Terms of Use for Bailment

Definitions

Capitalized terms used in these Bailment Terms but not defined herein, shall have the meanings ascribed to them under the Terms of Service. Capitalized terms, not defined elsewhere in these Bailment Terms, shall mean as follows:

“Bailment Period” shall mean a period of 1 (one) year commenting at the time of the commencement of the Bailment Services and shall be automatically extended for further periods 1 (one) years at the time of completion, unless terminated in accordance with the terms hereof;

“Bailment Services” means the bailment of the Bailed Gold by a User to a Partner for the payment of the Rental;

“Bailed Gold” means the Digital Gold which is provided by the User to the Partner for the Bailment Service;

“End User” means jewelers or other users of the Physical Gold who shall be provided the Physical Gold by the Partner pursuant to the Bailment Services;

“Person” shall mean any natural person, limited or unlimited liability company, corporation, partnership (whether limited or unlimited), proprietorship, Hindu undivided family, trust, union, association, government or any agency or political subdivision thereof or any other entity that may be treated as a person under applicable law;

“Platform” means the mobile / web application and web-based platform owned and operated by MyGold, including any updates thereof, to be used for the provision of the Services;

“Physical Gold” means the gold obtained by the Partner by the conversion / liquidation of the Digital Gold of the User for provision of the Bailment Services;

“Services” shall have the meaning ascribed to them under the Terms of Service;

“Rental” shall mean the rent payable to the User by the Partner for the Bailed Gold, in the form of Digital Gold, pursuant to the bailment of the Bailed Gold, as specified to the User on the Platform;

“Terms of Service” means the terms of use of the Platform, as specified MyGold;

Provision of the Physical Gold to the Partner

1. By availing of any Bailment Service, the User authorizes MyGold to provide the Bailed Gold selected by the User to the Partner. For facilitating such provision of the Bailment Service, the User agrees and understands that MyGold is merely acting as a facilitator to provide the same to the Partner for and on behalf of the User.


2. By availing of any Bailment Service, the User agrees and directs that the records of transfer and ownership of the Bailed Gold may be modified or altered to provide such Bailed Gold to the Partner for conversion into Physical Gold/digital gold as the case may be, for the provision of the Bailment Services. The User agree and accept that MyGold and such Partners shall be entitled to do all acts, deeds and things, as may be required to give effect to the same and the User shall be bound by such actions.


3. Notwithstanding anything to the contrary contained in these Bailment Terms, it is hereby expressly understood by the User that MyGold and the Partners shall have no obligation to facilitate any provision of any Bailment Services and shall have complete discretion to refuse any request for provision of Bailment Services at any time without giving any reason for such refusal and shall incur no liability in respect of any such refusal.

Use of the Bailment Services

1. The User may request for the availing of the Bailment Services for any Digital Gold held by the User recorded on the Platform and the User may submit a request, in the form specified on the Platform, whereby, the User has to specify inter alia (a) the quantity of Bailed Gold, provided that such quantity shall at all times be more than the minimum quantity (if applicable) indicated on the Bailment Terms (b) the User’s acceptance of the Bailment Terms, and (c) such other particulars and requirements specified by MyGold.


2. The Partner shall be responsible for the payment of the specified Rental and is hereby authorized to provide the Physical Gold to the End Users, as determined by the Partner, on a sub-bailment basis. The User agrees and accepts that in connection with such Bailment Services, the User shall be provided details of such Bailment Services as specified by MyGold and all return on the Digital Gold in the manner specified by MyGold and the Partners. The Digital Gold and the applicable Rental may be converted or used in the manner permitted by MyGold.


3. The User represents that the User has good title over the Digital Gold and is entitled to avail of the Bailment Services in respect of the Bailed Gold. The User shall be returned the Digital Gold with the applicable Rental only on the completion of the Bailment Period. In case the User makes any redemption or termination request before termination or completion of the Bailment Period, MyGold and the Partners are not obligated to honour any such request for redemption or return. Any such return may be subject to charges, penalties, terms and limitation as specified by the MyGold and the Partners.


4. The User acknowledges that the User’s acceptance of the Bailment Terms and the provision of the request for any Bailment Services shall be adequate proof confirming the User’s intention to provide the Bailed Gold on bailment in accordance with the terms contained herein read with the relevant Terms of Service. MyGold shall make all best efforts to provide uninterrupted access to the Platform. In the event of interruption to the Platform, MyGold shall use best endeavours to restore the Platform as soon as reasonably possible. The User agrees and acknowledges that no warranty of any kind, implied, express or statutory, including but not limited to the warranties of non-infringement of third party rights, title, merchantability, satisfactory quality or fitness for a particular purpose, is given in conjunction with the Platform and the Bailment Services are provided on an “as is”, “where is”, “with all faults” basis.

Calculation of rental

1. The User agrees and understands that based on the Bailed Gold which has been provided to the Partner pursuant to the Bailment Service, the Partner shall pay the Rental to the User and sub-bail the same to End Users. The return shall be paid in from of Digital Gold and calculated on daily/monthly basis and accrue from day to day/month to month and shall be computed on the basis of 365 (Three Hundred and Sixty-Five) days a year and the actual number of days elapsed.


