Delegator Participation Terms & Conditions

This Delegator Participation Terms and Conditions (the “Terms”) constitute a legally binding agreement between the individual or entity accessing or interacting with the Protocol as a Delegator (the “Delegator”, “you” or “your”) and Catalysis International Ltd. a company incorporated under the laws of British Virgin Islands (BVI) , together with its affiliates and related entities (collectively, “Catalysis”, “we”, “us” or “our”).

Catalysis develops and maintains non-custodial, smart-contract-based infrastructure that enables the programmatic allocation and consumption of the staked, restaked digital assets or other liquidity sources (including future developments) as economic security to protect different onchain risk configurations (the “Protocol”). The Protocol operates through permissionless smart contracts deployed on supported blockchain networks and integrates with third-party restaking protocols, including EigenLayer and Symbiotic (collectively, the “Restaking Protocols”).

These Terms govern your voluntary participation in the Protocol as a Delegator, including your delegation of restaked digital assets through one or more supported Restaking Protocols for allocation to risk-isolated security pools known as CoverPools. Delegation occurs exclusively at the level of the applicable Restaking Protocols, which retains custody, accounting, and enforcement control over your digital assets. Catalysis does not receive, custody, hold, or control any delegated assets and interacts solely with the economic security represented by such delegation in accordance with predefined smart-contract logic.These Terms do not apply to, and expressly exclude, users who interact with DeFi vaults, covered vaults, or other protocol features as depositors or beneficiaries of coverage, each of whom is subject to separate terms and disclosures.

By accessing, interacting with, or participating in the Protocol in any manner as a Delegator, including by delegating assets through a supported Restaking Protocol, allocating capacity to a CoverPool, interacting with Protocol smart contracts, or otherwise indicating acceptance of these Terms through an onchain or offchain mechanism, you expressly:

  1. confirm that you have read, understood, and agreed to be bound by these Terms;

  2. represent and warrant that you have the legal capacity, authority, and sophistication required to enter into these Terms and to bear the economic risks described herein; and

  3. acknowledge that such acceptance constitutes a binding agreement between you and Catalysis under the laws of the British Virgin Islands.

If you do not agree to these Terms, you must not participate in the Protocol as a Delegator or delegate assets to any CoverPool.

If you are accepting these Terms on behalf of a corporation, partnership, DAO, fund, or other legal entity, you represent and warrant that you have full power and authority to bind such entity to these Terms. In such circumstances, references to “you” or “your” shall refer to that entity. If you lack such authority, you must not participate in the Protocol.

These Terms, together with any applicable risk disclosures, technical documentation, protocol specifications, and policies expressly incorporated by reference, constitute the entire agreement between you and Catalysis with respect to your participation as a Delegator and supersede all prior or contemporaneous agreements, understandings, or representations, whether written or oral, relating to such participation.

Catalysis may modify, upgrade, suspend, restrict, or discontinue any aspect of the Protocol, including the availability of CoverPools or integrations with Restaking Protocols, at any time for technical, security, regulatory, or operational reasons. While Catalysis may, but has no obligation to, provide advance notice where practicable, you acknowledge and agree that uninterrupted availability of the Protocol is not guaranteed and that Catalysis shall not be liable for any losses arising from such modifications, suspensions, or interruptions.

Nothing in these Terms shall be construed to create or imply any partnership, joint venture, employment, fiduciary, advisory, trust, or agency relationship between you and Catalysis. You participate in the Protocol on a self-directed basis, and neither party has authority to bind or obligate the other except as expressly set out herein and by the onchain smart contract logic.

  1. DEFINITIONS

Unless the context otherwise requires, the following capitalised terms shall have the meanings set out below:

1.1. “Access” means any interaction with, use of, or technical ability to interact with the Protocol, including through Smart Contracts, interfaces, APIs, or third-party integrations.

1.2. “Applicable Law” means any statute, law, regulation, rule, ordinance, directive, guideline, judgment, order, or requirement of any governmental, regulatory, or supervisory authority applicable to a person or activity.

1.3. “Adapter” means any smart contract, interface, or integration module that enables interoperability between the Protocol and third-party protocols, including Restaking Protocols or DeFi vault protocols.

1.4. “Catalysis”, “we”, “us”, or “our” has the meaning set out in Section 1 and includes any smart contracts deployed, maintained, or referenced by Catalysis in connection with the Protocol.

1.5. “Catalysis Core” means the protocol-layer smart contract system that aggregates, abstracts, and coordinates restaked economic security across supported Restaking Protocols and exposes such security for consumption by CoverPools in accordance with predefined parameters.

1.6. “CoverPool” means a risk-isolated smart contract configuration within the Protocol that aggregates committed, slashable delegated economic security supplied by Delegators. Such delegated economic security is programmatically allocated, in accordance with predefined Smart Contract parameters, to support specified vault integrations on supported DeFi protocols through deterministic loss-allocation mechanisms. 

1.7. “Delegation” means the act of allocating or assigning stakes, restaked digital assets, any liquidity sources or the economic security represented thereby, to a CoverPool through a supported Restaking Protocols.

