with applicable law. We will not discriminate against you for exercising any of these rights. Notwithstanding the above, we cannot edit or delete any information that is stored on a blockchain, for example the Ethereum or Sonic blockchain, as we do not have custody or control over any blockchains. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/privacy-policy#data-retention) **DATA RETENTION** We may retain your data as long as you continue to use the Services, have an account with us, or for as long as is necessary to fulfill the purposes outlined in this Privacy Policy. Information related to staking transactions and yield distribution may be retained for extended periods to ensure accurate record-keeping and compliance with tax and regulatory requirements. We may continue to retain your data even after you deactivate your account and/or cease to use the Service if such retention is reasonably necessary to comply with our legal obligations, to resolve disputes, prevent fraud and abuse, enforce our Terms or other agreements, and/or protect our legitimate interests. Where your data is no longer required for these purposes, we will delete it. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/privacy-policy#data-security) **DATA SECURITY** We use appropriate technical and organizational measures to prevent accidental or intentional manipulation, partial or total loss, destruction or unauthorized access to your data by third parties. Our security measures are continuously improved in line with technological developments. Furthermore, all service providers commissioned by us are obliged by means of appropriate contractual agreements to take appropriate measures in accordance with the current state of the art to prevent the aforementioned risks. Please be aware that, despite our reasonable efforts to protect your information, no security measures are perfect or impenetrable, and we cannot guarantee "perfect security." Please further note that any information you send to us electronically, while using the Services or otherwise interacting with us, may not be secure while in transit. We recommend that you do not use unsecure channels to communicate sensitive or confidential information to us. You are responsible for the security of your digital wallet(s), and we urge you to take steps to ensure it is and remains secure. In the event that any information under our custody and control is compromised as a result of a breach of security, we will take steps to investigate and remediate the situation and, in accordance with applicable laws and regulations, notify those individuals whose information may have been compromised. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/privacy-policy#rights-of-data-subjects-under-gdpr) **Rights of Data Subjects under GDPR** This section applies to you if you are able to avail yourself of certain rights under GDPR. a) Right to information, rectification, deletion as well as rights to restriction of processing or transfer of your data to another body You have the right to request information (Art. 15 GDPR) about your personal data and related information. In addition, you can request the correction (Art. 16 GDPR) and the deletion (Art. 17 para. 1 GDPR) of your personal data. You can also request that the processing of your personal data be restricted (Art. 18 GDPR). Furthermore, you have the right to receive your personal data from the responsible body or to have it transmitted to another responsible body (Art. 20 GDPR). b) Revocation of consent to data processing You can revoke your consent in accordance with Art. 6 (1) sentence 1 (a) GDPR at any time with immediate effect in accordance with Art. 7 (3) sentence 1 GDPR. Please note that data processing that took place before the revocation is not affected by the revocation and is therefore lawful despite the revocation. c) Objection to profiling and direct marketing In certain cases, you also have the right to object (Art. 21 GDPR) to the data processing. In particular, you have the right to object at any time to the processing of your data (in particular in the case of so-called profiling) based on Art. 6 (1) sentence 1 (f) GDPR (data processing on the basis of a balancing of interests) or Art. 6 (1) sentence 1 (i) GDPR (data processing in the public interest) in accordance with Art. 21 (1) GDPR. We will then no longer process your personal data for these purposes, unless we can demonstrate compelling legitimate grounds for the processing which override the interests, rights and freedoms of the data subject, or the processing serves to establish, exercise or defend legal claims. If your personal data is processed for direct marketing, you can also object to the processing of your data for the purpose of direct marketing at any time in accordance with Art. 21 para. 2 GDPR, including profiling, insofar as it is related to such direct marketing. If you object, your personal data will no longer be used for these direct marketing purposes. d) Right to lodge a complaint with the competent data protection supervisory authority If you believe that we have not complied with data protection regulations when processing your data, you can submit a complaint to the supervisory authority responsible for us. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/privacy-policy#how-to-contact-us) **HOW TO CONTACT US** Should you have any questions about our privacy practices or this Privacy Policy, please email us at legal@mainstreet.finance. [PreviousGeneral Risk Disclosures](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/general-risk-disclosures) [NextTerms of Service](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/terms-of-service) Last updated 6 months ago * [UPDATING THIS PRIVACY POLICY](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/privacy-policy#updating-this-privacy-policy) * [COMPANY'S COLLECTION AND USE OF INFORMATION](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/privacy-policy#companys-collection-and-use-of-information) * [HOW THE COMPANY SHARES YOUR INFORMATION](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/privacy-policy#how-the-company-shares-your-information) * [LEGAL BASIS UNDER GDPR](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/privacy-policy#legal-basis-under-gdpr) * [COOKIES AND OTHER TRACKING TECHNOLOGIES](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/privacy-policy#cookies-and-other-tracking-technologies) * [SOCIAL NETWORKS AND OTHER THIRD PARTY WEBSITES AND LINKS](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/privacy-policy#social-networks-and-other-third-party-websites-and-links) * [THIRD PARTY WALLET EXTENSIONS](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/privacy-policy#third-party-wallet-extensions) * [PUBLIC INFORMATION OBSERVED FROM BLOCKCHAINS](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/privacy-policy#public-information-observed-from-blockchains) * [CHILDREN'S PRIVACY](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/privacy-policy#childrens-privacy) * [DATA ACCESS AND CONTROL](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/privacy-policy#data-access-and-control) * [DATA RETENTION](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/privacy-policy#data-retention) * [DATA SECURITY](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/privacy-policy#data-security) * [Rights of Data Subjects under GDPR](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/privacy-policy#rights-of-data-subjects-under-gdpr) * [HOW TO CONTACT US](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/privacy-policy#how-to-contact-us) --- # General Risk Disclosures | Mainstreet.Finance Last Revised on June 11th, 2025 Please consider information in this Risk Disclosure Statement ("Statement") as a general overview of the risks associated with the services offered by Main St Finance Ltd and its affiliates (the "Services"), including our options arbitrage strategies and other delta-neutral approaches, made for your awareness only. We do not intend to provide investment or legal advice through this Statement and make no representation that the Services described herein are suitable for you or that information contained herein is reliable, accurate or complete. We do not guarantee or make any representations or assume any liability regarding financial results based on the use of the information in this Statement, and further do not advise to rely on such information in the process of making a fully informed decision whether or not to use the Services. The risks outlined in this Statement are not exhaustive and this Statement only outlines the general nature of certain risks associated with crypto assets, and does not discuss in detail all risks associated with holding or trading crypto assets. Users should undertake their own assessment as to the suitability of using crypto assets and associated Services based on their own investigations, research and based on their experience, financial resources, and goals. You should not deal with crypto assets unless you understand their nature and the extent of your exposure to risk. Note that specific disclosures and terms of service will apply with respect to various offerings of Main St Finance Ltd, which will be published separately. Users should refer to those terms in addition to the disclosures herein when deciding whether to utilize the Services. For the purpose of this Statement "you", "your", and "User" mean a user of our services and "we", "us", "our", or "Main St" mean Main St Finance Ltd. Users are strongly advised to read this Risk Disclosure Statement carefully before deciding to start using the Services. RISK OF LOSS IN TRADING CRYPTO ASSETS CAN BE SUBSTANTIAL AND YOU SHOULD, THEREFORE, CAREFULLY CONSIDER WHETHER SUCH ACTIVITY IS APPROPRIATE FOR YOU IN LIGHT OF YOUR CIRCUMSTANCES AND FINANCIAL RESOURCES. YOU SHOULD BE AWARE OF THE FOLLOWING: **Crypto Assets Are Not Legal Tender In Most Jurisdictions** Most crypto assets are not backed by any central government or legal tender (except in few, discrete cases), meaning each country has different standards. There is no assurance that a person who accepts crypto assets as payment today will continue to do so in the future. Holders of crypto assets put their trust in a digital, decentralized, and partially anonymous system that relies on peer-to-peer networks and cryptography to maintain its integrity, and neither vendors nor individuals have an obligation to accept crypto assets as payment in the future; **Loss of value, Volatility and Uncertainty of Future Performance** There is typically limited or no fundamental reasoning behind the pricing of crypto assets, creating the risk of volatility and unpredictability in the price of crypto assets relative to fiat currencies. Crypto assets have had historically higher price volatility than fiat currencies, including irrational and extreme moves in price as the process for valuation can be speculative and uncertain. **Liquidity Risk** Crypto assets can have limited liquidity that can make it difficult or impossible to sell or exit a position when desired. This can occur at any time, especially during periods of high volatility. **Market forces** Trading in crypto assets may be susceptible to irrational market forces, such as speculative bubbles, manipulation, scams, and fraud. **Financial Crime and Cyber Attacks** Cyber crime relating to crypto assets can be more prevalent than other financial crime as the ecosystem is totally digital and traditional governance and risk mitigants may be lacking. For example, a 51% attack is an attack on a blockchain by any person or group of persons who control more than 50% of the network. Attackers with majority control of a network can interrupt the recording of new blocks, alter payment history, and subvert funds. Users are susceptible to malware and fake/hijacked addresses and other forms of cyber-attacks and Users should always take care of passwords and double check the addresses and URLs before loading software or interacting with any platform, protocol, or service. **Absence of Control** Main St is not a broker, agent or advisor and has no fiduciary relationship or obligation to Users in connection with any transaction or other decision or activity undertaken by you using the Services. We do not control whether your use of the Services is consistent with your financial goals. It is up to Users to assess whether their financial resources are appropriate for their respective activity with us and risk appetite in the products and services you use. **Availability of Services** We do not guarantee that the Services will be available at any given time or that the Services will not be subject to unplanned service interruptions or network congestion. You may not be able to buy, sell, store, transfer, redeem, send, or receive crypto assets when you want to. **Technology Risk** The risks of crypto assets being transacted via new technologies (including distributed ledger technologies) include, among other things, anonymity, irreversibility of transactions, accidental transactions, transaction recording, and settlement. Transactions in crypto assets on a blockchain relies on the proper functioning of complex software, which exacerbates the risk of access to or use of crypto assets being impaired or prevented. Additionally, the two-token staking system (msUSD and smsUSD) involves complex smart contract interactions that may be vulnerable to technical failures, smart contract exploits, or other unforeseen circumstances. The staking mechanism, exchange rate calculations, and yield distribution system add additional layers of technical complexity and potential points of failure. Moreover, there is risk of failures, defects, hacks, exploits, protocol errors, or unforeseen circumstances that might occur in connection with a crypto asset or the technologies on which the crypto asset is based. **Irreversible Transactions** Transactions in crypto assets are generally irreversible. As a result, losses due to fraudulent or accidental transactions may not be recoverable. **Options Market Risks** Options markets in cryptocurrency have unique characteristics that may create additional risks beyond those present in traditional cryptocurrency trading. Options prices can be affected by numerous factors including the volatility of the underlying asset, time to expiration, interest rates, and market sentiment. The pricing of options can become inefficient or irrational during periods of extreme market stress. Options markets may also have less liquidity than spot markets, particularly for specific strikes or expiration dates, which can impact execution quality and increase slippage. Additionally, options markets operate with their own mechanics and terminology (including "Greeks" such as Delta, Gamma, Theta, and Vega) that affect pricing and risk management in ways that may be complex and difficult to predict. **Third Party Risk** Third parties such as payment providers, custodians, exchanges, banking partners, and authorized Partner Protocols may be involved in the provision of the Services. You may be subject to the terms and conditions of these third parties, and Main St cannot be responsible for any losses these third parties may cause you. **Third-Party Partner Protocol Risks** Main St may authorize third-party Partner Protocols to facilitate access to our Services, including minting and staking functionality. Using Partner Protocols introduces additional risks that users should carefully consider: **Regulatory Compliance Risk:** Partner Protocols may not maintain the same compliance standards as Main St, potentially exposing users to regulatory risks in their jurisdiction **Operational Risk:** Partner Protocols operate independently and may experience technical failures, security breaches, or service interruptions that are beyond Main St's control **Data Privacy Risk:** Information you provide to Partner Protocols is governed by their privacy policies, not Main St's, and we cannot control how they handle your personal data **Counterparty Risk:** Partner Protocols may cease operations, lose authorization, or become insolvent, potentially affecting your ability to access services or recover assets **Technical Integration Risk:** Interface issues between Partner Protocols and Main St's systems could result in transaction failures, delays, or unexpected costs **Fee and Terms Risk:** Partner Protocols may impose additional fees, terms, or restrictions that differ from Main St's direct services **Customer Support Risk:** Disputes or issues arising from Partner Protocol interactions may be subject to their dispute resolution processes, not Main St's **Authorization Revocation Risk:** Main St reserves the right to revoke Partner Protocol authorization at any time, which could disrupt ongoing services or transactions Users should carefully evaluate Partner Protocols before use and understand that Main St makes no representations or warranties regarding Partner Protocol operations, security, or reliability. Main St is not liable for any losses or damages arising from your use of Partner Protocols. **Taxation and Disclosure of Information** You are responsible for determining the taxes to which you may be subject and their application when using the Services. It is your responsibility to report and pay any taxes that may arise from transactions and you acknowledge that Main St does not provide legal or tax advice regarding such transactions. If you have concerns about your tax treatment or obligations you may wish to seek independent advice. You understand that when, where, and as required by applicable law, Main St will disclose available information relating to transactions transfers, distributions or payments to the appropriate regulatory and tax authorities or other public authorities. Similarly, when, where and as required by applicable law, Main St will withhold taxes related to your transactions, transfers, distributions or payments. **No Investment and Legal Advice** Communications or information provided by Main St shall not be considered or construed as investment advice, financial advice, trading advice, or any other type of advice. The User is the only party who can determine whether an investment, investment strategy or related transaction is appropriate based on his or her personal investment objectives, financial situation and risk tolerance, and shall be solely responsible for any losses or liabilities that may result. **Regulatory Risk** The regulation of crypto assets and platforms is uncertain in many jurisdictions and Main St cannot be held responsible for compliance with legal rules of countries from which customers, on their own initiative, access the Services. Moreover, changes in rules applicable to crypto assets may considerably impact on the prices of those assets and are unpredictable. You further acknowledge the above list of risks is non-exhaustive and there may also be unpredictable risks. **Staking Model Risks** The msUSD and smsUSD staking model involves specific risks that users should be aware of: * **Staking Contract Risk:** The smart contracts governing the staking mechanism may contain vulnerabilities despite security audits * **Liquidity Risk for Staked Assets:** When staking msUSD for smsUSD, users face reduced liquidity as unstaking may require processing time * **Exchange Rate Fluctuations:** The exchange rate between msUSD and smsUSD reflects accumulated yield and may not always increase linearly * **Unstaking Delays:** The standard 7-day processing period for larger redemptions may create timing risks during volatile market conditions * **Yield Variability:** The yield accrual to smsUSD holders may fluctuate based on options strategy performance and market conditions * **Staking Pool Concentration:** Large unstaking events by major participants could impact strategy performance and redemption timelines * **Smart Contract Interactions:** Multiple contract interactions in the staking process increase the attack surface for potential exploits **Options Arbitrage and Delta-Neutral Strategy Risks** The options arbitrage and delta-neutral strategies employed by Main St to back msUSD involve sophisticated trading techniques across spot and derivatives markets. While these strategies are designed to minimize directional price exposure, they may be subject to specific risks including but not limited to: * Volatility Risk: Divergence between implied and realized volatility that differs from model predictions * Options Pricing Risk: Unpredictable changes in options pricing due to market sentiment shifts * Delta Hedging Risk: Imperfect hedging during rapid market movements may create temporary directional exposure * Options Liquidity Risk: Limited liquidity in specific options contracts may impact execution efficiency * Funding Rate Risk: For supplementary basis trade strategies, extended periods of negative funding rates may reduce yields * Counterparty Risk: Potential failure of exchanges or other counterparties involved in strategy execution * Model Risk: Machine learning models may experience periods of reduced predictive accuracy * Options Greeks Risk: Unexpected changes in options Greeks (Delta, Gamma, Theta, Vega) may require rapid position adjustments * Smart Contract Risk: Potential vulnerabilities in blockchain protocols or smart contracts * **Yield Distribution Risk:** Fluctuations in strategy performance may affect the exchange rate between msUSD and smsUSD * **Strategy Capacity Limitations:** As the protocol scales, diminishing returns may occur in certain market conditions * **Staking Reward Calculation Risk:** Complex yield calculations and distributions between msUSD and smsUSD may be subject to calculation errors These strategy-specific risks may affect the underlying performance of the reserve assets backing msUSD and should be considered alongside general crypto asset risks. [PreviousWatchPug Security Audit 1](https://mainstreet-finance.gitbook.io/mainstreet.finance/audits/watchpug-security-audit-1) [NextPrivacy Policy](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/privacy-policy) Last updated 6 months ago --- # Terms of Service | Mainstreet.Finance **Last Revised: June 11th, 2025** These Terms of Service (these "Terms") explain the terms and conditions by which you may access and use our website, www.mainstreet.finance (the "Website"), operated by or on behalf of Main St Finance Ltd (inclusive with its affiliates, the "Company", "we" or "us"), our App (as defined below), and any other Services provided by the Company, including any related content, tools, documentation, features and functionality (collectively the "Services"). These Terms govern your access to and use of the Services. Please read these Terms carefully, as they include important information about your legal rights. By accessing and/or using the Services, you are agreeing to these Terms. If you do not understand or agree to these Terms, please do not use the Services. For purposes of these Terms, "you" and "your" means you as the user of the Services. If you use the Services on behalf of a company or other entity then "you" includes you and that entity, and you represent and warrant that (a) you are an authorized representative of the entity with the authority to bind the entity to these Terms, and (b) you agree to these Terms on the entity's behalf. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/terms-of-service#id-1.-the-services) 1\. The Services #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/terms-of-service#id-1.1-services) 1.1 Services The Services provide an interface (the "App") that displays data for the purpose of enabling users to interface, via a third-party wallet application (e.g., Metamask), with certain components of a set of open-sourced smart contracts deployed on decentralized blockchains, namely the options arbitrage and other delta-neutral yield generation mechanisms inherent to the Main Street Protocol. These mechanisms include a staking system that allows users to stake msUSD to receive smsUSD and earn yield. The set of smart contracts maintained and operated by the Company and its affiliates, collectively with off-chain infrastructure (e.g., off-exchange custody solutions and exchange relationships) maintained and operated by the Company and its affiliates, are referred to herein as the "Protocol". In addition, the App displays data for the purpose of enabling users to interface, via a third-party wallet application, with certain components of open-sourced smart contract systems deployed on decentralized blockchains, such as certain liquidity pools on Sonic and other decentralized exchanges (the "Third Party Protocols"). Documentation relevant to the Services, the App, and the Protocol are available at docs.mainstreet.finance (the "Documentation"). The Protocol itself is not part of the Services, and your use of the Protocol is entirely at your own risk. Additionally, the third party technologies required to be used or interacted with in order to interact with the Protocol, including but not limited to a Wallet (as defined below, and collectively the "Third-Party Tools"), are not part of the Services, and your use of such Third-Party Tools are entirely at your own risk. The App is separate and distinct from the Protocol and any Third-Party Tools and is not essential for the purpose of accessing or otherwise interacting with the Protocol. The App merely displays blockchain data and provides a web application that reduces the complexity of using the Third-Party Tools to otherwise interact with the Protocol. Activity on the Protocol is conducted via permissionless smart contracts as well as certain aspects of off-chain infrastructure detailed in the Documentation and maintained by the Company and its affiliates, and users or other developers are free to create their own interfaces to interact with the Protocol. When you utilize any data inputs provided by the App to execute transactions, you are interacting with public blockchains, which provide transparency into your transactions. The Company does not control and is not responsible for any information you make public on any public blockchain by taking actions utilizing data provided by the App or the Services. #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/terms-of-service#id-1.2-wallets) 1.2 Wallets To use certain of the Services it may be necessary to connect a third-party digital wallet ("Wallet") to the App. In such cases, by using a Wallet in connection with the Services, you agree that you are using the Wallet under the terms and conditions of the applicable third-party provider of such Wallet. Wallets are not associated with, maintained by, supported by or affiliated with the Company. You acknowledge and agree that we are not party to any transactions concluded while or after accessing our App, and we do not have possession, custody or control over any digital assets appearing on the App. When you interact with the App, you retain control over your digital assets at all times. The Company accepts no responsibility or liability to you in connection with your use of a Wallet or data provided by the App in consummating transactions using a Wallet, and makes no representations and warranties regarding how the Services will interact with any specific Wallet. The private keys and/or seed phrases necessary to access the assets held in a Wallet are not held by or known to the Company. The Company has no ability to help you access or recover your private keys and/or seed phrases for your Wallet, so please keep them in a safe place. #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/terms-of-service#id-1.3-updates-monitoring) 1.3 Updates; Monitoring We may make any improvements, modifications or updates to the Services, including but not limited to changes and updates to the underlying software, infrastructure, security protocols, documentation, technical configurations, staking mechanisms, token models or service features (the "Updates") from time to time. Your continued access to and use of the Services are subject to such Updates and you shall accept any patches, system upgrades, bug fixes, feature modifications, or other maintenance work that arise out of such Updates. We are not liable for any failure by you to accept and use such Updates in the manner specified or required by us. Although the Company is not obligated to monitor access to or participation in the Services, it has the right to do so for the purpose of operating the Services, to ensure compliance with the Terms and to comply with applicable law or other legal requirements. #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/terms-of-service#id-1.4-fees) 1.4 Fees While the Company does not presently charge any fees for the Services or the App, transactions executed by you utilizing data provided by the App and your use of the Services may cause you to incur fees such as blockchain gas or similar network fees, as well as fees charged by the Protocol, if any, and Third Party Protocols. All such fees displayed within your Wallet utilizing data inputs provided by the App are merely estimates and may not reflect actual costs incurred in broadcasting a transaction for execution according to the applicable consensus mechanism. Additionally, your external Wallet provider may impose a fee. We are not responsible for any fees charged by a third party. Due to the nature of distributed, public blockchains, transactions executed by you utilizing data provided by the App and the Services are non-refundable and the Company is not able to alter or mitigate any such fees. You will be responsible for paying any and all taxes, duties and assessments now or hereafter claimed or imposed by any governmental authority associated with your use of the Services, the App, the Protocol, and Third-Party Protocols. In certain cases, your transactions may not be successful due to an error with the blockchain or the Wallet, or due to changes in the distributed blockchain environment (e.g., during a spike in demand for block space and/or activity on the relevant network). We accept no responsibility or liability to you for any such failed transactions, or any transaction or gas fees that may be incurred by you in connection with such failed transactions. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/terms-of-service#id-2.-who-may-use-the-services) 2\. Who May Use the Services You must be 18 years of age or older and not be a Prohibited Person to use the Services. A "Prohibited Person" is any person or entity that is (a) listed on (i) any U.S. Government list of prohibited or restricted parties, including the U.S. Treasury Department's list of Specially Designated Nationals or the U.S. Department of Commerce Denied Persons List or Entity List; (ii) the EU consolidated list of persons, groups and entities subject to financial sanctions; (iii) the UK Consolidated List of Financial Sanctions Targets; or (iv) any of Switzerland's respective sanctions lists, (b) located or organized in any U.S. embargoed countries or any country that has been designated by the U.S. Government as "terrorist supporting", (c) a citizen, resident, or organized in, the following jurisdictions (the "Prohibited Jurisdictions"): Abkhazia, Afghanistan, Angola, Belarus, Burundi, Central African Republic, Congo, Cuba, Crimea, Ethiopia, Guinea-Bissau, Iran, Ivory Coast (Cote D'Ivoire), Lebanon, Liberia, Libya, Mali, Burma (Myanmar), Nicaragua, North Korea, Northern Cyprus, Russia, Somalia, Somaliland, South Ossetia, South Sudan, Sudan, Syria, Ukraine (Donetsk and Luhansk regions), United States, Venezuela, Yemen, Zimbabwe; (d) otherwise a party with which the Company is prohibited to deal under the laws of the U.S., the EU (or any of its Member States), the UK, or any applicable foreign jurisdiction, or (e) owned or controlled by such persons or entities listed in (a)-(d). The Company may utilize certain tools, such as IP-based geofencing, to enforce the above restrictions. By using the Services and/or the App, you represent that you are not a Prohibited Person. You acknowledge and agree that you are solely responsible for complying with all applicable laws of the jurisdiction you are located or accessing the Services from in connection with your use of the Services. By using the Services, you represent and warrant that you meet these requirements and will not be using the Services for any illegal activity or to engage in the prohibited activities in Section 5.3. We may require you to provide additional information and documents regarding your use of the Services, including in case of application of any applicable law or regulation, including laws related to anti-money laundering or for countering the financing of terrorism, or the request of any competent authority. We may also require you to provide additional information or documents in cases where we have reason to believe: (i) that your Wallet is being used for illegal money laundering or for any other illegal activity; or (ii) you have concealed or reported false identification information or other details. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/terms-of-service#id-3.-location-of-our-privacy-policy) 3\. Location of Our Privacy Policy Our Privacy Policy describes how we handle the information you provide to us when you use the Services. For an explanation of our privacy practices, please visit our Privacy Policy located at [https://docs.mainstreet.finance/resources/privacy-policy](https://docs.mainstreet.finance/resources/privacy-policy) . ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/terms-of-service#id-4.-rights-we-grant-you) 4\. Rights We Grant You #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/terms-of-service#id-4.1-right-to-use-services) 4.1 Right to Use Services We hereby permit you to use the Services for your personal non-commercial use only, provided that you comply with these Terms in connection with all such use. If any software, content or other materials owned or controlled by us are distributed to you as part of your use of the Services, we hereby grant you, a personal, non-assignable, non-sublicensable, non-transferrable, and non-exclusive right and license to access and display such software, content, and materials provided to you as part of the Services, in each case for the sole purpose of enabling you to use the Services as permitted by these Terms. Your access and use of the Services may be interrupted from time to time for any of several reasons, including, without limitation, the malfunction of equipment, periodic updating, maintenance or repair of the Service or other actions that Company, in its sole discretion, may elect to take. #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/terms-of-service#id-4.2-restrictions-on-your-use-of-the-services) 4.2 Restrictions On Your Use of the Services You may not do any of the following in connection with your use of the Services, unless applicable laws or regulations prohibit these restrictions or you have our written permission to do so: (a) download, modify, copy, distribute, transmit, display, perform, reproduce, duplicate, publish, license, create derivative works from, or offer for sale any information contained on, or obtained from or through, the Services, except for temporary files that are automatically cached by your web browser for display purposes, or as otherwise expressly permitted in these Terms; (b) duplicate, decompile, reverse engineer, disassemble or decode the Services (including any underlying idea or algorithm), or attempt to do any of the same; (c) use, reproduce or remove any copyright, trademark, service mark, trade name, slogan, logo, image, or other proprietary notation displayed on or through the Services; (d) use automation software (bots), hacks, modifications (mods) or any other unauthorized third-party software designed to modify the Services; (e) exploit the Services for any commercial purpose, including without limitation communicating or facilitating any commercial advertisement or solicitation; (f) access or use the Services in any manner that could disable, overburden, damage, disrupt or impair the Services or interfere with any other party's access to or use of the Services or use any device, software or routine that causes the same; (g) attempt to gain unauthorized access to, interfere with, damage or disrupt the Services or the computer systems, wallets, accounts, protocols or networks connected to the Services; (h) circumvent, remove, alter, deactivate, degrade or thwart any technological measure or content protections of the Services or the computer systems, wallets, accounts, protocols or networks connected to the Services; (i) use any robot, spider, crawler or other automatic device, process, software or query that intercepts, "mines," scrapes, or otherwise accesses the Services to monitor, extract, copy, or collect information or data from or through the Services, or engage in any manual process to do the same; (j) introduce any viruses, trojan horses, worms, logic bombs or other materials that are malicious or technologically harmful into our systems; (k) submit, transmit, display, perform, post or store any content that is inaccurate, unlawful, defamatory, obscene, lewd, lascivious, filthy, excessively violent, pornographic, invasive of privacy or publicity rights, harassing, threatening, abusive, inflammatory, harmful, hateful, cruel or insensitive, deceptive, or otherwise objectionable, use the Services for illegal, harassing, bullying, unethical or disruptive purposes, or otherwise use the Services in a manner that is obscene, lewd, lascivious, filthy, excessively violent, harassing, harmful, hateful, cruel or insensitive, deceptive, threatening, abusive, inflammatory, pornographic, inciting, organizing, promoting or facilitating violence or criminal or harmful activities, defamatory, obscene or otherwise objectionable; (l) violate any applicable law or regulation in connection with your access to or use of the Services; or (m) access or use the Services in any way not expressly permitted by these Terms. #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/terms-of-service#id-4.3-interactions-with-other-users-on-the-services) 4.3 Interactions with Other Users on the Services You are responsible for your interactions with other users on or through the Services. While we reserve the right to monitor interactions between users, we are not obligated to do so, and we cannot be held liable for your interactions with other users, or for any user's actions or inactions. If you have a dispute with one or more users, you release us (and our affiliates and subsidiaries, and our and their respective officers, directors, employees and agents) from claims, demands and damages (actual and consequential) of every kind and nature, known and unknown, arising out of or in any way connected with such disputes. In entering into this release you expressly waive any protections (whether statutory or otherwise) that would otherwise limit the coverage of this release to include only those claims which you may know or suspect to exist in your favor at the time of agreeing to this release. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/terms-of-service#id-5.-ownership-and-content) 5\. Ownership and Content #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/terms-of-service#id-5.1-ownership-of-the-services) 5.1 Ownership of the Services The Services, including their "look and feel" (e.g., text, graphics, images, logos), proprietary content, information and other materials, are protected under copyright, trademark and other intellectual property laws. You agree that the Company and/or its licensors own all right, title and interest in and to the Services (including any and all intellectual property rights therein) and you agree not to take any action(s) inconsistent with such ownership interests. We and our licensors reserve all rights in connection with the Services and its content, including, without limitation, the exclusive right to create derivative works. #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/terms-of-service#id-5.2-ownership-of-trademarks) 5.2 Ownership of Trademarks The Company's name, trademarks and logos and all related names, logos, product and service names, designs and slogans are trademarks of the Company or its affiliates or licensors. Other names, logos, product and service names, designs and slogans that appear on the Services are the property of their respective owners, who may or may not be affiliated with, connected to, or sponsored by us. #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/terms-of-service#id-5.3-ownership-of-feedback) 5.3 Ownership of Feedback We welcome feedback, bug reports, comments and suggestions for improvements to the Services ("Feedback"). You acknowledge and expressly agree that any contribution of Feedback does not and will not give or grant you any right, title or interest in the Services or in any such Feedback. All Feedback becomes the sole and exclusive property of the Company, and the Company may use and disclose Feedback in any manner and for any purpose whatsoever without further notice or compensation to you and without retention by you of any proprietary or other right or claim. You hereby assign to the Company any and all right, title and interest (including, but not limited to, any patent, copyright, trade secret, trademark, show-how, know-how, moral rights and any and all other intellectual property right) that you may have in and to any and all Feedback. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/terms-of-service#id-6.-third-party-services-and-materials) 6\. Third Party Services and Materials The Services, through the App, may provide data relevant to the Third-Party Protocols and Partner Protocols. The Services may display, include or make available content, data, information, applications or materials from third parties ("Third-Party Materials") or provide links to certain third party websites. The Company does not endorse any Third-Party Materials, the use of any provider of any Third-Party Protocols, or any Partner Protocols. You agree that your access and use of such Third-Party Protocols and Third-Party Materials is governed solely by the terms and conditions of such Third-Party Protocols and Third-Party Materials, as applicable. The Company is not responsible or liable for, and make no representations as to any aspect of such Third-Party Materials and Third-Party Protocols, including, without limitation, their content, operation, or the manner in which they handle, protect, manage or process data or any interaction between you and the provider of such Third-Party Protocols. The Company is not responsible for examining or evaluating the content, accuracy, completeness, availability, timeliness, validity, copyright compliance, legality, decency, quality, risk, functionality, safety, or any other aspect of such Third Party Protocols or Third Party Materials or websites. You irrevocably waive any claim against the Company with respect to such Third-Party Protocols and Third-Party Materials. We are not liable for any damage or loss caused or alleged to be caused by or in connection with your enablement, access or use of any such Third-Party Protocols or Third-Party Materials, or your reliance on the privacy practices, data security processes or other policies of such Third-Party Protocols. Third-Party Protocols, Third-Party Materials and links to other websites are provided solely as a convenience to you. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/terms-of-service#id-6a.-third-party-partner-protocols) 6A. Third-Party Partner Protocols The Company may facilitate access to the Protocol through third-party partner protocols ("Partner Protocols") that have been authorized to provide interfaces for users to interact with the Protocol, including minting msUSD and staking functionality. You acknowledge and agree that: (a) Partner Protocols are independent third parties and are not agents, representatives, or affiliates of the Company unless explicitly stated otherwise in writing; (b) Your interactions with Partner Protocols are governed by separate agreements between you and such Partner Protocols; (c) The Company has no control over, and assumes no responsibility for, the operations, content, privacy policies, security practices, or compliance procedures of any Partner Protocol; (d) The Company makes no representations or warranties regarding Partner Protocols and is not liable for any losses, damages, or issues arising from your use of Partner Protocols, including but not limited to: * Technical failures or security breaches affecting Partner Protocols * Regulatory non-compliance by Partner Protocols * Disputes between you and Partner Protocols * Any unauthorized access to your information through Partner Protocols (e) Partner Protocols may impose their own fees, terms, and restrictions that are separate from and in addition to these Terms; (f) The availability of any Partner Protocol does not constitute an endorsement by the Company; (g) The Company reserves the right to suspend or prohibit any Partner Protocol from interfacing with the Protocol at any time in its sole discretion. You are solely responsible for evaluating the legitimacy, security, and reliability of any Partner Protocol before engaging with them. The Company strongly recommends reviewing the terms, privacy policies, and security practices of Partner Protocols before providing any information or engaging in transactions. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/terms-of-service#id-7.-disclaimers-limitations-of-liability-and-indemnification) 7\. Disclaimers, Limitations of Liability and Indemnification #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/terms-of-service#id-7.1-disclaimers) 7.1 Disclaimers Your access to and use of the Services and the Protocol are at your own risk. You understand and agree that the Services are provided to you on an "AS IS" and "AS AVAILABLE" basis. Without limiting the foregoing, to the maximum extent permitted under applicable law, the Company, its parents, affiliates, related companies, officers, directors, employees, agents, representatives, partners and licensors (the "Company Entities") DISCLAIM ALL WARRANTIES AND CONDITIONS, WHETHER EXPRESS, IMPLIED OR STATUTORY, INCLUDING WITHOUT LIMITATION ANY WARRANTIES RELATING TO TITLE, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT, USAGE, QUALITY, PERFORMANCE, SUITABILITY OR FITNESS OF THE SERVICES AND THE PROTOCOL FOR ANY PARTICULAR PURPOSE, OR AS TO THE ACCURACY, QUALITY, SEQUENCE, RELIABILITY, WORKMANSHIP OR TECHNICAL CODING THEREOF, OR THE ABSENCE OF ANY DEFECTS THEREIN WHETHER LATENT OR PATENT. The Company Entities make no warranty or representation and disclaim all responsibility and liability for: (a) the completeness, accuracy, availability, timeliness, security or reliability of the Services and the Protocol; (b) any harm to your computer system, loss of data, or other harm that results from your access to or use of the Services or the Protocol; (c) the operation or compatibility with any other application or any particular system or device, including any Wallets; and (d) whether the Services or the Protocol will meet your requirements or be available on an uninterrupted, secure or error-free basis. The Company and its affiliates are not registered in any capacity with any regulatory body in any jurisdiction. You understand and acknowledge that we do not broker trading orders on your behalf, match orders for buyers and sellers of securities or any other assets, or offer any products, financial or otherwise, for sale or distribution. We also do not facilitate the execution or settlement of your transactions, which occur entirely on public distributed blockchains. The App is strictly a means by which users may construct transaction data to be utilized by the individual user by executing transactions utilizing Wallets. No advice or information, whether oral or written, obtained from the Company Entities or through the Services, will create any warranty or representation not expressly made herein. You agree and understand that all transfers, staking, options-related transactions, or other actions you perform utilizing transaction data provided by the App are considered unsolicited, which means that you have not received any investment advice from us in connection with any such action, we have not actively solicited your use of the Services, and that we do not conduct a suitability review of any such action. All information provided by the App and our Services is for informational purposes only and should not be construed as investment advice. You should not take, or refrain from taking, any action based on any information contained in the App or obtained via the Services. We do not make any investment recommendations to you or opine on the merits of any investment transaction or opportunity. You alone are responsible for determining whether any investment, investment strategy or related transaction is appropriate for you based on your personal investment objectives, financial circumstances, and risk tolerance. You understand and acknowledge that the staking process, exchange rate calculations between msUSD and smsUSD, and yield distribution mechanisms are complex financial and technical operations. We do not guarantee any specific yield rates, staking performance, or redemption timelines. The exchange rate between msUSD and smsUSD is determined by protocol mechanics and yield performance, which may be affected by various factors including but not limited to strategy performance, market conditions, and protocol parameters. All information regarding expected yields or historical performance is provided for informational purposes only and should not be construed as a guarantee of future returns. #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/terms-of-service#id-7.2-limitations-of-liability) 7.2 Limitations of Liability TO THE EXTENT NOT PROHIBITED BY LAW, YOU AGREE THAT IN NO EVENT WILL THE COMPANY ENTITIES BE LIABLE (A) FOR DAMAGES OF ANY KIND, INCLUDING DIRECT, INDIRECT, SPECIAL, EXEMPLARY, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES (INCLUDING, BUT NOT LIMITED TO, PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES, LOSS OF USE, DATA OR PROFITS, BUSINESS INTERRUPTION OR ANY OTHER DAMAGES OR LOSSES, ARISING OUT OF OR RELATED TO YOUR USE OR INABILITY TO USE THE SERVICES), HOWEVER CAUSED AND UNDER ANY THEORY OF LIABILITY, WHETHER UNDER THESE TERMS OR OTHERWISE ARISING IN ANY WAY IN CONNECTION WITH THE SERVICES OR THESE TERMS AND WHETHER IN CONTRACT, STRICT LIABILITY OR TORT (INCLUDING NEGLIGENCE OR OTHERWISE) EVEN IF THE COMPANY ENTITIES HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGE, OR (B) FOR ANY OTHER CLAIM, DEMAND OR DAMAGES WHATSOEVER RESULTING FROM OR ARISING OUT OF OR IN CONNECTION WITH THESE TERMS OR THE DELIVERY, USE OR PERFORMANCE OF THE SERVICES. THE COMPANY ENTITIES' TOTAL LIABILITY TO YOU FOR ANY DAMAGES FINALLY AWARDED SHALL NOT EXCEED ONE HUNDRED DOLLARS ($100.00). SOME JURISDICTIONS (SUCH AS THE STATE OF NEW JERSEY) DO NOT ALLOW THE EXCLUSION OR LIMITATION OF INCIDENTAL OR CONSEQUENTIAL DAMAGES, SO THE ABOVE EXCLUSION OR LIMITATION MAY NOT APPLY TO YOU. #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/terms-of-service#id-7.3-assumption-of-risks) 7.3 Assumption of Risks (a) By using the Services, you represent that you have sufficient knowledge and experience in business and financial matters, including a sufficient understanding of blockchain technologies, cryptocurrencies and other digital assets, storage mechanisms (such as Wallets), blockchain-based software systems, and options markets to be able to assess and evaluate the risks and benefits of the Services contemplated hereunder, and will bear the risks thereof, including loss of all amounts paid, and the risk that the cryptocurrencies and other digital assets may have little or no value. You acknowledge and agree that there are risks associated with purchasing and holding cryptocurrency, using blockchain technology, options trading strategies, and staking cryptocurrency. These include, but are not limited to, risk of losing access to cryptocurrency due to slashing, loss of private key(s), custodial error or purchaser error, risk of mining or blockchain attacks, risk of hacking and security weaknesses, risk of unfavorable regulatory intervention in one or more jurisdictions, risk related to token taxation, risk of personal information disclosure, risk of uninsured losses, volatility risks, and unanticipated risks. You acknowledge that cryptocurrencies and other similar digital assets are neither (i) deposits of or guaranteed by a bank nor (ii) insured by the FDIC or by any other governmental agency. (b) There are certain multi-signature crypto wallets (the "MultiSigs", and the signatories to such MultiSigs, the "MultiSig Members") that have certain controls related to the Protocol, that may include, but are not limited to, the ability to pause certain functionality of the Protocol, implement, or influence upgrades to the Protocol (or any aspect thereof) and certain other controls of the functionality of the Protocol as described in the Documentation or in public communications. While the MultiSigs may have MultiSig Members that are employed or engaged by the Company, they may be controlled partially or entirely by MultiSig Members that are unaffiliated third parties over which we have no or limited control. We will not be able to control the actions of such MultiSig Members if they are not employed or engaged by us and thus certain MultiSigs will be outside of our control. The Company therefore cannot be held liable for any action, or inaction, relating to such a MultiSig. (c) The regulatory regimes governing blockchain technologies, cryptocurrencies and other digital assets are uncertain, and new regulations or policies may materially adversely affect the potential utility or value of the Services, the Protocol, Third-Party Protocols, cryptocurrencies and other digital assets, or the ability of the Company to continue to provide or support such Services and/or the App. Additionally, taxation of activities and transactions in cryptocurrencies and other digital assets is uncertain in certain cases in certain jurisdictions. You are encouraged to consult with your own tax advisor with respect to potential tax implications associated with utilizing the Services, the App, and the Protocol. (d) We cannot control or influence market sentiment or liquidity or how third-party services or platforms support, quote, restrict or provide access to, or value cryptocurrencies and other digital assets and we expressly deny and disclaim any liability to you and deny any obligations to indemnify or hold you harmless for any losses you may incur as a result of fluctuations in the value of cryptocurrencies or other digital assets. (e) Smart contracts execute automatically when certain conditions are met. Transactions on blockchains or using smart contracts often cannot be stopped or reversed, so vulnerabilities in the programming, design, or implementation of a blockchain, the Protocol, any deployed smart contracts, or a Third-Party Protocol may arise due to hacking or other security incidents and could result in significant adverse effects, including but not limited to, significant volatility or loss of any digital assets elected into the Protocol. (f) The Documentation describes certain risks associated with the Protocol in detail. Please review the Documentation for additional risks associated with utilizing the Services or the App in conjunction with your use of, and access to, the Protocol. The Company hereby disclaims any and all liability associated with risks disclosed in the Documentation to the fullest extent provided by applicable law. (g) The Protocol's primary strategy involves options arbitrage and other options-based trading techniques. These strategies involve sophisticated financial instruments with unique risk characteristics. Options markets can exhibit rapid price movements, limited liquidity for certain contracts, and complex pricing dynamics influenced by numerous factors including time decay, volatility changes, and market sentiment. The machine learning models used to predict volatility and identify trading opportunities may experience periods of reduced efficacy. Additionally, options positions require active management and hedging that can be impacted by market disruptions, exchange downtime, or liquidity constraints. You acknowledge that options-based strategies involve statistical rather than deterministic returns, which may result in occasional drawdowns even in a well-designed system. (h) The Protocol's staking system requires users to stake msUSD to receive smsUSD in order to earn yield. This staking mechanism involves specific risks including: (i) smart contract risks associated with the staking functionality; (ii) potential delays when unstaking during periods of high redemption volumes; (iii) liquidity limitations while assets are staked; (iv) potential exchange rate fluctuations between msUSD and smsUSD; and (v) yield distribution mechanics that may vary based on strategy performance. You acknowledge that the process of staking, unstaking, and yield distribution involves technical operations with inherent risks beyond the control of the Company. #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/terms-of-service#id-7.4-indemnification) 7.4 Indemnification By entering into these Terms and accessing or using the Services, you agree that you shall defend, indemnify and hold the Company Entities and MultiSig Members harmless from and against any and all claims, costs, damages, losses, liabilities and expenses (including attorneys' fees and costs) incurred by the Company Entities arising out of or in connection with: (a) your violation or breach of any term of these Terms or any applicable law or regulation; (b) your violation of any rights of any third party; (c) your misuse of the Services; or (d) your negligence or willful misconduct. If you are obligated to indemnify any Company Entity hereunder, then you agree that Company (or, at its discretion, the applicable Company Entity) will have the right, in its sole discretion, to control any action or proceeding and to determine whether Company wishes to settle, and if so, on what terms, and you agree to fully cooperate with Company in the defense or settlement of such claim. #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/terms-of-service#id-7.5-third-party-beneficiaries) 7.5 Third Party Beneficiaries You and the Company acknowledge and agree that the Company Entities (other than the Company) and the MultiSig Members are third party beneficiaries of these Terms, including under Section 7 and 8. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/terms-of-service#id-8.-arbitration-and-class-action-waiver) 8\. ARBITRATION AND CLASS ACTION WAIVER #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/terms-of-service#id-8.1-please-read-this-section-carefully-it-may-significantly-affect-your-legal-rights-including-your) 8.1 PLEASE READ THIS SECTION CAREFULLY – IT MAY SIGNIFICANTLY AFFECT YOUR LEGAL RIGHTS, INCLUDING YOUR RIGHT TO FILE A LAWSUIT IN COURT AND TO HAVE A JURY HEAR YOUR CLAIMS. IT CONTAINS PROCEDURES FOR MANDATORY BINDING ARBITRATION AND A CLASS ACTION WAIVER. #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/terms-of-service#id-8.2-informal-process-first) 8.2 Informal Process First You and the Company agree that in the event of any dispute between you and the Company Entities or the MultiSig Members, either party will first contact the other party and make a good faith sustained effort to resolve the dispute before resorting to more formal means of resolution, including without limitation, any court action, after first allowing the receiving party 30 days in which to respond. Both you and the Company agree that this dispute resolution procedure is a condition precedent which must be satisfied before initiating any arbitration against you, any Company Entity or any MultiSig Members, as applicable. #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/terms-of-service#id-8.3-arbitration-agreement-and-class-action-waiver) 8.3 Arbitration Agreement and Class Action Waiver After the informal dispute resolution process, any remaining dispute, controversy, or claim (collectively, "Claim") relating in any way to the Services, including the App, any use or access or lack of access thereto, and any other usage of the Protocol even if interacted with outside of the Services or App, will be resolved by arbitration, including threshold questions of arbitrability of the Claim. You and the Company agree that any Claim including those not of a contractual nature - arising out of, related or connected to the Services, the App, or otherwise, shall be settled by arbitration under the Rules of the Milan Chamber of Arbitration (the Rules), by three arbitrators, appointed in accordance with the Rules, which are deemed to be incorporated by reference into this clause. The language of arbitration will be English. Any arbitration under these Terms will take place on an individual basis – class arbitrations and class actions are not permitted. You understand that by agreeing to these Terms, you and the Company are each waiving the right to trial by jury or to participate in a class action or class arbitration. European Online Dispute Resolution Platform and Consumer Arbitration: Among [https://ec.europa.eu/consumers/odr/](https://ec.europa.eu/consumers/odr/) , the European Commission has set up a European Online Dispute Resolution (ODR) platform. Mainstreet is neither willing nor obliged to participate in the online dispute resolution procedure within the framework of the ODR platform. Furthermore, Mainstreet is not willing and not obliged to participate in dispute resolution proceedings before a consumer arbitration board. #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/terms-of-service#id-8.4-exceptions) 8.4 Exceptions Notwithstanding the foregoing, you and the Company agree that the following types of disputes will be resolved in a court of proper jurisdiction: (i) disputes or claims within the jurisdiction of a small claims court consistent with the jurisdictional and dollar limits that may apply, as long as it is brought and maintained as an individual dispute and not as a class, representative, or consolidated action or proceeding; (ii) disputes or claims where the sole form of relief sought is injunctive relief (including public injunctive relief); or (iii) intellectual property disputes. #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/terms-of-service#id-8.5-costs-of-arbitration) 8.5 Costs of Arbitration Payment of all filing, administration, and arbitrator costs and expenses will be governed by the Rules, except that if you demonstrate that any such costs and expenses owed by you under those rules would be prohibitively more expensive than a court proceeding, the Company will pay the amount of any such costs and expenses that the arbitrator determines are necessary to prevent the arbitration from being prohibitively more expensive than a court proceeding (subject to possible reimbursement as set forth below). Fees and costs may be awarded as provided pursuant to applicable law. If the arbitrator finds that either the substance of your claim or the relief sought in the Claim is frivolous, then the payment of all fees will be governed by the Rules. In that case, you agree to reimburse the Company for all monies previously disbursed by it that are otherwise your obligation to pay under the applicable rules. #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/terms-of-service#id-8.6-opt-out) 8.6 Opt-Out You have the right to opt-out and not be bound by the arbitration provisions set forth in these Terms by sending written notice of your decision to opt-out to legal@mainstreet.finance. The notice must be sent to the Company within thirty (30) days of your first accessing the Services or agreeing to these Terms; otherwise you shall be bound to arbitrate disputes on a non-class basis in accordance with these Terms. If you opt out of only the arbitration provisions, and not also the class action waiver, the class action waiver still applies. You may not opt out of only the class action waiver and not also the arbitration provisions. If you opt-out of these arbitration provisions, the Company also will not be bound by them. #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/terms-of-service#id-8.7-waiver-of-right-to-bring-class-action-and-representative-claims) 8.7 WAIVER OF RIGHT TO BRING CLASS ACTION AND REPRESENTATIVE CLAIMS TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, YOU AND THE COMPANY EACH AGREE THAT ANY PROCEEDING TO RESOLVE ANY DISPUTE, CLAIM OR CONTROVERSY WILL BE BROUGHT AND CONDUCTED ONLY IN THE RESPECTIVE PARTY'S INDIVIDUAL CAPACITY AND NOT AS PART OF ANY CLASS (OR PURPORTED CLASS), CONSOLIDATED, MULTIPLE-PLAINTIFF, OR REPRESENTATIVE ACTION OR PROCEEDING ("CLASS ACTION"). YOU AND THE COMPANY AGREE TO WAIVE THE RIGHT TO PARTICIPATE AS A PLAINTIFF OR CLASS MEMBER IN ANY CLASS ACTION. YOU AND THE COMPANY EXPRESSLY WAIVE ANY ABILITY TO MAINTAIN A CLASS ACTION IN ANY FORUM. IF THE DISPUTE IS SUBJECT TO ARBITRATION, THE ARBITRATOR WILL NOT HAVE THE AUTHORITY TO COMBINE OR AGGREGATE CLAIMS, CONDUCT A CLASS ACTION, OR MAKE AN AWARD TO ANY PERSON OR ENTITY NOT A PARTY TO THE ARBITRATION. FURTHER, YOU AND THE COMPANY AGREE THAT THE ARBITRATOR MAY NOT CONSOLIDATE PROCEEDINGS FOR MORE THAN ONE PERSON'S CLAIMS, AND IT MAY NOT OTHERWISE PRESIDE OVER ANY FORM OF A CLASS ACTION. FOR THE AVOIDANCE OF DOUBT, HOWEVER, YOU CAN SEEK PUBLIC INJUNCTIVE RELIEF TO THE EXTENT AUTHORIZED BY LAW AND CONSISTENT WITH THE EXCEPTIONS CLAUSE ABOVE. IF THIS CLASS ACTION WAIVER IS LIMITED, VOIDED, OR FOUND UNENFORCEABLE, THEN, UNLESS THE PARTIES MUTUALLY AGREE OTHERWISE, THE PARTIES' AGREEMENT TO ARBITRATE SHALL BE NULL AND VOID WITH RESPECT TO SUCH PROCEEDING SO LONG AS THE PROCEEDING IS PERMITTED TO PROCEED AS A CLASS ACTION. IF A COURT DECIDES THAT THE LIMITATIONS OF THIS PARAGRAPH ARE DEEMED INVALID OR UNENFORCEABLE, ANY PUTATIVE CLASS, PRIVATE ATTORNEY GENERAL OR CONSOLIDATED OR REPRESENTATIVE ACTION MUST BE BROUGHT IN A COURT OF PROPER JURISDICTION AND NOT IN ARBITRATION. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/terms-of-service#id-9.-additional-provisions) 9\. Additional Provisions #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/terms-of-service#id-9.1-updating-these-terms) 9.1 Updating These Terms We may modify these Terms from time to time in which case we will update the "Last Revised" date at the top of these Terms. If we make changes that are material, we will use reasonable efforts to attempt to notify you, such as by e-mail and/or by placing a prominent notice on the first page of the Website. However, it is your sole responsibility to review these Terms from time to time to view any such changes. The updated Terms will be effective as of the time of posting, or such later date as may be specified in the updated Terms. Your continued access or use of the Services after the modifications have become effective will be deemed your acceptance of the modified Terms. No amendment shall apply to a dispute for which an arbitration has been initiated prior to the change in Terms. #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/terms-of-service#id-9.2-suspension-termination) 9.2 Suspension; Termination If you breach any of the provisions of these Terms, all licenses granted by the Company will terminate automatically. Additionally, the Company may, in its sole discretion, suspend or terminate your access to or use of any of the Services, with or without notice, for any or no reason, including, without limitation, (i) if we believe, in our sole discretion, you have engaged in any of the prohibited activities set forth in Section 4.2; (ii) if you provide any incomplete, incorrect or false information to us; (iii) if you have breached any portion of these Terms; (iv) if you are a Prohibited Person and/or reside in a Prohibited Jurisdiction; and/or (v) if we determine such action is necessary to comply with these Terms, any of our policies, procedures or practices, or any law rule or regulation. All sections which by their nature should survive the termination of these Terms shall continue in full force and effect subsequent to and notwithstanding any termination of this Agreement by the Company or you. Termination will not limit any of the Company's other rights or remedies at law or in equity. #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/terms-of-service#id-9.3-injunctive-relief) 9.3 Injunctive Relief You agree that a breach of these Terms will cause irreparable injury to the Company for which monetary damages would not be an adequate remedy and the Company shall be entitled to equitable relief in addition to any remedies it may have hereunder or at law without a bond, other security or proof of damages. #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/terms-of-service#id-9.4-force-majeure) 9.4 Force Majeure We will not be liable or responsible to you, nor be deemed to have defaulted under or breached these Terms, for any failure or delay in fulfilling or performing any of our obligations under these Terms or in providing the Services, when and to the extent such failure or delay is caused by or results from any events beyond our ability to control, including acts of God; flood, fire, earthquake, epidemics, pandemics, tsunami, explosion, war, invasion, hostilities (whether war is declared or not), terrorist threats or acts, riot or other civil unrest, government order, law, or action, embargoes or blockades, strikes, labor stoppages or slowdowns or other industrial disturbances, shortage of adequate or suitable Internet connectivity, telecommunication breakdown or shortage of adequate power or electricity, and other similar events beyond our control. #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/terms-of-service#id-9.5-miscellaneous) 9.5 Miscellaneous If any provision of these Terms shall be unlawful, void or for any reason unenforceable, then that provision shall be deemed severable from these Terms and shall not affect the validity and enforceability of any remaining provisions. These Terms and the licenses granted hereunder may be assigned by the Company but may not be assigned by you without the prior express written consent of the Company. No waiver by either party of any breach or default hereunder shall be deemed to be a waiver of any preceding or subsequent breach or default. The section headings used herein are for reference only and shall not be read to have any legal effect. The Services are operated by us in the British Virgin Islands. Those who choose to access the Services from locations outside the British Virgin Islands do so at their own initiative and are responsible for compliance with applicable local laws. These Terms are governed by the laws of the British Virgin Islands, without regard to conflict of laws rules, and the proper venue for any disputes arising out of or relating to any of the same will be the courts in the British Virgin Islands. #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/terms-of-service#id-9.6-how-to-contact-us) 9.6 How to Contact Us You may contact us regarding the Services or these Terms by e-mail at legal@mainstreet.finance. [PreviousPrivacy Policy](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/privacy-policy) [NextmsUSD and smsUSD Terms and Conditions - EEA](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-eea) Last updated 6 months ago * [1\. The Services](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/terms-of-service#id-1.-the-services) * [2\. Who May Use the Services](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/terms-of-service#id-2.-who-may-use-the-services) * [3\. Location of Our Privacy Policy](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/terms-of-service#id-3.-location-of-our-privacy-policy) * [4\. Rights We Grant You](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/terms-of-service#id-4.-rights-we-grant-you) * [5\. Ownership and Content](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/terms-of-service#id-5.-ownership-and-content) * [6\. Third Party Services and Materials](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/terms-of-service#id-6.-third-party-services-and-materials) * [6A. Third-Party Partner Protocols](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/terms-of-service#id-6a.-third-party-partner-protocols) * [7\. Disclaimers, Limitations of Liability and Indemnification](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/terms-of-service#id-7.-disclaimers-limitations-of-liability-and-indemnification) * [8\. ARBITRATION AND CLASS ACTION WAIVER](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/terms-of-service#id-8.-arbitration-and-class-action-waiver) * [9\. Additional Provisions](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/terms-of-service#id-9.-additional-provisions) --- # msUSD and smsUSD Mint User Agreement - Non EEA | Mainstreet.Finance Last Updated: June 11th, 2025 This msUSD and smsUSD Mint User Agreement (this "Agreement") is a contract between you ("you" or a "Mint User") and Main St Finance Ltd (referred to herein as "Main St Finance," "Mainstreet BVI," "the Company," "we," "us," or "our"). If you are a user outside the EEA, this Agreement applies to your use of Main St Finance-related products and services (the "Services") on the Company platform (the "Platform" or "Company"). The msUSD Terms apply to your msUSD, smsUSD and your status as a Mint User, as applicable, as defined in the msUSD Terms. From and after the date set forth above, this Agreement shall govern your use of any Company products or Services. For the avoidance of doubt, your access to the Services is contingent on your status as a Mint User, as defined herein. By registering as a Mint User or using any of the Services, you agree that you have read, understood and accept all of the terms and conditions contained in this Agreement as well as the Privacy Policy, Cookie Policy, and other policies, and you acknowledge and agree that you will be bound by these agreements and policies. Note that this Agreement uses the term "Digital Currency" to refer to msUSD or any other digital currencies, cryptocurrencies, virtual currencies, or digital assets. For the avoidance of doubt, where used herein, the term "funds" includes Digital Currency. Please note that Section 20 contains an arbitration clause and collective or class action waiver. By agreeing to this Agreement, you agree to resolve all disputes, except as otherwise set forth in Section 20, through binding individual arbitration, which means that you waive any right to have the dispute decided by a judge or jury, and you waive any right to participate in collective action, whether that be a class action, class arbitration, or representative action. Section 21 of this Agreement governs how this Agreement may be changed over time; the date of the last update is set forth at the top of this Agreement. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-1.-eligibility-limitations-registration-process-identity-verification) **1\. Eligibility; Limitations; Registration Process; Identity Verification** **Eligibility; Limitations** The Platform and the Services are currently only available to users located in supported jurisdictions. In registering to use the Company Services as a Mint User on behalf of an entity, you represent and warrant that (i) such legal entity is duly organized and validly existing under the applicable laws of the jurisdiction of its organization; (ii) you are duly authorized by such legal entity to act on its behalf, and (iii) such organization (and any affiliate entity) must not have been previously suspended or removed from the Services or any other service or product offered by the Company or its affiliate entities. Use of certain Services may have further eligibility requirements that will need to be verified prior to you using such Services or from time to time in order to continue your use of the Services and may be subject to additional terms and conditions. By using your status as a Mint User and the Services, you further represent and warrant that: * you are at least 18 years old and are not a Restricted Person, nor are you resident of a Restricted Territory (each as defined in Section 27 below). * you will not be using your status as a Mint User and Services for any illegal activity, including, but not limited to, illegal gambling, money laundering, fraud, blackmail, extortion, ransoming data, terrorism financing, other violent activities or any prohibited market practices, including, but not limited to, those listed in the msUSD Terms and Conditions. You also understand that there are additional representations and warranties made by you elsewhere in (or by reference in) this Agreement and that any misrepresentation by you is a violation of this Agreement. Users in the United States are not eligible to become a Mint User. This restriction may be revisited from time to time taking into account relevant changes in law. When you register as a Mint User, you will be required to designate an administrator for your registration and provide a wallet address to be whitelisted. The Company may, in its discretion, enable functionality utilizing your status as a Mint User and some or all of the Services to other persons at your firm (e.g. your employees) (such persons, "Additional Users"). Such access is subject to the Company's review and approval, and such Additional Users' agreement to all of the terms hereof. To the extent that you choose to have Additional Users have access and control over the Mint User profile and relationship, you will have to designate those Additional Users and manage their access to your Mint User whitelisted wallets. By you requesting such access, you and all Additional Users automatically agree to this Agreement. If the Company determines that you or any of your Additional Users have violated this Agreement, including, but not limited to, transacting with Blocked Addresses (as defined in the msUSD Terms and Conditions) or engaging in Restricted Activities or Prohibited Transactions then the Company may be forced to terminate your status as a Mint User. Notwithstanding the foregoing, the Company may determine not to make the Services, in whole or in part, available in every market, either in its sole discretion or due to legal or regulatory requirements, depending on your location. We may also, without liability to you or any third party, refuse to let you register as a Mint User in the Company's sole discretion. **Registration Process; Identity Verification** When registering as a Mint User, you must provide current, complete, and accurate information for all required elements on the registration page or via any third-party service providers (e.g., KYC/KYB information collection and screening providers), including your full legal name and the legal name of your organization. You also agree to provide us, when registering as a Mint User and on an ongoing basis, any additional information we request for the purposes of identity verification and the detection of money laundering, terrorist financing, fraud, or any other financial crime. You permit us to keep a record of such information and authorize us to make the inquiries, whether directly or through third parties, that we consider necessary or desirable to verify your identity or protect you and/or us against fraud or other financial crime, and to take action we reasonably deem necessary based on the results of such inquiries. When we carry out these inquiries, you understand, acknowledge and agree that your personal information may be disclosed to credit reference and fraud prevention or financial crime agencies and that these agencies may respond to our inquiries in full. In certain circumstances, we may require you to submit additional information about yourself or your business, provide records, and complete other verification steps (such process, "Enhanced Due Diligence"). You represent and warrant that all information provided to us pursuant to this Agreement is true, accurate and not misleading in any respect. If any such information changes, it is your obligation to update such information as soon as possible. From time to time we may be required to request further information or review or update existing information regarding your registration or your transactions to comply with applicable laws and regulation, and in some cases, payment network. Failure to provide such information, if requested by the Company, in a timely fashion may result in the suspension of your ability to use the Services (until you provide such information) or the termination of your status as a Mint User. We reserve the right to maintain your registration information after you terminate your status as a Mint User for business and regulatory compliance purposes, subject to applicable laws and regulation. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-2.-services) **2\. Services** The Company offers the following Services in connection with your status as a Mint User: The Company provides msUSD-related services, which include: * Minting and redeeming msUSD tokens * Staking msUSD to receive smsUSD tokens that accrue yield * Unstaking smsUSD to receive msUSD tokens * Options arbitrage and other delta-neutral strategies as described more fully in Section 10 and in the msUSD Terms The msUSD Terms are incorporated herein by reference. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-3.-custody) **3\. Custody** The Company does not provide any custody services with respect to msUSD, smsUSD or any other assets. Additionally, for the avoidance of doubt, the Company is not a fiduciary, and the Company does not provide any trust or fiduciary services to any User in the course of such User visiting, accessing, or using the Company website or services, including, for the avoidance of doubt, holding msUSD or smsUSD. Legal title to the reserves associated with msUSD are held by the Company, which administers the assets accordingly. These reserves are utilized in options arbitrage and other delta-neutral strategies to generate yield for the protocol while maintaining stability of msUSD value. The yield generated by these strategies is distributed to users who stake their msUSD to receive smsUSD, with the exchange rate between msUSD and smsUSD reflecting the accumulated yield. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-4.-no-investment-advice) **4\. No Investment Advice** The Company does not provide investment, tax, or legal advice, nor does the Company broker trades on your behalf. You should consult your legal or tax professional regarding your specific situation. While the Company employs sophisticated options arbitrage and other delta-neutral strategies to generate yield, these strategies do not constitute investment advice, and no information regarding these strategies should be considered as a recommendation to engage in any particular investment strategy. The decision to stake msUSD to receive smsUSD is entirely at your discretion, and the Company makes no recommendations regarding whether or when to stake or unstake. The exchange rate between msUSD and smsUSD reflects accumulated yield but does not guarantee future performance. The Company may provide educational information about msUSD, smsUSD and other Digital Currency not supported by the Company. Information may include, but is not limited to, blog posts, articles, links to third-party content, news feeds, tutorials, and videos. The information provided on this website or any third-party sites does not constitute investment advice, financial advice, trading advice, or any other sort of advice, and you should not treat any of the website's content as such. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-5.-privacy) **5\. Privacy** We are committed to protecting your personal information and helping you understand exactly how your personal information is being used. You should carefully read the Privacy Policy as it provides details on how your personal information is collected, stored, protected, and used. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-6.-communications) **6\. Communications** By entering into this Agreement, you agree to receive electronic communications and notifications in accordance with our E-Sign Consent Policy, as detailed in the msUSD Terms. This Agreement is provided to you and communicated in English. We will also communicate with you in English for all matters related to your use of the Services. Where we have provided you with a translation of the English language version of this Agreement or any information related to your status as a Mint User, you acknowledge and agree that such translation is provided for your convenience only and that the English language version of the Agreement will govern your use of the Services. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-7.-security-of-user-information) **7\. Security of User Information** You are responsible for maintaining the confidentiality and security of all account names, User IDs, passwords, seed phrases, private keys, personal identification numbers (PINs) and other access codes that you use to access the Services. You are responsible for keeping your email address and all other access and User information up to date with us and for maintaining the confidentiality of your User information. You agree to (i) notify the Company immediately if you become aware of any unauthorized use of your registration as a Mint User, the Services, or any other breach of security regarding the Services or the Platform. We strongly advise you to enable all security features that are available to you (such as, by way of example, using hardware wallets to secure private keys); this offers you enhanced protection from possible malicious attacks. The Company will not be liable for any loss or damage arising from your failure to protect your registration information or private keys. We shall not bear any liability for any damage or interruptions caused by any computer viruses, spyware, or other malware that may affect your computer or other equipment, or any phishing, spoofing, or other attack. We recommend the regular use of a reliable virus and malware screening and prevention software. If you question the authenticity of a communication purporting to be from the Company, you should contact a representative directly. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-8.-suspension-and-closure) **8\. Suspension & Closure** We may, without liability to you or any third party, suspend your status as a Mint User or terminate your status as a Mint User or suspend your use of one or more of the Services in accordance with the terms of this Agreement, as determined in our sole and absolute discretion. Such actions may be taken as a result of inactivity, failure to respond to customer support requests, failure to positively identify you, a court order, your violation of the terms of this Agreement or for other similar reasons. The Company may also temporarily suspend your status as a Mint User in the event that a technical problem causes system outage or the Company errors until the problem is resolved. For the avoidance of doubt, in the event your status as a Mint User is suspended or closed, you will no longer be able to access any of the Services. You may terminate this Agreement at any time by terminating your status as a Mint User in accordance with this Agreement. In order to do so, you should contact the Company's "Support Team" who will assist you in terminating your status as a Mint User. You may not terminate your status as a Mint User if the Company believes, in its sole discretion, that such termination is being performed in an effort to evade a court order or legal or regulatory investigation or to avoid paying any amounts otherwise due to the Company. Upon closure or suspension of your status as a Mint User, you authorize the Company to cancel or suspend pending transactions and forfeit all proprietary rights and claims against the Company in relation to any assets otherwise eligible for redemption. In the event that you or the Company terminates this Agreement or your access to the Services, or cancels your status as a Mint User, you remain liable for all activity conducted on or with your status as a Mint User while it was active and for all amounts due hereunder. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-9.-fees) **9\. Fees** The Company may charge fees in connection with the Services, which will typically not represent fees for the Company's own account and will constitute reimbursements for costs associated with transactions initiated by you, such as blockchain gas fees and execution fees. You agree to pay the fees shown to you, if any, or as separately agreed between you and the Company, when you enter into a transaction. Fees are generally disclosed prior to your confirmation of any transaction with the Company; we may change any of the fees that the Company charges at any time, with or without notice. The applicable Digital Currency network may charge a fee in connection with blockchain transactions. You are responsible for all such fees. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-10.-applicable-msusd-terms) **10\. Applicable msUSD Terms** To the extent that you utilize your status as a Mint User for any transaction or service involving msUSD or smsUSD to which the Company is a counterparty, the msUSD Terms shall apply to all such transactions and such agreement. The staking of msUSD to receive smsUSD and the unstaking of smsUSD to receive msUSD are subject to the specific terms outlined in the msUSD Terms, including but not limited to provisions regarding exchange rates, processing periods, and yield distributions. Notwithstanding anything to the contrary set forth in this Agreement or otherwise, in the event of a conflict between any term set forth herein and any term set forth in the msUSD Terms, (i) in connection with any msUSD or smsUSD transaction, the terms of the msUSD Terms shall control, and (ii) in respect of any other Digital Currency transaction, the terms of this Agreement shall control. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-11.-mobile-services) **11\. Mobile Services** To the extent you access the Services through a mobile device, your wireless service carrier's standard charges, data rates, and other fees may apply. In addition, downloading, installing, or using certain mobile applications may be prohibited or restricted by your carrier, and not all Services may work with all carriers or devices. By using mobile Services, you agree that we may communicate with you by SMS, MMS, text message, push notification, and/or other electronic means via your mobile device ("Mobile Messaging") and that certain information about your usage of the Services may be communicated to us. In the event that you change or deactivate your mobile telephone number, you agree to promptly update your registration information to ensure that your messages are not sent to any person who might acquire your old number. You may receive messages related to the Services or your status as a Mint User via Mobile Messaging. Message and data rates may apply. Reply STOP to any such Mobile Message to Cancel and unsubscribe. For help, please contact the Support Team. You hereby confirm that with respect to any mobile phone number provided, you own the account corresponding to that mobile phone number or otherwise have the account holder's permissions to use this service. By registering a mobile phone number you are agreeing to the specific terms set forth in this Section 11. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-12.-transaction-limits) **12\. Transaction Limits** The Company reserves the right to change the mint, redemption, staking, unstaking, transfer, and velocity limits as we deem necessary. We may establish individual or aggregate transaction limits on the size or number of mints, redemptions, stakes, unstakes, transfers or other transactions that you initiate using your status as a Mint User during any specified time period. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-13.-right-to-change-remove-features-or-suspend-delay-transactions) **13\. Right to Change/Remove Features or Suspend/Delay Transactions** Subject to Section 14 of the msUSD Terms, we reserve the right to change, suspend, or discontinue any aspect of the Services or the Platform at any time, including hours of operation or availability of any feature, without notice and without liability. We may, in our sole discretion, delay any transaction if we believe that such transaction is suspicious, may involve fraud or misconduct, violates applicable laws or payment network rules, or violates any term of this Agreement. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-14.-insufficient-funds) **14\. Insufficient Funds** If you have insufficient funds in your whitelisted wallet associated with your status as a Mint User to complete a transaction (including but not limited to minting, redeeming, staking, or unstaking), such transaction will not be completed. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-15.-refunds-reversals) **15\. Refunds; Reversals** Once a transaction has been initiated (including, but not limited to, a Digital Currency Transfer), it cannot be reversed or refunded, except as set forth in this Agreement. You may have additional refund or chargeback rights under your agreement with the recipient of such funds, your financial institution, or applicable law. You should periodically review statements from your financial institution and any other service that you use to transact Digital Currency, which should reflect all applicable transactions made using the related transaction method. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-16.-taxes) **16\. Taxes** It is your responsibility to determine what, if any, taxes apply to the payments you make or receive, and to collect, report, and remit the correct tax to the appropriate tax authority. The Company is not responsible for determining whether taxes apply to your transaction, or for collecting, reporting, or remitting any taxes arising from any transaction. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-17.-indemnification-release) **17\. Indemnification; Release** You agree to indemnify and hold the Company, its affiliates, and service providers, and each of their officers, directors, agents, joint venturers, employees, and representatives harmless from any claim or demand (including attorneys' fees and any losses, fines, fees or penalties imposed by any regulatory authority) arising out of your breach of this Agreement, your violation of any law or regulation or your use of the Services. For the purpose of this Section 17, the term "losses" means all net costs reasonably incurred by us or the other persons referred to in this Section which are the result of the matters set out in this Section and which may relate to any claims, demands, causes of action, debt, cost, expense or other liability, including reasonable legal fees (without duplication). If you have a dispute with one or more Users or third parties, you release the Company (and its affiliates and service providers, and each of their officers, directors, agents, joint ventures, employees and representatives) from all claims, demands, and damages (actual and consequential) of every kind and nature arising out of or in any way connected with such disputes. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-18.-limitation-of-liability-no-warranty) **18\. Limitation of Liability; No Warranty** YOU EXPRESSLY UNDERSTAND AND AGREE THAT THE COMPANY AND OUR AFFILIATES AND SERVICE PROVIDERS, AND THEIR RESPECTIVE OFFICERS, DIRECTORS, AGENTS, JOINT VENTURERS, EMPLOYEES, AND REPRESENTATIVES WILL NOT BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, EXEMPLARY DAMAGES, OR DAMAGES FOR LOSS OF PROFITS INCLUDING BUT NOT LIMITED TO, DAMAGES FOR LOSS OF GOODWILL, USE, DATA, OR OTHER INTANGIBLE LOSSES (EVEN IF THE COMPANY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES), WHETHER BASED ON CONTRACT, TORT, NEGLIGENCE, STRICT LIABILITY, OR OTHERWISE, RESULTING FROM: (I) THE USE OR THE INABILITY TO USE THE SERVICES; (II) THE COST OF PROCUREMENT OF SUBSTITUTE GOODS AND SERVICES RESULTING FROM ANY GOODS, DATA, INFORMATION, OR SERVICES PURCHASED OR OBTAINED OR MESSAGES RECEIVED OR TRANSACTIONS ENTERED INTO THROUGH OR FROM THE SERVICES; (III) UNAUTHORIZED ACCESS TO OR ALTERATION OF YOUR TRANSMISSIONS OR DATA; OR (IV) ANY OTHER MATTER RELATING TO THE SERVICES. SOME JURISDICTIONS DO NOT ALLOW THE EXCLUSION OF CERTAIN WARRANTIES OR THE LIMITATION OR EXCLUSION OF LIABILITY FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES. ACCORDINGLY, SOME OF THE LIMITATIONS SET FORTH ABOVE MAY NOT APPLY TO YOU. IF ANY PROVISION OF THIS SECTION CANNOT BE GIVEN FULL EFFECT UNDER THE LAWS OF YOUR JURISDICTION, REVIEWING COURTS SHALL APPLY LOCAL LAW THAT MOST CLOSELY APPROXIMATES THE INTENDED ECONOMIC EFFECT OF SUCH PROVISION, INCLUDING AN ABSOLUTE WAIVER OF ALL CIVIL LIABILITY IN CONNECTION WITH THE SERVICES TO THE EXTENT PERMITTED BY LAW. IF YOU ARE DISSATISFIED WITH ANY PORTION OF THE SERVICES OR WITH THIS AGREEMENT, YOUR SOLE AND EXCLUSIVE REMEDY IS TO DISCONTINUE USE OF THE SERVICES AND TERMINATE YOUR STATUS AS A MINT USER. THE SERVICES ARE PROVIDED "AS IS" AND WITHOUT ANY REPRESENTATION OR WARRANTY, WHETHER EXPRESS, IMPLIED OR STATUTORY. THE COMPANY, OUR AFFILIATES, AND OUR RESPECTIVE OFFICERS, DIRECTORS, AGENTS, JOINT VENTURERS, EMPLOYEES, AND SUPPLIERS SPECIFICALLY DISCLAIM ANY IMPLIED WARRANTIES OF TITLE, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR NON-INFRINGEMENT. THIS INCLUDES, WITHOUT LIMITATION, ANY WARRANTY REGARDING THE PERFORMANCE OF OPTIONS ARBITRAGE OR OTHER DELTA-NEUTRAL STRATEGIES EMPLOYED BY THE COMPANY, THE ABILITY OF SUCH STRATEGIES TO GENERATE CONSISTENT RETURNS OR MAINTAIN STABILITY OF MSUSD VALUE, OR THE EXCHANGE RATE BETWEEN MSUSD AND SMSUSD. THE COMPANY MAKES NO GUARANTEES REGARDING SPECIFIC YIELD RATES OR THE TIMELY PROCESSING OF STAKING OR UNSTAKING TRANSACTIONS. The Company will make reasonable efforts to ensure that requests for the Company transactions are processed in a timely manner, but the Company makes no representations or warranties regarding the amount of time needed to complete processing because the Services are dependent upon many factors outside of our control, such as delays in the banking system or international mail service. Some jurisdictions do not allow the disclaimer of implied warranties, so the foregoing disclaimers may not apply to you. This Section gives you specific legal rights and you may also have other legal rights that vary from jurisdiction to jurisdiction. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-19.-right-to-set-off) **19\. Right to Set Off** The Company may and is authorized, without prior notice and both before and after demand, to set off the whole or any part of your liabilities or other amounts payable to the Company, including but not limited to fees, whether such amounts are present or future, actual or contingent, or liquidated or unliquidated, against any sums held by the Company and owed to you, whether under this Agreement or any other agreement between the Company and you. For the purpose of exercising its rights under this Section: (i) the Company is entitled to convert and/or exchange any Supported Digital Currency owned by you and held by the Company, and is authorized to effect any such conversions at the then prevailing exchange rate; and (ii) if your liability is contingent and/or unliquidated, then the Company may set off the amount it estimates in good faith will be the liquidated amount. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-20.-arbitration) **20\. Arbitration** Except for claims for injunctive or equitable relief or claims regarding intellectual property rights (which may be brought, in an individual capacity only, and not on a class-wide or representative basis, in the courts specified in Section 28 without the posting of a bond), any dispute between you and the Company related in any way to, or arising in any way from, our Services or this Agreement ("Dispute") shall be finally settled on an individual, non-representative basis in binding arbitration in accordance with the BVI IAC Arbitration Rules, as modified by this Agreement, or in accordance with rules on which we may mutually agree in writing; provided, however, that to the extent a Dispute is within the scope of a small claims court's jurisdiction, either you or the Company may commence an action in small claims court, in the jurisdiction of your most recent physical address, to resolve the Dispute. Any arbitration will be conducted by a single, neutral arbitrator and shall take place in Road Town, Tortola, British Virgin Islands, unless we agree otherwise. The arbitrator may award any relief that a court of competent jurisdiction could award, including attorneys' fees when authorized by law. The arbitral decision may be enforced in any court of competent jurisdiction. An arbitral decision is subject to very limited review by a court. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-21.-amendments) **21\. Amendments** The Company may amend any portion of this Agreement at any time by posting the revised version of this Agreement with an updated revision date. The changes will become effective, and shall be deemed accepted by you, the first time you use the Services after the initial posting of the revised Agreement and shall apply on a going-forward basis with respect to transactions initiated after the posting date. In the event that you do not agree with any such modification, your sole and exclusive remedy is to terminate your use of the Services and terminate your status as a Mint User. You agree that we shall not be liable to you or any third party as a result of any losses suffered by any modification or amendment of this Agreement. If the revised Agreement includes a material change, we will provide you with prior notice via our website and/or email before the material change becomes effective. For this purpose a "material change" means a significant change other than changes that (i) are to your benefit, (ii) are required to be made (a) to comply with applicable laws and/or regulations, (b) to comply with a payment network, or (c) as otherwise required by one of our regulators, (iii) relates to a new product or service made available to you, or (iv) to otherwise clarify an existing term. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-22.-assignment) **22\. Assignment** You may not transfer or assign this Agreement or any rights or obligations hereunder, by operation of law or otherwise and any such attempted assignment shall be void. We reserve the right to freely assign this Agreement and the rights and obligations of this Agreement to any third party at any time without notice or consent. If you object to such transfer or assignment, you may stop using our Services and terminate this Agreement by contacting the Company's Support Team and asking us to terminate your status as a Mint User. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-23.-change-of-control) **23\. Change of Control** In the event that the Company is acquired by or merged with a third party entity, we reserve the right, in any of these circumstances, to transfer or assign the information we have collected from you as part of such merger, acquisition, sale, or other change of control. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-24.-survival-force-majeure) **24\. Survival; Force Majeure** Upon termination of your status as a Mint User or this Agreement for any reason, all rights and obligations of the parties that by their nature are continuing will survive such termination. The Company shall have no liability for any failure or delay resulting from any condition beyond our reasonable control, including but not limited to governmental action or acts of terrorism, pandemics, earthquake, fire, flood, or other acts of God, labor conditions, power failures, equipment failures, and Internet disturbances. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-25.-website-third-party-content) **25\. Website; Third Party Content** The Company strives to provide accurate and reliable information and content on the Company website, but such information may not always be correct, complete, or up to date. The Company will update the information on the Company website as necessary to provide you with the most up to date information, but you should always independently verify such information. The Company website may also contain links to third party websites, applications, events or other materials ("Third Party Content"). Such information is provided for your convenience and links or references to Third Party Content do not constitute an endorsement by the Company of any products or services. The Company shall have no liability for any losses incurred as a result of actions taken in reliance on the information contained on the Company website or in any Third Party Content. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-26.-limited-license-ip-rights) **26\. Limited License; IP Rights** We grant you a limited, non-exclusive, non-sublicensable, and non-transferable license, subject to the terms and conditions of this Agreement, to access and use the Services solely for approved purposes as determined by the Company. Any other use of the Services or the Platform is expressly prohibited. The Company and its licensors reserve all rights in the Services and you agree that this Agreement does not grant you any rights in or licenses to the Services except for the limited license set forth above. Except as expressly authorized by the Company, you agree not to modify, reverse engineer, copy, frame, scrape, rent, lease, loan, sell, distribute, or create derivative works based on the Services or the Platform, in whole or in part. If you violate any portion of this Agreement, your permission to access and use the Services and your status as a Mint User may be terminated pursuant to this Agreement. "mainstreet.finance", "the Company", and all logos related to the Services are either trademarks, or registered marks of the Company or its licensors. You may not copy, imitate, or use them without the Company's prior written consent. All right, title, and interest in and to the Company website, any content thereon, the Services, and all technology and any content created or derived from any of the foregoing is the exclusive property of the Company and its licensors. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-27.-applicable-law-legal-compliance) **27\. Applicable Law; Legal Compliance** Your use of the Services is subject to the laws, regulations, and rules of any applicable governmental or regulatory authority, including, without limitation, all applicable tax, anti-money laundering ("AML") and counter-terrorist financing ("CTF") provisions. You unequivocally agree and understand that by registering as a Mint User and using the Services in any capacity, you will act in compliance with and be legally bound by this Agreement and all applicable laws and regulations (including, without limitation, those stated in this Section 27, where applicable). For the avoidance of doubt, continued use of your status as a Mint User and the Company's obligations to you under this Agreement are conditional on your continued compliance at all times with this Agreement and all applicable laws and regulations. The Company's AML and CTF procedures are guided by all applicable laws and regulations regarding AML and CTF. These standards are designed to prevent the use of the Services for money laundering or terrorist financing activities. We take compliance very seriously and it is our policy to take all necessary steps to prohibit fraudulent transactions, report suspicious activities, and actively engage in the prevention of money laundering and any related acts that facilitate money laundering, terrorist financing or any other financial crimes. You agree, represent, and warrant that all funds transacted as a Mint User, or funds deposited by you with the Company in the future, are not the direct or indirect proceeds of any criminal or fraudulent activity. The Services are subject to economic sanctions programs administered in the countries where we conduct business, including but not limited to those administered by the U.S. Department of Treasury's Office of Foreign Assets Control ("OFAC"), pursuant to which we are prohibited from providing services or entering into relationships with certain individuals and institutions. By using the Services, you represent that your actions are not in violation of such sanctions programs. Without limiting the foregoing, you may not use the Services if (i) you are a resident, national or agent of a jurisdiction subject to comprehensive sanctions by OFAC ("Restricted Territories"), (ii) you are on the Table of Denial Orders, the Entity List, or the List of Specially Designated Nationals ("Restricted Persons"), or (iii) you intend to transact with any Restricted Territories or Restricted Persons. You further represent that you are not a citizen, resident, or organized in, the following jurisdictions (the "Prohibited Jurisdictions"): Abkhazia, Afghanistan, Angola, Belarus, Burundi, Central African Republic, Congo, Cuba, Crimea, Ethiopia, Guinea-Bissau, Iran, Ivory Coast (Cote D'Ivoire), Lebanon, Liberia, Libya, Mali, Burma (Myanmar), Nicaragua, North Korea, Northern Cyprus, Russia, Somalia, Somaliland, South Ossetia, South Sudan, Sudan, Syria, Ukraine (Donetsk and Luhansk regions), United States, Venezuela, Yemen, Zimbabwe. In the event that we are required to block funds associated with your registration as a Mint User in accordance with a sanctions program, or other similar government sanctions programs, we may: (i) suspend your status as a Mint User; (ii) terminate your status as a Mint User; or (iii) return funds to the destination of their origin or to an account specified by authorities. In certain cases, taking one or more of these actions may result in a forfeiture of some or all of your assets held with the Company. We are not responsible for any losses, whether direct or indirect, that you may incur as a result of our complying with applicable law and regulations, the guidance or direction of any regulatory authority or government agency, or any writ of attachment, lien, levy, subpoena, warrant, or other legal order. You understand that staking services and yield-generating mechanisms involve complex financial structures subject to specific regulations in many jurisdictions. You represent and warrant that your use of the Services, including any staking of msUSD to receive smsUSD, complies with all applicable laws and regulations in your jurisdiction. The Company makes no representation regarding the legal status of staking mechanisms or yield distribution structures in any jurisdiction and you are solely responsible for determining whether your interaction with msUSD and smsUSD, which involve staking and yield accrual mechanisms, is compliant with laws applicable to you. You understand that options trading and options arbitrage strategies involve complex financial instruments subject to specific regulations in many jurisdictions. You represent and warrant that your use of the Services, including any interaction with financial products or strategies involving options or derivatives, complies with all applicable laws and regulations in your jurisdiction. The Company makes no representation regarding the legal status of options-based strategies in any jurisdiction and you are solely responsible for determining whether your interaction with msUSD, which is backed by reserves employing options strategies, is compliant with laws applicable to you. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-28.-governing-law-venue) **28\. Governing Law; Venue** The laws of the British Virgin Islands shall govern this Agreement. Except for those disputes that shall be resolved in arbitration or in small claims court, each party agrees to submit to the personal and exclusive jurisdiction of the courts located in the British Virgin Islands, provided that any claims or disputes shall be subject to the arbitration provisions set forth in Section 20. You agree with us that, if you are a consumer, the courts in the permitted region where you are resident will have non-exclusive jurisdiction. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-29.-entire-agreement) **29\. Entire Agreement** The failure of the Company to exercise or enforce any right or provision of the Agreement shall not constitute a waiver of such right or provision. If any provision of this Agreement shall be adjudged by any court of competent jurisdiction to be unenforceable or invalid, that provision shall be limited or eliminated to the minimum extent necessary so that this Agreement shall otherwise remain in full force and effect and remain enforceable between the parties, except as specified in Section 25. The headings and explanatory text are for reference purposes only and in no way define, limit, construe, or describe the scope or extent of such section. This Agreement, including any additional agreement incorporated by reference herein; the Company's policies governing the Services referenced herein (including, without limitation, those set forth in the msUSD Terms); the Company Privacy Policy and the Cookie Policy constitute the entire agreement between you and the Company with respect to the use of the Services. This Agreement is not intended and shall not be construed to create any rights or remedies in any parties other than you and the Company and other the Company affiliates which each shall be a third-party beneficiary of this Agreement, and no other person shall assert any rights as a third-party beneficiary hereunder. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-30.-user-support) **30\. User Support** Please contact our Support Team to report any violations of this Agreement or to ask any questions regarding this Agreement or the Services. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-31.-third-party-intermediaries-and-partners) **31\.** Third-Party Intermediaries and Partners The Company may work with third-party intermediaries, partners, or service providers who facilitate access to msUSD minting and redemption services or provide interfaces for staking msUSD to receive smsUSD ("Third-Party Intermediaries"). You acknowledge and agree that: a) Third-Party Intermediaries are not agents, representatives, or affiliates of the Company unless explicitly stated otherwise in writing by the Company; b) Any interaction between you and a Third-Party Intermediary is governed by separate agreements between you and such Third-Party Intermediary; c) The Company has no control over, and assumes no responsibility for, the content, privacy policies, or practices of any Third-Party Intermediary; d) The Company is not liable for any damage or loss that may result from your interactions with Third-Party Intermediaries, including but not limited to: * Any misrepresentation or incorrect information provided by Third-Party Intermediaries * Any technical issues, delays, or failures in Third-Party Intermediary systems * Any unauthorized access to your information through a Third-Party Intermediary * Any breach of applicable laws or regulations by a Third-Party Intermediary * Any financial losses resulting from transactions facilitated by a Third-Party Intermediary e) Third-Party Intermediaries may impose their own fees, requirements, or restrictions, which are separate from and in addition to any terms or conditions imposed by the Company; f) The availability of any Third-Party Intermediary does not imply endorsement, verification, or approval of such intermediary by the Company; g) The Company reserves the right to restrict or prohibit any Third-Party Intermediary from accessing or interfacing with the Services at any time in its sole discretion. You are solely responsible for verifying the legitimacy, reliability, and security of any Third-Party Intermediary before engaging with them. The Company strongly recommends that you review any applicable terms, privacy policies, and security practices of Third-Party Intermediaries before providing any personal information or engaging in any transactions. [PreviousmsUSD and smsUSD Terms and Conditions - Non EEA](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea) Last updated 6 months ago * [1\. Eligibility; Limitations; Registration Process; Identity Verification](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-1.-eligibility-limitations-registration-process-identity-verification) * [2\. Services](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-2.-services) * [3\. Custody](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-3.-custody) * [4\. No Investment Advice](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-4.-no-investment-advice) * [5\. Privacy](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-5.-privacy) * [6\. Communications](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-6.-communications) * [7\. Security of User Information](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-7.-security-of-user-information) * [8\. Suspension & Closure](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-8.-suspension-and-closure) * [9\. Fees](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-9.-fees) * [10\. Applicable msUSD Terms](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-10.-applicable-msusd-terms) * [11\. Mobile Services](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-11.-mobile-services) * [12\. Transaction Limits](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-12.-transaction-limits) * [13\. Right to Change/Remove Features or Suspend/Delay Transactions](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-13.-right-to-change-remove-features-or-suspend-delay-transactions) * [14\. Insufficient Funds](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-14.-insufficient-funds) * [15\. Refunds; Reversals](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-15.-refunds-reversals) * [16\. Taxes](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-16.-taxes) * [17\. Indemnification; Release](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-17.-indemnification-release) * [18\. Limitation of Liability; No Warranty](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-18.-limitation-of-liability-no-warranty) * [19\. Right to Set Off](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-19.-right-to-set-off) * [20\. Arbitration](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-20.-arbitration) * [21\. Amendments](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-21.-amendments) * [22\. Assignment](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-22.-assignment) * [23\. Change of Control](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-23.-change-of-control) * [24\. Survival; Force Majeure](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-24.-survival-force-majeure) * [25\. Website; Third Party Content](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-25.-website-third-party-content) * [26\. Limited License; IP Rights](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-26.-limited-license-ip-rights) * [27\. Applicable Law; Legal Compliance](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-27.-applicable-law-legal-compliance) * [28\. Governing Law; Venue](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-28.-governing-law-venue) * [29\. Entire Agreement](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-29.-entire-agreement) * [30\. User Support](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-30.-user-support) * [31\. Third-Party Intermediaries and Partners](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea#id-31.-third-party-intermediaries-and-partners) --- # msUSD and smsUSD Terms and Conditions - EEA | Mainstreet.Finance These Terms and Conditions Apply to Users in the European Economic Area Asset-Referenced Tokens - By Main St Finance Ltd Last Updated: June 11th, 2025 ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-eea#introduction) **INTRODUCTION** These msUSD and smsUSD terms and conditions, together with any schedules and policies referred to in them (together, the "Terms and Conditions" and each, a "Condition") are applicable to the msUSD Tokens and smsUSD (the "Tokens") issued by Main St Finance Ltd (the "Issuer", "we", "us", "our"). These Terms and Conditions are supplemental to the Terms of Service provided at https://docs.mainstreet.finance/resources/terms-of-service (the "Terms of Service"). Capitalized terms used in these Terms and Conditions that are not defined herein have the definitions ascribed to them in the Terms of Service. You represent that you are at least the age of majority in your jurisdiction and have the full right, power, and authority to enter into and comply with the terms and conditions of these Terms and Conditions on behalf of yourself and any company or legal entity for which you may act. If you are entering into these Terms and Conditions on behalf of an entity, you represent to us that you have the legal authority to bind such entity. You further represent that you are not (a) the subject of economic or trade sanctions administered or enforced by any governmental authority or otherwise designated on any list of prohibited or restricted parties or (b) a citizen, resident, or organized in a jurisdiction or territory that is the subject of comprehensive country-wide, territory-wide, or regional economic sanctions. Finally, you represent that you will fully comply with all applicable laws and regulations, and that you will not conduct, promote, or otherwise facilitate any illegal activity. YOU AND WE AGREE AS FOLLOWS: ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-eea#id-1.-interpretation) **1\. Interpretation** 1.1. In these Terms and Conditions, the following words and expressions have the following meanings unless inconsistent with the context: "Applicable Law(s)" means all laws, statutes, regulatory rules, and regulations that apply to the Parties in connection with these Terms and Conditions from time to time; "Blockchains" means all blockchains on which the Issuer offers to distribute Tokens, including the Ethereum blockchain and the Sonic blockchain. "Business Day" means a day on which (i) relevant commercial banks are open, and/or (ii) banks in the British Virgin Islands are open. "Greenlisted", "Greenlisting" means the completion of both the onboarding as described in Condition 2 and the KYC/AML Requirements. "Issuer" means Main St Finance Ltd, registered in the British Virgin Islands; "KYC/AML Requirements" mean the know your client and anti-money laundering processes established by the Issuer to ensure compliance with Applicable Law; "Options Arbitrage" means the primary trading strategy employed by the Issuer which involves capturing price inefficiencies between implied and realized volatility in cryptocurrency options markets through sophisticated quantitative models and hedging techniques; "Party", "Parties" you and us as the parties to these Terms and Conditions. "Token(s)" are the digital msUSD tokens distributed by the Issuer which have a smart contract that is implemented on the Blockchains. "Partner Protocols" means third-party entities that have been authorized by the Issuer to mint msUSD on behalf of users following completion of KYC/AML requirements with the Issuer. "smsUSD" means the staking token received by users when they stake msUSD tokens, representing their share of the yield-generating pool. "Staking" means the process of depositing msUSD tokens into a designated smart contract to receive smsUSD tokens, which represent a claim on the staked msUSD plus accumulated yield. "Tokenholder(s)" shall mean any person holding rightful legal ownership of the private key in relation to a Token. "Website" means www.mainstreet.finance. 1.2. In these Terms and Conditions, unless the context otherwise requires: references to these Terms and Conditions shall include any Schedules to it and references to Clauses, Sub-clauses and any Schedules are to Clauses of, Sub-clauses of, and any Schedules to these Terms and Conditions; the singular includes the plural and vice versa; "person" denotes any person, partnership, corporation or other association of whatever nature; and any references to any directive, statute, statutory instrument, laws or regulations shall be references to such directive, statute, statutory instrument, laws or regulations as from time to time amended, re-enacted or replaced and to any codification, consolidation, re-enactment or substitution thereof as from time to time in force and any reference to a regulator or public authority and rules made by it shall include its successor and rules made by the successor which replace those rules. 1.3. Headings are for convenience only and have no bearing on the interpretation of these Terms and Conditions. 1.4. Any phrase introduced by the term "include", "includes", "including", "for example", "in particular" or any similar expression will be construed as illustrative and will not limit the sense of the words preceding that term. 1.5. References to "dealing in" or "deal in" are references to any participation in crypto assets including buying, acquiring, accepting, holding, selling, staking, disposing of or otherwise making use of crypto assets. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-eea#id-2.-kyc-aml-requirements-and-onboarding-greenlisting) **2\. KYC/AML Requirements and Onboarding (Greenlisting)** 2.1. In order to purchase and/or redeem Tokens with the Issuer directly, a successful onboarding of the user and completion of the KYC/AML Requirements by the user providing all required data and including confirmation that the user is eligible is required. Alternatively, users may obtain msUSD through authorized Partner Protocols as described in Section 7A, though such users will not have direct redemption rights with the Issuer. 2.2. All natural and legal persons as well as partnerships with a legal personality are eligible to purchase and/or redeem Tokens if they are not a Prohibited Person. 2.3. The following information is required for onboarding if the user is a natural person: a) All names and surnames of the user; b) the declared place of residence including the complete address; c) the user's date of birth; d) the user's place of birth; e) the nationality of the user; f) the copy of an identity card or passport which has been issued by the competent authority to the user; g) an e-mail address of the user; and h) information to validate the source of funds / wealth. Additional information may be required in enhanced due diligence processes. 2.4. The following information will be required for onboarding, if the user is an entity or a partnership with a legal personality: a) complete legal form of the user; b) statuary, respectively the in a public registry registered, place of business of the user including the complete address; c) (if existing) the user's registry number from the commercial registry or a comparable public registry; d) name of the statutory authorized representative or representatives of the user; e) an e-mail address of the user; and f) proper corporate records such as Certificate of Incorporation or Good Standing, director's register and others. Additional information may be required in enhanced due diligence processes. 2.5. As part of the onboarding process, the user is asked to name at least one blockchain address on any of the Blockchains to which the Tokens can be transferred after successful completion of the onboarding process. Users may be asked to provide confirmation of ownership or control of each wallet. Wallet screens may be conducted as part of the onboarding process and on an ongoing basis. 2.6. In order for the onboarding to be successful it is required that the information provided by the user is a) complete; and b) that there is no indication that the user provided incorrect data. 2.7. The Issuer is entitled, but not obligated, to have the data provided during the onboarding process audited by a qualified third party. 2.8. The Issuer notifies the user if the onboarding and the completion of the KYC/AML Requirements was successful. The respective user is then considered as Greenlisted. 2.9. The user is obligated to notify the Issuer immediately if any of the information provided has changed. The Issuer may require periodic updates to information provided, during which time the user's status as Greenlisted will be probationary and may be revoked pending the outcome of such updates, or in the case where the user does not comply with requests for updated information. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-eea#id-3.-properties-of-the-tokens) **3\. Properties of the Tokens** 3.1. The Token intends to maintain a relatively stable value approximating USDC and other dollar-pegged stablecoins by utilizing options arbitrage and other delta-neutral strategies. The Token derives its relative peg stability primarily from options-based trading strategies that capitalize on inefficiencies between implied and realized volatility, as well as other delta-neutral approaches with respect to the underlying reserve assets consisting of Bitcoin, Ethereum, or Sonic tokens provided by Greenlisted users. These strategies are described in more detail at [https://docs.mainstreet.finance](https://docs.mainstreet.finance/) . 3.2. Tokens are created on basis of the blockchain technology as units of value on any of the Blockchains being directly transferable between users following distribution by the Issuer. 