Last Updated March 12, 2021
These terms of service govern the NiftyLocker.com service and associated NFT digital and physical objects.
Digital Deeds to Physical Items
The service provides access to digital deeds that are related to physical items. Each NFT is at time of offer is connected to a physical object that is stored in a warehouse. When purchased, you take ownership of the physical item by holding the private key to the NFT on the associated blockchain. You retain ownership of the physical item in perpetuity except as noted in these terms of service. Please read the entire document before purchasing our NFT objects.
Storage of Your Objects
We store the physical items associated with your NFT as a warehouse of our choice. At all times, ownership of the actual item is with the holder of the NFT until time of redemption or forfeiture. Storage is provided on a “best effort” basis. The warehouse features electronic and physical security measures. However, your property in the warehouse is not covered by our liability or contents insurance. You are welcome at any time to insure your property in our warehouse and we will facilitate details being provided to your insurance broker for said insurance. Unless you arrange your own insurance, your items are not covered by anything other than our “best effort” service.
Payment of Storage Fees
Each item comes with a period of prepaid storage. This can range from one to many years and is included in the initial purchase price. There is no refund for early redemption where the item does not stay stored for the duration of the prepaid storage. Each item accumulates storage fees after the prepaid period has ended. Generally these fees are $5 per item per year but are listed on each items information page, smaller items may attract lower fees. Should an item be redeemed while storage fees are owing, all fees must be paid prior to the item leaving storage. The item will be held as collateral until the fees are paid.
Payment of Shipping Fees
Upon redemption of the digital NFT, the physical item can be shipped anywhere in the world. Some items may list that a portion of the shipping fees have been prepaid, the meta data will indicate the amount of prepayment. At time of redemption a current shipping estimate will be prepared. Shipping fees must be paid before the item leaves the warehouse. In the event the prepaid shipping fees exceed the actual shipping cost a credit will be provided. Multiple redemption at the same time may be shipped in one batch to lower shipping fees. Local pickup is also available by arrangement.
Payment of Taxes
Any applicable taxes are due at the time of shipping. Items are shipped from Manitoba Canada. GST/HST/RST may apply within Canada. Generally no tax is charged to international destinations but your own country may charge import or duty fees.
Forfeiture of Physical Item
Your physical item is held so long as storage fees are paid. A period of storage credit is also available. Storage fees continue to accumulate while item is stored. Should the outstanding storage fees accumulate to more than 25% of the initial value of the item we may chose to liquidate your item at auction. Should liquidation occur, the storage fees will be paid from the proceeds of the action. The remaining funds will be held in trust pending redemption of the digital NFT. No interest is paid on the funds even in the event that the service earns interest from the trust funds.
Lost Access to Digital Deed
In the event that you are unable to access your digital deed through the loss of your private key or otherwise, we will not be able to provide redemption of your physical item. This ensures that the actual owner of the digital NFT is the only person able to redeem for the physical item. Limited exceptions may be made ONLY in the case of errors caused by NiftyLocker during initial transfer of the digital NFT to the purchaser.
Period of Redemption Lockout
Some of our NFT items are sold via credit card, paypal or other means. In the case of payment by a revocable payment method the redemption of the physical item will be locked until the appropriate hold period has passed. This may be as long as six months in the case of Paypal.
The digital item is free to be traded and sold during this lockout time but the meta data will clearly indicate payment has not yet cleared and that there is a risk to any buyer.
Payments made on chain or by cash will not be subject to any hold period.
Should a payment be returned, the physical item will be disassociated from the NFT and the metadata will indicate the problem. If the payment issue is not resolved the item may be liquidated to recover the purchase price. Any additional funds earned from liquidation will be the property of the service.
Intention of Service
The service and storage of your items is meant to facilitate the digital collection and trading of real world items. The service is intended to be used for the eventual redemption of your items even if redemption does not occur for several years.
The service is not intended as an investment platform. As the owner of the physical items you are responsible for them and any actions you take regarding selling, trading or gifting.
The service is not intended as a method of money laundering. It is not a a money services business but will take any necessary steps to limit trading that appears to be for illegal purposes.
Updated Terms of Service
From time to time our terms of service will be updated. These updates apply to all items issued by the service. You are welcome to redeem your item at anytime if the terms of service do not meet your needs.
Block Leasing Inc shall determine all disputes in relation to these terms of service. Any ruling by Block Leasing Inc shall be final. Any court action must be held in accordance with the rules of Manitoba’s Queen’s Bench Court and the litigant is responsible for ALL costs associated with litigation – both theirs and the costs of Block Leasing Inc.