# BP Program FAQ ### Frequently Asked Questions: Staking, Benefits & Equity Exchange *Last Updated: March 2026* {% hint style="info" %} These FAQs are intended to help you understand the Backpack Participant (BP) Program. They summarise the key provisions of the [BP Program Terms and Conditions](https://support.backpack.exchange/legal/general-legal/user-agreement) (the "Terms") in plain language. They are not a substitute for reading the full Terms, and nothing herein constitutes legal, tax, or investment advice. Please consult your own advisers before making any decisions. In the event of any conflict between these FAQs and the Terms, the Terms shall control. {% endhint %} *** ### 1. How the Backpack Participant Program Works **Q: What is the Backpack Participant (BP) Program?** The BP Program is a utility-centric loyalty and rewards program offered by Backpack Exchange to users of its platform. By staking your $BP tokens on the Platform, you earn **Backpack Participant (BP) status**, which unlocks a range of benefits — from trading fee discounts and withdrawal fee reductions to priority access to token launches, as well as an option to exchange your tokens for equity in Backpack's corporate entities if and when a qualifying exit event occurs. *** **Q: How do I qualify for the program?** To access BP Services you must actively stake your $BP tokens on the Platform. There are multiple tiers, with higher tiers requiring larger staked amounts, longer staking durations, and/or other criteria. Your tier is updated automatically, so as your $BP stake reaches a higher tier, you'll be upgraded, and similarly, if your staked balance falls below the threshold for your current tier, you'll be downgraded. You should regularly check the Platform for the current tier thresholds and requirements. You must also be a Monthly Active User, which means taking any action on the Platform including buying, selling, lending (including auto-lend), borrowing, or any other actions. *** **Q: What benefits do I get as a Backpack Participant?** Benefits include: * **Trading Discounts.** Reduced maker and taker trading fees on spot and perpetual futures. * **Withdrawal Fee Discounts.** Reduced or waived withdrawal fees for certain assets. * **Platform Launches.** Priority or enhanced allocation rights in IPOs, token launches, and similar primary distributions. * **Priority Access.** Earlier participation windows, higher allocation caps, or invitations to restricted opportunities. * **New Products.** Beta testing opportunities, early rollout invitations, and exclusive access. * **Equity Purchase Election.** In plain English – you can sell your BP to purchase equity in Backpack before an IPO or other Backpack Exit Event. {% hint style="info" %} $BP is the ***only*** token that offers users the opportunity to purchase equity in a regulated exchange. No other token offers this. {% endhint %} *** **Q: What is the Equity Purchase Election and when can I use it?** The **Equity Purchase Election** is the right to exchange your qualifying staked $BP tokens for equity interests in Backpack's special purpose vehicles (SPVs) (see Section 2 below for more information) upon a **Backpack Exit Event**. A Backpack Exit Event means an IPO on a U.S. national securities exchange, a merger, acquisition, or any other transaction deemed to be a major equity liquidity event. *** **Q: What are "Qualifying Staked Tokens" and "Pending Tokens"?** **Qualifying Staked Tokens** are $BP tokens that have been staked continuously for at least one year prior to the public announcement of the Backpack Exit Event (the **Exit Announcement**), and that remain staked through the consummation of your election. These are the tokens eligible for the equity election at the time of the exit event. **Pending Tokens** are tokens you had staked at the time of the Exit Announcement but which had not yet completed the one-year continuous staking requirement. As long as they are staked at the time of the Exit Announcement, then you can continue staking them through the one-year mark. Once they cross the one-year mark, they become Qualifying Staked Tokens and you can make an Equity Purchase Election. {% hint style="info" %} If you unstake any token at any time before making your election — even a token that was on its way to becoming a Qualifying Staked Token — you will lose your rights. You may restake to become pending once again prior to the Exit Announcement. {% endhint %} *** **Q: What are the Backpack Companies?** Users can make the Equity Purchase Election for both Backpack Wallet (operated by Blue Coral Inc.) and Backpack Exchange (operated by Trek Labs Ltd.). While we make no guarantees of any Backpack Exit Event, if one of the Backpack Companies has an IPO in one year and another Backpack Company is acquired in a subsequent year, users can make the Equity Purchase Election during the IPO and still retain the right to make another Equity Purchase Election for the other Backpack Company in a subsequent acquisition. *** **Q: How much equity can I exchange my BP for?