3.3. The Tokens are not designed to intrinsically create returns for Tokenholders, increase in value, or otherwise accrue financial benefit to Tokenholders. In order to earn yield, Tokenholders must stake their msUSD tokens to receive smsUSD tokens, which represent a staked position that accrues returns over time. Tokens should therefore not be considered by users as investments. 3.4. The Tokens are fully fungible and may be traded on exchanges. The Tokens may also be traded on a bilateral (OTC) or Peer to Peer basis directly on the blockchain. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-eea#id-4.-ordering-procedure-and-delivery-of-tokens) **4\. Ordering Procedure and Delivery of Tokens** 4.1. The minimum amount of msUSD to be acquired from the Issuer by each user is determined based on the gas price charged by the Blockchain at the time of mint. msUSD can be minted at a rate of 1 USDC to 0.998 msUSD (reflecting the 0.2% fee which covers costs of getting in and out of positions). If the gas cost to mint an amount of msUSD exceeds the value of the msUSD to be minted, the mint transaction will not process. There is otherwise no minimum subscription amount. 4.2. Anyone wishing to receive Tokens requires a wallet that is compatible with any of the Blockchains. The Issuer cannot accept orders without specifying a blockchain address (public key) in the online subscription process. A smartphone or a computer with internet access is necessary to create a wallet. 4.3. The msUSD Tokens may be acquired from the Issuer by submitting a purchase application to the Issuer on the Website. The user must provide the intended purchase amount and its wallet address on any of the Blockchains to which its Tokens are to be transferred, which may be done by connecting the Blockchain wallet provided during the Greenlisting process to the Website. 4.4. The purchase amount is due immediately after the acceptance of the offer by the Issuer. The user shall pay the purchase amount to (i) the Issuer via transfer to the relevant Blockchain smart contract, or (ii) to the extent the Issuer enables minting with fiat currency, the bank account specified by the Issuer. 4.5. The Issuer's receipt of payment can be confirmed to the user by e-mail or by other means, including displaying confirmations on the Website following successful submission of a mint transaction. 4.6. A Tokenholder may dispose of its Tokens. The respective transaction is traceable for everyone over the respective Blockchain. A Tokenholder is expressly prohibited from knowingly transferring any Tokens to a Prohibited Person following acquisition. 4.7. smsUSD Tokens are not directly acquired from the Issuer but are received through the staking process as described in Section 7A. The acquisition of smsUSD requires a user to first obtain msUSD and then stake it through the designated smart contract. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-eea#id-5.-listing-and-trading-of-the-token) **5\. Listing and Trading of the Token** 5.1. Currently, the Tokens are listed on certain "centralized" exchanges and are available via blockchain-based automated market maker applications. Tokenholders understand and acknowledge that: a) there can be no assurances that the Tokens will be admitted to trading on an exchange or that such trading will continue indefinitely and nothing in these Terms and Conditions shall be construed as constituting a warranty or promise to that effect; and b) unless Tokens are admitted to trading on a centralized exchange, the trading of Tokens will be possible only on a Peer-to-Peer basis. 5.2. The Issuer may at any time purchase Tokens from Tokenholders in the secondary market and may hold, resell or burn such Tokens. Any such purchase will be made on an arm's length basis at the prevailing market price and in accordance with Applicable Law. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-eea#id-6.-exercise-of-rights) **6\. Exercise of Rights** 6.1. The Issuer will recognize and acknowledge as Tokenholders only those persons who both (i) hold Tokens and (ii) have successfully completed the KYC/AML Requirements and are, at the time of determination under this paragraph, Greenlisted. 6.2. Various functionalities of the Tokens, including, but not limited to, the issuance and the transfer of Tokens and the redemption of the Tokens, are available only with the private key associated with the wallet controlling such Tokens. Each Tokenholder agrees that the Issuer shall not be held liable and waive any claim against the Issuer to the fullest extent permitted by Applicable Law, for any loss or damages resulting from the loss or theft of its private key, including, but not limited to, any claims for indirect or consequential and additional expenses. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-eea#id-7.-redemption) **7\. Redemption** 7.1. Every Tokenholder can request a redemption of all or part of their Tokens on demand at the value representing the Token's share in the asset reserve. While the value of the underlying spot crypto asset may fluctuate, the Issuer employs hedging strategies to keep these fluctuations minimal as described in more detail at https://docs.mainstreet.finance. Redemption requests will be satisfied by the Issuer in accordance with Applicable Laws. Where the withdrawal payment is received by a Tokenholder through the involvement of a payment service provider, the Issuer shall not be responsible for the withdrawal payment once the withdrawn funds are received by the payment service provider of the Issuer. 7.2. Every withdrawal request is subject to withdrawal limits. These limits are adjusted dynamically depending on the type of identification documentation required, as well as market conditions. If a withdrawal request exceeds the current limit, the Issuer may decline the request and instead require the Tokenholder to submit documents verifying its identity and address prior to allowing a withdrawal of funds or to otherwise cooperate with the Issuer to verify its identity or to submit a new request in line with market conditions, if applicable. 7.3. Every Tokenholder must ensure that the payment details it enters when redeeming Tokens are correct and complete. The Issuer is not liable for withdrawn assets being sent to the wrong account where this is due to the Tokenholder providing incorrect payment details. 7.4. No redemption transaction is processed until a Tokenholder requests, and is provided with, a price quote by submitting such request on app.mainstreet.finance. The price quote is determined by assuming, as a baseline, that 1 msUSD = 1 USDC; however, in the case where an adverse event has occurred that reduces the value of the asset reserve, the price quote will include a reduction to reflect a pro-rata reduction in the redemption pricing accordingly, and the pricing quote displayed to the user includes a 0.2% fee. This fee covers the costs of getting in and out of positions with some cushion. This fee will come down as we scale and our costs come down. 7.5 Staking 7.5.1. Tokenholders may stake their Tokens to receive smsUSD staking tokens, which represent a claim on the staked msUSD plus accumulated yield generated through the protocol's delta-neutral options arbitrage strategies. 7.5.2. The staking process involves depositing msUSD tokens into a staking contract and receiving smsUSD tokens in return. The exchange rate between msUSD and smsUSD continuously updates as yield accrues to staked positions. 7.5.3. Unstaking involves converting smsUSD back to msUSD at the current exchange rate, which reflects the original deposit plus any accumulated yield. Standard redemption periods and conditions as outlined in Section 7 apply to unstaking transactions. 7.5.4. The Issuer makes no guarantees regarding specific yield rates, staking performance, or unstaking timelines. The exchange rate between msUSD and smsUSD is determined by protocol mechanics and yield performance, which may be affected by various factors including but not limited to strategy performance, market conditions, and protocol parameters. 7.5.5. Staking transactions may be subject to blockchain gas fees and other applicable costs, which are not controlled by the Issuer and may vary based on network conditions. 7.5.6. The Issuer reserves the right to modify the staking mechanism, including but not limited to adjusting technical parameters, updating smart contracts, and implementing security measures, provided such modifications do not materially adversely affect the Tokenholders' legal and financial position. Any such modifications shall be announced to the Tokenholders in accordance with Condition 13 (Notice). ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-eea#id-7a.-third-party-partner-minting) **7A. Third-Party Partner Minting** 7A.1. The Issuer may facilitate access to msUSD through third-party partners who have completed KYC/AML requirements and are authorized to mint msUSD on behalf of users ("Partner Protocols"). 7A.2. Users who obtain msUSD through Partner Protocols are not direct customers of the Issuer and are not required to complete KYC/AML requirements with the Issuer directly. However, such users remain bound by these Terms and Conditions in their use of msUSD and smsUSD. 7A.3. The Issuer has no direct relationship, contractual or otherwise, with users who obtain msUSD through Partner Protocols and assumes no responsibility for such users. All interactions, including but not limited to customer support, compliance obligations, dispute resolution, data protection, and regulatory compliance, are the sole responsibility of the respective Partner Protocol. The Issuer expressly disclaims any liability arising from Partner Protocol operations or user interactions. 7A.4. The Issuer makes no representations or warranties of any kind, express or implied, regarding the conduct, reliability, security, compliance practices, or operational integrity of Partner Protocols. Users who choose to obtain msUSD through Partner Protocols do so entirely at their own risk and acknowledge that the Issuer has no control over or responsibility for Partner Protocol operations, policies, or practices. 7A.5. Partner Protocols may be subject to their own terms and conditions, fees, and operational procedures. Users are advised to review and understand such terms before engaging with any Partner Protocol. 7A.6. The Issuer reserves the right to suspend or terminate any Partner Protocol's authorization to mint msUSD at any time and for any reason, with or without notice. 7A.7. msUSD obtained through Partner Protocols is functionally identical to msUSD obtained directly from the Issuer and carries the same rights and obligations under these Terms and Conditions. 7A.8. Limitation of Liability for Partner Operations: The Issuer shall not be liable for any losses, damages, claims, or liabilities of any kind arising from or relating to: (a) the operations, practices, or conduct of any Partner Protocol; (b) any breach of terms, privacy violations, or regulatory non-compliance by Partner Protocols; (c) any technical failures, security breaches, or operational disruptions affecting Partner Protocols; or (d) any disputes between users and Partner Protocols. This limitation applies regardless of the legal theory upon which such claims are based. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-eea#id-8.-limited-recourse) **8\. Limited Recourse** Notwithstanding anything to the contrary herein, no recourse (whether by institution or enforcement of any legal proceeding or assessment or otherwise) in respect of any breaches of any duty, obligation or undertaking of the Issuer arising under or in connection with the Tokens (as from time to time supplemented or modified in accordance with the provisions herein contained) by virtue of any law, statute or otherwise shall be held against any shareholder, officer, manager or corporate services provider of the Issuer in their capacity as such, save in the case of their gross negligence, willful default or actual fraud, and any and all personal liability of every such shareholder, officer, manager of corporate services provider in their capacity as such for any breaches by the Issuer of any such duty, obligation or undertaking shall be waived and excluded to the extent permitted by law. This provision shall survive the redemption and burning of the Tokens. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-eea#id-8a.-delta-neutral-strategy-risks-and-operational-disclaimers) **8A. Delta-Neutral Strategy Risks and Operational Disclaimers** #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-eea#trading-strategy-risks) **Trading Strategy Risks** The options arbitrage and delta-neutral strategies employed by the Issuer to maintain msUSD's value involve sophisticated trading techniques across spot and derivatives markets. These strategies are subject to various risks beyond our control, including: * **Volatility Risk:** Divergence between implied and realized volatility may differ from model predictions, affecting strategy performance * **Options Pricing Risk:** Unpredictable changes in options pricing due to market sentiment shifts may impact strategy outcomes * **Delta Hedging Risk:** Imperfect hedging during rapid market movements may create temporary directional exposure * **Options Liquidity Risk:** Limited liquidity in specific options contracts may impact execution efficiency * **Execution Risk:** Trading operations may experience slippage, latency, or other execution challenges * **Market Dislocation:** Extreme market conditions may cause temporary deviations from expected strategy outcomes * **Counterparty Failure:** Exchanges or trading venues where positions are maintained may experience outages, insolvency, or other failures * **Model Risk:** Machine learning models may experience periods of reduced predictive accuracy * **Operational Failure:** Systems, algorithms, or operational processes may malfunction or fail to operate as intended * **Liquidation Events:** Unexpected market volatility may lead to forced liquidations of positions comprising the msUSD Reserves #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-eea#disclaimer-of-trading-operations-liability) **Disclaimer of Trading Operations Liability** By using msUSD or the msUSD Services, you expressly acknowledge and agree that: 1. The Issuer, its officers, directors, employees, shareholders, affiliates, or partners shall not be liable for any losses, damages, or reduced yields resulting from failures, errors, or underperformance of the delta-neutral trading strategies supporting msUSD; 2. Trading operations are inherently risky and no guarantee is made regarding the effectiveness of risk management processes; 3. The value of the msUSD Reserves may fall below the value of outstanding msUSD due to trading losses, market dislocations, or operational failures; 4. In the event of significant losses to the msUSD Reserves, redemptions may be fulfilled at less than 1:1 with USD value as described in these Terms; 5. Neither the Issuer nor any affiliated entity guarantees the performance of trading strategies or the maintenance of msUSD's value; and 6. No fiduciary duty exists between the Issuer and holders of msUSD with respect to trading operations. #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-eea#operational-security) **Operational Security** While Mainstreet BVI implements reasonable security measures in its trading operations, you understand that operational security breaches could affect msUSD's value. Mainstreet BVI makes no guarantees regarding the security of trading infrastructure or operations beyond commercially reasonable efforts to protect such systems. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-eea#id-8b.-yield-cap-and-excess-returns) **8B. Yield Cap and Excess Returns** The protocol may generate varying returns through its options arbitrage and other delta-neutral strategies depending on market conditions. These returns primarily derive from capturing the difference between implied and realized volatility in options markets, alongside other delta-neutral approaches. To ensure long-term sustainability while providing competitive yields to users: * Yield to staked positions (smsUSD) is capped at a maximum annualized rate of 40%, calculated on a rolling basis. * Any returns generated by the protocol's strategies that exceed this 40% cap ("Excess Returns") will be retained by the Issuer. * Excess Returns may be utilized for protocol development, insurance reserves, treasury management, or other purposes at the Issuer's sole discretion. * The yield cap is implemented to provide stable and sustainable returns to stakers while building protocol resilience against market volatility and operational risks. * The 40% yield cap applies specifically to the staking mechanism and does not limit any additional returns users may generate through other means, such as liquidity provision or other DeFi strategies using msUSD. * The Issuer reserves the right to adjust the yield cap percentage based on market conditions, protocol health, or other factors at its sole discretion. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-eea#id-9.-modification-of-the-smart-contract) **9\. Modification of the Smart Contract** 9.1. The smart contract underlying the Tokens may have a mechanism that allows the Issuer (or an affiliate of the Issuer) to modify the corresponding source code. However, this mechanism may only be used in order to a) address security issues of the underlying smart contract; b) correct unintended deviations from the provisions of these Terms and Conditions; c) change the structure of the source code, class interfaces, control flow, as far as this does not contradict these Terms and Conditions; or d) change elements of the smart contract that have become ineffective or impractical due to external effects. 9.2. If changes to the smart contract are required pursuant to Condition 9.1, the Issuer shall be entitled to amend these Terms and Conditions accordingly. The Tokenholders shall be notified of any such amendments with a notice according to Condition 13 (Notice). ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-eea#id-10.-substitution-of-the-issuer) **10\. Substitution of the Issuer** 10.1. The Issuer may, without the consent of the Tokenholders, at any time substitute itself in respect of all rights and obligations arising under or in connection with the Tokens with any legal entity of which all shares carrying voting rights are directly or indirectly held by the Issuer (the "New Issuer"), provided that: a) the New Issuer is able to fulfil all payment obligations arising from or in connection with the Tokens; and b) the Issuer has issued an irrevocable and unconditional guarantee in respect of the obligations of the New Issuer under the Tokens. 10.2. In the event of a substitution of the Issuer, notice of such substitution shall be made in accordance with Condition 13 (Notice) and any reference to the Issuer shall be deemed to refer to the New Issuer. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-eea#id-11.-no-set-off) **11\. No Set-off** No Tokenholder may set-off any claims arising under the Tokens against any claims that the Issuer may have against it. The Issuer may not set-off any claims it may have against the Tokenholder against any of its obligations under the Tokens. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-eea#id-12.-modification-clause) **12\. Modification Clause** 12.1. If these Terms and Conditions contain manifest typographical errors or misspellings, the Issuer shall be entitled to correct such errors or misspellings without obtaining the Tokenholders' consent, provided that such correction, taking into account the Issuer's interests, can reasonably be assumed to be acceptable to the Tokenholders and, in particular, does not materially adversely affect the Tokenholders' legal and financial position. Any such corrections shall be announced to the Tokenholders in accordance with Condition 13 (Notice). 12.2. If these Terms and Conditions contain manifest calculation errors, the Issuer shall be entitled to correct such errors without obtaining the Tokenholders' consent, provided that such correction, taking into account the Issuer's interests, can reasonably be assumed to be acceptable to the Tokenholders and, in particular, does not materially adversely affect the Tokenholders' legal and financial position. Any such corrections shall be announced to the Tokenholders in accordance with Condition 13 (Notice). 12.3. If these Terms and Conditions contain any similar manifest errors, the Issuer shall be entitled to correct such errors without obtaining the Tokenholders' consent, provided that such correction, taking into account the Issuer's interests, can reasonably be assumed to be acceptable to the Tokenholders and, in particular, does not materially adversely affect the Tokenholders' legal and financial position. Any such corrections shall be announced to the Tokenholders in accordance with Condition 13 (Notice). 12.4. Any other inconsistencies or omissions in these Terms and Conditions may be corrected or supplemented by the Issuer in its reasonable discretion. However, only such corrections or supplements shall be permitted as – taking into account the Issuer's interests – can reasonably be assumed to be acceptable to the Tokenholders and, in particular, do not materially adversely affect the Tokenholders' legal and financial position. Any such corrections or supplements shall be announced to the Tokenholders in accordance with Condition 13 (Notice). ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-eea#id-13.-notice) **13\. Notice** All notices regarding the Tokens shall be published on the Website. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-eea#id-14.-taxes) **14\. Taxes** 14.1. All payments made by or on behalf of the Issuer in respect of the Tokens will be made free from any restriction or condition and be made without deduction or withholding for or on account of any present or future taxes, duties, assessments or governmental charges of whatever nature imposed or levied by or on behalf of the British Virgin Islands, unless deduction or withholding of such taxes, duties, assessments or governmental charges is required to be made by Applicable Law. 14.2. The tax treatment for each user depends on the particular situation. All users are advised to consult with their professional tax advisers as to the respective tax consequences of the purchase, ownership, disposition, lapse, exercise or redemption of Tokens in light of their particular circumstances. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-eea#id-15.-intellectual-property-rights) **15\. Intellectual Property Rights** 15.1. The Issuer and its affiliated companies own all intellectual property and other rights in each of the products and its respective contents, including, but not limited to, software, text, images, trademarks, service marks, copyrights, patents, designs, and its look and feel. This intellectual property is available under the terms of our copyright licenses and our trademark guidelines. Subject to these Terms and Conditions, the Issuer and its affiliated companies grant the users a limited, revocable, non-exclusive, non-sublicensable, non-transferable license to access and use their products solely in accordance with these Terms and Conditions. You agree that you will not use, modify, distribute, tamper with, reverse engineer, disassemble or decompile any of our products for any purpose other than as expressly permitted pursuant to these Terms and Conditions. Except as set forth in these Terms and Conditions, the Issuer and its affiliated companies grant the users no rights to any of their products, including any intellectual property rights. 15.2. By using any of the products of the Issuer or its affiliated companies, users grant them a worldwide, non-exclusive, sublicensable, royalty-free license to use, copy, modify, and display any content, including but not limited to text, materials, images, files, communications, comments, feedback, suggestions, ideas, concepts, questions, data, or otherwise, that users post on or through any of the products of the Issuer or its affiliated companies for current and future business purposes of the Issuer or its affiliated companies, including to provide, promote, and improve the services. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-eea#id-16.-limitation-of-liability) **16\. Limitation of Liability** 16.1. Unless explicitly otherwise provided in these Terms and Conditions, any claim for defects of a purchase object, any claim for breach of pre-contractual obligations (culpa in contrahendo), and any claim for frustration of contract shall be excluded, save for any remedies of you based on willful deceit, intentional breach of contract or gross negligence, provided, however, that our liability for willful deceit, intentional breach of contract or gross negligence of any person assisting us in the performance of our obligations shall be excluded. 16.2. Unless explicitly stated otherwise in these Terms and Conditions, the Issuer shall not be held liable for any damages, losses, claims, costs, expenses or other liabilities, whether direct, indirect, consequential or otherwise, arising from the conduct of any third party not directly under the control and supervision of the Issuer including, but not limited to, independent contractors, partners, affiliates, suppliers, banks, brokerage firms, customers, partner protocols or any other third parties interacting with, or acting on behalf of, the Issuer. Notwithstanding the foregoing, nothing in this Condition shall limit or exclude the Issuer's liability where the third party was acting under the direct instruction, authority, or control of the Issuer, or where the conduct of the third party was otherwise foreseeable and preventable. 16.3. In the case of simple negligence, the Issuer shall only be liable for damages arising from injury to life, body, or health, as well as for damages arising from the breach of a material contractual obligation (cardinal duty). A material contractual obligation is an obligation whose fulfillment is essential for the proper execution of the contract and on whose compliance the contractual partner regularly relies. In such cases, the liability of the Issuer shall be limited to the typical, foreseeable damage. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-eea#id-17.-non-custodial-and-no-fiduciary-duties) **17\. Non-Custodial and No Fiduciary Duties** 17.1. We do not ever have custody, possession, or control of your digital assets at any time. You are solely responsible for the custody of the cryptographic private keys to the digital asset wallets you hold, and you should never share your wallet credentials or seed phrase with anyone. We accept no responsibility for, or liability to you, in connection with your use of a wallet. Likewise, you are solely responsible for any associated wallet and we are not liable for any acts or omissions by you in connection with or as a result of your wallet being compromised. 17.2. These Terms and Conditions are not intended to, and do not, create or impose any fiduciary duties on us. To the fullest extent permitted by law, you acknowledge and agree that we owe no fiduciary duties or liabilities to you or any other party, and that to the extent any such duties or liabilities may exist at law or in equity, those duties and liabilities are hereby irrevocably disclaimed, waived, and eliminated. You further agree that the only duties and obligations that we owe you are those set out expressly in these Terms and Conditions. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-eea#id-18.-governing-law-and-jurisdiction) **18\. Governing Law and Jurisdiction** 18.1. These Terms and Conditions and the Tokens are exclusively subject to the laws of the British Virgin Islands with the exclusion of the conflict-of-law rules of the international private law and the UN sales convention (CISG). 18.2. The place of performance and sole legal venue for all disputes arising from the legal relationships regulated under these Terms and Conditions is the respective business seat of the Issuer unless mandatory statutory provisions contradict and the parties are merchants, legal persons under public law or a special fund under public law or at least one of the parties has no place of general jurisdiction within the British Virgin Islands. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-eea#id-19.-severability) **19\. Severability** If at any time one or more of the provisions of these Terms and Conditions is or becomes unlawful, invalid, illegal or unenforceable in any respect under any Applicable Law, the validity, legality and enforceability of the remaining provisions shall not be in any way affected or impaired thereby. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-eea#id-20.-miscellaneous) **20\. Miscellaneous** 20.1. We do not provide, nor do we accept responsibility for, any legal, tax or accounting advice. If you are unsure regarding any of the legal, tax or accounting aspects of these Terms and Conditions or dealing in Tokens you should seek independent professional advice. 20.2. No waiver or variation of any part of these Terms and Conditions by us shall be effective unless in writing and signed by us. No waiver of any provision in these Terms and Conditions will be deemed a waiver of a subsequent breach of such provision or a waiver of a similar provision. In addition, a waiver of any breach or a failure to enforce any term or condition of these Terms and Conditions will not in any way affect, limit, or waive our rights hereunder at any time to enforce strict compliance thereafter with every term and condition of these Terms and Conditions. 20.3. No other document or communication may modify or add any additional obligations or covenants on us beyond those set forth in these Terms and Conditions, unless we clearly, specifically and explicitly state otherwise in that document. 20.4. msUSD Terms and Conditions may change from time to time. If you have been onboarded and greenlisted with the Issuer, you will be notified of any changes to these msUSD Terms and Conditions and their effective date by an electronic message sent to the electronic address you have provided as part of your onboarding process for communication with the Issuer. If you do not expressly object by an email sent to legal@mainstreet.finance within two months after you have been notified of these changes, we assume that you agree to such changes to these msUSD Terms and Conditions. You have the right to terminate the contract without notice and free of charge within the aforementioned two months period. If you reject any of these changes to the msUSD Terms and Conditions, we may either continue the contract under the previous terms or terminate the contract with a notice period of two months. [PreviousTerms of Service](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/terms-of-service) [NextmsUSD and smsUSD Terms and Conditions - Non EEA](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea) Last updated 5 months ago * [INTRODUCTION](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-eea#introduction) * [1\. Interpretation](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-eea#id-1.-interpretation) * [2\. KYC/AML Requirements and Onboarding (Greenlisting)](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-eea#id-2.-kyc-aml-requirements-and-onboarding-greenlisting) * [3\. Properties of the Tokens](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-eea#id-3.-properties-of-the-tokens) * [4\. Ordering Procedure and Delivery of Tokens](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-eea#id-4.-ordering-procedure-and-delivery-of-tokens) * [5\. Listing and Trading of the Token](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-eea#id-5.-listing-and-trading-of-the-token) * [6\. Exercise of Rights](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-eea#id-6.-exercise-of-rights) * [7\. Redemption](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-eea#id-7.-redemption) * [7A. Third-Party Partner Minting](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-eea#id-7a.-third-party-partner-minting) * [8\. Limited Recourse](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-eea#id-8.-limited-recourse) * [8A. Delta-Neutral Strategy Risks and Operational Disclaimers](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-eea#id-8a.