Terms & Conditions

TERMS AND CONDITIONS FOR TRADING ON THE DODAQ® SYSTEM

 

1.    Identity of the parties

DODAQ NV (“DODAQ”) is a trademarked service provider registered in Antwerp, with registered place of business at Rijfstraat 2-4, Antwerp 2018, Belgium.

“You” are either a company or an individual that engages in selling and/or buying particular diamonds through the DODAQ® system for professional investment purposes and/or trade.

The “Customer” is a company or individual that has registered for an account on-line with the DODAQ® system.

The “Issuer” is a Customer who introduces diamonds in the DODAQ® system.

The “Storage Facility” or “Storage Facilities” is the location and provider designated by DODAQ in Geneva, Antwerp or any other location to take custody of diamonds in sealed parcels into the DODAQ® system for storage.

The “Logistic Service” or “Logistic Services” refers to the entity designated by DODAQ to handle the transportation of diamonds in sealed parcels as may be required for delivery of particular diamonds within the DODAQ® system.

DODAQ manages the DODAQ® system which is an automated exchange for certified polished diamonds facilitating buying and selling, and providing storage facilities for its customers. DODAQ acts as a counterparty to each trade and as a custodian of its customer’s diamonds and funds. DODAQ assumes custodianship only at the time when the diamond is received into the vault of DODAQ’s designated Storage Facility and accordingly accepted by DODAQ, until the diamond has physically left the vault following instructions for delivery by the Customer.

2.    Deemed Acceptance and Prevailing versions

You agree to become a new Customer of DODAQ by registering for an account on-line. In becoming a Customer You are deemed to accept that only DODAQ's Terms and Conditions define the entire business relationship between DODAQ and You, and that any other conditions, including your own conditions, are explicitly, unconditionally and irrevocably excluded.

As of 12th January 2009 these are the Terms and Conditions for new DODAQ Customers. By giving thirty (30) calendar days notice of modifications DODAQ may from time to time modify its Terms and Conditions. For modified Terms and Conditions to become effective they must be published on the DODAQ website and DODAQ must also send the new Terms and Conditions to the email address provided as a contact point by You. During those thirty (30) calendar days You have the right to terminate the relationship under the old Terms and Conditions. You can effect a termination by selling or taking delivery of your diamond/s and withdrawing your money in the normal way. If You do not terminate the relationship in this way You are deemed to accept the modifications after thirty (30) calendar days.

3.    The purpose of our business relationship

You have chosen to become a DODAQ Customer in order to benefit from DODAQ's terms for trading and holding certified diamonds which are each unique, individual and as such identifiable assets. You expect to benefit from an efficient and substantially automated service and pay transaction fees and low levels of custody charges. 

In order to deliver your expectations DODAQ offers a service designed for high levels of automation across the internet and expects to earn a profit from the transaction fees and custody fees it charges.

4.    Data about you

To provide its services, DODAQ needs to retain on its computers information about You and You permit DODAQ to do so. In processing this personal information, DODAQ will respect the data protection laws that are applicable in accordance with its data protection policy. DODAQ undertakes not to disclose data about You to third parties except where required either (i) in the ordinary administrative course of completing your DODAQ transaction(s) or (ii) where required by law.

       4.1.    Identifying yourself

You undertake to identify yourself before funding your account according to the identity verification procedures required by DODAQ. You authorise DODAQ to make such enquiries as it may feel necessary to satisfy itself about the validity of your identity. You undertake to provide clear documented evidence of the single bank account from which your DODAQ deposits emanate and to which your money will be returned. This evidence will detail your Bank Country, Bank Name, relevant branch identifying codes, Account name, Account number, and, within Europe, the IBAN code.

You undertake to provide a minimum of one accepted form of photographic identity. You accept that your failure to identify yourself promptly and correctly or adequately may cause DODAQ not to enter into a business relationship with you. You hereby indemnify and keep indemnified DODAQ against losses which arise out of your failure to identify yourself promptly and correctly or adequately.

       4.2.    Contact details

DODAQ maintains contact details with You at an e-mail address and optionally at:

      •    a mobile telephone;
      •    an office/home telephone;
      •    an office/home address - via mail.

You accept a duty to keep your contact details held by DODAQ up to date and accurate, which You can do via the website. DODAQ is entitled to rely on the accuracy of the contact details supplied.

You accept that your failure to maintain your contact details correctly may negate some of the protections You seek in DODAQ. You hereby indemnify and keep indemnified DODAQ against losses which arise out of your failure to maintain your contact details correctly.

