LUXA PROTOCOL — TERMS OF SERVICE & SYSTEM DISCLAIMER

Document ID: LUXA-LEG-2026-V1  |  Effective Date: September 2026  |  Chain ID: luxa-1

1. Nature of the Service

The LUXA platform provides simulated mining rewards, gamified engagement mechanisms, and on-chain bridging capabilities. "Mining" within the application represents an algorithmic reward allocation calculated off-chain and made redeemable as native sovereign cryptographic tokens (LUXA) on the sovereign Layer-1 blockchain.

2. Non-Financial / Utility Disclaimer

LUXA tokens and Shards are functional cryptographic utilities engineered for network execution, staking, governance, and ecosystem operations. They do not constitute shares, securities, collective investment schemes, or guaranteed financial instruments. The platform makes no representation of future economic value, profit expectation, or fiat parity.

3. Non-Custodial Architecture & User Responsibility

All on-chain Vaults created or imported within the application operate on a non-custodial cryptographic standard (BIP-39 mnemonic phrase derivation):

• The user maintains sole and exclusive custody of the 24-word recovery seed and authentication PIN.
• LUXA Protocol administrators and automated servers do not store, possess, or have access to unencrypted private keys.
• Loss of seed phrases or credentials results in irreversible loss of asset access; the protocol cannot restore or overwrite lost keys.

4. Protocol Settlement, Reserve & Gas Fees

When bridging accumulated mining rewards to on-chain balances, transactions are subject to network governance parameters:

• Protocol Reserve Fee: An automated 8% allocation dedicated to protocol liquidity, network maintenance, and ecosystem rewards.
• Network Gas Fee: A flat network fee (0.001 LUXA) applied to broadcast validation transactions across Cosmos validators.
• Fees are deducted automatically at the moment of claim execution and are non-refundable.

5. Transaction Finality & Blockchain Immutability

Once an on-chain transfer, bridge, or contract call is validated and included in a block on the CometBFT consensus engine, it is immutable, permanent, and irrevocable. The development team cannot modify, reverse, or freeze verified distributed ledger states.

6. Limitation of Liability

The protocol software is delivered on an "as-is" and "as-available" basis. Neither LUXA developers nor validators accept liability for hardware failures, local storage loss, browser cache purges, telecommunication outages, or regulatory actions within individual user jurisdictions.