The "WebMoney Transfer" Code

Introduction

The present Code is the WebMoney Transfer main regulatory document.

The Code sets forth the design and implementation of WebMoney Transfer algorithms and lays down the key notes for interaction between the System members. The Code is implemented by means of the System software algorithms and its observance is obligatory for all members of the System.

The Code is developed and actuated by the System OPERATOR as the owner of the WebMoney Transfer Transactions Certification Center software, the System’s automated services, and the client software for the System members.

Organizing technological interaction between the System members, identifying the size of compensation for use of the System services, and establishing security standards is an exclusive prerogative of the System Operator.

The requirements in the named areas apply to all system members equally.

The System Operator can make modifications to the present Code independently, as well as undertakes to make modifications herein upon completion of a referendum of WM personal passport holders.

Members of the System shall be notified on the changes no later than 10 days before the changes enter into force.

Chapter 1. General provisions

Article 1.1. Definition of WebMoney Transfer

WebMoney Transfer is a combination of automated hardware and software of the Certification Center, the System’s automated services and client modules (WebMoney Keeper) managed by physical and legal entities (regardless of their jurisdiction), as well as the relationships and procedures between the specified structural elements arising from the issue and accountance of WM — a universal digital title unit (a unit to calculate the quantity (scope) of property rights, keep records of WM transactions, and pay under the transactions where WM were used as a tool).

Article 1.2. Structure of WebMoney Transfer

The composition and definition of WebMoney Transfer structural elements:

«WEBMONEY» is a universal title unit (WM) in a digital form, a unit of calculating the quantity (scope) of property rights, the value of which (conditional network cost) is established and maintained by their owners.

WebMoney Transfer member is a user of the transfer system and its automated software and hardware, any physical (or legal) person who is a party in WEBMONEY transactions (in any fragments and derivatives thereof).

«WEBMONEY KEEPER» is a free-of-charge software module on the System web server, installed on the user’s computer to implement a set of WEBMONEY accountance and movement algorithms.

«Member's COMPUTER» is a computer (computers) on which a member of the System runs WebMoney Keeper to work with WebMoney Transfer.

«OPERATOR» is the developer, owner, setter, and administrator of the electronic transfer system who provides uninterrupted operation and integrity of the System.

«The CODE» is the regulatory and algorithmic provisions, technical and procedural rules, all together regulating member’s user status and the relationship with the Operator.

«USER ID» is a series of signs generated during the installation of WebMoney Keeper on the member’s computer, a unique name identifying a member in the System to which all member-initiated WMT-procedures become attached.

«KEY» is the numerical string used in system security algorithms as a unique interpreter enabling user ID control and confirming the ID belonging to the bearer of the key.

«PURSE» is a credential bound uniquely with the USER ID to register the ownership of title units. A purse ID contains a symbol prefix to denote the type of title units used with it.

«WM-TRANSACTION» is transfer of title units between purses of identical type.

«MESSAGE» is a text message transmitted between client software and signed by the corresponding SENDER and RECEIVER keys.

«INVOICE» is a request for transfer of title units of selected type from one USER ID to another.

«UNDERWRITER» is an organization that issues title units of a certain type, keeps and manages the emission cover funds, determines the equivalent exchange for the declared property rights, has published a purchase and sale offer for the underwritten title units on the System’s web site and in WebMoney Keeper software, initiates a legally relevant economic circulation of the underwritten title units in accordance with the laws of the registration country.

«SYSTEM SERVICES» are special hardware and software automation services equally accessible to all System members, developed, set up, and maintained by the OPERATOR to deliver additional functionality on top of the user software.

«VERIFICATION» is a service verifying ownership of a USER ID to a physical or legal person by implementing actions that confirm the admissibility of controlling the user ID by the person who has presented documents to prove his or her identity.

«ARBITRATION» is a service to resolve disputes between members of the System according to the present Code, as well as the Agreements and regulations accepted within the System.

«VERIFICATION OFFICER» is a physical or legal person who performs VERIFICATION of the System members, represents user interests in the course of ARBITRATION, and has made a security deposit in the System.

«PERSONAL PASSPORT» is a System recorded result of completed verification of a physical or a legal person directly with the VERIFICATION OFFICER.

