Usage Policy

1. Purpose and Limitations

ElecBitX hardware wallets are designed exclusively for the secure offline storage of cryptocurrency and NFT private keys. Our devices serve a single, focused purpose: protecting your digital asset keys from online threats.

1.1 What Our Devices Do

• Store private keys securely offline using isolated secure-element chips
• Generate and manage cryptographic keys for supported blockchain networks
• Provide secure transaction signing capabilities
• Enable secure backup and recovery through seed phrases
• Support PIN and passphrase protection mechanisms

1.2 What Our Devices Do NOT Provide

• Cryptocurrency buying, selling, or trading services
• Exchange or swap functionality
• Custodial services or asset management
• Market data, price information, or investment advice
• Direct connection to cryptocurrency exchanges
• Automated trading or portfolio management features

Important: Users must obtain cryptocurrency through separate, compliant exchanges or services. Our devices only store the keys to access assets you already own.

2. Security Architecture

ElecBitX hardware wallets implement multiple layers of security to protect your private keys from both physical and digital threats.

2.1 Isolated Secure-Element Chip

• Dedicated cryptographic processor separate from main system
• No permanent internet connection or network access
• Tamper-resistant hardware design with physical attack detection
• Secure key generation using hardware-based entropy
• Encrypted storage of private keys within the secure element

2.2 Multi-Layer Authentication

• PIN Protection: Numeric PIN required for device access
• Passphrase Support: Optional additional passphrase for enhanced security
• Physical Confirmation: Manual confirmation required for transactions
• Time-Based Lockouts: Progressive delays after incorrect PIN attempts

2.3 Backup and Recovery System

• Seed Phrase Generation: 12, 18, or 24-word recovery phrases generated offline
• BIP39 Compliance: Industry-standard mnemonic phrase format
• Offline Generation: Seed phrases created without network connectivity
• User Responsibility: Secure storage of seed phrase is entirely user's responsibility

2.4 Open-Source Firmware

• Transparent, auditable codebase available for public review
• Regular independent security audits by third-party experts
• Community-driven security improvements and vulnerability reporting
• Reproducible builds to verify firmware integrity

3. Legal Requirements and Compliance

While ElecBitX hardware wallets themselves are not subject to KYC/AML regulations as they are storage devices, users must understand and comply with all applicable laws.

3.1 Device Classification

• Hardware wallets are classified as cryptographic storage devices
• Not considered financial services or money transmission devices
• Subject to import/export regulations for cryptographic equipment
• May require declarations when crossing international borders

3.2 User Legal Responsibilities

• Local Law Compliance: Users must comply with cryptocurrency regulations in their jurisdiction
• Tax Obligations: Users responsible for reporting and paying taxes on cryptocurrency gains
• Import/Export Rules: Compliance with customs regulations when traveling with devices
• Prohibited Uses: Devices must not be used for illegal activities
• Sanctions Compliance: Users must not violate international sanctions

3.3 Jurisdictional Considerations

• Some countries prohibit or restrict cryptocurrency use
• Import restrictions may apply to cryptographic devices
• Professional advice recommended for complex legal situations
• Users responsible for understanding local regulations

4. Risks and Liability Limitations

Users must understand the inherent risks associated with cryptocurrency storage and the limitations of manufacturer liability.

4.1 Seed Phrase Responsibility

• Critical Importance: Seed phrase is the only way to recover access to assets
• Permanent Loss: Loss of seed phrase means permanent, irreversible loss of all assets
• No Recovery Service: ElecBitX cannot and will not recover lost seed phrases
• Secure Storage: Users must store seed phrases securely and privately
• Multiple Backups: Recommended to create multiple secure backups

4.2 Market and Technical Risks

• Market Volatility: Cryptocurrency values can fluctuate dramatically
• Network Changes: Blockchain networks may undergo changes affecting compatibility
• Technology Evolution: Cryptographic standards may evolve over time
• User Error: Incorrect usage may result in loss of access to assets

4.3 Manufacturer Liability Limitations

• ElecBitX is not responsible for cryptocurrency market values or fluctuations
• No liability for user errors, lost seed phrases, or forgotten PINs
• Limited warranty covers hardware defects only, not user-related issues
• Users assume full responsibility for asset security and legal compliance

5. Setup and Initial Configuration

Proper setup is crucial for security. Follow these guidelines for initial device configuration.

5.1 Device Authenticity Verification

• Verify device packaging and security seals before use
• Check device serial number against manufacturer records
• Confirm firmware authenticity using provided verification tools
• Report any signs of tampering immediately

5.2 Offline Seed Generation

• Generate seed phrase in completely offline environment
• Never enter seed phrase on internet-connected devices
• Write seed phrase on paper, never store digitally
• Verify seed phrase accuracy before finalizing setup

5.3 Security Configuration

• Set strong, unique PIN (avoid common patterns)
• Consider using optional passphrase for additional security
• Test recovery process with small amounts first
• Keep firmware updated to latest secure version

6. Ongoing Support and Maintenance

ElecBitX provides ongoing support for proper device usage and maintenance.

6.1 Firmware Updates

• Regular security updates and feature improvements
• Notification system for critical security updates
• Verification process for firmware authenticity
• Backward compatibility with existing seed phrases

6.2 Network Compatibility

• Support for major cryptocurrency networks
• Regular addition of new supported cryptocurrencies
• Compatibility testing with popular wallet software
• Documentation for supported features and limitations

6.3 Customer Support Channels

• Technical support for device operation and setup
• Documentation and user guides
• Community forums for user assistance
• Professional support for institutional customers

7. Advertising and Marketing Compliance

Our marketing and advertising practices comply with regulatory requirements and industry standards.

7.1 Google Ads Compliance

• Advertisements promote only key-storage functionality
• No mention of trading, exchange, or investment services
• Clear disclosure of device limitations and user responsibilities
• Compliance with cryptocurrency advertising policies

7.2 Marketing Disclaimers

• Clear statements about device purpose and limitations
• Disclosure of risks associated with cryptocurrency storage
• No guarantees about investment returns or market performance
• Emphasis on user responsibility for legal compliance

8. Prohibited Uses

ElecBitX hardware wallets must not be used for illegal activities or in violation of applicable laws.

8.1 Illegal Activities

• Money laundering or terrorist financing
• Tax evasion or unreported income
• Sanctions violations or prohibited transactions
• Fraud, theft, or other criminal activities

8.2 Misuse of Device

• Attempting to reverse engineer or modify firmware
• Using device in jurisdictions where prohibited
• Sharing or selling access to stored private keys
• Using device for commercial key storage services without authorization

9. Contact Information

For questions about this Usage Policy or device operation, please contact us:

10. Policy Updates

This Usage Policy may be updated periodically to reflect changes in our products, services, or applicable regulations. Users will be notified of material changes through our website and support channels.

Continued use of ElecBitX hardware wallets after policy updates constitutes acceptance of the revised terms.