Terms of Service

Welcome to the SL Capital Exchange!

1. Your relationship with SL Capital Exchange
1.1 Your use of CAPEX’s products, software, services and web sites (referred to collectively as the “Services” in this document and excluding any services provided to you by CAPEX under a separate written agreement) is subject to the terms of a legal agreement between you and CAPEX. “CAPEX” means SL Capital Exchange, whose principal place of business is in the virtual world of Second Life. This document explains how the agreement is made up, and sets out some of the terms of that agreement.
1.2 Unless otherwise agreed in writing with CAPEX, your agreement with CAPEX will always include, at a minimum, the terms and conditions set out in this document. These are referred to below as the “Universal Terms”.
1.3 Your agreement with CAPEX will also include the terms of any Legal Notices applicable to the Services, in addition to the Universal Terms. All of these are referred to below as the “Additional Terms”. Where Additional Terms apply to a Service, these will be accessible for you to read either within, or through your use of, that Service.
1.4 The Universal Terms, together with the Additional Terms, form a legally binding agreement between you and CAPEX in relation to your use of the Services. It is important that you take the time to read them carefully. Collectively, this legal agreement is referred to below as the “Terms”.
1.5 If there is any contradiction between what the Additional Terms say and what the Universal Terms say, then the Additional Terms shall take precedence in relation to that Service.

2. Accepting the Terms
2.1 In order to use the Services, you must first agree to the Terms. You may not use the Services if you do not accept the Terms.
2.2 You can accept the Terms by:
(A) clicking or otherwise entering a command to accept or agree to the Terms, where this option is made available to you by CAPEX in the user interface for any Service; or
(B) by actually using the Services. In this case, you understand and agree that CAPEX will treat your use of the Services as acceptance of the Terms from that point onwards.
2.3 You may not use the Services and may not accept the Terms if (a) you are not of legal age to form a binding contract with CAPEX, or (b) you are a person barred from receiving the Services under the laws of the United States or other countries including the country in which you are resident or from which you use the Services.
2.4 Before you continue, you should print off or save a local copy of the Universal Terms for your records.

3. Language of the Terms
3.1 Where CAPEX has provided you with a translation of the English language version of the Terms, then you agree that the translation is provided for your convenience only and that the English language versions of the Terms will govern your relationship with CAPEX.
3.2 If there is any contradiction between what the English language version of the Terms says and what a translation says, then the English language version shall take precedence.

4. Provision of the Services by CAPEX
4.1 CAPEX works with companies and individuals around the world (“Subsidiaries and Affiliates”) to provide you with the Services. Sometimes, these companies will be providing the Services to you on behalf of CAPEX itself. You acknowledge and agree that Subsidiaries and Affiliates will be entitled to provide the Services to you.
4.2 CAPEX is constantly innovating in order to provide the best possible experience for its users. You acknowledge and agree that the form and nature of the Services which CAPEX provides may change from time to time without prior notice to you.
4.3 As part of this continuing innovation, you acknowledge and agree that CAPEX may stop (permanently or temporarily) providing the Services (or any features within the Services) to you or to users generally at CAPEX’s sole discretion, without prior notice to you. You may stop using the Services at any time. You do not need to specifically inform CAPEX when you stop using the Services.
4.4 You acknowledge and agree that if CAPEX disables access to your account, you may be prevented from accessing the Services, your account details or any files or other content which is contained in your account.
4.5 You acknowledge and agree that while CAPEX may not currently have set a fixed upper limit on the number of transmissions you may send or receive through the Services or on the amount of storage space used for the provision of any Service, such fixed upper limits may be set by CAPEX at any time, at CAPEX’s discretion.