Article 1.3. Essential functions of WebMoney Transfer structural elements

Section 1.3.1. Essential functions of a WebMoney Transfer member

All WMT members are entitled to the following:

registration of any type purses available within the System access to all the System Services
transfer title units between purses of identical type, including transfer between purses of the same WM-ID
automatic acceptance of title units received from the System members
secure messaging with the System members, message history of 3 days from the last login stored in a code-protected archive in the System database
in case of loss, automatic restoration from the Systems' database of the three-days history of transactions and messages starting from the last login to the System, but not later than 90 days starting from the calendar date of restoration
issuing and paying invoices within the System
changing the user key and password
blocking incoming messages, invoices and title units from unauthorized users in the contact list.
free WebMoney Keeper software updates
user search by user ID or purse number
access to all the purse replenishment tools provided by the Underwriter and exchanging title units secured by the Underwriter
filing complaints about unfair members to the System Black-List
initiation of an arbitration action against the System members who received WM-transactions

Section 1.3.2. Essential functions of the System Operator

maintain organizational and technological integrity of the System
ensure uninterrupted operation of the WMT Transactions Center
development, installation and support of operations of the System services
WebMoney Keeper client software development and publishing
facilitate Underwriter registrations and interaction between System members and Underwriters
organize a mechanism for Underwriters audit and reports publishing, maintain a system balance and user access to the statistical information
guarantee the observance of security requirements in the System
development and user access to the self-managed interfaces in accordance with the present Code
represent the interests of the System when dealing with physical or legal persons who are not members of the System
organize and provide technical support for System members
the System popularization and advertizing in mass media

Section 1.3.3. Essential functions of the System Underwriters

keep record of the stored values in the form of corresponding title units
provide exchange of title units into the declared equivalent
create a guarantee fund to ensure exchange of title units into the guaranteed equivalent
develop a legal substantiation for business application of the title units in accordance with the laws of the Underwriter’s country of registration
provide transaction reports on the Underwriter title units to the System members
provide the System Operator with the data necessary for guarantee fund audit
organize interaction with the System members, consult on the use of the underwritten title units
represent, under the instructions of the Operator, the interests of the System in the country of registration
publish statistical data on transactions with the issued title units

Section 1.3.4. Essential functions of the Verification Officers

To receive the status of a Verification Officer, any physical or legal person who is a member of the System and has a Personal passport, concludes a contract with the Operator on representing the interests of the System in the process of user verification (user-initiated association of a member ID ownership with his or her physical or legal person).

As a performance guarantee to this agreement, an insurance amount defined by the Operator is paid. In case of discontinuation of Verification Officer functions, the insurance payment shall be returned to the member, provided his or her activities have been in conformity with the terms of the agreement. In case discrepancies in certification data approved by the Verification Officer are found, the member will lose the status of a Verification Officer, furthermore, the insurance amount will not be paid back.

Besides issuing certificates, a Verification Officer can perform arbitration. In case of acceptance of the arbitration responsibilities, the Operator shall make sure the Verification Officer credentials are on the Arbitrators list, from which he or she can be selected to be either a claimant or respondent, or by the System to issue a verdict on a case examined. In this case, the automated service of Arbitration will provide the access interface to facilitate the arbitral proceeding.

Chapter 2. The Essential Principles of Relationships

Relationships between WebMoney Transfer members and the Operator or Underwriters shall be governed by the accepted agreements and the present Code. Each member, during client software registration, purse setup, or use of automated Services, makes decisions on the System usage by agreeing (or disagreeing) to the offers proposed.

Article 2.1. The Essential Principles of Contractual Relationships

Section 2.1.1. The essential provisions of «The agreement on the property rights transfer»

«The agreement on the property rights transfer» is made between the Operator and ANY Member and is the only document that requires acceptance in order to use the System. «The agreement on the property rights transfer» defines the following:

Essential Terms and Definitions
Obligations of the Operator
Obligations of the Member
Acknowledgement by the parties of the reliability of data transmission by means of the System
Acknowledgement by the parties of inadmissibility of using the System for purposes pursuable under international law
Acknowledgement by the parties of the Operator’s right to do all in his power to protect the interests of the System members and the System as a whole
Scope of competence and accountancy
Limitations of liability
Conditions of modification, suspension, and cancellation

Section 2.1.2. Essential principles for agreements between the System Operator and Underwriters