1.8. “Delegator” means an individual or legal entity that supplies economic security to the Protocol by delegating restaked digital assets (including native restaked assets or liquid restaking tokens) through one or more supported Restaking Protocols for allocation to one or more CoverPools. A Delegator acts as a capacity provider within the Protocol by making slashable economic security available for protocol-defined risk allocation mechanisms. Such delegated economic security constitutes the source of capacity consumed by CoverPools in accordance with Smart Contract logic.

1.9. “Fees” means any protocol-level fees, charges, or deductions applied in connection with participation in the Protocol, including fees applied programmatically through Smart Contracts.

1.10. “Force Majeure Event” means any event beyond reasonable control, including acts of God, natural disasters, war, terrorism, civil unrest, governmental actions, systemic infrastructure failures, or network-wide blockchain disruptions.

1.11. “Governance” means any onchain or offchain process by which protocol parameters, integrations, or components are modified, upgraded, paused, or replaced.

1.12. “Loss Event” means the occurrence of one or more predefined, onchain-determinable conditions that, in accordance with the applicable CoverPool parameters and smart contract logic, results in the enforcement of slashing or other economic penalties against delegated economic security.
1.13. “Protocol” means the Catalysis protocol, including all associated smart contracts, reference implementations, adapters, documentation, and integrations, as may be modified, upgraded, or replaced from time to time.

1.14. “Delegator”, “you”, or “your” means any individual or legal entity that participates in the Protocol by delegating or allocating restaked digital assets as economic security to one or more CoverPools, whether directly or indirectly through a liquid restaking token, vault curator, or similar structure.

1.15. “Restaking Protocols” means any third-party protocol that enables the restaking, delegation, custody, accounting, and slashing of digital assets, including without limitation EigenLayer and Symbiotic, as supported by the Protocol from time to time.

1.16. “Rewards” means any protocol-level fees, coverage fees, restaking rewards, or other incentives that may accrue to a Delegator as a result of participation in the Protocol, excluding the return of principal.

1.17. “Sophisticated Participant” means a person or entity with sufficient knowledge, experience, and resources to understand and bear the risks associated with restaking, protocol-enforced slashing, and smart-contract-based economic security mechanisms.

1.18. “Slashing” means the automated, smart-contract-enforced reduction, forfeiture, or reallocation of delegated economic security or the digital assets backing such capacity, in whole or in part, following a Loss Event or other condition specified by the applicable smart contracts.

1.19. “Smart Contracts” means self-executing code deployed on supported blockchain networks that governs the operation of the Protocol, including the logic for delegation, slashing, reward distribution, and CoverPool configuration.

1.20. “Third-Party Protocols” means any protocols, networks, services, or infrastructure not operated by Catalysis, including Restaking Protocols, blockchain networks, vault protocols, bridges, or data providers.

1.21. “Withdrawal” or “Undelegation” means the protocol-defined process by which economic security is removed from a CoverPool or Restaking Protocols, subject to lock-ups, cooldowns, or other constraints.

  1. INTERPRETATION

2.1. References to a “Section” are to sections of these Terms, unless otherwise specified.

2.2. Headings are inserted for convenience only and shall not affect the interpretation of these Terms.

2.3. Words importing the singular include the plural and vice versa.

2.4. References to “including”, “include”, or “includes” shall be deemed to be followed by the words “without limitation”.

2.5. Any reference to an agreement, statute, regulation, or protocol includes such agreement, statute, regulation, or protocol as amended, replaced, or re-enacted from time to time.

2.6. Where these Terms describe or summarise the operation of Smart Contracts, such descriptions are provided for convenience only. In the event of any inconsistency between these Terms and the operation of the Smart Contracts, the Smart Contracts shall prevail to the maximum extent permitted by applicable law.

2.7. Catalysis may amend, update, or modify these Terms from time to time to reflect protocol upgrades, regulatory developments, or operational changes. Updated Terms shall become effective upon publication or onchain reference. Continued participation in the Protocol following any such amendment constitutes acceptance of the revised Terms.

  1. NATURE OF PARTICIPATION AND PROTOCOL ARCHITECTURE

3.1. Protocol-Layer Participation - Participation in the Protocol as a Delegator is effected exclusively through interactions with Smart Contracts deployed on supported blockchain networks and through integrations with third-party Restaking Protocols. Participation is permissionless and self-directed. Catalysis does not operate accounts for Delegators, does not intermediate transactions, and does not exercise discretionary control over any assets or allocations made by Delegators.

3.2. Non-Custodial Structure - At no time does Catalysis take custody, possession, or control of any digital assets delegated or allocated by a Delegator. All digital assets used as economic security are custodied, accounted for, and subject to enforcement mechanisms (including slashing) at the level of the applicable Restaking Protocols. Catalysis cannot access, transfer, rehypothecate, or otherwise dispose of any such assets except through protocol-defined Smart Contract logic.

3.3. Separation of Protocol Components - The Protocol operates as a coordination and abstraction layer that interfaces with multiple independent protocol components, including: 

3.3.1. Restaking Protocols, which custody and administer restaked assets and enforce slashing and reward distribution; and

3.3.2. CoverPools, which apply delegated economic security to predefined risk configurations through Smart Contracts.

3.4. Each such component operates independently pursuant to its own code, rules, and governance processes. Catalysis does not control, guarantee, or assume responsibility for the operation, security, or performance of any third-party protocol integrated with the Protocol.

