Vaulted Watch Policy

Last Updated: 07/12/24


Overview and Purpose


This NFT Policy governs the buying, selling, trading and ownership of Vaulted Watches also known as Watch-backed NFTs™ (WBNs) on Watches.io. Each Vaulted Watch on our platform represents a unique digital asset that is directly tied to a one-of-one physical watch. These watches have been meticulously inspected and securely vaulted at Watches.io headquarters, ensuring that each Vaulted Watch corresponds to a singular watch. Each Vaulted Watch is hosted on the Base network.


Vaulted Watch Listing and Sales

  1. All listing and sales activities for Vaulted Watches are conducted on-chain on the Base network, ensuring transparency and security.
  2. Watches.io utilizes Reservoir as a marketplace aggregator to list all available Vaulted Watches in the marketplace. Reservoir helps provide real-time updates on price changes, new listings, and other relevant information on Vaulted Watches. Reservoir might also provide a detailed history of each Vaulted Watch, including past sales, price changes, and ownership transfers. This transparency helps buyers verify the authenticity and value of the Vaulted Watches.
  3. The presence of a Vaulted Watch on the marketplace does not necessarily indicate its availability for sale. It is a platform for visibility and potential transactions. Owners of Vaulted Watches can receive offers on their unlisted tokens. It is at the discretion of the token owner to approve or decline these offers.
  4. Purchase Options for listed Vaulted Watches: When a Vaulted Watch is listed for sale, a collector has the option to either pay the listed purchase price in the denominated cryptocurrency or make an offer.
    • Immediate Purchase: If the collector chooses to pay the listed price, the transaction occurs instantly. The cryptocurrency is immediately collected, and the Vaulted Watch is transferred to the buyer without delay.
    • Making an Offer: If a collector places an offer on a listed Vaulted Watch, the decision to accept the offer lies solely with the seller. The seller has full discretion to either approve or decline the offer.
  5. Transactions and offers are facilitated through the 'Seaport' smart contract on the Ethereum network.
  6. The 'Seaport' smart contract is designed to provide a secure and efficient means for conducting transactions. It is a decentralized contract that facilitates offers, sales, and transfers of NFTs, including Vaulted Watches, with features that enhance user autonomy and transactional flexibility. The ‘Seaport’ contract is not owned or maintained by Watches.io

Vaulted Watch Metadata

  1. Each Vaulted Watch contains metadata about the specific watch, including inspection images and details.
  2. The metadata for the Vaulted Watch is as follows:
    1. "name"
      • Description: The name of the watch represented by the NFT.
      • Purpose: Identifies the specific model and brand of the watch tied to the NFT.
    2. "description"
      • Description: A brief summary of what the NFT represents.
      • Purpose: Provides an overview of the NFT, its connection to a physical watch, and the redeemability process.
    3. "image"
      • Description: URL to an image of the watch.
      • Purpose: Visual representation of the watch tied to the NFT for verification and appreciation.
    4. "attributes"
      • Description: Detailed characteristics of the watch.
      • Sub-items:
        • "id": Unique identifier for the watch.
        • "watchmaker": The brand of the watch.
        • "model": Specific model of the watch.
        • "reference number": The manufacturer's reference number.
        • "case size": Size of the watch case.
        • "case material": Material used in the watch case.
        • "dial color": Color of the watch's dial.
        • "movement": Type of watch movement.
        • "condition": Condition of the watch (e.g., unworn, used).
        • "box": Indicates if the original box is included.
        • "papers": Indicates if the original papers are included.
      • Purpose: Provides detailed information about the physical characteristics and features of the watch.
    5. "inspectionImages"
      • Description: Array of URLs to images taken during the inspection of the watch.
      • Purpose: Offers visual proof of the watch's condition and authenticity, aiding in verification and buyer confidence.

Ownership and Rights

  1. Buyers are advised to review each Vaulted Watch before purchasing.
  2. Upon acquiring a Vaulted Watch, the holder has complete freedom to transfer, sell, or utilize the token in decentralized finance (DeFi) lending protocols as they see fit.
  3. It is important for holders to understand that the Vaulted Watch serves as the digital receipt for the physical watch. Therefore, losing custody of the Vaulted Watch equates to losing custody of the physical watch. Holders should exercise due caution in managing and transferring their Vaulted Watches to avoid unintended loss of ownership of the associated physical watch.
  4. As the expiration date in September 2025 approaches, Vaulted Watch holders will be prompted to redeem their tokens. This process involves the physical watches being shipped out to the holders, concluding the lifecycle of the Vaulted Watch.
  5. This expiration and redemption process is a critical aspect of maintaining the high standards and integrity of the Vaulted Watch system, ensuring that each token remains a trustworthy digital counterpart to a physical, luxury watch. The integrity of Vaulted Watches is closely tied to the existence of a physical infrastructure. Watches.io maintains a headquarters equipped with a secure vault and staffed with professional watch inspectors. This facility is essential for the storage, inspection, and maintenance of the physical watches corresponding to each Vaulted Watch.
  6. The Vaulted Watch expiration date is set to align with the operational timeline of Watches.io's physical headquarters and its vault. The existence of this facility and its staff is fundamental to the concept of Vaulted Watches, as they guarantee that each digital token is backed by a real, authenticated watch in a secure location.

