These Balance Protection Program Terms (the "Program Terms") form part of, and are incorporated into, the Aave App Terms of Service. By using the Aave App, you agree to these Program Terms. Capitalised terms not defined here have the meaning given in the Terms of Service.
1. What the Program Is — and What It Is Not
1.1 The Balance Protection Program (the "Program") is a discretionary customer reimbursement program operated by Aave Interfaces Ltd ("we", "us", "our"). Under the Program, Eligible Customers may receive reimbursement for certain losses of Protected Assets arising from a Protected Event, subject to and in accordance with these Program Terms. The Program does not guarantee reimbursement in any circumstances.
1.2 The Program is not an insurance policy issued by us, and we are not an insurer, reinsurer, insurance intermediary, agent or broker. We do not sell, arrange, advise on or distribute insurance to you, and you do not pay any premium or other charge for the Program. Nothing in these Program Terms creates a contract of insurance between you and us or between you and any third party, and the Program operates independently from, and may be narrower in scope than, any underlying insurance obtained by us.
1.3 To support the Program, we have, at our own initiative and expense, obtained and/or established one or more risk-transfer and risk-retention arrangements, which may include insurance policies underwritten by third-party insurers, reinsurance arrangements, and/or a captive or segregated account (self-insurance) arrangement in which we act as cell owner or participant (together, and as may be amended, replaced, added to or restructured from time to time, the "Supporting Policy"), under which we (or an affiliate or trustee acting on our behalf) are the sole named insured, policyholder, cell owner or participant, as applicable. You acknowledge and agree that:
(a) the Supporting Policy is subject to its own conditions, limitations, exclusions and, in respect of any captive or self-insurance layer, funding arrangements;
(b) only Eligible Customers, as determined under these Program Terms and the Supporting Policy, may benefit from the Program;
(c) any amounts we recover under the Supporting Policy for the benefit of Eligible Customers are held by us on a discretionary trust for Eligible Customers, and although Eligible Customers may be beneficiaries of that discretionary trust, you are not the named insured or policyholder under the Supporting Policy, you have no contractual relationship with the insurer, and you have no right to bring any claim against the insurer under the Supporting Policy, whether directly, indirectly, or by subrogation or assignment; and
(d) recovery under the Supporting Policy is subject to all terms, conditions, exclusions, sub-limits, retentions and insurer determinations, and we make no representation that any particular Loss will be recoverable under the Supporting Policy.
1.4 Your sole legal relationship in respect of the Program is with us, and your rights are limited to those expressly set out in these Program Terms.
1.5 Entire terms; no reliance. The Program is governed by these Program Terms, together with the Aave App Terms of Service and the Aave App Privacy Policy, each of which is incorporated into these Program Terms by reference. These Program Terms contain the additional and specific terms applicable to the Program and, to the extent of any conflict relating to the Program, prevail over the Aave App Terms of Service. No marketing material, website content, blog post, FAQ, social media post, community communication or statement by any of our employees, contractors, support staff or representatives varies these Program Terms, the Aave App Terms of Service or the Aave App Privacy Policy, creates any additional entitlement, or constitutes any representation, warranty or guarantee regarding the Program or the safety or security of any asset. Nothing in these Program Terms excludes or limits any right or remedy to the extent that applicable law prohibits such exclusion or limitation.
1.6 No deposit insurance or government guarantee. The Program is not deposit insurance and is not provided, administered, endorsed or guaranteed by the U.S. Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA), the UK Financial Services Compensation Scheme (FSCS), any deposit guarantee scheme of the European Union or any other jurisdiction, or any other governmental, regulatory or statutory body. The Program should not be compared or equated to any such scheme. Protected Assets are not deposits, are not held in a bank or credit union account, and are not eligible for protection under any deposit insurance or investor compensation scheme in any jurisdiction. Unlike statutory deposit insurance — which is typically funded through mandatory contributions from financial institutions, backed by a government authority, and paid automatically up to a fixed amount without discretion — reimbursement under the Program is entirely discretionary, is funded solely from arrangements we choose to establish and maintain at our own initiative, is not guaranteed in any amount or in any circumstance, and may be reduced, delayed or unavailable as described in these Program Terms.
2. Definitions
"Balance Protection" means the feature made available by us in the Aave App and designated as "Balance Protection", as described in the Aave App from time to time.
