Terms of Service

Boom provides a user interface and supporting software that make it easier to access the Derive Protocol, a decentralized crypto-asset options and derivatives protocol operated and governed by the Derive decentralized autonomous organization (the “Derive DAO”). When you buy a “ticket” through Boom, you are purchasing a short-dated BTC call option that is created, matched, and settled by the Derive Protocol's smart contracts and off-chain orderbook.

Boom is built on the Derive Protocol but has no official partnership, sponsorship, or endorsement from Derive, the Derive DAO, the Derive Foundation, Lyra Technologies Corp, or any of their affiliates. We operate as an independent third-party interface that routes user-initiated trading volume to the Derive Protocol. We do not operate or control the Derive Protocol, any blockchain network, any wallet provider, or any fiat on-ramp. We do not custody your assets, do not hold your private keys, and cannot access, freeze, reverse, or recover your funds or transactions.

Convallax is not a broker, dealer, exchange, money transmitter, money services business, custodian, investment adviser, or financial institution. We do not provide custody, clearing, or settlement services; those functions are performed by the Derive Protocol and the underlying blockchains.

To access or use the Service, you represent and warrant that you:

• are at least 18 years old and have capacity to enter into these Terms;
• are not located in, a resident of, or accessing the Service from a Restricted Jurisdiction (defined below), and are not a United States person where prohibited;
• are not a Sanctioned Person and are not owned or controlled by, or acting on behalf of, a Sanctioned Person;
• will not use a VPN, proxy, or other tool to disguise your location or circumvent access restrictions;
• will comply with all laws applicable to you, including tax and securities laws; and
• are solely responsible for determining whether your use of the Service and the Derive Protocol is lawful in your jurisdiction.

“Sanctioned Person” means any person or entity that is the subject of sanctions administered by the U.S. Office of Foreign Assets Control (OFAC), the U.S. State or Commerce Departments, the United Nations, the European Union, the United Kingdom, or other applicable authority, or that is located in or organized under the laws of a comprehensively sanctioned jurisdiction. “Restricted Jurisdiction” means any jurisdiction in which use of the Service or the Derive Protocol would be unlawful or would require registration or licensing we have not obtained, including comprehensively sanctioned territories. We may update the list of Restricted Jurisdictions at any time and may block access by geography.

To use the Service you authenticate through a third-party authentication and embedded-wallet provider (Privy), or you may connect a self-custodial wallet you already control. In either case, the wallet is self-custodial: you, and not Boom, control the wallet and its assets.

When you onboard to the Derive Protocol, the protocol provisions a smart-contract wallet (an SCW) controlled by your signer, and trading is authorized by a session key — a separate key you register with Derive's matching contract that grants limited trading permissions. The Derive Protocol enforces, at the smart-contract level, that orders are valid only when signed by your owner key or an authorized session key. You are solely responsible for safeguarding your credentials, recovery methods, devices, session keys, and any exported private keys. Loss of these may result in irreversible loss of access to your funds. Boom cannot recover them for you.

Each ticket represents a position in a short-dated Bitcoin call option listed on the Derive Protocol. Tickets are priced in USDC and have a strike price and an expiry. At expiry, the option settles according to the Derive Protocol's oracle, mark price, and settlement rules. If Bitcoin's settlement price is above the strike, your position may pay out an amount that varies with how far above the strike Bitcoin settles; if it is at or below the strike, the option expires worthless and you lose the premium paid.

Pricing, available strikes, expiries, liquidity, fees, margin, and settlement are determined by the Derive Protocol and its liquidity providers — not by Boom. Boom does not guarantee any price, fill, payout, return, or outcome. Order matching occurs on Derive's off-chain orderbook and is settled on-chain; fills are not guaranteed and may be partial, delayed, or rejected. Payout illustrations shown in the interface are estimates for convenience only and are not offers, promises, or guarantees.

You may fund your wallet using a third-party fiat on-ramp (such as MoonPay), which delivers crypto (for example, USDC or ETH) to your wallet address. Your purchase is a transaction solely between you and the on-ramp provider, subject to that provider's terms, fees, limits, and identity-verification (KYC) requirements. Boom is not a party to that transaction and does not process your payment.

To trade on the Derive Protocol, USDC is bridged from Ethereum mainnet to the Derive Chain and deposited into your smart-contract wallet and trading subaccount. Bridging and on-chain transactions require network fees (gas), may take time, and once submitted are irreversible. You are responsible for all fees and for verifying transaction details before you approve them. We are not liable for losses arising from network congestion, failed or stuck transactions, bridge delays, slippage, or your own errors (such as sending funds to the wrong address).

Boom may charge a service or interface fee, which, if applicable, will be disclosed in the Service before you confirm a transaction. Separately, the Derive Protocol charges trading and other fees, and blockchain networks and on-ramp providers charge their own fees. You are responsible for all such fees.

The Service, including any data, charts, multipliers, prize zones, or illustrations, is provided for informational purposes only and is not financial, investment, trading, legal, accounting, or tax advice, nor a recommendation to enter into any transaction. You are solely responsible for your decisions and for evaluating the merits and risks of any transaction. Past performance is not indicative of future results.