       4.3.    Security Passwords

Your personal and financial data held at DODAQ are protected from unauthorised access by a password and other access data which You have a duty to keep secret. Upon forgetting your password You may set a new one over a telephone conversation with DODAQ during which You will answer a series of security questions about your account.

DODAQ reserves the right to apply its standard time charge (at a rate of US$20) to your account for the time taken to reset a password.

DODAQ will notify a successful password reset to your contact email address. Modern encryption technology means DODAQ computers do not store your password in decipherable form and DODAQ staff does not know and cannot find out your chosen password.

Upon resetting your password You will be issued with a temporary password by DODAQ staff, who will require confirmation that You change it immediately to a new one invented by you. Then, once again, no one at DODAQ will know your password.

You accept the importance of keeping your password safe and confidential, and that the re-issue of a password entitles DODAQ to suspend your right to immediate withdrawal for a period not exceeding six (6) weeks.

5.    Communication between us

You accept that the primary means of communication with DODAQ is via the internet, and You agree that your electronic order confirmation results in a legally binding transaction, in the absence of a written signature.

       5.1.    Transmissions

You accept that during a logged in session on DODAQ all data which pass between You and DODAQ, in either direction, are passed across the internet using the https protocol, which incorporates a level of security widely accepted as offering extremely reliable privacy and accuracy in data transmission.

       5.2.    Email

DODAQ sends off-line information to You by email, including - but not limited to- acknowledgements of changes to your key account settings, login notifications, order confirmations, execution advices, contracts, monthly statements, and changes to Terms and Conditions. The DODAQ system records all outward email transmissions.

It is your responsibility to ensure that any nuisance email filters in use by You or your email service providers are not configured to block email from DODAQ. You understand and accept that DODAQ's duty in sending an email is deemed fulfilled when it places onto the public part of the Internet an email correctly addressed to your email contact address.

DODAQ is entitled to rely on your receipt and acceptance of the content of an email if within two (2) calendar days of the transmission no response by You has been received by DODAQ. In the event that You communicate an issue with content of a DODAQ email after this date any resolution will be considered in the context of the delay.

You understand and accept that email is not encrypted and that it operates with a similar degree of privacy as physical post, in that a network engineer, like a postman, has the ability to see email and attachments if he chooses to open your mail. You accept and understand that easily comprehended open format feedback to a known and used address is appropriate for reporting your completed business to you, off-line, and after the event.

       5.3.    SMS

DODAQ may use voice or SMS on mobile phones as a means of contacting You rapidly.

DODAQ is entitled to rely on your receipt and acceptance of the content of SMS communications if within thirty (30) minutes of the transmission no rejection of the information has been received by DODAQ. DODAQ is entitled to rely in this regard on the accuracy of its own transmission records when backed up by the independent confirmation of its telecommunications provider's records.

DODAQ is responsible for initiating SMS messages correctly according to the settings on your account, and ensuring that they are received by its SMS technology provider. But DODAQ is not responsible for losses You may incur as a result of an SMS message not being delivered in circumstances beyond DODAQ's direct control. This might occur if your mobile phone was switched off or was operating in a zone or on a service technology which was not reachable via the SMS technology providers employed by DODAQ.

       5.4.    Post

DODAQ may send information to You by post to your address on DODAQ records. DODAQ is entitled to rely on your receipt and acceptance of the content of posted communications if within seven (7) calendar days of the communication being sent no rejection of the information by You has been received by DODAQ. If your account diminishes in size below a level at which it is reasonable to communicate via the post then DODAQ reserves the right to suspend posted outputs.

6.    Special measures for your extra protection

       6.1.    Account Feedback

You are entitled to rely on DODAQ sending You emails in confirmation of any changes to the linked bank account settings on your DODAQ account.

       6.2.    The linked bank account

Where supplied together with your incoming payment DODAQ records details of your remitting bank account's details. You permit DODAQ to both record such data and check them against your identity documents in so far as they relate to your bank.

DODAQ records and presents the resulting bank details to You as your linked bank account. You can review the details of your linked bank account on the website at any time, but only in such a way as it may not be amended directly by You or by anyone who were to breach your security and log on to your DODAQ account.

You undertake to examine and verify the linked bank account details recorded by DODAQ under your DODAQ account's settings, and to notify DODAQ immediately if the details are incorrect.

DODAQ will always present to You the current details of your linked bank account at the time You request a withdrawal. When You accept those bank account details You agree that You are requiring DODAQ to remit the funds You withdraw to your linked bank account. DODAQ will not be responsible for any loss where You have accepted the banking details presented to You and they have turned out to be incorrect.

You are entitled to rely on DODAQ ensuring that in the ordinary course of events your money is returned to your linked bank account. You are also entitled to rely on DODAQ not modifying the linked bank account without correct procedure.

