Terms and Conditions - Phase 3
These terms will enter into effect when Phase 3 commences. They are displayed so users can assess changes in Phase 3 and decide on their continuing use of USDM. As per the current Terms and Conditions, Phase 3 is being announced at least 30 days before the commencement of Phase 3. Phase 3 exact date has not been determined and users will be notified 7 days before the actual date.
Introduction
By using our services, you are agreeing to these Terms and Conditions ("Terms") that govern the relationship between you and Mountain Protocol (Mountain Protocol Limited, a Bermuda company), the former issuer and current overseer of the wind-down of the USDM token ("USDM").
Please read these Terms carefully before accessing or using any of our remaining services. As of the commencement of Phase 3 of the USDM wind-down process, Mountain Protocol no longer operates a redemption platform, nor does it offer support, custody, or compliance oversight for the use of USDM. Users may continue to exchange USDM through decentralized protocols (e.g., Uniswap) that are not operated, monitored, or controlled by Mountain Protocol.
By holding or interacting with USDM in this Phase, you acknowledge that you have read, understood, and agreed to be bound by these Terms. If you do not agree with these Terms, you must not use USDM or interact with related third-party platforms.
These Terms may be updated or modified by Mountain Protocol from time to time. Significant changes will be announced via our website or other appropriate channels providing 30 day notice before effective changes. Continued interaction with USDM after any such changes constitutes your acceptance of the revised Terms.
If you have any questions or concerns about these Terms, please contact us at: support@mountainprotocol.com.
Definitions
“USDM” is a digital asset (rebasing ERC20 token), originally issued by Mountain Protocol Limited (“Mountain Protocol”) operating on blockchains including Ethereum, Polygon POS, Arbitrum, Base, and Optimism. As of Phase 3 of the wind-down process, Mountain Protocol no longer issues, redeems, or guarantees the liquidity or backing of USDM.
During its issuance phase, USDM was fully backed by U.S. Dollar-denominated assets (“USDM Reserves”), primarily short-term U.S. treasuries, regulated bank deposits, and certain stablecoins. These reserves were held by USDM Reserves Ltd, a legally separate Special Purpose Vehicle under a Bermuda trust. Users should understand that, following the transition to Phase 3, these reserves are no longer maintained for purposes of redemption or price parity. Instead USDM reserves will be placed on a Uniswap AMM contract on the Ethereum blockchain in a concentrated liquidity pool against an eligible stablecoin.
“USDM Reserves” are fully segregated from the issuer, in compliance with the DAB Act of 2018, item 18 (1), held by USDM Reserves Ltd, an orphan Special Purpose Vehicle (SPV), which is a charitable trust held by Carey Olsen Fiduciaries Bermuda Limited, a Bermuda regulated Trust Company. USDM Reserves Ltd. is a legally separate entity to ensure that client assets remain segregated and are protected from claims against Mountain Protocol Ltd. Under no circumstance the USDM Reserves held by USDM Reserves Ltd are commingled with Mountain Protocol Ltd assets. During Phase 3, USDM Reserves will be held on a Uniswap smart contract on the Ethereum blockchain, in the form of eligible stablecoins
“Primary Users” refers to users who hold accounts with Mountain Protocol and have direct access to purchase and redeem USDM through the company’s platform. This category will become inactive following the decommissioning of the platform in Phase 3. “Secondary Users” refers to any holders of USDM who did not hold accounts with Mountain Protocol. In Phase 3, all remaining USDM users are considered secondary users, and redemptions can only occur via third-party decentralized protocols. “The Platform” referres to Mountain Protocol´s web and API interfaces that enabled primary issuance and redemption of USDM. As of the start of Phase 3, the Platform is no longer operational.
"U.S. Person" means any of the following:
A U.S. Citizen or U.S. Resident, which includes:
U.S. citizens;
U.S. lawful permanent residents;
Individuals who meet the “substantial presence” test described in section 7701(b)(3) of the U.S. Internal Revenue Code of 1986 (as amended);
Protected individuals under section 1324b(a)(3) of the U.S. Immigration and Nationality Act; or
Individuals who hold a passport issued by the United States Government;
A corporation, partnership, or other entity established or organised in or under the laws of the United States;
Any estate of a decedent who was a citizen or a resident of the United States;
Any trust if:
A court within the United States is able to exercise primary supervision over the administration of the trust and
One or more United States Persons have the authority to control all substantial decisions of the trust;
Any Person organised or incorporated outside the United States and its territories or insular possessions in which any of the foregoing, whether singularly or in the aggregate, directly or indirectly:
Holds a 50 percent or greater equity interest by votes or value;
Holds a majority of seats or memberships on the board of directors of the entity; or
Authorises, establishes, directs, or otherwise controls the actions, policies, personnel decisions, or day-to-day operations of the Person.
