WaterX Terms of Service

Last Updated: April 13, 2026

Our services are not available to individuals or entities residing in, citizens of, incorporated in, or having a registered office in the United States of America or any Restricted Territory as defined herein.

We do not make exceptions. If you are a Restricted Person, please refrain from using our Interface. The use of a virtual private network (VPN) or any similar means to access our services as a Restricted Person or from a Restricted Territory is strictly prohibited.

Welcome to the WaterX Interface (https://waterx.app), provided by the Water Labs Ltd., a company incorporated in the Cayman Islands (collectively as "WaterX", "we", "us", or "our"). The Interface provides access to a decentralized perpetual trading protocol for Real World Assets (RWA) and digital assets, built on the Sui Network. Through WaterX, users can open and manage leveraged perpetual positions, provide liquidity to the WaterX Liquidity Pool (WLP), and interact with other protocol features as made available from time to time.

By using the Interface, you agree to be bound by these Terms of Service (the "Terms") and any additional terms and conditions referenced herein. Please read and understand the Terms carefully. Your access, browsing, or use of the Interface—or your acknowledgment of agreement on the Interface—constitutes your acceptance of all the Terms, including our Privacy Policy (which is incorporated herein by reference). The Terms contain important information, including provisions on dispute resolution such as a binding arbitration clause and class action waiver, that materially affect your rights.

The Interface is not available to, and must not be accessed or used by, any Restricted Person, as defined in Exhibit A. We do not make exceptions.

Use of a VPN, proxy, or any other technological means to circumvent jurisdictional restrictions is strictly prohibited and constitutes a material breach of these Terms.

WaterX reserves the right to deny or restrict access to the Interface to any individual, entity, jurisdiction, or geographic location, at our sole discretion and without prior notice. We are not liable for any losses or damages resulting from the unavailability of the Interface to Restricted Persons or in Restricted Territories.

WaterX reserves the right to modify, amend, or update the Terms at any time at its sole discretion. When changes are made, the updated Terms will be posted on the Interface and the "Last Updated" date at the top of the Terms will be revised accordingly. We recommend reviewing the Terms regularly. Revised Terms become effective upon posting, and your continued use of the Interface after such posting constitutes your binding acceptance of the changes. If you do not agree with the revised Terms, you must immediately cease accessing or using the Interface.

1. Eligibility

To access and use the Interface, you represent and warrant that:

  • You are of legal age in your jurisdiction and have the full legal capacity to enter into and be bound by these Terms.
  • If you are accepting these Terms on behalf of a legal entity, you have the legal authority to do so on behalf of that entity.
  • You are not a resident, national, or agent of any Restricted Territory, including but not limited to the United States of America, North Korea, Iran, Syria, Cuba, the Crimea region of Ukraine, or any other jurisdiction subject to comprehensive trade embargoes or sanctions imposed by the United States, the United Kingdom, or the European Union.
  • You are not a Restricted Person as defined in Exhibit A.
  • You are not accessing or using the Interface from any Restricted Territory or Excluded Jurisdiction as listed in Exhibits B and C.
  • Your use of the Interface complies with all applicable laws and regulations and does not involve or facilitate any illegal activity.
  • You understand that trading perpetual contracts and providing liquidity to decentralized protocols involves substantial risk, including the risk of complete loss of funds, and you have sufficient knowledge and experience to evaluate such risks independently.
  • You are not using, and will not use, any VPN, proxy, anonymization tool, relay, obfuscation service, or other technological means to conceal your identity, wallet provenance, or geographic location, or to circumvent any restrictions imposed by us.
  • You are not accessing or using the Interface or the Protocol with funds derived from, connected to, or intended to facilitate money laundering, terrorist financing, sanctions evasion, fraud, market abuse, or any unlawful activity.

2. Access to the Interface

We retain the right to restrict or terminate your access to the Interface if we determine, in our sole discretion, that you have violated any provision of these Terms or if we reasonably believe that you no longer meet the eligibility requirements set forth herein.

