October 07, 2025
This xStocks Terms of Service (these "Terms") is a legal agreement between you (the "User") and the operator of the Wallet application ("we," "us," or "our"), governing your access to and use of xStocks, a tokenized stock-tracking digital asset feature within Crypto Wallet (the "Crypto Wallet"). By using xStocks, you agree to comply with these Terms, as well as our main User Agreement and any other applicable policies. If you do not agree, you must not use the xStocks feature.
These Terms form an integral part of Crypto Wallet's User Agreement. The definitions used in these Terms shall have the same meaning as those set forth in the User Agreement, unless otherwise explicitly stated herein.
In the event of any inconsistency between these Terms and the User Agreement, the User Agreement shall prevail. However, where a specific provision in these Terms supplements rather than contradicts the general provisions, such specific provision shall take precedence.
For the purposes of these Terms, the following definitions apply:
xStocks means Traded assets that track the price of specific underlying stocks or exchange-traded assets. Each xStock is a tokenized representation of an underlying stock, intended to provide price exposure without granting any ownership in the company. xStocks provide economic exposure to the price performance of the underlying stock only, without conveying any ownership interest or rights in the company or its securities.
Issuer refers to the independent third-party entity that issues and backs the xStocks tokens.
For these Terms, the Issuer is Backed Assets (JE) Limited, a regulated Jersey-based company, which holds the actual underlying shares via a custodian. We are not the issuer of xStocks; our role is solely to provide a platform interface for trading and custody.
Underlying Stock means the real-world equity security (a share of a publicly traded company or ETF) to which an xStock is linked. The value of an xStock tracks the market price of its underlying stock, but xStock holders have no rights or claims to the actual stocks.
Eligible Jurisdiction means a country or jurisdiction in which we, in our sole discretion and subject to applicable law, offer the xStocks service. The xStocks feature is only available to users in select permitted jurisdictions. It is not offered to residents, citizens, or legal persons of any restricted territories.
Unless otherwise defined herein, capitalized terms have the meanings given in our main User Agreement.
To use the xStocks service, you must have an active Wallet account in good standing and comply with all requirements in our main User Agreement (such as age and identity verification requirements). You are not eligible to access the xStocks Service if you have been blocked, restricted, or otherwise had your permissions limited by Wallet for any reason under the User Agreement, these Terms, or Wallet's internal policies.
Access to xStocks is enabled only in jurisdictions where we make the feature available. If xStocks are not offered in your location, you must not use the feature. We may request reasonable evidence of your location or residence and may rely on controls described in the Wallet User Agreement. xStocks may be unavailable in certain jurisdictions, and Wallet reserves the right to modify its availability in specific jurisdictions at its sole discretion.
To access xStocks Service, you must be a User of Wallet and must be verified at least at Identification Levels "Basic". Depending on Wallet's internal policies, you may be required to verify at the "Extended" or "Advanced" level. We also may require you to provide source of funds inquiries, or providing additional documentation as we or the Issuer deem necessary. We reserve the right to refuse or revoke access to xStocks for any User at any time for compliance or risk reasons, or if we suspect you have provided false information or are engaging in prohibited conduct.
You acknowledge that xStocks are a new and unregulated product. When using xStocks, you will not have the benefits and protections that generally apply to regulated investment services (for example, no government deposit insurance, no investor compensation scheme, and no recourse to a financial ombudsman). Trading in xStocks is highly risky and may not be appropriate for those who do not fully understand its nature.
xStocks provide price exposure to underlying equities, and their value can be extremely volatile. The price of an xStock token can fluctuate greatly over short periods, mirroring or even exceeding the volatility of the underlying stock market. You could incur significant losses, up to and including the total loss of your investment. By investing in xStocks, you acknowledge that you can lose your entire investment and you should not invest funds you cannot afford to lose. Past performance of any stock or token is not indicative of future results.
xStocks are blockchain-based tokens dependent on technology. There are risks of software bugs, smart contract vulnerabilities, network congestion, or failures of the blockchain(s) on which xStocks operate.