Account Registration
As of the commencement of Phase 3 of the USDM wind-down, Mountain Protocol Limited no longer offers account registration, onboarding, or access to its platform. The company no longer accepts new users, institutions, or representatives. All prior institutional accounts have been decommissioned.
Users may interact with USDM solely through third-party decentralized platforms that are not operated, maintained, or supervised by Mountain Protocol. Such platforms are not subject to Mountain Protocol’s compliance or monitoring policies.
Mountain Protocol prohibits the use of its products and services, including the holding or transfer of USDM, by any person or entity located in, incorporated in, or otherwise associated with jurisdictions subject to sanctions or high-risk AML/CFT exposure, as determined by Mountain Protocol.
Additionally, Mountain Protocol prohibits access by U.S. Persons as defined under these Terms. Any engagement with USDM by U.S. Persons or restricted jurisdictions is unauthorized, and such persons must refrain from using or interacting with the token.
Restricted jurisdictions: Abkhazia, Afghanistan, Albania, Algeria, Angola, Bangladesh, Barbados, Belarus, Bhutan, Bosnia-Herzegovina, Botswana, Burkina Faso, Burundi, Cambodia, Cameroon, Central African Rep, China, Congo, the Democratic Republic, Cuba, Croatia, Eritrea, Ethiopia, Gambia, Gaza Strip, Grenada, Guinea, Guinea Bissau, Haiti, Iran, Islamic Republic of Iraq, Ivory Coast (Cote D’Ivoire), Jamaica, Jordan, Kenya, Kosovo, Kuwait, Lebanon, Liberia, Libya, Madagascar, Mali, Montenegro, Morocco, Mozambique, Myanmar, Nagorno-Karabakh, Nepal, Nicaragua, Niger, North Korea, North Macedonia, Pakistan, Qatar, Russian Federation, Sahrawi Arab Democratic Republic, Senegal, Serbia, Seychelles, Slovenia, Solomon Islands, Somalia, South Africa, South Ossetia, South Sudan, Sudan, Suriname, Syria, Tanzania, Togo, Tonga, Trinidad & Tobago, Turkey, Turks & Caicos, Uganda, Ukraine, United States, Vanuatu, Venezuela, Vietnam, West Bank (Occupied Palestinian Territory), Western Sahara, Yemen, Zimbabwe.
While Mountain Protocol does not operate the decentralized platforms on which USDM may now be traded or redeemed, it maintains this policy as part of its commitment to regulatory compliance and risk mitigation.
Services
As of the commencement of Phase 3 of the USDM wind-down, Mountain Protocol Limited no longer provides active services related to the issuance, redemption, custody, or transfer of USDM. The Company has decommissioned its platform and no longer offers hosted wallets, account access, or primary market infrastructure.
Users who continue to hold or transact USDM may do so exclusively through third-party decentralized protocols (such as Uniswap) that are not operated, monitored, or controlled by Mountain Protocol. These platforms function autonomously via smart contracts and are subject to their own terms, conditions, and risks.
Mountain Protocol does not guarantee the availability, price, or liquidity of USDM in these secondary markets. Users are solely responsible for their interactions with decentralized exchanges and for understanding the associated risks, including slippage, front-running, impermanent loss, and the absence of traditional AML/CFT protections.
Mountain Protocol will not add new blockchains or services going forward. Any reference to previously supported chains, features, or services is for historical context only.
Fees and Charges
As of the start of Phase 3 of the USDM wind-down, Mountain Protocol no longer charges any fees or offers any financial incentives, including rewards, for the holding or use of USDM. The Company no longer provides custody, issuance, redemption, or platform services to users.
Any fees incurred through the use of USDM in decentralized platforms such as Uniswap (including swap fees, slippage, or network transaction costs) are determined by those third-party protocols and not by Mountain Protocol. Users are solely responsible for understanding and accepting such costs prior to engaging in transactions.
Mountain Protocol disclaims any responsibility for fee structures imposed by third parties and does not retain control or visibility over such charges.
Transactions
As of the commencement of Phase 3 of the USDM wind-down, Mountain Protocol no longer processes transactions involving USDM. All user interactions with USDM now occur through decentralized platforms, such as Uniswap, which operate independently and without direct intervention from Mountain Protocol.