Access to the Interface is strictly prohibited for any Restricted Person, including individuals or entities located in, incorporated in, or otherwise affiliated with any Restricted Territory or Excluded Jurisdiction.

You agree not to use a VPN, proxy service, or any other technological means to obscure your geographic location or identity for the purpose of circumventing these access restrictions. Any attempt to access the Interface while concealing or misrepresenting your location or jurisdiction constitutes a material breach of these Terms.

We reserve the right to limit or deny access to the Interface to any individual, entity, geographic location, or legal jurisdiction as we deem necessary and appropriate. We are not responsible for any losses or damages incurred by you as a result of the unavailability of the Interface, regardless of the cause or circumstances.

For compliance, legal, security, operational, risk management, fraud prevention, sanctions, anti-money laundering, market abuse, or other legitimate business reasons, WaterX may, at any time and in its sole discretion, without prior notice: (i) require you to provide additional information or documentation relating to your identity, location, authority, beneficial ownership, source of funds, wallet ownership, or use of the Interface; (ii) refuse, delay, suspend, restrict, cancel, or reverse any transaction, withdrawal, deposit, redemption, reward, referral benefit, or feature access; (iii) place administrative holds on accounts, positions, rewards, or pending transactions; and (iv) disclose relevant information to its affiliates, service providers, professional advisors, auditors, insurers, regulators, courts, arbitrators, or law enforcement authorities to the extent reasonably necessary or permitted by applicable law. WaterX shall have no liability for any loss, delay, restriction, cancellation, hold, or unavailability resulting from actions taken under this Section.

3. Proprietary Rights

3.1 Ownership

WaterX retains all intellectual property and other rights in the WaterX Interface and its contents, including but not limited to software, text, images, trademarks, service marks, copyrights, patents, and designs. Unless expressly authorized by us, you may not copy, modify, adapt, rent, license, sell, publish, distribute, or permit any third party to access or use the Interface or its contents. Your access to and use of the Interface does not grant you any proprietary intellectual property or other rights in the Interface or its contents.

3.2 User-Submitted Materials

You retain ownership of all intellectual property and other rights in any information or materials you submit through the Interface. However, by submitting such information or materials, you grant us a worldwide, royalty-free, irrevocable license to use, copy, distribute, publish, and transmit such data in any manner consistent with applicable laws and regulations.

3.3 Feedback

You may choose to submit comments, bug reports, ideas, or other feedback about the Interface ("Feedback"). By submitting Feedback, you agree that we may use such Feedback at our discretion without additional compensation to you, and may disclose such Feedback to third parties on a non-confidential basis. To the extent required by applicable law, you grant us a perpetual, irrevocable, non-exclusive, transferable, worldwide license to incorporate and use your Feedback for any purpose. You also acknowledge that WaterX has no obligation to review, implement, maintain the confidentiality of, or compensate you for any Feedback.

3.4 Limited License

If you meet all eligibility requirements and comply with these Terms, you are granted a limited, personal, non-exclusive, non-transferable license to access and use the Interface. This license may be revoked by us at any time without notice or cause. Any use of the Interface not expressly permitted by these Terms is strictly prohibited.

Please note that, unlike the Interface, the WaterX itself consists of open-source smart contracts deployed on the public Sui Network and is not our proprietary property.

4. Description of Protocol Features

The WaterX provides the following features, each of which involves distinct risks that you acknowledge and accept:

  • Perpetual Trading.The Interface allows you to open and manage leveraged perpetual positions on supported assets, including crypto assets and tokenized representations of real-world assets such as equities ("xStocks"). Perpetual contracts have no expiry date and are subject to funding fees, rollover fees, liquidation, and auto-deleverage (ADL) mechanisms. You may lose your entire deposited collateral.
  • WaterX Liquidity Pool (WLP). The Interface allows you to deposit supported stablecoins (currently USDC and, upon availability, USDsui) into the WLP in exchange for WLP tokens representing your proportional share of the pool. WLP holders act as the collective counterparty to all traders on the protocol and are directly exposed to trader profits and losses. WLP deposits are subject to a one-business-day (T+1) withdrawal queue and may be restricted during periods of high pool utilization. NAV per WLP token fluctuates continuously.
  • WaterX Account. To interact with the Protocol, you must create a WaterX Account, which is an on-chain object on the Sui Network. Your WaterX Account holds your deposited collateral and is used to open positions and manage your activity on the Protocol.
  • Referral Program. The Interface provides a referral feature that allows users to generate referral codes and track referred trading volume. Referral rewards, if any, are subject to separate terms to be announced.
  • Agent Trading API & Session Keys. Advanced users and developers may access the Protocol programmatically via the WaterX API, MCP, and TypeScript SDK. Session Keys, where available, allow delegation of limited trading authority to automated agents without exposing your primary wallet credentials. You are solely responsible for the security of your Session Keys and any actions taken using them. Any instruction, action, transaction, or request submitted through your API credentials, Session Keys, delegated permissions, wallet, or account shall be deemed authorized by you and taken on your behalf, and WaterX shall have no obligation to verify the authenticity, authority, or accuracy of any such instruction, action, transaction, or request.

5. Prohibited Activity

You agree not to engage in, or attempt to engage in, any of the following categories of prohibited activity in relation to your access or use of the Interface:

  • Any activity that breaches these Terms.
  • Any activity that infringes upon or violates any copyright, trademark, service mark, patent, right of publicity, right of privacy, or other proprietary or intellectual property right.
  • Any activity that seeks to interfere with or compromise the integrity, security, or proper functioning of any computer, server, network, or other information technology system, including the deployment of viruses, malware, or denial-of-service attacks.
  • Any activity that seeks to defraud us or any other person or entity, including providing any false, inaccurate, or misleading information.
  • Any activity that violates any applicable law, rule, or regulation concerning the integrity of trading markets, including but not limited to manipulative tactics such as spoofing, layering, and wash trading.
  • Any activity that violates any applicable law or regulation of any relevant jurisdiction.
  • Any activity that disguises or interferes with the IP address of the device you are using to access the Interface, or that otherwise prevents us from correctly identifying your geographic location.
  • Any activity that transmits, exchanges, or is otherwise supported by the direct or indirect proceeds of criminal or fraudulent activity.
  • Any activity that exploits, or attempts to exploit, any vulnerability in the Protocol's smart contracts or oracle infrastructure.
  • Any activity that manipulates or attempts to manipulate the price of any asset, the WLP NAV, or any oracle price feed relied upon by the Protocol.

When the WaterX detects or receives a report that you have violated the clauses aforementioned, you acknowledge and agree that WaterX has the right to suspend your account and prohibit you from registering on WaterX again without prior notice or your consent.

WaterX may investigate any suspected prohibited activity and may take any action it deems appropriate, including suspension or termination of access, blocking or canceling transactions, withholding, voiding, or clawing back rewards, referral benefits, or promotional incentives, restricting feature access, and cooperating with regulators or law enforcement authorities.

6. No Professional Advice or Fiduciary Duties

All information provided in connection with your access and use of the Interface is for informational purposes only and should not be construed as financial, investment, legal, tax, or other professional advice. You should not take, or refrain from taking, any action based solely on any information contained in the Interface or any other content that we make available, including blog posts, articles, tutorials, market data, or social media content. Before making any financial or other decisions involving the Interface, you should seek independent professional advice from a licensed and qualified professional.

These Terms are not intended to, and do not, create or impose any fiduciary duties on us. To the fullest extent permitted by law, you acknowledge and agree that we owe no fiduciary duties or liabilities to you or any other party, and any such duties or liabilities are hereby irrevocably disclaimed, waived, and eliminated. The only duties and obligations we owe you are those expressly set out in these Terms.

7. No Warranties

The Interface is provided on an "AS IS" and "AS AVAILABLE" basis. To the fullest extent permitted by law, we disclaim any and all representations and warranties of any kind, whether express, implied, or statutory, including the warranties of merchantability and fitness for a particular purpose.