5. Use of the Services by you
5.1 In order to access certain Services, you may be required to provide information about yourself (such as identification or contact details, or the name of your Second Life avatar) as part of the registration process for the Service, or as part of your continued use of the Services. You agree that any registration information you give to CAPEX will always be accurate, correct and up to date.
5.2 You agree to use the Services only for purposes that are permitted by (a) the Terms and (b) any applicable law, regulation or generally accepted practices or guidelines in the relevant jurisdictions (including any laws regarding the export of data or software to and from the United States or other relevant countries).
5.3 You agree not to access (or attempt to access) any of the Services by any means other than through the interface that is provided by CAPEX, unless you have been specifically allowed to do so in a separate agreement with CAPEX. You specifically agree not to access (or attempt to access) any of the Services through any automated means (including use of scripts or web crawlers) except where these Services have been specifically provided for you to do so, and shall ensure that you comply with the instructions set out in any robots.txt file present on the Services. Some specific cases in which automated means may be used to access the Services are outlined in “Automated Access”.
5.4 You agree that you will not engage in any activity that interferes with or disrupts the Services (or the servers and networks that are connected to the Services).
5.5 Unless you have been specifically permitted to do so in a separate agreement with CAPEX, you agree that you will not reproduce, duplicate, copy, sell, trade or resell the Services for any purpose.
5.6 You agree that you are solely responsible for (and that CAPEX has no responsibility to you or to any third party for) any breach of your obligations under the Terms and for the consequences (including any loss or damage which CAPEX may suffer) of any such breach.

6. Your passwords and account security
6.1 You agree and understand that you are responsible for maintaining the confidentiality of passwords associated with any account you use to access the Services.
6.2 Accordingly, you agree that you will be solely responsible to CAPEX for all activities that occur under your account.
6.3 If you become aware of any unauthorised use of your password or of your account, you agree to immediately proceed to the ATM at the CAPEX exchange building, reset your password, and notify CAPEX immediately by contacting Arbitrage Wise or writing a support ticket at www.slcapex.com.

7. Privacy and your personal information
7.1 For information about CAPEX’s data protection practices, please read CAPEX’s privacy policy at www.slcapex.com. This policy explains how CAPEX treats your personal information, and protects your privacy, when you use the Services.
7.2 You agree to the use of your data in accordance with CAPEX’s privacy policies.

8. Content in the Services
8.1 You understand that all information (such as data files, written text, computer software, music, audio files or other sounds, photographs, videos or other images) which you may have access to as part of, or through your use of, the Services are the sole responsibility of the person from which such content originated. All such information is referred to below as the “Content”.
8.2 You should be aware that Content presented to you as part of the Services, including but not limited to advertisements in the Services and sponsored Content within the Services may be protected by intellectual property rights which are owned by the sponsors or advertisers who provide that Content to CAPEX (or by other persons or companies on their behalf). You may not modify, rent, lease, loan, sell, distribute or create derivative works based on this Content (either in whole or in part) unless you have been specifically told that you may do so by CAPEX or by the owners of that Content, in a separate agreement.
8.3 CAPEX reserves the right (but shall have no obligation) to pre-screen, review, flag, filter, modify, refuse or remove any or all Content from any Service.
8.4 You understand that by using the Services to purchase shares in virtual companies, you may be exposed to the possibility of losing your investment. You use the Services at your own risk. See “Risks”.
8.5 You agree that you are solely responsible for (and that CAPEX has no responsibility to you or to any third party for) any Content that you create, transmit or display while using the Services and for the consequences of your actions (including any loss or damage which CAPEX may suffer) by doing so.