"Account Withdrawal Halting" means you being unable to withdraw Protected Assets from your Controlled Account for more than thirty (30) consecutive calendar days, as a direct result of the loss, or inaccessibility, of cryptographic keys that are required to authorise transactions by way of signing or to cryptographically enable withdrawal execution.
"Computer System" means any computer, hardware, software, application, smart contract, dApp, communication system, electronic device, server, cloud infrastructure or microcontroller, including any similar system or configuration and any associated output, data storage device, networking equipment or backup facility, that is operated by us and either owned or integrated by us or by a technology service provider engaged by us under a written contract.
"Controlled Account" means an Aave App account associated with you.
"Covered Protocols" means the Aave v3 and Aave v4 protocols, including their governance-approved deployments and upgrades, and no other protocol, decentralised exchange or third-party application.
"Customer Claim Form" means the claim form we make available to you upon registration of a Controlled Account (or otherwise following a Protected Event), to be completed and submitted by you in accordance with Section 8.
"dApp" means a type of software application that uses blockchain technology to execute operations without reliance on a central authority or an intermediary, including, but not limited to, its smart contracts, governance-approved deployments and upgrades, associated front-end interfaces, supporting infrastructure, and any integrated third-party blockchain components, such as oracles, data feeds, custody, execution, bridging, swapping, account abstraction, stablecoin issuance or transfer, or yield-bearing functionality. This includes the Covered Protocols and no other protocol, decentralised exchange or third-party application.
"Eligible Customer" means a person who satisfies all of the conditions in Section 3 at the relevant times.
"Loss" means the value of Protected Assets that you can no longer withdraw from your Controlled Account as a direct result of a Protected Event, as determined in accordance with Section 9.
"Network Security Breach" means (i) unauthorised access to, or unauthorised use of, (ii) the transmission to, or receipt of malicious code by, or (iii) the exploitation of a security vulnerability in, a Computer System.
"Program Effective Date" means 01 June 2026.
"Protected Assets" means, while held in your Controlled Account: (i) GHO (Aave) stablecoin; (ii) USDT (Tether) stablecoin; (iii) USDC (Circle) stablecoin; and (iv) any other stablecoin that we expressly designate in writing as a Protected Asset for the purposes of the Program, in each case irrespective of whether such asset constitutes a “covered asset” or equivalent concept under the Supporting Policy. No other asset, token or balance of any kind is a Protected Asset.
"Protected Event" means one or more of the following, in each case occurring after the Program Effective Date and while the Program is in operation: (i) a Network Security Breach; (ii) a Technology Wrongful Act; or (iii) Account Withdrawal Halting.
"Technology Wrongful Act" means any actual or alleged negligent act, error or omission, including any unintentional breach of a contractual obligation by us, or negligent design, configuration, parameterisation or security architecture of the Computer System, that results in the failure of our technology to perform its function or serve its intended purpose, committed by us, or by any third party for whom we are legally liable, during our delivery of the Aave App.
3. Eligibility
You are an "Eligible Customer" in respect of a Protected Event only if you satisfy both Baseline Eligibility (Section 3.1) and Tier Qualification (Section 3.2) at the relevant times.
3.1 Baseline Eligibility. The following conditions apply to every participant in the Program, regardless of tier. Satisfying Baseline Eligibility is a precondition to participation in the Program; on its own, it does not entitle you to any Applicable Cap, which is determined separately under Section 3.2.