       6.3.    Modifying your linked bank account

Under circumstances where it is necessary to link your DODAQ account to a new bank account (for example, bank failure, or political/economic/ legislative changes in your country' of residence, or for any other reason including your choice to change your bankers) DODAQ is entitled to impose identity re-verification procedures before releasing diamonds or money to you, and to seek insurance cover against identity fraud at your expense.

Where You seek a change to your linked bank account You accept that your new bankers will be expected by DODAQ to endorse the continuity of your identity from your previously linked bank account to your new linked account. It is your responsibility to ensure that your new bankers will do this before You close your old bank account.

Where You request a change to your linked bank account You undertake to use an unchanged name on your new bank account, and You accept that it must match with a copy of a generally accepted form of identification previously submitted to DODAQ.

You are entitled to rely on DODAQ acknowledging a change to your linked bank account via email.
You accept that a modification to your linked bank account entitles DODAQ to suspend your right to withdrawal from the DODAQ system for a period not exceeding six (6) weeks.

       6.4.    Returning reasonable value

The DODAQ system will not permit value in the form of money or diamonds respectively to be transferred away from your DODAQ account without reasonable return of value in the opposite form (diamonds or money respectively).

You are entitled to rely on this protection such that if illicit access to your account were to occur a criminal could not transfer your property to their own control except by benefiting your account with the proceeds equivalent to a fair trading price.

7.    Care of your money: Pooled Accounts

DODAQ has selected ABN Bank to look after your account funds held at DODAQ.

       7.1.    ABN Bank [the bank]

As at December 2008 ABN Bank maintains AA- credit rating at Standard & Poors (a major international credit rating analyst). You accept that in selecting ABN Bank to look after your cash balance DODAQ has taken due care in ensuring that the bank charged with looking after your money is of appropriate reputation and rating.

You also accept and acknowledge the possibility of subsequent downwards revision of bank credit ratings without considering them to be the responsibility of DODAQ.

DODAQ accepts a duty to place funds received from You directly into segregated Client Accounts maintained for multiple currencies at the bank for the express purpose of pooling un-invested DODAQ customer funds.

On your behalf DODAQ is permitted to manage your money on the segregated Client Account exclusively for the following purposes:

1. It may be used to buy diamonds through the DODAQ system according to your order placed on the DODAQ website. In this case your funds do not move from the bank account but the entitlement to it is transferred within DODAQ records to the selling holder of the vaulted diamond, while simultaneously the outright ownership of the vaulted diamond is transferred to you.

2. It may be used to pay withdrawals of your funds back to You - but never beyond the extent to which You have available funds.

3. It may be used to pay DODAQ in respect of service and other charges earned according to the prevailing Terms and Conditions.

DODAQ undertakes to maintain at all times within the segregated Client Account sufficient funds to pay back the gross credit balances of all DODAQ Customers, and to have that money held at call for return, if required, within one (1) calendar day.

DODAQ undertakes to operate robust internal controls such that payments of Customer money at withdrawal get authorised only when at least two (2) senior officers of DODAQ have inspected and approved the payment instructions.

The Client Account statement from the bank shall be fully reconciled to DODAQ's own records every Belgium banking day. You acknowledge that the bank is entitled to act in good faith according to instructions given by DODAQ officers.

       7.2.    Acceptable ways of making deposits

Your money deposits are acceptable only through recognised banking channels which may change from time to time according to the details on DODAQ learn pages. Whether depositing by bank draft or by electronic transfer You understand that your bank will be expected to identify standard banking data on each incoming payment to DODAQ, including (i) your bank name (ii) your branch identifying code, (iii) your account name (iv) your bank account number and (v) your DODAQ user name (as the payment reference).

You accept that a failure by your bank to identify the source of your money may delay your DODAQ account being credited. Then DODAQ will place your funds safely in suspense, pending your contact with us, at which time your advice of the correct remittance details will cause the money to be placed directly into your DODAQ account where it will be capable of being used to buy diamonds immediately.

You accept that where You have provided us with necessary details independently of the actual bank transfer on which your money was received DODAQ is entitled to suspend your right to immediate withdrawal for a period not exceeding six (6) weeks.

       7.3.    Unacceptable ways of making deposits

You understand that You may not merge funds belonging to different parties within a single DODAQ account. You understand that where deposits from differently owned sources merge, or appear to merge, DODAQ is entitled to return the funds to the source having deducted a reasonable processing fee.

You will not deposit banknotes or coins for credit to your DODAQ account. DODAQ is entitled to return such cash deposits to the source bank having deducted a reasonable processing fee.