** The amount of equity that you can exchange your BP for is the sum of two components: * **Base Activation Amount.** Calculated by multiplying the number of your Qualifying Staked Tokens by 12.5% of the underlying Backpack Company's equity divided by 625 million tokens. This component is available as soon as you have staked for one year. * **Bonus Phase Amount.** For each additional day you remain staked beyond the initial one-year period, up to a maximum of three years, each Qualifying Staked Token accrues additional equity rights. The daily rate is 7.5% of the equity of the Backpack Companies divided by the product of 625 million tokens and 1,095 days, i.e. a pro rata daily accrual of the remaining 7.5% equity over a three-year period. These bonus rights stop accruing at the moment of the Backpack Exit Event. {% hint style="info" %} **Example:** If you hold 5 million Qualifying Staked Tokens that have been continuously staked for 3 years when the Backpack Exit Event occurs, your Base Activation Amount would equal 0.10% and your Bonus Phase Amount would equal 0.04% of the Backpack Companies' equity, for a total of **0.14%**. The equity you receive will be held through the applicable SPV, as described below. {% endhint %} All equity percentages are calculated using the capitalisation of Trek Labs Ltd. and Blue Coral, Inc. as of 23 February 2026 (which is the same as on the date of TGE, March 23, 2026), including issued but unexercised options but excluding reserved and unissued option pools, which is 12,853,914 ordinary shares and 9,491,900 shares of common stock, respectively. *** **Q: What happens if the price of my tokens falls after I start staking?** The Equity Purchase Election is based on number of tokens, so any price variance does not affect the amount of equity you may qualify to purchase. Of course, if you prefer to sell your tokens before a Backpack Exit Event, you can unstake your tokens and sell them. Importantly, the Equity Purchase Election is merely an optional benefit, you are not required to hold or stake your tokens if you don't want to participate in the BP Program. *** **Q: What happens to my tokens once I make an Equity Purchase Election?** You will need to complete an Equity Purchase Election, which will be made available to you at the time of a Backpack Exit Event, and follow the instructions therein to complete the purchase. Upon receipt and completion of all required documentation, you receive equity interests in the applicable SPV. *** **Q: Is there a lock-up period after I receive equity?** Yes. Equity received through the election may be subject to lock-up periods, transfer restrictions, or other holding requirements imposed by the SPVs, the Backpack Companies, underwriters, securities regulators, or applicable law. These lock-ups can extend for months following the exit event, during which you cannot sell, transfer, pledge, or otherwise dispose of the equity. The exact length and terms of any lock-up will depend on the specific exit transaction. Such lock-ups are commonly requested by transaction counterparties such as underwriters to ensure an orderly market and can generally run for several months or longer. *** ### 2. What Does It Mean for My Purchased Equity to Be Held in an SPV? **Q: What are the Backpack SPV Companies?** There are two special purpose vehicles (SPVs): * **Trek ESOP Ltd.** A British Virgin Islands corporation. It holds shares in Trek Labs Ltd., the BVI company operating Backpack Exchange. * **Blue Coral SPV.** A company to be designated by Blue Coral Inc., a Delaware corporation. It holds shares in Blue Coral Inc., the U.S. company operating Backpack Wallet. When you make an Equity Purchase Election, you receive equity interests in these SPVs — not directly in the underlying operating companies. SPVs are the same structure used by AngelList, Carta, etc. to pool investor interests. Think of each SPV as a vehicle that gives you economic exposure to the operating company. *** **Q: Why are SPVs used?** In short – ease of administration, so we can focus on building a company without cap table chaos. SPVs allow Backpack to pool together a large number of individual participants' economic interests and hold them collectively, rather than admitting each participant directly onto the cap table of the operating company. This is commonplace and streamlines deal mechanics. If we are fortunate enough to go public or be in talks of an acquisition, we don't want the deal to be derailed because of a need to collect hundreds or thousands of individual signatures from around the world. By leveraging SPVs, we can keep the focus on value creation. *** **Q: What rights do I actually have as an SPV shareholder?