9. Proprietary rights
9.1 You acknowledge and agree that CAPEX (or CAPEX’s licensors) own all legal right, title and interest in and to the Services, including any intellectual property rights which subsist in the Services (whether those rights happen to be registered or not, and wherever in the world those rights may exist). You further acknowledge that the Services may contain information which is designated confidential by CAPEX and that you shall not disclose such information without CAPEX’s prior written consent.
9.2 Unless you have agreed otherwise in writing with CAPEX, nothing in the Terms gives you a right to use any of CAPEX’s trade names, trade marks, service marks, logos, domain names, and other distinctive brand features.
9.3 If you have been given an explicit right to use any of these brand features in a separate written agreement with CAPEX, then you agree that your use of such features shall be in compliance with that agreement, any applicable provisions of the Terms, and CAPEX's brand feature use guidelines as updated from time to time.
9.4 Other than the limited license set forth in Section 11, CAPEX acknowledges and agrees that it obtains no right, title or interest from you (or your licensors) under these Terms in or to any Content that you submit, post, transmit or display on, or through, the Services, including any intellectual property rights which subsist in that Content (whether those rights happen to be registered or not, and wherever in the world those rights may exist). Unless you have agreed otherwise in writing with CAPEX, you agree that you are responsible for protecting and enforcing those rights and that CAPEX has no obligation to do so on your behalf.
9.5 You agree that you shall not remove, obscure, or alter any proprietary rights notices (including copyright and trade mark notices) which may be affixed to or contained within the Services.
9.6 Unless you have been expressly authorised to do so in writing by CAPEX, you agree that in using the Services, you will not use any trade mark, service mark, trade name, logo of any company or organisation in a way that is likely or intended to cause confusion about the owner or authorised user of such marks, names or logos.

10. Licence from CAPEX
10.1 CAPEX gives you a personal, worldwide, royalty-free, non-assignable and non-exclusive licence to use the software provided to you by CAPEX as part of the Services as provided to you by CAPEX (referred to as the “Software” below). This licence is for the sole purpose of enabling you to use and enjoy the benefit of the Services as provided by CAPEX, in the manner permitted by the Terms.
10.2 You may not (and you may not permit anyone else to) copy, modify, create a derivative work of, reverse engineer, decompile or otherwise attempt to extract the source code of the Software or any part thereof, unless this is expressly permitted or required by law, or unless you have been specifically told that you may do so by CAPEX, in writing.
10.3 Unless CAPEX has given you specific written permission to do so, you may not assign (or grant a sub-licence of) your rights to use the Software, grant a security interest in or over your rights to use the Software, or otherwise transfer any part of your rights to use the Software. Some specific cases in which you may license another party to access the Services on your behalf are outlined in “Automated Access”.
11. Content licence from you
11.1 You retain copyright and any other rights you already hold in Content which you submit, post or display on or through, the Services. By submitting, posting or displaying the content you give CAPEX a perpetual, irrevocable, worldwide, royalty-free, and non-exclusive licence to reproduce, adapt, modify, translate, publish, publicly perform, publicly display and distribute any Content which you submit, post or display on or through, the Services. This licence is for the sole purpose of enabling CAPEX to display, distribute and promote the Services and may be revoked for certain Services as defined in the Additional Terms of those Services.
11.2 You agree that this licence includes a right for CAPEX to make such Content available to other companies, organizations or individuals with whom CAPEX has relationships for the provision of syndicated services, and to use such Content in connection with the provision of those services.
11.3 You understand that CAPEX, in performing the required technical steps to provide the Services to our users, may (a) transmit or distribute your Content over various public networks and in various media; and (b) make such changes to your Content as are necessary to conform and adapt that Content to the technical requirements of connecting networks, devices, services or media. You agree that this licence shall permit CAPEX to take these actions.
11.4 You confirm and warrant to CAPEX that you have all the rights, power and authority necessary to grant the above licence.

