Bundles Terms and Conditions

1. ACCEPTANCE OF TERMS

The following Terms and Conditions (these “Terms”) apply, in addition to Luno’s standard Terms of Use, to any person that utilises Luno’s bundles products (“Luno Bundles”), through Luno.com or any associated mobile applications, website, or APIs (together, the “Luno Site”). Defined terms used but not specifically defined in these Terms shall bear the meaning ascribed thereto in Luno’s standard Terms of Use.

These Terms are an addendum to, and therefore form part of, the above mentioned Terms of Use, and accordingly constitute a legally binding agreement between you and the Luno entity with whom you have contracted under Luno’s Terms of Use. If a matter is not specifically provided for in these Terms, they will be regulated by the Terms of Use. If any conflict is identified between these Terms and the Terms of Use, the provisions of these Terms will prevail. For Luno’s Blue Chip+ Bundle, defined below, if there is a conflict identified between these Terms and the Discretionary Mandate, the provisions of the Mandate will prevail. Repetition in these Terms of certain but not all of the provisions of the Terms of Use is for emphasis only and should not be interpreted as meaning that the provisions of the Terms of Use, that have been omitted, do not apply.

For the purposes of these Terms, any reference to “we” “us” “our” “Luno” and/or any similar term shall be construed as reference to the Luno entity with whom you are contracting.

By utilising Luno Bundles, you unconditionally accept these Terms and agree to be bound by and act in accordance with them. You also accept and agree that you are solely responsible for understanding and complying with all laws, rules, regulations and requirements of the jurisdiction in which you live that may be applicable to your use of Luno Bundles, including but not limited to, those related to taxation, export or import activity, or foreign currency transactions.

Please read these Terms carefully before using the Luno Bundles because they affect your legal rights and obligations.

2. AMENDMENT OF TERMS

Luno may amend these Terms from time to time. You should visit the Luno website regularly to check when these Terms were last updated and to review the current Terms. We will do our best to notify you of any amendments to these Terms that we consider likely to materially affect your rights and obligations. Any such notice will be posted on the Luno Site, or sent by email to the email address associated with your Luno Account.

The continued use of Luno Bundles, after any amendment to these Terms, constitutes your acceptance of these Terms, as modified by such amendment. If you do not accept these Terms, or any amendment to them, you must immediately stop using the Luno Bundles product.

3. LUNO BUNDLES 

Luno Bundles is a proprietary technology that allows you to directly own, and securely store, a broad selection of crypto assets based on predetermined operational rules as set out in these Terms, read together with the applicable Bundle Methodology (as defined in section 4 below). This method, commonly referred to as “direct indexing”, aims to replicate the performance of a broader index by way of an instruction from you, the customer, to purchase the underlying crypto assets directly in accordance with the inclusion and weighting criteria of the index. When purchasing any Luno Bundle from Luno, you are purchasing the underlying crypto assets forming part of that Luno Bundle, and will own them yourself.

Luno Large Cap Bundle

The Luno Large Cap Bundle is a passive investment product designed to track the performance of the CoinDesk 5 Index (“Luno Large Cap Bundle”). You acknowledge and agree that, for purchases of the Luno Large Cap Bundle, Luno may itself act as counterparty in respect of buy or sell transactions. You acknowledge and agree that any such inventory is priced in accordance with Luno’s standard pricing methodology and that such price may differ from the current open market price.

Luno Blue Chip+ Bundle

The Luno Blue Chip+ Bundle is an investment offering where you authorise Luno, via a Discretionary Mandate, to manage and rebalance a basket of crypto assets on your behalf (“Luno Blue Chip+ Bundle”). Luno maintains an operational ‘float’ of crypto assets at group level. When purchasing the Luno Blue Chip+ Bundle, you are buying each crypto asset forming part of that Bundle itself directly. You acknowledge and agree that Luno will earn fees payable by you, as disclosed at section 9 of the Terms. 

Luno Bundles may not be available in jurisdictions which Luno determines would not be feasible for regulatory and/or policy reasons. Due to the dynamic nature of regulatory requirements, and jurisdictional differences in such requirements, we reserve the right to update our list of prohibited jurisdictions and/or refuse to offer Luno Bundles in a particular jurisdiction, in our sole and absolute discretion.