3.5. No Discretionary Management or Control - Catalysis does not manage, invest, deploy, or rebalance Delegator assets on a discretionary basis. Any allocation of economic security to a CoverPool is initiated by the Delegator (or by a structure acting on the Delegator’s behalf, such as a liquid restaking token or curator) and executed programmatically in accordance with Smart Contract logic. Catalysis does not make investment decisions, select risk exposures on behalf of Delegator, or optimise returns.

3.6. Economic Security, Not Liquidity Provision - Delegators acknowledge and agree that participation in the Protocol constitutes the provision of economic security in the form of slashable economic security, and not the provision of liquidity, deposits, or managed capital. Delegated assets are exposed to protocol-defined loss events and are not intended to be capital-preserving or risk-free.

3.7. Protocol Evolution and Immutability - Certain components of the Protocol may be immutable once deployed, while others may be subject to administrative privileges, governance mechanism, upgrade frameworks, or other forms of privilege control disclosed by Catalysis from time to time. Such mechanism may include, without limitations, the ability to (a) upgrade or replace Smart Contract; (b) modify parameters, risk thresholds, or allocation logic; (c) pause, restrict, or resume specific CoverPools or integrations; (d) migrate integrations or supported Restaking Protocols; (e) whitelist or blacklist pools, integrations, or protocol components; or (f) otherwise modify operational mechanics of the Protocol. 

3.8. Delegators acknowledge that they have not relied on any representation, statement, forecast, or assurance made by or on behalf of Catalysis regarding the performance, profitability, risk profile, or suitability of participation in the Protocol, other than as expressly set out in these Terms and the operative Smart Contracts. The existence or exercise of such administrative or governance controls shall not create any fiduciary, custodial, advisory, or other duty on the part of Catalysis.

3.9. Interfaces and Data Displays - Any dashboards, user interfaces, analytics, simulations, metrics, or third-party frontends are provided for informational purposes only. In the event of any inconsistency between such materials and the Smart Contracts, the Smart Contracts shall prevail. Catalysis shall have no liability for reliance on interface-level or third-party representations.

  1. ELIGIBILITY TO PARTICIPATE AS DELEGATOR

4.1. Participation in the Protocol as a Delegator is strictly limited to persons and entities that satisfy the eligibility criteria set out in this Section. Access to, or use of, the Protocol as a Delegator by any person or entity that does not meet these criteria is expressly prohibited. Catalysis reserves the right, at any time and in its sole discretion, to restrict, suspend, or terminate participation where eligibility requirements are not met or are reasonably believed to no longer be met.

4.2. Non-Retail and Advanced Use Restriction - The Protocol’s restaking and economic security functionality is intended solely for advanced, non-retail use. Participation as a Delegator is not designed for, and must not be undertaken by, retail users, consumers, or persons seeking capital preservation, guaranteed returns, or consumer-style protections. Restaking involves protocol-enforced slashing, automated loss execution, and irreversible outcomes, and is suitable only for participants capable of independently assessing and bearing such risks.

4.3. Technical and Operational Competence Requirement - You may participate as a Delegator only if you possess sufficient technical knowledge and operational competence to understand and interact with blockchain-based smart contracts, Restaking Protocols, delegation mechanics, and slashing conditions. Catalysis does not provide onboarding, risk explanation, suitability assessment, or operational safeguards for Delegators and assumes no responsibility for participant error, misunderstanding, or misuse of the Protocol.

4.4. Sanctions, Export Controls, and Restricted Jurisdictions - You are not eligible to participate in the Protocol as a Delegator if you are, or are acting on behalf of, directly or indirectly: (a) any individual or entity that is subject to sanctions, embargoes, or restrictive measures administered or enforced by Singapore, the United Nations, the United States (including the Office of Foreign Assets Control), the European Union, or any other applicable governmental authority; (b) any individual or entity located, resident, incorporated, or otherwise organised in a jurisdiction subject to comprehensive sanctions or similar restrictive measures; or (c) any individual or entity whose participation would cause Catalysis or the Protocol to be in violation of applicable sanctions, export control laws, or financial crime regulations.

4.5. Catalysis does not conduct sanctions screening, identity verification, or jurisdictional diligence in connection with participation in the Protocol. Eligibility under this Section is determined and maintained solely at your own responsibility.

4.6. No Intermediation or Indirect Retail Access - You may not participate as a Delegator on behalf of, or for the benefit of, any retail user, consumer, or other third party in a manner that would circumvent the eligibility restrictions set out in these Terms. Without limiting the foregoing, you may not pool, syndicate, intermediate, or structure participation in the Protocol in a way that would reasonably be expected to expose Catalysis to regulatory obligations applicable to retail participation, collective investment schemes, or managed products.

