Risk of Loss of Private Keys Sample Clauses
The 'Risk of Loss of Private Keys' clause defines which party bears responsibility if private cryptographic keys are lost, stolen, or otherwise compromised. Typically, this clause specifies that the party in possession of the private keys must take reasonable measures to safeguard them, and may clarify that any resulting loss of access to digital assets or funds is at their own risk. Its core function is to allocate the risk associated with the security of private keys, ensuring that both parties understand who is liable for losses arising from key mismanagement or security breaches.
Risk of Loss of Private Keys. The Tokens may be held by token holder in his digital wallet or vault, which requires a private key, or a combination of private keys, for access. Accordingly, loss of requisite private keys associated with such token holder’s digital wallet or vault storing the Tokens will result in loss of such Tokens, access to token holder’s Token balance and/or any initial balances in blockchains created by third parties. Moreover, any third party that gains access to such private keys, including by gaining access to login credentials of a hosted wallet or vault service the token holder uses, may be able to misappropriate the token holder’s Tokens.
Risk of Loss of Private Keys. The Tokens Exchanged by Acquiror may be held by Acquiror in Acquiror’s digital wallet or vault, which requires a private key, or a combination of private keys, for access. Accordingly, loss of requisite private keys associated with Acquiror’s digital wallet or vault storing the Tokens will result in loss of such Tokens, access to Acquiror’s Token balance and/or any initial balances in blockchains created by third parties. Moreover, any third party that gains access to such private keys, including by gaining access to login credentials of a hosted wallet or vault service Acquiror uses, may be able to misappropriate Acquiror’s Tokens. The Company Parties are not responsible for any such losses.