Liberty Reserve Terms of Service
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THIS AGREEMENT SETS FORTH THE TERMS AND CONDITIONS UNDER WHICH LIBERTY RESERVE WILL PROVIDE ITS ACCOUNT SERVICES. THIS AGREEMENT DESCRIBES USER’S RIGHTS AND OBLIGATIONS WHEN USING THESE SERVICES. USER MUST READ THE AGREEMENT CAREFULLY AND BE SURE USER UNDERSTANDS THESE TERMS AND CONDITIONS. CREATION OR USE OF A LIBERTY RESERVE ACCOUNT MEANS USER ACCEPTS ALL THE TERMS AND CONDITIONS OF THIS AGREEMENT. THE PARTIES TO THIS AGREEMENT ARE THE ISSUER AND THE USER. 1. Definition of TermsUSD backing the Liberty Reserve currencies is held in trust by The Liberty Reserve Special Purpose Trust for the exclusive benefit of all Liberty Reserve account holders collectively. 1.1. "Liberty Reserve"; means the currency backed by USD; the word "Liberty Reserve"; is a registered trademark. 1.2. "Issuer"; means Liberty Reserve., a Costa Rica Corporation. 1.3. "Primary User"; means the User that creates the Liberty Reserve account. Primary User is the owner of the account from the perspective of Issuer. Primary User may add additional Users to the account. The Issuer shall treat all such additional Users as agents or delegates of Primary User. 1.4. "Permissions"; means account access privileges granted by Primary User to designated additional Users. Unless Primary User specifically limits permissions, such additional Users have the same privileges as Primary User with certain exceptions, including, but not limited to (1) the ability to reassign Primary User status and (2) the ability to close the account. 1.5. "User"; means any user accessing a Liberty Reserve account with permissions granted by Primary User. 1.6. "Available Balance"; means the total balance of a particular Liberty Reserve account minus any accrued fees. 1.7. "Spend"; means the act of transferring value between Liberty Reserve accounts. Spends are accounted in USD (or other foreign currency equivalent) and convey title to that precise amount of value. Spends may not exceed Available Balance. 1.8. "Passphrase"; means a series of characters, known only to User, deemed of suitable complexity as determined from time to time by Issuer. For purposes of this agreement, Passphrase also refers to other authentication mechanisms to which User and Issuer mutually agree. 2. Conditions of UseUser acknowledges that (i) Liberty Reserve is not a bank (ii) Liberty Reserve accounts are not insured by any government agency and (iii) Liberty Reserve is not subject to banking regulations. 2.1. User Obligations. User agrees that all User obligations under this Agreement are the joint and several obligations of all the Users with greater than read-only access to a particular account. 2.2. Identifying Information. User must provide Issuer with valid and accurate identifying information as determined from time to time by Issuer. 2.3. Protection of Passphrase 2.3.1. User is responsible for the protection of User’s Passphrase that gives access to User’s Liberty Reserve account. User agrees that, in the event of the loss or misuse of User’s Passphrase, Issuer disclaims all liability for such loss. User shall indemnify and hold harmless Issuer for relying on transactions authorized using User’s Passphrase prior to such time as User notifies Issuer that User’s Passphrase has been compromised. 2.3.2. User acknowledges and accepts that in the case of a claim of unauthorized Spends, the presumption shall be that all Spends are authorized by and are the liability of the User. 2.3.3. User must not divulge User’s Passphrase to anyone else, nor may User use anyone else’s Passphrase. User agrees that Issuer will treat any person accessing User’s account using User’s Passphrase as the User. 2.3.4. Issuer is not responsible for losses incurred by User as the result of User’s misuse of a Passphrase. 2.3.5. User agrees that any action taken by any person using User’s Passphrase shall be binding on User and all other parties with an interest in that account. 2.4. Irrevocability of Spends 2.4.1. User agrees that all Spends initiated by User are final and not reversible. 2.4.2. User is responsible for all Spends from User’s Liberty Reserve account, except as provided in section 2.3, even if the instructions provided by User are incorrect. 2.4.3 User understands and acknowledges that user is aware that Liberty Reserve spends are irrevocable and that user agrees to follow the policy of buyer beware ("Caveat Emptor") when using Liberty Reserve at various merchant sites, especially merchants such as gaming or gambling or "HYIP" and other types of investment or chance games or matrixes or Ponzis (pyramid schemes), which are identifiable by their promises of extremely high (more than 1% per day) rates of return, and that should user still wish to deal with such merchants that it is at user's own risk. 2.4.4 User understands and acknowledges that Liberty Reserve is registered and is 100% domiciled in Costa Rica and that Liberty Reserve follows the laws of Costa Rica, including, but not limited to, allowing gaming and gambling businesses to use Liberty Reserve as a payment system, which may not be acceptable or legal in user's own jurisdiction. 2.4.5 User understands and acknowledges that Liberty Reserve does not act as judge or jury or as law enforcement or as a court of law with respect to any disputes between users of Liberty Reserve. User understands that any such involvement by Liberty Reserve in the affairs of users of the system could expose Liberty Reserve to civil legal liability, or possibly criminal liability, even if Liberty Reserve believes that its actions are in good faith. 