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Terms of Service

Last updated: April 2026

1. Overview

These Terms of Service (“Terms”) govern your access to and use of the O2 platform and related services operated by Monark Technologies, LLC, a Pennsylvania limited liability company (“Company,” “we,” or “us”). By accessing or using O2, you agree to be bound by these Terms. If you do not agree, do not use the platform.

2. Regulatory Status

O2 is a onchain structured credit protocol that provides a structured onchain facility wrapping overcollateralized loans from third-party decentralized lending protocols with a hedging overlay. The Company is not a bank, savings institution, credit union, broker-dealer, investment adviser, commodity trading adviser, commodity pool operator, money transmitter, or money services business. The Company does not accept deposits, hold customer funds in custody, or operate as a fiduciary.

Nothing on this platform constitutes an offer to sell, a solicitation of an offer to buy, or a recommendation of any security, investment contract, commodity interest, financial product, or investment strategy.

3. No Securities Representation

The credit facilities, hedging structures, and related instruments offered through O2 are not intended to constitute securities, investment contracts, or commodity interests under federal or state law. The Company makes no representation regarding the regulatory classification of any product or service offered through the platform in any jurisdiction. Users are responsible for determining the legality and regulatory treatment of their participation in their own jurisdiction.

4. Eligibility and Participant Representations

O2 is available exclusively to qualified institutional participants. By using this platform, you represent and warrant that:

  • You are acting on behalf of an institutional entity and have the authority to bind that entity to these Terms
  • You qualify as an “accredited investor” as defined under Rule 501 of Regulation D of the U.S. Securities Act of 1933, or a “qualified purchaser” as defined under the Investment Company Act of 1940
  • You have sufficient knowledge and experience in financial and business matters to evaluate the merits and risks of participation
  • You are not a resident of, or accessing the platform from, any jurisdiction where such services are prohibited or require registration that the Company does not hold
  • You are not a person or entity subject to sanctions administered by the U.S. Office of Foreign Assets Control (OFAC) or included on any other applicable sanctions list

O2 is not available to retail investors, individual consumers, or any person or entity that does not meet the foregoing requirements.

5. AML/KYC Compliance

The Company maintains anti-money laundering (AML) and know-your-customer (KYC) procedures. You agree to provide identity verification, beneficial ownership information, and such other documentation as the Company may reasonably request. The Company reserves the right to refuse service, suspend access, or terminate participation if KYC/AML requirements are not satisfied or if the Company reasonably suspects prohibited activity.

6. Services

O2 facilitates overcollateralized credit backed by Bitcoin through a structured onchain facility that wraps loans originated on third-party decentralized lending protocols (including, without limitation, Aave) and incorporates a hedging overlay designed to manage BTC price exposure at the pool level. O2 does not originate loans directly. The underlying credit is provided by third-party protocols and their liquidity providers.

7. Credit Terms

Specific credit terms including rates, collateralization requirements, duration, hedge structure, and fee schedules are established on a per-transaction basis and governed by separate credit agreements or facility documentation. These Terms do not constitute a credit agreement, commitment to lend, or guarantee of any particular terms or availability.

8. Smart Contract and Onchain Risk

Transactions facilitated through O2 may execute via smart contracts deployed on public blockchain networks. Smart contracts are autonomous, immutable, and subject to risks including but not limited to: software bugs, vulnerabilities, exploits, network congestion, and irreversible execution. You acknowledge that:

  • The Company cannot reverse, modify, or cancel transactions once they have been submitted to the blockchain
  • Blockchain networks may experience downtime, forks, or consensus failures outside the Company’s control
  • Smart contract audits, where conducted, do not guarantee the absence of vulnerabilities
  • You are solely responsible for understanding the technical risks of interacting with onchain systems

9. Third-Party Protocol Risk

O2 relies on third-party decentralized protocols (including Aave and potentially others) for underlying loan origination and liquidity. The Company does not control, operate, or govern these protocols. You acknowledge that:

  • Third-party protocols may experience failures, governance changes, liquidity crises, oracle malfunctions, or security exploits
  • Protocol parameters (including interest rates, collateral requirements, and liquidation thresholds) may change without notice from the Company
  • The Company cannot guarantee the continued availability, performance, or solvency of any third-party protocol
  • The Company is not liable for losses arising from third-party protocol failures, changes, or discontinuations

10. Hedging Instrument Risk

The O2 hedging overlay is designed to manage BTC price exposure at the pool level but is subject to risks and limitations:

  • The hedge may not perfectly offset BTC price movements in all market conditions, including but not limited to extreme volatility, illiquid markets, or unprecedented price dislocations
  • Hedging instruments may introduce counterparty risk
  • The cost and availability of hedging instruments may vary based on market conditions and may affect the terms available to participants
  • Past performance of the hedging structure does not guarantee future results

11. Duty of Care and Outcome Disclaimer

The Company is committed to managing hedging positions and pool operations with reasonable care and in alignment with the stated objectives of the O2 protocol. The Company will employ prudent risk management practices commensurate with prevailing market conditions and will act in good faith to protect participant interests within the scope of the protocol’s design.