12. Software updates
12.1 The Software which you use may automatically download and install updates from time to time from CAPEX. These updates are designed to improve, enhance and further develop the Services and may take the form of bug fixes, enhanced functions, new software modules and completely new versions. You agree to receive such updates (and permit CAPEX to deliver these to you) as part of your use of the Services.
13. Ending your relationship with CAPEX
13.1 The Terms will continue to apply until terminated by either you or CAPEX as set out below.
13.2 If you want to terminate your legal agreement with CAPEX, you may do so by (a) notifying CAPEX at any time and (b) closing your accounts for all of the Services which you use, where CAPEX has made this option available to you. Your notice should be sent to Arbitrage Wise.
13.3 CAPEX may at any time, terminate its legal agreement with you if:
(A) you have breached any provision of the Terms (or have acted in manner which clearly shows that you do not intend to, or are unable to comply with the provisions of the Terms); or
(B) CAPEX is required to do so by law (for example, where the provision of the Services to you is, or becomes, unlawful); or
(C) the partner with whom CAPEX offered the Services to you has terminated its relationship with CAPEX or ceased to offer the Services to you; or
(D) CAPEX is transitioning to no longer providing the Services to users in the country in which you are resident or from which you use the service; or
(E) the provision of the Services to you by CAPEX is, in CAPEX’s opinion, no longer commercially viable.
13.4 Nothing in this Section shall affect CAPEX’s rights regarding provision of Services under Section 4 of the Terms.
13.5 When these Terms come to an end, all of the legal rights, obligations and liabilities that you and CAPEX have benefited from, been subject to (or which have accrued over time whilst the Terms have been in force) or which are expressed to continue indefinitely, shall be unaffected by this cessation, and the provisions of paragraph 20.7 shall continue to apply to such rights, obligations and liabilities indefinitely.

14. EXCLUSION OF WARRANTIES
14.1 NOTHING IN THESE TERMS, INCLUDING SECTIONS 14 AND 15, SHALL EXCLUDE OR LIMIT CAPEX’S WARRANTY OR LIABILITY FOR LOSSES WHICH MAY NOT BE LAWFULLY EXCLUDED OR LIMITED BY APPLICABLE LAW. SOME JURISDICTIONS DO NOT ALLOW THE EXCLUSION OF CERTAIN WARRANTIES OR CONDITIONS OR THE LIMITATION OR EXCLUSION OF LIABILITY FOR LOSS OR DAMAGE CAUSED BY NEGLIGENCE, BREACH OF CONTRACT OR BREACH OF IMPLIED TERMS, OR INCIDENTAL OR CONSEQUENTIAL DAMAGES. ACCORDINGLY, ONLY THE LIMITATIONS WHICH ARE LAWFUL IN YOUR JURISDICTION WILL APPLY TO YOU AND OUR LIABILITY WILL BE LIMITED TO THE MAXIMUM EXTENT PERMITTED BY LAW.
14.2 YOU EXPRESSLY UNDERSTAND AND AGREE THAT YOUR USE OF THE SERVICES IS AT YOUR SOLE RISK AND THAT THE SERVICES ARE PROVIDED "AS IS" AND “AS AVAILABLE.”
14.3 IN PARTICULAR, CAPEX, ITS SUBSIDIARIES AND AFFILIATES, AND ITS LICENSORS DO NOT REPRESENT OR WARRANT TO YOU THAT:
(A) YOUR USE OF THE SERVICES WILL MEET YOUR REQUIREMENTS,
(B) YOUR USE OF THE SERVICES WILL BE UNINTERRUPTED, TIMELY, SECURE OR FREE FROM ERROR,
(C) ANY INFORMATION OBTAINED BY YOU AS A RESULT OF YOUR USE OF THE SERVICES WILL BE ACCURATE OR RELIABLE, AND
(D) THAT DEFECTS IN THE OPERATION OR FUNCTIONALITY OF ANY SOFTWARE PROVIDED TO YOU AS PART OF THE SERVICES WILL BE CORRECTED.
14.4 ANY MATERIAL DOWNLOADED OR OTHERWISE OBTAINED THROUGH THE USE OF THE SERVICES IS DONE AT YOUR OWN DISCRETION AND RISK AND THAT YOU WILL BE SOLELY RESPONSIBLE FOR ANY DAMAGE TO YOUR COMPUTER SYSTEM OR OTHER DEVICE OR LOSS OF DATA THAT RESULTS FROM THE DOWNLOAD OF ANY SUCH MATERIAL.
14.5 NO ADVICE OR INFORMATION, WHETHER ORAL OR WRITTEN, OBTAINED BY YOU FROM CAPEX OR THROUGH OR FROM THE SERVICES SHALL CREATE ANY WARRANTY NOT EXPRESSLY STATED IN THE TERMS.
14.6 CAPEX FURTHER EXPRESSLY DISCLAIMS ALL WARRANTIES AND CONDITIONS OF ANY KIND, WHETHER EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO THE IMPLIED WARRANTIES AND CONDITIONS OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NON-INFRINGEMENT.