2. The User agrees and understands that the Rental shall be reflected in the relevant grams of Digital Gold which shall be credited and reflected on the User’s account on the Platform.

THE USER UNDERSTANDS AND AGREES THAT MYGOLD AND THE PARTNERS DO NOT MAKE ANY DEDUCTIONS OR FILINGS ON YOUR BEHALF PURSUANT TO THE PAYMENT OF ANY RETURN ON THE USER’S BAILED GOLD. THE USER SHOULD CONSULT THE USER’S TAX ADVISORS TO DETERMINE THE TAX LIABILITY ON THE INCOME EARNED FROM THE RETURN EARNED ON THE BAILED GOLD.

Rights Granted

1. The Partners or MyGold is not obligated to disclose to the User or provide any information to the User on the terms of the sub-bailment executed with the Partners or any other information relating to the transactions entered into between the MyGold, the Partners and the End Users.


2. For purpose of effectuating the bailment of the Physical Gold to End Users, the User hereby grants and authorises the Partners to (a) receive the Physical Gold from the Digital Gold; (b) handover the Physical Gold to the End Users and enter into arrangements with End Users; and (b) undertake all such activities that may be required to be undertaken by the Partner to effectuate the transaction contemplated under the Bailment Terms. As a part of the Bailment Service, the User agrees and accepts that the Bailed Gold may be sold, disposed, leased or otherwise transferred by the Partners, provided that, the Partner shall ensure any such Bailed Gold is replaced with an equivalent amount of gold at the time of any redemption, return or withdrawal, and the User agrees and accepts that the User shall be bound by any such action taken by the Partner.


3. Subject to the other provisions of these Terms of Service and except as provided herein, it is clarified that there shall be no transfer of title or legal ownership of the Bailed Gold or the Physical Gold from the User to the Partner or End User at any time.

Hold harmless

1. The User agrees and understands that MyGold is a facilitator, facilitating the Bailment Services. The User has agreed to provide the Bailed Gold on a bailment at the User’s sole risk and have read these Bailment Terms and are aware of the consequences thereof.


2. The User hereby releases and agrees to hold harmless MyGold, the Partners, and their respective affiliates/group companies, its directors, officers, employees, agents, successors, advisors, consultants, representatives, and assigns from any and all claims, losses, related suits, actions, proceedings, investigations, judgments, deficiencies, damages, settlements, liabilities, reasonable legal fees and expenses incurred, due to the User’s acts or omissions.

Change in law

The User understands and agrees that the Bailment Services is at present not regulated by any applicable law and there are no specific guidelines regulating the same by the Reserve Bank of India (“RBI”) and/or any other regulatory authority. The User understands and agrees that, if any introduction or change in the interpretation of any applicable law issued by RBI or any other governmental authority (“Change in Law”) (a) affects the User, MyGold or the Partner directly or indirectly, including without limitation, with respect to (i) increasing the cost to MyGold or the Partner of performing its obligations hereunder; (ii) reducing any amount received or receivable by the User; or (iii) changes the effective return of the Digital Gold to be received by the User; or (b) makes it illegal for the User to provide the Digital Gold on a bailment basis or otherwise deal in Digital Gold or Physical Gold or it becomes illegal for the End User to avail the bailment from the Partner, then MyGold or the Partner may in their sole discretion, terminate this engagement and these Bailment Terms, including any engagement with the End Users and return the Bailed Gold or equivalent value. The User acknowledges and understand that any loss suffered by the User pursuant to such Change in Law shall be at the User’s sole risk.

DISCLAIMER

THE USER UNDERSTANDS AND AGREES THAT USE OF THE PLATFORM AND THE AVAILING OF THE BAILMENT SERVICES IS AT THE USER’S SOLE RISK. MYGOLD OR THE PARTNER DOES NOT GUARANTEE ANY RETURNS, ON ANY BAILMENT SERVICES CONSUMMATED VIS-À-VIS THE PLATFORM, TO ANY PERSON, EITHER DIRECTLY OR INDIRECTLY. THE USER SHALL BE SOLELY RESPONSIBLE FOR UNDERTAKING APPROPRIATE AND EFFECTIVE ANALYSIS BEFORE UNDERTAKING ANY BAILMENT OF ANY DIGITAL GOLD PURSUANT TO THESE BAILMENT TERMS. THE USER FURTHER ACKNOWLEDGE AND AGREE THAT MYGOLD, THE PARTNER, OR THEIR RESPECTIVE AFFILIATES AND THEIR RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES AND AGENTS SHALL HAVE NO LIABILITY TO THE USER OR ANY OTHER PERSON FOR THE BAILMENT OF ANY BAILED GOLD OR OTHER DECISIONS IN RELATION THERETO WHILST USING THE PLATFORM.

THE USER FURTHER UNDERSTANDS AND AGREES THAT UNDER THIS ARRANGEMENT AND PURSUANT TO THE AVAILING OF THE BAILMENT SERVICES, THE USER AT ALL TIMES RETAIN THE TITLE OF, AND REMAIN THE OWNER OF, THE BAILED GOLD AND ANY RESULTANT RENTAL AND THAT REPAYMENT WITH RESPECT TO THE BAILED GOLD WILL BE MADE IN GRAMS AND DEPENDS ON THE CHANGE IN PRICE OF GOLD.