Legal Framework

Terms of Use

Last updated: April 2026

1. Acceptance of Terms

By accessing or interacting with the AngryBot Protocol ("Protocol"), including its smart contracts, website, and associated tools, you ("User") agree to be bound by these Terms of Use. If you do not agree, do not use the Protocol.

2. Nature of the Protocol

AngryBot is an autonomous, decentralized trading protocol deployed on the Polygon blockchain. It consists of:

  • An immutable smart contract that governs deposits, withdrawals, profit distribution, and rebase mechanics
  • An automated trading bot that executes strategies on Polymarket
  • A monitoring system that manages profit cycles and daily performance adjustments

The Protocol operates autonomously based on its coded rules. No individual or entity has the ability to alter the core mechanics after deployment.

3. Eligibility

  • You must be at least 18 years of age
  • You must have the legal capacity to enter into binding agreements in your jurisdiction
  • You are responsible for ensuring compliance with your local laws
  • The Protocol does not restrict access based on geography — it is a permissionless, open protocol

4. Protocol Mechanics

  • Deposits: Minimum 250 USDC. User receives credits 1:1. Principal locked for 6 months.
  • Profits: Claimable at any time. 60% distributed to users, 40% performance fee.
  • Withdrawals: Available after 6-month lock. Processed via queue on next profit deposit.
  • Rebase: Daily adjustment based on real bot performance. Can be positive or negative.
  • Fees: 5% deposit fee (minted as credits). 1% withdrawal fee. Subject to admin adjustment within hardcoded caps.

5. Risks

By using the Protocol, you acknowledge and accept the following risks:

  • Market Risk: Trading involves substantial risk. Past performance does not guarantee future results. The bot may incur losses.
  • Smart Contract Risk: Despite auditing efforts, smart contracts may contain vulnerabilities.
  • Liquidity Risk: Withdrawals are processed via a queue system and may take time.
  • Regulatory Risk: The regulatory landscape for decentralized protocols is evolving.
  • Total Loss Risk: You may lose all deposited funds. Only use funds you can afford to lose.

6. No Financial Advice

Nothing in this Protocol, website, or documentation constitutes financial, investment, legal, or tax advice. Users should conduct their own research and consult qualified professionals before interacting with the Protocol.

7. Intellectual Property

The AngryBot brand, logo, website design, and proprietary trading algorithms are protected. The smart contract source code is publicly verifiable on Polygonscan for transparency purposes.

8. Limitation of Liability

The Protocol is provided "AS IS" without warranties of any kind. To the maximum extent permitted by law, the Protocol contributors shall not be liable for any indirect, incidental, special, consequential, or punitive damages, including loss of funds, profits, or data.

9. Indemnification

You agree to indemnify and hold harmless the Protocol and its contributors from any claims, damages, or expenses arising from your use of the Protocol or violation of these Terms.

10. Governing Law

These Terms shall be governed by and construed in accordance with the laws applicable to decentralized autonomous protocols, with disputes subject to arbitration.

Regulatory Analysis

Why AngryBot Is Not a Security

11. The Howey Test Analysis

Under U.S. securities law, the Howey Test (SEC v. W.J. Howey Co., 1946) defines an "investment contract" (security) as a transaction where:

  1. There is an investment of money
  2. In a common enterprise
  3. With an expectation of profits
  4. Derived from the efforts of others

AngryBot addresses each prong:

Investment of Money

Users deposit USDC into a smart contract and receive protocol credits. This functions as a software license granting access to an automated trading system — not an equity stake, bond, or share in a company. There is no issuer, no corporate entity, and no promise of ownership.

Common Enterprise

The Protocol operates as an autonomous, open-source software system. There is no centralized corporate entity pooling funds for a common business purpose. The smart contract executes predefined rules immutably — the same way a vending machine operates.

Expectation of Profits

Users interact with an automated trading tool. Returns (positive or negative) are a function of algorithmic performance, not guaranteed dividends. The Protocol makes no promises of profit. Rebase can be negative. Users can lose capital. This is software performance, not an investment return.

