Additional Virtual Currency Terms of Service

Last Updated: July 27, 2018

These Additional Virtual Currency Terms of Service (the “Virtual Currency Terms”) govern your use as an individual of the Virtual Currency (as defined below) services offered by Square, Inc. (“Square,” “we,” “our,” or “us”). By accessing or using any services provided by Square, including the Virtual Currency services (collectively, the “Services”), you agree to be bound by these Additional Virtual Currency Terms of Service, the General Terms of Service, the Additional Cash Terms of Service, the E-Sign Consent, and all other terms, policies, and guidelines applicable to the Services.

If you have any question regarding the use of the Services, please contact our Support Center.

Value of virtual currency can change quickly and dramatically, and can result in sudden and substantial losses including loss of entire value of virtual currency. You should therefore carefully consider whether transacting or holding Virtual Currency is suitable for you in light of your financial condition.

I. Definitions

Capitalized terms not otherwise defined in these Virtual Currency Terms will have the following meanings: “Cash App” means the Square payment service accessed via the application. “Cash App Account” means a user account accessible via the Cash App where a user can access their Virtual Currency and other Cash App Services. “External Virtual Currency Address” means any Virtual Currency address or account that is maintained outside of the Services, and is not owned, controlled, or operated by Square. “Hosted Balance” means the Virtual Currency you have purchased which you own and Square holds for your benefit as a specific deposit. As a specific depositor, you continue to own the Virtual Currency in your Hosted Balance. Square only keeps possession of your Hosted Balance for your benefit as a specific depositor. “Virtual Currency” means bitcoin and other virtual currency that may be purchased, sold, saved and transferred using the Cash App.

II. Eligibility and Identity Verification

  1. Eligibility. You must (a) be an individual person, not an entity, using the Services for personal use, (b) be a resident of the United States, (c) be at least 18 years, and the age of majority in your State of residence, or older to use the Services, and (d) use the Services in the United States. As a result FATCA does not apply

  2. Identity Verification. In order to use certain features of the Services, including certain transfers of Virtual Currency and/or government-issued currency (“Fiat Currency”), you may be required to provide Square with certain personal information, including, but not limited to, your name, address, telephone number, e-mail address, date of birth, taxpayer identification number, government identification number, and information regarding your bank account (e.g., financial institution, account type, routing number, and account number), source of funds and employment. In submitting this or any other personal information as may be required, you verify that the information is accurate and authentic, and you agree to update Square if any information changes.

  3. Availability. Square may not make all of the Services available in all markets and jurisdictions, and may restrict or prohibit use of all or a portion of the Services from certain states, territories, or jurisdictions (“Restricted Locations”). At this time, Restricted Locations include, but are not limited to, New York and Georgia. You must not attempt to use our Services if you are located in any of those Restricted Locations. You must not attempt to circumvent any restrictions imposed via the Services, such as by obscuring your IP address or submitting any inaccurate information regarding your location.

III. Purchasing and Transferring Virtual Currency

  1. Funding. In order to complete a purchase transaction via the Services, you must first hold Fiat Currency in your Cash App.

  2. Authorization. When you submit a new purchase request via the Services, you authorize us to execute a transaction in accordance with such request in the amount shown once you’ve initiated a buy or sell request.

  3. “Buy” Transaction. In the event of a “Buy” transaction you will choose the amount of Virtual Currency you wish to buy from Square using Fiat Currency from your Cash App and tap “Buy”. You must have sufficient Fiat Currency in your Cash App before submitting any “Buy” transaction. A “Buy” transaction is a sale from Square to you. Once complete, your Hosted Balance will reflect the amount of Virtual Currency that you own. All right to and title in the Virtual Currency bought will pass from Square to you. A Buy transaction will not necessarily result in Square broadcasting any transaction to the Virtual Currency network.

  4. Square does not guarantee the availability of “Buy” transactions, and the act of purchasing Virtual Currency from Square does not result in a guarantee that you may purchase supported Virtual Currency from Square at a later time.