Luno shall be entitled, without liability to you, to suspend its offering of Luno Bundles, to suspend the purchase of Luno Bundles, to limit the size of transactions relating to Luno Bundles, to prioritise certain transactions relating to Luno Bundles on whatever criteria Luno decides, or to impose delays in giving effect to buy and sell instructions relating to Luno Bundles from time to time, in its sole discretion.

Luno shall be entitled at any time to purchase all of your Luno Bundles should it cease to offer Luno Bundles, or should it decide to terminate any or all of its services to you as contemplated in clause 14 below.

4. LUNO BUNDLES METHODOLOGY

Luno Bundles methodology refers to the criterion for inclusion of crypto assets within any Luno Bundle, and the weightings thereof, which are available in an informational document, comprising the system of methods used for that particular Bundle (the “Methodology”). Where a Luno Bundle is based on the Methodology of a third party model portfolio or index provider, we will utilise the Methodology of that third party provider, subject at all times to these Terms. By purchasing a Luno Bundle, you instruct Luno to give effect to the Methodology by buying and selling for your account the applicable underlying crypto assets in accordance with the weighting set out in the applicable Methodology. 

Each Luno Bundle will set out the following upfront:

• crypto asset eligibility requirements;

• details of rebalancing and reconstitution;

• potential treatment of hard forks;

• contingency treatment; and

• the rules for the model portfolio or index.

Luno Large Cap Bundle

By purchasing Luno’s Large Cap Bundle, you instruct Luno to track the performance of the CoinDesk 5 Index (“CD5 Index”), and we will give effect to your instructions by buying and selling, for your account, the applicable underlying crypto assets in accordance with the weighting set out in the CoinDesk’s CD5 Methodology. 

Luno Blue Chip+ Bundle

The Blue Chip+ Bundle does not constitute a collective investment scheme, mutual fund, unit trust, exchange traded fund or exchange traded note. When purchasing the Luno Blue Chip+ Bundle, you are purchasing the underlying assets directly and will own them yourself. By purchasing Luno’s Blue Chip+ Bundle, you agree and authorise Luno (as a Category II Financial Services Provider) to act on your behalf and to use its discretion to manage the Bundle, in accordance with the Discretionary Mandate. As the Index provider, Luno will track the performance of its proprietary Blue Chip+ Index, and will buy and sell for your account the applicable underlying crypto assets in accordance with the constituents and weighting set out in its Blue Chip+ Methodology. 

5. REBALANCING

Rebalancing refers to the process of buying and selling the underlying crypto assets in your Luno Bundle in order to meet the inclusion criteria, and weightings, of particular crypto assets in the applicable Methodology. This process is fully automated and takes place in accordance with the parameters set out in the applicable Bundle Methodology, which you instruct Luno to give effect to. 

You acknowledge and agree that buying and selling crypto assets, in order to rebalance the underlying crypto assets as prescribed by the applicable Methodology, will result in fees and costs for which you will be liable.

You further acknowledge that rebalancing may, from time to time, result in certain assets being excluded from your Luno Bundle, and other new assets being included in your Luno Bundle.

Luno Large Cap Bundle

For the avoidance of doubt, Luno does not exercise any discretion. Rebalancing is based always on CoinDesk’s CD5 Methodology, and Luno is limited to mechanically following the CD5 Methodology in accordance with your instructions.

Luno Blue Chip+ Bundle

In accordance with the Discretionary Mandate, you authorised Luno to exercise discretion, and to rebalance the Bundle from time to time in any manner which Luno deems fit, but always in compliance with the Mandate. 

6. DEVIATION FROM THE LUNO BUNDLES METHODOLOGY

Deviations may occur in the exceptional circumstances set out below:

• a constituent asset has encountered regulatory scrutiny or legal action has been initiated against the issuer of the applicable underlying asset;

• the crypto asset becomes cryptographically compromised;

• there is insufficient liquidity in the market to support the crypto asset;

• the custody of a crypto asset constituent is impaired or no longer available;

• Luno is unable, using ordinary commercial efforts, to acquire or realise sufficient underlying crypto assets for purposes of its operational ‘float’ of crypto assets;

• the Methodology is not clear or is not available for any reason; and/or

• the issuer of the relevant coin, or the coin itself, is found to be fraudulent.