-delta-neutral-strategy-risks-and-operational-disclaimers) * [8B. Yield Cap and Excess Returns](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-eea#id-8b.-yield-cap-and-excess-returns) * [9\. Modification of the Smart Contract](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-eea#id-9.-modification-of-the-smart-contract) * [10\. Substitution of the Issuer](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-eea#id-10.-substitution-of-the-issuer) * [11\. No Set-off](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-eea#id-11.-no-set-off) * [12\. Modification Clause](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-eea#id-12.-modification-clause) * [13\. Notice](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-eea#id-13.-notice) * [14\. Taxes](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-eea#id-14.-taxes) * [15\. Intellectual Property Rights](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-eea#id-15.-intellectual-property-rights) * [16\. Limitation of Liability](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-eea#id-16.-limitation-of-liability) * [17\. Non-Custodial and No Fiduciary Duties](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-eea#id-17.-non-custodial-and-no-fiduciary-duties) * [18\. Governing Law and Jurisdiction](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-eea#id-18.-governing-law-and-jurisdiction) * [19\. Severability](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-eea#id-19.-severability) * [20\. Miscellaneous](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-eea#id-20.-miscellaneous) --- # msUSD and smsUSD Terms and Conditions - Non EEA | Mainstreet.Finance These Terms and Conditions Apply To Users Outside of the European Economic Area Last Updated: June 11th, 2025 Users who have completed Know-Your-Customer and Anti-Money Laundering checks, as well as other onboarding procedures, and are whitelisted with Main St Finance Ltd (referred to herein as "Main St Finance," "Mainstreet BVI," "the Company," "we," "us," or "our") are referred to herein as a "Mint User." To the extent you have not completed the aforementioned checks or been whitelisted but hold msUSD or smsUSD, these Terms still apply to your holding and use of msUSD and smsUSD (hereinafter referred as "Holding User"). For the avoidance of doubt, Holding Users are not customers of Mainstreet BVI. By obtaining and using msUSD or smsUSD, you understand and expressly agree to these Terms, regardless of whether or not you are a customer of Mainstreet BVI, and you acknowledge that you have reviewed and understand each of the disclosures made in this section. Any provisions of these Terms that only apply to Mint Users or Holding Users will be specifically noted herein. Unless so noted, each Section of these Terms apply to both Mint Users and Holding Users, and any use of "you" or "your" refers to both Mint Users and Holding Users. The terms herein applicable to Mint Users are supplemental to the terms in the msUSD Mint User Agreement. By holding or using msUSD or smsUSD, or using any of the msUSD or smsUSD Services, you agree that you have read, understood and accept all of the terms and conditions contained in these Terms, as well as our Privacy Policy and Cookie Policy, and you acknowledge and agree that you will be bound by these terms and policies. Section 22 of these Terms governs how these Terms may be changed over time; the date of the last update is set forth at the top of these Terms. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-1.-about-msusd-and-smsusd) **1\. About msUSD and smsUSD** msUSD is a digital token issued by Mainstreet BVI. msUSD issued by Mainstreet BVI is a form of stored value or prepaid access and does not represent a claim, participation interest, economic right, voting right, or other similar right associated with Mainstreet BVI or any of its affiliates. smsUSD is a staking token that users receive when they stake their msUSD. It represents a staked position that accrues yield over time based on the performance of the protocol's strategies. msUSD is backed by an amount of spot crypto assets, such as BTC, ETH, S (Sonic's native token), certain stablecoins (such as USDC, USDT), and offsetting hedging positions on derivatives contracts the ("msUSD Reserves"). The value of msUSD is maintained through sophisticated options arbitrage and other delta-neutral trading strategies that insulate holders from the price volatility of the underlying reserve assets. msUSD is not designed to intrinsically create returns for holders, increase in value, or otherwise accrue financial benefit to the msUSD holder. To earn yield, msUSD holders must stake their tokens to receive smsUSD, which then accrues value as yield is generated by the protocol's strategies. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-2.-scope-of-msusd-smsusd-and-key-terms) **2\. Scope of msUSD,** smsUSD, and Key Terms The following only applies to Mint Users: As you have agreed to, and are subject to, the msUSD Mint User Agreement, Mainstreet BVI makes available the following msUSD-related Services (as defined in the msUSD Mint User Agreement: (i) issue msUSD for accepted tokens from Mainstreet BVI, (ii) redeem msUSD for supported assets from Mainstreet BVI, and (iii) stake msUSD to receive smsUSD and unstake smsUSD to receive msUSD (collectively, the "msUSD Services"). Your use of the msUSD Services is subject to these Terms. Any of the msUSD Services can be discontinued at any time in accordance with Section 14 of these msUSD Terms. You understand and agree that you may only tokenize accepted assets for msUSD, stake msUSD for smsUSD, and redeem msUSD directly with Mainstreet BVI to the extent that you are a Mint User. The following only applies to Holding Users: You may not redeem msUSD with Mainstreet BVI or stake msUSD to receive smsUSD directly through Mainstreet BVI interfaces unless and until you are a Mint User who has cleared KYC/AML and other checks and have onboarded as a whitelisted customer with Mainstreet BVI. Eligibility for and requirements related to such process are set forth in the msUSD Mint User Agreement. The following applies to both Mint Users and Holding Users: Your use of msUSD, smsUSD and msUSD Services (as applicable), is subject to these Terms and Mainstreet BVI's obligations hereunder are conditional on you complying with its provisions. You understand that any violation of these Terms may result in potential consequences, including the possible loss or forfeiture of assets tokenized for msUSD. You understand and agree that sending msUSD or smsUSD to another address automatically transfers and assigns to the owner of that address, and any subsequent owner all rights and obligations of a Holding User to redeem msUSD for approved assets so long as the Holder is or becomes a Mint User. For the avoidance of doubt, if a Holder is not a Mint User, not eligible to become a Mint User, or fails to do so, such Holding User is not entitled to redeem msUSD with Mainstreet BVI. Mainstreet BVI commits to redeem 1 msUSD for the notional value relating to its pro rata portion of the msUSD Reserves in supported digital assets, subject to these Terms, applicable law, and any fees where applicable. For smsUSD, the redemption value is determined by the current exchange rate between msUSD and smsUSD, which reflects the accumulated yield. While Mainstreet BVI generates yield from its delta-neutral strategies, you acknowledge that this yield is only accessible through the staking mechanism, and holding msUSD alone does not entitle you to any yield. msUSD itself does not generate any interest or return for holders of msUSD and only represents your right to redeem msUSD as a Mint User, if you are one. If you are a Holding User, you do not have a right to redeem msUSD with Mainstreet BVI. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-3.-applicable-laws-and-regulations-aml-and-ctf) **3\. Applicable Laws and Regulations; AML and CTF** Your holding and use of msUSD, and any use of the msUSD Services, is subject to the laws, regulations, and rules of any applicable governmental or regulatory authority, including, without limitation, all applicable tax, anti-money laundering ("AML") and counter-terrorist financing ("CTF") provisions and sanctions. You agree to act in compliance with and be legally bound by these Terms and all applicable laws and regulations. These Terms are conditional on your continued compliance at all times with these Terms and all applicable laws and regulations. Mainstreet BVI is committed to complying with all applicable AML and CTF laws and regulations. These standards are designed to prevent the use of the msUSD Services for money laundering, terrorist financing, fraudulent transactions, and any other illegal activities. Mainstreet BVI takes compliance very seriously and actively engages in measures to: * Prohibit fraudulent transactions; * Report suspicious activities; * Prevent money laundering, terrorist financing, and any related acts that facilitate financial crimes. Applicable laws require us to prevent Restricted Persons from holding msUSD or using msUSD Services. A Restricted Person means any person that is the subject or target of any sanctions, including a person that is: * named in any Sanctions-related list maintained by the U.S. Department of State; the U.S. Department of Commerce, including the Bureau of Industry and Security's Entity List and Denied Persons List; or the U.S. Department of the Treasury, including the OFAC Specially Designated Nationals and Blocked Persons List, the Sectoral Sanctions Identifications List, and the Foreign Sanctions Evaders List; or any similar list maintained by any other relevant governmental authority; * located, organized or resident in a country, territory or geographical region which is itself the subject or target of any territory-wide Sanctions (a "Restricted Territory") (currently, Cuba, Iran, Syria, North Korea, and the Ukraine regions of Crimea, Donetsk, and Luhansk); or * owned or controlled by any such person or persons listed above. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-4.-eligibility-limitations) **4\. Eligibility; Limitations** The following applies to both Mint Users and Holding Users: msUSD Services and support for msUSD are currently only available to individuals and institutions (as applicable) located in supported jurisdictions. By holding or using msUSD, or accessing or using the msUSD Services, you further represent and warrant that: * you are at least 18 years old, are not a Restricted Person, and are not holding msUSD on behalf of a Restricted Person. * you will not be using msUSD or the msUSD Services (as applicable) for any illegal activity, including, but not limited to, illegal gambling, money laundering, fraud, blackmail, extortion, ransoming data, terrorism financing, other violent activities or any prohibited market practices, including, but not limited to, those listed under Sections 16 and 17. Additionally, users in the United States are not eligible to become a Mint User. This restriction may be revisited from time to time taking into account relevant changes in law. You also understand that there are additional representations and warranties made by you elsewhere in (or by reference in) these Terms and that any misrepresentation by you is a violation of these Terms. If Mainstreet BVI suspects or determines that you or any of your authorized users or customers, as applicable, have violated these Terms, including, but not limited to, attempting to transact or transacting with Blocked Addresses (as defined in Section 11) or attempting to engage or engaging in Restricted Activities (as defined in Section 16) or Prohibited Transactions (as defined in Section 17), then Mainstreet BVI may be forced to terminate your status as a Mint User and you may forfeit any assets otherwise eligible for redemption. Notwithstanding the foregoing, Mainstreet BVI may determine not to make msUSD or the msUSD Services, in whole or in part, available in every market, either in its sole discretion or due to legal or regulatory requirements, depending on your location. We may also, without liability to you or any third party, refuse to let you register as a Mint User. The following only applies to Mint Users: Use of certain msUSD Services may have further eligibility requirements that will need to be verified prior to you using such msUSD Services, or from time to time in order to continue your use of the msUSD Services, and may be subject to additional terms and conditions. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-4a.-us-persons-prohibition) **4A. US Persons Prohibition** #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#definition-of-us-person) **Definition of US Person** For purposes of these Terms, "US Person" means: * Any natural person resident in the United States; * Any partnership or corporation organized or incorporated under the laws of the United States; * Any estate of which any executor or administrator is a US Person; * Any trust of which any trustee is a US Person; * Any agency or branch of a foreign entity located in the United States; * Any non-discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary for the benefit or account of a US Person; * Any discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary organized, incorporated, or (if an individual) resident in the United States; and * Any partnership or corporation if organized or incorporated under the laws of any foreign jurisdiction and formed by a US Person principally for the purpose of investing in securities not registered under the US Securities Act of 1933. #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#strict-prohibition) **Strict Prohibition** The msUSD Services are absolutely not available to, and may not be accessed or used by, any US Person as defined above. This prohibition applies regardless of physical location at the time of access or use. Mainstreet BVI has implemented technical measures including IP address filtering to prevent US Persons from accessing the msUSD Services. #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#no-solicitation) **No Solicitation** Mainstreet BVI does not solicit business from US Persons. Nothing in these Terms or any other communication from Mainstreet BVI shall be deemed a waiver of the prohibition against US Persons using the msUSD Services, nor shall it be construed as an offer or solicitation to any US Person. #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#consequences-of-violation) **Consequences of Violation** If Mainstreet BVI determines that you are a US Person, have provided false information regarding your status, or have attempted to circumvent technological or other measures implemented to restrict access by US Persons: * Your wallet address will be immediately added to a blocklist; * Any pending transactions initiated through Mainstreet BVI interfaces may be rejected; * Your ability to interact with Mainstreet smart contracts through our interfaces will be permanently revoked; * You will be ineligible to participate in any future Mainstreet token distributions, governance, or incentive programs; and * You may be held liable for any damages incurred by Mainstreet BVI, including costs associated with regulatory inquiries or enforcement actions. Mainstreet BVI reserves the right to block any transactions originating from addresses associated with US Persons to the extent technically possible within the constraints of decentralized blockchain technology. #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#regulatory-declaration) **Regulatory Declaration** Mainstreet BVI is not registered with the US Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), the Financial Industry Regulatory Authority (FINRA), or any other US regulatory body, and does not conduct business operations in the United States. By accessing or using msUSD or the msUSD Services, you represent and warrant that you are not a US Person and will promptly notify Mainstreet BVI if your status changes. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-5.-support) **5\. Support** Please contact Support to report any violations of these Terms or to ask any questions regarding these Terms or the msUSD Services, as applicable. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-6.-copies-wrappers-and-forks-not-supported) **6\. Copies, Wrappers, and Forks Not Supported** The following applies to both Mint Users and Holding Users: As a result of the decentralized and open source nature of msUSD and smsUSD it is possible that a party unaffiliated with Mainstreet BVI could create an alternative, equivalent version of msUSD or smsUSD either on one of the msUSD supported blockchains or on an unsupported blockchain (a "copy") that operate independently from msUSD. Similarly, it is possible that a party unaffiliated with Mainstreet BVI may create an asset and purport that such asset is collateralized by or otherwise incorporates msUSD or smsUSD into its design (a "wrapper"). Mainstreet BVI supports only msUSD and smsUSD and is under no obligation to support any copies of msUSD or smsUSD or wrappers and assumes no responsibility for any value that might be lost as a result of this lack of support of copies of msUSD or smsUSD. No such copy or wrapper should be considered approved, sold, distributed, or promoted by Mainstreet BVI unless explicitly stated. As a result of the decentralized and open source nature of the blockchains on which msUSD and smsUSD are supported, it is possible that a party unaffiliated with Mainstreet BVI could create an alternative version of the blockchain (a "fork"). Note that in the event of a fork of one of the msUSD supported blockchains, Mainstreet BVI may be forced to suspend all activities relating to msUSD and smsUSD (including tokenizing assets for msUSD, staking msUSD for smsUSD, unstaking smsUSD, redeeming msUSD for supported assets, or sending and receiving msUSD and smsUSD) for an extended period of time until Mainstreet BVI has determined in its sole discretion that such functionality can be restored ("Downtime"). This Downtime will likely occur immediately upon a "fork", potentially with little to no warning, and during this period of Downtime you will not be able to conduct various activities involving msUSD or smsUSD. In the event of a fork of one of the msUSD supported blockchains, Mainstreet BVI shall, in its sole discretion, determine which fork it will support, if any. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-6a.-staking-msusd-and-the-staking-model) 6A. Staking msUSD and the Staking Model msUSD holders can stake their tokens to receive smsUSD, which represents a position that accrues yield from the protocol's delta-neutral options arbitrage strategies. Staking Process To stake msUSD, a Mint User must deposit their msUSD into the designated staking smart contract. In return, they receive smsUSD tokens at the current exchange rate. This exchange rate between msUSD and smsUSD continuously updates as yield accrues to staked positions. Yield Accrual As the protocol generates returns from its options arbitrage and other strategies, the value of smsUSD increases relative to msUSD. This increasing exchange rate represents the yield earned by stakers. Unstaking Process To unstake, a user converts their smsUSD back to msUSD at the current exchange rate, which reflects the original deposit plus any accumulated yield. Standard redemption periods and conditions apply to unstaking transactions. Risk Factors The staking mechanism involves specific risks including, but not limited to: * Smart contract vulnerabilities despite security audits * Liquidity limitations while assets are staked * Processing delays during periods of high unstaking volume * Exchange rate fluctuations between msUSD and smsUSD * Yield variability based on strategy performance Modifications to Staking Mechanism Mainstreet BVI reserves the right to modify aspects of the staking mechanism, including technical parameters, smart contract implementations, and security measures. Any material changes will be communicated to users as outlined in Section 22. Third-Party Staking Mainstreet BVI is not responsible for and makes no representations regarding third-party interfaces that facilitate staking of msUSD. Use of such interfaces is entirely at your own risk. The following applies only to Mint Users: As a Mint User, you may stake msUSD and unstake smsUSD directly through Mainstreet BVI's interfaces, subject to these Terms and applicable laws. The following applies only to Holding Users: As a Holding User, you may not stake msUSD or unstake smsUSD directly through Mainstreet BVI interfaces until you become a Mint User. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-6b.-third-party-partner-minting) 6B. Third-Party Partner Minting 6B.1. Mainstreet BVI may facilitate access to msUSD through third-party partners who have completed KYC/AML requirements and are authorized to mint msUSD on behalf of users ("Partner Protocols"). 6B.2. Users who obtain msUSD through Partner Protocols are not direct customers of Mainstreet BVI and are not required to complete KYC/AML requirements with Mainstreet BVI directly. However, such users become Holding Users and remain bound by these Terms and Conditions in their use of msUSD and smsUSD. 6B.3. Mainstreet BVI has no direct relationship, contractual or otherwise, with users who obtain msUSD through Partner Protocols and assumes no responsibility for such users. All interactions, including but not limited to customer support, compliance obligations, dispute resolution, data protection, and regulatory compliance, are the sole responsibility of the respective Partner Protocol. Mainstreet BVI expressly disclaims any liability arising from Partner Protocol operations or user interactions. 6B.4. Mainstreet BVI makes no representations or warranties of any kind, express or implied, regarding the conduct, reliability, security, compliance practices, or operational integrity of Partner Protocols. Users who choose to obtain msUSD through Partner Protocols do so entirely at their own risk and acknowledge that Mainstreet BVI has no control over or responsibility for Partner Protocol operations, policies, or practices. 6B.5. Partner Protocols may be subject to their own terms and conditions, fees, and operational procedures. Users are advised to review and understand such terms before engaging with any Partner Protocol. 6B.6. Mainstreet BVI reserves the right to suspend or terminate any Partner Protocol's authorization to mint msUSD at any time and for any reason, with or without notice. 6B.7. msUSD obtained through Partner Protocols is functionally identical to msUSD obtained directly from Mainstreet BVI and carries the same rights and obligations under these Terms and Conditions, subject to the user's status as a Holding User. 6B.8. Limitation of Liability for Partner Operations: Mainstreet BVI shall not be liable for any losses, damages, claims, or liabilities of any kind arising from or relating to: (a) the operations, practices, or conduct of any Partner Protocol; (b) any breach of terms, privacy violations, or regulatory non-compliance by Partner Protocols; (c) any technical failures, security breaches, or operational disruptions affecting Partner Protocols; or (d) any disputes between users and Partner Protocols. This limitation applies regardless of the legal theory upon which such claims are based. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-7.-msusd-supported-blockchains-and-smart-contract-modifications) **7\. msUSD Supported Blockchains and Smart Contract Modifications** msUSD operates on msUSD supported blockchains. Mainstreet BVI does not have any ability or obligation to prevent or mitigate attacks or resolve any other issues that might arise with any msUSD supported blockchain. Any such attacks or delays on any msUSD supported blockchain might materially delay or prevent you from sending or receiving msUSD, and Mainstreet BVI shall bear no responsibility for any losses that result from such issues. Note that in certain circumstances, including, but not limited to, a copy or fork of a msUSD supported blockchain or the identification of a security issue with a msUSD supported blockchain, Mainstreet BVI may be forced to suspend all activities relating to msUSD (including tokenizing assets for msUSD, redeeming msUSD for assets, or sending and receiving msUSD) for an extended period of time until such Downtime is over and msUSD Services can be restored. This Downtime will likely occur immediately upon a copy or fork of any msUSD supported blockchain, potentially with little to no warning, and during this period of Downtime you will not be able to conduct various activities involving msUSD. Mainstreet BVI reserves the right to migrate msUSD to another blockchain or protocol in the future in its reasonable discretion. Upon Mainstreet BVI's request, you agree to take any and all actions reasonably necessary to effectuate the migration of your msUSD to another blockchain or protocol identified by Mainstreet BVI. Mainstreet BVI will not be responsible or liable for any damages, losses, costs, fines, penalties or expenses of whatever nature, whether or not reasonably foreseeable by the parties, which you may suffer, sustain or incur, arising out of or relating to your failure to effectuate such migration of your msUSD to another blockchain or protocol identified by Mainstreet BVI. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-8.-privacy) **8\. Privacy** We are committed to protecting your personal information and helping you understand exactly how your personal information is being used. You should carefully read the Mainstreet BVI Privacy Policy, as it provides details on how your personal information is collected, stored, protected, and used. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-9.-communications) **9\. Communications** By entering into these Terms, you agree to receive electronic communications and notifications. These Terms are provided to you and communicated in English. We will also communicate with you in English for all matters related to msUSD and your use of msUSD Services. Where we have provided you with a translation of the English language version of these Terms, you agree that such translation is provided for your convenience only and that the English language version of these Terms govern your holding and use of msUSD, and the msUSD Services, as applicable. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-10.-limited-license-ip-rights) **10\. Limited License; IP Rights** The following only applies to Mint Users: We grant you a limited, non-exclusive, non-sublicensable, and non-transferable license, subject to the terms and conditions of these Terms, to access and use the msUSD Services solely for approved purposes as determined by Mainstreet BVI. Any other use of the msUSD Services is expressly prohibited. Mainstreet BVI and its licensors reserve all rights in the msUSD Services and you agree that these Terms does not grant you any rights in or licenses to the msUSD Services except for the limited license set forth above. Except as expressly authorized by Mainstreet BVI, you agree not to modify, reverse engineer, copy, frame, scrape, rent, lease, loan, sell, distribute, or create derivative works based on the msUSD Services, in whole or in part. If you violate any portion of these Terms, your permission to access and use the msUSD Services may be terminated pursuant to these Terms. "mainstreet.finance", "Mainstreet BVI", and all logos related to the msUSD Services are either copyrights, trademarks, or registered marks of Mainstreet BVI or its licensors. Whether or not you are a Mint User, you may not copy, imitate, or use them without Mainstreet BVI's prior written consent. All right, title, and interest in and to the Mainstreet BVI website, any content thereon, the msUSD Services, and all technology and any content created or derived from any of the foregoing is the exclusive property of Mainstreet BVI and its licensors. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-11.