Last Updated: June 18, 2026 • Version 1.0
These Terms of Service (“ToS”) govern the specific services, features, and functionalities provided by Farad Technologies Group, LLC (“FTG Energy,” “Company,” “we,” “us,” or “our”) through the FTG Energy platform (the “Platform”). These ToS supplement and are incorporated into the Terms and Conditions, which you must also accept as a condition of using the Platform.
BY ACCESSING OR USING ANY SERVICES ON THE PLATFORM, YOU AGREE TO BE BOUND BY THESE TERMS OF SERVICE IN ADDITION TO THE TERMS AND CONDITIONS. THESE DOCUMENTS TOGETHER FORM THE COMPLETE AGREEMENT GOVERNING YOUR USE OF THE PLATFORM.
2.1. Service Description. The FTG Energy Platform is a software-as-a-service (“SaaS”) subscription platform that provides registered users with access to the following categories of capabilities: (A) user dashboard and account management tools; (B) digital asset wallet functionality for FTG Tokens; (C) marketplace access for the exchange and transfer of FTG Tokens; (D) analytics, reporting, and informational dashboards; (E) yield calculation and display tools; (F) community features and referral program functionality; (G) administrative tools for account management; and (H) such other features and capabilities as may be added, modified, or removed by FTG Energy from time to time in its sole discretion.
2.2. Service Availability. FTG Energy will use commercially reasonable efforts to maintain Platform availability but does not guarantee uninterrupted access. The Platform may be temporarily unavailable due to scheduled maintenance, unscheduled maintenance, system upgrades, security patches, force majeure events, or circumstances beyond FTG Energy’s reasonable control. FTG Energy shall not be liable for any loss or damage resulting from Platform unavailability.
2.3. Service Modifications. FTG Energy reserves the right to modify, update, enhance, reduce, or discontinue any feature, functionality, or service offered through the Platform at any time, with or without notice, in its sole discretion. You acknowledge that the Platform is a continuously evolving product and that features available today may not be available in the future. No modification of services shall entitle you to a refund or credit unless expressly provided in the Terms and Conditions.
2.4. Third-Party Services. The Platform may integrate with or provide access to third-party services, including but not limited to payment processors, blockchain networks, email services, and analytics providers. FTG Energy is not responsible for the availability, accuracy, or performance of any third-party service. Your use of third-party services is subject to the terms and policies of those third parties.
3.1. Regulatory Basis. The classification of FTG Tokens and the regulatory framework governing the Platform are informed by the joint interpretation issued by the United States Securities and Exchange Commission (“SEC”) and the Commodity Futures Trading Commission (“CFTC”) in Release No. 33-11412, effective March 23, 2026 (the “Joint Interpretation”). The Joint Interpretation establishes a taxonomy for crypto assets and clarifies the application of federal securities laws to certain types of crypto assets and certain transactions involving crypto assets.
3.2. Token Classification. Under the framework established by the Joint Interpretation, FTG Tokens are classified as non-security crypto assets falling within the category of Digital Commodities and/or Digital Tools. This classification is based on the following characteristics of FTG Tokens: (A) FTG Tokens are intrinsically linked to the programmatic operation of a functional crypto system, specifically the patented energy metering and digital unit generation system described in U.S. Patent No. 11,962,710 B2 and U.S. Patent No. 12,647,288 B2; (B) the value of FTG Tokens is derived from supply and demand dynamics and from the functional operation of the underlying system, not from the essential managerial efforts of FTG Energy or any other party; (C) FTG Tokens perform practical functions within the Platform ecosystem, including serving as a medium of exchange, a unit of account for platform services, and a credential for accessing certain platform capabilities; and (D) FTG Energy does not offer FTG Tokens by inducing an investment of money in a common enterprise with representations or promises to undertake essential managerial efforts from which a purchaser would reasonably expect to derive profits.
3.3. Howey Test Analysis. For the avoidance of doubt, FTG Tokens do not satisfy the elements of the test established in SEC v. W.J. Howey Co., 328 U.S. 293 (1946) (“Howey Test”) for the following reasons: (A) while there is an investment of money, there is no common enterprise in which the fortunes of investors are tied to the efforts of a promoter or third party; (B) there is no reasonable expectation of profits derived from the essential managerial efforts of others, as any value appreciation of FTG Tokens results from the autonomous operation of the patented system and market dynamics; and (C) FTG Energy does not make representations or promises that it will undertake essential managerial efforts to generate profits for token holders.