You acknowledge and agree that your access and use of the Interface is at your own risk. We do not represent or warrant that access to the Interface will be continuous, uninterrupted, timely, or secure; that the information contained in the Interface will be accurate, reliable, complete, or current; or that the Interface will be free from errors, defects, viruses, or other harmful elements.

No advice, information, or statement that we make should be treated as creating any warranty concerning the Interface. We do not endorse, guarantee, or assume responsibility for any advertisements, offers, or statements made by third parties concerning the Interface.

8. Compliance Obligations

The availability and appropriateness of the Interface may vary depending on your jurisdiction. By accessing or using the Interface, you acknowledge that you are solely and entirely responsible for complying with all applicable laws and regulations.

You understand and accept that we have no obligation to inform you of any potential liabilities or violations of law or regulation that may arise from your access and use of the Interface, and we are not liable in any respect for any failure by you to comply with applicable laws or regulations.

You are solely responsible for determining, collecting, reporting, and remitting any taxes applicable to your use of the Interface, including income tax, capital gains tax, and any other taxes arising under the laws of any relevant jurisdiction. We do not provide tax advice and are not responsible for determining or collecting any taxes from you. You should consult a qualified tax professional.

You represent and warrant that neither you nor any person acting on your behalf is subject to sanctions or other restrictive measures imposed by any relevant governmental authority, and that you are not accessing or using the Interface or the Protocol on behalf of, for the benefit of, or at the direction of any Restricted Person. You further represent and warrant that any funds, assets, wallets, or addresses used in connection with the Interface or the Protocol are not derived from, connected with, or intended to facilitate any unlawful activity, including money laundering, terrorist financing, fraud, sanctions evasion, theft, or market abuse. WaterX may, directly or through third-party providers, conduct sanctions screening, wallet screening, blockchain analytics, transaction monitoring, and other compliance checks, and may require additional information or documentation from you at any time. Failure to provide such information to WaterX’s satisfaction may result in restriction, suspension, or termination of access.

9. Assumption of Risk

By accessing and using the Interface, you represent, acknowledge, and accept that:

  • Trading leveraged perpetual contracts involves a high degree of risk. You may lose all funds deposited into your WaterX Account. Past performance of any asset is not indicative of future results. You are ought to assume all risks yourself, and WaterX is not liable for any losses incurred as a result of your own trading behaviors.
  • Providing liquidity to the WLP exposes you to the aggregate profit and loss of all traders on the Protocol. WLP token value may decrease significantly during periods of sustained trader profitability.
  • Smart contracts deployed on the Sui Network may contain bugs or vulnerabilities, and the Protocol may be exploited by malicious actors. We cannot guarantee the security or correctness of the Protocol's smart contracts, even if they have been audited; the existence of such audits does not constitute any representations or warranties that the smart contracts are free from vulnerabilities. You acknowledge and accept the inherent security risks of interacting with blockchain-based smart contract protocols.
  • The price feeds relied upon by the Protocol are provided by third-party oracle networks (including Pyth Network). Oracle failures, manipulation, or delays may result in incorrect liquidations, erroneous fills, or other adverse outcomes.
  • Liquidation and auto-deleverage (ADL) mechanisms may result in the partial or complete loss of your position and collateral without advance notice.
  • The markets for digital assets and tokenized real-world assets are highly volatile due to factors including regulation, adoption, technology, and market sentiment.
  • Transaction costs, confirmation times, and network availability on the Sui Network may vary and are outside our control.
  • You are not relying on us for any investment decisions. You assume full responsibility for all risks associated with your use of the Interface and the Protocol.

10. Third-Party Resources and Promotions

The Interface may include references or links to third-party resources, including information, materials, products, or services not owned or controlled by us—including Pyth Network (oracle price feeds), TradingView (charting), Enoki (zkLogin and transaction sponsorship), and other infrastructure providers.

