Terms of Use
Last Updated: 31 Jan 2026
IMPORTANT NOTICE: PLEASE READ THESE TERMS CAREFULLY. BY ACCESSING OR USING THE PROTOCOL, YOU AGREE TO BE BOUND BY THESE TERMS. THESE TERMS INCLUDE A BINDING ARBITRATION PROVISION AND CLASS ACTION WAIVER THAT AFFECT YOUR LEGAL RIGHTS.
1. INTRODUCTION AND DEFINITIONS
1.1 Agreement Overview
Welcome to 42 (the "Protocol"), a decentralized events contract asset issuance platform. These Terms of Service ("Terms" or "Agreement") constitute a legally binding agreement between you and Deep Thought Labs Inc. ("Company," "we," "us," or "our"). By accessing, browsing, or using the Protocol, you acknowledge that you have read, understood, and agree to be bound by these Terms.
1.2 Key Definitions
"Contract" or "Event Contract" means any outcome contract or similar instrument, where the value is determined by the occurrence or non-occurrence of a specified event.
“Events Contract Asset Issuance” means the generation of Digital Assets that represent Events Contracts offered for trading on the Protocol.
"Market" means a prediction market created on the Protocol for trading Contracts related to a specific question or event.
"Resolution" means the process by which the outcome of a Market is determined and Contracts are settled according to the Resolution Mechanism.
"Resolution Mechanism" means the system, oracle, or procedure designated for determining Market outcomes, which may include decentralized oracle systems / centralized determination, or hybrid mechanisms. The Company reserves the right to amend the Resolution Mechanism from time to time.
"User," "you," or "your" means any individual or entity that accesses or uses the Protocol in any capacity.
"Digital Assets" means cryptocurrencies, stablecoins, tokens, or other blockchain-based assets used to fund accounts, purchase Events Contract Assets, or receive settlements on the Protocol.
2. ELIGIBILITY AND RESTRICTED JURISDICTIONS
2.1 General Eligibility Requirements
To access or use the Protocol, you represent and warrant that:
You are at least 18 years of age or the age of legal majority in your jurisdiction, whichever is greater;
You have the legal capacity and authority to enter into this Agreement and to be bound by its terms;
If acting on behalf of an entity, you have the authority to bind such entity to these Terms;
You are not located in, organized in, a resident of, or a citizen of any Restricted Jurisdiction (as defined below);
You are not subject to economic or trade sanctions administered or enforced by any governmental authority;
You are not on any 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.
2.2 Restricted Jurisdictions
Access to and use of the Protocol is strictly prohibited for Users located in, organized in, residents of, or citizens of the following jurisdictions ("Restricted Jurisdictions"):
Australia, Belgium, Belarus, Burundi, Central African Republic, Canada (Ontario), Congo (Kinshasa), Cuba, Germany, Ethiopia, France, United Kingdom, Iran, Iraq, Italy, North Korea, Lebanon, Libya, Myanmar, Nicaragua, Poland, Portugal, Russia, Singapore, Somalia, South Sudan, Sudan, Syria, Thailand, Taiwan, United States Minor Outlying Islands, United States, Venezuela, Yemen, Zimbabwe, contested regions of Ukraine (Crimea, Donetsk, Luhansk).
This list may be updated at any time without prior notice. You are solely responsible for ensuring compliance with all applicable laws and regulations in your jurisdiction.
2.3 Prohibition on VPN and Circumvention
YOU ARE EXPRESSLY PROHIBITED from using any virtual private network ("VPN"), proxy server, IP masking tool, or any other technology or method to circumvent geographic restrictions, misrepresent your location, or evade eligibility requirements. Violation of this provision may result in immediate termination of access, forfeiture of funds, and potential legal action.
3. COMPREHENSIVE RISK DISCLOSURE
WARNING: Trading events-based contracts involves substantial risk of loss and is not suitable for all individuals. You should carefully consider whether trading is appropriate for you in light of your financial condition, risk tolerance, and investment objectives. You could lose some or all of your funds.
3.1 Market and Trading Risks
You acknowledge and assume the following risks:
Speculative Nature: Trading Event Contracts is highly speculative. Market prices reflect collective opinions about future events and may not accurately predict actual outcomes.
Total Loss of Capital: You may lose 100% of the funds used to purchase Contracts if the outcome resolves against your position.
Price Volatility: Events Contract Asset prices can change rapidly and dramatically due to new information, market sentiment, manipulation attempts, or other factors.