Market liquidity for xStocks may be limited. You might not always be able to buy or sell the amount of xStocks you want without significant price impact. In extreme market conditions or if trading halts, you may be unable to liquidate your xStocks at your desired price or time. There is no guarantee of any secondary market or buyer for your xStocks.
While xStocks are intended to mirror the price of the underlying stocks, they may not always perfectly track the real-time price of the underlying asset. Prices of xStocks are derived from third-party price feeds and internal marketplace trading; these can suffer latency, errors, or be influenced by factors when the underlying stock market is closed. xStock prices can deviate ("de-peg") from the underlying stock price due to low liquidity, off-market trading hours, oracle delays, or issuer adjustments related to corporate actions. You should not assume that an xStock token's price will always equal the exact market price of the underlying stock at any given moment.
xStocks are issued and backed by an independent third-party Issuer, not by us. Your ability to redeem or realize value from xStocks depends on the Issuer's integrity and solvency. The Issuer is responsible for holding the underlying shares via regulated custodians. If the Issuer or its custodian fails to properly maintain the 1:1 backing – for example, due to insolvency, mismanagement, fraud, or government action – the xStocks could become partially or entirely unbacked. In such a scenario, the value of your xStocks may drop to zero, and you may lose your entire investment. You further acknowledge that the Issuer and its custodians may be subject to their own risks, including counterparty default and regulatory risks, which could indirectly affect the xStocks.
The legal status of tokenized stocks is uncertain in many jurisdictions. It is possible that regulatory authorities could determine that xStocks constitute securities or other regulated financial instruments under their laws. Regulatory changes or enforcement actions might require us to change, suspend, or terminate the xStocks service, perhaps on short notice. We may be required to block or liquidate your xStocks holdings if continued offering becomes illegal or impractical due to regulation. You bear the risk of any such regulatory disruptions. You are solely responsible for understanding and complying with any laws, regulations, or tax obligations applicable to your trading of xStocks in your jurisdiction.
Nothing in our platform or communications should be taken as investment or financial advice. We do not provide any investment recommendation or advice regarding xStocks or underlying assets. If you are unsure about investing in xStocks, you should consult with a qualified financial adviser. You are solely responsible for evaluating the risks and merits before making any trading decisions.
By using xStocks, you acknowledge that xStocks are a high-risk, speculative product. They are complex and may not be suitable for inexperienced investors. You agree that you understand the risks described in these Terms (as well as other general crypto and market risks not specifically mentioned) and that you accept and are able to bear the potential consequences, including the possibility of total loss.
You understand and agree that purchasing or holding xStocks does not grant you any ownership of, or rights in, the underlying stock or the company that issued the stock. xStocks are purely synthetic representations providing economic exposure to the stock's price movement, not an equity interest. You have no voting rights, no rights to receive dividends or other distributions, no rights to participate in shareholder meetings, and no other shareholder privileges with respect to the underlying company.
Holding xStocks gives you no legal claim, title, or entitlement to the underlying shares or any assets of the Issuer or underlying company. In the event that the underlying company is liquidated or pays out assets, xStock holders have no priority or claim on any proceeds. An xStock token is not a stock certificate or any form of direct ownership, but rather a contractual product issued by the third-party Issuer.
All xStocks tokens are issued by the Issuer and not by the company whose stock is being tracked. The underlying companies (the issuers of the real stocks) are not involved in or responsible for xStocks and owe no obligations or duties to xStock holders. XStocks are not sponsored, endorsed, or promoted by the underlying companies, and those companies may take actions (such as mergers, spin-offs, etc.) without regard to any xStocks, potentially affecting token value. You will not receive the reports, disclosures, or communications that real shareholders receive from the underlying company.