However, the Company does not guarantee any particular outcome, return, yield, or level of protection. There is no guarantee of capital preservation. The elimination of margin calls is a core design objective of the O2 structure, not a contractual guarantee. Under extreme or unforeseen market conditions, the structure may not perform as intended despite the Company’s best efforts, which may require action from the borrower to maintain collateral requirements.

12. Risk Acknowledgment

By using the platform, you acknowledge and accept that:

  • BTC and digital assets are volatile and may lose substantial or all value
  • Credit products involve risk, including risk of borrower default
  • The regulatory environment for digital assets and DeFi is evolving and uncertain
  • You may lose some or all of the value of your collateral or capital deployed through O2
  • You have conducted your own due diligence and are not relying on the Company for investment, legal, or tax advice

13. Intellectual Property

All content, technology, trade secrets, methodologies, and materials on the O2 platform, including the hedging structure and pool architecture, are the proprietary property of Monark Technologies, LLC. You may not reproduce, reverse-engineer, distribute, or create derivative works without prior written consent.

14. Disclaimers

The O2 platform and all related services are provided on an “AS IS” and “AS AVAILABLE” basis without warranties of any kind, whether express, implied, or statutory, including but not limited to implied warranties of merchantability, fitness for a particular purpose, and non-infringement. The Company does not warrant that the platform will be uninterrupted, error-free, secure, or free from viruses or other harmful components.

Information provided on this website, including through the Ask O2 assistant, is for informational purposes only and does not constitute financial, legal, tax, or investment advice. The Ask O2 assistant is powered by artificial intelligence and may produce inaccurate or incomplete information.

15. Limitation of Liability

To the maximum extent permitted by applicable law, in no event shall the Company, its members, managers, officers, employees, agents, or affiliates be liable for any indirect, incidental, special, consequential, punitive, or exemplary damages, including but not limited to damages for loss of profits, goodwill, data, digital assets, or other intangible losses, arising out of or related to your use of or inability to use the O2 platform, regardless of the theory of liability and even if the Company has been advised of the possibility of such damages.

The Company’s total aggregate liability for all claims arising out of or related to these Terms or your use of the platform shall not exceed the total fees paid by you to the Company in the twelve (12) months preceding the claim.

16. Indemnification

You agree to indemnify, defend, and hold harmless the Company, its members, managers, officers, employees, and agents from and against any and all claims, liabilities, damages, losses, costs, and expenses (including reasonable attorneys’ fees) arising out of or related to: (a) your breach of these Terms; (b) your misrepresentations regarding eligibility or accredited investor status; (c) your violation of any applicable law or regulation; or (d) any regulatory action taken against the Company as a result of your participation.

17. Dispute Resolution and Arbitration

Any dispute, controversy, or claim arising out of or relating to these Terms or your use of the platform shall be resolved by binding individual arbitration administered by the American Arbitration Association (AAA) under its Commercial Arbitration Rules. The arbitration shall be conducted in the Commonwealth of Pennsylvania. The arbitrator’s decision shall be final and binding.

You agree to waive any right to participate in a class action, class arbitration, or any other representative proceeding. All claims must be brought in your individual capacity and not as a plaintiff or class member in any purported class or representative proceeding.

18. Force Majeure

The Company shall not be liable for any failure or delay in performance resulting from causes beyond its reasonable control, including but not limited to: blockchain network failures, hard forks, or consensus disruptions; smart contract exploits or vulnerabilities; third-party protocol failures, governance changes, or discontinuations; oracle failures or price feed disruptions; regulatory actions, sanctions, or legal prohibitions; natural disasters, pandemics, or acts of war; and failures of internet infrastructure or telecommunications.

19. Governing Law

These Terms are governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania, without regard to conflict of law principles. For any matters not subject to arbitration, you consent to the exclusive jurisdiction of the state and federal courts located in the Commonwealth of Pennsylvania.

20. Amendments

The Company reserves the right to modify these Terms at any time. Material changes will be communicated through the platform or via email to registered participants. Changes become effective upon posting unless otherwise specified. Continued use of the platform after changes are posted constitutes acceptance of the modified Terms. If you do not agree with any modification, you must cease using the platform.

21. Severability

If any provision of these Terms is held to be invalid or unenforceable, the remaining provisions shall continue in full force and effect. The invalid or unenforceable provision shall be modified to the minimum extent necessary to make it valid and enforceable.

22. Entire Agreement

These Terms, together with any applicable credit agreements or facility documentation, constitute the entire agreement between you and the Company regarding your use of the O2 platform and supersede all prior agreements, understandings, or representations.

23. Contact

For questions regarding these Terms, contact us at access@o2.credit.

Monark Technologies, LLC
A Pennsylvania Limited Liability Company