Common use of Description of Digital Asset Custodian Services Clause in Contracts

Description of Digital Asset Custodian Services. Each Participant hereby designates Zero Hash as its exclusive representative and agent (even exclusive of Participant except to the extent done by Participant through the Zero Hash system) to provide instructions to Wallet Provider related to (a) creation and management of Custodian Accounts, and (b) deposit, transfer, withdrawal or other transaction involving any Digital Asset. Zero Hash will create and maintain separate Participant Accounts in the name of each Participant. Wallet Provider will create and maintain on Wallet Provider’s systems one or more Collateral Accounts. Custodian will transfer Participant’s Digital Assets to and from Collateral Accounts in accordance with instructions received from Zero Hash. Wallet Provider will credit and debit to and from the Participant Accounts amounts that correspond to the calculation of the Participant’s Digital Asset balance for each Participant as provided in this Agreement. With regard to Digital Assets pledged by Participant to Zero Hash as collateral for obligations owed by such Participant on a relevant Transaction Platform, Participant may, from time to time, pledge as security or otherwise encumber all or any portion of its Digital Assets as collateral for obligations owed by such Participant to Zero Hash subject to approval from Platform Operator, if applicable. Wallet Provider will comply with Zero Hash instructions to deposit or transfer all or any portion of the applicable Participant’s Digital Assets to one or more accounts created by Zero Hash to hold such Digital Assets as collateral. Participant acknowledges that Zero Hash may impose restrictions and limitations on the ability of a Participant to transfer, withdraw or otherwise engage in transactions using Digital Assets held as collateral. Zero Hash, through Wallet Provider, securely stores all Digital Assets in a combination of online and offline storage. Accordingly, it may be necessary for Zero Hash to retrieve certain information from offline storage in order to facilitate a Transaction involving Participant’s Digital Assets and in accordance with Participant’s instructions, which may delay the processing of such transaction. Zero Hash may offer multisignature custody solutions which require the electronic approval of multiple individuals designated by Participant before transfers may be completed. These multisignature solutions may allow Participant the option to view, control, and distribute Private Keys of Digital Assets to multiple third parties whose approval is required to transfer the associated Digital Assets. Participant acknowledges that Zero Hash is not responsible for safeguarding or maintain Private Keys outside of its control with respect to multisignature custody solutions.