Elacity Exchange — Acceptable Use Policy

Version 1.0  •  Effective Date: 27 May 2026  •  Last Updated: 27 May 2026

Incorporated into the Terms of Service by reference. Applies to every User of the Elacity Exchange.

1. Purpose

This Acceptable Use Policy (“AUP”) sets out the conduct and content rules every User must follow when using the Elacity Exchange. It exists to:

1. Keep the Exchange lawful, safe, and useful for legitimate creators, buyers, and royalty-share holders.
2. Protect victims of harm — children, victims of exploitation, holders of intellectual property, persons whose dignity or privacy has been violated.
3. Protect Elacity LLC and its third-party service providers from being weaponised by bad actors.
4. Make Elacity defensible — so that when a regulator, plaintiff, or court asks “what is your policy on X,” there is a clear, published, enforced answer.

Breach of this AUP is a material breach of the Terms of Service and triggers the consequences set out in §6 below.

2. The categorical prohibitions (zero-tolerance)

2.1 Child Sexual Abuse Material (CSAM)

Any visual depiction or audio recording of a minor (under 18) engaged in sexually explicit conduct, or any material that exploits a minor, is categorically prohibited.

• We use industry-standard hash-matching (PhotoDNA or equivalent) on all content uploaded for encryption through PC2-published creator flows.
• We immediately remove any matched or reported CSAM from the catalog and from our IPFS pinning gateway.
• We report all matched or substantiated CSAM to the National Center for Missing & Exploited Children (NCMEC) in the United States and to equivalent authorities in the User’s jurisdiction (Internet Watch Foundation in the UK, INHOPE network globally).
• We preserve evidence as required by law and cooperate fully with law-enforcement investigations.
• The User account is permanently banned. The User’s wallet address is added to a permanent denylist that prevents future connection to the Exchange.

2.2 Non-consensual intimate imagery / “revenge porn”

Any image, video, or audio of a sexually intimate nature involving an identifiable adult, distributed without that adult’s specific, informed, verifiable consent to the distribution, is categorically prohibited.

• This includes: imagery obtained surreptitiously; imagery shared by a former partner without consent; imagery distributed under coercion, threat, or extortion; deepfakes that depict an identifiable person in intimate or sexual contexts without their consent.
• We remove on substantiated complaint and ban the User permanently.
• We cooperate with law enforcement; in many jurisdictions this is a criminal offence (UK Online Safety Act 2023, US 18 U.S.C. § 2261A and state laws, EU member state laws).

2.3 Terrorism, mass-violence incitement, genocide

Content that:

• (a) directly incites, or provides operational support for, terrorism or mass-violence acts, including weapons-acquisition guides for prohibited weapons;
• (b) glorifies or celebrates designated terrorist organisations (UN Security Council 1267 list; OFAC SDGT list; UK Terrorism Act 2000 designations; EU terrorist list);
• (c) incites, glorifies, or denies genocide;

— is categorically prohibited. Removed on report; reported to relevant authorities.

2.4 Sanctions evasion, money laundering, terrorism financing

Content or transactions that:

• (a) facilitate the laundering of proceeds of crime;
• (b) facilitate the financing of terrorism;
• (c) are designed to evade sanctions imposed by the OFAC, EU, UK, or UN regimes;
• (d) involve a counterparty known to the User to be a Restricted Person under the Terms;

— are categorically prohibited. The Sanctions Screen at wallet connect is the primary mitigation; deliberate circumvention (e.g., through chain-hopping, mixer use after connect, or use of a clean wallet to onboard a sanctioned actor) is a separate violation.

2.5 Trafficking and exploitation

Content that facilitates:

• (a) human trafficking, sexual exploitation, forced labour, or slavery;
• (b) trafficking of persons across borders;
• (c) the procurement or facilitation of sexual services in violation of applicable law;

— is categorically prohibited.

2.6 Illegal arms / controlled substances

Content that facilitates:

• (a) the trafficking of arms (firearms, explosives, military weapons) in violation of applicable law;
• (b) the trafficking of controlled substances (drugs, precursor chemicals) in violation of applicable law;
• (c) the manufacture or distribution of weapons of mass destruction (chemical, biological, radiological, nuclear) in any context;

— is categorically prohibited.

3. Prohibited (with rare and narrowly-construed exception)

The following are prohibited unless the User can demonstrate a clear, lawful, and documented justification (e.g., bona fide journalism, academic research, security research, harm-reduction in a regulated context). Elacity may but is not obliged to permit narrow exceptions on case-by-case review.

3.1 Intellectual property infringement

Content that infringes the copyright, trademark, patent, design right, database right, or moral rights of any third party. The DMCA Procedure sets out the takedown and counter-notice flow. Repeat infringers (3+ substantiated notices in 12 months) are banned.

3.2 Defamation, harassment, threats

Content that:

• (a) is defamatory of an identifiable person under the law of their jurisdiction;
• (b) constitutes targeted harassment of an identifiable person, group, or community;
• (c) makes credible threats of violence, sexual assault, doxxing, or unlawful action against an identifiable person.

3.3 Privacy violation

Content that:

• (a) discloses personal data (home address, phone, financial details, health, biometric data) of an identifiable person without their explicit consent and a lawful basis;
• (b) results from unauthorised access to a third party’s information system (hacked / leaked datasets);
• (c) involves the surveillance or stalking of an identifiable person.

