Common use of Custodial Relationship Clause in Contracts

Custodial Relationship. (a) Account Holder shall use Xapo’s Services to request the establishment, and Xapo shall thereby establish and maintain a Xapo wallet account (the “Wallet”) and vault account (the “Vault,” and together with the Wallet and any subaccounts associated therewith, the “Account”) in the name of Account Holder. (b) Xapo hereby acknowledges and agrees that it is a custodian of the bitcoins stored by Account Holder in the Account, and that Xapo has no right, interest, or title in such Custodial Coins. Xapo further represents that it does not engage in any fractional reserve banking and, as such, none of the Custodial Coins will be used by Xapo in connection with any loan, hypothecation, Lien or claim of (or by) Xapo or otherwise transferred or pledged to any third party. Xapo hereby confirms that the Custodial Coins do not constitute an asset on the balance sheet of Xapo and that the Custodial Coins will at all times be identifiable in Xapo’s database as being stored in the Account on behalf of Account Holder.