** As an SPV shareholder you **receive**: * Economic exposure to the applicable Backpack Company's equity on an equivalent basis to what you would have received directly. * Non-voting common shares (or such other class of non-voting equity as the SPV designates) in the SPV. You **do not** receive: * Any voting rights over the underlying Backpack operating companies. * Dividends or distributions directly from the underlying Backpack operating companies. * Rights to attend meetings, exercise preemptive rights, or inspect the books of the underlying Backpack operating companies. * Any ability to compel the SPV to wind down, distribute assets, or take any corporate action. Your rights with respect to the SPV are limited to what is set out in the Terms and the SPV's governing documents. *** **Q: Will the SPV distribute the underlying company shares to me?** Like with most SPVs, after a Backpack Exit Event, the SPV aims to distribute underlying company shares or other assets to its equity holders following any lockup periods, and regulatory requirements. Until a distribution occurs, your status remains that of an SPV equity holder, and you will not be able to exit, redeem, or exchange your SPV equity for underlying company shares or other consideration except as specifically outlined in the Terms. This structure is common in venture financings and helps ensure that distributions are managed in accordance with governing documents, deal structure, and applicable regulations. *** **Q: Do I have any shareholder rights before I complete the Equity Purchase Election?** No. Prior to validly completing an Equity Purchase Election, you have no shareholder or equity holder rights in any Backpack Company or any SPV. Your status is that of a potential purchaser only. *** ### 3. How Does the Mandatory Redemption Right Work? **Q: What is mandatory redemption?** There are certain situations in which Backpack may need to redeem your equity purchase rights. For example, existing laws may be revised and regulatory authorities may require redemption in order for Backpack to remain compliant with applicable laws. As another example, during an IPO, underwriters may require a simplified capitalization structure to facilitate the transaction and meet the expectations of potential investors. The mandatory redemption right is designed to allow Backpack to respond efficiently to unforeseen external requirements while protecting your rights. If circumstances arise that lead Backpack to redeem any equity purchase rights you've validly accrued, you will receive fair market value for your rights to the maximum extent permitted under applicable laws. Technically, mandatory redemption is Backpack's right to buy back your Equity Purchase Election rights at any time — even before a Backpack Exit Event occurs. If Backpack exercises this right, you will have the option to either (a) retain your tokens without the accompanying Equity Purchase Rights, or (b) tender your tokens to Backpack in exchange for a cash amount called the **Qualifying Value**. In the case of the latter, your tokens will be transferred to Backpack, and your Equity Purchase Election rights (including all accrued Base Activation Amount and Bonus Phase Amount) will be cancelled. {% hint style="info" %} The primary objective of the mandatory redemption provision is to ensure that, if a redemption occurs, you receive compensation that reflects **the fair market value** of your interests. This mechanism is not intended to arbitrarily strip away your rights or deprive you of the value you've earned. Instead, it is designed to maintain fairness by compensating you appropriately, while also providing Backpack with the necessary flexibility to respond to business or regulatory requirements. {% endhint %} *** **Q: When can Backpack exercise its mandatory redemption right?** Backpack retains the right to exercise mandatory redemption in its discretion. In practice, this is most likely to arise in connection with an exit event — for example, where it is required by an acquirer or underwriter. In any such case, your rights are not cancelled. Rather, the mandatory redemption right is designed such that you will receive the fair market value (as calculated using the Qualifying Value concept described below) of your accrued rights to the maximum extent permitted under applicable laws. The mandatory redemption right is also triggered automatically upon termination of the BP Services for an affected user (see Section 4 below on program amendments and terminations). *** **Q: What is the Qualifying Value and how is it calculated?