       7.4.    Withdrawing your money

Subject to the previous and correct verification of your identity You may make withdrawals of your available funds to your linked bank account. You undertake to re-check the details of your linked bank account presented to You as You make your withdrawal and You undertake to confirm your withdrawal only if You are satisfied with the linked bank details presented to you.

Provided that it is satisfied with the security of your withdrawal request DODAQ will remit funds to your linked bank account - as presented to You - via SWIFT, or other banking system generally considered appropriate to the payment.

DODAQ is entitled to subtract bank transfer costs from the sum to be remitted. If You wish to withdraw funds and your bank is not itself a SWIFT participant You accept that a correspondent bank - being a bank in your country which receives money via the international SWIFT transfer system, and which routes it to your bank - may deduct from the money sent a fee consistent with normal international banking practice.

You accept that DODAQ may need to perform additional security checks and there may be some delay prior to sending You your money. Any delay will depend both on the recent operation of your DODAQ account and on other circumstances of the withdrawal. Where your DODAQ account was promptly validated, and where your linked bank account has been long-standing and stable, You have the right to expect your money to leave DODAQ by the end of the business day following your request for payment.

       7.5.    How we treat small balances

Because of the cost of bank to bank transfers DODAQ will not pay residual account balances of less than US$50 or other currency equivalent.

Ordinarily sums below this threshold will be retained for account re-activation except that after an account has been empty of diamonds and inactive for one (1) year and remained beneath a currency equivalent balance of US$50, this small balance may - at DODAQ's discretion - be accumulated and contributed in a single payment to a recognised charity, on Customers’ joint behalf.

Where a small balance arises from a DODAQ promotion, and the account has neither been funded nor had the account holder's identity verified according to DODAQ's identity verification procedure, then after any period of inactivity exceeding three (3) months the balance may be returned to DODAQ's own resources as an unclaimed promotion.

       7.6.    Unsettled charges

If You retain a diamond holding but do not have a sufficient available money balance to settle your custody charges accrued, then DODAQ has the right to redeem its entitlement by a sale of your diamonds but only to the extent needed.

DODAQ accepts a duty to inform You by email a minimum of seven (7) calendar days prior to selling your holdings for this reason. Provided You remit sufficient funds in the intervening period DODAQ will not sell any of your diamonds.

       7.7.    Confidentiality, money laundering, and the linked bank account

DODAQ is designed to be a secure investment facilitator for legally acquired wealth. For reasons relating to both  security and anti money laundering legislation DODAQ requires deposits to come from a single bank account, or, after prior approval by DODAQ when the account was first set up, from a second bank account listed under identical name(s) and address as the linked bank account.

For reasons relating both to security and anti money laundering legislation DODAQ enforces the exit of funds to the linked bank account. A detected attempt by You to fund an account with money from an unapproved (by DODAQ) bank account will fail, and funds will be returned to You less normal banking expenses and an apportionment of reasonable time charges by DODAQ. There is no capability for transferring funds between accounts at DODAQ even where commonly owned.

DODAQ recognises your right to confidentiality where your identity has been validated. However where for whatever reason DODAQ becomes suspicious of an attempt at money laundering DODAQ actively assists the appropriate authorities in their efforts to detect it. DODAQ also keeps comprehensive records of funds and diamond dealing activity in order to assist the authorities in this regard.

8.    Care of your Diamonds: Form and location

DODAQ only takes diamonds that have been certified by recognised diamond grading laboratories. Diamonds which You buy through DODAQ remain in the vault of the Storage Facility where it was stored at the time of the purchase, until You decide to take delivery.

The Issuer will have the diamond identified beforehand by ensuring that the diamond and accompanying certificate match or by using an independent third party specialist to attest this.

Prior to issuance a confirmation that the diamond matches the accompanying certificate will be given by the Issuer. The diamond and certificate is packed and sealed in a tamper proof plastic holder by the Issuer or his designee and shall remain unopened at all times.

In any event the Issuer of the diamond will at all times remain responsible versus DODAQ for the 100% correspondence between the certificate and the diamond it describes.

The buyer through the DODAQ system shall, upon taking physical delivery of a diamond from the Storage Facility vault, be responsible for determining that the plastic holder said to contain the diamond is in a sealed condition and shows no sign of having been opened or tampered with, and that the diamond contained in the sealed tamper proof plastic holder conforms with the certificate, prior to leaving the Storage Facility. The Storage Facility only verifies that the sealed tamper proof plastic holder is intact upon delivery and has no responsibility for the accuracy of its contents.

       8.1.    Logistic Services/Storage Facility

DODAQ undertakes to provide Logistic Services/Storage Facility through an independent professional organisation of the highest reputation which is in the business of managing the shipping, storage and delivery of diamonds according to the practices of a professional diamond market.