4.7. Ongoing Eligibility Requirement - Eligibility to participate as a Delegator is a continuing condition. If at any time you cease to satisfy any eligibility requirement set out in this Section, you must immediately cease participating as a Delegator and take such steps as are reasonably necessary to withdraw or reallocate delegated assets in accordance with the Protocol’s mechanics. Continued participation following a change in circumstances constitutes a breach of these Terms.

4.8. Catalysis may, without notice and without liability, restrict access to the Protocol, disable participation in specific CoverPools, or take other reasonable measures if it determines, or reasonably believes, that continued participation may expose Catalysis or the Protocol to regulatory, sanctions, or legal risk.

  1. RESTAKING PROTOCOLS AND DELEGATION MECHANISM

5.1. Use of Third-Party Restaking Protocols - Participation in the Protocol as a Delegator requires interaction with one or more third-party restaking protocols supported by Catalysis from time to time (each, a “Restaking Protocol”). Restaking Protocols operate independently of Catalysis and are responsible for the custody, accounting, delegation, reward distribution, and enforcement (including slashing) of restaked digital assets in accordance with their respective smart contracts, rules, and governance processes. Your participation is also subject to the terms and conditions of any applicable Restaking Protocol.

5.2. No Custody or Control by Catalysis - At no time does Catalysis take custody, possession, or control of any digital assets restaked, delegated, or allocated by a Delegator. All digital assets remain custodied at the level of the applicable Restaking Protocols and are subject exclusively to the control and enforcement logic of that Restaking Protocol’s smart contracts. Catalysis has no ability to access, transfer, withdraw, rehypothecate, or otherwise dispose of any such assets.

5.3. Delegation of economic security - By participating as a Delegator, you may elect to delegate restaked assets, or the economic security represented thereby, to one or more CoverPools through the mechanisms provided by the applicable Restaking Protocol. Such delegation constitutes an allocation of economic security only and does not create any ownership interest, entitlement, or claim against Catalysis, any DeFi vault, or any Covered Vault user.

5.4. Protocol-Enforced Mechanics - All delegation, allocation, reward distribution, and slashing actions are executed programmatically through Smart Contracts. Catalysis does not review, approve, delay, prevent, or reverse any such actions once initiated. You acknowledge that Smart Contract execution is deterministic and irreversible, and that Catalysis has no ability to intervene in or override protocol-defined outcomes.

5.5. No Responsibility for Restaking Protocols Operation - Catalysis does not operate, control,  or guarantee the security, performance, availability, or correctness of any Restaking Protocol. Any failure, exploit, misconfiguration, governance action, or operational issue affecting a Restaking Protocols may result in loss of assets, slashing, delayed withdrawals, or other adverse outcomes, for which Catalysis shall bear no responsibility.

5.6. Catalysis may, from time to time and at its discretion, add, modify, or discontinue support for specific Restaking Protocols or integrations. Such changes may affect delegation mechanics, risk exposure, or the availability of CoverPools. Continued participation following any such change constitutes acceptance of the revised integration landscape.

5.7. Catalysis makes no representations or warranties regarding the availability, utilisation, profitability, or risk profile of any delegation to a CoverPool or Restaking Protocols. Delegation decisions are made solely by the Delegator (or by structures acting on the Delegators behalf), and all economic outcomes, including losses resulting from slashing or protocol failure, are borne entirely by the Delegator.

  1. COVERPOOLS AND ALLOCATION OF ECONOMIC SECURITY

6.1. CoverPools are discrete, risk-isolated smart contract instances within the Protocol that apply delegated economic security to predefined risk configurations associated with specific DeFi vaults or vault classes. Each CoverPool operates independently pursuant to its own parameters, logic, and economic constraints, as implemented through Smart Contracts.

6.2. Pool-Scoped Risk and Economic Isolation - economic security delegated to a CoverPool is economically and operationally isolated to that CoverPool. Losses, slashing events, rewards, and other economic outcomes arising in connection with a particular CoverPool are confined solely to that CoverPool and shall not affect any other CoverPool or any other economic security not expressly delegated thereto.

6.3. Delegator Allocation Decisions - Delegators are solely responsible for determining whether, and to which CoverPools, they allocate economic security. Catalysis does not recommend, endorse, curate, or assess the suitability of any CoverPool for any Delegator. Allocation decisions are self-directed and executed programmatically through Smart Contracts.

6.4. Each CoverPool is configured with predefined parameters, which may include, without limitation, the scope of covered risks, utilisation thresholds, duration, and slashing conditions. Delegators acknowledge that such parameters define and limit both the risk exposure and potential economic outcomes associated with participation in that CoverPool.

6.5. No Cross-Subsidisation or Mutualisation - There is no mutualisation of risk or returns across CoverPools. economic security delegated to one CoverPool shall not be used to support, compensate, or subsidise losses, or obligations arising from any other CoverPool. No Delegator acquires any right or expectation of support from assets or capacity allocated to other CoverPools.

6.6. No Guarantees as to CoverPool Utilisation - Catalysis makes no representation or warranty that any CoverPool will be utilised, generate rewards, or remain active for any period of time. economic security may remain idle, partially utilised, or fully utilised depending on protocol conditions, vault demand, and other factors outside Catalysis’ control.