** The **Qualifying Value** is a cash amount calculated by Backpack using a methodology designed to reflect the **fair market value of your accrued equity purchase rights**. The Terms specify that it may include, without limitation, one or more of the following reference points: * The fair market value of your Qualifying Staked Tokens at the time of redemption (i.e., the market price of your $BP tokens). * The fair market value of the Base Activation Amount and Bonus Phase Amount you would have been entitled to if a Backpack Exit Event had occurred on the date of redemption (i.e., the value of the equity rights you are giving up). * A blended, weighted, or discounted valuation¹ combining any of the above (see description below). * Other means that we deem appropriate. Backpack's determination of the Qualifying Value is generally conclusive and deemed to be final, unless there is manifest error–meaning that if there is a clear error, you will be able to challenge the valuation. In other words, while Backpack has discretion to determine the Qualifying Value, that discretion is constrained by an obligation to arrive at a result that roughly reflects fair market value. The purpose of this framework is not to permit Backpack to pay less than what your rights are worth, in which case you would have the ability to challenge such valuation. But rather, it is to give Backpack, or an independent third-party valuation firm that it is working with, the flexibility to assess the fair market value of private company equity across a range of circumstances. Unlike publicly traded securities, the value of shares in a private company is not determined by a live market price, and arriving at a sensible valuation often requires professional judgment and the application of various financial valuation methodologies. {% hint style="info" %} A "discounted valuation" does not mean Backpack can pay you less than your rights are worth. This is standard practice for how private company equity is valued. It refers to adjustments applied when translating a future or illiquid value into a present-day equivalent — for example, equity in a private company that cannot yet be sold is worth less today than the same equity would be worth after a public listing, because you cannot realise that value immediately. Any such adjustment is part of calculating what your rights are actually worth right now, not a mechanism for underpaying you. {% endhint %} *** **Q: In what form will the Qualifying Value be paid?** Payment may be made in U.S. dollar-denominated stablecoins or such other form as Backpack determines, delivered to your Platform account or another designated address. *** **Q: What happens to my token rights after mandatory redemption?** Once the Qualifying Value is paid, you have no further rights with respect to the exchanged tokens, including any Base Activation Amount or Bonus Phase Amount that had accrued. *** ### 4. What Protections Do I Have Around Program Changes or Termination? **Q: Can Backpack change the program at any time?** There are certain situations in which Backpack may need to change the BP Program. Similar to the mandatory redemption scenarios described above, existing laws may be revised and regulatory authorities may require termination of the BP Program in order for Backpack to remain compliant with applicable laws. Or, underwriters in an IPO may require the program to be terminated to facilitate the transaction. Even if Backpack changes or terminates the BP Program, any equity purchase rights you've validly accrued are protected: if Backpack terminates your right to purchase equity without cause or reasons other than your violation of the Terms, fraud or applicable sanctions, Backpack must pay you the Qualifying Value for your accrued but unexercised rights. This is designed to compensate you for the fair market value of your accrued rights. Similar to the discussion in the mandatory redemption above, the purpose of this flexibility is to allow Backpack to respond appropriately if, for example, an acquirer, underwriter, or regulator requires us to end or change the program, while protecting your rights. *** **Q: Will I know if Backpack terminates the BP Services?** In the event of a termination or wind-down of the BP Services prior to a Backpack Exit Event, Backpack will endeavor to provide at least **30 days' advance notice** to affected users via the Platform or by email. This gives you time to understand what is happening and prepare by, for instance, unstaking and selling your tokens instead of undergoing the Equity Purchase Election. However, no advance notice is required where termination is necessary to comply with applicable law, regulatory requirements, or a court order, or where continued operation would create legal, regulatory, or operational risk for the Backpack Companies or SPV Companies. In those cases, termination may be immediate, but subject to any regulatory requirements, the Qualifying Value payment obligation still applies. *** **Q: What if it's not possible to issue me equity?** Even in scenarios where you have made a valid Equity Purchase Election but Backpack determines that issuing equity to you is not legally permissible or feasible, Backpack will pay you the Qualifying Value in cash instead to the maximum extent permitted under applicable laws. You do not simply lose your accrued economic rights — they are converted into a cash payment where legally permitted. Also, note that if one Backpack Company undergoes a Backpack Exit Event but not the other, you can make an Equity Purchase Election for the exiting company. Your account retains the right to make an election with respect to the other company when its own exit event occurs. *** ### 5. Will I Be Diluted? **Q: Will my equity stake be diluted in the future?