(a) you are a natural person who has accepted the Aave App Terms of Service and holds a Controlled Account;
(b) you are not a resident of, located in, or accessing the Aave App from any jurisdiction that is subject to comprehensive sanctions, that we have designated as excluded from the Program, or in which the operation of the Program would breach applicable law, and you have not been refused, or had revoked, identity verification under Section 8.3;
(c) two-factor or multi-factor authentication was enabled on your Controlled Account before, and remained enabled at the time of, the Protected Event, and your authentication methods did not include more than one text-based (SMS) authentication method;
(d) you have complied with your security obligations under Section 4 in all respects material to the Loss;
(e) you have successfully completed all steps of our identity verification process before formally submitting your Customer Claim Form, in accordance with Section 8.2;
(f) you have submitted your completed Customer Claim Form to us within ninety (90) days of the date of the Protected Event, in accordance with Section 8;
(g) you did not cause or contribute to the Protected Event;
(h) you have not previously received any reimbursement, compensation or recovery in respect of the same Loss, whether from us or any of our subsidiaries or affiliates, under the Program, or through any other recovery mechanism, protection arrangement, insurance or source of indemnification;
(i) you have not, at any time before or after the Protected Event, made any false, misleading or exaggerated representation to us regarding a compromised account or in connection with the Program,
in each case as determined by us acting reasonably and in good faith. A person who satisfies Baseline Eligibility in respect of a Protected Event but does not satisfy the requirements of any tier under Section 3.2 is not an Eligible Customer and has no entitlement to reimbursement under the Program; and
(j) you have complied, and continue to comply, in full with the Aave App Terms of Service, and have not breached any provision of the Aave App Terms of Service at any time before payment of any reimbursement under the Program. Any breach of the Aave App Terms of Service renders you ineligible for reimbursement under the Program, whether or not the breach caused or contributed to the Protected Event or the Loss.
3.2 Tier Qualification. In addition to satisfying Baseline Eligibility, you must qualify for a tier under the Tier Schedule (as defined in accordance with Section 7.1) in order to be an Eligible Customer entitled to reimbursement. Your Applicable Cap will be the cap corresponding to the highest tier for which you qualify as of the date of the Protected Event. Each tier's qualifying criteria, which may include, without limitation, a minimum Qualifying Balance maintained for a specified period, enhanced authentication requirements (such as use of a non-SMS authenticator application), and completion of specified account-security or Account Recovery features are set out in the Tier Schedule. We may introduce, remove, rename or amend tiers, and their qualifying criteria and Applicable Caps, from time to time in accordance with Section 10.1.
3.3 We may decline, reduce or recover any reimbursement where any condition in Section 3.1 or Section 3.2 is not, or is later found not to have been, satisfied.
4. Your Security Obligations
4.1 You must at all times: (a) keep your credentials, devices, recovery methods and authentication factors secure and confidential; (b) not share access to, or control of, your Controlled Account with any other person; (c) promptly notify us of any suspected unauthorised access to your Controlled Account or compromise of your credentials or devices; and (d) keep your contact details and identity-verification information accurate and current.
4.2 Failure to comply with this Section 4 may render you ineligible for reimbursement to the extent the failure caused or contributed to the Loss.
5. What Is Covered
5.1 Subject to these Program Terms (including the Exclusions in Section 6 and the Limits in Section 7), the Program covers Loss of Protected Assets suffered by an Eligible Customer as a direct result of a Protected Event.
5.2 For the avoidance of doubt, the Program does not cover theft, or any other loss or theft of assets resulting from compromise of your own devices, credentials, passwords, private keys or authentication methods, or from any transfer or withdrawal of assets to an address outside your control, however caused. This exclusion applies regardless of whether the relevant loss or theft constitutes theft or any other covered event under the Supporting Policy. The scope of the Program is determined solely by these Program Terms, which may be narrower than the Supporting Policy, and we may (but are not obliged to) expand the Program to cover some or all such losses in the future by amending these Program Terms in accordance with Section 10.1.
5.3 The Program applies only to Protected Assets held in your Controlled Account through the Covered Protocols. The Program does not apply to any asset held in, routed through, staked, supplied, swapped or otherwise transacted via any other protocol, decentralised exchange, bridge or third-party application (for example, CoW Swap), even where accessed through the Aave App, and no Loss arises in respect of any such asset.
5.4 Where a Loss results from a combination of a Protected Event and any other cause, including an excluded cause under Section 6, the Loss is covered only to the extent it would have occurred in the absence of that other cause, and we may apportion the Loss accordingly.