  5. Transfer to an External Virtual Currency Wallet: You may transfer any amount of Virtual Currency, up to the total amount of Virtual Currency from your Hosted Balance to an External Virtual Currency Address, minus the fee detailed below. You are solely responsible for the accuracy of the External Virtual Currency Address that you provide, and Square shall not be liable for sending Virtual Currency from your Hosted Balance to an unintended External Virtual Currency Address if that address matches the address you provided to us.

  6. Fees Incurred for Transfer. The Virtual Currency network will charge a fee for a transfer of Virtual Currency to an External Virtual Currency Wallet. As such, we will transfer your Virtual Currency less the fees due the Virtual Currency network for the transaction.

  7. Buy Transaction Settlement. We will use commercially reasonable efforts to complete transactions within two days of the date upon which you have initiated a “Buy” transaction via the Services.

  8. Transfer Settlement Risk of Loss. You bear the risk of loss of value once you have initiated a transfer transaction to or from your Hosted Balance in the event that the receipt of virtual currency is delayed and the value of virtual currency decreases during the period of delay.

  9. Square reserves the right to delay any buy transaction if it perceives a risk of fraud or illegal activity.

IV. Selling Virtual Currency through the Cash App

  1. You understand and agree that Square does not guarantee your ability to sell Virtual Currency you own and is held in your Hosted Balance through the Services. To initiate a “Sell” transaction, you will choose the amount of Virtual Currency you wish to sell to Square from your Hosted Balance and tap “Sell”. In the event the “Sell” feature is available, Square will then purchase such amount of Virtual Currency from you and deposit the value of Virtual Currency in your Cash App as Fiat Currency.

  2. Square reserves the right to delay any sell transaction if it perceives a risk of fraud or illegal activity.

  3. Square does not guarantee the availability of “Sell” transactions, and the act of selling Virtual Currency to Square does not result in a guarantee that you may sell Virtual Currency to Square at a later time.

V. Conversion Rate

You may buy or sell Virtual Currency through the Services. Any such buy or sell transaction is subject to the Square “Conversion Rate” for the given transaction. “Conversion Rate” means the price of Virtual Currency in terms of Fiat Currency as displayed in the Cash App once you have selected “Buy” or “Sell” and such Conversion Rate is the price in terms of Fiat Currency at which you may buy Virtual Currency from or sell Virtual Currency to Square. You acknowledge that Square may add a margin or “spread” between the quoted mid market price displayed on the Virtual Currency dashboard and the quoted buy or sell price and, as such, that the quoted buy price Conversion Rate may not be the same as the sell price Conversion Rate at any given time. You agree, as a condition of buying or selling Virtual Currency through the Cash App, to accept the Conversion Rate as the sole conversion metric. You have no obligation to accept the offered buy or sell price for Virtual Currency in the Cash App.

VI. Risk Disclosure

  1. GENERAL. VIRTUAL CURRENCY VALUES CAN FLUCTUATE SUBSTANTIALLY WHICH MAY RESULT IN A TOTAL LOSS OF THE VALUE OF THE VIRTUAL CURRENCY IN YOUR HOSTED BALANCE. THE SUPPLY OF VIRTUAL CURRENCY AVAILABLE TO SQUARE TO SELL TO YOU AND THE ABILITY OF SQUARE TO PURCHASE YOUR VIRTUAL CURRENCY DEPENDS ON THIRD PARTY PROVIDERS THAT ARE OUTSIDE OF SQUARE’S CONTROL, THEREFORE, SQUARE MAKES NO PROMISES AS TO TIMING OF VIRTUAL CURRENCY PURCHASES AND SALES. SQUARE DOES NOT OWN OR CONTROL ANY OF THE SOFTWARE PROTOCOLS THAT ARE USED IN CONNECTION WITH THE VIRTUAL CURRENCIES PURCHASED OR SOLD THROUGH THE SERVICES. ACCORDINGLY, SQUARE DISCLAIMS ALL LIABILITY RELATING TO SUCH PROTOCOLS AND ANY PRICE FLUCTUATIONS IN VIRTUAL CURRENCY, AND MAKES NO GUARANTEES REGARDING THE SECURITY, FUNCTIONALITY OR AVAILABILITY OF SUCH PROTOCOLS.