       8.2.    DODAQ's Storage Agreement with the Storage Facility

You authorise DODAQ to act as your agent for arranging custody of your diamonds with the Storage Facility provider in their vault. DODAQ confirms to You that in the "Storage Agreement" with the Storage Facility, the diamonds, which are stored in sealed tamper proof plastic holder(s) have been designated as being the property of DODAQ Customers.

DODAQ confirms to You that Your diamond holdings shall be specifically identified and physically segregated at all times while in the Storage Facility.

DODAQ confirms to You that in the "Storage Agreement" the Storage Facility provider accepts responsibility for the sealed tamper proof plastic holder said to contain your diamonds (“parcel”) from the time the Storage Facility receives actual physical custody and control of the parcel for storage, until custody and control of the parcel has been relinquished by the Storage Facility according to DODAQ's instructions for making a withdrawal at the request of your valid instructions.(see 8.5)

DODAQ confirms to You that the Storage Agreement is effected for 12 months and shall renew automatically for a similar period, unless the Storage Facility elects to terminate the Storage Agreement by giving a ninety (90) days written prior notice to DODAQ of its intention to terminate the "Storage Agreement". In the event that such notice has been received by DODAQ, and if no alternate storage solution has been put in place in the intervening period, then DODAQ undertakes to inform You of the situation a minimum of thirty (30) days prior to the termination of the “Storage Agreement”, thereby allowing You such time as You may need to arrange an alternate mechanism for owning and storing your diamonds.

DODAQ undertakes that your diamonds will not be subject to any kind of lending, collateral or derivative transaction of any type and will remain your property in the safekeeping of the Storage Facility until sold or withdrawn according to your instructions received via DODAQ.

       8.3.    Liability

DODAQ undertakes to ensure your diamonds are insured against theft, loss and damage according to the accepted insurance standards of the diamond industry, and at a cost which is included in the charge You pay to DODAQ in respect of custody of your diamonds.

       8.4.    Ownership records

DODAQ maintains the master copy of ownership records. DODAQ agrees with You that in so far as they relate to You these records shall only be modified upon the execution of your valid instructions, made according to these Terms and Conditions.

       8.5.    Your right of withdrawal

You have a right of withdrawal of your diamonds from the DODAQ system. There is no fee for the withdrawal of your diamonds from the DODAQ system.

You understand that You cannot claim withdrawal directly from the vault operator. Your right to withdrawal is to be effected through DODAQ who has the means and responsibility for identifying You reliably. Upon instructing DODAQ to withdraw your diamonds You accept that DODAQ will act as an agent for arranging the withdrawal on your behalf; the withdrawal of diamonds will be Ex Works (Incoterms 2001).

Upon withdrawing diamonds You accept that You may lose anonymity where these transactions are monitored by appropriate authorities. If delivery is to be effected outside the Freeport, the diamonds may be subject to duties and/or taxes, if applicable, by the competent authorities. Duties and taxes vary according to the country and apply upon arrival of the goods in the recipient country. Any additional burden concerning customs clearance shall be exclusively borne by the recipient of the delivery.

It is your responsibility upon withdrawal to verify or make verify the conformity of the diamond with its certificate. Any claim for non-conformity made after withdrawal of the diamond and/or after breaking the seal, will be null and void.

9.    How your orders are processed

You acknowledge having read and understood all aspects of the operation of the DODAQ system from the online help system accessed from http://www.DODAQ.com/leam/index.

You understand that You may enter orders to buy and sell diamonds on the DODAQ system, at quantities and prices under your control, but only when having sufficient resources already at DODAQ to effect immediate settlement.

You agree that your orders are to be submitted to DODAQ's servers by yourself via the internet.

       9.1.    Order Validation

DODAQ will accept your orders to buy diamonds, provided You have sufficient available funds to settle the entire purchase.

DODAQ will accept your orders to sell diamonds, provided the quantity specified is currently stored and available on your behalf in the vault.

DODAQ accepts your orders at prices broadly consistent with current market prices. If one or more of the above conditions are not met your order will be rejected.

       9.2.    Order matching

Your orders on DODAQ are all limited as to price. Purchase limits place a maximum buying price on your purchase orders. Sale limits place a minimum selling price on your selling orders.

Your orders are also limited as to quantity of diamonds.

Your orders may also be limited as to an exact weight in carats.

On receipt of your order the DODAQ system automatically attempts to match the order with another participant's prior and opposing order, and subject to both participants' limits. The system will trade at the most attractive prices for your new order, achieving lowest possible price within the limit for purchases, end highest possible price above the limit for sales.

