Terms and Conditions
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1: Introduction, Legal Effect, and Acceptance
These Terms and Conditions (the “Terms”) constitute a legally binding agreement between you (“Member”, “User”, “you”, or “your”) and The LifeDAO ("The LifeDAO", "TLD", "we", "us", or "our"), governing your access to and use of the The LifeDAO Savings Vault (the “Savings Vault”).
By accessing, registering for, depositing into, withdrawing from, or otherwise interacting with the Savings Vault or any related smart contracts, interfaces, or services, you expressly acknowledge that:
You have read these Terms in full;
You understand their legal consequences;
You accept them voluntarily and without reservation.
If you do not agree to these Terms, you must immediately discontinue use of the Savings Vault.
The Savings Vault is not a bank account, not a deposit-taking service, not an investment fund, not a collective investment scheme, and not a regulated financial product in any jurisdiction.
For further information about the Savings Vault, please refer to the whitepaper using the link below.
2: Definitions and Interpretation
For purposes of these Terms:
“Savings Vault” means the non-custodial, smart contract–based savings mechanism operated within The LifeDAO ecosystem.
“Stablecoin” means a digital token designed to maintain a relatively stable value, typically pegged to a fiat currency.
“USDC” means USD Coin, a fiat-referenced stablecoin issued by Circle.
“Yield” means variable, non-guaranteed returns derived exclusively from decentralized liquidity provisioning and trading fees.
“Community Fund” means the protocol-designated pool receiving a portion of gross yield for ecosystem and member benefit.
“Protocol Provider” means Takadao, responsible for development and maintenance of the Savings Vault smart contracts.
“Smart Contracts” means immutable blockchain-based code governing deposits, withdrawals, allocation, and rebalancing.
“DeFi Protocols” means decentralized exchanges and liquidity infrastructure such as Uniswap V3 and future versions.
3: Nature, Purpose, and Scope of the Savings Vault
3.1 Core Purpose
The Savings Vault is designed to provide Members with a digital savings facility intended for short-term and medium-term liquidity needs, enabling Members to hold stable-value digital assets while potentially earning modest, variable yield.
The Savings Vault prioritizes:
Capital preservation over speculation
Continuous accessibility over lockups
Transparency over opacity
Self-custody over institutional control
3.2 Explicit Non-Investment Character
The Savings Vault is savings-oriented, not an investment product. Members expressly acknowledge that:
Principal is not guaranteed
Yield is not fixed or promised
No appreciation expectation exists beyond fee-based accrual
The Savings Vault must not be used as a speculative or leveraged investment vehicle.
4: Eligibility, Membership and Access
4.1 Eligibility
You may use the Savings Vault only if you:
Are legally permitted to use decentralized financial protocols in your jurisdiction
Are not subject to sanctions or prohibitions
Have full legal capacity
Are a Member of The LifeDAO ecosystem
The LifeDAO does not assess or monitor jurisdictional legality.
4.2 Identity, Accounts, and KYC
The Savings Vault itself is non-custodial and does not require Know-Your-Customer (KYC). However, access may be linked to:
An email address
Authentication credentials
Optional KYC data provided for other The LifeDAO services (e.g., Life Protection, LifeCard)
Loss or compromise of access credentials may result in delayed or permanently lost access.
5: Deposits
5.1 Supported Assets
At launch, the Savings Vault supports USDC. Additional stablecoins may be supported in the future at The LifeDAO’s discretion.
Deposits of unsupported assets may be irretrievably lost.
5.2 Deposit Mechanics
Upon deposit:
Funds are transferred directly to Smart Contracts
Ownership remains exclusively with the Member
Funds may be allocated to USDC/USDT liquidity pools
All deposits are irreversible once confirmed on-chain. However, deposited amounts may be withdrawn by the Member in accordance with these Terms, subject to smart contract execution, liquidity availability, and blockchain conditions.
6: Yield Generation
6.1 Source of Yield
Yield is generated solely from liquidity provision fees earned when third parties swap stablecoins (e.g., USDC/USDT) on decentralized exchanges such as Uniswap.
No interest, lending, leverage, or debt-based activity is involved.
6.2 Yield Characteristics
Yield:
Is variable and market-dependent
May fluctuate daily
May be materially lower than target ranges
May temporarily be zero
Any reference to 4–6% APY is indicative only, non-binding, and does not constitute a guaranteed, fixed rate of return.
7: Yield Allocation and Community Share
7.1 Basic Structure: Mudarabah Contract (Pre‑Agreed Ratio)
The Savings Vault operates on a Mudarabah contractual structure, whereby Members act as the capital providers (Rab‑ul‑Maal) and The LifeDAO, through its protocol design and operational governance, facilitates the deployment and management of such capital (Mudarib) via Smart Contracts.
