[SERIOUS] I read the Binance Terms of Service, so you guys don't have to. Better be Safe than Sorry!!

Hey everyone, I just went through Binance's terms of service myself, so you guys do not have to. I wanted to make it easier for you all. After reading the terms of service, I found out some important information that you may not have known. I've done all the digging, and I've got some insights to share.

​

• 1 - Not your assets anymore (Dormant Account) :

"Binance can convert the Digital Assets to a different type of Digital Asset (e.g., from BTC to USDT). For the avoidance of doubt, none of the Binance Operators shall be liable for any loss of profit, tax obligations or any other loss, damage or expense incurred by you resulting from such conversion."

​

https://preview.redd.it/vhsz5715blib1.png?1630&format=png&auto=webp&s=29c8ec4c48c82fa1bcd85f571cb306954bdb118f

Binance defines a dormant account as an account that has not been accessed for 12 consecutive months (Not written anywhere in their terms, I found this on google). They reserves the right to close dormant accounts at any time, and will not be liable for any loss or damage incurred by you as a result of the closure of a dormant account unless there was fraud or willful default by Binance. If your account is closed, any assets in the account will be transferred to another Binance Affiliate, any third-party custodian or an isolated wallet where Binance considers it is reasonably necessary to do so.

​

• 2 - The arbitration clause:

"All disputes arising out of or in connection with these Terms, including any question regarding its existence, validity or termination, shall be finally settled by binding arbitration in accordance with the Rules of Arbitration of the International Chamber of Commerce. The arbitration shall be conducted in English."

​

https://preview.redd.it/e1o8ujnlclib1.png?1563&format=png&auto=webp&s=eff5585082f864dd7086ac347df4b7f6710ef124

This means that if you have a dispute with Binance, you cannot sue them in court. You must go through arbitration, which is a private process that is often seen as being less fair to consumers.

​

• 3 - The limitation of liability:

"In no event shall Binance be liable for any special, indirect, incidental, consequential, or punitive damages, including, without limitation, lost profits, lost revenue, lost savings, or any other losses, resulting from (i) your use or inability to use the Services; (ii) any unauthorized access to or alteration of your transmissions or data; (iii) any statements or conduct of any third party on the Services; or (iv) any other matter relating to the Services, even if Binance has been advised of the possibility of such damages. The foregoing limitations of liability shall apply to the fullest extent permitted by law."

https://preview.redd.it/lli7bb23dlib1.png?1533&format=png&auto=webp&s=69266072cde6535e6abbf7076e297e96de09bee3

This means that Binance is not liable for any losses that you may incur, even if those losses are caused by their negligence. This is a very broad limitation of liability, and it could leave you out of pocket if you suffer a loss.

​

Some more pointers from what I reach in their terms and conditions:

​

• The lack of regulation: Binance is not regulated in many jurisdictions, This means that there is no government agency to protect you in the event of fraud or theft.
• The right to suspend or close accounts: Binance reserves the right, in its sole discretion, to suspend or close your account at any time, for any reason, including, without limitation.
• The collection and use of user data. Binance collects and uses a lot of user data, including personal information and trading activity. This data could be used to track your trading activity, target you with advertising, or even be sold to third parties.
• Binance's terms of service do not mention "ownership" or "insurance: It is important to note that Binance does not offer insurance on your cryptocurrency assets. However, CZ announced SAFU fund in case of any hacks but it is not mentioned anywhere in their Terms.

So, basically, you do not own anything on Binance as such, and while it is a good exchange for trading because of liquidity and other such services, using it to store your crypto would be like hitting an axe on your foot.