Terms of Service

Eligibility

You must be at least 18 years of age (or the legal age of majority in your jurisdiction). You represent and warrant that you are not located in, a resident of, or a national of any jurisdiction subject to comprehensive U.S. sanctions (including, without limitation, North Korea, Iran, Syria, Cuba, or any other comprehensively sanctioned country as updated by OFAC from time to time). You further represent that you are not using any wallet address associated with a person or entity on the OFAC SDN List or other applicable sanctions lists.

We perform reasonable risk-based screening, including wallet-address checks (for example against sanctions lists or via a third-party screening provider) before on-chain prize distribution, and may use IP and similar signals as supplemental indicators. We reserve the right to block access, void entries, or withhold prizes if we reasonably suspect a violation.

Prize Distribution

Prizes are distributed automatically via smart contract based solely on verifiable skill-based outcomes.

Prize pool on the bracket is calculated at the full entry per seat. Any coupon amount is covered by the organizer; winners still compete for the full pool.

Free or fully discounted entries use a 0-amount on-chain transfer to treasury (Base gas only) so each join is provably unique.

Tax Obligations and Verification Threshold

Winners are solely responsible for all taxes, duties, and reporting obligations arising from any prize received, valued at its fair market value in USD at the time of receipt. Chompix LLC does not provide tax advice.

We apply a unified practical threshold of $2,000 cumulative winnings per wallet per calendar year for both U.S. and international winners. For in-app tracking, USDC on Base is treated as one U.S. dollar per 1 USDC; other tokens may be handled manually until fair market value is recorded.

• Below $2,000 cumulative in a calendar year: Prizes are paid out automatically via the smart contract with no additional verification required (subject only to basic sanctions screening and IP checks).
• $2,000 or more cumulative in a calendar year: A light claim step may be required in the Base mini app before the full prize is released. Tax forms (such as W-9 or W-8BEN) may be collected through a designated third-party provider (for example TaxBandits). Chompix does not store Social Security numbers or full tax credentials on its own servers; sensitive tax data is handled by the provider under their terms. During this step, we may request:
  • For users appearing to be U.S. persons: a completed Form W-9 for accurate IRS reporting (Form 1099-MISC).
  • For users appearing to be non-U.S. persons (international winners): a completed Form W-8BEN (or equivalent) to determine the applicable U.S. withholding tax rate under any applicable income tax treaty.

If the required documentation is not provided:

• U.S. winners: We may apply backup withholding or take other steps where legally required and consistent with our procedures.
• International winners: U.S. federal withholding (including the default 30% rate or a reduced treaty rate when valid documentation is provided) may apply as required by law and our procedures.

Additional Notes for International Winners

Prizes paid to non-U.S. residents may constitute U.S.-source income subject to 30% withholding tax unless reduced by an applicable tax treaty via a valid W-8BEN. By using the $2,000 threshold, we are adopting a practical, user-friendly compliance approach. You may need to file a U.S. tax return (e.g., Form 1040-NR) to claim any refund or treaty benefits. You remain fully responsible for taxes in your home country.

General Disclaimers

This is a skill-based contest, not gambling. We implement reasonable risk-based compliance measures (sanctions screening, geo signals, and tax documentation for larger prizes) but cannot guarantee perfect detection due to the pseudonymous and decentralized nature of blockchain technology. Participation is at your own risk. You must comply with all laws applicable in your jurisdiction. Tax rules are complex and subject to change — consult your own qualified tax advisor. We reserve the right to modify these rules or block users as necessary to comply with applicable law.