15. LIMITATION OF LIABILITY
15.1 SUBJECT TO OVERALL PROVISION IN PARAGRAPH 14.1 ABOVE, YOU EXPRESSLY UNDERSTAND AND AGREE THAT CAPEX, ITS SUBSIDIARIES AND AFFILIATES, AND ITS LICENSORS SHALL NOT BE LIABLE TO YOU FOR:
(A) ANY DIRECT, INDIRECT, INCIDENTAL, SPECIAL CONSEQUENTIAL OR EXEMPLARY DAMAGES WHICH MAY BE INCURRED BY YOU, HOWEVER CAUSED AND UNDER ANY THEORY OF LIABILITY. THIS SHALL INCLUDE, BUT NOT BE LIMITED TO, ANY LOSS OF PROFIT (WHETHER INCURRED DIRECTLY OR INDIRECTLY), ANY LOSS OF GOODWILL OR BUSINESS REPUTATION, ANY LOSS OF DATA SUFFERED, COST OF PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES, OR OTHER INTANGIBLE LOSS;
(B) ANY LOSS OR DAMAGE WHICH MAY BE INCURRED BY YOU, INCLUDING BUT NOT LIMITED TO LOSS OR DAMAGEAS A RESULT OF:
(I) ANY RELIANCE PLACED BY YOU ON THE COMPLETENESS, ACCURACY OR EXISTENCE OF ANY ADVERTISING, OR AS A RESULT OF ANY RELATIONSHIP OR TRANSACTION BETWEEN YOU AND ANY ADVERTISER OR SPONSOR WHOSE ADVERTISING APPEARS ON THE SERVICES;
(II) ANY CHANGES WHICH CAPEX MAY MAKE TO THE SERVICES, OR FOR ANY PERMANENT OR TEMPORARY CESSATION IN THE PROVISION OF THE SERVICES (OR ANY FEATURES WITHIN THE SERVICES);
(III) THE DELETION OF, CORRUPTION OF, OR FAILURE TO STORE, ANY CONTENT AND OTHER COMMUNICATIONS DATA MAINTAINED OR TRANSMITTED BY OR THROUGH YOUR USE OF THE SERVICES;
(III) YOUR FAILURE TO PROVIDE CAPEX WITH ACCURATE ACCOUNT INFORMATION;
(IV) YOUR FAILURE TO KEEP YOUR PASSWORD OR ACCOUNT DETAILS SECURE AND CONFIDENTIAL;
15.2 THE LIMITATIONS ON CAPEX’S LIABILITY TO YOU IN PARAGRAPH 15.1 ABOVE SHALL APPLY WHETHER OR NOT CAPEX HAS BEEN ADVISED OF OR SHOULD HAVE BEEN AWARE OF THE POSSIBILITY OF ANY SUCH LOSSES ARISING.

16. Copyright and trade mark policies
16.1 It is CAPEX’s policy to respond to notices of alleged copyright infringement that comply with applicable international intellectual property law (including, in the United States, the Digital Millennium Copyright Act) and to terminate the accounts of repeat infringers.

17. Advertisements
17.1 Some of the Services may, at some time in the future, be supported by advertising revenue and may display advertisements and promotions. These advertisements may be targeted to the content of information stored on the Services, queries made through the Services or other information.
17.2 The manner, mode and extent of advertising by CAPEX on the Services are subject to change without specific notice to you.
17.3 In consideration for CAPEX granting you access to and use of the Services, you agree that CAPEX may place such advertising on the Services.