-risk-factors-and-disclosures) **11\. Risk Factors & Disclosures** The following list of risks associated with msUSD and the msUSD Services is not exhaustive. **No guarantee of price stability on Third Party Platforms** Mainstreet BVI does not guarantee that the value of one (1) msUSD will always or ever equal 1 USD ($1) on any platform. Due to a variety of factors, the value of msUSD on third-party platforms such as cryptocurrency exchange platforms could fluctuate above or below 1 USD ($1), and the risk factors highlighted at docs.mainstreet.finance (as well as presently unknown risk factors) may result in the msUSD Reserves falling to less than 1 USD ($1) of notional value per msUSD in circulation. Mainstreet BVI cannot control how third parties quote or value msUSD, and Mainstreet BVI is not responsible for any losses or other issues that may result from fluctuations in the value of msUSD. **Third-parties** Mainstreet BVI does not control or endorse any products, services, or platforms offered by third parties using the msUSD Services or supporting msUSD, including Partner Protocols that facilitate msUSD minting. Third parties may elect to support msUSD on their platforms without any authorization or approval by Mainstreet BVI. The availability of msUSD on any third-party platform does not imply that such services are valid, legal, stable, or otherwise appropriate. Mainstreet BVI is not liable for any losses, issues, or consequences that may arise from third-party transactions, Partner Protocol operations, or the use of msUSD on third-party platforms, including, but not limited to, (i) Failure to comply with applicable laws and regulations, including illegal transactions; (ii) The quality, delivery, or satisfaction of products and services facilitated by msUSD Services or Partner Protocols; (iii) Technical errors, loss of access, or inability to recover msUSD resulting from the use of third-party platforms or Partner Protocols. You accept all consequences of sending msUSD to third-party platforms or addresses, including the risk of loss or failure to recover your msUSD. For the avoidance of doubt, Mainstreet BVI has no obligation to track, verify, or determine the provenance of msUSD balances or transactions involving third-party platforms. **You accept all consequences of sending msUSD** msUSD transactions are not reversible. Once you send msUSD to an address, you accept the risk that you may lose access to, and any claim on, that msUSD indefinitely or permanently. For example, (i) an address may have been entered incorrectly and the true owner of the address may never be discovered, (ii) you may not have (or subsequently lose) the private key associated with such address, (iii) an address may belong to an entity that will not return the msUSD, or (iv) an address belongs to an entity that may return the msUSD but first requires action on your part, such as verification of your identity. For the avoidance of doubt, nothing in these Terms is intended to obligate Mainstreet BVI to track, verify or determine the provenance of msUSD balances for Users, including any form of security interests claimed thereon. **Blocked Addresses & Forfeited Funds** Mainstreet BVI reserves the right to "block" certain msUSD addresses of Mint Users that it determines, in its sole discretion, may be associated with illegal activity or activity that otherwise violates these Terms ("Blocked Addresses"). In certain circumstances, Mainstreet BVI may deem it necessary to report such suspected illegal activity to applicable law enforcement agencies and you may forfeit any rights associated with your msUSD, including the ability to redeem msUSD for any permitted assets. Mainstreet BVI may also be required to surrender associated assets held in the msUSD Reserve in the event it receives a legal order from a valid government authority requiring it to do so. **Software protocols and operational challenges** You are aware of and accept the risk of operational challenges. Mainstreet BVI may experience sophisticated cyber-attacks, unexpected surges in activity or other operational or technical difficulties that may cause interruptions to the msUSD Services. You understand that the msUSD Services may experience operational issues that lead to delays, including delays in redeeming msUSD. You agree to accept the risk of transaction failure resulting from unanticipated or heightened technical difficulties, including those resulting from sophisticated attacks. You agree not to hold Mainstreet BVI accountable for any related losses. **Compliance** You are responsible for complying with applicable law. You agree that Mainstreet BVI is not responsible for determining whether or which laws may apply to your transactions, including tax laws. You are solely responsible for reporting and paying any taxes arising from your use of msUSD or the msUSD Services, including any accurate reporting of the tax or legal status of msUSD in your jurisdiction. **Legal treatment of msUSD transfers** The regulatory status of msUSD and blockchain technology is unclear or unsettled in many jurisdictions. It is difficult to predict how or whether regulatory agencies may apply existing regulation with respect to msUSD, blockchain technology and its applications. Accordingly, it is not possible to determine whether a msUSD transfer would be recognized under applicable law by a court or regulator. **Legislative and regulatory changes** Legislative and regulatory changes or actions at the international level may adversely affect the tokenization of assets into msUSD, and the use, transfer, redemption and/or value of msUSD. **No deposit insurance** msUSD held in your wallet is not subject to deposit insurance protection, including, but not limited to, (i) where your country of residence is the United States, the Federal Deposit Insurance Corporation (FDIC) insurance or Securities Investor Protection Corporation protections (SIPC); or (ii) where your country of residence is outside of the United States, the United Kingdom Financial Services Compensation Scheme (FSCS) or equivalent scheme in your country of residence. **Claim on funds** Only Mint Users can redeem msUSD directly with Mainstreet BVI. For Mint Users, your ability to redeem with us for each msUSD is conditional on (i) your possession of a corresponding amount of msUSD associated with a Mint User, (ii) no violation of these Terms or your msUSD Mint User Agreement, and (iii) no action, pending or otherwise, by a regulator, law enforcement or a court of competent jurisdiction that would restrict redemption. Sending msUSD to another address automatically transfers and assigns to that Holding User, and any subsequent Holding User, the right to redeem msUSD with us so long as the Holding User is eligible to, and does, register as a Mint User (and thereby becomes a Mint User). **Encumbrances** Depending on the actions of the owners of msUSD addresses before your receipt of msUSD from another msUSD address, it is possible that the transfer of msUSD between msUSD addresses could result in the msUSD in your whitelisted wallet becoming subject to a lien or other form of security interest before redemption. **On-chain transactions irreversible** When msUSD is sent to a third-party msUSD address, such transaction is completed on msUSD supported blockchains. This means that such a transaction is irreversible and Mainstreet BVI does not have the ability to reverse or recall any transaction once initiated. You bear all responsibility for any losses that might be incurred as a result of sending msUSD to an incorrect or unintended msUSD address. **Affiliate Activities** You understand and agree that individuals or entities affiliated with Mainstreet BVI may hold, purchase, sell, or otherwise engage in transactions using or involving msUSD. You further understand and agree that such persons may engage in this activity for any reason, including but not limited to engaging in commercial transactions, promoting transaction activity that utilizes msUSD, or otherwise supporting the use or adoption of msUSD. This activity may involve selling msUSD to other entities for provision to their end users. You understand and agree that no individual or entity, whether affiliated with Mainstreet BVI or otherwise, is under any obligation to engage in these activities, and they may be discontinued at any time. **Options Market Risks** msUSD's primary yield strategy involves options arbitrage and options trading, which entails unique risks beyond those present in standard cryptocurrency transactions. Options are complex financial instruments with time-limited value that can expire worthless. Options pricing is affected by numerous factors including the volatility of the underlying asset, time remaining until expiration, interest rates, and market sentiment. The delta-neutral strategies employed aim to mitigate directional price risk but may be subject to other risks including volatility risk, liquidity constraints in options markets, model risk related to volatility prediction algorithms, and options Greeks risk (such as Gamma, Theta, and Vega exposure). The statistical nature of options arbitrage strategies means occasional drawdowns may occur even when the strategy is functioning as designed. Options markets may have less liquidity than spot markets, which can impact execution quality and increase slippage. You acknowledge that the protocol's reliance on options-based strategies creates a risk profile distinct from other cryptocurrency products, including those using different delta-neutral approaches. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-11a.-delta-neutral-strategy-risks-and-operational-disclaimers) **11A. Delta-Neutral Strategy Risks and Operational Disclaimers** #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#trading-strategy-risks) **Trading Strategy Risks** The options arbitrage and delta-neutral strategies employed by Mainstreet BVI to maintain msUSD's value involve sophisticated trading techniques across spot and derivatives markets. These strategies are subject to various risks beyond our control, including: * **Volatility Risk:** Divergence between implied and realized volatility may differ from model predictions, affecting strategy performance * **Options Pricing Risk:** Unpredictable changes in options pricing due to market sentiment shifts may impact strategy outcomes * **Delta Hedging Risk:** Imperfect hedging during rapid market movements may create temporary directional exposure * **Options Liquidity Risk:** Limited liquidity in specific options contracts may impact execution efficiency * **Execution Risk:** Trading operations may experience slippage, latency, or other execution challenges * **Market Dislocation:** Extreme market conditions may cause temporary deviations from expected strategy outcomes * **Counterparty Failure:** Exchanges or trading venues where positions are maintained may experience outages, insolvency, or other failures * **Model Risk:** Machine learning models may experience periods of reduced predictive accuracy * **Operational Failure:** Systems, algorithms, or operational processes may malfunction or fail to operate as intended * **Liquidation Events:** Unexpected market volatility may lead to forced liquidations of positions comprising the msUSD Reserves #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#disclaimer-of-trading-operations-liability) **Disclaimer of Trading Operations Liability** By using msUSD or the msUSD Services, you expressly acknowledge and agree that: 1. Mainstreet BVI, its officers, directors, employees, shareholders, affiliates, or partners shall not be liable for any losses, damages, or reduced yields resulting from failures, errors, or underperformance of the delta-neutral trading strategies supporting msUSD; 2. Trading operations are inherently risky and no guarantee is made regarding the effectiveness of risk management processes; 3. The value of the msUSD Reserves may fall below the value of outstanding msUSD due to trading losses, market dislocations, or operational failures; 4. In the event of significant losses to the msUSD Reserves, redemptions may be fulfilled at less than 1:1 with USD value as described in these Terms; 5. Neither Mainstreet BVI nor any affiliated entity guarantees the performance of trading strategies or the maintenance of msUSD's value; and 6. No fiduciary duty exists between Mainstreet BVI and holders of msUSD with respect to trading operations. #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#operational-security) **Operational Security** While Mainstreet BVI implements reasonable security measures in its trading operations, you understand that operational security breaches could affect msUSD's value. Mainstreet BVI makes no guarantees regarding the security of trading infrastructure or operations beyond commercially reasonable efforts to protect such systems. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-11b.-yield-cap-and-excess-returns) **11B. Yield Cap and Excess Returns** The protocol may generate varying returns through its options arbitrage and other delta-neutral strategies depending on market conditions. These returns primarily derive from capturing the difference between implied and realized volatility in options markets, alongside other delta-neutral approaches. To ensure long-term sustainability while providing competitive yields to users: * Yield to staked positions (smsUSD) is capped at a maximum annualized rate of 40%, calculated on a rolling basis. * Any returns generated by the protocol's strategies that exceed this 40% cap ("Excess Returns") will be retained by Mainstreet BVI. * Excess Returns may be utilized for protocol development, insurance reserves, treasury management, or other purposes at Mainstreet BVI's sole discretion. * The yield cap is implemented to provide stable and sustainable returns to stakers while building protocol resilience against market volatility and operational risks. * The 40% yield cap applies specifically to the staking mechanism and does not limit any additional returns users may generate through other means, such as liquidity provision or other DeFi strategies using msUSD. * Mainstreet BVI reserves the right to adjust the yield cap percentage based on market conditions, protocol health, or other factors at its sole discretion. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-12.-fees-authorization) **12\. Fees; Authorization** The following only applies to Mint Users: Except as disclosed to you prior to completing a transaction as a Mint User, Mainstreet BVI will not charge you any fees for tokenizing assets for msUSD, or receiving msUSD. Any cost of executing a mint or redemption transaction is a cost reimbursement to cover friction such as blockchain gas fees or execution fees paid by Mainstreet BVI. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-13.-currency-conversion) **13\. Currency Conversion** The following only applies to Mint Users: All tokenizations of assets will be credited in msUSD to your whitelisted wallet(s) based on a rate of 0.998 msUSD per 1 USD ($1) of notional value (reflecting the 0.2% fee which covers costs of getting in and out of positions) (measured in stablecoin value, i.e., 1 USDC or 1 USDT, as the case may be, depending on the asset exchanged to mint msUSD), less applicable fees and transaction costs associated with the transaction, including, for the avoidance of doubt, fees paid associated with the applicable blockchain consensus mechanism. Such value shall be calculated by Mainstreet BVI based on the asset in its sole discretion, with any transaction fees associated with the blockchain consensus mechanism determined by requirements of the underlying blockchain at the time the transaction is submitted by the Mint User. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-14.-right-to-change-remove-features-or-suspend-delay-transactions) **14\. Right to Change/Remove Features or Suspend/Delay Transactions** The following only applies to Mint Users: We reserve the right to (i) change, suspend, or discontinue any aspect of the msUSD Services at any time, including hours of operation or availability of any feature, without notice and without liability and (ii) decline to process any issuance or redemption without prior notice and may limit or suspend your use of one or more msUSD Services at any time, in our sole discretion. Our rights under this paragraph are subject to our obligations under applicable law and licenses, including but not limited to our reasonable suspicion of inappropriate or illegal conduct. Suspension of your use of any of the msUSD Services will not affect your rights and obligations pursuant to these Terms. We may, in our sole discretion, delay issuances or redemptions if we reasonably believe the transaction is suspicious, may involve fraud or misconduct, violates applicable laws, or violates the terms of these Terms. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-15.-transactions-irreversible) **15\. Transactions Irreversible** The following only applies to Mint Users: Once a transaction has been initiated, it cannot be reversed, as further described in Section 11 above and pursuant to the underlying blockchain consensus mechanism. Except as set forth in these Terms, all transactions processed through the msUSD Services are nonrefundable. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-16.-restricted-activities) **16\. Restricted Activities** In connection with your holding or use of msUSD, or the msUSD Services (as applicable), you hereby agree that you will not: * violate (or assist any other party in violating) any applicable law, statute, ordinance, or regulation; * intentionally try to defraud (or assist in the defrauding of) Mainstreet BVI or other Mint Users or Holding Users; * provide false, inaccurate, or misleading information; * take any action that interferes with, intercepts, or expropriates any system, data, or information; * partake in any transaction involving the proceeds of illegal activity; * transmit or upload any virus, worm, or other malicious software or program; * attempt to gain unauthorized access to the Mainstreet BVI website, or any related networks or systems; * use the msUSD Services on behalf of any third party or otherwise act as an intermediary between Mainstreet BVI and any third parties; * collect any information from other Mint Users or Holding Users, including, without limitation, email addresses; * defame, harass, or violate the privacy or intellectual property rights of Mainstreet BVI or any Holding Users or Mint Users; or * upload, display or transmit any messages, photos, videos or other media that contain illegal goods, violent, obscene or copyrighted images or materials (such activities, "Restricted Activities"). ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-17.-prohibited-transactions) **17\. Prohibited Transactions** Using msUSD or the msUSD Services for transactions related to the following is prohibited, and Mainstreet BVI reserves the right to monitor and, if appropriate, block or otherwise prevent transactions that relate to: * any Restricted Persons; * weapons of any kind, including but not limited to firearms, ammunition, knives, explosives, or related accessories; * controlled substances, including but not limited to narcotics, prescription drugs, steroids, or related paraphernalia or accessories, unless licensed and authorized by the jurisdiction in which the User is based as well as by the jurisdiction in which the transaction takes place; * gambling activities including but not limited to sports betting, casino games, horse racing, dog racing, games that may be classified as gambling (i.e. poker), or other activities that facilitate any of the foregoing, unless licensed and authorized by the jurisdiction in which the User is based as well as by the jurisdiction in which the transaction takes place; * money-laundering or terrorist financing; * any sort of Ponzi scheme, pyramid scheme, or multi-level marketing program; * goods or services that infringe or violate any copyright, trademark, or proprietary rights under the laws of any jurisdiction; * credit repair services, or other services that may present consumer protection risks; * court ordered payments, structured settlements, tax payments, or tax settlements; * any unlicensed money transmitter activity; * layaway systems, or annuities; * counterfeit goods, including but not limited to fake or "novelty" IDs; * wash trading, front-running, insider trading, market manipulation or other forms of market-based fraud or deceit; * purchasing goods of any type from "Darknet" markets, or any other service or website that acts as a marketplace for illegal goods (even though such marketplace might also sell legal goods); or * any other matters, goods, or services that from time to time we communicate to you that are unacceptable and which, for example, may be restricted by our and your bank or payment partners (such transactions, "Prohibited Transactions"). In the event that Mainstreet BVI learns you are making any such Prohibited Transactions, Mainstreet BVI will consider you to be a violation of these Terms and may also suspend or terminate your status as a Mint User. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-18.-taxes) **18\. Taxes** The following only applies to Mint Users: Mainstreet BVI will maintain a record of your transaction history pursuant to the terms of the msUSD Mint User Agreement. This transaction history will include all transactions you complete with Mainstreet BVI including tokenizing assets for msUSD and redeeming msUSD for assets. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-19.-indemnification-release) **19\. Indemnification; Release** The following only applies to Mint Users: Section 22 of the msUSD Mint User Agreement is hereby incorporated into these Terms by reference and shall apply in all respects to these Terms and your use of msUSD Services and our products and services as contemplated herein. The following only applies to Holding Users: You agree to indemnify and hold Mainstreet BVI, its affiliates, and service providers, and each of their officers, directors, agents, joint venturers, employees, and representatives harmless from any claim or demand (including attorneys' fees and any losses, fines, fees or penalties imposed by any regulatory authority) arising out of your breach of these Terms, your violation of any law or regulation or your holding or use of msUSD. For the purpose of this Section 19, the term "losses" means all net costs reasonably incurred by us or the other persons referred to in this Section 19 which are the result of the matters set out in this Section 19 and which may relate to any claims, demands, causes of action, debt, cost, expense or other liability, including reasonable legal fees (without duplication). If you have a dispute with one or more Mint Users, Holding Users or third parties, you release Mainstreet BVI (and its affiliates and service providers, and each of their officers, directors, agents, joint ventures, employees and representatives) from all claims, demands, and damages (actual and consequential) of every kind and nature arising out of or in any way connected with such disputes. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-20.-limitation-of-liability-no-warranty) **20\. Limitation of Liability; No Warranty** The following only applies to Mint Users: Section 23 of the msUSD Mint User Agreement is hereby incorporated into these Terms by reference and shall apply in all respects to these Terms and your use of msUSD Services and our products and services as contemplated herein. The following only applies to Holding Users: YOU EXPRESSLY UNDERSTAND AND AGREE THAT MAINSTREET BVI AND OUR AFFILIATES AND SERVICE PROVIDERS, AND THEIR RESPECTIVE OFFICERS, DIRECTORS, AGENTS, JOINT VENTURERS, EMPLOYEES, AND REPRESENTATIVES WILL NOT BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, EXEMPLARY DAMAGES, OR DAMAGES FOR LOSS OF PROFITS INCLUDING BUT NOT LIMITED TO, DAMAGES FOR LOSS OF GOODWILL, USE, DATA, OR OTHER INTANGIBLE LOSSES (EVEN IF MAINSTREET BVI HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES), WHETHER BASED ON CONTRACT, TORT, NEGLIGENCE, STRICT LIABILITY, OR OTHERWISE, RESULTING FROM: (I) THE USE OR THE INABILITY TO HOLD OR USE MSUSD; (II) THE COST OF PROCUREMENT OF SUBSTITUTE GOODS AND SERVICES RESULTING FROM ANY GOODS, DATA, INFORMATION, OR SERVICES PURCHASED OR OBTAINED OR MESSAGES RECEIVED OR TRANSACTIONS ENTERED INTO INVOLVING MSUSD; (III) UNAUTHORIZED ACCESS TO OR ALTERATION OF YOUR TRANSMISSIONS OR DATA; OR (IV) ANY OTHER MATTER INVOLVING MSUSD. SOME JURISDICTIONS DO NOT ALLOW THE EXCLUSION OF CERTAIN WARRANTIES OR THE LIMITATION OR EXCLUSION OF LIABILITY FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES. ACCORDINGLY, SOME OF THE LIMITATIONS SET FORTH ABOVE MAY NOT APPLY TO YOU. IF YOU ARE DISSATISFIED WITH MSUSD, YOUR SOLE AND EXCLUSIVE REMEDY IS TO DISCONTINUE HOLDING AND USE OF MSUSD. MSUSD IS PROVIDED "AS IS" AND WITHOUT ANY REPRESENTATION OR WARRANTY, WHETHER EXPRESS, IMPLIED OR STATUTORY. MAINSTREET BVI, OUR AFFILIATES, AND OUR RESPECTIVE OFFICERS, DIRECTORS, AGENTS, JOINT VENTURERS, EMPLOYEES, AND SUPPLIERS SPECIFICALLY DISCLAIM ANY IMPLIED WARRANTIES OF TITLE, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR NON-INFRINGEMENT. MAINSTREET BVI MAKES NO WARRANTY THAT (I) MSUSD WILL MEET YOUR REQUIREMENTS, (II) MSUSD WILL BE UNINTERRUPTED, TIMELY, SECURE, OR ERROR-FREE, OR (III) THE QUALITY OF ANY PRODUCTS, SERVICES, INFORMATION, OR OTHER MATERIAL PURCHASED OR OBTAINED BY YOU WILL MEET YOUR EXPECTATIONS. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-21.-force-majeure) **21\. Force Majeure** Mainstreet BVI shall have no liability for any failure or delay resulting from any condition beyond our reasonable control, including but not limited to governmental action or acts of terrorism, earthquake, fire, flood, or other acts of God, labor conditions, power failures, equipment failures, and Internet disturbances. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-22.-amendments) **22\. Amendments** Mainstreet BVI may amend any portion of these Terms at any time by posting the revised version of these Terms with an updated revision date. The changes will become effective, and shall be deemed accepted by you, the first time you access or use msUSD or the msUSD Services after the initial posting of the revised Terms and shall apply on a going-forward basis with respect to transactions initiated after the posting date. In the event that you do not agree with any such modification, your sole and exclusive remedy is to terminate your use of the msUSD Services and terminate your status as a Mint User (if any). You agree that we shall not be liable to you or any third party as a result of any losses suffered by any modification or amendment of these Terms. If the revised Terms include a material change, we will provide you with prior notice via our website and/or email before the material change becomes effective. For this purpose a "material change" means a significant change other than changes that (i) are to your benefit, (ii) are required to be made to comply with applicable laws and/or regulations or as otherwise required by one of our regulators, (iii) relates to a new product or service made available to you, or (iv) otherwise clarifies an existing term. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-23.-assignment-and-third-party-holders) **23\. Assignment and Third-Party Holders** You may not transfer or assign these Terms or any rights or obligations hereunder, by operation of law or otherwise and any such attempted assignment shall be void, subject to the following exception. Sending msUSD to an address will automatically transfer and assign to that Holder, and any subsequent Holder, the right to redeem msUSD for USD so long as the Holder is eligible to, and does, register as a Mint User. Each Holding User is subject to all terms of these Terms as if a user including, but not limited to, the requirements to not transact with Blocked Addresses and not engage in Restricted Activities or Prohibited Transactions. We reserve the right to freely assign these Terms and the rights and obligations of these Terms to any third party at any time without notice or consent. If you object to such transfer or assignment, you may stop holding and using msUSD; further if you are a Mint User, you may also stop using our msUSD Services, and terminate these Terms by contacting Support and asking us to terminate your status as a Mint User. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-24.-survival) **24\. Survival** Upon termination of these Terms (and termination of your status as a Mint User, if you are a Mint User), all rights and obligations of the parties that by their nature are continuing will survive such termination. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-25.-website-third-party-content) **25\. Website; Third Party Content** Mainstreet BVI strives to provide accurate and reliable information and content on the Mainstreet BVI website, but such information may not always be correct, complete, or up to date. Mainstreet BVI will update the information on the Mainstreet BVI website as necessary to provide you with the most up to date information, but you should always independently verify such information. The Mainstreet BVI website may also contain links to third-party websites, applications, events or other materials ("Third Party Content"). Such information is provided for your convenience and links or references to Third Party Content do not constitute an endorsement by Mainstreet BVI of any products or services. Mainstreet BVI shall have no liability for any losses incurred as a result of actions taken in reliance on the information contained on the Mainstreet BVI website or in any Third Party Content. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-26.-governing-law-venue) **26\. Governing Law; Venue** The laws of the British Virgin Islands shall govern these Terms. The courts of the British Virgin Islands shall have exclusive jurisdiction to settle any dispute arising out of, or connected with, these Terms. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-27.-entire-agreement) **27\. Entire Agreement** The following applies to both Mint Users and Holding Users: The failure of Mainstreet BVI to exercise or enforce any right or provision of these Terms shall not constitute a waiver of such right or provision. If any provision of these Terms shall be adjudged by any court of competent jurisdiction to be unenforceable or invalid, that provision shall be limited or eliminated to the minimum extent necessary so that these Terms shall otherwise remain in full force and effect and remain enforceable between the parties, except as specified in Section 27. Furthermore, if any portion of these Terms, whether in whole, or in part, shall be adjudged by any court of competent jurisdiction to be unenforceable or invalid against certain persons or categories of persons that are purportedly bound by these Terms, such portion of these Terms shall otherwise remain in full force and effect and remain enforceable as to any other persons bound by these terms. The headings and explanatory text are for reference purposes only and in no way define, limit, construe, or describe the scope or extent of such section. These Terms, the msUSD Mint User Agreement, the General Terms of Service, and Mainstreet BVI's policies governing the holding or use of msUSD, the use of the msUSD Services referenced herein, and the Privacy Policy constitute the entire agreement between you and Mainstreet BVI with respect to the holding or use of msUSD, and the use of the msUSD Services. These Terms are not intended and shall not be construed to create any rights or remedies in any parties other than you and Mainstreet BVI and other Mainstreet BVI affiliates which each shall be a third-party beneficiary of these Terms, and no other person shall assert any rights as a third-party beneficiary hereunder. The following only applies to Mint Users: Notwithstanding anything to the contrary set forth in these Terms or otherwise, in the event of a conflict between any term set forth herein and any term set forth in the msUSD Mint User Agreement (i) in connection with any msUSD transaction, the terms of these Terms shall control, and (ii) in respect of any other Digital Currency transaction, the terms of the msUSD Mint User Agreement shall control. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-28.-e-sign-consent) **28\. E-Sign Consent** Please be aware that your consent to the electronic delivery of disclosures is required to use any of the Services (as defined in the msUSD Mint User Agreement). If you are unable or unwilling to provide such consent, you will not be able to become a Mint User. Once you are a Mint User you can rescind your consent to electronic delivery of disclosures at any time and receive paper communications as set forth below. This E-Sign Consent applies to any and all communications and/or disclosures that Mainstreet BVI is legally required to provide to you in writing in connection with your status as a Mint User and any related products and services ("Communications"). This E-Sign Consent supplements and is to be construed in accordance with the terms and conditions contained in the msUSD Mint User Agreement. When you use the Services, you agree that we may provide you with any Communications in electronic format, and that we may discontinue sending paper Communications to you, unless and until you withdraw your consent as described below. Your consent to receive electronic communications and transactions includes, but is not limited to: * Legal and regulatory disclosures and communications associated with your registration or the Services; * Notices or amendments relating to the msUSD Mint User Agreement, the Privacy Policy, the Cookie Policy or this E-Sign Consent; * Communications regarding any transactions; and * Responses to claims filed in connection with your relationships with Mainstreet BVI as a Mint User. **Methods of Communication** All Communications that we provide to you in electronic form will be provided by e-mail, by posting to the Mainstreet BVI website (mainstreet.finance), or through other electronic communication such as mobile push notification or text message. **Hardware Requirements** In order to access, view, and retain electronic Communications that we make available to you, you must have the following software and hardware: * A valid e-mail address. * A computer or other device capable of accessing the internet with a current web browser that supports at least 128 bit encryption, such as Google Chrome, Apple® Safari, Microsoft® Internet Explorer, or Mozilla Firefox®. The browser must have cookies enabled. * The computer must also have a printer or disk drive to print or retain copies of this E-Sign Consent and any Communications. **Updating your Information** It is your responsibility to provide us with a true, accurate and complete e-mail address, your contact information, and other information related to this E-Sign Consent and your registration, keep such information up to date. **Withdrawing Consent** You may withdraw your consent to receive electronic Communications at any time by sending us a written request by email. You understand that any withdrawal of your consent to receive electronic Communications will be effective only after Mainstreet BVI has had a reasonable period of time to process your withdrawal. You understand that withdrawing your consent to electronic Communications will likely result in the termination of your status as a Mint User. **Communications in Writing** All electronic Communications from us to you will be considered "in writing" and shall have the same meaning and effect as a paper Communication. You should print or download for your records a copy of this E-Sign Consent and any other Communication that is important to you. You acknowledge and agree that Communications are considered received by you within 24 hours of the time posted to the Mainstreet BVI website (mainstreet.finance), or within 24 hours of the time emailed to you unless Mainstreet BVI receives notice that the email was not delivered. **General** Mainstreet BVI reserves the right, in our sole discretion, to cancel this electronic Communication service, or to terminate or change the terms and conditions on which Mainstreet BVI provides electronic Communications. Mainstreet BVI will provide you with notice of any such termination or change as required by law. [PreviousmsUSD and smsUSD Terms and Conditions - EEA](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-eea) [NextmsUSD and smsUSD Mint User Agreement - Non EEA](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-mint-user-agreement-non-eea) Last updated 5 months ago * [1\. About msUSD and smsUSD](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-1.