> For the complete documentation index, see [llms.txt](https://cryptoart.gitbook.io/cryptoart/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://cryptoart.gitbook.io/cryptoart/project/terms/token-license-and-vault-addendum.md).

# Token License & Vault Addendum

## CRYPTOART TOKEN LICENSE & VAULT ADDENDUM

**Last Updated:** April 16, 2026

**PLEASE READ THIS ADDENDUM CAREFULLY. THIS DOCUMENT IS INCORPORATED BY REFERENCE INTO THE CRYPTOART PUBLISHERS, LLC TERMS OF SERVICE. IT GOVERNS YOUR INTELLECTUAL PROPERTY RIGHTS, SMART CONTRACT INTERACTIONS, AND THE BLOCKCHAIN VAULT MECHANICS RELATED TO YOUR CRYPTOART.**

### 1. INTRODUCTION AND INCORPORATION

This Token License & Vault Addendum ("Addendum") is an extension of the Cryptoart Publishers, LLC (dba Cryptoart.com) Terms of Service. It governs the specific rules, intellectual property rights, and blockchain mechanics surrounding the cryptographic tokens ("Tokens" or "digital tokens") and Physical Artworks in the Cryptoart ecosystem.

By purchasing a Physical Artwork with digital token capabilities, participating in a token mint, or holding a Cryptoart token, you ("Collector", "you", or "Token Holder") agree to be bound by this Addendum.

### 2. DEFINITIONS

* **"Token"** refers to a cryptographic token (e.g., ERC-721 or similar standard) deployed on a blockchain representing ownership of a specific digital artwork from the Project.
* **"Artwork"** refers to the digital art and associated media connected to a Token.
* **"Physical Artwork"** refers to a physical, tangible reproduction of the Artwork sold by or obtained through the Project.
* **"Blockchain Vault"** refers to the decentralized, smart contract-based escrow system utilized by the Project to securely hold a Token while its corresponding Physical Artwork is active and valid.
* **"Authentication Code"** or **"Code"** refers to the secure cryptographic mechanism attached to the Physical Artwork that acts as the private key to authorize the retrieval of the corresponding Token from the Blockchain Vault.
* **"Unpairing" (Vault Retrieval)** refers to the process of using the Authentication Code to retrieve the Token from the Blockchain Vault to a personal web3 wallet. This process permanently and irrevocably invalidates the physical reproduction's active status.
* **"Pairing" (Physical Redemption)** refers to the process of a Token Holder sending an active Token into the Blockchain Vault to redeem a new, valid Physical Artwork.

### 3. THE ECOSYSTEM: WALLS AND MARKETS

Every Cryptoart Token contains a metadata field called "Redeemable". If the "Redeemable" state is TRUE, the Token is eligible to be paired with a Physical Artwork. If it is FALSE, it cannot be paired. This metadata strictly governs the pairing process between the digital Token and the Physical Artwork.

**3.1 Physical Purchases, Inventory & The Vault:** When you purchase a new Physical Artwork from our website, the corresponding Token has already been minted or acquired on the secondary market and is held in our inventory. Upon your purchase, we transfer the Token into the Blockchain Vault. To prevent unauthorized retrieval in the event a physical piece is lost or stolen in transit, **all Tokens placed into the Blockchain Vault are subject to a mandatory 90-day lockup period.** You will receive the Physical Artwork containing the unrevealed Authentication Code. Once the 90-day lockup period expires, this Code allows you to retrieve the Token from the Vault in a non-custodial fashion whenever you choose.

**3.2 Unpairing (Retrieving the Token):** If you wish to trade, sell, or hold the digital Token in your own wallet, you may "Unpair" the artwork, **provided the mandatory 150-day lockup period has expired**. By revealing and utilizing the Code on your Physical Artwork, you trigger a smart contract transaction to retrieve the Token from the Vault to your personal Ethereum-based digital wallet.

* **Invalidation:** Retrieving the Token irrevocably invalidates the Physical Artwork.
* **Prohibition on Sale:** Invalidated pieces are void and are explicitly prohibited from being resold, marketed, or transferred as authentic, active Cryptoart.
* **Network Fees:** Retrieving a Token requires the payment of network transaction fees (gas) denominated in ETH, along with a small processing fee charged by us.

**3.3 Pairing (Redeeming a Physical):** If you hold an active Token in your personal digital wallet, you may "Pair" it to receive a Physical Artwork. This requires you to initiate a smart contract transaction to transfer the Token back into the Blockchain Vault and pay applicable shipping and production fees. Upon successful vaulting, we will issue a new Physical Artwork with a new Authentication Code. **Tokens vaulted via this Pairing process are subject to a new mandatory 90-day lockup period to account for transit time before they can be retrieved again.**

### 4. VAULT LIABILITY & NON-CUSTODIAL DISCLAIMER

**YOU EXPLICITLY ACKNOWLEDGE AND AGREE THAT THE BLOCKCHAIN VAULT IS A TECHNICAL MECHANISM DESIGNED SOLELY TO ENFORCE ARTISTIC SCARCITY (ENSURING A PIECE DOES NOT SIMULTANEOUSLY EXIST IN BOTH PHYSICAL AND TRADABLE DIGITAL STATES). CRYPTOART PUBLISHERS, LLC IS NOT A BANK, CUSTODIAN, BROKER, OR FINANCIAL AGENT.**

**4.1 Smart Contract Execution:** The Blockchain Vault operates via decentralized smart contracts deployed on a public blockchain. Your Authentication Code acts as a cryptographic bearer instrument, granting you the direct, decentralized ability to retrieve your Token from the Vault without our manual intervention or approval.