In the event that any of the above circumstances should arise, then the particular crypto assets concerned will be excluded from the Luno Bundle.

The Luno Large Cap Bundle

Luno’s Large Cap Bundle is intended as a “passive” strategy, meaning that there is no discretionary or ‘active’ fund management taking place. Deviations in the passive strategy only arise from decisions instituted from CoinDesk's CD5 Methodology. 

Luno Blue Chip+ Bundle

Luno’s Blue Chip+ Bundle is actively managed by Luno on your authority and in accordance with the Discretionary Mandate. Luno may, at its discretion, deviate from the Blue Chip+ Index Methodology and discretionary decisions taken by Luno that involve constituents or weightings will be based on a comprehensive fundamental assessment of each constituent asset considered, including but not limited to listing criteria, market conditions, regulatory requirements, custody considerations, security incidents, or other relevant circumstances.

7. TRACKING ERRORS

There can be no assurance that the Luno Bundle will maintain complete accuracy in tracking its intended model portfolio or index. Specifically, you acknowledge that the matters set out in section 6 above, as well as transactional fees, rebalancing fees and deviations in pricing may cause tracking errors to arise between the Luno Bundles and the model portfolio or index. For example, it may not be possible to match, in transactions for your account, the purchase or sale price of crypto assets assumed for purposes of compiling the applicable portfolio or index. Luno provides no assurance as to the size of the anticipated tracking error at any given time. Transaction costs, deviations in pricing, liquidity constraints, execution delays, changes in constituent asset behaviour, and the fees described in section 9, may cause tracking errors to arise. Luno does not guarantee complete accuracy in tracking the Index.

To the maximum extent allowed by law, Luno, its licensors, employees, contractors, agents, suppliers and vendors shall bear no liability for any injury, damages or losses – whether direct or indirect, consequential, incidental, punitive, and whether arising out of negligence or otherwise – arising in connection with Luno Bundles, or any data or values relating thereto, including in respect of tracking error or downtime.

8. HISTORIC BUNDLE DATA

Where Luno has illustrated hypothetical values for Luno Bundles based on historic crypto asset prices, you should note the assumptions accompanying such illustrations. You should note further that as illustrations are provided for informational purposes only and, importantly, that past performance is not indicative of future results.

9. FEES

You acknowledge and agree that, as consideration for developing and making Luno Bundles available to you, Luno will earn fees payable by you and may pass certain costs on to you. You also acknowledge that the deduction of these fees may contribute to the tracking errors described in section 7 above.

The fees and costs associated with Luno Bundles can be viewed on the Fees page of the Luno website. Luno reserves the right to change our fees and costs at any time and will update the Fees page accordingly.

10. PRODUCT FEATURES AND LIMITATIONS

The inclusion of a crypto asset within any of Luno Bundles does not mean that such crypto asset will be a Supported Cryptocurrency as contemplated in the Terms of Use.

The underlying constituent crypto assets forming part of any Luno Bundle will not be capable of being dealt with separately. Accordingly, you will not be able to send such crypto assets to another account or receive such crypto assets. You may only buy or sell the applicable Luno Bundles as a whole, and not the individual crypto assets which make up that Bundle, piecemeal. You will furthermore only be able to buy from, or sell to, Luno directly.

When a value is ascribed to your Luno Bundle, and displayed to you through the Luno Site, you acknowledge that such value is based on prevailing market prices available to Luno, for the underlying constituent cryptocurrencies which form part of the applicable Luno Bundles. These prices may not perfectly track the intended portfolio or index, as is contemplated in section 7 above, since the prices available to Luno will depend on liquidity for the relevant underlying constituent cryptocurrencies.

11. SERVICE AVAILABILITY

While we will do everything we can to provide continuous operations, Luno does not provide any warranty or guarantee in relation to the availability of any Luno Bundles. Without limiting the generality of the foregoing, we do not guarantee continuous access to the Luno Site or to your Luno Bundles, and make no representation that the Luno Site, Luno API, your Luno Account and/or your Luno Bundles or services offered therein will be available without interruption; or that there will be no delays, failures, errors, omissions or loss of transmitted information.