Embedded Wallets

  1. Watches.io provides embedded wallets to all users on the platform, powered by Privy. These wallets are integrated as a part of the user's account on Watches.io.
  2. Embedded wallets are automatically set up upon the creation of a user's account. No additional steps are required by the user to activate or set up these wallets.
  3. Unlike traditional crypto wallets, when using an embedded wallet on Watches.io, the user will not be prompted to sign for transactions. This means that transactions are executed more seamlessly.
  4. Due to this feature, it is imperative that users are fully aware and cautious about the actions they are taking. Each transaction initiation is considered as an implicit approval from the user for Watches.io to execute the transaction on their behalf.
  5. User Responsibility:
    1. Watches.io is not responsible for any losses that may occur from the use of embedded wallets. The security and safekeeping of the account are the sole responsibilities of the user.
    2. Users are not provided with private keys for embedded wallets. As a result, users are encouraged to utilize a more secure external wallet for storing cryptocurrencies, especially for long-term holdings.
    3. Users are fully responsible for being aware and understanding the nature of their transactions. By initiating a transaction, the user agrees and consents that Watches.io is authorized to make transactions on their behalf through the embedded wallets.
  6. Wallet Funding:
    1. Embedded wallets need to be funded by the user. They should be supplied with enough ETH to cover blockchain transactions and gas fees, as well as the specific cryptocurrency required for intended purchases or offers.
  7. Nature of Embedded Wallets:
    1. Embedded wallets should be considered as 'hot wallets', meaning they are connected to the internet and are less secure compared to 'cold wallets'.
    2. Users are advised to use embedded wallets only for transactions and not for the storage of significant amounts or high-value assets.
    3. Watches.io emphasizes that it is not responsible for any losses. Wallet security and the safeguarding of assets within the embedded wallets are the user's responsibility. Users should only keep assets in these wallets that they are comfortable with the risk of losing.

External Wallets

  1. Users have the option to add external wallets to their Watches.io account. Once added, these wallets can be set as the default wallet for conducting transactions.
  2. Requirements for Transaction Execution:
    1. For transactions to be executed using an external wallet, it requires additional signatures, ensuring enhanced security.
    2. The external wallet must be connected to the Watches.io platform each time a transaction is to be made. This connection is crucial for authorizing and processing transactions.
  3. Users can designate their external wallet as the default transaction wallet. This setting streamlines the transaction process, directing all activities through the chosen external wallet.
  4. The use of external wallets offers an additional layer of security. Users are encouraged to utilize them, especially for high-value transactions or long-term storage of digital assets.
  5. While external wallets provide increased security, users are still responsible for ensuring the safety and security of their wallets. This includes keeping private keys confidential and safeguarding against unauthorized access.

Payment and Fees

  1. Vaulted Watch transactions may incur fees (transaction, processing, platform fees).
  2. All sales are final, except as required by law or specified in the sale terms.

Redeeming Vaulted Watches

  1. Vaulted Watches can be redeemed on Watches.io to receive the physical watch associated with the Vaulted Watch. Upon redemption, the physical watch is shipped to the buyer, and the Vaulted Watch is correspondingly transferred to the redemption pool.
  2. Redemption Process:
    • To redeem a Vaulted Watch, you must provide the following information:
      • Full Name
      • Email
      • Phone Number
      • A copy of an Identification Document
      • Shipping Information
  3. The fee for redemption is $279 USD, subject to change at any time.
  4. Currently, we only support redemption requests within the USA. Users should be aware of this limitation before purchasing the NFT.
  5. Redemption Period:
    • Vaulted Watches are available for redemption until June 2025. Users have a 90-day redemption period from June 2025 to September 2025.
  6. Redemptions will be fulfilled through priority overnight shipping. However, we also allow pickups for redeemed NFTs.

