Legal

Terms of Service

This is a placeholder, not a legal document. It marks out the sections a prediction market needs so the structure exists in the build. It has not been written or reviewed by a lawyer. Crypto deposits can now be pointed at a live chain, so this needs a lawyer’s eyes before that switch is thrown, not after.
Status: Draft skeleton  ·  Version: 0.1  ·  Applies to: Pre-launch prototype with no payment processing

1. What NapBet is

NapBet operates a platform for trading binary event contracts about public outcomes in and around Naperville, Illinois. Each contract settles at $1.00 if the stated event occurs and $0.00 if it does not.

In its current form NapBet processes no payments, creates no enforceable contracts, and holds no customer funds. Balances shown in this build exist only in your own browser.

2. Eligibility

  • You must be at least 18 years old.
  • You must be physically located in a jurisdiction where NapBet is permitted to operate.
  • You must be acting for yourself, not on behalf of an undisclosed third party.
  • One account per person. Multiple accounts are grounds for closure and forfeiture of fees.
  • Employees, contractors and their immediate households may not trade markets where they hold non-public information or influence over the outcome.

3. Regulatory status

Real-money event contracts in the United States may fall within the jurisdiction of the Commodity Futures Trading Commission, and state gaming law may also apply. NapBet is not currently registered with the CFTC, is not licensed under Illinois gaming statutes, and nothing on this site is an offer to enter into any contract.

4. Accounts

You are responsible for the security of your credentials and for all activity under your account. Notify us immediately of any unauthorized access. We may suspend or close an account for suspected fraud, manipulation, sanctions exposure, or breach of these terms.

5. Trading

  • All trades are final once filled. There is no cancellation after execution.
  • Orders fill at the average price across their own market impact.
  • Position limits apply per market, per account.
  • Manipulating a market — including wash trading, coordinated trading across accounts, or acting to cause the underlying outcome — is prohibited and voids the positions involved.

6. Settlement and disputes

Each market names its resolution source before it opens. Settlement is determined against that source and posted within 72 hours of publication.

Where the source is unavailable, materially changed, or the question proves genuinely ambiguous, the market is voided and all positions refunded at cost. Settlements may be disputed within 72 hours and are re-reviewed against the named source.

7. Fees

A fee of 1% is charged on net winnings only. No fee is charged to place a trade, to lose a trade, or to withdraw funds. Fee changes apply only to markets opened after the change takes effect.

8. Credits, funding and cashing out

Credits are the unit of account inside NapBet. You buy them with cryptocurrency, trade with them, and can ask to convert them back. Credits are not a deposit, not a stored-value instrument, and not insured; they are not transferable between accounts.

Funding. The amount credited is determined by the value actually received, read from the relevant chain and priced at the market rate at the moment the transfer confirms — so a dollar of ETH buys a dollar of credit. Transfers sent to the wrong address or on an unsupported network cannot be recovered by NapBet, and cryptocurrency transfers are irreversible, so a purchase cannot be reversed once made.

Cashing out. Once you have won at least $10 in total from settled markets, you may request that some or all of your balance be sent to you as ETH. Losses do not count against that figure, and a request may be for any amount from $10 up to your current balance.

A request is reviewed by hand and is not automatic. NapBet may decline a request, and will say why, where it has reason to believe the account has been used in breach of these terms, where the balance no longer covers the amount asked for, or where the receiving address cannot be paid. Submitting a request does not hold or reserve the amount: your balance stays available to trade until a payment is actually sent, and spending it is a reason a request will be declined. One request may be open at a time.

Payments are made in ETH to the address you supply. You are responsible for that address being correct and under your control; a payment sent to an address you gave cannot be recovered. Network fees are deducted from nothing you hold — they are paid by NapBet on the transfer — but the amount received will reflect the ETH price at the time the payment is made rather than when it was requested.

[To be drafted: dormant account handling, and what happens to open positions and unspent credits if the platform ceases operation.]

9. Prohibited markets

NapBet does not list markets concerning:

  • Private individuals who are not public officials acting in an official capacity
  • Death, injury, or acts of violence
  • Outcomes a participant could plausibly cause
  • Anything unlawful under federal or Illinois law

10. Limitation of liability

[To be drafted by counsel. Must address platform downtime, data errors, settlement errors, and the cap on aggregate liability.]

11. Changes

We may update these terms. Material changes will be notified by email and posted here with a revised version number. Continued use after the effective date constitutes acceptance.

12. Governing law

[To be drafted: governing law, venue, arbitration clause and class-action waiver — all of which carry state-specific enforceability questions.]

See also Privacy Policy and Responsible trading.