Users are fully responsible for:
Ensuring the correctness of transaction information,
Managing private keys and wallet access,
Understanding and accepting the risks associated with trading and transferring assets on decentralized platforms.
Transactions conducted on decentralized networks are irreversible, potentially subject to delays or failures beyond Mountain Protocol’s control, and may incur fees determined by the underlying protocols.
Mountain Protocol disclaims all liability related to the initiation, processing, failure, or consequences of transactions involving USDM post-transition to Phase 3.
Account Termination and Suspension
As of the commencement of Phase 3 of the USDM wind-down, Mountain Protocol Limited has decommissioned its user platform and ceased the provision of all account-based services. No active user accounts remain, and no new account creation, management, or termination is permitted.
Users who continue to hold or interact with USDM do so solely via third-party decentralized protocols, which are not operated, monitored, or supported by Mountain Protocol. Mountain Protocol no longer provides custodial infrastructure or user-specific functionality and therefore cannot suspend, terminate, or re-enable accounts.
Mountain Protocol disclaims all responsibility for any user decisions, losses, or risks related to holding or trading USDM on external platforms during or after the wind-down period.
User Responsibilities
Compliance with local laws: Users remain solely responsible for complying with all applicable laws and regulations in their specific jurisdiction, including those relating to digital assets, taxation, financial reporting, and the use of decentralized finance protocols.Prohibited Use of USDMA: The use of USDM for illegal, fraudulent, or malicious purposes is strictly prohibited.. This includes, but is not limited to, money laundering, financing of terrorism, illegal gambling, fraud, blackmail, extortion, ransomware, or any other activities that violate applicable laws, regulations, or our terms and conditions. While Mountain Protocol no longer operates a platform or maintains user accounts, the company reserves the right to take reasonable steps, where technically possible and legally required, to mitigate or report misuse of USDM that violates legal or regulatory standards.
Disclaimer on Security: As Mountain Protocol no longer provides account-based or custodial services, users are solely responsible for securing their private keys, wallets, and any associated assets. Mountain Protocol bears no responsibility for losses resulting from unauthorized access, misuse of credentials, or the compromise of user-controlled wallets or devices.
Security and Fraud Prevention
As Mountain Protocol no longer operates a user platform, provides custody services, or maintains accounts, it does not implement or guarantee any security infrastructure for users of USDM. All user interactions with USDM now occur through third-party decentralized platforms and self-managed wallets, which are entirely outside of Mountain Protocol's control.
User Responsibility: Users are solely responsible for the security of their wallets, private keys, devices, and any third-party tools they use to store or transact with USDM. Mountain Protocol strongly recommends following best practices for digital asset security, including cold storage, secure backups, and private key protection.
Fraud Prevention Disclaimer: Mountain Protocol does notmonitor transactions or user activity and does not maintain the technical ability to detect or intervene in fraudulent activity involving USDM on decentralized platforms. Users must exercise caution and conduct their own due diligence when engaging in transfers, trades, or other blockchain interactions.
The use of USDM and digital assets generally involves significant risks. As Mountain Protocol has ceased active issuance, redemption, and custody of USDM, users interact with the token exclusively through decentralized platforms beyond the control of Mountain Protocol. You should carefully assess the following risks before engaging in any transaction involving USDM:
Blockchain Risk: Blockchain-based transactions are irreversible and may result in permanent asset loss in the event of errors, unauthorized transfers, or user negligence.Forks and Network Changes: Blockchains on which USDM resides may fork or experience technical disruptions. Mountain Protocol makes no representation as to support for any forked versions of the token.
Smart Contract Vulnerabilities: USDM may be traded or held via smart contracts that have not been reviewed or endorsed by Mountain Protocol. Malicious or faulty contracts may lead to asset loss or unexpected behavior.Market and Liquidity Risk: The value and liquidity of USDM on secondary markets are not guaranteed. You may not be able to sell your holdings at a desired price or time.
Regulatory Risk: Regulatory changes may impact your ability to hold, use, or trade USDM in your jurisdiction. You are responsible for complying with all applicable laws.
No Deposit Insurance: USDM is not a bank deposit, and there is no deposit insurance or guarantee of value from Mountain Protocol or any government agency.
Third-Party Platform Risk: USDM can be integrated into permissionless protocols without the involvement of Mountain Protocol. Use of third-party tools, DEXs, or bridges is at your own risk. Mountain Protocol does not assess or endorse such integrations.