18. Other content
18.1 The Services may include hyperlinks to other web sites or content or resources. CAPEX may have no control over any web sites or resources which are provided by companies or persons other than CAPEX.
18.2 You acknowledge and agree that CAPEX is not responsible for the availability of any such external sites or resources, and does not endorse any advertising, products or other materials on or available from such web sites or resources.
18.3 You acknowledge and agree that CAPEX is not liable for any loss or damage which may be incurred by you as a result of the availability of those external sites or resources, or as a result of any reliance placed by you on the completeness, accuracy or existence of any advertising, products or other materials on, or available from, such web sites or resources.

19. Changes to the Terms
19.1 CAPEX may make changes to the Universal Terms or Additional Terms from time to time. When these changes are made, CAPEX will make a new copy of the Universal Terms available at www.slcapex.com and any new Additional Terms will be made available to you from within, or through, the affected Services.
19.2 You understand and agree that if you use the Services after the date on which the Universal Terms or Additional Terms have changed, CAPEX will treat your use as acceptance of the updated Universal Terms or Additional Terms.

20. General legal terms
20.1 Sometimes when you use the Services, you may (as a result of, or through your use of the Services) use a service or download a piece of software, or purchase goods, which are provided by another person or company. Your use of these other services, software or goods may be subject to separate terms between you and the company or person concerned. If so, the Terms do not affect your legal relationship with these other companies or individuals.
20.2 The Terms constitute the whole legal agreement between you and CAPEX and govern your use of the Services (but excluding any services which CAPEX may provide to you under a separate written agreement), and completely replace any prior agreements between you and CAPEX in relation to the Services.
20.3 You agree that CAPEX may provide you with notices, including those regarding changes to the Terms, by instant message, group notices, or postings on the Services.
20.4 You agree that if CAPEX does not exercise or enforce any legal right or remedy which is contained in the Terms (or which CAPEX has the benefit of under any applicable law), this will not be taken to be a formal waiver of CAPEX’s rights and that those rights or remedies will still be available to CAPEX.
20.5 If any court of law, having the jurisdiction to decide on this matter, rules that any provision of these Terms is invalid, then that provision will be removed from the Terms without affecting the rest of the Terms. The remaining provisions of the Terms will continue to be valid and enforceable.
20.6 You acknowledge and agree that each member of the group of companies of which CAPEX is the parent shall be third party beneficiaries to the Terms and that such other companies shall be entitled to directly enforce, and rely upon, any provision of the Terms which confers a benefit on (or rights in favor of) them. Other than this, no other person or company shall be third party beneficiaries to the Terms.
20.7 The Terms, and your relationship with CAPEX under the Terms, shall be governed by the laws of the State of New York without regard to its conflict of laws provisions. You and CAPEX agree to submit to the exclusive jurisdiction of the courts located within the county of Onondaga, New York to resolve any legal matter arising from the Terms. Notwithstanding this, you agree that CAPEX shall still be allowed to apply for injunctive remedies (or an equivalent type of urgent legal relief) in any jurisdiction.

21. Automated access
21.1 You are specifically permitted to access any of the Services using in-game HUD applications or third party trading applications.
21.2 You are specifically permitted to assign (or grant a sub-licence of) your rights to use the Software, grant a security interest in or over your rights to use the Software, or otherwise transfer any part of your rights to use the Software to the creators or operators of such applications.