6. What Is Not Covered (Exclusions)
No reimbursement will be made under the Program for any amount:
(a) Fraud or misconduct — arising directly or indirectly from any fraudulent, dishonest, wrongful or negligent overstatement or misrepresentation in which you are involved or implicated;
(b) Governmental action — arising from the requisition, seizure, confiscation, nationalisation, destruction of, damage to or loss of use of a Computer System, or the shutdown of all or part of a Computer System or of our business operations, by order of any governmental or public authority;
(c) Indirect or consequential loss — comprising any indirect or consequential loss of any kind, including loss of profits, loss of opportunity, loss of yield, interest or rewards, or diminution in market value of any asset;
(d) Asset value and issuer events — comprising any diminution in the market value, price or peg of any Protected Asset, including any de-pegging, issuer insolvency, redemption suspension, freeze imposed by an issuer, or similar event affecting the asset itself rather than your ability to withdraw it as a result of a Protected Event;
(e) Infrastructure failure — arising directly or indirectly from (i) any electrical or mechanical failure or interruption of infrastructure, including any power interruption, outage, surge, spike, brownout or blackout; or (ii) any failure, suspension or sabotage of telephone lines, gas, water, cable, data transmission lines, satellites, internet service providers, cloud service providers or other telecommunications or networking infrastructure, including any Distributed Denial of Service attack or similar event targeting such infrastructure, except where the relevant infrastructure is under our operational control;
(f) War and state cyber operations — arising directly or indirectly from, or in any way related to: (i) war (whether declared or not); (ii) a cyber operation carried out as part of a war; or (iii) a cyber operation that causes a sovereign state to become an "impacted sovereign state", in each case as defined under the Supporting Policy; except that this exclusion does not apply to acts of cyber terrorism as defined under the Supporting Policy;
(g) Non-Protected Assets — comprising any portion of loss not derived from a Protected Asset;
(h) Prior or continuing events — arising from any event or circumstance that occurred, was discovered, or first manifested before the Program Effective Date, or from any loss that is the same as, related to, or a continuation of a loss that first occurred before the Program Effective Date;
(i) Other recoveries — to the extent you have recovered, or are entitled to recover, the same loss from any other source of compensation, indemnification or insurance; the Program operates strictly in excess of all such other valid and collectible sources;
(j) Retention gap — to the extent any Loss falls within any deductible or retention applicable under the Supporting Policy, including any per-event retention, unless and to the extent we elect, in our discretion, to fund such amount; or
(k) Kidnap and ransom — arising from any kidnap, ransom or other extortion payment surrendered to any person or entity as a result of a threat to do bodily harm to any natural person or a threat to do damage to premises or other property.
7. Program Limits
7.1 Per-customer limit; tiering. The maximum aggregate amount payable under the Program to any one Eligible Customer (the "Applicable Cap") depends on the tier for which you qualify under Section 3.2, and is determined in accordance with the tier schedule that we publish and maintain in the Aave App from time to time (the "Tier Schedule"). The Tier Schedule sets out, for each tier: (i) the qualifying criteria for that tier; and (ii) the corresponding Applicable Cap. Your "Qualifying Balance" is the lowest value of Protected Assets held in your Controlled Account (aggregated in accordance with Section 7.2) at any time during the thirty (30) consecutive calendar days immediately preceding the date of the Protected Event; a temporary increase in that value during the 30-day period does not increase your Qualifying Balance unless maintained continuously throughout the period.
As at the date of these Program Terms, the Tier Schedule comprises the following tiers (which we may amend, replace or add to from time to time in accordance with Section 10.1):
(a) "Base Tier" — an Applicable Cap of USD 100,000, subject to the qualifying criteria published in the Aave App, currently comprising the following: (i) a Qualifying Balance of at least USD 1,000; (ii) at the time of the Protected Event, the authentication methods enabled on your Controlled Account include a software-based authenticator application accepted by the Aave App, and do not include any text-based (SMS) authentication method; and (iii) the Account Recovery feature has been fully set up and remains active on your Controlled Account at the time of the Protected Event.
(b) "Gold Tier" (not yet available) — an Applicable Cap of USD 1,000,000. The qualifying criteria for Gold Tier comprise: (i) the qualifying criteria for the Base Tier set out in paragraph (a) above; and (ii) such additional criteria as we publish in the Aave App in advance of Gold Tier becoming available. The criteria in paragraph (ii), and the associated Gold Tier Applicable Cap, take effect only from the date they are so published. Until the criteria in paragraph (ii) are published and satisfied by a given customer, no Eligible Customer is entitled to the Gold Tier Applicable Cap.
The Applicable Cap for any Eligible Customer will never exceed USD 1,000,000. The Tier Schedule in effect on the date of the relevant Protected Event applies to that Protected Event.
