These terms are a working draft. They have not been reviewed by a qualified lawyer in any jurisdiction and do not yet form a binding agreement. They were written in-house, and they are published so that anyone participating can see what is proposed rather than being handed a finished document with no history.

Nothing in this draft limits any right you have under mandatory law. Where this draft and mandatory consumer law conflict, mandatory law wins — and that stays true of the final version.

• Moral Hazard — the game implemented by the Contracts.
• The Contracts — the smart contracts deployed on public blockchains that implement the game. Addresses are listed in the Handbook.
• The Interface — this website, and any other frontend published by the Service Provider.
• The Operator — the entity that operates Moral Hazard and to which the protocol fee accrues.
• The Service Provider — the party providing development, technical infrastructure, and the Interface.
• Participant / you — anyone interacting with the Contracts, through the Interface or directly.

Pending: the operating entity structure is still being settled, so the Operator and the Service Provider are not yet named. They will be named here. Publishing a document that names the wrong party would be worse than saying this plainly.

Moral Hazard is an experimental on-chain game, built as a playable version of the economics concept it is named after.

It is not a financial service, an investment product, a regulated financial instrument, a collective investment scheme, or a deposit-taking business. It is not a game of chance: there is no random number generator, draw or roll anywhere in the Contracts, no operator-set odds, and no house taking the other side of any position. The reasoning is set out in full in the Handbook (is this gambling? and is this a financial product?) rather than merely asserted here.

No token is issued by Moral Hazard. The GoodNFT and BadNFT are game positions — not securities, and not claims on any enterprise.

By participating you confirm that you:

• are at least 18 years old and have legal capacity;
• are acting on your own account, not for an undisclosed third party;
• are not subject to sanctions, and not resident in a sanctioned jurisdiction;
• are not accessing Moral Hazard from a jurisdiction where doing so is unlawful, and will not use technical means to circumvent an access restriction.

Pending: a restricted-jurisdiction list and its enforcement are not yet in place.

Moral Hazard is the deployed Contracts. The Interface is one non-custodial way to reach them: it never takes custody of your assets, never holds your keys, and cannot move, freeze, or reverse anything on your behalf. Where the Interface and the Contracts disagree, the Contracts govern.

The Interface may be modified, interrupted, or discontinued at any time, and its availability is not warranted — your position lives on-chain and stays reachable directly or through any other interface. Anyone is free to build one.

Your wallet, your blockchain network, your RPC provider and the Superfluid Protocol are third-party services. Neither the Operator nor the Service Provider controls them or is responsible for their availability, correctness, fees, or conduct.

Nothing provided by the Operator, the Service Provider, or the Interface is financial, investment, tax or legal advice, and nothing on it is an offer or solicitation.

Outcomes depend on the decisions of other participants and on the value of the token you use. No outcome is promised — you may receive back less than you transferred or streamed in, up to the whole amount. Figures shown in the Interface are neutral statistics about current state; they are not projections and are not a representation about any future result.

The Interface presents these before you act, and the Handbook documents each in full — Good side and Bad side. In summary:

• Smart contract risk. The Contracts are verified and open-source and have undergone repeated internal and AI-assisted security review, but they have not had a formal third-party security audit by a professional audit firm. Review is not assurance. Bugs or exploits could result in total loss.
• No break-even guarantee. A Good Spot holder may be claimed away before receiving back what they transferred. A Bad streamer may stream out more than they receive in distributions.
• Deposit forfeit. Closing a Bad stream before the lock expires forfeits the deposit — however the stream ended, including one closed because your balance ran too low to fund it.
• Liquidation. Superfluid sentinels close underfunded streams. That is protocol behaviour, outside anyone's control here.
• Token value. The token you use moves in value independently of the game.
• Network risk. Congestion, reorganisation, or failure of the underlying blockchain.