  2. FORKS. BY USING THE SERVICES, YOU ACKNOWLEDGE AND AGREE THAT THE UNDERLYING PROTOCOLS ARE SUBJECT TO SUDDEN CHANGES IN OPERATING RULES (KNOWN AS “FORKS”), AND THAT SUCH FORKS MAY MATERIALLY AFFECT THE VALUE, FUNCTION, AND/OR EVEN THE NAME OF THE VIRTUAL CURRENCY. IN THE EVENT OF A FORK, YOU AGREE THAT WE MAY TEMPORARILY SUSPEND OPERATIONS (WITH OR WITHOUT ADVANCE NOTICE TO YOU) AND THAT WE MAY, IN OUR SOLE DISCRETION, DECIDE WHETHER OR NOT TO SUPPORT (OR CEASE SUPPORTING) EITHER BRANCH OF THE FORKED PROTOCOL ENTIRELY. YOU ACKNOWLEDGE AND AGREE THAT SQUARE ASSUMES ABSOLUTELY NO RESPONSIBILITY WHATSOEVER IN RESPECT OF AN UNSUPPORTED BRANCH OF A FORKED PROTOCOL.

  3. SYSTEM FAILURE. YOU ACCEPT ALL RISKS ASSOCIATED WITH THE USE OF THE SERVICES TO CONDUCT VIRTUAL CURRENCY TRANSACTIONS, INCLUDING, BUT NOT LIMITED TO, IN CONNECTION WITH THE FAILURE OF HARDWARE, SOFTWARE, AND INTERNET CONNECTIONS. THE NATURE OF VIRUTAL CURRENCY MEANS THAT ANY TECHNOLOGICAL DIFFICULTIES EXPERIENCED BY SQUARE MAY PREVENT THE ACCESS OR USE OF YOUR VIRTUAL CURRENCY.

  4. Disruption Events. You agree that we are not liable for any price fluctuations in Virtual Currency. In the event of a market disruption or Force Majeure Event (as defined in Section XI(2)), we may do one or more of the following: (a) suspend access to the Services; or (b) prevent you from completing any actions via the Services. We will not be liable for any losses suffered by you resulting from such actions. Following any such event, when Services resume, you acknowledge that prevailing market rates may differ significantly from the rates available prior to such event.

  5. Limitation of Liability. Our responsibility is limited to the exercise of ordinary diligence in giving access to your Virtual Currency and in preventing access to your Virtual Currency by unauthorized persons. We are not responsible for any unauthorized access or loss or harm an unauthorized access cause, unless caused only by our gross negligence or our willful misconduct. You will have no claim against us for loss of your Virtual Currency unless you prove that the loss was not caused or contributed to by you. In no circumstances will we be liable or responsible for any indirect, consequential, special aggravated, punitive or exemplary damages, regardless of the basis for the claim.

  6. Risks Inherent to Virtual Currency. (a) Virtual Currency transactions are irreversible, and, accordingly losses due to fraudulent or accidental transactions may not be recoverable and Square shall not be held liable for any fraudulent or accidential transactions, (b) Virtual Currency is not legal tender and is not backed by a government or central bank and Square is not a bank. As such, there is no protection, such as deposit insurance, to cover any losses associated with Virtual Currency, (c)legislative and regulatory changes or actions at the state, federal or international level may adversely affect the use, transfer, exchange, and value of Virtual Currency the Bitcoin public ledger blockchain is maintained by a vast unidentified private computer network spread around the world and choosing to participate in Virtual Currency is at your own risk and understanding of this network, (d) Virtual Currency is a target for fraud and the potential for fraud is especially likely when you engage in transactions with External Virtual Currency Addresses, (e) Virtual Currency is a target for hackers and hacking can occur even when you use the strongest security settings and as such your Virtual Currency may be irretrievably stolen, (f) your bank accounts are at increased risk of being hacked when linked to Virtual Currency accounts, (g) some Virtual Currency transactions shall be deemed to be made when recorded on a public ledger, which is not necessarily the date or time that you have initiated the transaction (h) the value of Virtual Currency may be derived from the continued willingness of market participants to exchange Fiat Currency for Virtual Currency, which may result in the potential for permanent and total loss of value of a particular Virtual Currency should the market for that Virtual Currency disappear, (i) there is no assurance that a person who accepts Virtual Currency as payment today will continue to do so in the future, (j) the volatility and unpredictability of the price of Virtual Currency relative to Fiat Currency may result in significant loss over a short period of time, and (k) any bond or trust account held by Square may not be sufficient to cover all losses incurred by our customers.