6.7. Catalysis may modify, pause, or discontinue the creation of new CoverPools or the operation of existing CoverPools for technical, security, regulatory, or operational reasons. Such actions may affect risk exposure, reward flows, or allocation mechanics. Catalysis shall have no liability to Delegators arising from any such modification, pause, or discontinuation, subject to the constraints of the applicable Smart Contracts.

  1. SLASHING MECHANISM

7.1. Slashing is the protocol-defined mechanism by which economic security delegated to a CoverPool is economically enforced. Slashing operates to allocate predefined losses to delegated economic security upon the occurrence of specified Loss Events, in accordance with Smart Contract logic.

7.2. Slashing may occur only upon the satisfaction of one or more Loss Event conditions as encoded in the Smart Contracts governing the relevant CoverPool. Such conditions are objective, onchain-determinable, and parameterised in advance. No subjective assessment, discretionary determination, or offchain evaluation is involved in triggering Slashing.

7.3. Slashing applies solely to economic security delegated to the specific CoverPool in which the Loss Event occurs. Under no circumstances shall Slashing affect digital assets or economic security allocated to any other CoverPool or held outside the relevant CoverPool configuration.

7.4. The quantum, rate, and method of Slashing are determined exclusively by the applicable Smart Contracts and CoverPool parameters. Slashing may result in the partial or total reduction, forfeiture, or reallocation of the delegated economic security or the digital assets backing such capacity, subject to any predefined caps or limits encoded in the Smart Contracts.

7.5. All Slashing actions are executed automatically by Smart Contracts without human intervention. Catalysis does not initiate, approve, delay, prevent, modify, or reverse any Slashing action once the relevant trigger conditions are met.

7.6. Slashing, once executed, is final and irreversible. There is no mechanism within the Protocol for appeal, rollback, reversal, or discretionary adjustment of Slashing outcomes.

7.7. Slashing enforcement may rely on the mechanics, enforcement rails, or accounting of third-party Restaking Protocols. Catalysis does not control, guarantee, or assume responsibility for the correctness, availability, or execution of such third-party enforcement mechanisms.

  1. REWARDS, FEES, AND ECONOMIC MECHANISM

8.1. Delegators may accrue economic returns solely as a function of protocol-defined mechanics. Such returns may include, without limitation: (a) coverage fees paid into a CoverPool by Covered Vault participants; (b) rewards, incentives, or yield generated by the applicable Restaking Protocols; and (c) any additional protocol-level incentives implemented by Catalysis or third-party protocols. All reward sources are subject to availability and the operation of the relevant Smart Contracts.

8.2. Rewards are accounted for and allocated on a per-CoverPool basis. Only economic security actively delegated to a specific CoverPool is eligible to accrue rewards attributable to that CoverPool. No rewards are shared, pooled, or mutualised across CoverPools.

8.3. The calculation, accrual, and distribution of rewards are performed programmatically through Smart Contracts. Catalysis does not manually calculate, adjust, or override reward outcomes. Distribution timing, frequency, and method are determined exclusively by Smart Contract logic and may vary across CoverPools or Restaking Protocols.

8.4. Certain rewards may be generated, distributed, or enforced by third-party Restaking Protocols or other integrated protocols. Catalysis does not control, guarantee, or assume responsibility for the availability, accuracy, timing, or continuation of such third-party reward mechanisms.

8.5. Rewards earned in connection with participation in a CoverPool may be reduced by fees, commissions, reward splits, or other deductions imposed by third parties, including Restaking Protocols, liquid restaking token issuers, vault operators, curators, or other intermediaries. Catalysis does not control such fees or deductions and makes no representation regarding your net rewards.

8.6. Catalysis may, from time to time, specify protocol-level fees, parameter adjustments, or incentive structures applicable to Delegator participation. Any such fees or parameters shall be applied programmatically through Smart Contracts and may vary by CoverPool or integration.

8.7. Rewards, if any, are accounted for independently of any Slashing or other protocol-enforced reductions. The existence or accrual of rewards does not limit, offset, or otherwise affect the application of Slashing or other enforcement actions under the Protocol.

  1. LOCKUPS, WITHDRAWALS, AND REALLOCATION

9.1. Economic security delegated to a CoverPool may be subject to a lock-up period, during which withdrawal, un-delegation, or reallocation of such capacity is restricted or prohibited. Lock-up periods, where applicable, are defined by the parameters of the relevant CoverPool and the mechanics of the applicable Restaking Protocol.

9.2. Active economic security Restrictions - While economic security is actively allocated to a CoverPool and subject to potential Slashing, withdrawal or reallocation of such capacity may be restricted or disabled. Such restrictions are enforced programmatically through Smart Contracts and are intended to ensure the integrity and availability of economic security during the applicable coverage period.

9.3. Withdrawal Mechanics - Where withdrawals or undelegations are permitted, they may be subject to cooldown periods, exit windows, batching mechanisms, or other protocol-defined constraints. The timing, process, and conditions for withdrawal are determined exclusively by the applicable Smart Contracts and, where relevant, the rules of the associated Restaking Protocol.

