Airdrop Terms and Conditions

VFT Chain LLC Effective Date: October 29, 2025 Version: 1.0 Last Updated: October 29, 2025

IMPORTANT NOTICE

This document governs all VFTC token airdrops distributed by VFT Chain LLC. By claiming or accepting airdropped tokens, you agree to these terms. Contact: Thomas@vftchain.com

1. Overview

1.1 Purpose

VFT Chain LLC may distribute VFTC tokens via airdrops to:

Incentivize early adopters and platform participants

Reward community contributions

Increase platform awareness and adoption

Bootstrap network effects

Test platform functionality

1.2 Airdrop Discretion

All airdrops are entirely discretionary:

No right or entitlement to receive airdrops

No guarantee of future airdrops

Airdrop amounts, timing, and eligibility determined solely by VFT Chain LLC

We may modify, suspend, or terminate airdrops at any time

1.3 Not an Investment

CRITICAL: Airdrops are NOT:

Securities offerings or investment opportunities

Promises of future profits or returns

Compensation or employment payments

Guarantees of token value

Subject to securities laws (utility token distribution)

2. Eligibility Requirements

2.1 Geographic Eligibility

Airdrops are NOT available to residents or citizens of:

OFAC Sanctioned Countries: Cuba, Iran, North Korea, Syria, Crimea, Donetsk, Luhansk regions

Other Prohibited Jurisdictions: Any country where airdrop or token receipt is illegal

United States Residents: May be excluded from certain airdrops due to regulatory considerations

Eligibility determined by:

Self-reported location during registration

IP address geolocation

Wallet address analysis

KYC verification (if required)

2.2 Legal Requirements

To be eligible, you must:

Be at least 18 years old (or age of majority in your jurisdiction)

Have legal capacity to enter binding agreements

NOT be on any OFAC sanctions list (SDN, FSE, etc.)

NOT be a prohibited person under U.S. or local law

Comply with all applicable laws in your jurisdiction

2.3 Platform Requirements

Eligibility may require:

Active VFTChain platform account

Verified email address

Connected Solana wallet

Minimum platform activity or contributions

Specific actions (social media follows, testing, etc.)

KYC verification (for large airdrops)

2.4 Account Requirements

One airdrop per person:

Multiple accounts (Sybil attacks) prohibited

Duplicate claimants will be disqualified

All fraudulent claims forfeited

Violators permanently banned from platform and future airdrops

3. Airdrop Types

3.1 Early Adopter Airdrops

Criteria: Early users who register and use platform before specified date Example Eligibility:

Account created before [date]

Completed at least [X] compute jobs

Provided [X] compute hours

Connected social media accounts

Amount: Variable based on activity level and contribution

3.2 Community Contribution Airdrops

Criteria: Users who contribute to VFTChain community or development Example Contributions:

Bug reports or security vulnerability disclosures

Documentation or tutorial creation

Translation of platform materials

Community moderation or support

Developer tool creation

Marketing or promotional activities

Amount: Discretionary based on contribution value

3.3 Retroactive Airdrops

Criteria: Rewards for past platform usage or participation May include:

Compute providers with historical activity

Compute customers with spending history

Beta testers or early participants

Governance voters or active community members

Amount: Formula-based (e.g., proportional to usage, with caps)

3.4 Referral Airdrops

Criteria: Successful referrals of new users to platform Requirements:

Referred user must meet minimum activity threshold

No fake or fraudulent referrals

Referral relationship must be genuine

Limits on maximum referrals per user

Amount: Fixed amount per qualified referral

3.5 Promotional Airdrops

Criteria: Participation in specific promotional campaigns Examples:

Social media campaigns (Twitter/X, Discord, Telegram)

Content creation contests

Trading competitions

Testnet participation

Special events or launches

Amount: Variable based on campaign rules

4. Airdrop Claiming Process

4.1 Eligibility Verification

Automated Verification:

System checks eligibility criteria (geography, sanctions, activity)

Calculates airdrop allocation based on formula or criteria

Generates Merkle tree snapshot with eligible addresses and amounts

Publishes Merkle root on-chain

Manual Review (for disputes):

Users may appeal eligibility decisions

Compliance team reviews claims within 10 business days

Decisions are final and binding

4.2 Claim Procedure

Standard Claiming:

User connects eligible Solana wallet to VFTChain platform

System displays available unclaimed airdrop amount

User clicks "Claim Airdrop" button

User signs Solana transaction (pays network fees)

Smart contract verifies Merkle proof and transfers tokens

Gas/Transaction Fees:

Users pay Solana network fees (typically < $0.01)

VFT Chain LLC does NOT reimburse transaction fees

Failed transactions lose fees (user error)

4.3 Claim Deadline

Time Limits:

Airdrop claims must be made within 90 days of announcement (unless otherwise specified)

Unclaimed tokens after deadline are forfeited

Forfeited tokens may be burned, returned to treasury, or redistributed

NO EXTENSIONS granted except for documented technical failures

4.4 KYC Requirements (if applicable)

Large Airdrops (> $600 USD value):

May require KYC verification to comply with tax reporting

Users must submit identity documents

Verification must be completed before claim deadline

Failure to complete KYC = forfeiture of airdrop

5. Tax Implications

5.1 Tax Responsibility

USER IS SOLELY RESPONSIBLE FOR ALL TAX OBLIGATIONS. Airdropped tokens are likely taxable as:

Ordinary Income at fair market value on receipt date (most jurisdictions)

Prizes or Awards (IRS Form 1099-MISC in U.S., if value > $600)

Windfall Income or other local tax categories

5.2 Tax Reporting

United States:

VFT Chain LLC may issue IRS Form 1099-MISC for airdrops valued > $600

Users must report all airdropped tokens on tax returns (even if < $600)

Failure to report is tax evasion (federal crime)

Penalties: back taxes + interest + penalties + possible prosecution

Other Jurisdictions:

Tax treatment varies widely by country

Users must determine local tax obligations

Consult qualified tax professionals in your jurisdiction

5.3 Valuation

Fair Market Value (FMV) determination:

FMV calculated at time of claim (token receipt)

Based on market price if tokens are traded (exchange or DEX price)

If no market exists: estimated utility value (potentially $0 or nominal)

VFT Chain LLC's FMV determination is for tax reporting only (not binding on tax authorities)

5.4 Tax Withholding

VFT Chain LLC does NOT withhold taxes:

Users receive full airdrop amount

Responsible for paying all taxes owed

Estimated quarterly tax payments may be required (U.S.)

Consult tax advisor for specific guidance

5.5 Non-U.S. Users

International Tax Considerations:

Double taxation treaties may apply

Local laws may require tax withholding or reporting

Some countries tax crypto very heavily (up to 50%+ rates)

Some countries exempt crypto airdrops from tax

Users must research and comply with local tax laws

6. Airdrop Restrictions

6.1 Transfer Restrictions

Initial Lockup (if applicable):

Some airdrops may have vesting or lockup periods

Tokens may be non-transferable for specified period (e.g., 30/60/90 days)

Vesting schedule may apply (e.g., 25% immediately, rest monthly over 12 months)

Lockup enforced via smart contract (cannot be bypassed)

Purpose: Prevent immediate dumping, encourage long-term participation

6.2 Trading Restrictions

Market Activity:

Airdropped tokens may NOT be immediately tradable

No exchange listings guaranteed

May be no liquidity or buyers

Selling below cost basis still creates taxable event

6.3 Usage Restrictions

Platform Use Only:

Tokens distributed for platform utility use

Using tokens for prohibited activities voids airdrop

Selling to sanctioned persons = sanctions violation

Money laundering or illegal use = forfeiture + prosecution

7. Prohibited Activities

7.1 Airdrop Farming

Prohibited behaviors:

Creating multiple accounts to claim multiple airdrops (Sybil attacks)

Using bot networks or automated claiming

Providing false information to appear eligible

Colluding with others to manipulate eligibility

Buying or selling airdrop allocations before claiming

Penalties:

Immediate disqualification and forfeiture

Permanent platform ban

Clawback of previously claimed airdrops (if possible)

Legal action for fraud

7.2 Market Manipulation

Prohibited:

Coordinated pump-and-dump schemes after airdrop

Wash trading to manipulate token price

Spreading false information about airdrop or tokens

Insider trading based on airdrop information

Penalties:

Legal action under securities/fraud laws

Referral to SEC or other regulators

Civil and criminal liability

7.3 Sanctions Violations

Prohibited:

Claiming airdrops while located in sanctioned jurisdiction

Using VPN/proxy to circumvent geographic restrictions

Claiming on behalf of sanctioned persons

Transferring airdropped tokens to sanctioned addresses

Penalties:

Immediate forfeiture

Report to OFAC

Civil penalties up to $20 million per violation

Criminal prosecution (up to 30 years imprisonment)

8. No Guarantees or Representations

8.1 No Value Guarantee

Airdropped tokens:

Have NO guaranteed or minimum value

May be worth $0 (zero)

May decline in value after distribution

May never be tradable on any exchange

May become worthless if platform fails

8.2 No Future Airdrops

Past airdrops do NOT guarantee future airdrops:

Each airdrop is separate and independent

Eligibility for one airdrop ≠ eligibility for future airdrops

VFT Chain LLC may cease all airdrops at any time

No expectation or reliance on future distributions

8.3 No Employment or Compensation

Airdrops are NOT:

Employment compensation

Contractor payments

Equity or profit-sharing

Partnership distributions

Subject to employment laws

Recipients are NOT:

Employees of VFT Chain LLC

Contractors or consultants

Partners or co-venturers

Entitled to any benefits or protections

9. Compliance and Reporting

9.1 Anti-Money Laundering (AML)

Airdrop claims subject to:

OFAC sanctions screening

Transaction monitoring

Suspicious activity reporting (if warranted)

Enhanced due diligence for large amounts

High-risk claims:

May require KYC verification

May be delayed pending compliance review

May be denied if red flags identified

9.2 Regulatory Reporting

VFT Chain LLC may report:

Airdrop distributions to IRS (Form 1099-MISC if > $600, U.S. recipients)

Suspicious activity to FinCEN (SARs)

Sanctions violations to OFAC

Other reporting as required by law

9.3 User Representations

By claiming airdrop, you represent that:

All information provided is accurate and truthful

You are not located in prohibited jurisdiction

You are not on any sanctions list

You will comply with all tax obligations

You will use tokens lawfully

You have legal capacity to receive tokens

False representations = fraud (civil and criminal liability)

10. Modifications and Cancellations

10.1 Right to Modify

VFT Chain LLC reserves the right to:

Modify airdrop terms at any time

Change eligibility criteria

Adjust airdrop amounts or allocations

Extend or shorten claim periods

Impose additional requirements (e.g., KYC)

Changes effective upon announcement (website, email, or social media)

10.2 Right to Cancel

We may cancel airdrops if:

Fraud or abuse detected

Regulatory concerns arise

Technical issues prevent fair distribution

Business reasons require cancellation

Force majeure events occur

Cancellation results in:

No tokens distributed

No compensation or alternative distribution

No liability to VFT Chain LLC

10.3 Force Majeure

Airdrops may be delayed or canceled due to:

Natural disasters or catastrophes

Wars, conflicts, or terrorism

Government actions or regulatory changes

Technical failures or security breaches

Acts of God or unforeseeable events

No liability for force majeure delays or cancellations

11. Disclaimers and Limitations

11.1 No Warranties

Airdrops provided "AS IS":

No warranty of merchantability

No warranty of fitness for purpose

No warranty of value or functionality

No warranty of continued platform operation

11.2 Limitation of Liability

VFT Chain LLC's maximum liability: $100 USD (total) NOT liable for:

Token value loss

Lost profits or opportunities

Tax liabilities or penalties

Errors in airdrop distribution

Technical issues or failures

Indirect, consequential, or punitive damages

11.3 Indemnification

You agree to indemnify VFT Chain LLC from claims arising from:

Your violation of these terms

Your tax obligations or non-compliance

Your misuse of airdropped tokens

Your false representations or fraud

Your violation of applicable laws

12. Dispute Resolution

12.1 Binding Arbitration

All disputes resolved via:

Individual binding arbitration (NO class actions)

American Arbitration Association (AAA) rules

One arbitrator selected per AAA rules

Arbitration location: Wilmington, Delaware

Governing law: Delaware law

12.2 Waiver of Class Actions

YOU WAIVE:

Right to participate in class action lawsuits

Right to jury trial

Right to appeal arbitration decisions (except narrow grounds)

12.3 Small Claims Exception

Small claims court exception:

Claims < $10,000 may be brought in small claims court

Must be individual claims (no class actions)

Jurisdiction: Delaware or your local small claims court

13. Privacy and Data

13.1 Data Collection

Airdrop program collects:

Wallet addresses and balances

Email addresses (if provided)

IP addresses and geolocation data

Platform activity and usage data

KYC documents (if required)

Tax identification information (if required)

13.2 Data Use

Data used for:

Eligibility determination

Airdrop distribution

Tax reporting (1099-MISC forms)

AML/sanctions compliance

Fraud prevention

Platform analytics

13.3 Data Sharing

Data may be shared with:

IRS and tax authorities (required reporting)

Law enforcement (legal requests)

Blockchain analytics providers (compliance screening)

Third-party KYC vendors (if verification required)

See Privacy Policy for complete information

14. Intellectual Property

14.1 VFTChain Trademarks

Airdrop recipients may NOT:

Use VFTChain trademarks in business names

Imply endorsement or partnership with VFT Chain LLC

Create derivative logos or branding

Use trademarks in domain names without permission

Nominal use permitted:

Stating "I received VFTC airdrop" is acceptable

Sharing official airdrop announcements

Using trademarks in factual context (no confusion)

14.2 No License Granted

Airdrop does NOT grant:

Any intellectual property licenses

Rights to VFTChain platform technology

Access to proprietary information

Partnership or co-ownership rights

15. Updates and Communication

15.1 Airdrop Announcements

Official channels ONLY:

VFTChain.com website announcements

Official email (sent from @vftchain.com addresses)

Verified social media accounts

Platform notifications (when logged in)

BEWARE OF SCAMS:

VFT Chain LLC will NEVER ask for private keys or seed phrases

NEVER send tokens to claim airdrops (legitimate airdrops are free)

Verify ALL communications through official channels

15.2 Terms Updates

These terms may be updated:

Check "Last Updated" date before each airdrop claim

Material changes announced via official channels

Continued participation = acceptance of updated terms

16. Contact and Support

16.1 Questions

For airdrop-related questions: Email: Thomas@vftchain.com Subject: "Airdrop Inquiry" Response time: 10 business days for legitimate inquiries

16.2 Dispute Resolution

For eligibility disputes:

Submit written appeal to Thomas@vftchain.com

Include wallet address, evidence, and explanation

Compliance team reviews within 10 business days

Decisions are final

16.3 No Phone Support

We do NOT provide phone support:

Beware of scammers claiming to be VFT Chain LLC support

All support via email or platform tickets only

17. Governing Law

17.1 Applicable Law

Governed by:

Laws of the State of Delaware, United States

U.S. federal law (where applicable)

Local laws in user's jurisdiction (where more restrictive)

17.2 Jurisdiction

Exclusive jurisdiction:

Delaware state or federal courts (for non-arbitrable matters)

Arbitration seated in Delaware

18. Severability

If any provision is invalid or unenforceable:

That provision will be limited to minimum extent necessary

Remaining provisions remain in full force and effect

Invalid provisions replaced with valid provisions achieving similar intent

19. Complete Agreement

These Airdrop Terms, together with:

Securities Disclaimer

Risk Disclosures

All other VFTChain legal documents

constitute the complete agreement regarding airdrops. No oral or written representations outside these documents are binding.

20. Final Warnings

READ CAREFULLY:

TAX LIABILITY:

You will owe taxes on airdropped tokens in most jurisdictions

Tax bill may exceed token value if price drops

Tax evasion is a crime (prison + fines)

Consult tax advisor BEFORE claiming

NO GUARANTEES:

Tokens may be worthless ($0)

No exchange listings guaranteed

Platform may fail or shut down

All risks disclosed in Risk Disclosures document

COMPLIANCE MANDATORY:

Sanctions violations = federal crime

Fraud or false information = criminal prosecution

Sybil attacks or farming = permanent ban

BY CLAIMING AIRDROP, YOU ACCEPT ALL TERMS, RISKS, AND TAX OBLIGATIONS. IF YOU DISAGREE OR CANNOT COMPLY, DO NOT CLAIM AIRDROP.

Last Updated: October 29, 2025 Version: 1.0 Document ID: VFTC-AIRDROP-TERMS-2025-v1.0