Mining isn’t just about hardware and computations — it’s also about legal relationships.
Whether you're renting out equipment, placing it in a data center, or pooling resources with partners, it's crucial to formalize agreements properly to avoid disputes and protect yourself from fraud.
Whether you're renting out equipment, placing it in a data center, or pooling resources with partners, it's crucial to formalize agreements properly to avoid disputes and protect yourself from fraud.
Today, we're breaking down the main legal documents every miner should be familiar with:
1. Equipment Lease
This is a classic setup where someone provides ASICs or GPUs for paid use. It's critical to clearly define who is responsible for breakdowns, electricity costs, and what happens if the lessee disappears with your hardware.
⚠️ Never hand over your equipment without a formal acceptance-transfer act.
💡 Key legal documents: equipment lease agreement and acceptance-transfer act.
This is a classic setup where someone provides ASICs or GPUs for paid use. It's critical to clearly define who is responsible for breakdowns, electricity costs, and what happens if the lessee disappears with your hardware.
⚠️ Never hand over your equipment without a formal acceptance-transfer act.
💡 Key legal documents: equipment lease agreement and acceptance-transfer act.
2. Computing Power Rental
Unlike traditional equipment leasing, this type of agreement involves the transfer of computing power only — not the hardware itself. The equipment stays in a data center, and the miner has no physical access.
💡 Key legal documents: usually formalized as a service agreement. Be sure to include pricing, downtime liability, and other guarantees to protect the miner’s interests.
Unlike traditional equipment leasing, this type of agreement involves the transfer of computing power only — not the hardware itself. The equipment stays in a data center, and the miner has no physical access.
💡 Key legal documents: usually formalized as a service agreement. Be sure to include pricing, downtime liability, and other guarantees to protect the miner’s interests.
3. Hosting Mining
Involves either using mining power without owning hardware or colocating your own hardware at a mining hotel. It's important to include guarantees for uptime, responsibilities for downtimes (e.g., due to sudden power cuts), and equipment safety.
⚠️ Without a contract, you risk losing your equipment if the host shuts down.
💡 Key legal documents: data center service agreement.
Involves either using mining power without owning hardware or colocating your own hardware at a mining hotel. It's important to include guarantees for uptime, responsibilities for downtimes (e.g., due to sudden power cuts), and equipment safety.
⚠️ Without a contract, you risk losing your equipment if the host shuts down.
💡 Key legal documents: data center service agreement.
4. Joint Mining (Simple Partnership)
Popular among those pooling resources to buy equipment or electricity. But if profit-sharing terms or damage contingencies aren’t set in advance, disputes are likely.
⚠️ Always formalize the terms, even if working with friends.
💡 Key legal documents: simple partnership agreement, cooperation agreement.
Popular among those pooling resources to buy equipment or electricity. But if profit-sharing terms or damage contingencies aren’t set in advance, disputes are likely.
⚠️ Always formalize the terms, even if working with friends.
💡 Key legal documents: simple partnership agreement, cooperation agreement.
5. Equipment Sale
A sales contract is essential — especially for online transactions. Without it, you could end up with a “dead” ASIC and no recourse. Always document payments and verify the seller to avoid scams.
💡 Key legal documents: sales agreement and acceptance-transfer act, commission or agency agreement (if selling through an intermediary).
A sales contract is essential — especially for online transactions. Without it, you could end up with a “dead” ASIC and no recourse. Always document payments and verify the seller to avoid scams.
💡 Key legal documents: sales agreement and acceptance-transfer act, commission or agency agreement (if selling through an intermediary).
6. Electricity Supply Contract
Required when connecting to the grid as a legal entity or operating on an industrial scale. Using household tariffs for mining can lead to fines and disconnection.
💡 Key legal documents: electricity supply agreement.
⚠️ Note: Some energy contracts can only be signed after registering a legal entity.
Required when connecting to the grid as a legal entity or operating on an industrial scale. Using household tariffs for mining can lead to fines and disconnection.
💡 Key legal documents: electricity supply agreement.
⚠️ Note: Some energy contracts can only be signed after registering a legal entity.
Each type of mining activity requires its own legal structure.
Without a properly drafted agreement, any dispute can lead to prolonged legal battles — where the better paperwork usually wins.
We’ll dive deeper into each contract type in future posts.
Without a properly drafted agreement, any dispute can lead to prolonged legal battles — where the better paperwork usually wins.
We’ll dive deeper into each contract type in future posts.