We do not endorse or assume any responsibility for these third-party resources or any promotions offered by third parties in connection with the Interface. If you access or use any third-party resources or participate in any third-party promotions, you do so at your own risk, and these Terms do not govern your dealings with such third parties.

You expressly release us from any and all liability arising from your use of any third-party resources or participation in any third-party promotions.

The Interface and the Protocol may contain or be affected by errors, bugs, delays, omissions, inaccurate data, incorrect price feeds, incorrect calculations, display errors, duplicate executions, erroneous liquidations, incorrect fee calculations, incorrect reward calculations, incorrect referral attributions, incorrect NAV calculations, or other technical or operational issues (collectively, “Errors”). WaterX reserves the right, at any time and in its sole discretion, without prior notice, to investigate, correct, adjust, cancel, reverse, reclaim, offset, or refuse to honor any transaction, balance, reward, rebate, referral benefit, distribution, redemption, or account state affected by any Error. If you receive any funds, assets, credits, rewards, incentives, or other benefits as a result of any Error, you shall have no right to retain them and shall promptly return or repay them upon request, or WaterX may deduct, offset, reverse, or claw back such amounts to the extent permitted by applicable law. WaterX shall have no liability for any loss or damage arising from any Error or any action taken in connection with an Error.

11. Release of Claims

By accessing and using the Interface, you expressly agree to assume all risks associated with such access and use. You expressly waive and release WaterX and its officers, directors, employees, contractors, agents, affiliates, and subsidiaries from any and all liability, claims, causes of action, or damages arising from or in any way relating to your access and use of the Interface, including but not limited to:

  • Loss of funds resulting from trading losses, liquidation, or ADL;
  • Loss of funds resulting from smart contract vulnerabilities or exploits;
  • Interruption of service, system failures, or network congestion;
  • Security breaches, unauthorized access to your wallet or account, or misuse of Session Keys;
  • Oracle failures or price manipulation;
  • Actions of third-party service providers integrated with the Interface.

This release applies to all past, present, and future claims, whether known or unknown, arising out of or in any way connected with your access and use of the Interface.

12. Indemnity

You agree to hold harmless, release, defend, and indemnify WaterX and its officers, directors, employees, contractors, agents, affiliates, and subsidiaries from and against all claims, damages, obligations, losses, liabilities, costs, and expenses (including reasonable attorneys' fees) arising from:

  • Your access and use of the Interface;
  • Your violation of these Terms, the rights of any third party, or any applicable law, rule, or regulation;
  • Any other party's access and use of the Interface with your assistance, or using any device, wallet, or account you own or control, including via Session Keys issued by you.

This indemnity obligation survives the termination of your access to the Interface and the expiration or termination of these Terms.

13. Limitation of Liability

Under no circumstances shall WaterX or any of its officers, directors, employees, contractors, agents, affiliates, or subsidiaries be liable to you for any indirect, punitive, incidental, special, consequential, or exemplary damages, including damages for loss of profits, loss of funds, loss of data, goodwill, or other intangible losses, arising out of or relating to any access or use of the Interface.

WaterX assumes no liability or responsibility for:

  • Errors, mistakes, or inaccuracies of content or oracle price data;
  • Personal injury or property damage resulting from use of the Interface;
  • Unauthorized access to or use of any secure server, smart contract, or wallet;
  • Interruption or cessation of function related to the Interface or the Protocol;
  • Any bugs, viruses, or malicious code transmitted to or through the Interface;
  • Loss or damage incurred as a result of the use of any content or data available through the Interface;
  • Defamatory, offensive, or illegal conduct of any third party.

In no event shall WaterX's aggregate liability to you exceed $100 USD, regardless of whether the alleged liability is based on contract, tort, negligence, strict liability, or any other legal theory, and even if WaterX has been advised of the possibility of such liability.

Some jurisdictions do not allow the exclusion of certain warranties or the limitation of certain liabilities. To the fullest extent permitted by applicable law, the disclaimers and limitations set forth in these Terms apply.