12. DISCLAIMER AND LIMITATION OF LIABILITY

The Luno Bundles and any related products or services are offered on a strictly “as-is” and “where-available” basis and Luno expressly disclaims, and you waive, all warranties of any kind, whether express or implied. Without limiting the generality of the foregoing, the Luno Bundles and any related products or services are offered without any warranty as to merchantability or fitness for any particular purpose.

You acknowledge and agree that purchase of any of Luno Bundles is at your own risk. To the maximum extent allowed by law, Luno, its affiliates and subsidiaries, its licensors, and their respective employees, contractors, agents, suppliers and vendors shall have no liability or responsibility whatsoever for any damages or loss - whether direct or indirect, consequential, incidental, punitive or otherwise - arising in connection with Luno Bundles or any data or values relating thereto, whether arising out of negligence or otherwise. Without limiting any of the foregoing, in no event shall Luno have any liability for any lost profits or indirect, punitive, special or consequential damages or losses, even if notified of the possibility thereof.

The above limitations of liability shall apply to the fullest extent permitted by law in the applicable jurisdiction. Because some jurisdictions do not allow the exclusion of certain warranties or the limitation or exclusion of liability for incidental or consequential damages, some of the limitations in this section may not apply to you.

13. FINANCIAL ADVICE

Under no circumstances does any information contained on the Luno Site, or provided to you through your Luno Account, or in relation to Luno Bundles by any employee, agent or affiliate of Luno, constitute financial, investment or other professional advice.

The offering of Luno Bundles does not constitute an invitation to invest in securities or a collective investment scheme. Luno Bundles are traded on Luno’s crypto asset platform, and as such, subject to the risks associated with crypto trading, including but not limited to market volatility, limited liquidity, regulatory changes and operational risks. You are solely responsible for any decision to invest into any of Luno Bundles and such a decision should take into account your own financial circumstances and risk tolerance.

It is the responsibility of any persons wishing to acquire crypto assets using Luno's Platform to observe all applicable legal requirements and tax consequences within the countries of their citizenship, residence, domicile, and place of business with respect to the acquisition, holding or disposal of the relevant crypto assets, and any foreign exchange restrictions that may be relevant thereto. You should seek independent financial, tax, and legal advice before investing in any Luno Bundle.

14. RESTRICTION, SUSPENSION AND TERMINATION

Luno reserves the right to restrict, suspend or terminate your Luno Bundles where:

• we reasonably suspect that your Luno Account and/or Luno Bundles is the subject of an operational or other error, in which case we may be required to suspend access to your account until such time as the error is rectified;

• we reasonably suspect that your Luno Account and/or Luno Bundles has been or is being used in relation to any unlawful, fraudulent or Prohibited Activity, or in breach of these Terms or our standard Terms of Use;

• we reasonably suspect that you or your Luno Account and/or your Luno Bundles is or has been associated with, or poses a high risk of, money laundering, financing of terrorism, fraud, or any other financial crime;

• we reasonably suspect you of taking any action that Luno considers to be a circumvention of Luno’s controls, including but not limited to opening multiple Luno Accounts and/or Luno Bundles;

• we reasonably suspect your involvement in any attempt to gain unauthorised access to any Luno Account and/or Luno Bundles;

• your Luno Account and/or Luno Bundles is or appears to be the subject of any legal, regulatory or government process and/or we, in our sole discretion, consider there to be a heightened risk of legal or regulatory non-compliance;

• we are compelled to do so by a prima facie valid subpoena, court order, or other binding order of a government or regulatory authority; or

• your name appears on a government or international body sanctions list.

Luno will make all reasonable efforts to provide you with notice of any decision to restrict, suspend or terminate your Luno Account and/or Luno Bundles, unless we are prevented from doing so by any legal or regulatory process or requirement, or where doing so may compromise Luno’s security and/or risk management procedures. You accept and agree that Luno is under no obligation to disclose to you the fact of or reason for any decision to restrict, suspend or terminate your Luno Account or Luno Bundles, and shall have no liability to you in connection with the restriction, suspension or termination of either Luno Bundles or your Luno Account.