Sphere refund policy

Sphere
5 min readApr 4, 2023

This article will cover our IDO refund policy. The points covered below are very important . They are a must read for anyone taking part in an IDO on our platform or any project looking to do an IDO on our platform.

This article was updated with a revised refund policy on October 21st 2023.

It is important to understand that any investment you make is one you have to be comfortable with as there is inherent risk. However, all the credible launchpads have refund policies in place for their community and at Sphere, we are no different.

IDO Refund Policy

We have implemented a three level refund policy that is fair for both IDO investors and for the project. We have created this policy taking into account feedback from our community and projects, as well as looking at best practice in the wider space and experiences we have had ourselves.

The details:

Spheres community refund policy is a three level policy. The level selected is decided upon by the project.

Level one — Mandatory

This is a mandatory level that will be in place for all IDOs we do, unless otherwise stated.

This level will be in place for the first day (24 hours) of a project listing their token. If the policy is activated, (please see points below regarding activation), it will allow anyone who has invested in the IDO a 100% refund on all their unclaimed tokens*.

Level two — Extended

This policy that will be in place for any IDOs we do, where the project has confirmed that they are comfortable with this this extended level.

The level two policy will be in place for the first 2days (48 hours) of a project listing their token. If the policy is activated, (please see points below regarding activation), it will allow anyone who has invested in the IDO a 100% refund on all their unclaimed tokens*.

Level three — Advanced

This policy that will be in place for any IDOs we do, where the project has confirmed that they are comfortable with this this advanced level.

The level three policy will be in place for the first 7days (168 hours) of a project listing their token. If the policy is activated, (please see points below regarding activation), it will allow anyone who has invested in the IDO a 100% refund on all their unclaimed tokens*.

* Unclaimed tokens are any and all tokens that have not been claimed at the point of refund activation.

Please note

If an investor claims tokens unlocked at launch, but there are a percentage of tokens locked through vesting, then the investor can not claim a refund on the tokens they claimed during launch, but the vested tokens are unclaimed and can be refunded.

If an investor did not claim tokens at launch and there are a percentage of tokens vested, they can claim a 100% refund, as both their tokens from launch and the vested tokens are unclaimed.

Activation criteria

Please take the time to read this section as the activation criteria is extremely important. Both level one and level two refund policies can only be triggered if one or more of the following points are activated:

  • The market price of the project token falls below the stated launch price** within policy activation window; Considering the market movements, the token market price may dip below the listing price within that period for a period of 30 minutes or less without triggering the Refund Policy.***
  • The project delays their confirmed token listing date by more than 2 weeks; From the date that was originally mentioned during the IDO period. If a listing window is given, then the date will be the end final date within this window from which the 2 week delay is calculated.
  • An initial listing exchange makes an error in listing the Token; For example an exchange lists the project token early or at a price point below agreed listing price and trading happens at that lower price.
  • Release of tokens early; If tokens are released prior to the date and time of the officially stated listing. This includes other IDOs, any public sales and all private rounds.

** If the token IDO price is the same as the token launch price, then the token price must remain a minimum of 15% above the launch price for the duration of the refund period.

*** If the project has launched on multiple exchanges, the price of the token is taken from the exchange with the most volume.

Key points for IDO investors:

The refund will be for unclaimed tokens only and the refund will be claimable via a form that will be shared, should the refund policy be activated. Any tokens claimed during the refund period, can not be refunded, should the refund policy be activated during that period.

The Sphere moderators will let the community know on our official Telegram channel should the refund policy be activated.

If the refund policy is activated, investors will have from the point of activation, (from when moderators brief the community and a refund claim form is shared), to the end of the refund period to put in their claim. Refunds will only be given to those that fill in a claim form during that period.

The Sphere team will then communicate directly with those that have completed the claim form in relation to their refund process.

It is important to remember that for IDOs where a percentage of tokens are vested, due to the claim contract already being live, a refund will only be given at the end of the vesting period.

The refund policy will only become live should one or more of the refund activation points be triggered, these are detailed above.

If the price of the project token goes up by more than 2.5x from the IDO price and holds that price for 1 hour or longer within the stated refund policy activation window, then the refund policy is cancelled at that point. This is regardless of time left within the refund policy activation window, or future price movements.

Once funds have been released to the project, (after the refund activation period), from Sphere, any and all follow up questions relating to the project, token price, project expectations/ delivery, road map etc, will need to be directed to the project from that point on via their official channels.

Sphere is not accountable for any funds invested in an IDO after funds have been released to the project, post the refund policy activation period.

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Sphere

Sphere is a multichain community first IDO platform — empowering launchpad projects to raise liquidity in a fair & decentralized manner.