You will not receive any cash dividends, interest, or other distributions that may be paid on the underlying stocks. The Issuer may have its own mechanisms for handling dividends or corporate actions but no dividend will be paid out to your Wallet balance in cash or any other form. Because you are not a shareholder of the underlying company, any corporate events such as dividends, stock splits, or rights offerings do not confer direct benefits to you. We do not facilitate or pass through any corporate action benefits to xStock holders. Any adjustments for such events are managed by the Issuer at its discretion, and we have no obligation or liability regarding corporate actions. If you believe you may be entitled to something due to a corporate action, your only recourse is to contact the Issuer (though generally you should have no such entitlement as an xStock holder).
An xStock token is not the same as owning the actual stock. It is a separate digital instrument that mirrors the stock's price. There may be differences in economic outcome between holding the token versus holding the stock. For instance, because of Issuer fees or operational costs, the long-term returns on xStocks might diverge slightly from the underlying stock's performance (e.g., an xStock could underperform the stock by the amount of fees). Additionally, the token trades on a crypto platform continuously, whereas the stock trades on traditional exchanges with set hours, which can lead to different trading dynamics (see Section 4.7 below). Investing in an xStock is not investing in the stock itself; it is exposure to the stock's price via a synthetic medium.
Unless otherwise announced, xStocks are tradable on a 24/5 basis from Monday 00:10 UTC to Friday 23:50 UTC (the "Trading Window"), subject to scheduled or unscheduled maintenance, liquidity constraints, or risk controls. We may also pause or restrict trading during corporate actions, updates, or other operational events. The underlying stock's primary exchange generally operates Monday–Friday during local market hours (e.g., NYSE/Nasdaq: 09:30–16:00 U.S. Eastern Time, excluding market holidays). As a result, xStock prices may move when the underlying exchange is closed and can diverge from the last official price. Prices displayed on the Platform are derived from trading on the Platform and/or linked liquidity sources and may not reflect global market values. In illiquid periods, Platform prices may differ materially from prices quoted on the underlying stock's primary exchange. You should not rely on xStocks prices as an exact proxy for the underlying stock value at all times. Trading hours, including the Trading Window, may change (including for daylight-saving adjustments or public holidays).
The Issuer may, at its discretion, handle corporate actions (such as stock splits, mergers, or dividends) by adjusting the token's parameters – for example, increasing or decreasing the number of tokens in circulation or the number of shares backing each token. Such adjustments could affect the price of xStocks. These processes might not be transparent to you as a holder, and you may not be given advance notice of Issuer adjustments. We do not control these adjustments but we may temporarily halt xStocks trading if needed to facilitate an adjustment. You understand that complex actions by the Issuer (like "rebasing" tokens to account for dividends or corporate actions) can cause the token price to diverge from the stock price. We strongly encourage Users to review the Issuer's own documentation for information on how corporate events are handled and how tokens can be redeemed or adjusted. We will not be liable for any losses arising from how corporate actions are reflected (or not reflected) in the xStocks tokens.
xStocks in the Wallet are not transferable on-chain and cannot be redeemed in-app for the underlying shares or cash at par. Your ability to exit a position depends on in-Wallet trading and available liquidity.
When you acquire xStocks in the Wallet, the tokens are held on a custodial basis for your account. You must follow our security practices; unauthorized access to your account may result in loss.
External deposits to, or withdrawals of, xStocks are not supported. xStocks are available exclusively for in-Wallet trading and holding. You cannot transfer xStocks to an external address or another platform.
Your sole method to dispose of xStocks is to sell them within the Crypto Wallet. We do not offer redemption of xStocks for the underlying shares.
Platform trading fees, spreads and other charges apply as disclosed at trade time.
We may pause, restrict or disable in-Wallet trading of xStocks (in whole or for specific instruments) due to maintenance, risk controls, corporate actions, market conditions, issuer instructions, or legal/regulatory reasons. During a suspension you may be unable to sell your xStocks. Where feasible, we will communicate material changes in-app or on our website.
We do not provide brokerage services, custody of underlying securities, or clearing. xStocks in the Wallet are a custodial digital product, not a brokerage account or securities deposit.
You may use xStocks only for lawful purposes and in accordance with these Terms. All usage of xStocks must also comply with the acceptable use provisions and prohibited activities set forth in our main User Agreement. It is strictly forbidden to use xStocks in any manner that violates applicable laws or regulations, including securities, commodities, or financial services laws.