9.4. Reallocation of economic security - Subject to applicable lock-ups, cooldowns, and protocol constraints, Delegators may reallocate economic security between CoverPools using the mechanisms supported by the Protocol. Reallocation is executed programmatically and may be subject to changes in risk exposure, reward mechanics, or CoverPool parameters.

9.5. Third-Party Protocol Constraints - Withdrawal and reallocation mechanics may depend on, or be constrained by, the design, enforcement, or operational status of third-party Restaking Protocols. Catalysis does not control, guarantee, or assume responsibility for withdrawal delays, failures, or limitations arising from such third-party protocols.

9.6. Catalysis does not guarantee continuous liquidity, immediate withdrawal rights, or the ability to exit a CoverPool at any particular time. Availability of withdrawal or reallocation functionality is subject to protocol conditions and Smart Contract logic.

  1. ASSUMPTION OF RISKS

You expressly acknowledge and agree that participation in the Protocol as a Delegator involves significant and inherent risks. By delegating restaked digital assets through a Restaking Protocol for allocation to one or more CoverPools, you voluntarily and knowingly assume all risks associated with such participation, whether known or unknown, foreseeable or unforeseeable, including but not limited to: 

10.1. Risk of Loss of Capital - Participation as a Delegator involves a significant risk of loss, including the risk of partial or total loss of digital assets delegated as economic security. Losses may occur rapidly, automatically, and without advance notice. Delegated assets are not capital-protected, principal-preserving, or risk-free, and you should assume that total loss is possible.

10.2. Slashing Risk - Slashing is an inherent and intentional feature of the Protocol. Upon the occurrence of predefined Loss Events, economic security delegated to a CoverPool may be partially or fully slashed in accordance with Smart Contract logic. Slashing may occur irrespective of fault, negligence, misconduct, or breach by any Delegator.

10.3. Erroneous, Excessive, or Unexpected Slashing - Slashing may occur as a result of incorrect assumptions, faulty parameterisation, logic errors, oracle failures, unforeseen protocol interactions, or external dependencies behaving unexpectedly. Slashing outcomes may be disproportionate, erroneous, or unintended and may not be reversible.

10.4. Smart Contract Risk - The Protocol operates through Smart Contracts that may contain vulnerabilities, bugs, logic flaws, or design limitations. Smart Contracts may behave unexpectedly or fail entirely, resulting in loss of assets, incorrect Slashing, incorrect reward distribution, or permanent impairment of protocol functionality.

10.5. Immutability and Upgrade Risk - Certain Smart Contracts may be immutable or difficult to modify. Errors or vulnerabilities in such contracts may be impossible to remediate. Conversely, upgradeable components may introduce new risks, including regressions, altered economic behaviour, or unintended changes to protocol mechanics.

10.6. Governance decisions by Catalysis, Restaking Protocols, or other integrated protocols may modify parameters, alter risk profiles, pause or terminate functionality, migrate assets, or otherwise materially affect participation outcomes. Governance processes may be subject to capture, delay, dispute, or reversal.

10.7. Oracle and Data Risk - The Protocol may rely on onchain or offchain data sources, including oracles and external feeds. Oracle manipulation, latency, censorship, incorrect data, or outages may result in improper triggering of Loss Events, Slashing, or incorrect economic outcomes.

10.8. Blockchain Network Risk - Underlying blockchain networks may experience congestion, reorganisation events, consensus failures, forks, validator outages, censorship, or permanent degradation. Such events may disrupt Protocol operations, delay transactions, or result in loss of assets.

10.9. Delegated assets may be subject to lock-up periods, cooldowns, exit queues, or other withdrawal restrictions. Liquidity may be unavailable for extended periods. In extreme circumstances, withdrawal may be permanently impossible due to protocol failure, slashing, or asset loss.

10.10. Any rewards associated with participation as a Delegator are variable and uncertain. Rewards may be lower than expected, intermittent, delayed, or non-existent. Participation may result in negative net economic outcomes even in the absence of Slashing.

10.11. Market and Economic Risk - Market volatility, asset price declines, depegging events, liquidity crises, or systemic failures in the digital asset ecosystem may materially affect the value of delegated assets, rewards, or overall participation outcomes.

10.12. Although participation is non-custodial, Delegators may be indirectly exposed to counterparty risks associated with validators, node operators, bridge operators, infrastructure providers, or other service providers whose failure or misconduct may result in loss.

10.13. Digital asset restaking, slashing-based economic security, and onchain security are subject to uncertain and evolving regulatory treatment. Legislative changes, regulatory actions, enforcement proceedings, or restrictions may adversely affect the Protocol or render participation unlawful or impracticable.

10.14. Sanctions and Compliance Risk - Changes in sanctions regimes, export controls, or compliance obligations may affect Protocol access, asset mobility, or legality of participation. Assets may become frozen, inaccessible, or unrecoverable as a result of compliance actions or regulatory intervention.

10.15. Tax Risk - The tax treatment of rewards, losses, and Slashing events is uncertain and may vary across jurisdictions. Participation may give rise to unexpected tax liabilities, reporting obligations, penalties, or adverse tax consequences.