Liquidity Risk: Markets may have insufficient liquidity, making it difficult or impossible to exit positions at desired prices or at all.
Information Asymmetry: Other market participants may possess superior information, analytical capabilities, or automated trading systems that place you at a disadvantage.
3.2 Technology and Infrastructure Risks
System Failures: The Protocol relies on complex technology including blockchain networks, smart contracts, and internet connectivity, all of which may experience failures, errors, or interruptions.
Smart Contract Risk: Smart contracts may contain bugs, vulnerabilities, or unintended behaviors that could result in loss of funds.
Blockchain Network Risks: Underlying blockchain networks may experience congestion, forks, reorganizations, or other events that affect transaction processing and finality.
Security Breaches: Despite security measures, the Protocol or related systems may be subject to hacking, exploits, or other unauthorized access.
Wallet Security: You are solely responsible for securing your private keys and wallet credentials. Loss or theft of these credentials may result in permanent loss of funds.
3.3 Resolution and Oracle Risks
Resolution Disputes: Market resolution may be contested, delayed, or resolved in ways you did not anticipate based on the interpretation of resolution criteria.
Oracle Failures: Resolution Mechanisms, whether decentralized oracles or centralized systems, may provide incorrect data, experience manipulation, or fail to operate as expected.
Ambiguous Outcomes: Real-world events may have ambiguous outcomes that do not clearly map to Contract resolution criteria, potentially resulting in disputed or unexpected resolutions.
Finality of Resolution: Resolution decisions, once finalized, are generally irreversible regardless of subsequent information or disputes. You agree to be bound by the decision of any dispute resolution process.
3.4 Regulatory and Legal Risks
Regulatory Uncertainty: The regulatory status of prediction markets, Digital Assets, and decentralized protocols and events contract asset issuance protocols varies by jurisdiction and may change at any time.
Legal Classification: Event Contracts may be classified as gambling, securities, derivatives, or other regulated instruments in certain jurisdictions, potentially subjecting you to legal liability.
Tax Obligations: Trading activity may generate tax obligations. You are solely responsible for determining and fulfilling your tax reporting and payment obligations.
4. MARKET RULES AND RESOLUTION MECHANISM
4.1 Market Creation and Parameters
Each Market on the Protocol operates according to specific rules including, but not limited to:
Resolution criteria specifying the exact conditions for each possible outcome;
Designated resolution sources and verification methods;
Trading period start and end dates;
Resolution timeline and procedures;
Any special rules or conditions applicable to the specific Market.
YOU ARE RESPONSIBLE for reading, understanding, and accepting all Market-specific rules before trading. Failure to understand Market rules is not grounds for disputing a resolution.
4.2 Resolution Mechanism
The Protocol utilizes a resolution mechanism described here Post-Resolution
Resolution decisions made through the designated Resolution Mechanism are final and binding. The Company does not guarantee any particular outcome and bears no liability for resolution decisions, even if such decisions are later shown to be incorrect or contested.
4.3 Market Cancellation and Voiding
The Company reserves the right to cancel or void Markets under the following circumstances:
The underlying event is cancelled, postponed indefinitely, or cannot be verified;
Evidence of material market manipulation or fraudulent activity;
Ambiguity in resolution criteria that cannot be reasonably resolved;
Technical errors in Market creation or smart contract functionality;
Regulatory requirement or legal necessity.
In the event of cancellation, Contracts will be settled such that the pool of assets is distributed back to each user in accordance with their pro-rata contribution to the event contract asset pool in question.
4.4 Dispute Resolution for Market Outcomes
Users may challenge a proposed resolution by following the procedure found here: [LINK]. The user agrees to be bound by the outcome of the dispute resolution process.
5. USER ACCOUNTS AND FUNDS
5.1 Account Security
You are solely responsible for:
Maintaining the confidentiality and security of your account credentials, private keys, and wallet access;
All activity that occurs under your account or using your credentials;
Implementing appropriate security measures including strong passwords, two-factor authentication, and secure storage of private keys;
Promptly notifying us of any unauthorized access or security breach.
5.2 Deposits and Withdrawals
Users may deposit and withdraw digital assets such as USDC or any supported asset as determined by the Company from time to time. The Company may impose minimum deposit/withdrawal amounts, processing fees, or temporary holds as specified on the Platform.
5.3 Custody and Holding of Funds
User funds are maintained in non-custodial smart contracts. The User accepts the potential risk of loss due to smart contract hacks, exploits or unintended use. The Company accepts no liability for technical issues outside its reasonable control.
