Usage Policy

Policy Overview and Compliance Statement

This Usage Policy outlines the proper use, limitations, and compliance requirements for Encratex hardware wallet products. Our devices are designed exclusively for secure offline storage of cryptocurrency and NFT private keys, with no trading, exchange, or brokerage capabilities. All products comply with applicable regulations and industry standards for hardware security devices.

1. Purpose and Functional Limitations

1.1 Primary Function

Encratex hardware wallets are designed exclusively for:

• Secure offline storage of cryptocurrency private keys
• Protection of NFT and digital asset access credentials
• Generation and management of cryptographic seeds in an air-gapped environment
• Transaction signing without exposing private keys to network-connected devices
• Multi-signature wallet participation for enhanced security

1.2 Explicit Service Limitations

Our hardware wallets explicitly do NOT provide:

• Cryptocurrency buying, selling, or trading services
• Exchange or conversion between different digital assets
• Brokerage services or investment advice
• Market making or liquidity provision
• Custodial services or third-party key management
• Price feeds, market data, or trading interfaces
• Integration with trading platforms or exchanges

1.3 Advertising and Marketing Compliance

In accordance with advertising regulations, all promotional materials:

• Promote only key storage and security functionality
• Explicitly exclude any mention of trading services
• Clearly disclose legal limitations and user responsibilities
• Include appropriate risk warnings and disclaimers
• Comply with financial advertising standards in all jurisdictions

2. Security Architecture and Implementation

2.1 Secure Element Technology

All Encratex hardware wallets feature:

• EAL6+ certified secure element chips for cryptographic operations
• Hardware-based true random number generation
• Tamper-resistant construction with physical security measures
• Secure boot process with cryptographic signature verification
• Isolated execution environment for sensitive operations

2.2 Air-Gapped Operation

Our devices maintain complete network isolation through:

• No permanent internet connection or wireless capabilities
• USB-only communication for transaction signing
• Offline key generation and storage
• No data transmission of private keys or sensitive information
• Complete user control over all cryptographic operations

2.3 Authentication and Access Control

Multi-layer security includes:

• PIN protection with anti-brute force mechanisms
• Optional passphrase for additional security layer
• BIP39 seed phrase generation for backup and recovery
• Secure display for transaction verification
• Physical confirmation buttons for transaction approval

2.4 Open Source and Audit Compliance

Transparency and verification through:

• Open-source firmware with public code repositories
• Regular independent security audits by certified firms
• Transparent release notes for all firmware updates
• Community-driven security research and bug bounty programs
• Reproducible builds for firmware verification

3. Legal and Regulatory Compliance

3.1 Device Classification and Regulation

Encratex hardware wallets are classified as:

• Hardware security devices, not financial services
• Cryptographic equipment subject to export control regulations
• Consumer electronics with specific import/export requirements
• Non-custodial tools that do not hold or control user funds

3.2 KYC/AML Exemption

The hardware devices themselves are not subject to:

• Know Your Customer (KYC) requirements
• Anti-Money Laundering (AML) reporting obligations
• Customer identification or verification procedures
• Transaction monitoring or suspicious activity reporting

3.3 User Compliance Responsibilities

Users are solely responsible for:

• Compliance with local cryptocurrency regulations
• Tax reporting and payment obligations in their jurisdiction
• Import/export compliance for cryptographic devices
• Adherence to sanctions and trade restriction laws
• Professional advice regarding legal requirements

3.4 International Trade Compliance

Cross-border considerations include:

• Export control laws for cryptographic equipment
• Import restrictions in certain jurisdictions
• Customs declarations and documentation requirements
• Sanctions compliance and restricted party screening

4. Risk Disclosure and Liability Limitations

4.1 Seed Phrase and Key Management Risks

Critical user responsibilities include:

• Secure storage and backup of seed phrases
• Understanding that lost seed phrases cannot be recovered
• Recognition that Encratex cannot restore lost keys
• Acceptance of complete responsibility for key security
• Implementation of appropriate backup procedures

4.2 Market and Financial Risks

Users acknowledge and accept:

• Cryptocurrency market volatility and potential total loss
• No guarantee of asset value preservation
• Manufacturer non-responsibility for market fluctuations
• Independent decision-making regarding asset management
• No investment advice or financial guidance provided

4.3 Technical and Operational Risks

Potential technical considerations include:

• Hardware failure or malfunction possibilities
• Firmware update requirements and procedures
• Compatibility with various blockchain networks
• User error in device operation or setup
• Physical damage or loss of device

4.4 Liability Limitations

Encratex liability is limited to:

• Hardware defects covered under warranty terms
• Manufacturing defects in materials and workmanship
• Exclusion of consequential or indirect damages
• No responsibility for user errors or misuse
• No liability for market losses or asset devaluation

5. Setup, Authentication, and Support Procedures

5.1 Device Authentication and Verification

Proper setup requires:

• Verification of device authenticity using provided methods
• Inspection of tamper-evident packaging and seals
• Confirmation of genuine firmware through cryptographic verification
• Validation of device serial numbers and certificates
• Review of included documentation and security guides

5.2 Secure Initialization Process

Initial setup procedures include:

• Offline seed phrase generation in secure environment
• PIN setup with strong, unique combinations
• Optional passphrase configuration for enhanced security
• Backup verification and secure storage procedures
• Test transactions to verify proper operation

5.3 Firmware Management

Ongoing maintenance includes:

• Regular firmware updates for security enhancements
• Verification of update authenticity before installation
• Review of release notes and security advisories
• Backup procedures before major updates
• Testing of functionality after updates

5.4 Network Compatibility and Support

Technical considerations include:

• Verification of supported blockchain networks
• Compatibility with wallet software and applications
• Understanding of transaction fee structures
• Network-specific security considerations
• Integration with multi-signature schemes

5.5 Support Channels and Resources

Available support includes:

• Comprehensive documentation and user guides
• Technical support for device-related issues
• Security best practices and recommendations
• Firmware update notifications and procedures
• Community forums and knowledge base resources

6. Advertising and Marketing Compliance

6.1 Google Ads and Platform Requirements

All advertising materials comply with:

• Platform-specific policies for cryptocurrency-related products
• Prohibition on promoting trading or exchange services
• Clear disclosure of product limitations and intended use
• Accurate representation of security features and capabilities
• Compliance with financial services advertising regulations

6.2 Permitted Marketing Content

Approved promotional content includes:

• Key storage and security functionality descriptions
• Technical specifications and security features
• Compliance and audit information
• Setup and usage instructions
• Customer testimonials regarding security and usability

6.3 Prohibited Marketing Practices

Strictly forbidden promotional content includes:

• Any mention of trading, buying, or selling capabilities
• Investment advice or financial return promises
• Market predictions or price speculation
• Integration with trading platforms or exchanges
• Guarantees of profit or asset appreciation

7. Policy Updates and Modifications

This Usage Policy may be updated periodically to reflect:

• Changes in regulatory requirements or legal obligations
• Updates to product features or technical specifications
• Improvements in security practices or industry standards
• Clarifications based on user feedback or support inquiries
• Compliance with new advertising or marketing regulations

Users will be notified of material changes through:

• Email notifications to registered customers
• Prominent notices on our website and documentation
• Updates to the "Last Updated" date on this policy
• Inclusion in firmware update release notes when applicable