Efforts of Others — The Critical Prong

This is where the Howey Test most clearly fails. AngryBot is an autonomous protocol:

  • The smart contract is immutable after deployment — no human can change the rules
  • The trading bot operates algorithmically without human intervention
  • Profit distribution is automated on-chain via coded mechanics
  • Users can independently verify all operations via the public trading wallet and Polygonscan

There is no "management team" making discretionary investment decisions on behalf of users. The software operates autonomously, analogous to using a licensed software tool.

12. SEC's Framework for "Investment Contract" Analysis

In its 2019 guidance ("Framework for 'Investment Contract' Analysis of Digital Assets"), the SEC acknowledges that digital assets may not be securities when:

  • The network is sufficiently decentralized
  • The asset has consumptive utility (used to access a service)
  • There is no reliance on a centralized promoter
  • The asset functions within a fully operational network

AngryBot credits function as access tokens to an automated trading protocol — they have consumptive utility, not speculative investment characteristics.

13. International Regulatory Alignment

Paraguay — Law No. 6910/2022 (Virtual Assets)

Paraguay's virtual asset regulation recognizes blockchain-based activities including mining, trading, and custody of virtual assets. The law establishes a regulatory sandbox approach that distinguishes between virtual assets and securities. Autonomous protocols operating on public blockchains fall under virtual asset classification, not securities regulation. The law focuses on service providers (exchanges, custodians), not on decentralized protocols themselves.

Bahamas — Digital Assets and Registered Exchanges Act (DARE), 2020

The Bahamas' DARE Act creates a comprehensive framework for digital assets that explicitly differentiates between digital tokens that function as securities and those that function as utility or access tokens. Under Section 2 of DARE, a digital asset is only a security if it meets the traditional definition. The Act recognizes that tokens providing access to a platform, service, or protocol are not securities under Bahamian law. Furthermore, the Bahamas has positioned itself as a progressive digital asset jurisdiction with the Securities Commission of The Bahamas actively encouraging blockchain innovation.

El Salvador — Bitcoin Law & Digital Asset Framework

El Salvador's progressive stance on digital assets creates a favorable environment for decentralized protocols. The jurisdiction recognizes the legitimacy of blockchain-based financial tools and does not classify autonomous protocol interactions as securities transactions.

14. The "Honest Test" — Full Transparency

SEC Commissioner Hester Peirce and various legal scholars have advocated for a transparency-first approach to digital asset regulation. The principle is simple:

"If a project is fully transparent about its operations, risks, and mechanics — and users can independently verify everything — the regulatory concern of investor protection is substantially addressed."

AngryBot embraces this principle completely:

  • Open-source smart contract — verified on Polygonscan, anyone can read the code
  • Public trading wallet — every trade visible on-chain in real-time
  • Automated profit distribution — no human discretion, coded rules only
  • Transparency Dashboard — live balances, historical data, complete audit trail
  • Clear risk disclosures — including the possibility of total loss
  • Immutable rules — the 60/40 split cannot be changed after deployment

When every dollar is tracked, every trade is verifiable, and every rule is immutable, the traditional regulatory concerns about fraud, manipulation, and information asymmetry are structurally eliminated by the technology itself.

15. Classification Summary

Protocol TypeAutonomous Decentralized Trading Protocol
Token ClassificationUtility / Access Token (protocol credits)
Corporate EntityNone — decentralized software
Human DiscretionNone — all operations are algorithmic
Profit GuaranteeNone — performance can be negative
Transparency Level100% on-chain verifiable
Securities ClassificationDoes not meet Howey Test criteria

16. Disclaimer

This regulatory analysis is provided for informational purposes only and does not constitute legal advice. The regulatory classification of digital assets varies by jurisdiction and is subject to change. Users are responsible for understanding and complying with the laws applicable in their jurisdiction. We recommend consulting with qualified legal counsel before interacting with any decentralized protocol.

17. Changes to These Terms

We reserve the right to modify these Terms at any time. Continued use of the Protocol after changes constitutes acceptance of the updated Terms.