5.4 No Refunds
ALL TRANSACTIONS ON THE PROTOCOL ARE FINAL. Except as otherwise required by applicable law or expressly provided in these Terms, deposits are non-refundable and trading losses cannot be reversed. The Company is not responsible for user errors, including but not limited to incorrect transaction amounts, wrong addresses, or misunderstanding of Market rules.
6. PROHIBITED CONDUCT
You agree not to engage in any of the following prohibited activities:
6.1 Market Manipulation
Wash trading, layering, spoofing, or any form of manipulative trading;
Coordinated trading intended to artificially influence prices;
Taking actions intended to influence real-world event outcomes for profit on related Markets.
6.2 Technical Violations
Attempting to exploit bugs, vulnerabilities, or errors in the Protocol or smart contracts;
Deploying automated systems that interfere with Protocol operations or other users;
Attempting to reverse engineer, decompile, or access source code;
Circumventing security measures or access controls.
6.3 Legal Violations
Using the Protocol in violation of any applicable law or regulation;
Money laundering, terrorist financing, or other illicit financial activities;
Evading sanctions or trading on behalf of prohibited persons;
Providing false or misleading information during registration or verification.
7. DISCLAIMERS AND LIMITATIONS OF LIABILITY
7.1 No Fiduciary Duty
These Terms are not intended to, and do not, create or impose any fiduciary duties on the Company. To the fullest extent permitted by law, you acknowledge and agree that the Company owes no fiduciary duties or liabilities to you or any other party, and 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.
7.2 No Investment Advice
The Company does not provide investment, legal, tax, or financial advice. Nothing on the Protocol constitutes a recommendation to buy, sell, or hold any Contract or Digital Asset. You are solely responsible for evaluating the merits and risks of each transaction and should consult qualified professionals before making financial decisions.
7.3 "As Is" Disclaimer
THE PROTOCOL IS PROVIDED "AS IS" AND "AS AVAILABLE" WITHOUT WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED. TO THE FULLEST EXTENT PERMITTED BY LAW, THE COMPANY DISCLAIMS ALL WARRANTIES, INCLUDING BUT NOT LIMITED TO IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, AND NON-INFRINGEMENT.
7.4 Limitation of Liability
TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, IN NO EVENT SHALL THE COMPANY, ITS AFFILIATES, DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, OR LICENSORS BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, PUNITIVE, OR EXEMPLARY DAMAGES, INCLUDING BUT NOT LIMITED TO DAMAGES FOR LOST PROFITS, LOST DATA, LOSS OF GOODWILL, TRADING LOSSES, OR OTHER INTANGIBLE LOSSES, REGARDLESS OF THE CAUSE OF ACTION OR THE THEORY OF LIABILITY, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
THE COMPANY'S TOTAL AGGREGATE LIABILITY SHALL NOT EXCEED THE GREATER OF: (A) THE AMOUNT OF FEES PAID BY YOU TO THE COMPANY IN THE TWELVE (12) MONTHS PRECEDING THE CLAIM; OR (B) ONE HUNDRED U.S. DOLLARS ($100.00).
8. INDEMNIFICATION
You agree to indemnify, defend, and hold harmless the Company and its affiliates, officers, directors, employees, agents, successors, and assigns from and against any and all claims, damages, losses, liabilities, costs, and expenses (including reasonable attorneys' fees) arising out of or relating to:
Your access to or use of the Protocol;
Your violation of these Terms or any applicable law or regulation;
Your infringement of any third-party rights;
Any dispute between you and any third party.
9. DISPUTE RESOLUTION AND ARBITRATION
PLEASE READ THIS SECTION CAREFULLY. IT AFFECTS YOUR LEGAL RIGHTS, INCLUDING YOUR RIGHT TO FILE A LAWSUIT IN COURT AND TO HAVE A JURY TRIAL.
9.1 Informal Resolution
Before initiating formal dispute resolution, you agree to first contact the Company at [email protected] and attempt to resolve any dispute informally for at least thirty (30) days. Your notice must include your name, contact information, a description of the dispute, and the relief sought.
9.2 Binding Arbitration
If informal resolution is unsuccessful, any dispute, controversy, or claim arising out of or relating to these Terms or the Protocol shall be finally settled by binding arbitration administered by LCIA in accordance with its applicable rules. The arbitration shall be conducted in Singapore, in the English language, in accordance with English law before a single arbitrator with experience in blockchain technology and financial services. The arbitrator's decision shall be final and binding, and judgment on the award may be entered in any court of competent jurisdiction.