-about-msusd-and-smsusd) * [2\. Scope of msUSD, smsUSD, and Key Terms](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-2.-scope-of-msusd-smsusd-and-key-terms) * [3\. Applicable Laws and Regulations; AML and CTF](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-3.-applicable-laws-and-regulations-aml-and-ctf) * [4\. Eligibility; Limitations](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-4.-eligibility-limitations) * [4A. US Persons Prohibition](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-4a.-us-persons-prohibition) * [5\. Support](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-5.-support) * [6\. Copies, Wrappers, and Forks Not Supported](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-6.-copies-wrappers-and-forks-not-supported) * [6A. Staking msUSD and the Staking Model](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-6a.-staking-msusd-and-the-staking-model) * [6B. Third-Party Partner Minting](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-6b.-third-party-partner-minting) * [7\. msUSD Supported Blockchains and Smart Contract Modifications](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-7.-msusd-supported-blockchains-and-smart-contract-modifications) * [8\. Privacy](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-8.-privacy) * [9\. Communications](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-9.-communications) * [10\. Limited License; IP Rights](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-10.-limited-license-ip-rights) * [11\. Risk Factors & Disclosures](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-11.-risk-factors-and-disclosures) * [11A. Delta-Neutral Strategy Risks and Operational Disclaimers](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-11a.-delta-neutral-strategy-risks-and-operational-disclaimers) * [11B. Yield Cap and Excess Returns](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-11b.-yield-cap-and-excess-returns) * [12\. Fees; Authorization](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-12.-fees-authorization) * [13\. Currency Conversion](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-13.-currency-conversion) * [14\. Right to Change/Remove Features or Suspend/Delay Transactions](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-14.-right-to-change-remove-features-or-suspend-delay-transactions) * [15\. Transactions Irreversible](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-15.-transactions-irreversible) * [16\. Restricted Activities](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-16.-restricted-activities) * [17\. Prohibited Transactions](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-17.-prohibited-transactions) * [18\. Taxes](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-18.-taxes) * [19\. Indemnification; Release](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-19.-indemnification-release) * [20\. Limitation of Liability; No Warranty](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-20.-limitation-of-liability-no-warranty) * [21\. Force Majeure](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-21.-force-majeure) * [22\. Amendments](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-22.-amendments) * [23\. Assignment and Third-Party Holders](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-23.-assignment-and-third-party-holders) * [24\. Survival](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-24.-survival) * [25\. Website; Third Party Content](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-25.-website-third-party-content) * [26\. Governing Law; Venue](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-26.-governing-law-venue) * [27\. Entire Agreement](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-27.-entire-agreement) * [28\. E-Sign Consent](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/msusd-and-smsusd-terms-and-conditions-non-eea#id-28.-e-sign-consent) --- # Introduction | Mainstreet.Finance ![](https://mainstreet-finance.gitbook.io/mainstreet.finance/~gitbook/image?url=https%3A%2F%2F2732132553-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FvwA4hjA4e9xA076Qn9YB%252Fuploads%252FRX0qK6ZjDCs9llLPN8VD%252FIntroduction2.png%3Falt%3Dmedia%26token%3D140bf2c5-28bf-4a5a-93da-bf9f52e1b5c0&width=768&dpr=4&quality=100&sign=292397e2&sv=2) Main St revolutionizes yield generation on Sonic by harnessing **delta-neutral options arbitrage** strategies through a sophisticated dual-token system. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/getting-started#evolution-of-delta-neutral-dollars) **Evolution of Delta-Neutral Dollars** Delta-neutral trading has traditionally been reserved for institutional investors with sophisticated infrastructure to balance positions across spot and derivatives markets. These strategies capture market upside while hedging downside risk. In March 2023, Arthur Hayes outlined a vision for creating synthetic dollars using crypto collateral and derivatives in his "Dust on Crust" publication. This concept was first successfully implemented at scale by Ethena, which pioneered the basis trade approach to create a yield-bearing synthetic dollar. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/getting-started#main-sts-options-first-approach) **Main St's Options-First Approach** Main St builds upon this foundation with a different strategy focus. While Ethena specializes in the basis trade (cash and carry), Main St pioneers options arbitrage as our primary yield engine. This approach captures inefficiencies between implied and realized volatility in options markets, providing a complementary alternative in the delta-neutral ecosystem. Our infrastructure layer for options volatility strategies aims to scale to $500M-$1B with 30%+ APY, establishing Main St as the "savings account for crypto natives." ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/getting-started#market-timing-advantage) **Market Timing Advantage** The crypto ecosystem is experiencing what many are calling "DeFi Spring" — a renaissance period with unprecedented innovation across DeFi primitives. Simultaneously, options markets have grown substantially, with Bitcoin options open interest approaching $35 billion — creating an ideal environment for sophisticated options strategies that were previously inaccessible to most participants. This environment creates an ideal window for our token ecosystem: * Capturing significant yield from options market inefficiencies * Establishing early market leadership in options-based yield strategies * Leveraging our quantitative team's sophisticated prediction models * Participating in the growth of one of crypto's largest but underutilized markets * Benefiting from renewed DeFi enthusiasm focused on sustainable yield generation ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/getting-started#main-sts-dual-token-system-yield-made-simple) **Main St's Dual-Token System: Yield Made Simple** Main St democratizes institutional-grade options strategies through our dual-token system: * **msUSD**: The base token that maintains a soft dollar peg * **smsUSD**: The staking token that accrues yield when users stake their msUSD This structure delivers hassle-free earnings through a staking mechanism. Sell anytime, move between chains via LayerZero, and deploy in DeFi applications for additional yields. While msUSD maintains a soft dollar peg for convenience, it is not a stablecoin. Its redemption value is tied to the protocol's coverage ratio and insurance fund, with different risk parameters than USDC or USDT. [PreviousWelcome to Main St](https://mainstreet-finance.gitbook.io/mainstreet.finance) [NextTeam](https://mainstreet-finance.gitbook.io/mainstreet.finance/getting-started/team) Last updated 7 months ago --- # Main St Token Ecosystem Overview | Mainstreet.Finance Main St's flagship token system delivers institutional-grade returns through a sophisticated staking model while maintaining a soft dollar peg for simplified accounting. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar#key-features) **Key Features** Main St transforms complex delta-neutral trading into a simple dual-token system where yield is earned through staking: * **msUSD**: The base token that maintains a soft dollar peg * **smsUSD**: The staking token that accrues yield when users stake their msUSD ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar#proof-of-reserves-and-transparency) **Proof of Reserves & Transparency** Main St sets a higher standard for stablecoin transparency through continuous, cryptographically verifiable attestation of assets backing msUSD. #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar#live-balance-attestation) **Live Balance Attestation** Unlike traditional stablecoins that rely on infrequent, opaque attestation reports, Main St integrates with Deribit's Proof of Reserves (PoR) system to provide: * **Daily Updates:** Real-time visibility into collateral balances with daily cryptographic snapshots * **Verifiable Inclusion:** Independent confirmation of our holdings through Deribit's public PoR data * **Trust-Minimized Verification:** Third-party validation without accessing our internal account data #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar#how-verification-works) **How Verification Works** 1. **Deribit Daily Snapshots:** Each day, Deribit publishes cryptographically signed snapshots containing anonymized balance data for all accounts 2. **Main St Proof Publication:** We publish verifiable proofs including digital signatures and proof IDs that can be independently validated 3. **Open-Source Verification:** Anyone can use our public verification tools to confirm our collateral coverage matches our transparency dashboard #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar#why-this-matters) **Why This Matters** This framework transforms stablecoin transparency from a marketing promise to a verifiable fact, enabling users to conduct meaningful due diligence on our collateral claims in real-time. **Access Our Transparency Tools:** * Live Collateral Balances: [https://mainstreet.finance/transparency](https://mainstreet.finance/transparency) * Verify Proof of Reserves: [https://mainstreet.finance/transparency/por](https://mainstreet.finance/transparency/por) * GitHub Repository: Open-source verification scripts and tools ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar#asset-backing) **Asset Backing** Each msUSD is fully collateralized by a diversified portfolio deployed in sophisticated delta-neutral strategies: * **USDC:** Stablecoin component providing baseline stability * **Large-cap cryptocurrencies:** Primarily Bitcoin (BTC) and Ethereum (ETH), selected for their deep liquidity in both spot and options markets * **Additional assets:** May include other liquid cryptocurrencies with established options markets based on market conditions and strategy optimization The specific allocation between these collateral types will vary based on prevailing market conditions and strategy requirements. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar#yield-mechanism) **Yield Mechanism** Returns primarily flow from options arbitrage with supplementary strategies when needed: 1. Options Volatility Arbitrage utilizing sophisticated options trading strategies primarily executed on Deribit 2. Derivatives Yield from perpetual futures positions (utilized when options strategies reach capacity) 3. DeFi Optimization through on-chain liquidity pools (deployed selectively when primary strategies are fully utilized) 4. Yield Distribution through the staking mechanism (smsUSD) ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar#access-and-flexibility) **Access & Flexibility** KYC-verified users can mint and redeem msUSD at a rate of 1 USDC to 0.998 msUSD (reflecting the 0.2% fee which covers costs of getting in and out of positions) subject to coverage ratio. After minting, users can stake their msUSD to receive smsUSD and begin earning yield. The LayerZero integration enables seamless cross-chain movement with optimized paths between Sonic and Ethereum. Actual yields fluctuate based on prevailing market funding rates. [PreviousTeam](https://mainstreet-finance.gitbook.io/mainstreet.finance/getting-started/team) [NextTrading Strategy Framework](https://mainstreet-finance.gitbook.io/mainstreet.finance/msusd-yield-generating-dollar/trading-strategy-framework) Last updated 5 months ago --- # Key Addresses | Mainstreet.Finance ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/technical#core-contracts) Core contracts #### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/technical#ethereum) **Ethereum**: **msUSDV2:** 0x4ba01f22827018b4772CD326C7627FB4956A7C00 **Minter:** 0x70C0c12fBb3acFFf8E48aBf027436971cF2Ade14 **msY:** 0x890A5122Aa1dA30fEC4286DE7904Ff808F0bd74A **msYBridger:** 0x22eB4e61FE4D4e31113979e8b1F4377D46bc98F2 **msUSDSilo:** 0x6f188821283923953121f35d74E69a5e73EA6871 **FeeSilo:** 0x6665efDe9f1916a9e16f7f955375ecD392b98B81 **CustodianManager:** 0x4cC94169605069DDf82C815493Cf6048f1935D0A **USDC oracle:** 0x098e47096856eb292D8B2D379b74E987E23CD2Af **Custody multisig:** 0x6580ADAcC5dD7328EaBde0d7aF257535C08DCCc4 **DAO Multisig**: 0x0eAe4ACb10f3e5696cF6B0de33693eF8EC571858 **Insurance Fund:** 0x0eAe4ACb10f3e5696cF6B0de33693eF8EC571858 ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/technical#legacy-contracts) Legacy Contracts **msUSDV2 Token Contract:** 0xE5Fb2Ed6832deF99ddE57C0b9d9A56537C89121D **smsUSD Token Contract:** 0xc7990369DA608C2F4903715E3bD22f2970536C29 **msUSDSilo Token Contract:** 0xecC73952d38E98D37Cb0151615dFDB73af65FF6c **Mint and Redeem Contract:** 0xb1E423c251E989bd4e49228eF55aC4747D63F54D **Custodian Manager:** 0x57A4082E43DeD720e93838d34C0a6acd43AdA7e0 **Whitelist Manager:** 0x55cd9907b8A5e6E678a479C9eedcD7583dc81238 ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/technical#cross-chain-deployments) Cross-Chain Deployments msUSD is deployed across multiple chains via LayerZero's OFT standard. Token addresses on connected chains will be published here as they become available. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/technical#multisig-wallets) Multisig Wallets 0x861a58d3DE287196c5546d10c7afFa479E0963e4 ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/technical#liquidity-pools) Liquidity Pools Official liquidity pool addresses will be listed here as they are established. [PreviousInsurance Fund](https://mainstreet-finance.gitbook.io/mainstreet.finance/risk-factors/insurance-fund) [NextWatchPug Security Audit 2](https://mainstreet-finance.gitbook.io/mainstreet.finance/audits/watchpug-security-audit-2) Last updated 6 days ago --- # WatchPug Security Audit 2 | Mainstreet.Finance 125KB [Mainstreet\_StakedmsUSD\_&\_msYBridger\_Audit\_Report\_by\_WatchPug\_rev.pdf](https://2732132553-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FvwA4hjA4e9xA076Qn9YB%2Fuploads%2FAoUP6TpSuS16U2PKmdlp%2FMainstreet_StakedmsUSD_%26_msYBridger_Audit_Report_by_WatchPug_rev.pdf?alt=media&token=80d2fb15-44c3-42a2-9f4b-51494cb38085) PDF Download[Open](https://2732132553-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FvwA4hjA4e9xA076Qn9YB%2Fuploads%2FAoUP6TpSuS16U2PKmdlp%2FMainstreet_StakedmsUSD_%26_msYBridger_Audit_Report_by_WatchPug_rev.pdf?alt=media&token=80d2fb15-44c3-42a2-9f4b-51494cb38085) [PreviousKey Addresses](https://mainstreet-finance.gitbook.io/mainstreet.finance/technical/key-addresses) [NextWatchPug Security Audit 1](https://mainstreet-finance.gitbook.io/mainstreet.finance/audits/watchpug-security-audit-1) Last updated 1 day ago --- # Risk Factors | Mainstreet.Finance msUSD is not a stablecoin but a yield-generating rebasing token with a soft dollar peg, creating a fundamentally different risk profile than USDC or USDT. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/risk-factors#key-distinctions) Key Distinctions Traditional stablecoins maintain their peg through fiat reserves. In contrast, msUSD's value derives from sophisticated delta-neutral trading strategies, with redemption value dependent on the current coverage ratio. ### [](https://mainstreet-finance.gitbook.io/mainstreet.finance/risk-factors#primary-risk-categories) Primary Risk Categories **Options Strategy Risks** * **Volatility Risk:** Mispricing between realized and implied volatility can create losses - unexpected volatility spikes can impact short positions, while lower-than-predicted volatility can affect long positions * **Delta Hedging Costs:** Extreme market conditions may increase the costs of maintaining delta neutrality * **Liquidity Risk:** Options market depth limitations could impact strategy execution during high volatility periods * **Model Risk:** Machine learning volatility prediction models may experience periods of reduced forecasting accuracy * **Options Market Disruptions:** Temporary dislocations in options pricing may occur during extreme market events **Market Structure Risks** * **USDT Depegging:** Could impact positions or collateral denominated in USDT * **Basis Risk:** Potential for spot and derivatives markets to diverge unexpectedly * **Term Structure Shifts:** Rapid changes in volatility term structure could impact options positions **Custodial & Exchange** * **Operational Dependence:** Reliance on institutional custodians and options exchanges * **Counterparty Risk:** Mitigated through exchange selection and position diversification * **Planned Diversification:** Strategy implementation across multiple venues to minimize venue-specific risks **Technical & Operational** * **Smart Contract Vulnerabilities:** Potential risks in contract implementation * **Cross-Chain Risks:** Issues that may occur during bridging operations **Execution Systems:** Temporary failures in automated hedging or execution systems [PreviousReturns Calculation & Distribution](https://mainstreet-finance.gitbook.io/mainstreet.finance/returns-calculation-and-distribution) [NextInsurance Fund](https://mainstreet-finance.gitbook.io/mainstreet.finance/risk-factors/insurance-fund) Last updated 7 months ago --- # General Risk Disclosures | Mainstreet.Finance Last Revised on June 11th, 2025 Please consider information in this Risk Disclosure Statement ("Statement") as a general overview of the risks associated with the services offered by Main St Finance Ltd and its affiliates (the "Services"), including our options arbitrage strategies and other delta-neutral approaches, made for your awareness only. We do not intend to provide investment or legal advice through this Statement and make no representation that the Services described herein are suitable for you or that information contained herein is reliable, accurate or complete. We do not guarantee or make any representations or assume any liability regarding financial results based on the use of the information in this Statement, and further do not advise to rely on such information in the process of making a fully informed decision whether or not to use the Services. The risks outlined in this Statement are not exhaustive and this Statement only outlines the general nature of certain risks associated with crypto assets, and does not discuss in detail all risks associated with holding or trading crypto assets. Users should undertake their own assessment as to the suitability of using crypto assets and associated Services based on their own investigations, research and based on their experience, financial resources, and goals. You should not deal with crypto assets unless you understand their nature and the extent of your exposure to risk. Note that specific disclosures and terms of service will apply with respect to various offerings of Main St Finance Ltd, which will be published separately. Users should refer to those terms in addition to the disclosures herein when deciding whether to utilize the Services. For the purpose of this Statement "you", "your", and "User" mean a user of our services and "we", "us", "our", or "Main St" mean Main St Finance Ltd. Users are strongly advised to read this Risk Disclosure Statement carefully before deciding to start using the Services. RISK OF LOSS IN TRADING CRYPTO ASSETS CAN BE SUBSTANTIAL AND YOU SHOULD, THEREFORE, CAREFULLY CONSIDER WHETHER SUCH ACTIVITY IS APPROPRIATE FOR YOU IN LIGHT OF YOUR CIRCUMSTANCES AND FINANCIAL RESOURCES. YOU SHOULD BE AWARE OF THE FOLLOWING: **Crypto Assets Are Not Legal Tender In Most Jurisdictions** Most crypto assets are not backed by any central government or legal tender (except in few, discrete cases), meaning each country has different standards. There is no assurance that a person who accepts crypto assets as payment today will continue to do so in the future. Holders of crypto assets put their trust in a digital, decentralized, and partially anonymous system that relies on peer-to-peer networks and cryptography to maintain its integrity, and neither vendors nor individuals have an obligation to accept crypto assets as payment in the future; **Loss of value, Volatility and Uncertainty of Future Performance** There is typically limited or no fundamental reasoning behind the pricing of crypto assets, creating the risk of volatility and unpredictability in the price of crypto assets relative to fiat currencies. Crypto assets have had historically higher price volatility than fiat currencies, including irrational and extreme moves in price as the process for valuation can be speculative and uncertain. **Liquidity Risk** Crypto assets can have limited liquidity that can make it difficult or impossible to sell or exit a position when desired. This can occur at any time, especially during periods of high volatility. **Market forces** Trading in crypto assets may be susceptible to irrational market forces, such as speculative bubbles, manipulation, scams, and fraud. **Financial Crime and Cyber Attacks** Cyber crime relating to crypto assets can be more prevalent than other financial crime as the ecosystem is totally digital and traditional governance and risk mitigants may be lacking. For example, a 51% attack is an attack on a blockchain by any person or group of persons who control more than 50% of the network. Attackers with majority control of a network can interrupt the recording of new blocks, alter payment history, and subvert funds. Users are susceptible to malware and fake/hijacked addresses and other forms of cyber-attacks and Users should always take care of passwords and double check the addresses and URLs before loading software or interacting with any platform, protocol, or service. **Absence of Control** Main St is not a broker, agent or advisor and has no fiduciary relationship or obligation to Users in connection with any transaction or other decision or activity undertaken by you using the Services. We do not control whether your use of the Services is consistent with your financial goals. It is up to Users to assess whether their financial resources are appropriate for their respective activity with us and risk appetite in the products and services you use. **Availability of Services** We do not guarantee that the Services will be available at any given time or that the Services will not be subject to unplanned service interruptions or network congestion. You may not be able to buy, sell, store, transfer, redeem, send, or receive crypto assets when you want to. **Technology Risk** The risks of crypto assets being transacted via new technologies (including distributed ledger technologies) include, among other things, anonymity, irreversibility of transactions, accidental transactions, transaction recording, and settlement. Transactions in crypto assets on a blockchain relies on the proper functioning of complex software, which exacerbates the risk of access to or use of crypto assets being impaired or prevented. Additionally, the two-token staking system (msUSD and smsUSD) involves complex smart contract interactions that may be vulnerable to technical failures, smart contract exploits, or other unforeseen circumstances. The staking mechanism, exchange rate calculations, and yield distribution system add additional layers of technical complexity and potential points of failure. Moreover, there is risk of failures, defects, hacks, exploits, protocol errors, or unforeseen circumstances that might occur in connection with a crypto asset or the technologies on which the crypto asset is based. **Irreversible Transactions** Transactions in crypto assets are generally irreversible. As a result, losses due to fraudulent or accidental transactions may not be recoverable. **Options Market Risks** Options markets in cryptocurrency have unique characteristics that may create additional risks beyond those present in traditional cryptocurrency trading. Options prices can be affected by numerous factors including the volatility of the underlying asset, time to expiration, interest rates, and market sentiment. The pricing of options can become inefficient or irrational during periods of extreme market stress. Options markets may also have less liquidity than spot markets, particularly for specific strikes or expiration dates, which can impact execution quality and increase slippage. Additionally, options markets operate with their own mechanics and terminology (including "Greeks" such as Delta, Gamma, Theta, and Vega) that affect pricing and risk management in ways that may be complex and difficult to predict. **Third Party Risk** Third parties such as payment providers, custodians, exchanges, banking partners, and authorized Partner Protocols may be involved in the provision of the Services. You may be subject to the terms and conditions of these third parties, and Main St cannot be responsible for any losses these third parties may cause you. **Third-Party Partner Protocol Risks** Main St may authorize third-party Partner Protocols to facilitate access to our Services, including minting and staking functionality. Using Partner Protocols introduces additional risks that users should carefully consider: **Regulatory Compliance Risk:** Partner Protocols may not maintain the same compliance standards as Main St, potentially exposing users to regulatory risks in their jurisdiction **Operational Risk:** Partner Protocols operate independently and may experience technical failures, security breaches, or service interruptions that are beyond Main St's control **Data Privacy Risk:** Information you provide to Partner Protocols is governed by their privacy policies, not Main St's, and we cannot control how they handle your personal data **Counterparty Risk:** Partner Protocols may cease operations, lose authorization, or become insolvent, potentially affecting your ability to access services or recover assets **Technical Integration Risk:** Interface issues between Partner Protocols and Main St's systems could result in transaction failures, delays, or unexpected costs **Fee and Terms Risk:** Partner Protocols may impose additional fees, terms, or restrictions that differ from Main St's direct services **Customer Support Risk:** Disputes or issues arising from Partner Protocol interactions may be subject to their dispute resolution processes, not Main St's **Authorization Revocation Risk:** Main St reserves the right to revoke Partner Protocol authorization at any time, which could disrupt ongoing services or transactions Users should carefully evaluate Partner Protocols before use and understand that Main St makes no representations or warranties regarding Partner Protocol operations, security, or reliability. Main St is not liable for any losses or damages arising from your use of Partner Protocols. **Taxation and Disclosure of Information** You are responsible for determining the taxes to which you may be subject and their application when using the Services. It is your responsibility to report and pay any taxes that may arise from transactions and you acknowledge that Main St does not provide legal or tax advice regarding such transactions. If you have concerns about your tax treatment or obligations you may wish to seek independent advice. You understand that when, where, and as required by applicable law, Main St will disclose available information relating to transactions transfers, distributions or payments to the appropriate regulatory and tax authorities or other public authorities. Similarly, when, where and as required by applicable law, Main St will withhold taxes related to your transactions, transfers, distributions or payments. **No Investment and Legal Advice** Communications or information provided by Main St shall not be considered or construed as investment advice, financial advice, trading advice, or any other type of advice. The User is the only party who can determine whether an investment, investment strategy or related transaction is appropriate based on his or her personal investment objectives, financial situation and risk tolerance, and shall be solely responsible for any losses or liabilities that may result. **Regulatory Risk** The regulation of crypto assets and platforms is uncertain in many jurisdictions and Main St cannot be held responsible for compliance with legal rules of countries from which customers, on their own initiative, access the Services. Moreover, changes in rules applicable to crypto assets may considerably impact on the prices of those assets and are unpredictable. You further acknowledge the above list of risks is non-exhaustive and there may also be unpredictable risks. **Staking Model Risks** The msUSD and smsUSD staking model involves specific risks that users should be aware of: * **Staking Contract Risk:** The smart contracts governing the staking mechanism may contain vulnerabilities despite security audits * **Liquidity Risk for Staked Assets:** When staking msUSD for smsUSD, users face reduced liquidity as unstaking may require processing time * **Exchange Rate Fluctuations:** The exchange rate between msUSD and smsUSD reflects accumulated yield and may not always increase linearly * **Unstaking Delays:** The standard 7-day processing period for larger redemptions may create timing risks during volatile market conditions * **Yield Variability:** The yield accrual to smsUSD holders may fluctuate based on options strategy performance and market conditions * **Staking Pool Concentration:** Large unstaking events by major participants could impact strategy performance and redemption timelines * **Smart Contract Interactions:** Multiple contract interactions in the staking process increase the attack surface for potential exploits **Options Arbitrage and Delta-Neutral Strategy Risks** The options arbitrage and delta-neutral strategies employed by Main St to back msUSD involve sophisticated trading techniques across spot and derivatives markets. While these strategies are designed to minimize directional price exposure, they may be subject to specific risks including but not limited to: * Volatility Risk: Divergence between implied and realized volatility that differs from model predictions * Options Pricing Risk: Unpredictable changes in options pricing due to market sentiment shifts * Delta Hedging Risk: Imperfect hedging during rapid market movements may create temporary directional exposure * Options Liquidity Risk: Limited liquidity in specific options contracts may impact execution efficiency * Funding Rate Risk: For supplementary basis trade strategies, extended periods of negative funding rates may reduce yields * Counterparty Risk: Potential failure of exchanges or other counterparties involved in strategy execution * Model Risk: Machine learning models may experience periods of reduced predictive accuracy * Options Greeks Risk: Unexpected changes in options Greeks (Delta, Gamma, Theta, Vega) may require rapid position adjustments * Smart Contract Risk: Potential vulnerabilities in blockchain protocols or smart contracts * **Yield Distribution Risk:** Fluctuations in strategy performance may affect the exchange rate between msUSD and smsUSD * **Strategy Capacity Limitations:** As the protocol scales, diminishing returns may occur in certain market conditions * **Staking Reward Calculation Risk:** Complex yield calculations and distributions between msUSD and smsUSD may be subject to calculation errors These strategy-specific risks may affect the underlying performance of the reserve assets backing msUSD and should be considered alongside general crypto asset risks. [PreviousWatchPug Security Audit 1](https://mainstreet-finance.gitbook.io/mainstreet.finance/audits/watchpug-security-audit-1) [NextPrivacy Policy](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/privacy-policy) Last updated 6 months ago ---