7.2 Aggregation; anti-structuring. The Applicable Cap, and the Qualifying Balance used to determine it, apply to you as a natural person, aggregated across all Controlled Accounts you hold or beneficially control, regardless of the number of accounts, wallets or claims. You may not split, transfer or structure balances across accounts (your own or those of others) for the purpose of increasing your Qualifying Balance, Applicable Cap or reimbursement under the Program, and any balances we reasonably determine were so structured will be aggregated or disregarded accordingly.
7.3 Program Limit. The Program is subject to an aggregate ceiling on the amounts we make available for reimbursement across all Eligible Customers and Protected Events combined during each annual Program period (the "Program Limit"). We determine the Program Limit, in our sole discretion, by reference to the total risk-bearing capacity we maintain in support of the Program from time to time, comprising our captive (self-insurance) arrangement together with the coverage provided by third-party underwriters under the Supporting Policy. We may, but are not required to, disclose the Program Limit, its composition as between captive and underwritten capacity, or the identity of any underwriter, and the Program Limit may change, increase, or decrease at any time in our sole discretion. The Program Limit is an internal ceiling on our discretion and does not constitute a promise, warranty or representation that any particular amount is or will be available to you or any other Eligible Customer, and you have no right to require us to disclose it. The Program Limit is an internal ceiling on the funds that we may make available for reimbursement under the Program and does not constitute a promise, warranty or representation that any particular amount is or will be available to you or any other Eligible Customer. It does not define or expand our legal liability, which is governed separately by Section 7.7. Reimbursements remain subject to these Program Terms, including the Program Limit, the limitations of liability in Section 7.7, and the amounts actually recovered and available to us under the Supporting Policy and/or otherwise funded by us, and are made solely at our discretion in accordance with Section 9.3. Amounts recoverable under the Supporting Policy in respect of any Protected Event may be reduced or unavailable as a result of retentions, deductibles, sub-limits or other terms that apply on a per-event basis under the Supporting Policy, regardless of the aggregate value of Losses across the relevant annual Program period. For purposes of Section 7 and the Supporting Policy, multiple losses arising from the same underlying cause, vulnerability, or incident, however or whenever discovered or manifested, are treated as arising from a single Protected Event.
7.4 Pro-rating. If the aggregate value of the Losses of all Eligible Customers arising under the Program exceeds the Program Limit, the reimbursement of each Eligible Customer will be reduced pro rata, in the same proportion that the Eligible Customer's Loss bears to the total value of all Eligible Customers' Losses. In no event will the total of all payments under the Program exceed the Program Limit.
7.5 The limits in this Section 7 apply regardless of the number of Protected Events, accounts, claims or claimants.
7.6 We may, at our sole election, make any reimbursement in: (a) United States Dollars; (b) the Protected Asset to which the Loss relates; (c) any other Protected Asset; or (d) any other stablecoin we reasonably select, in each case in an amount equal in value to the reimbursement determined under this Section 7, with the value of any asset delivered determined as at the date of payment using pricing sources we reasonably select. Delivery of payment in accordance with this Section 7.6 constitutes full and final settlement and discharge of the relevant reimbursement, regardless of any subsequent change in the value of the asset delivered. You have no right to require payment in any particular form or asset, and where the delivery of any asset to you would be restricted or prohibited by applicable law, regulation or sanctions, we may substitute another form of payment permitted under this Section 7.6. Where reimbursement is funded by recoveries under the Supporting Policy, payment timing and availability may be subject to insurer processing, determination and payment.
7.7 Limitation of liability.
(a) Per-customer cap. Notwithstanding anything else in these Program Terms or the General Terms, and to the fullest extent permitted by applicable law, our aggregate liability to any individual Eligible Customer arising out of or in connection with the Program — whether in contract, tort (including negligence), breach of statutory duty, restitution, under the discretionary trust referred to in Section 1.3, or otherwise, and regardless of the number or type of claims brought — will not exceed your Applicable Cap under Section 7.1, and in no event more than USD 1,000,000.