3.4. User Representations Regarding Classification. By using the Platform and/or purchasing FTG Tokens, you represent, warrant, and acknowledge that: (A) you have been informed of and understand the regulatory classification of FTG Tokens as described in this Section; (B) you have had the opportunity to review the Joint Interpretation (SEC/CFTC Release No. 33-11412) and understand its relevance to FTG Tokens; (C) you understand that FTG Tokens are not securities and are not subject to the protections afforded to purchasers of securities; (D) you are not purchasing FTG Tokens as an investment or with an expectation of profit from the managerial efforts of FTG Energy; (E) you understand the functional and technological basis of FTG Tokens as described in the referenced patents; and (F) you have conducted your own independent legal, financial, and technical due diligence regarding FTG Tokens and the Platform.
3.5. Regulatory Compliance. FTG Energy is committed to compliance with all applicable laws and regulations. The Platform is designed and operated in accordance with applicable federal and state laws, including but not limited to consumer protection laws, anti-money laundering regulations, and applicable provisions of the Bank Secrecy Act. FTG Energy cooperates with regulatory authorities and law enforcement agencies as required by law.
4.1. Patent Portfolio. The FTG Energy platform and the FTG Token generation system are protected by the following United States patents: (A) U.S. Patent No. 11,962,710 B2, titled “Systems and Methods for Generating a Digital Medium of Exchange Based on Metered Electrical Energy Output,” issued April 16, 2024; and (B) U.S. Patent No. 12,647,288 B2, titled “Systems and Methods for Generation of Energy-Backed Digital Units Stored in a Decentralized Ledger,” issued June 2, 2026.
4.2. Technology Description. The patented technology encompasses systems and methods for: (A) monitoring and metering electrical energy generation from renewable and non-renewable sources; (B) correlating predetermined increments of generated electrical power to unique digital units; (C) generating digital units (FTG Tokens) based on verified metered energy output; (D) storing digital unit records in a decentralized ledger (blockchain); (E) providing user interfaces for dashboard access, marketplace interaction, and administrative management; and (F) calculating and displaying yield, carbon offset, and energy generation data.
4.3. Functional Basis of Token Value. You acknowledge and understand that FTG Tokens derive their characteristics and functional basis from the operation of the patented system described above. Each FTG Token is generated in connection with verified metered electrical energy generation and is recorded in a decentralized ledger. The token’s existence and attributes are a product of the technological system, not of promotional activity, investment solicitation, or managerial promises by FTG Energy.
4.4. No Patent License. Nothing in these Terms or your use of the Platform grants you any license, right, or interest in or to any patent, patent application, or other intellectual property of FTG Energy, except the limited license to use the Platform as expressly provided in the Terms and Conditions.
5.1. Wallet Functionality. The Platform provides digital wallet functionality for the storage, display, and management of FTG Tokens and USD balance within the Platform ecosystem. The wallet is a software feature of the Platform and is not a bank account, custodial account, or financial account of any kind. FTG Energy is not a bank, money transmitter, or custodian.
5.2. Marketplace. The Platform may provide marketplace functionality enabling users to exchange, transfer, or transact with FTG Tokens within the Platform ecosystem. All marketplace transactions are subject to these Terms and any additional marketplace rules posted on the Platform. FTG Energy does not guarantee the liquidity, availability, or price of FTG Tokens on the marketplace.
5.3. No Custody. While FTG Energy provides wallet display functionality, you acknowledge that: (A) FTG Energy is not a custodian of your assets; (B) the wallet feature is a software interface, not a financial account; (C) FTG Energy does not hold, control, or have fiduciary responsibility over your FTG Tokens beyond providing the software interface; and (D) you are solely responsible for the security of your account credentials and for any transactions conducted through your account.
5.4. Transaction Finality. All transactions conducted through the Platform, including token purchases, transfers, and exchanges, are final and irreversible once confirmed. FTG Energy is not responsible for transactions made in error by you. It is your sole responsibility to verify all transaction details before confirmation.
6.1. Yield Program. The Platform may offer yield or reward programs in connection with FTG Token holdings or platform activity. Any yield or reward is generated by the programmatic operation of the underlying system and is not guaranteed, promised, or assured by FTG Energy. Yield rates, if any, may vary and are subject to change without notice.
6.2. No Guarantee of Returns. FTG ENERGY MAKES NO REPRESENTATION, WARRANTY, OR GUARANTEE REGARDING ANY YIELD, RETURN, REWARD, OR FINANCIAL BENEFIT FROM HOLDING FTG TOKENS OR USING THE PLATFORM. ANY YIELD OR REWARD DISPLAYED ON THE PLATFORM IS INFORMATIONAL ONLY AND DOES NOT CONSTITUTE A PROMISE OR GUARANTEE OF FUTURE PERFORMANCE.
6.3. Tax Responsibility. You are solely responsible for determining and fulfilling any tax obligations arising from your use of the Platform, including but not limited to any taxes on yield, rewards, token appreciation, or transactions. FTG Energy does not provide tax advice and is not responsible for your tax compliance.
7.1. Program Description. The Platform may offer a referral program that rewards users for referring new subscribers. Referral rewards, terms, and conditions are described on the Platform and may be modified or discontinued at any time in FTG Energy’s sole discretion.