22. Risks
22.1 Any purchase of shares in virtual companies listed on the CAPEX exchange, or other “financial products” offered by CAPEX, is entirely at your own risk. The following statements are provided to educate you regarding possible risks which may affect your trading on the CAPEX exchange or purchase of CAPEX products.
22.2 Linden Dollars. By accepting these terms you indicate your understanding that the Linden Dollar virtual currency does not constitute legal tender in any jurisdiction. It is a product offered by Linden Labs, the operators of Second Life. The value of the Linden Dollar compared to the US Dollar and other real-world currencies is subject to change, and Linden Labs may at any time exercise certain rights that may jeopardise the convertibility of your Linden dollars to US Dollars, including but not limited to termination of or modifications to the Second Life services, or suspension of your account. These rights, when exercised, may also cause the Linden Dollars held in your avatar’s account to lose most or all of their value in US Dollars. Lindex, SL Exchange, or other mechanisms by which Linden Dollars are exchanged for US Dollars are also subject to market risks and their own operators’ rights to modify or suspend those services, or your access to those services. You are instructed to refer to the Linden Labs, SL Exchange, or other Terms of Service for additional information.
22.3 CAPEX securities. By accepting these terms, you indicate your understanding that the shares of virtual companies listed on the CAPEX exchange, or bonds, term deposits, or savings accounts issued by CAPEX, are not registered securities in any jurisdiction. These securities have no value and are subject to no legal restrictions on distribution, market manipulation, insider trading, or any other activity that may cause their value to change.
22.4 The CAPEX exchange. The CAPEX exchange is a game of skill that allows participants to profit from evaluating the performance of companies in the Second Life virtual economy. It is not intended as a gambling or investing tool. By accepting these terms you indicate your understanding that use of the services for gambling or investing purposes is not intended and is done at your own risk.
22.5 Fixed income product risks. CAPEX will endeavour to provide interest in Linden Dollars for the savings accounts, term deposits, and bonds that CAPEX offers, but can make no guarantee that this interest will be provided and is not aware of any legal requirement to honour its agreement to provide interest or repay the principal. You are instructed to purchase third-party insurance to protect the value of these products. CAPEX is not responsible for providing this insurance, and it may or may not currently be possible to obtain. CAPEX itself may be a client of any insurance companies which arise in Second Life, and may hold large investments in securities offered by other companies and insured by the aforementioned insurers. CAPEX’s clients must understand that the collapse of a third-party security heavily owned by CAPEX may result in the bankruptcy of an insurance company which is not adequately prepared to guard against this magnitude of losses, and CAPEX itself, as well as clients who also hold insurance provided by those companies, may still remain at financial risk.
22.6 Catastrophic risks. Companies which violate CAPEX’s terms regarding fair market activities or CAPEX’s fraud policies are subject to trading halts. If a company is halted, and never resumes trading, your shares may lose all value. CAPEX operates an account to compensate shareholders in these circumstances, but it will at best represent a partial repayment of the purchase price of the shares. As corporations in Second Life are not registered in any legal jurisdiction, and technical problems and the Linden Labs Terms of Service prevent us from being able to intervene to compensate shareholders, you indicate your understanding that in the case of a company’s failure you will have no legal recourse. CAPEX encourages you to hold a diversified portfolio with holdings in Linden Dollars, savings accounts, term deposits, and bonds offered by multiple companies to offset the risk of a company defaulting on debt or terminating their operations.
22.7 Company performance. CAPEX can make no guarantees regarding the performance of the officers, directors, employees, or consultants acting on behalf of the companies listed on the CAPEX exchange. CAPEX is not responsible for losses due to inadequate company performance, whether through financial, operations, management, or technical failures. The directors of a Company make financial forecasts, which assume that the demand for financial services will continue to grow in the Second Life market. The Company’s growth depends on its ability to retain its existing customers and attract new customers and the demand for its products and services. If demand does not continue, there may be an adverse effect on the Company’s financial position and performance.
22.8 Economic risks. CAPEX can make no guarantees regarding the Second Life economy and its present or future health. CAPEX wishes to warn customers, in good faith, that savings rates provided by some existing banks are in all probability unsustainable, and will likely fall in the future. CAPEX also wishes to warn customers, in good faith, that Linden Labs is generally responsible for inflation in the Second Life economy, and inflation may occur due to their monetary policy, and result in the value of Linden Dollars diminishing over time. The above two statements are forward-looking statements and the opinion of CAPEX’s directors, and must not be construed as verifiable facts.