You must not misrepresent your identity or intent when using xStocks. This includes refraining from using bots or automated means to trade in violation of our platform rules, and not exploiting any bugs or loopholes for unfair gain. If you accidentally discover a flaw in our xStocks system, you should report it and not capitalize on it. Any form of system abuse or fraud will result in account action and potential legal consequences.
The Issuer of xStocks may have its own terms or prospectus governing the tokens. While those are an agreement between you and the Issuer (not us), you should familiarize yourself with any such terms. If any of your actions cause us to violate the Issuer's requirements (for instance, causing us to breach a limit imposed by the Issuer), we reserve the right to take appropriate measures, including reversing transactions or restricting your access, to maintain compliance.
We reserve the right, at our sole discretion, to refuse to execute any xStocks transaction or to disable your ability to trade xStocks, if we believe that processing the transaction or your continued use of xStocks would violate these Terms, our policies, or any law or regulation. We may also refuse or cancel orders if we detect anomalous or potentially manipulative trading behavior, obvious errors in pricing, or other conditions that warrant intervention. We shall not be liable for any losses you incur due to a transaction refusal or cancellation, provided we acted in good faith on our discretion.
We may modify or discontinue the xStocks service (or certain aspects of it) at any time. We may delist particular xStock tokens, for example, if the Issuer stops supporting them or if the underlying stock is no longer available or becomes too risky. In the event of a delisting or discontinuation, we will endeavor to provide you with notice and an opportunity to sell or withdraw your xStocks before such event, but there may be cases (e.g., regulatory orders) where we must act immediately without notice. If we delist an xStock and you do not sell or withdraw in time, we may, at our discretion, attempt to convert your remaining xStock holdings into an equivalent value of another asset to credit to your account. However, we are not obligated to do so, and if conversion is not feasible, we may hold the asset for you until you provide a withdrawal address or otherwise make it available as permitted. We are not liable for any difference between the conversion value and your original purchase cost, or for any inability to trade the xStock once delisted. Wallet may also modify, restrict, or discontinue the availability of xStocks in specific jurisdictions at any time and without prior notice.
The xStocks service (and all related information and tools) is provided on an "as is" and "as available" basis to the maximum extent permitted by law. We and our affiliates, and our respective officers, directors, employees and agents, make no warranties or representations of any kind, whether express, implied, or statutory, regarding the xStocks product. This includes, without limitation, no warranty that: (a) xStocks will meet your expectations of returns; (b) the service will be uninterrupted, timely, secure, or error-free; (c) the price data presented will always be accurate or current; or (d) any particular outcome can be achieved by trading xStocks. All warranties of merchantability, fitness for a particular purpose, and non-infringement are expressly disclaimed.
For the avoidance of doubt, we do not provide investment advice or any form of advice to you. Any educational materials, market analysis, or descriptions of xStocks are provided solely for informational purposes and should not be construed as a recommendation to buy or sell any asset. You are solely responsible for all trading and investment decisions you make. If you require advice, you should consult with professional advisors outside of our service. Nothing in these Terms or on our platform constitutes an offer to sell or the solicitation of an offer to buy any security or financial instrument in any jurisdiction where it is unlawful.
We are not responsible or liable for the Issuer's actions or omissions. We do not guarantee that the Issuer will maintain the backing of xStocks or that it will fulfill any redemption or other obligations. We do not control or audit the underlying custody of shares, and we rely on the Issuer and its custodians for the integrity of the product. You bear the risk of the Issuer's performance. Any dispute or issue regarding the underlying collateral or redemption of tokens is between you and the Issuer. Likewise, we are not responsible for the underlying companies whose stocks are being tracked, and we make no representation regarding those companies' performance or actions.
