Terms of Use
Last Updated on 29th July 2025
Welcome to AFI, a decentralized platform designed to automate financial strategies through non-custodial smart contracts. These Terms of Use (“Terms”) govern your access to and use of the AFI platform, including its website, smart contracts, services, interfaces, tokens (such as afiusd), and all associated features and technologies (collectively referred to as the “Platform” or “AFI”).
By accessing, browsing, interacting with, or transacting on AFI, you (“User,” “you,” or “your”) acknowledge that you have read, understood, and agree to be legally bound by these Terms in their entirety. These Terms form a binding agreement between you and AFI.
If you do not agree to these Terms or any part of them, you must refrain from accessing or using the AFI Platform in any form. Use of AFI is entirely voluntary, and by continuing, you represent that you meet all eligibility criteria outlined herein and are legally permitted to use decentralized finance services in your jurisdiction.
1. Overview of AFI
AFI is a decentralized, non-custodial financial infrastructure designed to enable users to participate in autonomous, algorithmically optimized decentralized finance (“DeFi”) strategies. Users interact with the AFI Platform by connecting their self-custodied wallets and authorizing the deployment of certain stablecoin assets (currently USDC, USDT and AUSD) into yield-generating protocols via smart contract automation.
Upon deposit, users receive a dynamically calculated amount of afiusd, a yield-bearing vault token that reflects the evolving performance of the underlying strategies. It is important to note that afiusd is not a stablecoin, but a representation of the user’s claim on the vault’s yield-bearing performance.
All processes—including wallet creation, fund deployment, afiusd minting, and strategy rebalancing—are entirely governed by smart contracts, without manual oversight or discretionary decision-making by any human operator. AFI does not take custody of user funds at any point, nor does it provide investment advice, guarantees, or assurances regarding any returns or capital preservation.
Use of the AFI Platform is entirely at the user’s own risk, and users are expected to understand the decentralized and experimental nature of smart contract-based financial technologies before participating.
2. Eligibility
By accessing or using the AFI platform, you represent and warrant that you meet all of the following eligibility criteria:
You are at least 18 years old or have reached the age of legal majority under the laws of your jurisdiction;
You possess the full legal capacity and authority to enter into and be bound by these Terms, and to use the AFI platform without violating any applicable laws or regulations;
You are not a citizen, resident, or located in any country, territory, or jurisdiction where the use of decentralized finance (DeFi) platforms, smart contracts, or digital asset-related services is prohibited, restricted, or unauthorized under local law, including but not limited to jurisdictions subject to comprehensive sanctions, embargoes, or regulatory bans.
It is your sole responsibility to ensure that your access to and use of AFI complies with all applicable laws, regulations, and restrictions in your location. AFI does not monitor or control user locations and disclaims all liability for any unauthorized or unlawful use of the platform.
AFI reserves the right to restrict or revoke access to its services for any user who fails to meet these eligibility criteria or who, in AFI’s sole discretion, poses a legal, regulatory, or reputational risk to the platform.
3. Use of the Platform
3.1 Wallet Connection and Smart Wallet Deployment
To access the AFI Protocol, you are required to connect a supported non-custodial wallet (such as MetaMask) to the AFI interface ("User Interface"). Upon successful connection, the platform will automatically deploy a dedicated ERC-4337-compatible smart wallet that is uniquely associated with your external wallet address ("Smart Wallet").
This Smart Wallet serves as your personal programmable agent on-chain and is utilized to:
Receive, manage, and hold deposits made by you;
Interact with AFI’s algorithmic strategies and other smart contracts;
Hold afiUSD, the protocol’s yield-bearing token representing your position in the AFI Vaults and strategies.
3.2 Smart Wallet Permissions and User Authorizations
By using the platform and connecting your wallet, you expressly authorize AFI’s interface and smart contract infrastructure to:
Initiate the deployment of your personal Smart Wallet;
Request and manage permissioned access to a defined portion of your funds for the purpose of executing yield strategies;
Enable the Smart Wallet to operate autonomously in accordance with on-chain logic, including the ability to deposit, withdraw, rebalance, or interact with third-party protocols strictly within the scope of AFI’s strategy modules.
You retain full control of your externally owned account (EOA), and all interactions between your EOA and the Smart Wallet require your active approval or pre-consented delegation.
3.3 Non-Custodial Framework and Limitation of Responsibility
You acknowledge and agree that:
AFI does not have custody of your assets at any point;
AFI does not possess your private keys, seed phrases, or credentials;
The Smart Wallet operates entirely based on autonomous smart contract logic, and AFI cannot access, alter, or override its operations.
You are solely responsible for the security of your connected wallet and Smart Wallet. AFI disclaims all liability for any loss of access, loss of funds due to user error, third-party vulnerabilities, or incorrect authorizations initiated from your end.
4. Yield and Performance
AFI offers access to automated, algorithmic DeFi strategies designed to seek yield by deploying user-deposited stablecoins (currently USDC) across integrated third-party protocols. However, AFI makes no representation, warranty, or promise regarding the actual yield generated or the overall performance of any strategy.