7.2. Prohibited Referral Activities. You may not: (A) self-refer or create multiple accounts to earn referral rewards; (B) use spam, unsolicited communications, or deceptive practices to generate referrals; (C) misrepresent the Platform or its services to potential referrals; (D) use paid advertising that implies endorsement by or affiliation with FTG Energy without written permission; or (E) engage in any fraudulent activity in connection with the referral program.
7.3. Reward Forfeiture. FTG Energy reserves the right to forfeit, reverse, or withhold referral rewards if it determines, in its sole discretion, that the referral was obtained through prohibited activities, fraud, or violation of these Terms.
8.1. General Standards. You agree to use the Platform in a manner consistent with all applicable laws, regulations, and these Terms. You shall not use the Platform in any manner that could damage, disable, overburden, or impair the Platform or interfere with any other party’s use of the Platform.
8.2. Compliance with Laws. You are solely responsible for ensuring that your use of the Platform complies with all applicable local, state, national, and international laws and regulations, including but not limited to: (A) securities laws; (B) anti-money laundering laws; (C) sanctions and export control laws; (D) tax laws; (E) consumer protection laws; and (F) data protection and privacy laws.
8.3. Prohibited Conduct. In addition to the prohibited activities described in the Terms and Conditions, you shall not: (A) use the Platform to facilitate money laundering, terrorist financing, or other financial crimes; (B) use the Platform to evade sanctions or export controls; (C) use the Platform to engage in market manipulation or fraudulent trading activity; (D) attempt to exploit any vulnerability in the Platform for personal gain; (E) use the Platform to harass, threaten, or harm other users; (F) post or transmit any content that is defamatory, obscene, or otherwise objectionable; or (G) use the Platform in any manner that could bring FTG Energy into disrepute.
9.1. Right to Suspend. FTG Energy reserves the right to suspend your account immediately and without prior notice if FTG Energy reasonably believes that: (A) your account has been compromised; (B) you are engaging in prohibited activities; (C) you have violated these Terms; (D) your account is being used for fraudulent purposes; (E) continued access poses a risk to the Platform or other users; or (F) suspension is required by law, regulation, or court order.
9.2. Investigation. FTG Energy may investigate any suspected violation of these Terms. During an investigation, FTG Energy may: (A) suspend your account; (B) restrict your access to certain features; (C) freeze any pending transactions; (D) review your account activity and data; and (E) cooperate with law enforcement or regulatory authorities. You agree to cooperate with any investigation and to provide any information reasonably requested by FTG Energy.
9.3. No Liability for Suspension. FTG Energy shall not be liable for any loss, damage, or inconvenience resulting from account suspension or investigation conducted in good faith.
10.1. Electronic Communications. By creating an account, you consent to receive electronic communications from FTG Energy, including but not limited to: (A) account notifications; (B) transaction confirmations; (C) security alerts; (D) service updates; (E) marketing communications (from which you may opt out); (F) billing notifications; and (G) legal notices. You agree that electronic communications satisfy any legal requirement for written communications.
10.2. Communication Preferences. You may manage certain communication preferences through your account settings. However, you may not opt out of receiving transactional, security, or legal communications that are necessary for the operation of your account or required by law.
10.3. Accuracy of Contact Information. You are responsible for maintaining accurate contact information in your account. FTG Energy is not responsible for communications that fail to reach you due to inaccurate or outdated contact information.
11.1. Platform Security. FTG Energy implements commercially reasonable security measures to protect the Platform and user data. However, no system is completely secure, and FTG Energy cannot guarantee absolute security. You acknowledge that you use the Platform at your own risk.
11.2. User Security Responsibilities. You are responsible for: (A) maintaining the confidentiality of your login credentials; (B) using strong, unique passwords; (C) enabling multi-factor authentication when available; (D) keeping your device and software up to date; (E) not sharing your account credentials with any third party; and (F) immediately reporting any suspected unauthorized access to your account.
11.3. Security Incidents. In the event of a security incident affecting your account or personal data, FTG Energy will notify you in accordance with applicable law. FTG Energy’s liability in connection with security incidents is limited as set forth in the Terms and Conditions.
12.1. Activity Monitoring. You acknowledge and consent to FTG Energy monitoring your account activity for compliance, security, fraud prevention, and regulatory purposes. This monitoring includes, without limitation, analysis of transaction patterns, login behavior, IP address geolocation, device fingerprinting, and platform usage patterns.
12.2. Regulatory Reporting. FTG Energy may be required to report certain information to regulatory authorities, law enforcement agencies, or other governmental bodies. You acknowledge and consent to such reporting as required by applicable law. FTG Energy will comply with all valid legal process, including subpoenas, court orders, and regulatory demands for information.