Custody Risk: Since Mountain Protocol no longer provides custody, users are solely responsible for securing their wallets and private keys. Loss of access to private keys may result in total loss of the asset.
Mountain Protocol disclaims all liability for losses or damages arising from these or other risks. By holding or transacting with USDM, you acknowledge and accept these risks.
Prohibited transactions
By holding or using USDM, you agree not to engage in any unlawful or prohibited activity. The following uses of USDM are strictly forbidden::
Violations of any applicable law or regulation.
Use in connection with illegal or fraudulent activity, including money laundering, terrorist financing, or the sale of prohibited goods or services;
Transacting on behalf of, or knowingly transferring USDM to, any person or entity in a restricted jurisdiction or classified as a U.S. Person;
Participation in market manipulation schemes, wash trading, or use of unauthorized marketplaces, including darknet platforms.
While Mountain Protocol no longer intermediates transactions, it expressly prohibits any such uses of USDM. Mountain Protocol will continue to monitor secondary markets and may cooperate with legal authorities, when required by law, to support investigations related to misuse of the token. This may include the need to block/freeze assets or accounts, as well as other measures that can be required by regulators.
Users are solely responsible for ensuring that their use of USDM complies with all applicable laws and with these Terms. Mountain Protocol disclaims any liability for actions taken by users in violation of these restrictions.
Insufficient Funds or Funds sent to legacy platform addresses
If a payment made to tokenize USD for USDM is reversed after the issuance of USDM is completed, Mountain Protocol reserves the right to: (i) retroactively cancel the issuance and deduct the USDM from your account, (ii) deduct such amounts from future USDM issuances or receipts, (iii) suspend your account until resolved, and (iv) pursue legal action or any other means of recovery available. You grant Mountain Protocol the right to block transactions involving USDM from your account and set off any fees or amounts owed against funds held on your behalf.
In case Mountain Protocol engages a third party to recover funds owed by you, you will be responsible for any fees or expenses incurred, including collection fees, legal fees, or convenience fees charged by third parties. You agree that communication regarding funds owed or a delinquent account will be made by email or phone, either by Mountain Protocol or a third party acting on its behalf. Note that engaging third parties for debt recovery may negatively impact your credit.
Third-Party Services and Links
Mountain Protocol does not maintain a user platform or provide any integrations or interfaces with third-party services. All current interactions with USDM are performed through decentralized protocols or platforms operated by independent third parties.
No Endorsement or Oversight: Mountain Protocol does not endorse, audit, control, or assume responsibility for any third-party services, tools, or platforms that support or facilitate the trading or transfer of USDM, including decentralized exchanges (DEXs), wallets, or blockchain bridges. Specifically, Mountain Protocol does not endorse the Uniswap protocol, the ethereum network or the eligible stablecoins used as USDM Reserves. Users should do their own risk assessment ith regards to the new risks introduced as part of Phase 3 and redeem their USDM before the initiation of Phase 3 if they chose to. Not doing so is considered an acceptance of this risks.
User Responsibility: Users are solely responsible for evaluating the security, reliability, and legal compliance of any third-party service they choose to interact with. Mountain Protocol shall not be liable for any losses, data breaches, or damages resulting from such interactions.
External Resources: Any references to third-party websites, protocols, or services are for informational purposes only. Accessing these resources is entirely at your own risk.
No investment advice
Mountain Protocol does not provide any investment advice, financial guidance, or recommendations regarding the purchase, sale, holding of USDM or any other digital assets.
All decisions related to USDM are made at the sole discretion and risk of the user.Users should conduct their own independent research, consult professional advisors, and carefully consider the legal, financial, and technological risks before transacting in digital assets.
Representations and Warranties
By holding or using USDM following the wind-down ofMountain Protocol's platform,, you represent and warrant that:
Legal Capacity: You have the legal capacity to hold and transact with digital assets, including USDM, in your jurisdiction.Compliance with Laws: You will comply with all applicable laws, regulations, and rules in connection with your use of USDM, including those related to anti-money laundering, terrorism financing, sanctions, taxation, and securities laws.
No Illegal Use: You will not use USDM in connection with any illegal, fraudulent, or unauthorized activities, including those prohibited by international sanctions or local laws.
No Misrepresentation: You will not misrepresent your identity or the nature of your transactions involving USDM..
Self-Custody and Responsibility: You understand that Mountain Protocol no longer maintains accounts or provides custodial services, and that you alone are responsible for securing and managing your digital assets.