Under this structure, any yield generated is distributed according to a pre‑agreed profit‑sharing ratio, as follows:
From gross yield generated by the Savings Vault:
A variable portion of the gross yield (which may be higher or lower than 80%) is allocated proportionally to Members (Rab-ul-Maal) as profit share, depending on the applicable Member tier and the corresponding profit-sharing ratio in effect at the time of yield distribution.
Between 0% and 20% is allocated to the Community Fund as the Mudarib’s share, depending on the applicable Member tier. The exact profit-sharing ratio applicable to a Member may therefore vary based on tier classification as defined by The LifeDAO from time to time.
This ratio is applied programmatically at the protocol level and does not represent interest, a fixed return, or a guaranteed outcome.
Losses, if any, arising from protocol activity, market conditions, or operational risks are borne by the capital providers, except in cases of proven misconduct or breach of mandate, in accordance with general Mudarabah principles.
7.2 Community Fund
The Community Fund is a protocol-level pool established by The LifeDAO, funded through a portion of gross yield generated by the Savings Vault under the Mudarabah structure. The Community Fund is intended to support the long-term sustainability, resilience, and growth of The LifeDAO ecosystem, including but not limited to protocol development, security audits, operational costs, ecosystem incentives, and Member-benefit initiatives, as described in the Savings Vault whitepaper and related disclosures.
Community Fund assets:
Are not Member deposits
Are not withdrawable by individual Members
May be redistributed according to governance decisions
9: Rebalancing and Operational Phases
9.1 Liquidity Deployment
Funds are deployed into concentrated liquidity pools (e.g., Uniswap V3) within predefined price ranges.
9.2 Rebalancing
Rebalancing may occur when positions fall outside their active range for a sustained period. Phase 1 rebalancing includes:
Time-based triggers
TWAP-based range selection
Multisignature approval
9.3 Phased Implementation
Phase 1: Manual rebalancing with multisig safeguards
Phase 2: Increased algorithmic automation
Operational changes do not affect Member withdrawal rights.
10: Emergency Procedures
In exceptional circumstances, The LifeDAO may:
Pause non-essential operations
Delay rebalancing
Restrict new deposits
Emergency actions prioritize fund safety and do not transfer ownership or control of Member assets.
11: Risks and Acknowledgements
Members expressly accept all risks, including but not limited to:
Smart contract vulnerabilities
Stablecoin depegging
DeFi protocol failure
Liquidity stress
Regulatory change
Blockchain disruption
Members further acknowledge the risk of impermanent loss arising from the nature of decentralized liquidity provisioning; while such risk is expected to be low due to the use of stablecoin pairs, it may nevertheless result in reduced returns or capital impact under certain market conditions.
Audits reduce, but do not eliminate risk.
12: Non-Custodial Structure
The Savings Vault is strictly non-custodial. The LifeDAO:
Cannot access Member funds
Cannot reverse transactions
13: Shariah and Ethical Alignment
The Savings Vault is structured to avoid:
Riba (interest)
Gharar (excessive uncertainty)
Maysir (gambling)
Yield arises from real economic activity. For further information regarding the Shariah alignment and compliance considerations of the Savings Vault, Members are encouraged to review the dedicated Shariah paper & Whitepaper made available by The LifeDAO via the link provided on its official website or application interface.
14: Taxes and Legal Compliance
Members are solely responsible for:
Tax assessment and reporting
Legal compliance in their jurisdiction
The LifeDAO provides no tax advice or reporting.
15: Disclaimers, No Warranty and Limitation of Liability
To the fullest extent permitted by law, The LifeDAO, Takadao, and affiliates shall not be liable for any loss, including loss of funds or opportunity.
18: Governing Law, Legal Structure and Dispute Resolution
Prior to initiating any legal action in a court of law, Members and The LifeDAO agree to attempt to resolve any dispute, claim, or controversy arising from or relating to these Terms or the Savings Vault in good faith through arbitration. Such arbitration shall be conducted by a mutually agreed-upon arbitrator or, if the parties cannot agree, by an arbitrator appointed in accordance with the rules of a recognized arbitration institution. The arbitration shall take place virtually or at a mutually convenient location, and the decision of the arbitrator shall be final, binding, and enforceable in any court of competent jurisdiction.
These Terms, and any dispute, claim, or controversy arising out of or relating to them, the Savings Vault, or any related services, shall be governed by and construed in accordance with the general principles of contract law, supplemented, where applicable, by the laws of the State of Delaware, United States of America, without regard to its conflict of laws principles.
The LifeDAO is structured as a United States–based association, organized and operating in alignment with applicable Delaware legal frameworks for unincorporated associations and decentralized organizations. Nothing in these Terms shall be construed as creating a partnership, joint venture, fiduciary relationship, or agency relationship between Members and The LifeDAO.
Members acknowledge and agree that the decentralized nature of The LifeDAO means that certain activities are executed through autonomous Smart Contracts and community governance rather than a single centralized legal entity, and that enforcement of rights may differ from traditional centralized service providers.
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