The Token Cellar | Protocol of Tokenization & Digital Custody

Effective Date: February 6, 2026

1. Representation of Ownership

By submitting this form and minting an asset, the Minting Party (User) warrants and represents that they are the sole legal owner of the physical asset described or are a legally authorized representative of the distillery/producer.

2. The Digital Twin Concept

The NFT created through the The Token Cellar Portal acts as a Digital Title Deed. While the NFT is a digital asset on the Polygon blockchain, it represents a specific, identifiable physical volume of spirit (the “Physical Asset”) held in bond or professional storage.

3. Verification & Accuracy

The User certifies that all data provided—including Vintage, ABV, Cask ID, and Liters—is 100% accurate at the time of minting. The Token Cellar reserves the right to burn or flag any NFT found to be based on fraudulent or significantly inaccurate data.

4. Custody & Storage

• Bonded Storage: The physical asset must remain in a professional, insured, and climate-controlled environment as specified in the “Storage” section of the form.
• Transfer of Liability: Drinksify is a technology provider and does not take physical custody of the liquid. The responsibility for insurance, leakage (Angel’s Share), and physical security remains with the designated Warehouse or Producer.

5. Transfer of Title

The transfer of the NFT from one digital wallet to another constitutes a legal transfer of the beneficial interest in the physical asset. The Warehouse/Custodian must be notified of any NFT transfer to update their internal “Change of Ownership” logs.

6. Redemption & “Burning”

To take physical delivery of the asset (bottling or cask removal), the NFT holder must initiate the “Redemption Process.” This involves:

• Verifying identity (KYC).
• Paying applicable excise duties and taxes.
• “Burning” (permanently destroying) the NFT to close the digital record and release the physical liquid.

7. Blockchain Irrevocability

The User acknowledges that blockchain transactions are permanent and cannot be reversed. Drinksify cannot “undo” a minting or a transfer once it has been broadcast to the Polygon network.

8. Royalties & Fees

The User agrees to the secondary market royalty percentage specified during minting. These fees are automatically deducted by the smart contract during any subsequent sale on compatible marketplaces.