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Effective Date: 24 September 2025

Private Exchange Terms

1. Introduction & Incorporation

These Private Exchange Terms ("Private Terms") govern your use of Baltex’s Private Swaps. They incorporate and supplement the Baltex Terms (including Section 3 — AML/KYC, Section 5 — Fees and Penalties, and Section 6 — Limitation of Liability). If there is a conflict, the Baltex Terms prevail.

2. Definitions

  • Private Swap: A non-custodial exchange workflow designed to reduce public linkability between deposit and payout.
  • Single-Use Address: A deposit or payout address generated for one transaction or session.
  • Intermediary Hop: An optional, privacy-enhancing hop through a Layer-1 network between deposit and payout.
  • Anonymity Set: The set of possible sources/recipients that a third party could infer for a given transaction path.

3. Eligibility & Compliance

Private Swaps are subject to Section 2 (Use of Service) and Section 3 (AML/KYC) of the Baltex Terms. Access may be restricted by geography, sanctions, risk level, or legal obligations.

4. How Private Swaps Work (High Level)

  1. You specify input/output assets and a payout wallet.
  2. We generate single-use deposit and payout parameters and display the time window and limits.
  3. After your deposit is confirmed on-chain, the swap is executed and the payout is sent to your designated wallet (subject to compliance checks and network conditions).

5. Privacy-Enhancing Mechanics

  • Address Hygiene: Single-use deposit and payout addresses reduce simple graph re-use.
  • Optional Intermediary Hop: Where enabled, the path may include an additional on-chain hop to increase the anonymity set.
  • Timing Variance: Non-deterministic processing windows may be applied to discourage naïve timestamp correlation.
  • Limitations: Privacy outcomes are not guaranteed; sophisticated analytics, linkage via off-chain data (e.g., exchange records), reused addresses, or deanonymizing behavior can reduce effectiveness.

6. User Choices & Responsibilities

  • Correct Details: Provide the exact asset, network, amount, and payout address (including any required memo/tag).
  • No Reuse: Do not reuse prior deposit or payout addresses for new Private Swaps.
  • Custodial Destinations: If sending to a custodial wallet, ensure you include the required tag/memo. Missing identifiers may lead to loss or fees (see Section 5 of Baltex Terms).
  • Lawful Use Only: Private Swaps must not be used to conceal illicit origin or for any unlawful purpose.

7. Quotes, Limits & Windows

  • Rates: Fixed-rate or floating-rate quotes may be offered as described in the Baltex Terms.
  • Limits: Minimums/maximums may apply and can change dynamically.
  • Funding Window: You must fund within the displayed time. Late, under-funded, or over-funded deposits may be cancelled, repriced, or returned where feasible.

8. Small Deposits & Dust

Very small amounts may be non-processable and non-refundable if they do not cover network and operational costs (see Baltex Terms §4.4 and §5).

9. Errors & Unsupported Assets

Sending unsupported assets, sending on the wrong chain, or omitting a required memo/tag can result in permanent loss. Any attempted recovery (if possible) may incur processing and network fees and is not guaranteed.

10. Holds, Reviews & Cancellations

Transactions can be paused for risk review per Section 3 (AML/KYC). We may request information, cancel a Private Swap, or return funds to the original address if lawful and technically feasible, net of applicable fees.

11. Refunds & Returns

If a Private Swap cannot be completed for operational reasons (other than policy violations), we may return funds to the original address minus network/processing fees. For user-error scenarios, the Fees and Penalties of the Baltex Terms apply.

12. Security & Risks

Blockchain transactions are irreversible. You acknowledge risks including volatility, network congestion, chain reorganizations, wallet compromise, and analytics-based deanonymization. Baltex does not guarantee any particular privacy level or timing.

13. Prohibited Conduct

Prohibited behaviors include: structuring to evade verification, layering designed to obscure illicit proceeds, use of compromised wallets, address spoofing, and any activity violating Section 2 of the Baltex Terms.

14. Changes & Termination

We may modify or discontinue Private Swaps at any time. Continued use after updates constitutes acceptance.