9.3 Class Action Waiver
YOU AND THE COMPANY AGREE THAT ANY DISPUTE RESOLUTION PROCEEDINGS WILL BE CONDUCTED ONLY ON AN INDIVIDUAL BASIS AND NOT IN A CLASS, CONSOLIDATED, OR REPRESENTATIVE ACTION. If this class action waiver is found to be unenforceable, then the entirety of this arbitration provision shall be null and void.
9.4 Exceptions
Notwithstanding the foregoing, either party may seek injunctive or other equitable relief in any court of competent jurisdiction to protect intellectual property rights or prevent irreparable harm.
9.5 Time Limitation
Any arbitration or legal proceeding must be commenced within one (1) year after the cause of action arises; otherwise, such cause of action is permanently barred.
10. GOVERNING LAW
These Terms shall be governed by and construed in accordance with the laws of England and Wales, without regard to its conflict of law principles. The United Nations Convention on Contracts for the International Sale of Goods shall not apply.
11. INTELLECTUAL PROPERTY
All intellectual property rights in the Protocol, including but not limited to trademarks, copyrights, trade secrets, and patents, are owned by the Company or its licensors. You are granted a limited, non-exclusive, non-transferable, revocable license to access and use the Protocol solely for its intended purposes in accordance with these Terms.
You retain ownership of any content you submit to the Protocol. However, by submitting content, you grant the Company a worldwide, royalty-free, perpetual, irrevocable license to use, copy, modify, and distribute such content for any purpose related to operating and improving the Protocol.
12. DATA USAGE AND PRIVACY
You grant the Company a worldwide, perpetual, royalty-free, sublicensable license to use, store, copy, and create derivative works from transaction data and trading activity for business purposes including but not limited to: operating and improving the Protocol, regulatory compliance, market surveillance, and anonymized analytics.
Your use of the Protocol is also governed by our Privacy Policy, available at [LINK], which is incorporated into these Terms by reference.
13. AMENDMENTS AND MODIFICATIONS
The Company reserves the right to modify these Terms at any time by posting the revised Terms on the Protocol with an updated "Last Updated" date. Material changes will be communicated through [describe notification method]. Your continued use of the Protocol after the effective date of any modification constitutes your acceptance of the modified Terms. If you do not agree to any modification, your sole remedy is to discontinue use of the Protocol.
14. TERMINATION
The Company may suspend or terminate your access to the Protocol at any time, with or without cause, and with or without notice. Upon termination, you remain liable for all obligations incurred prior to termination, including any outstanding settlements or fees. Sections 3 (Risk Disclosure), 7 (Disclaimers), 8 (Indemnification), 9 (Dispute Resolution), 10 (Governing Law), and any other provisions that by their nature should survive, shall survive termination.
15. MISCELLANEOUS
15.1 Entire Agreement
These Terms, together with the Privacy Policy and any Market-specific rules, constitute the entire agreement between you and the Company regarding the Protocol and supersede all prior agreements and understandings.
15.2 Severability
If any provision of these Terms is found to be invalid, illegal, or unenforceable, the remaining provisions shall continue in full force and effect. The parties agree to negotiate in good faith to replace any invalid provision with a valid provision that most closely approximates the intent of the original.
15.3 Waiver
No waiver of any provision of these Terms shall be deemed a further or continuing waiver of such provision or any other provision. The Company's failure to enforce any right or provision shall not constitute a waiver of such right or provision.
15.4 Assignment
You may not assign or transfer these Terms or any rights hereunder without the Company's prior written consent. The Company may freely assign these Terms without restriction.
15.5 Force Majeure
The Company shall not be liable for any delay or failure to perform resulting from causes outside its reasonable control, including but not limited to acts of God, war, terrorism, civil unrest, government actions, network failures, blockchain network disruptions, or natural disasters.
ACKNOWLEDGMENT
BY CLICKING "I AGREE," CONNECTING YOUR WALLET, OR OTHERWISE ACCESSING OR USING THE PROTOCOL, YOU ACKNOWLEDGE THAT YOU HAVE READ, UNDERSTOOD, AND AGREE TO BE BOUND BY THESE TERMS OF SERVICE IN THEIR ENTIRETY, INCLUDING THE BINDING ARBITRATION PROVISION AND CLASS ACTION WAIVER.
Last updated