3.4 Fraud and market manipulation

Content or activity that:

• (a) is designed to defraud Users or third parties (Ponzi schemes, pump-and-dumps, fake giveaways, phishing kits);
• (b) artificially manipulates prices, volumes, or rankings on the Exchange (wash trading, sybil attacks, fake review networks);
• (c) misrepresents the rights, performance, or characteristics of an Asset (e.g., listing as “exclusive” content already public; misrepresenting royalty splits; faking provenance).

3.5 Misuse of AI-generated content

Content where AI-generation creates a deceptive or harmful effect, including:

• (a) deepfakes of identifiable people without their consent (especially political figures, vulnerable persons, victims);
• (b) AI-generated content that infringes the IP, voice, likeness, or style of an identifiable person;
• (c) AI-generated content that imitates a brand or person to defraud (impersonation scams).

AI-assisted content where the underlying source material is properly licensed and the result does not deceive or harm is permitted.

3.6 Adult content (18+)

Lawful adult content involving consenting adults, where the User has the right to distribute it, is permitted with restrictions:

• (a) The Operative metadata must include the mature: true flag (or equivalent under our schema). The catalog UI uses this flag to gate display behind a content-warning interstitial.
• (b) The User must comply with applicable adult-content laws in their jurisdiction (record-keeping under 18 U.S.C. § 2257 if any US nexus exists; age-verification under UK Online Safety Act if any UK nexus exists; etc.).
• (c) Strict prohibition on minors, non-consensual content, or anything in §2.

3.7 Hateful conduct

Content that promotes hatred against a person or group on the basis of a protected characteristic (race, ethnicity, religion, sexual orientation, gender identity, disability, etc.) — particularly where it is designed to incite real-world harm — is prohibited. We follow industry-standard hate-speech enforcement standards.

4. Conduct rules (how Users behave)

Beyond content, Users must follow these conduct rules:

4.1 No automated abuse

You will not:

• (a) operate or facilitate any bot, scraper, or automated tool against the Exchange that exceeds rate limits, evades captchas, or otherwise interferes with normal operation;
• (b) sybil-attack the Service (multiple wallets controlled by the same actor for the purpose of evading limits, manipulating prices, or gaming royalty distributions);
• (c) front-run or sandwich other Users’ transactions in a manner that constitutes market manipulation under applicable law;
• (d) use the catalog’s API beyond the published rate limits and use-case rules.

Note: legitimate developer use of public API endpoints, within the documented rate limits and use cases, is welcome.

4.2 No reverse-engineering for harmful purposes

You will not:

• (a) reverse-engineer, decompile, or disassemble the dDRM system or the Secure-Decrypt Enclave gating logic for the purpose of producing unauthorised decryption capabilities;
• (b) circumvent the Sanctions Screen or geo-blocking;
• (c) attempt to extract credentials, keys, or other secrets from any Elacity-operated component.

Exception — security research: Bona-fide security research conducted in good faith, under our coordinated-disclosure policy at security@ela.city, with reasonable measures to avoid harm and with disclosure before publication, is welcome.

4.3 No impersonation

You will not impersonate Elacity, an Elacity employee, another User, a public figure, a brand, or any other person — whether by displayed name, profile, content claims, or otherwise — for any purpose other than satire that would not deceive a reasonable User.

4.4 No unauthorised commercial use of the platform

You will not (without prior written agreement with Elacity):

• (a) operate a competing exchange or marketplace using Elacity’s published catalog data;
• (b) use the brand “Elacity,” “Elacity Exchange,” or related marks in connection with another product;
• (c) charge other Users a fee to access Elacity beyond the protocol fees set in the Smart Contracts.

This is not an “anti-competition” clause — anyone is free to build their own exchange. It is a brand-protection and data-integrity clause.

5. Enforcement

Elacity reserves the right, but does not undertake the obligation, to:

• (a) review and assess any content listed on the Exchange;
• (b) remove any content from the catalog, in whole or in part, with or without prior notice, where Elacity has a good-faith belief that the content violates this AUP;
• (c) ban any User (by adding their wallet address to a denylist) where the User has materially or repeatedly violated this AUP, or violated §2 (Categorical Prohibitions) at any level;
• (d) report violations to law enforcement or other competent authorities;
• (e) preserve evidence relating to violations.

We do not pre-screen all content; we do rely on automated tools (PhotoDNA-equivalent for CSAM; pattern-matching for known infringing material) and on User reports. Inclusion of content in the catalog is not a warranty of compliance with this AUP.

5.1 Removal vs. on-chain reality

Removing content from the catalog, the IPFS pinning gateway, or the user interface does not remove the underlying Operative contract from the blockchain or the encrypted bytes from IPFS nodes outside Elacity’s control. We do what we can; we cannot do what is technically impossible.

For CSAM and other categorical prohibitions, we additionally seek to disable the dDRM decryption gating (which can prevent further consumption of the encrypted content even if the bytes persist). The third-party Secure-Decrypt Enclave operator’s policies determine whether and how this is implemented.

6. Reporting

To report a violation of this AUP:

We commit to acknowledging receipt of an abuse report within 48 hours (excluding weekends and holidays) and acting on substantiated reports promptly. CSAM reports are actioned immediately on a 24/7 basis.

7. Updates to this AUP

We may update this AUP from time to time. Material updates trigger re-consent under the Pop-up Consent Gate. Continued use of the Exchange after publication constitutes acceptance of the updated AUP.

See the changelog for prior versions. Report violations to the addresses in §6.