Any pre-existing order posted on the order board against which a new order is matched will achieve exactly its limit price.

To the extent that an order can be executed against pre-existing limit orders posted by other DODAQ users the order is executed immediately, and to as great an extent as possible (i.e. the smaller quantity of the two orders) before any other order received subsequently is processed. To the extent that it cannot be executed it will remain posted as a limit order in the DODAQ order book until it expires through age, cancellation or otherwise.

Your order ranks behind all valid limits past or future which offer a more attractive price. It ranks ahead of all valid orders past or future which offer a less attractive price. It ranks behind all valid orders at the same price, received by DODAQ before it, and ahead of all valid orders at the same price received by DODAQ after it.

       9.3.    Order removal

You have the right at any time to remove an unexecuted element of any open order You placed. Upon receipt DODAQ must respond by removing your order such that it will not match with any subsequently received order.

You understand and accept that where another user has entered an opposing and matchable order instruction, which arrived at DODAQ before your request for removal, then the match will occur, and to the extent that the match occurred your order will have matched and will not be capable of removal, although any remaining open element of the order will be removed.

You understand that in circumstances outlined in the online help system accessed from http://www.DODAQ.com/leam/index your orders may be automatically deactivated but will remain on your Orders page. In the unusual case where DODAQ removes your orders from the order board it accepts an obligation to notify You by email.

       9.4.    Dealing Advice and Invoice

DODAQ will acknowledge executed orders and parts thereof to You via email shortly after each execution occurs.

The completion of a trade through deal executions for either part of or a whole order, will result in DODAQ sending You via email a settled invoice in respect of the complete amounts traded as a result of the original order. DODAQ acts as counterparty to each trade and therefore upon execution of a trade will issue a self billing invoice to the selling client and a sales invoice to the buying client.

       9.5.    Clearing & Settlement

You authorise DODAQ to accept your order as an instruction to settle immediately in the event that your order executes, whether in whole or in part. DODAQ accepts full responsibility for the ability of executed orders to settle. It stands as guarantor behind any purchase that the seller is able to deliver the diamond and its certificate to the purchaser. It stands as guarantor behind any sale that the purchaser is able to pay currency to the seller for the consideration of the sale.

Settlement of a DODAQ transaction happens instantaneously at the point of trade. The buyer receives the diamond and the seller is credited with money net of expenses. Similarly the buyer is debited with cash net of expenses and the seller makes delivery of the diamond.

The delivery of the diamond in settlement is effected by book entry within the DODAQ system. Your resulting diamond balance represents outright ownership of the diamonds held.

DODAQ shall undertake to instruct its Provider of Logistic Services/Storage Facility of your custody requirement. The inward transfer of a diamond for a buying customer is always matched exactly with a simultaneous but opposite outward transfer of the same diamond for the selling customer, which are contained in sealed tamper proof plastic holders.

The payment of money is effected by book entry within the DODAQ system. Your resulting DODAQ account balance represents your currency assets of segregated Client Accounts held at ABN bank.

DODAQ instructs the bank in its capacity as a managing agent for your segregated funds. The receipt of proceeds (net of expenses) for a selling Customer opposes a simultaneous payment of consideration (net of expenses) for a buying Customer. No material changes arise at the bank as a result of instantaneous settlement of your diamonds trade.

DODAQ guarantees that the settlement of funds occurs simultaneously with the transfer of ownership of diamonds.
You can immediately see your new diamonds and account balance on the DODAQ system.
Each business day DODAQ undertakes a full customer by customer reconciliation of diamonds and funds to the statements from the bank, and diamonds lists from the vault, in both cases as at the close of business on the previous business day.

10.    Risk warnings

The following lists indicate such risks as DODAQ considers material. It does not constitute a statement of all possible risks.

       10.1.    Risks which are not a DODAQ responsibility

Diamond price movements - You are exposed to the risk of potential loss arising from a falling diamond price during the time in which You own diamonds. This risk is not a DODAQ responsibility.

Money politics - Governments and other agencies seeking currency stability, or for other reasons, might seek to constrain or tax the ownership of diamonds to the disadvantage of its owners.

Bank insolvency - Your cash balances at DODAQ are deposited in segregated accounts at a highly rated bank, but your money's safety is dependent on bank integrity. All banks are subject to possible failure. Depending on a number of factors in the event of bank failure You might be entitled to receive compensation from appropriate authorities, but the terms of such compensation are complex and the timescale for receiving compensation might be long. This risk is not a DODAQ responsibility. Note that when your money is used to buy diamonds your exposure to bank insolvency ceases.

