Terms of Service

These Terms of Service ("Terms") constitute a legally binding agreement between you ("you" or "user") and Velocity Markets ("we," "our," or "us") governing your access to and use of the Velocity Markets platform, including the website at www.velocitymarkets.io, the application at app.velocitymarkets.io, associated smart contracts on the Solana blockchain, and all related services (collectively, the "Platform").

By connecting your wallet to the Platform or by otherwise accessing or using the Platform, you acknowledge that you have read, understood, and agree to be bound by these Terms. If you do not agree to these Terms, you must not access or use the Platform.

Important: By connecting your wallet and placing a prediction, you confirm that you are legally permitted to use this Platform in your jurisdiction and that you are at least 18 years of age.

• You are at least 18 years of age (or the age of majority in your jurisdiction, whichever is higher).
• You have the legal capacity and authority to enter into these Terms.
• You are not located in, or a citizen or resident of, any jurisdiction where use of the Platform would be illegal or otherwise prohibited.
• You are not subject to any sanctions, embargoes, or other restrictive measures imposed by any governmental authority.
• You possess a compatible Solana wallet and sufficient funds to participate in predictions.

We reserve the right to restrict or terminate access to the Platform at our sole discretion if we determine, or reasonably suspect, that any of the above conditions are not met.

4.1 Overview

Velocity Markets is a decentralised motorsport prediction platform built on the Solana blockchain. The Platform enables users to stake SOL (or $VM tokens, when available) on the finishing positions of drivers across supported motorsport series. The Platform currently supports Formula 1, with additional series (including MotoGP and Formula E) planned for future release.

4.2 Pari-Mutuel Model

The Platform operates on a pari-mutuel pool model. All user stakes for a given session are collected into a single pool. After the session concludes and official results are confirmed, winnings are distributed to users who correctly predicted a driver finishing in positions P1 through P10. Users who predicted a driver finishing P11 or lower will lose their entire stake for that prediction.

Critical: "Winning" a prediction (i.e., your driver finishes P1-P10) does not guarantee a profit. In a pari-mutuel system, your payout depends on the total pool size, the distribution of other users' stakes, your selected position, the driver's multiplier, and the amount you staked. You may receive less than your original stake even if your prediction is correct.

4.3 Multipliers

Each driver is assigned a multiplier that reflects their expected competitiveness, determined automatically by the Platform based on previous race results and cumulative season championship standings. Multipliers range from 1.5x (for dominant/favoured drivers) to 3.5x (for longshot drivers). The multiplier is locked at the time you place your prediction and does not change after staking.

4.4 Payout Formula

Adjusted Points = Position Points x (Locked Multiplier)^2.75 x SOL Staked
Payout = (Your Adjusted Points / Total Adjusted Points) x Net Prize Pool

Position points scale from 24 (P1) down to 6 (P10). Positions P11 and below receive zero position points for payout purposes. The Net Prize Pool is the total pool after deduction of the applicable Platform Fee.

4.5 Pool Closure

Prediction pools close five (5) minutes before the scheduled start of each session. Once a pool is closed, no further predictions can be placed, and existing predictions cannot be modified or cancelled.

5.1 Overview

The $VM token is the native utility token of the Velocity Markets ecosystem. The $VM token has an uncapped supply. New $VM tokens are minted when users convert SOL via the automated market maker (AMM). A portion of SOL fee revenue generated from non-$VM predictions is used to buy back and burn $VM tokens.

5.2 Utility

• Fee waiver - Users who stake with $VM tokens pay zero platform fees.
• Governance - $VM token holders may participate in governance votes on platform decisions.
• Airdrops - $VM token holders may be eligible for periodic airdrops.

5.3 No Investment Instrument

The $VM token is a utility token and is not intended to constitute a security, investment contract, or financial instrument of any kind. Purchasing, holding, or using $VM tokens does not confer any equity, ownership, dividend, profit-sharing, or voting rights in Velocity Markets or any associated entity (beyond on-platform governance). You should not purchase $VM tokens with the expectation of profit.

To use the Platform, you must connect a Solana-compatible wallet (such as Phantom Wallet). The Platform does not create, manage, or custody wallets on your behalf.

• The security of your wallet, including your private keys and seed phrase.
• Maintaining adequate SOL or $VM balances to cover predictions and transaction fees.
• All activity that occurs through your connected wallet on the Platform.

Warning: Velocity Markets will never ask for your private keys, seed phrase, or wallet password. Any request for this information is fraudulent. We are not responsible for any loss resulting from compromised wallet credentials.

By using the Platform, you agree that you will not:

• Use the Platform for any unlawful purpose or in violation of any applicable laws or regulations.
• Attempt to manipulate, exploit, or interfere with prediction pools, smart contracts, or the payout process.
• Use automated scripts, bots, or other tools to interact with the Platform in a manner that undermines fair participation, unless expressly permitted.
• Engage in any form of collusion, wash trading, or market manipulation.
• Attempt to reverse-engineer, decompile, or disassemble any part of the Platform.
• Impersonate any person or entity, or falsely represent your affiliation.
• Introduce malicious code, viruses, or harmful material to the Platform.
• Circumvent or attempt to circumvent any access restrictions or security measures.
• Use the Platform to launder money or finance terrorism.
• Harass, abuse, or threaten other users in community channels associated with the Platform.