2.4.6 User understands and acknowledges that Liberty Reserve has posted fraud alerts on its home page and that links to the fraud alerts and these Terms of Service appear (and must be acknowledged) before any spend or transfer can be made in user's Liberty Reserve account. These fraud alerts specifically warn users not to use Liberty Reserve to make spends or internal transfers to Ponzi or "HYIP" or other high yield investment-type programs and to make sure that user is made aware of the dangers of sending funds to unknown or poorly known internet sites. User has the right to completely ignore these warnings and instructions if user chooses so to do, but user acknowledges that user does NOT have the right to then blame Liberty Reserve for not physically restraining user from doing foolish things with user's funds or for not policing the internet. 2.5. Disputes Between Users 2.5.1. Any disputes that arise between Users are not the responsibility of Issuer. 2.5.2. User acknowledges Issuer does not make any guarantees regarding purchases made when using the Liberty Reserve service. User acknowledges that Issuer does not ensure the quality, safety, or legality of any merchandise received, nor that the seller will even ship the merchandise. 2.6. Indemnification User agrees to indemnify and hold harmless Issuer, its agents, affiliates, officers, directors and employees from any claim or demand whatsoever relating to or arising out of User’s use of the Liberty Reserve system, except for any loss caused by willful misconduct of Issuer. 3. Obligations of IssuerIssuer shall honor these obligations: 3.1. Reserve Requirement 3.1.1. All funds in circulation shall be backed 100% at all times with unencumbered USD (or other currency that is held in User’s Liberty Reserve account). 3.1.2. Under no circumstances will Issuer abrogate its obligation to back all electronic funds with (at least) 100% reserve of USD. 3.2. User Interface Issuer will ensure that a secure online User interface is made available. 3.3. Exchange Rates Strictly for User’s convenience, Issuer may allow Spend order entry in terms of national currency units using an exchange rate specified by Issuer. Posted exchange rates are only for convenience of User. Issuer does not make a market for exchange and Issuer does not represent that anyone will make a market honoring the specified exchange rates. 3.4. Privacy 3.4.1. Issuer will produce and maintain a Privacy Policy, which will be publicly available at the Liberty Reserve website. In the event of any conflict between the Privacy Policy and this Agreement, the terms of this Agreement will control. 3.4.2. Unless (1) otherwise approved by User or (2) ordered by a court or arbitration body of acceptable jurisdiction, as determined by Issuer, Issuer shall not reveal User’s contact or identifying information or transaction history to any third party. 3.4.3. Issuer will not store Passphrase in plaintext. No employee of Issuer will ever ask for User’s Passphrase. 3.4.4 User agrees that the only way to recover access to a User Account where the Passphrase or Login ID have been lost is by following the password recovery procedure established by Issuer. User is responsible for being able to meet the requirements and costs for the password recovery. Liberty Reserve will not be responsible in any way for any of User’s losses due to User failing to meet the requirements for password recovery. 4. Rights of IssuerIssuer reserves the following rights: 4.1. Governance Model Issuer reserves the right to appoint third parties to fulfill specified governance roles, including, but not limited to: (1) Trust, (2) Auditor, (3) Operator. 4.2. Value Limits Issuer may set value limits (balance, spends, etc.) on a Liberty Reserve account based on the sufficiency of the identifying information provided by User or by order of a court or arbitration body acceptable to issuer. Issuer may restrict User’s ability to use more than one Liberty Reserve account in an attempt to circumvent the value limit. 4.3. Fees Issuer reserves the right to assess and collect the following fees from User’s account: 4.3.1. Monthly Fee — collected by Issuer monthly from user’s account. 4.3.2. Spend Fee — deducted by Issuer in USD from the recipient account of a Spend. 4.3.3. Other Administrative Fees — collected by Issuer for providing support to User when User contacts Issuer and Issuer is not at fault. 4.3.4. Funds Recovery Process and Fees. Upon satisfying all legal requirements necessary to recover funds, Liberty Reserve will, if at all possible, attempt to recover the funds in question. Common legal requirements include, but not limited to: valid court orders, valid law enforcement orders, notarized copies of all requests submitted in writing and notarized copies of all IDs. In most cases all originals have to be submitted via snail mail, as electronic copies sent by e-mail are not acceptable. If by any reason LIBERTY RESERVE is requested to recover any funds by any reason, a one-time 10% Recovery fee will be charged in order to cover any and all expenses of the recovery process. 4.4. Escheat Issuer will not escheat inactive Liberty Reserve accounts. An inactive account with a balance shall remain dormant forever, other than continued assessment of fees, unless and until an heir presents valid documentation entitling the heir to inherit the account. 4.5. Force Majeur Issuer will not be responsible for delays or failures in the transmission, receipt or execution of orders, payments, deliveries or information due to events beyond its control. The obligations of this contract precede any government enactment. 