12.3. Know Your Customer (KYC). FTG Energy may require you to provide additional identity verification documentation at any time, including but not limited to government-issued identification, proof of address, and source of funds documentation. Failure to provide requested documentation within a reasonable timeframe may result in account suspension or termination.
13.1. General Risks. The use of the Platform and the acquisition of FTG Tokens involve significant risks. You should carefully consider whether the Platform and FTG Tokens are appropriate for you in light of your financial situation, experience, and risk tolerance.
13.2. Specific Risks. Without limiting the generality of the foregoing, you acknowledge the following risks: (A) Technology Risk: The Platform relies on complex technology that may contain bugs, errors, or vulnerabilities; (B) Regulatory Risk: Laws and regulations governing digital assets are evolving and may change in ways that adversely affect the Platform or FTG Tokens; (C) Market Risk: The value of FTG Tokens may fluctuate significantly and may decrease to zero; (D) Liquidity Risk: There may not be a market for FTG Tokens, and you may not be able to sell or transfer your tokens; (E) Operational Risk: FTG Energy may experience operational failures, security breaches, or other disruptions; (F) Counterparty Risk: Third-party service providers may fail or become unavailable; (G) Legal Risk: Legal proceedings, regulatory actions, or changes in law may adversely affect the Platform or your use thereof; and (H) Loss Risk: You may lose some or all of the value of your FTG Tokens or subscription fees.
13.3. No Advice. FTG Energy does not provide investment, legal, tax, or financial advice. Nothing on the Platform or in these Terms should be construed as such advice. You should consult with qualified professionals before making any decisions regarding digital assets or the Platform.
13.4. Assumption of Risk. BY USING THE PLATFORM AND/OR ACQUIRING FTG TOKENS, YOU EXPRESSLY ACKNOWLEDGE THAT YOU UNDERSTAND AND ACCEPT ALL RISKS DESCRIBED IN THIS SECTION AND ANY OTHER RISKS INHERENT IN THE USE OF DIGITAL ASSET PLATFORMS. YOU ASSUME ALL SUCH RISKS AND AGREE THAT FTG ENERGY SHALL NOT BE LIABLE FOR ANY LOSSES ARISING FROM THESE RISKS.
By using the Platform, you represent and warrant that: (A) you are at least eighteen (18) years of age or the age of legal majority in your jurisdiction; (B) you have the legal capacity and authority to enter into these Terms; (C) all information you provide is truthful, accurate, and complete; (D) you are not located in a jurisdiction where the use of the Platform would violate applicable law; (E) you are not on any government sanctions list or prohibited persons list; (F) your use of the Platform does not violate any law, regulation, or obligation to which you are subject; (G) you are not using the Platform for any illegal purpose; (H) you understand the nature of FTG Tokens as described in these Terms and the Terms and Conditions; (I) you are not purchasing FTG Tokens as an investment or with an expectation of profit from the managerial efforts of FTG Energy; (J) you have conducted your own independent due diligence; and (K) you accept all risks associated with the Platform and FTG Tokens as described herein.
You represent and warrant that you are not: (A) located in, organized under the laws of, or ordinarily resident in any country or territory that is the subject of comprehensive U.S. sanctions (currently Cuba, Iran, North Korea, Syria, and the Crimea, Donetsk, and Luhansk regions of Ukraine); (B) identified on the U.S. Treasury Department’s Specially Designated Nationals and Blocked Persons List, the U.S. Commerce Department’s Denied Persons List or Entity List, or any other applicable restricted party list; or (C) otherwise the target of U.S. sanctions or export control restrictions. You agree not to use the Platform in any manner that would violate applicable sanctions or export control laws.
FTG Energy may update these Terms of Service from time to time. Material changes will be communicated to you via email or through a notice on the Platform. Your continued use of the Platform after the effective date of any update constitutes your acceptance of the updated Terms of Service. If you do not agree to the updated terms, you must discontinue use of the Platform and cancel your subscription.
These Terms of Service are supplemental to and incorporated into the Terms and Conditions. In the event of any conflict between these Terms of Service and the Terms and Conditions, the Terms and Conditions shall control unless these Terms of Service expressly state otherwise with respect to a specific provision. All defined terms used herein and not otherwise defined shall have the meanings ascribed to them in the Terms and Conditions.
For questions regarding these Terms of Service, please contact:
Farad Technologies Group, LLC
State of Florida, United States of America
Email: legal@ftgenergy.com
Support: support@faradconnect.com
By creating an account on the FTG Energy platform, you confirm that you have read these Terms of Service in their entirety, that you understand all provisions contained herein including the regulatory classification of FTG Tokens, the nature of the Platform as a SaaS product, the risk disclosures, and all representations and warranties, and that you voluntarily and knowingly agree to be bound by all terms set forth above. Your electronic acceptance, recorded with your IP address, timestamp, and device information, constitutes your legally binding agreement.