**4.2 Interface Convenience:** While we provide a user interface on cryptoart.com to simplify the Unpairing/Retrieval process, this is purely a supplementary convenience. You always possess the independent ability to interact directly with the underlying smart contract using your Code.

**4.3 Loss of Code:** The Authentication Code attached to the Physical Artwork is the **SOLE AND EXCLUSIVE** mechanism for retrieving a vaulted Token. **IF YOU LOSE, DAMAGE, OR DESTROY THE PHYSICAL ARTWORK OR THE CODE, OR IF IT IS STOLEN, YOU WILL PERMANENTLY AND IRREVOCABLY LOSE THE ABILITY TO RETRIEVE THE TOKEN.** **4.4 No Liability:** TO THE FULLEST EXTENT PERMITTED BY LAW, WE BEAR ABSOLUTELY NO LIABILITY FOR ANY LOSS OF TOKENS STORED IN THE BLOCKCHAIN VAULT RESULTING FROM: (A) UNAUTHORIZED ACCESS BY THIRD PARTIES WHO OBTAIN YOUR CODE; (B) YOUR FAILURE TO PHYSICALLY SECURE THE ARTWORK; (C) BLOCKCHAIN NETWORK FAILURES, CONGESTION, OR FORKS; OR (D) UNFORESEEN SMART CONTRACT VULNERABILITIES, BUGS, OR EXPLOITS.

### 5. OWNERSHIP, IP, AND PERMITTED USES

**5.1 Ownership:** Purchasing a Token (or a Physical Artwork paired with a Token) grants you personal property ownership of the cryptographic token itself. You do **not** own the copyright, trademark, or any underlying intellectual property rights to the Artwork, which remain entirely with Cryptoart Publishers, LLC or the original artist.

**5.2 Permitted Uses:** As an active Token Holder (whether held in your wallet or vaulted via your Physical Artwork), you are granted a worldwide, non-exclusive, non-transferable, royalty-free license to:

* Display the digital Artwork online, in virtual galleries, or in physical public spaces for personal, non-commercial use.
* Create physical reproductions or copies of the Artwork strictly for your own personal, non-commercial use and display.
* Use the Artwork in social media contexts (e.g., as profile pictures and backgrounds).
* Attach text, images, or "stories" directly to the blockchain via our designated smart contract features. You acknowledge and agree that any such user-generated content permanently becomes public domain and may be used commercially by us without restriction or compensation.

**5.3 Prohibited Uses:** You absolutely may **not**:

* Use the Artwork, Token, or Physical Artwork for any commercial purposes, including but not limited to merchandise, brand partnerships, or advertising.
* Create, sell, or commission derivative works based on the Artwork.
* Attempt to trademark, copyright, or otherwise acquire additional intellectual property rights in the Artwork.

### 6. TRANSFERS AND SECONDARY MARKETS

**6.1 Transfer of Rights:** If you sell or transfer your Token to a new owner on the secondary market, all licenses and rights granted herein immediately transfer to the new owner.

**6.2 Warning Regarding Paired Tokens:** If you purchase a Token on a secondary market that is flagged in its metadata as REDEEMABLE = FALSE, **you cannot Unpair or retrieve it unless you physically possess the corresponding Physical Artwork and its unrevealed Authentication Code.** Buyers are strictly cautioned to verify the state of the Token before purchase.

### 7. ROYALTIES & SUPPLY EXPANSION

**7.1 Royalties:** Our Tokens implement the ERC-2981 Royalty Standard. Secondary sales of digital Tokens may be subject to royalty payments to Cryptoart Publishers, LLC, which are automatically calculated and deducted by supporting marketplaces.

**7.2 Supply Expansion & Value:** We adhere to a Supply Expansion Model published on our website governing the issuance of artworks. However, **WE DO NOT GUARANTEE ANY FLOOR PRICE, MINIMUM VALUE, OR FUTURE VALUE OF THE TOKENS OR PHYSICAL ARTWORKS.** You acknowledge that tokens are highly volatile and are acquired for consumptive, artistic purposes, not as financial investments.

### 8. METADATA AND DECENTRALIZED STORAGE

**8.1 Metadata Control:** We utilize upgradable proxy smart contracts to manage our ecosystem. Independent of contract upgrades, we retain the administrative ability to manually update the "Redeemable" state of any Token at any time. We reserve the right to modify this state to address technical issues, fix inaccuracies, or prevent unintended use of the pairing mechanics. Subsequent material changes to the core contract logic itself will be publicly logged.

**8.2 IPFS Storage:** Token images and metadata are stored on decentralized storage networks such as the InterPlanetary File System (IPFS). We do not control IPFS and are not responsible for its perpetual availability, uptime, or continued functioning. In the unlikely event that Cryptoart Publishers, LLC ceases operations, we will make best efforts to provide public instructions on how collectors can independently pin their own Token data to ensure long-term preservation.

### 9. LEGAL AND DISPUTE RESOLUTION

All provisions regarding Limitation of Liability, Indemnification, Governing Law, and the binding Arbitration Agreement (including the Class Action Waiver) as set forth in the Cryptoart Publishers, LLC **Terms of Service** are hereby incorporated into this Addendum by reference and apply fully to any disputes arising out of your ownership, use, or retrieval of the Tokens.