LEGAL_FRAMEWORK // TERMS_OF_SERVICE

>> 01_PROTOCOL_USAGE

The Polaris Protocol provides a decentralized platform for crypto-collateralized buy-now-pay-later (BNPL) services. Users may interact with the protocol via smart contracts deployed on supported blockchain networks. Access to the protocol is provided on an "as-is" basis, and users are solely responsible for managing their private keys and wallet interactions.

Eligibility: By using the platform, you represent that you are of legal age and are not subject to any international sanctions or restricted party lists. You agree to comply with all local regulations regarding cryptocurrency asset management and decentralized finance.

>> 02_COLLATERAL_LIQUIDATION_RISKS

Cryptocurrency markets are highly volatile. The Polaris Protocol requires collateralization for all credit extensions. In the event that the value of your collateral falls below the predefined 'Health Factor' threshold, the protocol will automatically trigger a liquidation event.

Liquidation Mechanism: Liquidation is handled by decentralized bots and smart contract logic. Polaris DAO is not responsible for losses incurred during market fluctuations or automated liquidation processes. Users are encouraged to maintain a safe buffer above the minimum liquidation threshold.

>> 03_SMART_CONTRACT_DISCLAIMER

While Polaris Protocol code has undergone multiple third-party audits, the nature of blockchain technology involves inherent risks. Smart contracts may contain vulnerabilities that could lead to the loss of funds.

By interacting with the Polaris smart contracts, you acknowledge and accept the risk of potential bugs, exploits, or network congestion that may affect the execution of transactions or the security of your deposited assets.

>> 04_GOVERNANCE_AND_UPDATES

Polaris is governed by the $POL holders. The terms of this agreement may be modified via on-chain governance proposals. Continued use of the platform following any modifications constitutes acceptance of the updated framework.