22.9 General equity market risks. Any equity market, whether a real world market or a game of skill such as CAPEX, is subject to a broad class of risks related to the volatility of asset prices in the market and the unpredictability of the direction of price movements in the market. CAPEX endeavours to make the CAPEX market as stable and rational as possible, but many events that compromise this stability are outside of our control and rest upon the actions of shareholders. By accepting these terms, you indicate that you accept these risks and understand their nature and potential severity.
22.10 Market power. Large shareholders in companies are subject to considerable advantages on the CAPEX exchange, including being able to create the illusion of strong buying pressure, being able to profit by making a market in a company’s shares, and having access to information that the company’s directors may preferentially release to large shareholders. CAPEX cannot prevent large shareholders from obtaining these advantages through fair purchasing of shares. Large shareholders must also understand that a company may be permitted to make a secondary offer at any time, and in this case the ability of large shareholders to make a market or manipulate the market may be impacted.
22.11 IPO risks. CAPEX takes no responsibility for the truthfulness or completeness of a prospectus provided by a company making an Initial Public Offering (IPO) on CAPEX. Before deciding to purchase shares in a Company’s IPO, you must read and understand the entire prospectus. In particular, you must consider the validity of the claims made by the directors, especially their financial forecasts and assessments of risk factors that could affect the Company’s performance. You should consider these forecasts and risks in light of your own financial situation.
22.12 Execution. The Services may at times be subject to communications problems, or may temporarily be configured in such a way that trades cannot be executed or account balances cannot be withdrawn. Denial of service attacks or other malicious actions by others may also temporarily compromise the capabilities of the exchange. CAPEX strives at all times to prevent these types of situations from occurring, but CAPEX cannot guarantee that the CAPEX is available for trading at all times.
22.13 Communications. Third-party trading applications and in-game HUD applications, as described in “Automated Access”, may be rendered incapable of operating by modifications made to the data feeds provided by the Services, though CAPEX will endeavour to contact known third-party developers before changes are made to avoid interruptions of service. Developers must understand that CAPEX cannot guarantee the format of the feeds will always remain constant, or that they will operate correctly.
22.14 Competition. Although CAPEX may have endeavoured to set prices for its products and services at an affordable level for its customers, and attract customers, there is no guarantee that competing businesses will not be developed. Competing businesses may provide similar products or services and may have financial, technical, operations, or management advantages over CAPEX’s existing businesses. These advantages may render CAPEX incapable of competing in Second Life.
22.15 Relationships with key customers and suppliers. CAPEX has a diverse customer base, and there may be an adverse effect on the Company’s financial position and performance if these accounts are terminated or these relationships do not continue. The quality and availability of the Company’s products and services depends at times upon the performance of other suppliers. As with any contractual arrangement, parties to those arrangements may default in the performance of their obligations, become insolvent or necessary approvals may be withdrawn or not issued.
22.16 Acquisitions and joint ventures. CAPEX may in the future seek to pursue acquisitions or enter into joint ventures. Any acquisition or joint venture is risky, and customers are advised that these arrangements could have an adverse impact on CAPEX’s financial performance.
22.17 Trading volume. CAPEX can make no guarantee that the CAPEX market will remain liquid and allow orders to fill. Various problems, including lack of customer confidence, could bring the market to an effective standstill and make it impossible to realise profits or even the original value of the shares purchased. CAPEX will endeavour to prevent the loss of liquidity in the market.
22.18 Key personnel. Loss of members of CAPEX’s key management and staff could have adverse consequences for CAPEX and could affect its financial viability. While the Company has employment agreements with its key personnel, with the aim of securing their respective services, the retention of such services cannot be guaranteed. CAPEX’s success and growth strategy depends upon its ability to attract and retain appropriate management, technological and operating personnel. There is a risk that CAPEX will not be able to attract appropriate staff to meet its future requirements.

Section Two

B