VII. Transaction History

Transaction information will be reflected in your Transaction History in the Cash App. You agree that the failure of the Services to provide such confirmation shall not prejudice or invalidate the terms of such transaction.

VIII. Use of the Services

  1. Conditions and Restrictions. We may, at any time and in our sole discretion, refuse any transaction, including any purchase or sale request submitted via the Services, impose limits on the amount of Virtual Currency you can purchase or sell via the Services or impose any other conditions or restrictions upon your use of the Services, without prior notice. We may also make the purchase or sale of Virtual Currency in the Cash App unavailable at any time, in our sole discretion. If the Services are unavailable, any purchase or sale requests you may have submitted for such Virtual Currency will be cancelled.

  2. Cancellations. You may not cancel any purchase, sale or transfer requests via the Services. Once you have submitted a request, you may not change, withdraw, or cancel your authorization for us to complete such transaction.

  3. Insufficient Funds. If you have insufficient funds in your Cash App to purchase a requested amount of Virtual Currency via the Services, you will not be able to complete the transaction.

  4. Taxes. It is your responsibility to determine what, if any taxes may apply to the transactions you complete under the Services and it is your responsibility to report and remit the appropriate tax to the relevant taxing authorities. You agree that we are not responsible for determining whether taxes apply to the exchanges made under the Services. To the extent obligated by the relevant taxing authorities that we are required to deduct or withhold any amounts from payment, we will make the required payment net of such taxes. Any amounts so withheld will be treated as having been paid for all purposes of this agreement. You certify the information provided to Square is accurate and consent to Square using such information as is necessary to fulfill Square’s federal, state and local tax payment or withholding purposes and tax filing obligations.

  5. Currency Availability. Square retains the right, in its sole discretion, to determine the types of Virtual Currency that may be available through the Services, and may add or remove the availability of any Virtual Currency from the Services at any time for any reason. Square will make reasonable efforts to notify you of the likely removal of a Virtual Currency. If the market for a Virtual Currency is closed on the Cash App, you will have 30 days to transfer the amounts remaining in your Cash App Account associated with such Virtual Currency to an External Virtual Currency Address. Any Virtual Currency that is no longer supported within the Cash App, and is not withdrawn within 30 days, will not be discarded; however, you must reach out to Support to arrange withdrawal. Square will not be liable to you for any losses, liability or expenses related to the removal of a Virtual Currency.