14. Dispute Resolution

Informal Resolution. We will use our best efforts to resolve any potential dispute through informal, good-faith negotiations. If a potential dispute arises, you must first contact us by sending an email to legal@waterx.app to allow us to attempt resolution without formal proceedings. If we cannot reach an informal resolution within sixty (60) days of your email, the parties agree to resolve the dispute through the process described below.

Arbitration.Any claim or controversy arising out of or relating to the Interface, the Protocol, these Terms, or any other acts or omissions for which you may contend we are liable (each, a "Dispute") shall be finally and exclusively settled by binding arbitration administered by the Chinese Arbitration Association, Taipei (CAA) under the CAA Arbitration Rules in force at the time of filing. The arbitration shall be conducted confidentially before a single arbitrator, in English. The place of arbitration shall be in Taipei, Taiwan. Unless otherwise agreed, the arbitrator may not consolidate your claims with those of any other party. Any judgment on the award rendered by the arbitrator may be entered in any court of competent jurisdiction outside the United States of America.

Jurisdiction. WaterX is incorporated in the Cayman Islands and operates the Interface from there. Although the Interface may be accessible in other jurisdictions, its availability does not give rise to general or specific personal jurisdiction in any forum outside the Cayman Islands.

15. Class Action and Jury Trial Waiver

You must bring any and all Disputes against us in your individual capacity and not as a plaintiff or class member in any purported class action, collective action, private attorney general action, or other representative proceeding. This provision applies to class arbitration.

Both you and WaterX waive the right to a trial by jury with respect to any Dispute.

16. Governing Law

These Terms and any Dispute between you and WaterX shall be governed by and construed in accordance with the laws of the Cayman Islands, without regard to its conflict of laws principles. Nothing in this Section shall limit WaterX's right to seek injunctive or other equitable relief in any court of competent jurisdiction in connection with any actual or threatened breach of these Terms.

17. Entire Agreement

These Terms, including the Privacy Policy, constitute the entire agreement between you and WaterX with respect to the subject matter hereof. These Terms supersede all prior and contemporaneous written and oral agreements, communications, and understandings relating to the subject matter hereof.

18. Privacy Policy

Our Privacy Policy describes how we collect, use, store, and disclose your personal information. By using the Interface, you agree to the collection, use, storage, and disclosure of your data in accordance with the Privacy Policy.

Exhibit A — Definitions

"Restricted Territory" means any jurisdiction listed in Exhibit B where use of the Interface is strictly prohibited by applicable law, sanctions, or administrative orders.

"Excluded Jurisdiction" means any jurisdiction listed in Exhibit C where certain services or functionalities offered through the Interface are restricted due to legal or policy considerations.

"Restricted Person" means any individual or entity who is:

  1. a citizen, national, resident, or agent of;
  2. incorporated or otherwise established in;
  3. has a registered office in; or
  4. is otherwise accessing the Interface from,

any Restricted Territory or Excluded Jurisdiction, or who is listed on any sanctions list maintained by the United Nations, OFAC, the U.K. Treasury, the European Union, or any other relevant authority.

Exhibit B — Restricted Territories

The following jurisdictions are Restricted Territories. No access to the Interface is permitted under any circumstances:

  • United States of America
  • Taiwan (Republic of China)
  • United Kingdom
  • North Korea
  • Iran
  • Syria
  • Cuba
  • Crimea region of Ukraine
  • Any jurisdiction subject to comprehensive sanctions under U.S., U.K., or E.U. law

(This list may be updated periodically at our sole discretion.)

Exhibit C — Excluded Jurisdictions

The following jurisdictions are Excluded Jurisdictions. Access to certain features (e.g., leveraged trading, liquidity provision) may be limited or restricted:

  • Canada
  • China (People's Republic of)
  • Hong Kong SAR
  • Singapore
  • Japan
  • Algeria
  • Bangladesh
  • Bolivia
  • Nepal
  • Morocco
  • Venezuela
  • Zimbabwe

(This list may be updated periodically.)