Terms & Conditions

Welcome to FairLuck Protocol ("Protocol", "we", "us", or "our"). These Terms & Conditions ("Terms") govern your access to and use of the FairLuck decentralized lottery protocol, including all associated smart contracts, websites, applications, and services.

By accessing or using the Protocol, you agree to be bound by these Terms. If you do not agree to these Terms, you must not access or use the Protocol. These Terms constitute a legally binding agreement between you and the Protocol.

FairLuck is a fully decentralized protocol that operates entirely according to its smart contract code deployed on the blockchain. No individual, team, company, or entity controls, manages, operates, or can alter the Protocol's operation once deployed.

By using this Protocol, you represent and warrant that:

• You are at least 18 years of age or the age of majority in your jurisdiction, whichever is greater.
• You have the legal capacity to enter into these Terms and to use the Protocol.
• You are NOT a citizen, national, or resident of the United States of America, its territories, or possessions (including but not limited to Puerto Rico, Guam, U.S. Virgin Islands, American Samoa, and Northern Mariana Islands).
• You are NOT located within the United States of America at the time of accessing or using the Protocol.
• You are not a person or entity subject to sanctions administered by the U.S. Office of Foreign Assets Control (OFAC), the United Nations, the European Union, or any other applicable sanctions authority.
• Your use of the Protocol complies with all applicable laws and regulations in your jurisdiction.
• You are not using the Protocol on behalf of any person or entity that would be restricted from using it under these Terms.

FairLuck is a decentralized lottery protocol that operates through smart contracts on the blockchain, utilizing Chainlink Verifiable Random Function (VRF) for provably fair and transparent winner selection.

3.1 Pool Structure

The Protocol offers multiple pool tiers with different multipliers: 10X, 100X, 1,000X, 10,000X, 100,000X, and 1,000,000X. Each pool operates independently with its own cycle duration (24 hours for 10X through 10,000X pools; 7 days for 100,000X and 1,000,000X pools), based on Pacific Time.

3.2 Ticket System

The Protocol treats both USDT and USDC at a fixed value of $1 USD per token, regardless of their market price at the time of contribution or distribution. Each $1 USD equivalent (in USDT or USDC) contributed to a pool generates one (1) ticket. Tickets are assigned sequential index numbers based on the order of contribution. Each ticket is independently evaluated for winning status — a single contributor may have some tickets win and others lose within the same pool cycle.

3.3 Winner Selection

Winners are selected using Chainlink VRF, which provides cryptographically verifiable random numbers. The selection is based on ticket numbers, not contributors. For a 10X pool, 1 out of every 10 tickets wins. The winning ticket receives the equivalent of 10X its face value from the pool. This process is fully transparent and verifiable on-chain.

3.4 Prize Distribution & Token Composition

Winnings are distributed randomly from the pool's available token balance. Since pools contain a mix of USDT and USDC from various contributors, winners may receive their prize in USDT only, USDC only, or a combination of both tokens. The specific token composition of any individual payout is not fixed, guaranteed, or predictable. The Protocol makes no guarantees regarding which token(s) a winner will receive — only that the total USD-equivalent value (at the Protocol's fixed $1 per token rate) will equal the prize amount.

3.5 Minimum Thresholds

Each pool has a minimum contribution threshold that must be met for the draw to proceed: 10X pool requires at least $10, 100X requires $100, 1,000X requires $1,000, 10,000X requires $10,000, 100,000X requires $100,000, and 1,000,000X requires $1,000,000. If the minimum threshold is not met by the end of the cycle, contributed funds (excluding platform fees) are returned to contributors.

A platform fee of 1% is charged on all contributions, with a minimum fee of $1 USD. The platform fee is always rounded to the nearest whole dollar. This fee is charged at the time of contribution and is non-refundable under any circumstances, including but not limited to:

• Voluntary withdrawal of funds before pool closure
• Pool cancellation due to minimum threshold not being met
• Any technical issues, network congestion, or smart contract behavior
• Any other reason whatsoever

After the platform fee is deducted, 100% of the remaining funds in the pool are distributed to winners when the pool cycle ends and the draw is completed. Distribution is made from the pool's available token balance (USDT and/or USDC) randomly.

Users may contribute USDT or USDC to any active pool. Contributions must be in whole dollar amounts (integers only). Users may contribute to a pool at any time until 5 minutes before the pool cycle ends.

Users may withdraw their contributed funds (excluding the non-refundable platform fee) from any pool at any time up to 5 minutes before the pool cycle ends. Withdrawn tickets are either sold to the next buyer or destroyed and excluded from the draw, as determined by the smart contract logic.

Once the 5-minute cutoff period begins, no further contributions or withdrawals are permitted. This ensures the integrity of the draw process.

The HAPPY token is the governance token of the FairLuck Protocol with a maximum supply of 1,000,000,000 (one billion) tokens. The distribution is as follows:

• 20% (200,000,000 tokens) — Team allocation, distributed at launch with no vesting
• 30% (300,000,000 tokens) — DAO treasury, distributed at launch with no vesting
• 50% (500,000,000 tokens) — User rewards, earned through platform fee payments

Users earn 1 HAPPY token for each $1 USD in platform fees paid. There is a monthly distribution cap of 10,000,000 HAPPY tokens. Once 10,000,000 tokens have been distributed in a given calendar month, no additional tokens are earned until the following month. Distribution continues until all 500,000,000 user-allocated tokens have been claimed.

