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G. Client Agreements


In addition to all requirements in respect of Client Agreements in the Market Conduct Rulebook, and under Rule III.D of this Custody Services Rulebook, VASPs providing Staking from Custody Services shall include the following, to the extent applicable, in Client Agreements in respect of Staking from Custody Services—

a. a description of the Virtual Assets for which Staking from Custody Services is being provided to such extent that the details are sufficient to identify them;
b. operational, maintenance or other requirements for participation [including but not limited to hardware, software and connectivity] of the DLT[s], for which Staking from Custody Services is being provided, and that the VASP undertakes the responsibility to meet those requirements when providing such services. This Rule IV.G.1.b of this Custody Services Rulebook can be largely met by providing links to publicly available sources of where such information is officially maintained, for example DLT website or source code repository etc.;
c. respective rights of the VASP, the client and any other Entity involved in the Staking from Custody Services, in respect of Virtual Assets that are the subject of the Client Agreement;
d. a detailed description of the source of all rewards received by clients from the Staking from Custody Services, including whether such rewards are generated solely from fees paid by users of the DLT, or whether such rewards are derived from any other source;
e. proceeds to be paid or become payable, and in the case of variable proceeds, the method of calculation, factors that impact the amount, volatility and timing of the proceeds, and how and when such variations will be communicated by the VASP to its clients, including all rights that the client has to influence decisions at each stage;
f. all fees to be charged for Staking from Custody Services, and the calculation thereof;
g. rights of the client to withdraw or directly control decisions pertaining to any Virtual Assets, in respect of which Staking from Custody Services is provided, and any conditions/ circumstances under which the client may be unable to do so;
h. statement explaining that Virtual Assets in respect of which Staking from Custody Services is provided may be at risk, including the types and nature of such risks, as well as the likelihood and severity of any losses that may be suffered;
i. rights, if any, of the VASP to vary the terms of the Client Agreement;
j. rights of the VASP and the client to terminate the Client Agreement, circumstances under which these rights can be activated, and the consequences of such termination;
k. full details of the VASP’s client complaints procedure; and
l. statement explaining whether the VASP receives any remuneration, discount or other benefit for using any third party [with a disclosure of specific Entities where applicable], in the course of the provision of the Staking from Custody Services.