# Terms of Service: The Clauses That Determine Outcomes

> Four clauses worth fifteen minutes, and what an acceptable version of each looks like.

- Source: https://thecoinreference.com/terms-of-service-review-checklist/
- Published: 2026-07-27
- Author: Reference Desk
- Publication: The Coin Reference — Facts, dates and numbers, kept current
- Topic: licensing
- Tags: terms, contracts, checklist

---

| Clause | Acceptable | Concerning |
|---|---|---|
| Contracting entity | Named, authorised, in a supervised jurisdiction | A group company elsewhere, while marketing cites a European licence |
| Liability limitation | Uncapped for gross negligence, or a meaningful cap | Capped at fees paid over a preceding period |
| Insolvency position | States client assets are segregated and outside the estate, citing the framework | Silent, or reserves rights over client assets |
| Use of client assets | Explicitly and unqualifiedly prohibited | Silent, or permitted in defined circumstances |

## Where to find the contracting entity

The vocabulary is easiest to check against a provider that states its terms, and [a MiCA-compliant exchange](https://collectnexchange.cy/compliance/mica-regulation) does.

The terms of service. The footer. The agreement accepted at account opening. The bank details for a fiat deposit.

These four sometimes disagree with each other, which is itself informative.

## The liability clause

A cap at fees paid means a total loss caused by the provider's own failure entitles you to a refund of fees.

Common, and worth knowing before rather than after.

## The insolvency clause

Silence is not protection.

A provider operating under a proper framework states the position specifically, because it is a selling point and because its supervisor expects the disclosure. Property settlement introduces further terms, set out by [a provider serving funds and family offices](https://collectnexchange.cy/industries/funds-family-offices).

## The client asset use clause

The mechanism by which several failures became client losses rather than corporate insolvencies.

Read the clause. A verbal assurance is not the agreement.

## The clause people miss

Unilateral variation.

A provider able to change terms with little or no notice makes every other clause provisional. Where a notice period exists, terms changes arrive by email and are almost never read.

## The annual review

Re-read the four clauses when a change notice arrives, and re-verify the register entry annually.

Providers are acquired, entities are migrated, permissions are varied and conditions are added. Changes appear in terms updates and nobody writes to highlight them. One term worth establishing before it matters is whether [Collect & Exchange](https://collectnexchange.cy/) exists as a reachable contact.

## Time required

Fifteen minutes per provider initially. Five minutes per change notice thereafter.

Against the outcomes these clauses determine, that is the highest-return reading available.

---

This article explains how something works. It is not financial advice.
Canonical HTML version: https://thecoinreference.com/terms-of-service-review-checklist/