We reserve the right to investigate and take appropriate action against any user who, in our sole discretion, violates these conduct rules, including restricting or terminating access and forfeiting pending payouts.

8.1 Platform Fees

8.2 Network Transaction Fees

All interactions with the Solana blockchain are subject to network transaction fees ("gas fees"). These fees are paid directly to the Solana network and are not collected by or controlled by Velocity Markets. You are solely responsible for any network fees incurred through your use of the Platform.

8.3 Fee Changes

We reserve the right to modify the Platform Fee structure at any time. Any changes to fees will be communicated through the Platform and/or our community channels prior to taking effect.

9.1 Official Results

Pools are settled based on the official classification published by the governing body of the relevant motorsport series (e.g., the FIA for Formula 1). Velocity Markets relies on official results and does not adjudicate disputes about race outcomes.

9.2 Settlement Process

Following publication of official results, the Platform's smart contracts automatically calculate and distribute payouts to eligible users. Settlement is typically completed shortly after results are confirmed, though delays may occur due to network congestion, result disputes, or technical issues.

9.3 Disqualifications and Reclassifications

If official results are amended after initial settlement (e.g., post-race disqualifications or penalties), the Platform will make reasonable efforts to re-settle the affected pool. However, re-settlement is not guaranteed in all cases.

9.4 Cancelled or Abandoned Sessions

If a session is cancelled, abandoned, or declared void by the governing body, the Platform returns all stakes from the affected pool minus any network transaction fees already incurred.

All content, materials, features, and functionality of the Platform - including text, graphics, logos, icons, images, software, and underlying code - are the exclusive property of Velocity Markets or its licensors and are protected by applicable intellectual property laws.

You are granted a limited, non-exclusive, non-transferable, revocable licence to access and use the Platform solely for its intended purpose and in accordance with these Terms.

11.1 No Financial Advice: The Platform does not provide financial, investment, legal, or tax advice.

11.2 Platform Provided "As Is": THE PLATFORM IS PROVIDED ON AN "AS IS" AND "AS AVAILABLE" BASIS WITHOUT WARRANTIES OF ANY KIND.

11.3 No Guarantee of Availability: We do not warrant uninterrupted, error-free, or always-secure service.

11.4 Smart Contract Risks: Smart contracts are experimental technology and may contain bugs or vulnerabilities.

11.5 Market and Blockchain Risks: Cryptocurrency markets and blockchain networks are volatile and can be disrupted.

TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, VELOCITY MARKETS AND ITS FOUNDERS, TEAM MEMBERS, AFFILIATES, AND AGENTS SHALL NOT BE LIABLE FOR INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES.

OUR TOTAL AGGREGATE LIABILITY SHALL NOT EXCEED THE TOTAL AMOUNT OF PLATFORM FEES YOU HAVE PAID TO US IN THE SIX (6) MONTHS PRECEDING THE CLAIM.

You agree to indemnify, defend, and hold harmless Velocity Markets and its founders, team members, affiliates, and agents from and against all claims, liabilities, damages, losses, costs, and expenses arising out of or in connection with your use of the Platform, your violation of these Terms or applicable law, your violation of third-party rights, or any fraudulent/negligent/wrongful act by you.

By using the Platform, you acknowledge and accept risks including:

• Loss of funds
• Cryptocurrency volatility
• Smart contract risk
• Blockchain network risk
• Regulatory risk
• Pari-mutuel risk (correct predictions may still be unprofitable)
• Third-party wallet provider risk

You should only stake funds that you can afford to lose entirely.

We reserve the right, at our sole discretion, to:

• Suspend or restrict access with or without notice.
• Terminate access if you violate these Terms.
• Withhold, freeze, or forfeit pending payouts where fraud/manipulation is suspected.
• Discontinue the Platform or any part of it at any time.

16.1 Informal Resolution: You agree to first attempt informal resolution by contacting us, with a 30-day resolution window.

16.2 Binding Arbitration: Unresolved disputes are subject to binding arbitration, except where equitable relief is sought for intellectual property matters.

16.3 Class Action Waiver: Proceedings are individual only; class, consolidated, and representative actions are waived.

We reserve the right to modify these Terms at any time. Material changes will be posted on the Platform and reflected in the "Last Updated" date. Continued use after changes constitutes acceptance.

We are not liable for delay or failure to perform obligations due to events beyond reasonable control, including natural disasters, government actions, network failures, blockchain congestion, cyberattacks, or Solana disruptions.

If any provision is invalid or unenforceable, the remaining provisions remain in full force and effect, and the invalid provision is modified to the minimum extent necessary to preserve intent.

These Terms, together with the Privacy Policy and any other policies or guidelines published on the Platform, constitute the entire agreement between you and Velocity Markets regarding use of the Platform.

These Terms are governed by and construed in accordance with the laws of the jurisdiction in which Velocity Markets operates, without regard to conflict of law provisions.

© 2026 Velocity Markets. All rights reserved.