To the fullest extent permitted by law, in no event shall we or our affiliates be liable for any indirect, incidental, special, consequential, or exemplary damages arising out of or in connection with your use of xStocks or these Terms, whether under contract, tort (including negligence), statute, or any other theory of liability (even if we have been advised of the possibility of such damages). This exclusion of liability includes, without limitation, any lost profits, lost data, loss of goodwill, trading losses, or the cost of procurement of substitute goods or services. Additionally, we shall not be liable for any loss or damage resulting from any of the following:
In any case, our total aggregate liability to you for any claim arising out of or relating to xStocks shall not exceed the fees you have paid to us for xStocks-related services in the 12 months preceding the event giving rise to the claim. Nothing in these Terms shall limit or exclude liability for gross negligence, fraud, or intentional misconduct on our part, or any liability that cannot be excluded or limited under applicable law.
We do not guarantee that the xStocks service will be available at all times or at any particular time. Downtime, whether due to maintenance or failures, may occur. Access to the xStocks feature is not guaranteed, and trading mechanisms (order matching, etc.) may be subject to capacity limits. You accept that system outages or rate limits might prevent execution of orders at desired prices. We will not be responsible for any perceived opportunity losses due to system unavailability or lag, absent demonstrable gross negligence on our part.
We want to reiterate that xStocks are not bank deposits, not insured, and not guaranteed by any government. They are not "stocks" in the traditional sense, and you should not equate them with direct stock ownership. Regulatory status of xStocks varies; in some places they might not be considered legal securities, meaning investor protections under securities law might not apply to you. We explicitly disclaim any representation that xStocks are or are not securities – they are offered under an understanding that Users in eligible jurisdictions are permitted to access them, but it is your responsibility to abide by local laws. By using the product, you acknowledge that no regulatory authority has evaluated or approved xStocks and that engaging in this product could involve regulatory risk to you (as described above in Section 3.7).
You agree to indemnify and hold harmless us, our affiliates, and our and their respective officers, directors, employees, and agents, from and against any and all claims, losses, liabilities, damages, costs, or expenses (including reasonable attorneys' fees) arising out of or related to: (a) your breach of these Terms or violation of any applicable law or regulation in connection with your use of xStocks; (b) your violation of any rights of any third party (including the Issuer or other users) in the course of using xStocks; or (c) any fraud, negligence or willful misconduct by you. This indemnity survives the termination of these Terms.
Nothing in these Terms shall be deemed or is intended to be deemed, nor shall it cause, either party (us or you) to be treated as partners, joint venturers, or as the agent of the other. We are providing a service to you as an independent counterparty (and service provider), and we are not your fiduciary. You agree that we have no fiduciary duty to you and no liability for any alleged breach of fiduciary duty.
To the extent permissible by law, any disputes shall be resolved on an individual basis only, and you shall not have the right to bring a claim as a plaintiff or class member in a class, consolidated, or representative action. The arbitrator or court (as applicable) may not consolidate more than one person's claims or otherwise preside over any form of a representative or class proceeding.
If any provision of these Terms (or portion thereof) is found to be invalid or unenforceable under applicable law, that provision shall be enforced to the maximum extent permissible, and the remainder of these Terms shall continue in full force and effect.
We reserve the right to amend or update these Terms from time to time. Any changes will be posted through the Wallet interface or our website, and the "Last Updated" date at the top will be revised. Except as required by law, updated Terms will be effective when posted. Your continued use of xStocks after the effective date of the updated Terms constitutes your acceptance of the changes. If you do not agree to the revised Terms, you must stop using the xStocks service before the changes take effect and, if necessary, close out your xStocks positions.
These xStocks Terms, together with the Wallet main User Agreement and any other policies or supplementary terms expressly incorporated by reference, constitute the entire agreement between you and us regarding the xStocks product and supersede any prior discussions or agreements on the subject. In the event of a conflict between these Terms and the main User Agreement with respect to the xStocks service, these Terms shall control for all matters specific to xStocks.
By accessing or using xStocks, you acknowledge that you have read, understood, and agreed to all of the above terms and conditions. If you have any questions or require clarification about these Terms, please contact our support before proceeding. Trading in xStocks implies acceptance of and adherence to these Terms in full.