Two separate 1.337% flows, both disclosed in the Interface before you act:

• Protocol fee — 1.337%. Taken from each Good Spot claim amount and from forfeited deposits, accruing to the Operator. The rate is written in when a game is deployed and has no setter; changing it would require deploying an entirely new implementation through the timelock, in public.
• Donation stream — 1.337% of the total Bad-side flow rate, streamed continuously to a donation recipient chosen by the current Good Spot holder from a vetted whitelist. A matching but separate flow, not taken from the protocol fee. Recipients are not necessarily charities — a recipient may be a DAO, a bounty fund, or a campaign artist. Inclusion on the whitelist is not an endorsement, and the Operator does not warrant how a recipient uses what it receives.

Network gas fees are paid by you to network validators and go to neither party.

Stated plainly rather than buried, because it is the part people are entitled to know:

• Some parameters are configurable (deposit configuration, donation whitelist, NFT metadata URL, pause/unpause, timelock roles). The rest of the game logic is changeable only by upgrading the implementation. The full list is in the Handbook.
• Every change passes through a TimelockController delay (≈48 hours on mainnet, 20 minutes on testnet) and is visible on-chain while it waits. The Interface shows a warning on the affected game's pages for the whole window, so you can exit before it takes effect.
• One action is instant: the emergency pause. It freezes new activity only — it cannot move, seize or redirect anyone's assets. Existing streams keep flowing and self-exit stays available. Unpausing takes the full delay.
• Deposits survive a pause — an emergency exit returns them in full, lock waived.

None of this lets anyone change the outcome of a game silently or immediately. It does not mean nobody has power — it means the power is delayed, announced, and exitable.

The Service Provider holds the rights to the Interface, its design language, and original graphical materials including the Moral Hazard logo. The Contracts are open-source and verified.

Logos and trademarks of other projects shown in the Interface — blockchain networks, Superfluid, and others — belong to their respective owners and are used for identification only. Character sets contributed for a campaign remain the property of their creator, licensed to Moral Hazard for display and integration. Invite-animal icons are UICONS by Flaticon. Full attribution and operator details are in the imprint.

You may build your own interface to the Contracts. You may not present it as the official one, or use the Moral Hazard name and marks in a way that suggests endorsement.

There are no accounts and no registration. What is collected is documented in the Handbook: on-chain data (already public), voting and invite records linked to a wallet address, notification-dismissal timestamps, and anonymous aggregate usage counts. No cookies for tracking, no IP logging, no per-user profiles.

If you mint the Profile NFT, your interface preferences and acknowledgements are written on-chain and are publicly readable — inherent to it, and stated before you mint.

The full detail — including how IP addresses are used, retention, your rights, and what erasure can and cannot do on a public blockchain — is in the privacy policy, which unlike these terms is published and in force. Operator details are in the imprint.

To the maximum extent permitted by applicable law, and without limiting any liability that cannot lawfully be excluded — including liability for death or personal injury, for fraud, and for gross negligence or intent:

• Moral Hazard is provided “as is” and “as available”, without warranty of any kind.
• Neither the Operator nor the Service Provider is liable for losses arising from: the value or outcome of your participation; the acts, omissions or strategies of other participants; smart contract bugs or exploits; the failure, unavailability or error of any third-party service; your own loss of keys or your own transaction errors; or unavailability of the Interface.
• Nothing here excludes or limits mandatory rights you have as a consumer under the law of your place of residence.

Pending — deliberately left blank. Governing law and forum cannot be chosen before the operating entity is settled, and under EU consumer-protection rules a consumer generally keeps the protection of the mandatory law of their place of residence and the right to sue there regardless of any clause to the contrary. Until this is settled, no dispute-resolution mechanism is imposed and none of your legal rights are waived.

Material changes will be announced in the Interface, consistent with how contract changes are already announced during their timelock delay. Continuing to participate after a change means accepting it — except where mandatory law requires your express consent.

Via the routes listed in the Handbook — I'd like to collaborate or who made this. If you spot something wrong or missing in this draft, saying so is genuinely useful; it is a large part of why it is published at this stage.