Terms of Service

1. Acceptance of Terms

These Terms of Service form a binding legal agreement between you (“you”, “User”) and Swarming Labs LTD (“Sparkling”, “we”, “us”), governing your access to and use of the Sparkling website, Sparkling Telegram bot, and associated applications or services (collectively, the “Service”).

By accessing or using the Service, you confirm that you have read, understood, and agree to be bound by these Terms and our Privacy Policy.

2. Definitions

• “Assistant” means a rule-based automated strategy you configure within the Service to monitor markets and propose Transactions for your approval.
• “Digital Asset” means any cryptocurrency, token, or other blockchain-based asset supported by the Service.
• “Transaction” means any swap, perpetual position, prediction-market position, transfer, or other on-chain action initiated through the Service.

3. Compliance with Australian Law

You acknowledge and agree that, in accordance with the guidelines of the Australian Securities and Investments Commission (ASIC), the marketing and sale of crypto derivatives (such as perpetual contracts or futures) to retail clients is strictly prohibited in Australia. This applies regardless of whether the provider is based domestically or overseas. Additionally, prediction markets fall under the Interactive Gambling Act 2001 (Cth) and relevant state/territory gambling legislation. Your use of this Service is entirely at your own risk as a form of personal digital asset management, and you are solely responsible for ensuring compliance with all applicable Australian laws, including the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) and regulations administered by AUSTRAC.

4. Nature of the Service

Sparkling is a self-custody AI assistant software interface. Sparkling is NOT a bank, broker-dealer, investment adviser, remittance provider, or custodian. We do not hold your funds or private keys. All Transactions require your explicit confirmation. The assistant does not execute Transactions without your approval.

5. Risk Disclosures

You acknowledge and accept the following risks:

• Market Risk: Digital Asset prices are highly volatile. You may lose some or all of your funds. We do not guarantee any profits.
• Leverage and Liquidation Risk: Perpetual futures use leverage. Positions may be liquidated in full if the market moves against you.
• Smart Contract Risk: Transactions interact with smart contracts on public blockchains, which may contain bugs or vulnerabilities.
• Irreversibility: On-chain Transactions are irreversible once broadcast and confirmed.
• Regulatory Risk: The legal status of digital assets in Australia is restrictive. Engaging in such activities may carry significant legal and financial risks.

6. User Obligations

You agree to comply with all applicable laws and regulations, including those relating to securities, derivatives, anti-money laundering (AML), counter-terrorism financing (CTF), sanctions, and taxation. You will not engage in market manipulation, wash trading, or any activity intended to artificially affect prices or violate Australian financial regulations.

7. Taxation (CGT and the 50% Discount)

You are solely responsible for determining what taxes apply to your Transactions and for reporting and paying those taxes to the relevant tax authorities. In Australia, capital gains from the disposal of crypto assets are subject to Capital Gains Tax (CGT). If you are an individual and hold the asset for more than 12 months, you may be entitled to the 50% CGT discount. You must maintain accurate records of acquisition dates, disposal dates, and cost bases, and report these to the Australian Taxation Office (ATO) via your annual tax return. Sparkling does not provide tax advice.

8. Intellectual Property

The Service, including all software, designs, text, and logos, is owned by Swarming Labs LTD or our licensors. We grant you a limited, non-exclusive, non-transferable licence to access and use the Service for your personal, non-commercial use.

9. Limitation of Liability

TO THE MAXIMUM EXTENT PERMITTED BY LAW, SWARMING LABS LTD SHALL NOT BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, OR CONSEQUENTIAL DAMAGES, INCLUDING LOST PROFITS, LOST DATA, OR TRADING LOSSES, ARISING OUT OF OR IN CONNECTION WITH THE SERVICE.

For Australian consumers: Nothing in these Terms limits, excludes, or modifies any rights or remedies you may have under the Australian Consumer Law (ACL) (Schedule 2 of the Competition and Consumer Act 2010), including guarantees relating to the supply of services, which cannot be excluded, restricted, or modified by agreement.

10. Governing Law and Dispute Resolution

These Terms are governed by the laws of the British Virgin Islands. Any dispute shall be resolved by final and binding arbitration. However, if you are a consumer residing in Australia, you may be entitled to bring proceedings in Australian courts under the Australian Consumer Law or other applicable legislation.

11. Contact

For questions about these Terms, contact:
Swarming Labs LTD
Intershore Chambers, Road Town, Tortola, British Virgin Islands
Email: [email protected]