By holding or transacting with USDM, you acknowledge that Mountain Protocol relies on these representations and disclaims all responsibility for any violations or legal consequences that may arise from your breach of these representations.
Disclaimer of Warranties, Limitation of Liability, and Indemnification
Disclaimer of Warranties: USDM is a decentralized digital asset and ise provided on an "as is" and "as available" basis. Mountain Protocol does not provide any warranties or representations, express or implied, regarding the use, performance, legality, or fitness of USDM for any particular purpose. Mountain Protocol makes no guarantees regarding the security, functionality, or availability of USDM on any third-party platform, wallet, or smart contract. Your use of USDM is entirely at your own risk and discretion.
Limitation of Liability: To the fullest extent permitted by applicable law, Mountain Protocol and its affiliates, directors, officers, employees, and agents shall not be liable for any direct, indirect, incidental, special, consequential, or exemplary damages, whether in contract, tort, or otherwise—arising from or related to your use of USDM, including but not limited to loss of funds, loss of data, inability to access assets, or damages caused by third-party platforms, smart contract failures, or regulatory actions,.
Indemnification: You agree to indemnify, defend, and hold harmless Mountain Protocol, its affiliates, directors, officers, employees, and agent from and against any and all claims, liabilities, damages, losses, or expenses, including reasonable legal' fees arising from:
your use or misuse of USDM;
your violation of these Terms;
your violation of any applicable law or regulation; or
your use of USDM in connection with illegal or unauthorized activities.
By using or holding USDM, you acknowledge and accept the disclaimers, limitations of liability, and indemnification obligations outlined above, which apply to the fullest extent permitted by applicable law.
Governing Law and Jurisdiction
These Terms and Conditions shall be governed by and construed in accordance with the laws of Bermuda, without regard to its conflict of laws principles. Any disputes or claims arising out of or in connection with these Terms, or with your holding or use of USDM, shall be subject to the exclusive jurisdiction of the courts of Bermuda.
Mountain Protocol remains committed to compliance with all applicable laws and regulatory obligations, including anti-money laundering (AML),counter-terrorism financing (CTF, and sanctions frameworks. This includes adherence to standards issued by the Bermuda Monetary Authority (BMA), the US Treasury Department, the Office of Foreign Assets Control (OFAC), Her Majesty's Treasury (HM) List, CFSP (EU) Sanctions, the Financial Crimes Enforcement Network (FinCEN), the United Nations Security Council, the Financial Intelligence Agency (FIA), international regulators, and other applicable AML, anti-corruption, and economic sanctions laws.
Although Mountain Protocol no longer operates a user platform or provides custodial services, it continues to maintain compliance with applicable laws related to the issuance and management of USDM. Mountain Protocol Limited is regulated under Bermuda’s Digital Asset Business Act and has aligned its structure with the BMA’s Guidance forSingle Currency Pegged Stablecoins (SCPS).Users are solely responsible for ensuring that their use of USDM complies with applicable laws and regulatory requirements in their own jurisdictions.
Miscellaneous
Entire Agreement: These Terms and Conditions, along with any referenced policies, constitute the entire agreement between you and Mountain Protocol in connection with the holding or use of USDM, and supersede any prior agreements, understandings, or representations.Severability: If any provision of these Terms is found to be invalid or unenforceable by a court of competent jurisdiction, the remaining provisions shall remain in full force and effect.The invalid or unenforceable provision shall be deemed modified to the extent necessary to make it valid and enforceable.
Waiver: No waiver by Mountain Protocol of any provision or breach of these Terms shall be deemed a waiver of any subsequent breach or provision.
Assignment: You may not assign or transfer your rights or obligations under these Terms without prior written consent from Mountain Protocol may assign or transfer its rights and obligations at any time without notice.
Force Majeure: Mountain Protocol shall not be liable for any failure or delay to perform resulting from causes beyond its reasonable control, including but not limited to natural disasters, war, cyberattacks, labour disruptions, legal or regulatory actions, or failures in communications systems.
Notices: Notices regarding these Terms will be published on Mountain Protocol’s official website or communicated via other public means deemed appropriate. Users are responsible for reviewing the latest version of the Terms periodically.
Contact Information
If you have any questions or concerns regarding these Terms and Conditions, or require clarification about the status of USDM, you may contact Mountain Protocol atsupport@mountainprotocol.com. While Mountain Protocol no longer operates a user platform or provides active services, we will make reasonable efforts to address relevant inquiries related to the wind-down process, regulatory matters, or the general use of USDM.
Please note that response times may be limited and support is provided on a best-effort basis only.
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