The afiusd token, received in exchange for stablecoin deposits, is a yield-bearing vault token whose value fluctuates based on:
The success or failure of yield-generating strategies;
On-chain market volatility;
The security, uptime, and liquidity of third-party DeFi protocols used (e.g., Pendle, Euler Finance).
Users must understand that:
The value of afiusd may increase or decrease;
There is no guarantee of positive returns, profit, or preservation of principal;
Yield, if any, is variable and subject to real-time market conditions and smart contract execution risks.
Before interacting with the AFI platform, users are strongly advised to assess their own risk tolerance, conduct independent due diligence, and consider seeking advice from qualified financial or legal professionals.
AFI disclaims all liability for any direct, indirect, or consequential loss resulting from performance outcomes or market volatility affecting afiusd or the underlying strategies.
5. Third-Party Protocol Disclaimer
AFI’s platform interacts with a range of external decentralized finance (DeFi) protocols, including but not limited to Pendle, Euler Finance, and other third-party smart contract systems. These integrations are implemented through autonomous, non-custodial smart contracts that deploy user funds in accordance with algorithmic strategies.
Users acknowledge and agree that:
These third-party protocols are entirely independent and are not owned, operated, maintained, or directly controlled by AFI or any of its affiliates, contributors, or developers;
AFI provides no warranties or guarantees regarding the security, functionality, accuracy, or uptime of any third-party platform or smart contract;
AFI’s integration with such protocols does not imply any endorsement, partnership, vetting, or certification of their practices, security standards, or regulatory status;
Each third-party platform may be subject to its own risks, including but not limited to:
Smart contract vulnerabilities
Protocol-level failures
Exploits, hacks, or liquidity shortfalls
Governance changes or deprecation
By using AFI, users assume full responsibility for any consequences resulting from their interaction with these third-party protocols. This includes the risk of partial or total loss of deposited assets, failure of afiusd to retain value, or inability to redeem funds due to protocol-side issues.
AFI disclaims all liability for any damage, loss, or disruption resulting from the use of or reliance on any external platform or service integrated with the AFI ecosystem.
6. Smart Contract and Automation Risks
AFI is a fully autonomous and non-custodial platform that operates exclusively through smart contracts and algorithmic agents. All transactions, fund deployments, and yield strategies are executed programmatically without any human intervention or manual oversight.
By using the AFI platform, you acknowledge and accept the following risks:
Autonomous Execution: Once you deposit assets (such as USDC), those funds are routed through AFI’s smart contracts and deployed across third-party DeFi protocols automatically. No individual or team member of AFI can manually intervene, pause, or reverse these operations.
Inherent Smart Contract Risks: Smart contracts are experimental technologies and may contain:
Undiscovered bugs or vulnerabilities
Logic or execution errors
Compatibility issues with integrated DeFi protocols
Security Limitations: Despite internal testing and audits (if applicable), no smart contract can be guaranteed to be entirely free of risk. Exploits, flash loan attacks, and zero-day vulnerabilities in AFI or any connected protocol could result in the permanent loss of funds.
No Recovery Mechanism: AFI does not maintain any control over user funds once they are deposited into smart contracts. In the event of a system failure, hack, or loss through a third-party protocol, AFI cannot retrieve, reimburse, or insure lost assets.
By using the platform, you accept these risks in full and agree that you are solely responsible for any financial exposure or losses incurred. Users are advised to carefully assess their risk tolerance and consult with independent financial, legal, or technical advisors before interacting with the AFI platform.
7. Regulatory Compliance
AFI is a decentralized, autonomous protocol that operates globally without centralized control or jurisdictional restrictions. AFI does not provide legal, tax, or regulatory advice, and makes no representations regarding the legality of its services in any specific jurisdiction.
By accessing and using AFI, you expressly acknowledge and agree that:
Personal Legal Responsibility: You are solely and entirely responsible for determining whether your access to and use of the AFI platform is legal and compliant with all applicable laws, regulations, rules, and administrative guidance in your country, region, or jurisdiction.
No Guarantees or Warranties: AFI does not assess, ensure, or warrant the regulatory status, licensing, or compliance of any third-party DeFi protocol integrated within its ecosystem. Participation in the AFI platform is at your own discretion and risk.
Tax Compliance: You are solely responsible for reporting and paying any taxes associated with your activity on the platform, including but not limited to income, capital gains, or transaction-based taxes as required by your local authorities.
Restricted Jurisdictions: You agree not to use AFI if you are located in, incorporated in, or a citizen or resident of any jurisdiction where the use of decentralized finance (DeFi) platforms, smart contracts, or similar technologies is restricted, regulated, or prohibited by applicable law.
By continuing to interact with AFI, you confirm that you have conducted your own legal due diligence and accept full liability for any consequences resulting from non-compliant or unlawful use of the platform.
