Terms and Conditions for BasicSwap

Introduction

Welcome to BasicSwap, a fully decentralized messaging network that facilitates the use of atomic swap technology to swap cryptocurrencies without intermediaries.

This document outlines how BasicSwap functions and highlights its exclusively decentralized nature. By accessing or using BasicSwap, you agree to and understand these terms and conditions (T&C).

Nature of the Platform

Decentralized Operations

1. Peer-to-Peer Transactions: Swaps between users on BasicSwap are entirely decentralized, involving no third parties or central points of failure. Transactions are executed via atomic swap technology, which allows users to exchange cryptocurrencies directly without intermediaries. This ensures a higher level of security and privacy.

2. Atomic Swap Protocols: BasicSwap employs two distinct types of atomic swap protocols: HTLC ('Secret Hash') and PTLC ('Adaptor Signature'). These on-chain protocols facilitate the exchange of cryptocurrencies without the need for a trusted third party. HTLC uses hashed time-locked addresses, while PTLC utilizes adaptor signatures to execute swaps. Both protocols are open-source and have been developed by the broader cryptocurrency community, not BasicSwap contributors directly, ensuring their reliability and security. As such, BasicSwap does not process, execute, or initiate swaps on users’ behalf, these actions being assumed exclusively by the respective blockchains of the coins being swapped.

3. Decentralized Messaging Network: BasicSwap uses the open-source SecureMessaging Network (SMSG), a decentralized and open-source data and messaging network (‘mixnet’) similar to BitMessage, to automate and simplify the process of exchanging swap data required for atomic swaps between two peers. This network allows users to connect directly and share the necessary information securely, efficiently, and without intermediaries.

4. Broadcasting Swap Offers: BasicSwap also enables users to broadcast swap offers through the SMSG network for others to see. This decentralized network helps users find and connect with peers interested in swapping cryptocurrencies, facilitating the discovery of suitable swap partners without the need for centralized intermediaries. All data and information related to swap offers are end-to-end encrypted before being propagated by the user’s node on the decentralized SMSG network.

5. SMSG Mixnet: All BasicSwap users automatically operate as nodes within the SMSG messaging network, making it entirely decentralized and autonomous. Messages, including swap data and network offers, are first end-to-end encrypted on the user’s local device, then broadcast through the network, and finally relayed and validated by all nodes to verify their authenticity against the network consensus and protect users' financial information against unauthorized access. No single BasicSwap open-source contributor or organization holds any control or oversight over the SMSG network. It is not possible to use BasicSwap without being an SMSG node.

6. Decentralized SWIFT Equivalent: As such, BasicSwap functions similarly to a decentralized version of SWIFT, providing a messaging protocol that allows for peers to connect directly with each other with the purpose of executing atomic swaps without central points of failure using official coin cores (Bitcoin Core, Litecoin Core). BasicSwap does not process, initiate, or execute swaps; it merely enables peers to communicate with each other and exchange the required information to simplify the process of using atomic swaps on the respective blockchains of the coins being swapped. In essence, BasicSwap operates merely as a decentralized messaging protocol.

7. No Centralized Services: BasicSwap does not create wallets, addresses, or execute swaps on behalf of users. It does not store data on servers or centralized architecture. All processes are decentralized, leveraging established and open-source protocols and blockchain technology without third-party services being provided. BasicSwap is entirely non-custodial as users retain full control over their funds and transactions, without reliance on any central authority or data collection.

8. Coin Cores: BasicSwap requires to be manually compiled by the user using the source code. Once that is done, it must be installed on a local device such as a computer. During this process, users can download and install the core wallets of the cryptocurrencies they enable. BasicSwap uses the native cores (e.g., Bitcoin Core, Litecoin Core) and does not provide custom wallet or core code. This ensures that all wallet functionalities are based on the official and publicly available coin cores, as provided by their respective teams. It is also possible to connect to a pre-existing node that is either already installed on the local device (e.g., Bitcoin Core in a custom folder destination) or available via remote connection (on another device).

9. Core Updates: Since BasicSwap does not provide and maintain custom wallets on behalf of the user, updating the core wallets of enabled coins is the user’s responsibility. It is recommended to keep core wallets up-to-date with the latest versions, especially for compatibility with hard forks or major updates. BasicSwap does not notify users of updates; users should track individual core updates by following the projects of the coins they enable.

10. Free and Open Source: BasicSwap is entirely free to use and open-source. It does not charge fees, commissions, or engage in any form of commercial activity. This open-source nature allows anyone to inspect, contribute to, or fork the code, fostering a transparent and collaborative environment free of central control by a single entity.