10.16. Operational and User Error Risk - User error, incorrect configuration, mistaken delegation, private key compromise, wallet failure, phishing, or interaction with malicious interfaces may result in irreversible loss of assets.

10.17. Cybersecurity and Attack Risk - The Protocol, integrated protocols, user interfaces, and supporting infrastructure may be subject to hacking, exploits, phishing attacks, malware, denial-of-service attacks, or other cybersecurity incidents resulting in loss of assets or functionality.

10.18. Events beyond reasonable control, including natural disasters, war, terrorism, civil unrest, government actions, systemic infrastructure failures, or force majeure events, may disrupt or permanently impair Protocol operations.

10.19. Information provided by or on behalf of Catalysis, including documentation, metrics, analytics, or communications, may be incomplete, delayed, inaccurate, or outdated. Information asymmetry may exist between participants or over time.

10.20. Participation as a Delegator does not involve any insurance arrangement, indemnity, compensation fund, deposit protection scheme, or governmental guarantee. Losses are borne entirely by the Delegator.

10.21. Transactions executed via Smart Contracts, including Slashing and reward distribution, are generally irreversible. Errors, losses, or unintended outcomes may not be recoverable.

10.22. The Protocol operates in a rapidly evolving technological, economic, and regulatory environment. Additional risks may exist that are not presently known, foreseeable, or quantifiable, including risks arising from novel attack vectors, emergent behaviours, or systemic interactions.

10.23. By participating as a Delegator, you acknowledge that you have read and understood this Section 8, that you accept the possibility of partial or total loss of delegated assets, and that you participate in the Protocol entirely at your own risk.

  1. REPRESENTATIONS AND WARRANTIES BY THE DELEGATOR

The Delegator represents and warrants to Catalysis, on a continuing basis for so long as the Delegator participates in the Protocol, as follows:

11.1. The Delegator has full legal capacity, power, and authority to enter into these Terms and to participate in the Protocol as a Delegator. Where the Delegator is acting on behalf of a legal entity, such entity is duly organised, validly existing, and in good standing under applicable law, and the Delegator has full authority to bind such entity to these Terms.

11.2. The Delegator meets, and will continue to meet, all eligibility criteria set out in these Terms, including any non-retail, jurisdictional, sanctions, or participation restrictions. The Delegator acknowledges that eligibility is a continuing condition and that any failure to meet such criteria constitutes a breach of these Terms.

11.3. The Delegator represents that it understands the technical and economic mechanics of the Protocol, including restaking, delegation, CoverPools, economic security, Loss Events, and Slashing, and that it is capable of independently evaluating and operating within such mechanics without reliance on Catalysis.

11.4. The Delegator acknowledges and represents that it understands that Slashing is an inherent feature of the Protocol and that participation may result in partial or total loss of digital assets delegated as economic security. The Delegator confirms that it is able to bear such losses without undue financial hardship.

11.5. The Delegator represents that it has not relied on any statement, representation, forecast, assurance, or advice made by or on behalf of Catalysis or any third party in deciding to participate as a Delegator, other than as expressly set out in these Terms and the operative Smart Contracts.

11.6. The Delegator represents that it has conducted its own independent assessment of the Protocol, including legal, regulatory, tax, technical, and economic considerations, and has determined that participation is suitable based on its own objectives and circumstances.

11.7. The Delegator represents that its participation in the Protocol complies, and will continue to comply, with all applicable laws, regulations, sanctions, export controls, and reporting obligations in any jurisdiction relevant to the Delegator. Catalysis makes no representation as to the legality of participation in any jurisdiction.

11.8. The Delegator represents that it is not, and is not acting on behalf of, directly or indirectly, any person or entity subject to sanctions, embargoes, or restrictive measures administered by Singapore, the United Nations, the United States (including OFAC), the European Union, or any other applicable authority.

11.9. The Delegator represents that it is the lawful owner or authorised controller of the digital assets used for restaking and delegation, that such assets are not derived from unlawful activity, and that participation in the Protocol does not violate any third-party rights or contractual obligations.

11.10. The Delegator represents that it understands and agrees that participation as a Delegator does not constitute insurance security, a deposit, or an investment product, and that Catalysis does not owe any fiduciary, advisory, or similar duty to the Delegator.

11.11. All representations and warranties made by the Delegator under this Section are true, complete, and accurate as of the date first made and shall be deemed repeated on each occasion the Delegator interacts with the Protocol, delegates assets, or maintains economic security.

11.12. The Delegator acknowledges that any breach of this Section may result in restriction, suspension, or termination of participation in the Protocol, without prejudice to any other rights or remedies available to Catalysis under these Terms or applicable law.

  1. INDEMNIFICATION

12.1. As a condition of participation in the Protocol as a Delegator, you agree to indemnify, defend, and hold harmless Catalysis, its affiliates, and their respective directors, officers, employees, contributors, and agents (collectively, the “Indemnified Parties”) from and against any and all claims, actions, proceedings, losses, damages, liabilities, penalties, costs, and expenses (including reasonable legal fees and enforcement costs) arising out of or relating to:

12.1.1. your participation in the Protocol or any CoverPool;

12.1.2. any breach of these Terms or any representation or warranty made by you;

12.1.3. any violation of Applicable Law, including sanctions, export controls, financial crime, or regulatory requirements;

12.1.4. any misuse of the Protocol, Smart Contracts, or Third-Party Protocols by you or on your behalf; or

12.1.5. any claim that your participation as a Delegator constituted an unauthorised, unlawful, or improperly structured activity in any jurisdiction.