Audit Request

  1. Owners of Vaulted Watches have the option to request an audit of the physical watch tied to their Vaulted Watch.
  2. Audit Request Process:
    • To initiate an audit request, the Vaulted Watch owner must pay an audit request fee in the specified cryptocurrency.
    • Upon receipt of the audit request and fee, Watches.io will conduct a thorough audit of the physical watch associated with the Vaulted Watch.
  3. Audit Report:
    • Following the completion of the audit, Watches.io will provide an audit report or documentation detailing the findings of the watch audit.
    • This report will be sent to the user’s email associated with their account.
  4. Disclaimer and Limitations:
    • Watches.io is not responsible for any damages that may occur to the watch during the audit inspection.
    • The audit report provided by Watches.io does not serve as a legal document. Watches.io is not liable for any findings or the contents of the audit report.
    • The purpose of the audit report is solely to provide the Vaulted Watch owner with detailed information about the current state and condition of the watch.

Risk Acknowledgment

  1. Users acknowledge the inherent risks in Vaulted Watch, blockchain, and cryptocurrency technologies.
  2. Users acknowledge that they are solely responsible for the security of their own wallet and account on Watches.io. This includes maintaining strong passwords, safeguarding access credentials, and implementing any additional security measures they deem necessary.
  3. By using Watches.io and its services, users acknowledge the inherent risks associated with digital asset transactions and wallet security. This includes but is not limited to the risk of hacking, phishing, and other types of unauthorized access.
  4. Users understand and agree that the maintenance and security of their wallet and account are their own responsibility. Watches.io provides tools and services for transactions, but it does not assume responsibility for individual account and wallet security.
  5. Users understand and agree to our liquidation policy when a Vaulted Watch is under loan: the Vaulted Watch may be liquidated if the loan is not refinanced or paid in full by its maturity date, including due to unforeseen circumstances. Watches.io is not responsible or liable for any losses incurred due to Vaulted Watch’s that undergo liquidation.
  6. Users are expected to make informed decisions regarding their wallet and account, understanding the risks involved in digital asset transactions and the importance of maintaining robust security practices.
  7. Watches.io is not liable for financial losses due to market volatility or technological issues.
  8. The value of a Vaulted Watch is subjective. Prices of Vaulted Watch are subject to volatility and fluctuations in the price of cryptocurrency can also materially and adversely affect prices. You acknowledge that you fully understand this subjectivity and volatility and that you may lose money.
  9. You understand that you are responsible for any fees related to use of the Service, including for actions you take on the blockchain, regardless of whether a successful transaction occurs, and that such fees are final and irreversible.
  10. A lack of use or public interest in the creation and development of distributed ecosystems could negatively impact the development of those ecosystems and related applications, and could therefore also negatively impact the potential utility of Vaulted Watches.
  11. The regulatory regime governing blockchain technologies, non-fungible tokens, cryptocurrency, and other crypto-based items is uncertain, and new regulations or policies may materially adversely affect the development of the Service and the utility of NFTs.
  12. We do not have ownership or control of the smart contracts deployed by third parties, and are not responsible and make no guarantees regarding their operation and functionality.
  13. We do not control the public blockchains that you are interacting with and we do not control certain smart contracts and protocols that may be integral to your ability to complete transactions on these public blockchains. Additionally, blockchain transactions are irreversible and Watches.io has no ability to reverse any transactions on the blockchain.
  14. There are risks associated with using Internet and blockchain based products, including, but not limited to, the risk associated with hardware, software, and Internet connections, the risk of malicious software introduction, and the risk that third parties may obtain unauthorized access to your third-party wallet or Account. You accept and acknowledge thatWatches.io will not be responsible for any communication failures, disruptions, errors, distortions or delays you may experience when using the Service or any Blockchain network, however caused.
  15. The Service relies on third-party platforms and/or vendors. If we are unable to maintain a good relationship with such platform providers and/or vendors; if the terms and conditions or pricing of such platform providers and/or vendors change; if we violate or cannot comply with the terms and conditions of such platforms and/or vendors; or if any of such platforms and/or vendors loses market share or falls out of favor or is unavailable for a prolonged period of time, access to and use of the Service will suffer.

Authority to Pause Transactions

  1. Watches.io reserves the right to pause the transaction of an individual Vaulted Watch or all Vaulted Watches at its discretion for any reason.

Disputes and Resolutions

  1. Disputes should be reported to Watches.io for potential resolution.
  2. Watches.io will mediate disputes but does not guarantee resolution in favor of either party.

Amendments to the Policy

  1. Watches.io may update or modify this policy at any time. Users should periodically review changes.

Operating Agreement

The Vaulted Watch Operating Agreement governs the ownership and transactional rights associated with Vaulted Watches. A version of the operating agreement is embedded within the Vaulted Watch’s token metadata in the form of a link at the time of mint. Visit here for the latest version of the Operating Agreement.


Contact Information

For questions regarding this Vaulted Watch Policy, contact us at concierge@watches.io.