You agree not to:

• use the Service in violation of any law, regulation, or sanctions program;
• use the Service if you are a Sanctioned Person or located in a Restricted Jurisdiction, or circumvent any access controls;
• engage in market manipulation, wash trading, fraud, or abusive trading practices on the Derive Protocol;
• use the Service to launder money or finance illegal activity;
• interfere with, disrupt, or attempt to gain unauthorized access to the Service, its infrastructure, or other users' accounts or wallets;
• introduce malware, scrape, reverse engineer (except as permitted by law), or place unreasonable load on the Service; or
• misrepresent your identity, age, location, or eligibility.

The Service relies on and links to third-party services and decentralized protocols, including the Derive Protocol and the Derive application operated by Lyra Technologies Corp, blockchain networks (including Ethereum and the Derive Chain), bridge contracts, wallet and authentication providers, and fiat on-ramps. We do not own or control these, are not responsible for their performance, availability, security, fees, or conduct, and provide no warranty regarding them. Your use of the Derive Protocol is governed by the Derive Protocol's own terms, rules, and policies, including its Terms of Use, Trading Rules and Market Integrity Policy, and Oracle, Mark Price and Settlement Policy. We are not a party to, and assume no responsibility under, those terms.

By using the Service, you acknowledge and accept that:

• crypto-asset options are highly volatile and speculative, and you may lose the entire premium you pay for any ticket;
• smart contracts may contain bugs, vulnerabilities, or be exploited, and blockchains may experience reorganizations, forks, congestion, or failures;
• oracle, mark-price, liquidation, and settlement mechanisms of the Derive Protocol are outside our control and may produce outcomes adverse to you;
• transactions are irreversible and we cannot reverse, cancel, or refund them;
• regulatory treatment of crypto assets and derivatives is uncertain and may change; and
• you bear sole responsibility for your tax reporting and obligations.

THE SERVICE IS PROVIDED “AS IS” AND “AS AVAILABLE,” WITHOUT WARRANTIES OF ANY KIND, WHETHER EXPRESS, IMPLIED, OR STATUTORY, INCLUDING IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, AND NON-INFRINGEMENT. WE DO NOT WARRANT THAT THE SERVICE WILL BE UNINTERRUPTED, SECURE, ERROR-FREE, OR THAT DATA SHOWN IS ACCURATE OR CURRENT. WE DO NOT GUARANTEE ANY PRICE, FILL, PAYOUT, OR OUTCOME ON THE DERIVE PROTOCOL.

TO THE MAXIMUM EXTENT PERMITTED BY LAW, CONVALLAX, INC. AND ITS OFFICERS, DIRECTORS, EMPLOYEES, AND AGENTS WILL NOT BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, EXEMPLARY, OR PUNITIVE DAMAGES, OR FOR ANY LOSS OF PROFITS, REVENUE, DATA, OR CRYPTO ASSETS, ARISING OUT OF OR RELATING TO THE SERVICE, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. TO THE MAXIMUM EXTENT PERMITTED BY LAW, OUR TOTAL AGGREGATE LIABILITY FOR ALL CLAIMS RELATING TO THE SERVICE WILL NOT EXCEED THE GREATER OF (A) THE INTERFACE FEES YOU PAID TO CONVALLAX IN THE THREE (3) MONTHS PRECEDING THE EVENT GIVING RISE TO THE CLAIM, OR (B) ONE HUNDRED U.S. DOLLARS (US$100). SOME JURISDICTIONS DO NOT ALLOW CERTAIN LIMITATIONS, SO SOME OF THESE MAY NOT APPLY TO YOU.

You agree to indemnify, defend, and hold harmless Convallax, Inc. and its affiliates and their respective officers, directors, employees, and agents from and against any claims, damages, losses, liabilities, and expenses (including reasonable legal fees) arising out of or related to your use of the Service, your violation of these Terms, your violation of any law or third-party right, or your transactions on the Derive Protocol.

We may modify, suspend, or discontinue the Service (in whole or in part) at any time. We may also update these Terms; the updated version will be posted with a new “Last updated” date. Your continued use of the Service after changes take effect constitutes acceptance of the revised Terms.

We may suspend or terminate your access to the Service at any time, with or without notice, if we believe you have violated these Terms or applicable law, or to protect the Service or other users. Because the Derive Protocol is decentralized, terminating your access to the Boom interface does not affect assets you control on-chain, which you may continue to access through other interfaces.

These Terms and any dispute arising out of or relating to them or the Service will be governed by the laws of the State of Delaware, United States, without regard to conflict-of-laws principles. To the extent permitted by law, you agree that disputes will be resolved on an individual basis and you waive any right to participate in a class action. Nothing in these Terms limits any non-waivable statutory rights you may have as a consumer in your jurisdiction.

These Terms, together with the Privacy Policy, constitute the entire agreement between you and Convallax regarding the Service. If any provision is held unenforceable, the remaining provisions remain in effect. Our failure to enforce any provision is not a waiver. You may not assign these Terms without our consent; we may assign them in connection with a merger, acquisition, or sale of assets. Headings are for convenience only.

Questions about these Terms can be directed to Convallax, Inc. via our official X account @boomfunnn.