(b) Aggregate cap. Our aggregate liability to all Eligible Customers collectively, on the same basis, will not exceed USD 10,000,000 during any annual Program period. The limitation of liability in this Section 7.7 is separate from, and operates independently of, the Program Limit in Sections 7.3 and 7.4. The Program Limit describes the maximum amount that we may, in our discretion, make available for reimbursement under the Program. By contrast, this Section 7.7 sets the maximum extent of our legal liability to Eligible Customers arising out of or in connection with the Program, whether or not the Program Limit is greater or less than that amount.
(c) Severability. The caps in paragraphs (a) and (b) are separate and independent. If either is held invalid or unenforceable, that does not affect the enforceability of the other.
(d) Carve-outs. Nothing in this Section 7.7 limits or excludes any liability that cannot be limited or excluded under applicable law, including, where applicable, willful misconduct, liability for fraud, fraudulent misrepresentation, or any other liability that applicable law prohibits from being limited or excluded.
8. How to Make a Claim; Your Duties
8.1 Notification, mitigation and evidence. Upon becoming aware of any actual or suspected Protected Event or Loss, you must: (a) notify us within seven (7) days of becoming aware of the Loss by emailing [email protected]; (b) take all reasonable steps to mitigate and avoid increasing the Loss; and (c) preserve, and not delete, alter, reset, wipe or dispose of, any device, log, record, communication or other evidence relevant to the Loss. Failure to comply with this Section 8.1 may result in your claim being reduced or declined to the extent we are prejudiced. You acknowledge that failure to notify us promptly may prejudice our ability to recover under the Supporting Policy and may result in reduction or denial of your claim.
8.2 Claim submission. To make a claim, you must:
(a) request and complete the Customer Claim Form. All answers and information you provide are legally material to the evaluation of your claim and must be complete and accurate;
(b) complete all steps of our identity verification process in full before formally submitting your Customer Claim Form. Identity verification does not need to have been completed before the Protected Event in order for you to be eligible, provided that it is successfully completed before your claim is formally submitted;
(c) provide all supporting documentation we or our representatives reasonably request, which may include screenshots or other evidence of the Protected Event, Aave App account statements or transaction records evidencing the Loss, and any other documentation reasonably requested;
(d) submit your completed Customer Claim Form and supporting documentation to [email protected] within ninety (90) days of the date of the Protected Event. Claims submitted after this deadline will not be eligible for reimbursement; and
(e) cooperate fully and promptly with us (and with any third party we engage) in the investigation, evaluation, administration and calculation of your claimed Loss, including by providing a proof of loss and any related documents we reasonably request, executing such documents and taking such other actions as we may reasonably require to verify your claim, administer the Program, comply with applicable law or regulatory requirements, facilitate any recovery under the Supporting Policy, or otherwise give effect to these Program Terms.
Your claim will be acknowledged and reviewed, and you may be contacted for further information. Acknowledgment or review of a claim does not constitute acceptance of it.
8.2A Burden of proof. You bear the burden of establishing, to our reasonable satisfaction, that a Protected Event has occurred, that you are an Eligible Customer, that you have suffered a Loss, and the value of that Loss.
8.3 Identity verification and compliance. We may decline or revoke identity verification, and consequently deny or suspend a claim, where we determine, acting reasonably, that you have failed to satisfy applicable identity verification requirements or where verification cannot be completed for legal or regulatory reasons, including without limitation where: (a) you are identified on, or are associated with a person or entity identified on, any applicable sanctions list maintained by the United Nations, European Union, United Kingdom, United States or any other relevant authority; (b) you are located in, or are a national or resident of, a jurisdiction subject to applicable sanctions or export controls including but not limited to Belarus, Côte d’Ivoire, Crimea, Cuba, Donetsk People's Republic of Ukraine, Iran, Iraq, Kherson Region of Ukraine, Liberia, Libya, Luhansk People's Republic of Ukraine, Myanmar, North Korea, Russia, Sudan, Syria, Venezuela, Zaporizhzhia Region of Ukraine; (c) we are unable to complete anti-money laundering, counter-terrorist financing or know-your-customer checks to our reasonable satisfaction; or (d) applicable law or regulatory guidance prevents or restricts us from processing a claim in respect of you.
8.4 Duty of honesty. All information you provide to us in connection with the Program — including your Customer Claim Form, proof of loss, supporting documents and any statements made during our investigation — must be true, accurate, complete and not misleading. You must not conceal, suppress or fail to disclose any fact material to your claim, and you must promptly correct any information you discover to be inaccurate or incomplete.