** Yes, and this is a completely normal and expected part of equity ownership that applies equally to every shareholder of a company — including Backpack's own founders, employees, and investors. Here is how it works: **Your equity percentage is benchmarked against a fixed snapshot.** All Base Activation Amount and Bonus Phase Amount calculations are expressed as a percentage of the capitalisation of Trek Labs Ltd. and Blue Coral, Inc. as of **February 23, 2026** (which is the same as on the date of TGE, March 23, 2026). On that date, Trek Labs had 12,853,914 ordinary shares outstanding (including issued but unexercised options, excluding reserved but unissued option pools), and Blue Coral had 9,491,900 shares of common stock on the same basis. The number of shares used in the calculation denominator is fixed at those figures, so the number of shares that you can purchase via an Equity Purchase Election is determined and locked relative to that snapshot. **But the total share count will grow over time.** After TGE, Backpack — like every privately held company — will continue to raise capital, issue stock options to employees, grant equity to business partners, and undertake other transactions that increase the total number of shares in existence. Each time new shares are issued, every existing shareholder's percentage ownership of the company decreases proportionally. You own the same number of shares, but those shares represent a smaller fraction of a larger total. **This is how every company in the world works.** Dilution is not unique to Backpack or to the BP Program — it is a fundamental feature of equity ownership in any company, public or private. When a company raises a new round, grants options under a new employee option pool, or issues shares to acquire another business, all existing shareholders are diluted. Apple shareholders were diluted when Apple issued stock options to employees. Early Airbnb investors were diluted through every subsequent funding round. This is the normal and expected lifecycle of equity. {% hint style="info" %} **Dilution does not necessarily mean your investment is worth less.** If new shares are issued in exchange for capital or talent that makes the company more valuable, the "pie" grows even as your slice gets smaller. A 0.1% stake in a company worth $10 billion is worth more than a 0.5% stake in a company worth $1 billion. What matters is both the size of your slice and the size of the pie — and the goal of fundraising is to grow the latter. {% endhint %} We want to be transparent: your BP Program equity rights will be subject to dilution from future fundraising rounds, employee equity grants, and other issuances, just as all other shareholders of the Backpack Companies will be–including founders, employees, investors and advisors. *** ### 6. What Is the Difference Between $BP Tokens and Equity? **Q: Are the tokens and the equity the same thing?** No — they are separate things. **$BP is a digital token with its own independent utility and value.** Equity in the Backpack Companies is a corporate ownership interest, issued through special purpose vehicles, that you may optionally exchange your tokens for if and when a qualifying exit event occurs. The two are distinct assets with different characteristics, different legal natures, and different value drivers. *** **Q: What gives $BP its own independent value?** Your $BP tokens have real, tangible utility and value entirely on their own — regardless of whether you ever make an Equity Purchase Election or whether a Backpack Exit Event ever occurs. The token's independent value comes from: * **Trading fee discounts.** Reduced maker and taker trading fees on spot and perpetual futures markets, which directly reduce your cost of trading on the Platform every day. * **Withdrawal fee discounts.** Reduced or waived withdrawal fees for certain assets and networks, saving you money on every withdrawal. * **Priority access.** Priority and enhanced allocation rights in IPOs, token launches, and other primary distributions on the Platform — giving you an edge in accessing high-demand opportunities before the general public. * **Exclusive access.** Earlier participation windows, higher allocation caps, and invitations to restricted opportunities in special programmes and events. * **New products and features.** Early or priority access to beta products, new features, and services launched by Backpack and its affiliates. * **Market value as a digital asset.