IX. Binding Individual Arbitration

You and Square agree to arbitrate any and all Disputes by a neutral arbitrator who has the power to award the same damages and relief that a court can. ANY ARBITRATION UNDER THESE GENERAL TERMS WILL ONLY BE ON AN INDIVIDUAL BASIS; CLASS ARBITRATIONS, CLASS ACTIONS, PRIVATE ATTORNEY GENERAL ACTIONS, REPRESENTATIVE ACTIONS AND CONSOLIDATION WITH OTHER ARBITRATIONS ARE NOT PERMITTED. YOU WAIVE ANY RIGHT TO HAVE YOUR CASE DECIDED BY A JURY AND YOU WAIVE ANY RIGHT TO PARTICIPATE IN A CLASS ACTION AGAINST SQUARE. If any provision of this arbitration agreement is found unenforceable, the unenforceable provision will be severed, and the remaining arbitration terms will be enforced (but in no case will there be a class or representative arbitration). All Disputes will be resolved finally and exclusively by binding individual arbitration with a single arbitrator administered by the American Arbitration Association (https://www.adr.org) according to this Section and the applicable arbitration rules for that forum. Consumer claimants (individuals whose transaction is intended for personal, family, or household use) may elect to pursue their claims in their local small-claims court rather than through arbitration so long as their matter remains in small claims court and proceeds only on an individual (non-class or non-representative) basis. The Federal Arbitration Act, 9 U.S.C. §§ 1-16, fully applies. If you are a consumer bringing a claim relating to personal, household, or family use, any arbitration hearing will occur within the county where you reside. Otherwise, any arbitration hearing will occur in San Francisco, California, or another mutually agreeable location. The arbitrator’s award will be binding on the parties and may be entered as a judgment in any court of competent jurisdiction. We will pay the arbitration fees due to the American Arbitration Association for individual arbitrations brought in accordance with this section. If you prevail on any claim for which you are legally entitled to attorney’s fees, you may seek to recover those fees from the arbitrator. For any claim where you are seeking relief, we will not seek to have you pay our attorney’s fees, even if fees might otherwise be awarded, unless the arbitrator determines that your claim was frivolous. For purposes of this arbitration provision, references to you and Square also include respective subsidiaries, affiliates, agents, employees, predecessors, successors and assigns as well as authorized users or beneficiaries of the Services. Subject to and without waiver of the arbitration provisions above, you agree that any judicial proceedings (other than small claims actions in consumer cases) will be brought in and you hereby consent to the exclusive jurisdiction and venue in the state courts in the City and County of San Francisco, California, or federal court for the Northern District of California.

X. Suspension; Termination; Discontinuance of Services

  1. Suspension, Termination, Discontinuance of the Service. Square may, in our discretion, with or without prior notice to you, and at any time, limit, suspend, modify, discontinue, either temporarily or permanently, any portion of our Virtual Currency Services, if we think it is necessary to do so to protect us, our users, including you, or our employees from danger or loss, if required by laws that apply or by court order to limit or refuse the Services. If we exercise our rights to limit or refuse your access to the Services, we will not be responsible for any consequences of our refusal to give you access to the Services, including any delay, damage or inconvenience you may suffer as a result.

  2. Suspension, Termination, Discontinuance of your Access. We may suspend your access to all or a portion of our Services. We may terminate your access to the Services in our sole discretion, immediately and without prior notice, and delete or deactivate your Cash App Account and all related information and files in such account without liability to you, including, for instance, in the event that you breach any term of these Terms. In the event of termination, we will attempt to return any Virtual Currency stored in your Hosted Balance.

  3. Notice. If we suspend or close your account, or terminate your use of the Services for any reason, we will provide you with notice of our actions unless a court order or other legal process prohibits us from providing you with such notice. You acknowledge that Square’s decision to take certain actions, including limiting access to, suspending, or closing your account, may be based on confidential criteria that are essential to Square’s risk management and security protocols. You agree that Square is under no obligation to disclose the details of its risk management and security procedures to you.

  4. Access to Virtual Currency upon Termination. You will be permitted to transfer your Virtual Currency or USD funds held in your Cash App for ninety (90) days after your access to the Services have been deactivated or cancelled, unless such transfer is otherwise prohibited (i) under the law, including but not limited to applicable sanctions programs, or (ii) by a facially valid subpoena or court order. You may cancel your Cash App account at any time by withdrawing all balances and visiting our Support Center. You will not be charged for canceling your Cash App account. You authorize us to cancel or suspend any pending transactions at the time of cancellation.

XI. Miscellaneous

  1. Independent relationship. You agree that: (a) we are not acting as your broker, intermediary, agent, or advisor, or in any fiduciary capacity, and (b) no communication or information provided to you by us shall be considered or construed as advice.

  2. Force Majeure Events. We shall not be liable for (a) any inaccuracy, error, delay in, or omission of (i) any information, or (ii) the transmission or delivery of information; or (b) any loss or damage arising from any event beyond our reasonable control, including but not limited to flood, extraordinary weather conditions, earthquake, or other act of God, fire, war, insurrection, riot, labor dispute, accident, action of government, communications, power failure, or equipment or software malfunction, act of terror, or any other cause beyond our reasonable control (each, a “Force Majeure Event”).