Identity theft - If your DODAQ account number and password are compromised You are at risk of unauthorised access to your account. Any change of your account details would be acknowledged to you. Any withdrawal resulting from use of a compromised password would only be to your linked bank account or - in unusual circumstances - would be in person, in which case it would be validated against your filed identity verification, and subject to indemnity insurance taken out by DODAQ, at the withdrawer's expense, which would compensate You against loss.

As a result the most serious risk arising from the theft of a password are (i) loss of privacy and (ii) the entering of mischief orders on DODAQ - which would execute at market prices and thereby potentially switch You between diamonds and money - or vice versa - at prevailing values but not according to your wishes. An attempt to bleed your account of value in favor of another account would be reversed whenever advised in reasonable time, and would of course lead to detection and prosecution of any criminal activity without gain. In these ways DODAQ seeks to minimise the risks to You associated with identity theft but these are not a DODAQ responsibility unless the breach of security can be shown to have occurred because of DODAQ's error.

Liquidity risk - DODAQ is available only to its users, so your ability to convert your diamonds into money depends on there being another user bidding for that diamond. It is possible that liquidity could dry up having You temporarily unable to realise the apparent value of a diamonds holding within DODAQ. This risk is mitigated by affording to all users a right of delivery. In this way all system users are powerfully motivated to bid for under-priced diamonds in illiquid markets as the transaction has a high probability of being profitable, and this would eliminate by natural market forces any lack of liquidity. Nevertheless the risks associated with a lack of immediate liquidity are not a DODAQ responsibility.

System availability - DODAQ's computerised machinery, which is accessed by You across the internet, might become inaccessible for periods of time. This could prevent You from executing a transaction which You would otherwise have made. This risk is not a DODAQ responsibility.

Conformity –Only the Issuer who introduced the diamonds into the DODAQ system, remains liable for the conformity of the diamonds with the certificate.

Force Majeure

The risks described under Force Majeure are not DODAQ's responsibilities.

       10.2.    Risks which are a DODAQ responsibility

DODAQ accepts it has duties of care with regard to aspects of risk to your property and undertakes to manage risks so as to contain them at minimal levels, consistent with best business practices.

Subject to the provisions for Exclusions and Limits of liability in these Terms and Conditions DODAQ accepts liability for failing in this duty.

Physical diamond theft - Your diamonds could conceivably be stolen from a vault by determined thieves. It is the Vault Operator which accepts a duty to retain sufficient security measures, and to maintain cover against such an eventuality either in terms of its own resources or its insurance policies.

Theft of Customer funds - Funds held in the segregated Client accounts could be illegally transmitted through the banking system by a determined thief, or thieves, operating within DODAQ. At any one time the control on initiating outward transfers of money from the Client account rests with two senior individuals at DODAQ who must both approve payments and be responsible for daily reconciliation.

DODAQ segregation management - A failure by DODAQ's system to prevent a customer from over-purchasing beyond his cash balance, or over-selling beyond his diamonds balance would render a segregated account temporarily incapable of meeting its obligations to other customers. All DODAQ software is designed to eliminate this eventuality. Moreover DODAQ checks its accounts daily for such eventualities. The risk of material loss is extremely small, because any such over-trading would be substantially offset by a surplus in the opposite segregated account.

DODAQ record keeping - A risk in all business record keeping systems is that internal records may show a position which satisfies the organisation’s officers but does not represent the real world, and where the problems only come to light when it is too late. The risk rises with increasing complexity of transactions and the availability of credit, neither of which apply to DODAQ. For all businesses the record keeping risk is statutorily addressed by annual audit.

11.    What of your activity is publicly visible?

In the interest of transparency and good marketplace practice certain information is made freely available to users.

You may post Orders on the DODAQ website and the best prices available combine to define the current trading prices of diamonds on DODAQ. The best prices, and their associated Order sizes are published on the site. In this way your Orders ordinarily become visible to other users of the system, but not in a way which is attributable to you.

A transaction ticker reports on the DODAQ website the prices and sizes of trades which have been executed. In this way your transactions ordinarily become visible to other users of the system, but not in a way which is attributable to you.

DODAQ may report your activity to duly authorised government agencies with a formal right either to monitor diamonds trading activity or investigate activity which arouses suspicion of money laundering.

12.    Fees

The prevailing DODAQ fees are published on the DODAQ website.

Charges are ordinarily settled out of your cash resources on DODAQ. In the event that charges are outstanding because You have neither paid money in, nor raised cash by selling diamonds, DODAQ has the right to sell your holdings to raise money sufficient to pay the charges.

13.    System availability and downtime

The system is scheduled to operate continually each week from 08.00 Central European Time Sunday to 01.00 CET Sunday the following week.