** $BP trades on open markets, including on decentralized finance protocols, can be used as collateral for borrowing and lending, and has a market price determined by supply and demand, independent of any equity programme. These benefits do not depend on any exit event happening. For many users, these utility benefits alone are the primary reason to hold and stake $BP. *** **Q: So what role does the equity play?** The Equity Purchase Election is a **purely additive benefit layered on top of the token's existing utility.** Think of it as a utility tied to the Backpack Participant Program that makes your $BP tokens potentially even more useful — but one whose value is entirely in addition to, not instead of, everything the token already gives you. Here is the key distinction: the utility benefits of $BP — fee discounts, priority access, product access — are active right now, every day, as long as you hold and stake. The equity component is a right that may be exercised in the future, if and when a Backpack Exit Event occurs. It is an upside option, not the core value proposition and is in fact, something that could theoretically be applied to every token (or token-related crypto platform) to strengthen their utility and associated benefits as well. As a thought experiment, one can ask themselves the question, would I be happy if any other token added this feature on top of its existing utilities. In our view, the answer is clearly yes. *** **Q: If I make the Equity Purchase Election, do I give up my token benefits?** When you make an Equity Purchase Election, you sell your Qualifying Staked Tokens in exchange for equity in the applicable Backpack SPV. Those specific tokens are transferred to Backpack and you receive equity in return. So yes — the exchanged tokens, and the ongoing utility benefits associated with them, are given up at the point of the exchange. This is because the election is a swap: tokens for equity. It is worth emphasising, however, that the decision whether to make the Equity Purchase Election is entirely yours. You are not required to exchange your tokens. If you prefer to retain your tokens and their utility benefits rather than convert to equity, you are free to do so. The election is an option, not an obligation. *** ### 7. Honest Answers to Hard Questions **Q: The Terms give Backpack a lot of discretion over things like lockups, redemptions, and terminations. How is this fair to users?** We understand why these provisions can look alarming at first glance, and we want to address this head on. The discretion reserved in the Terms is not there to exploit users — it exists because running a regulated business and the uncertainty of the timing and terms of a future exit requires flexibility to respond to circumstances outside our control. Consider a few real examples: if a regulator determines we cannot offer equity to users in a particular jurisdiction, we need to be able to comply. If we pursue an IPO and underwriters require a multi-month lockup as a condition of the listing, we cannot allow a single user who objects to derail the entire offering — and with it, the value that the exit event would deliver to everyone else. If an acquirer requires the program to be wound down as part of closing the transaction, the same logic applies. In each of these cases, our discretion exists to protect the program as a whole, not to harm individual participants. Unlike virtually every other situation where a company exercises discretion over users — we are **required to pay you fair market value** if we ever exercise these rights in a way that terminates your accrued staking rights to the maximum extent permitted by applicable laws. That is not an informal promise. It is a legally binding obligation. *** **Q: How is this different from the rugs and scams that are common in crypto?** The reason why the overwhelming majority of tokens and their associated programs have collapsed and communities are left with nothing is precisely because few–if any–substantive legal rights have ever been provided. Everything is informally promised by project teams, could be changed on a dime and are not legally enforceable. And as we have seen time and time again in this industry, when the development team cashes out, loses interest or walks away, holders have no recourse because there was never any binding commitment in the first place — just smart contract mechanics and social promises. What we are doing is the opposite. The BP Program creates legally enforceable rights for every eligible participant. We cannot simply walk away. We cannot sell our equity business to an acquirer and leave token holders out in the cold. We cannot cash out before our users - our tokenomics ensure that no founder, employee, advisor, or VC investor can exit before our long-term users. The amount of equity reserved for BP Program participants has been determined upfront and we cannot issue an infinite number of new tokens to dilute the program into irrelevance. The alignment between our interests and yours is not a talking point; it is written into the structure of the BP Program itself. To our knowledge, no other crypto project has made commitments of this nature, and we do not make that claim lightly. *** **Q: Is this better or worse than a DAO structure?