The HAPPY token is used exclusively for governance purposes — voting on protocol proposals and parameters. Staking HAPPY tokens requires a 14-day pre-staking period before voting power activates, and a 14-day post-unstaking cooldown before tokens are released. HAPPY token staking does not earn any yield or rewards.

By using the Protocol, you acknowledge and accept the following risks:

• Financial Loss: You may lose some or all of your contributed funds. The Protocol is designed such that the majority of participants in any given pool cycle will not win. Only participate with funds you can afford to lose entirely.
• Smart Contract Risk: The Protocol operates through smart contracts which, despite auditing, may contain undiscovered vulnerabilities, bugs, or exploits that could result in loss of funds.
• Blockchain Risk: Transactions on the blockchain are irreversible. Network congestion, high gas fees, or blockchain outages may affect your ability to contribute, withdraw, or claim winnings in a timely manner.
• Oracle Risk: The Protocol relies on Chainlink VRF for random number generation. While Chainlink is a leading oracle provider, any failure or manipulation of the oracle could affect draw outcomes.
• Regulatory Risk: The regulatory landscape for cryptocurrency and DeFi is evolving. Changes in laws or regulations may affect the Protocol's operation or your ability to use it.
• Stablecoin Risk: The Protocol accepts USDT and USDC and treats both at a fixed $1 value regardless of market price. De-pegging events or issuer insolvency could affect the real-world value of tokens received, even though the Protocol continues to value them at $1. You bear all risk associated with stablecoin market fluctuations.
• No Insurance: Funds deposited in the Protocol are not insured by any government agency, insurance company, or other entity.

TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, THE PROTOCOL, ITS DEVELOPERS, CONTRIBUTORS, AND AFFILIATES SHALL NOT BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES, OR ANY LOSS OF PROFITS OR REVENUES, WHETHER INCURRED DIRECTLY OR INDIRECTLY, OR ANY LOSS OF DATA, USE, GOODWILL, OR OTHER INTANGIBLE LOSSES, RESULTING FROM:

• Your access to or use of or inability to access or use the Protocol
• Any conduct or content of any third party on the Protocol
• Any content obtained from the Protocol
• Unauthorized access, use, or alteration of your transmissions or content
• Loss of funds due to smart contract behavior, whether expected or unexpected
• Any bugs, viruses, trojan horses, or the like that may be transmitted through the Protocol

THE PROTOCOL IS PROVIDED ON AN "AS IS" AND "AS AVAILABLE" BASIS WITHOUT ANY WARRANTIES OF ANY KIND, WHETHER EXPRESS, IMPLIED, OR STATUTORY. THE PROTOCOL SPECIFICALLY DISCLAIMS ALL IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, AND NON-INFRINGEMENT.

No advice or information, whether oral or written, obtained from the Protocol or through the services shall create any warranty not expressly stated herein. The Protocol does not warrant that the services will be uninterrupted, timely, secure, or error-free.

FairLuck Protocol respects your privacy. As a decentralized protocol, we collect minimal data:

10.1 Information We Collect

• Blockchain Data: All transactions on the Protocol are recorded on the public blockchain. This includes wallet addresses, contribution amounts, and ticket data. This data is publicly accessible by nature of blockchain technology.
• Cookies & Local Storage: We use cookies and browser local storage to remember your preferences (such as disclaimer acceptance and wallet connection state).
• Analytics: We may collect anonymized usage analytics to improve the Protocol's user interface. No personally identifiable information is collected.

10.2 Information We Do NOT Collect

• Personal identification information (name, email, phone number)
• IP addresses (not stored or logged)
• Private keys or seed phrases
• Financial information beyond on-chain transaction data

10.3 Data Sharing

We do not sell, trade, or otherwise transfer your information to third parties. Blockchain transaction data is inherently public and accessible to anyone.

These Terms shall be governed by and construed in accordance with the principles of international commercial law, without regard to any particular jurisdiction's conflict of law provisions. As a decentralized protocol, FairLuck operates across multiple jurisdictions and is not domiciled in any single country.

Any dispute arising out of or in connection with these Terms shall be resolved through binding arbitration in accordance with the rules of the International Chamber of Commerce (ICC). The arbitration shall be conducted in English.

As a decentralized protocol governed by HAPPY token holders, modifications to these Terms may be proposed and voted upon through the governance process. Any material changes will be communicated through the Protocol's official channels and will require governance approval.

Your continued use of the Protocol after any modifications constitutes your acceptance of the updated Terms.

As a decentralized protocol, there is no central customer support team. For questions, discussions, and community support:

• Join the community on Discord for peer-to-peer support
• Follow official announcements on Twitter / X
• Participate in governance discussions through the HAPPY token governance forum
• Review the smart contract code on GitHub