4.6. Right of Association Issuer reserves the right to refuse service to particular individuals or entities, at its sole discretion, with or without cause. 4.6.1. Refusal with Cause Issuer will block any transactions that increment or decrement the balance in User’s Liberty Reserve account ("Freeze"), with cause: 4.6.1.1. Issuer will Freeze the Liberty Reserve account of User if User uses, or attempts to use the Liberty Reserve service in connection with tampering, cracking, modifying or otherwise corrupting the security or functionality of the Liberty Reserve system. Additionally, User will be subject to damages and other penalties, including criminal prosecution where available and the notification of the general public of User’s actions, at the sole discretion of Issuer. 4.6.1.2. Issuer will Freeze or remove a Freeze from a Liberty Reserve account, if ordered to do so by an order from a court or arbitration body of acceptable jurisdiction, as determined by Issuer. 4.6.1.3. Fees will continue to be assessed on a frozen account. 4.7. Trademarks Issuer retains all right, title, and interest in and to trademarks. User shall only use Liberty Reserve trademarks with the express permission of Issuer. User shall not use the trademarks in any manner that is disparaging to Liberty Reserve. Under no circumstances may a User alter, modify, or change Issuer’s trademarks. 4.8 Exchange services (i. e. exchanging national currency to Liberty Reserve and vice versa and other currencies to Liberty Reserve and vice versa) are provided by independent Exchange Providers 4.9. Privacy and Confidentiality Policy 4.9.1 Liberty Reserve recognizes the User’s right to confidentiality and privacy. 4.9.2 Unless ordered by a ruling body of competent jurisdiction acceptable to Issuer, Issuer shall not reveal User’s contact or identifying information or transaction history to any third party. 4.9.3 Issuer will ensure that User has the ability to examine User’s contact and identifying information and make updates and changes when necessary. 4.9.4 Issuer will not store any User details, including but not limited to account history, contact or identifying information, or Personal Identification Number(s) in unencrypted plain text under any circumstances. 4.9.5 User agrees that Liberty Reserve has the right to monitor the Liberty Reserve Network electronically from time to time in order to operate the System properly. 4.9.6 Issuer will email User only if (a) User's email address is either listed with Issuer as someone who has expressly shared this address for the purpose of receiving information in the future ("opt-in"), or (b) User has registered or otherwise have an existing relationship with Issuer. Issuer respects User's time and attention by controlling the frequency of the mailings. 4.9.7 To cease receiving Issuer's emails User must login to his or her account and disable all email notifications, which by default are disabled. 5. Third Party Links5.1 Liberty Reserve provides links to other web sites that may be of interest or of use to Users solely for the convenience of Users. Any such linked site does not constitute part of the Liberty Reserve Network unless expressly stated. Liberty Reserve is not responsible for the privacy practices, or the content of any such web sites. 5.2 User acknowledges and agrees that Liberty Reserve (and its directors, affiliates, officers, employees and agents) give no warranties or representations in connection with any links to other web sites or the operations of those web sites and in no way guarantees the use of such web sites or the services offered, included but not limited to the services of any Exchange Provider. 6. WaiverFailure to exercise or delay in exercising any right, power or remedy hereunder by Issuer shall not operate as waiver thereof, nor shall any single or partial exercise of any right, power or remedy of Issuer hereunder preclude any other or future exercise thereof or the exercise of any other right, power or remedy. 7. AssignmentThe provisions of this Agreement shall be continuous and shall inure to the benefit of Issuer, its successors and assigns, and shall be binding upon User and/or the estate, personal representatives, administrators and successors of User. Issuer may assign its rights and delegate its duties as to any or all transactions under this Agreement. User shall not delegate any obligations hereunder without the prior written consent of a duly authorized officer of Issuer and any attempt at such delegation without such consent shall be void. 8. JurisdictionThis Account Agreement is governed by the laws of Costa Rica as such laws are applied to agreements entered into and to be performed entirely within Costa Rica by Costa Rica residents. 9. SeverabilityIn the event that any provisions of this Agreement shall be determined by an arbitration body or a court of competent jurisdiction to be unenforceable in any jurisdictions, such provision shall be unenforceable in that jurisdiction and the remainder of this Agreement shall remain binding upon the parties as if such provisions were not contained therein. The enforceability of such provision shall otherwise be unaffected and remain enforceable in all other jurisdictions. 10. Entire AgreementThis Agreement constitutes the entire and whole Agreement between User and Issuer and is intended as a complete and exclusive statement of the terms of the Agreement. This Agreement shall supersede all other communications between the parties. This Agreement may be amended only upon execution of a subsequent agreement or upon User’s failure to object within 10 days to modifications posted on Issuer’s website. Last updated 21/10/2009 |