11. No Central Control: BasicSwap operates without a company, central team, or organization exerting control over the underlying network. The decentralized structure ensures that no single entity can influence, manipulate, or tamper with messages exchanged between peers.

12. Informational Website: BasicSwapDEX.com serves purely as an informational and educational resource, providing no other service whatsoever. It is not required to run BasicSwap and has no connection to any of the involved protocols. Unlike most DEX platforms, there is no “web GUI” available on BasicSwapDEX.com as users are required to build the platform themselves and run an SMSG node to interact with the rest of the network.

13. Particl Node Requirement: A Particl node is necessary to run BasicSwap, as the SMSG network operates via Particl Core. The usage of the PART coin is not required, and there is no monetization layer included in BasicSwap in PART or any other form of cryptocurrency, token, or revenue. This ensures that users can participate, with minimal friction, without incurring additional costs and that no single party financially benefits from its usage.

Governance and Development

1. Code Governance: All operations on BasicSwap are governed by code and the community. There is no central authority or approval process required for contributing, modifying, forking, or using BasicSwap’s code, technology, or its network. This open governance model encourages innovation and collaboration.

2. Immutability: Once deployed, swaps on BasicSwap are immutable and subject to the consensus protocol in use on the relevant blockchains, meaning they cannot be altered. This ensures the integrity and reliability of swaps as all actions are recorded on the relevant blockchain and cannot be modified after execution.

User Responsibilities

Self-Custody and Security

1. Non-Custodial: BasicSwap connects to official and publicly available core wallets (e.g., Bitcoin-qt), making users solely responsible for managing their private keys. Losing access to private keys results in the loss of access to funds. BasicSwap open-source contributors do not have access to user wallets, keys, seeds, or any information relating to them, and cannot assist in case of lost access. Wallets are generated automatically by downloading the official coin core wallets of the cryptocurrencies the user manually activates.

2. Seed phrase: When first installing BasicSwap, users can either create a new Particl Core wallet or link to an existing one to connect to the SMSG network. It is crucial for users to write down the provided seed phrase, as this will be needed to restore the wallet later or on a different device. All subsequently activated coins on BasicSwap reuse the same seed.

3. Security Measures: Users must take all necessary precautions to secure their private keys and wallets. The community cannot recover lost keys or funds, emphasizing the importance of personal responsibility and security practices.

4. Resiliency: As BasicSwap relies on no central party to provide services or key infrastructure, it is exceptionally resilient and will continue to operate even if all development efforts from contributors cease. The decentralized architecture ensures uninterrupted functionality.

Informed Participation

1. Due Diligence: Users should conduct their own research and due diligence before engaging in swaps. Understanding the risks involved in using cryptocurrencies and the relevant blockchains is crucial to making informed decisions.

2. Regulatory Compliance: Users are responsible for ensuring that their use of BasicSwap complies with local laws and regulations. BasicSwap is code, and its open-source contributors are not responsible for its usage. Users should consult legal experts for any questions or concerns about regulatory compliance in their jurisdiction or usage of the platform itself.

Risks and Disclaimers

Financial Risks

1. Market Volatility: Cryptocurrency markets are highly volatile. Users should be aware of the risks of price fluctuations and the potential for significant financial losses.

2. Loss of Funds: There is a risk of losing funds due to vulnerabilities, user errors, bugs, or market conditions. BasicSwap open-source contributors are not liable for any loss of funds resulting from the use of the platform. Users must acknowledge these risks and accept full responsibility for their actions.

No Guarantees

1. No Warranties: BasicSwap is provided "as is" without any warranties. The community does not guarantee the platform's performance, accuracy, or reliability. Users must understand that the platform is a collaborative effort and may have limitations or issues.

2. No Liability: The BasicSwap community and its contributors are not liable for any losses or damages arising from the use of BasicSwap. Users agree to use the platform at their own risk and to hold the community harmless from any claims or damages.

Transparency and Open Source

1. Open Source Code: BasicSwap's code is open source and available for anyone to review. This ensures transparency and allows for community contributions, fostering an environment of trust and collaboration.

2. Collaborative Development: Users are encouraged to participate in the development and improvement of BasicSwap. The open-source nature of the platform allows for continuous innovation and improvements through community efforts without relying on the participation of a specific organization or group of individuals.

Conclusion

By accessing and using BasicSwap, you acknowledge that you understand and accept these terms and conditions.