8.5 Fraudulent or dishonest claims.
(a) We operate a strict zero-tolerance approach to fraud. Any person who knowingly submits a false, fraudulent or exaggerated claim; presents false, incomplete or misleading information in connection with a claim, including in any Customer Claim Form or supporting documentation; conceals, suppresses or fails to disclose any material fact relevant to a claim; misrepresents the circumstances, nature or value of any loss; or acts in collusion with any other person to make or support a fraudulent claim, may be committing a criminal offence and may be subject to criminal and civil penalties, including fines and imprisonment, under applicable law.
(b) If any claim under the Program is fraudulent, dishonest or exaggerated in any respect, or is supported by any false, fabricated or altered information, document or device, or if you otherwise act dishonestly in connection with a claim, then: (i) your entire claim is forfeited, including any genuine portion; (ii) you are permanently ineligible for any future reimbursement under the Program; (iii) you must immediately repay on demand any amount already paid to you in connection with the claim; (iv) we may suspend or terminate your Controlled Account; (v) we may report the matter to law enforcement, regulatory authorities and the insurer under the Supporting Policy, and pursue any other rights and remedies available to us; and (vi) you must indemnify us on demand for all reasonable costs and expenses (including investigation and legal costs) we incur as a result of the fraudulent, dishonest or exaggerated claim.
(c) All claims are subject to verification. We may: (i) investigate the circumstances of any claim, including by requesting additional information or documentation, conducting interviews, and engaging third-party investigators or specialists; (ii) share relevant information with the insurer under the Supporting Policy, regulators and law enforcement authorities where permitted or required by law or where fraud is suspected; and (iii) defer assessment or payment of any claim pending the outcome of any investigation where there are reasonable grounds to suspect fraud or dishonesty. Your full cooperation with any such investigation is a condition of any reimbursement; failure to cooperate entitles us to deny your claim in whole or in part.
(d) The rights in this Section 8.5 are in addition to, and do not limit, any other rights or remedies available to us under these Program Terms or at law.
8.6 Information sharing. You consent to us sharing information relating to you and your Controlled Account, including your Customer Claim Form and supporting materials, with the insurer under the Supporting Policy and its representatives, for the purposes of assessing, administering and recovering amounts in connection with a Protected Event. The Program is subject to the Aave App Privacy Policy, which forms part of these Program Terms. By participating in or making a claim under the Program, you acknowledge that you have read the Aave App Privacy Policy and agree to the collection, use, disclosure and other processing of your personal data as described in that Privacy Policy, including where necessary for the administration of the Program, claims handling, fraud prevention, identity verification, legal and regulatory compliance, and communications relating to the Program.
8.7 No admission. The acceptance of a Customer Claim Form, the conduct of any investigation, or any communication with you during the claims process does not constitute an admission that a Protected Event has occurred, that you are an Eligible Customer, or that any amount is payable.
9. Assessment, Valuation and Payment
9.1 Determinations. We will determine, in our sole discretion acting reasonably (and, where applicable, taking into account, but not bound by, any determination made by the insurer under the Supporting Policy): (a) whether a Protected Event has occurred, including whether a particular Computer System, Covered Protocol, dApp, smart contract, integration or other technical component or event falls within the scope of these Program Terms; (b) whether you are an Eligible Customer; (c) the value of any Loss; and (d) any apportionment between covered and non-covered amounts. We may have regard to how the equivalent question would be addressed under the Supporting Policy, but our determination is not limited or bound by any position or determination taken by the insurer, any reinsurer, or otherwise under the Supporting Policy. Where a question under this Section 9.1 is reasonably capable of more than one interpretation, we may adopt any reasonable interpretation. Such determinations are final and binding on you, subject to your right to dispute a determination in accordance with Section 9.9 and any other right of legal action you may have, in each case to the maximum extent permitted by applicable law.
9.2 Valuation. The value of any Loss will be determined by us by reference to the fair market value of the relevant Protected Assets as at the date of the Protected Event, using pricing sources we reasonably select. For the avoidance of doubt, no Loss includes any amount excluded under Section 6(d).