There may also be planned service interruptions at other times where maintenance requires urgent action which cannot wait until a weekend. Such service interruptions will where possible be planned at times of lower public demand for the service. Where service interruption is planned and You have an open order your order will ordinarily survive the service interruption.

When an unscheduled service interruption occurs and You have an open order your order may be removed at the resumption of the service and any un-traded element of the order will be treated as cancelled.

We will endeavour to keep You informed via email when You have open orders during a period of unscheduled service interruption, but the nature of the service interruption may make it impractical for us to do this.

You accept that service interruption is an unavoidable event on networked computers. You accept our terms for handling service interruption vis-a-vis your open orders. You understand that leaving a firm order on the order board can expose You to risks which are increased in the event of a service interruption, and You accept those risks.

14.    External regulation of DODAQ

DODAQ is a Belgian Company regulated under Belgian Law which covers well established Western principles of statutory property rights and statutory company law.

Regulatory responsibility rests on three mutually independent arms of law enforcement: (i) the investigating authority, (ii) the prosecuting authority and (iii) the Criminal Courts.

The investigating authority is independently funded out of civil taxation and its role is to investigate reports of crimes and to produce a report for the prosecuting authority. Theft and fraud fall under its areas of responsibility. The prosecuting authority is the Belgian Prosecution Service. It is independently funded out of civil taxation and its role is to prosecute breaches of statute law.

The Criminal Court system hears the cases of the prosecuting authority, establishes guilt or innocence and empowers judges to punish. It too is independently funded out of civil taxation.

There is no cost to You in reporting a crime and it is the duty of the above authorities to bring before the courts a case against DODAQ or its officers arising from a breach by DODAQ of statute law.

In addition You have recourse to the civil law, which would rule on disputes between You and DODAQ arising when either allege against the other a damaging breach of these stated Terms and Conditions. Bringing and defending a case under civil law would ordinarily incur costs.

You understand and acknowledge that together with the whole of the Antwerp diamonds market, DODAQ's regulatory status is markedly different from the financial services industry. Modern financial services businesses throughout Europe, America and Asia tend to be companies which deal in paper based instruments and these are subject to increasing legal sophistication and regulation.

Because DODAQ offers a credit-free environment, and because it deals in the absolute ownership of physical diamonds, and not paper based contractual rights, it falls outside the defined scope of formal financial services regulation, as does the rest of the physical diamond industry in Antwerp.

The Antwerp diamond market - which is the biggest in the world - is instead regulated by traditional Belgian property law, and not by the CBFA (Belgian Banking and Finance Commission).

We believe this offers a clearer and better enforced regulatory environment. In DODAQ You own diamonds, and not a piece of paper evidencing an entitlement under a trust.

15.    Correction or Errors

       15.1.    Record Keeping Error

In the event of administrative error DODAQ is entitled after the event to make appropriate adjustments to records of your account.

       15.2.    Trading System Error

Neither DODAQ nor You has the right to make profits from trading system failures. The DODAQ system is designed to protect all users from clear trading errors by rejecting orders priced substantially away from the prevailing diamonds prices. This protection depends on receiving currency and diamond market price data from a variety of digital sources. The effectiveness of this protection is to an extent out of DODAQ's reasonable control. In the event of a failure to protect participants in this way both DODAQ and You accept that reasonable adjustments may be made after the event in order to ensure the marketplace operates fairly to all participants.

16.    Exclusions and Limits of Liability

(a)    The following provisions set out the entire financial liability of DODAQ (including any liability for the acts or omissions of its employees, agents and sub-contractors) to You in respect of:
              a.    any breach of these Terms and Conditions; and
              b.    any representation, statement or tenuous act or omission including negligence arising under or in       connection with these Terms and Conditions.

(b)    All warranties, conditions and other terms implied by statute are, to the fullest extent permitted by law, excluded here from.

(c)    Nothing in these Terms and Conditions excludes or limits the liability of DODAQ for any matter which it would be illegal for DODAQ to exclude.

(d)    DODAQ’s total liability in contract, tort (including negligence), misrepresentation or otherwise as described in Section 16 shall be limited to the amount in DODAQ’s professional liability insurance policy;

DODAQ shall not be liable to You for:
      •    Any indirect, exemplary, special or consequential loss or damage;
      •    Economic loss or damage;

Any loss of profit, interest, revenue, reputation, anticipated savings or business or damage to goodwill, even if You are advised in advance of the possibility of any such losses and/or damages.

17.    Applicable law and legal venue

These Terms and conditions are exclusively governed by Belgian law.

Any dispute arising out of these Terms and Conditions shall be exclusively governed by the courts of Antwerp.