8. No Investment Advice
All content, features, and tools made available on the AFI platform are provided for informational and technical purposes only. Nothing presented by AFI—whether through its interface, documentation, dashboards, analytics, or smart contracts—should be interpreted as:
Investment advice
Financial planning guidance
A recommendation to buy, sell, or hold any digital asset
An offer or solicitation to participate in any investment product or service
AFI does not act as a broker, dealer, investment advisor, or fiduciary under any jurisdiction’s laws. Users are solely responsible for evaluating their individual financial situation, risk appetite, and investment goals.
We strongly recommend that users seek advice from independent financial, legal, and tax professionals before making decisions related to digital asset participation, DeFi strategies, or use of yield-generating protocols.
Your use of the AFI platform is entirely at your own discretion and risk. AFI disclaims any liability for decisions made or outcomes experienced by users based on information obtained through the platform.
9. Indemnity
To the fullest extent permitted by applicable law, you agree to indemnify, defend, and hold harmless AFI, including its developers, ecosystem contributors, affiliates, partners, and service providers (collectively, “AFI Parties”) from and against any and all claims, actions, demands, liabilities, damages, losses, costs, or expenses, including but not limited to reasonable legal and accounting fees, arising out of or relating to:
Your use or misuse of the AFI platform, smart contracts, website, or any associated tools and services
Any violation or alleged violation of these Terms by you or anyone using your wallet or smart wallet on the AFI platform
Your breach of any applicable laws, regulations, or third-party rights, including those governing digital assets, securities, financial services, or data privacy
Your interaction with third-party DeFi protocols, platforms, or smart contracts integrated within AFI, including but not limited to any financial or data loss arising from such protocols
AFI reserves the right, at its sole discretion and at your expense, to assume the exclusive defense and control of any matter subject to indemnification by you. In such cases, you agree to cooperate fully with AFI in asserting any available defenses.
This indemnity obligation will survive the termination or expiration of your use of the AFI platform.
10. Limitation of Liability
To the maximum extent permitted under applicable law, you expressly agree that:
AFI and its affiliates, developers, contributors, and partners (collectively, the “AFI Parties”) shall not be liable for any indirect, incidental, special, exemplary, punitive, or consequential damages, including but not limited to loss of funds, lost profits, lost data, loss of business opportunities, or reputational harm
This limitation applies whether the claim arises from contract, tort, negligence, strict liability, or any other legal theory, and regardless of whether AFI was advised of, or could have foreseen, the possibility of such damages
Specifically, AFI shall not be liable for any damages arising from:
Failure, vulnerability, or exploit of any smart contract on or integrated with the platform
Operational risks associated with third-party DeFi protocols
User errors, including loss of private keys or incorrect wallet interactions
Temporary or permanent inaccessibility of the AFI platform
Regulatory actions or legal prohibitions that affect your ability to use the platform or access your assets
In jurisdictions where the exclusion or limitation of liability for consequential or incidental damages is not allowed, AFI’s total aggregate liability to you for any and all claims shall be limited to no more than the amount you have directly deposited through the platform in the 30 days preceding the event giving rise to the claim.
11. Changes to the Terms
AFI reserves the right to modify, amend, or update these Terms of Use at any time, at its sole discretion. Any such changes will be effective immediately upon being published on the AFI website or user interface, unless stated otherwise.
By continuing to access or use the AFI platform after such changes are made, you agree to be bound by the updated Terms.
AFI is under no obligation to provide you with individual notice of changes. It is your sole responsibility to review these Terms periodically to ensure that you understand and agree to the latest version.
If you do not agree with the updated Terms, your only recourse is to discontinue use of the AFI platform and associated services.
These Terms represent a legally binding agreement between you and AFI. Continued use constitutes reaffirmation of your acceptance.
12. Termination
AFI reserves the right, at its sole discretion, to suspend, restrict, or terminate your access to the platform and its services at any time, with or without prior notice, under any of the following circumstances:
Suspected violation of these Terms of Use
Engagement in unlawful, fraudulent, or abusive activities
Actions that may compromise the security, integrity, or functionality of the AFI platform or any third-party protocol integrated within it
Compliance with legal, regulatory, or enforcement requests or obligations
Upon termination:
Your access to the AFI smart wallet, afiusd tokens, and associated services may be disabled
AFI shall not be liable for any resulting loss of access, data, or funds, especially if tied to smart contract operations beyond AFI’s control
Your obligations under these Terms—including indemnity, disclaimers, and limitations of liability—will survive termination
Termination is without prejudice to any other rights or remedies available to AFI under applicable law.
13. Governing Law and Jurisdiction
These Terms shall be governed by, and construed in accordance with, the laws of Nevis, without regard to its conflict of law provisions.
You agree that any disputes, controversies, or claims arising out of or in connection with your use of the AFI platform, these Terms, or any related matter shall be subject to the exclusive jurisdiction of the courts of Nevis.
You hereby waive any objection to the venue or jurisdiction of such courts, including objections based on forum non conveniens or lack of personal jurisdiction.
14. Contact Information
If you have any questions, concerns, or feedback regarding these Terms or the AFI platform, please reach out to us through the following channels:
📧 Email: [email protected] 🌐 Website: afiprotocol.ai
We welcome responsible disclosure of any security concerns or vulnerabilities related to AFI's smart contracts or platform.
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