9.3 Discretionary payment. Any reimbursement under the Program is made by us, in our capacity as trustee of the discretionary trust referred to in Section 1.3, in our absolute discretion as to timing, shares and manner of payment, subject always to these Program Terms. In no event will any payment to you exceed your Loss. No interest accrues on any reimbursement, regardless of the time taken to investigate, determine or pay any claim. Reimbursements are paid from, and only to the extent of, amounts held by us from time to time under the discretionary trust referred to in Section 1.3.
9.4 Discharge and release. Payment of a reimbursement fully discharges our obligations (and those of our affiliates and the insurer under the Supporting Policy) in respect of the relevant Loss. As a condition of payment, we may require you to execute a release in a form we reasonably specify.
9.5 Recovery, subrogation and set-off. If we make any payment to you under the Program: (a) we are subrogated to all rights of recovery you have against any third party in respect of the Loss, and you must execute all documents and provide all assistance we reasonably require to pursue such rights, and must do nothing to prejudice them; (b) any amount you subsequently recover from any other source in respect of the same Loss must be paid to us promptly, up to the amount we paid you; and (c) we may set off against any reimbursement any amounts you owe to us or our affiliates. Any such subrogation rights may be exercised by us and/or the insurer under the Supporting Policy.
9.6 Repayment. If you receive any payment under the Program to which you were not entitled, you must promptly repay the relevant amount to us on demand.
9.7 Taxes. Reimbursements may be subject to tax in your jurisdiction. You are solely responsible for any taxes arising from any reimbursement, and we may withhold or deduct amounts where required by applicable law.
9.8 Deceased customers. Any claim by, or payment to, the estate or personal representative of a deceased Eligible Customer is subject to receipt of evidence of entitlement satisfactory to us and is made at our discretion, subject always to the terms of the discretionary trust.
9.9 Dispute window. If you wish to dispute any determination made under this Section 9, you must notify us in writing within sixty (60) days of being notified of the determination, failing which the determination is deemed accepted, except to the extent such a limitation is prohibited by applicable law.
9.10 No waiver; no precedent. No failure or delay by us in exercising, and no partial or discretionary exercise of, any right under these Program Terms, and no payment, ex gratia payment, or determination made in respect of any claim (including where a condition or exclusion could have been but was not applied), constitutes a waiver of that or any other right, or an admission, course of dealing, or precedent in respect of any other claim, whether made by the same or a different Eligible Customer.
10. Changes, Suspension and Termination
10.1 The Program is voluntary and discretionary. We may amend these Program Terms, or suspend or terminate the Program in whole or in part, at any time by publishing updated terms or notice in the Aave App or on our website. The version of these Program Terms in effect on the date of a Protected Event applies to Losses arising from that event; no amendment, suspension or termination will retroactively remove eligibility for a Protected Event that occurred before its effective date.
10.2 The continuation of the Program is subject to the Supporting Policy (or replacement arrangements) remaining in force. If the Supporting Policy is cancelled, expires without renewal, is materially amended, if coverage is denied in respect of relevant events, or if the Supporting Policy is otherwise terminated, we may suspend or terminate the Program with effect from the same date.
11. Relationship with the Aave App Terms of Service
11.1 These Program Terms form part of, and are supplemental to, the Aave App Terms of Service (the "General Terms"). Except as expressly modified by these Program Terms, all provisions of the General Terms — including, without limitation, those relating to governing law, jurisdiction and dispute resolution, limitation of liability, severability, language, notices, and amendments — apply to the Program and to these Program Terms as if set out in full here.
11.2 In the event of any conflict or inconsistency between these Program Terms and the General Terms in relation to the Program, these Program Terms prevail.
11.3 Notwithstanding anything in the General Terms:
(a) No assignment; no third-party rights. You may not assign or transfer any rights under these Program Terms, and no person other than you and us has any rights under these Program Terms;
(b) Sanctions. No reimbursement will be made to the extent that doing so would violate any sanction, prohibition or restriction under United Nations resolutions or the trade or economic sanctions, laws or regulations of the European Union, United Kingdom, United States of America, or any other relevant jurisdiction; and
(c) Currency. All amounts under these Program Terms are expressed, and all Losses and reimbursements are denominated and determined, in United States Dollars (USD), with conversion of asset values determined by us in accordance with Section 9.2. Payment may be settled in the forms permitted under Section 7.6.