** Backpack is an operating business–we are not a DAO. And $BP is not a DAO governance token. We want to be clear about that distinction upfront, because it matters for how you should think about your rights as a participant. In a typical DAO, your ability to enforce anything depends on achieving quorum and winning a majority vote. If you are in the minority — even if you are right — you generally have no individual recourse. The majority rules, and there is no legal infrastructure behind the outcome whatsoever. Code and community consensus are not substitutes for enforceable rights. Under the BP Program, any user can seek recourse if we fail to honour our obligations. You do not need to organise a majority, campaign among other token holders, obtain a positive vote, or achieve any voting or quorum threshold. You have an enforceable right that you can exercise independently. That right is backed by established law which means there is a robust legal system and body of precedent behind your claim, not just code and community consensus. And unlike a DAO, what we are offering is real economic value in real operating companies — not protocol voting rights or governance influence. This is an equity interest in the businesses we are building. It is not something that can be voted away, forked out of existence, or abandoned when a development team loses interest. We are bound to it the same way any company is bound to its legal obligations — in writing, under law. *** **Q: Why is arbitration required? Why can't I just go to court in my own country?** Arbitration clauses, exclusive forum provisions, and choice-of-law clauses are entirely standard features of private company equity agreements. They are not unique to Backpack, and they are not designed to disadvantage you. The practical reality is that we have users in dozens of countries. If every dispute could be brought in any court in any jurisdiction, we could face litigation across dozens of legal systems in hundreds of cities worldwide — including jurisdictions with no expertise in the relevant issues and no ability to deliver consistent outcomes. That would ultimately harm all participants, because it would make the programme unmanageable. Arbitration is not a lesser form of justice. It is a private, legally binding dispute resolution process before experienced arbitrators, with full rights to present evidence and argument, and awards that are enforceable in courts globally. It is the mechanism used by sophisticated parties in many high-value commercial agreements for good reason. And in practice, the vast majority of disputes — in any industry, in any walk of life — are resolved through conversation and negotiation, not formal proceedings. That is simply how dispute resolution works, whether you are a startup shareholder or anyone else with a grievance against a large institution. *** **Q: I've been burned by other crypto projects before. Why should this be any different?** We will let you be the judge, but here are the facts. Every major technology platform reserves broad unilateral rights over users and offers nothing in return when those rights are exercised (think of Kanye West being banned by Twitter in 2022 or Fortnite being banned by the App Store in 2020). Most crypto projects offer token holders no legally enforceable rights whatsoever — staking programs and benefits are typically governed entirely by informal mechanics, with no binding commitments from the project team, no recourse if the team disappears or sells the business, and no compensation if the program ends. We have chosen a different path. We are a regulated crypto business, operating under real legal frameworks including some of the most demanding regulatory environments worldwide, and we have created a program that attaches genuine, legally binding rights to our users — rights that any single participant can enforce against us. We are not a DAO where accountability is diffuse and outcomes depend on majority votes. We are a company that is accountable to its users in writing. We are genuinely proud of what we have built here, and we understand that trust has to be earned — especially in an industry where it has been broken so many times. We hope that the substance of what we are offering speaks for itself. *** {% hint style="info" %} *These FAQs are for informational purposes only and do not constitute legal, financial, or tax advice. Backpack Exchange reserves the right to update these FAQs at any time. Please always refer to the most current version of the BP Program Terms and Conditions available at* [*https://support.backpack.exchange/legal/general-legal/user-agreement*](https://support.backpack.exchange/legal/general-legal/user-agreement)*.* {% endhint %} --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. 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