12.2. Catalysis shall have the right, but not the obligation, to assume control of the defence and settlement of any claim subject to indemnification under this Section, including the selection of legal counsel. You agree to cooperate fully, at your own expense, in the defence of any such claim and to provide all information and assistance reasonably requested.

12.3. Catalysis may settle any claim without your consent provided that such settlement does not admit fault or wrongdoing on your part and does not impose any non-monetary obligation on you. Where a proposed settlement would impose such obligations, your consent (not to be unreasonably withheld, conditioned, or delayed) shall be required.

12.4. Upon written request by Catalysis, you shall promptly advance funds sufficient to cover reasonably anticipated defence costs and expenses in connection with any indemnified matter, subject to reconciliation against final amounts determined to be payable.

12.5. This indemnity obligation shall apply regardless of whether the claim arises from onchain or offchain activity and shall survive termination or suspension of your participation in the Protocol.

  1. LIMITATION OF LIABILITY

13.1. Participation in the Protocol as a Delegator is conditional upon acceptance of the limitations set out in this Section. To the maximum extent permitted by applicable law, Catalysis shall not be liable for any losses, damages, costs, or liabilities arising from or in connection with participation in the Protocol, including in connection with any protocol-defined outcome.

13.2. Without limiting the foregoing, Catalysis shall not be liable for any losses or damages arising from or relating to (a) any Slashing, Loss Event, or other protocol-enforced action; (b) the execution, performance, or operation of Smart Contracts; (c) the allocation, utilisation, non-utilisation, or withdrawal of economic security; or (d) any action or omission taken in accordance with these Terms and the operative Smart Contracts.

13.3. To the maximum extent permitted by applicable law, Catalysis shall not be liable for any indirect, incidental, consequential, special, exemplary, or punitive damages, including loss of profits, loss of revenue, loss of opportunity, loss of use, loss of data, loss of goodwill, or business interruption, regardless of the theory of liability and whether or not Catalysis was aware of the possibility of such damages.

13.4. Catalysis shall not be responsible or liable for any loss, damage, or liability arising from or attributable to the acts, omissions, failures, exploits, governance actions, or performance of any third-party protocols or infrastructure, including Restaking Protocols, blockchain networks, vault protocols, bridges, or service providers.

13.5. Catalysis shall not be liable for any loss or damage arising from the suspension, modification, upgrade, limitation, or discontinuation of any aspect of the Protocol, including any CoverPool, integration, interface, or Smart Contract, whether temporary or permanent.

13.6 Without limiting any other limitation or exclusion of liability set out in this Section, and to the maximum extent permitted by Applicable Law, the total aggregate liability of Catalysis arising out of or in connection with your participation in the Protocol, whether in contract, tort (including negligence), statutory duty, or otherwise, shall not exceed USD 100 (one hundred United States dollars) in total. This limitation applies to all claims collectively and not per claim, incident, or event.

  1. TERMINATION AND SUSPENSION OF PARTICIPATION

14.1. Catalysis may, at any time and without prior notice, restrict, suspend, or terminate a Delegator’s access to the Protocol, or any portion thereof, where Catalysis reasonably determines that (a) the Delegator no longer satisfies the eligibility requirements set out in these Terms; (b) the Delegator has breached or is reasonably suspected of breaching these Terms; (c) continued participation may expose Catalysis or the Protocol to legal, regulatory, sanctions, or security risk; or (d) such action is required for technical, security, or operational reasons.

14.2. Upon termination or suspension of participation, (a) the Delegator shall immediately cease accessing or interacting with the Protocol as a Delegator; (b) no new delegation or allocation of economic security shall be permitted; and (c) any delegated assets shall remain subject to applicable lock-ups, Slashing mechanisms, and Smart Contract constraints. Termination shall not affect any Slashing, Loss Events, or protocol-defined outcomes that occurred or were triggered prior to or in connection with such termination.

  1. GOVERNING LAW 

15.1. These Terms, and any dispute or claim arising out of or in connection with participation in the Protocol, shall be governed by and construed in accordance with the laws of the British Virgin Islands (BVI), without regard to conflict of law principles.

15.2. To the maximum extent permitted by Applicable Law, you agree that any claim arising out of or relating to participation in the Protocol shall be brought solely in your individual capacity and not as a plaintiff or class member in any purported class, collective, or representative proceeding.

15.3. If the dispute is not resolved through mediation within 30 (thirty) days of its initiation, or if either party refuses to participate in the mediation process, the dispute shall be finally settled by arbitration in accordance with the laws of BVI and the rules of the BVI International Arbitration Centre (BVI IAC) (as amended from time to time) (“BVI Rules”). The seat of Arbitration shall be BVI.The arbitration shall be conducted before a single arbitrator appointed in accordance with the BVI Rules. The language of the arbitration shall be English.