WebMoney Transfer is open for use in any jurisdiction and organizational form that is not in conflict with international law. This possibility is achieved through the mechanism of Underwriters accession into the System based on contractual relationships between an Underwriter and the Operator. While these agreements can establish various forms of co-operation, the following essential principles remain obligatory:

Underwriter’s voluntary commitment to exchanging the underwritten title units into the declared equivalent within the System.
Underwriter’s voluntary recognition of his or her responsibility to maintain integrity of the guarantee fund.
Underwriter-provided substantiation for the legal incorporation of circulation of the underwritten title units in the country of registration
Underwriter’s voluntary recognition of authenticity of the information transmitted in the System
Underwriter’s voluntary acknowledgement of the Operator’s right to audit the guarantee fund
Agreement on the technology of the value storage in the form of title units
Agreement about the statistical data reporting technology
Publishing a guarantee obligation on the title units exchange
Publishing the technology, agreements, and exchange particulars of the underwritten title units so that it is available for the System members.

Section 2.1.3. Essential principles for agreements between Underwriters and the System members

Agreements between an Underwriter and members of the System are made during a member’s registration of a new purse for Underwriter title units, during purchase of title units from an Underwriter (purse replenishment), during exchange of Underwriter title units for their equivalent (withdrawal from the System). Publishing and signing of these Agreements is facilitated by the Operator by means of adding procedures to the System’s corresponding algorithms. The above agreements must contain the description of the title units equivalent, the Underwriter obligation to exchange the title units and the exchange conditions.

Section 2.1.4. The System’s essential principles of business dealing for System members

All agreements, in which the Operator, Underwriters or Verification Officers acts as a party, must contain an explicit indication of:

the speed and finality of WM-transactions, members’ personal responsibility in effecting transactions using the System
acknowledgement of the Operator’s responsibility to recognize the bearer of the key as the ID owner
the obligation not to use the System for illegal purposes and not to perform actions causing a loss to the System or third parties.
the right of the Operator to maintain an event log and, in case of user’s infringement of the present Code, WMT agreements, illegal actions or causing losses to third parties, use this information by sending the data to judicial authorities of any jurisdiction in order to protect the interests of the System, its members, and third parties.
a note of warning that WebMoney Transfer does not act as a party in transactions between members and is not responsible for infringement of financial, material and any other obligations arising between its members.
the system, being a hardware and software instrument, does not supervise the observance of any person’s interests during payment transactions and cannot interfere with any transaction irrespective of its purpose
a note of warning as to the necessity to observe business etiquette standards during the use of the System, including a note on prohibited practices

Article 2.2. The Essential Payment Principles

Section 2.2.1. Payment Structure

The System facilitates payments:

between the System members
between the System members and the Operator
between the System members and the System Underwriters
between the System members and the System Services

All payments within the System are in title units only.

Section 2.2.2. Compensation for the services within the System

The Operator determines all compensations for WM-transactions for each type of purse when making agreement with an Underwriter. The Operator independently determines the size of compensation for use of the system Services.

Article 2.3. The essential principles for organizational and technological relationships

All relationships within the System are only established and maintained on the basis of WM-procedures providing identification of parties. Users, including the System Services and the Operator, can perform within the System only after successful completion of the registration procedure.

Section 2.3.1. New Member Registration

In order to use the System, members complete the procedure of registering their Identifier on the verification server. After that, members can register any listed type of purse and enjoy access to the System Services. The personal data provided can be made accessible for viewing by other users. The Operator defines the data necessary for registration of the user ID and Underwriters define the set of purses required for registration. Users bear sole responsibility for the accuracy of the registration information they provide.

Section 2.3.2. Underwriter Registration

According to section 2.1.3, Underwriter registration in the System follows the agreement conclusion with the Operator.

To sign an Agreement with the Operator, a physical or legal person makes an application to the Operator; the Operator gathers and publishes data to receive an objective estimation from the system members as to the possibility and expediency of introducing the title units of the declared type into the System. The decision to conclude an agreement between a new Underwriter and the Operator is affirmed by the general voting of the system members with a personal or higher certificate and a balance of title units on purses above zero as of publishing the data for voting. The decision is approved if more than 50 percent of the votes said “YES”. At the same time, voting is considered effective provided the number of voters is not less than 10 percent of the total members with a personal or higher certificate and a purse balance above zero as of the announcement of the voting.

After making the agreement, the Operator incorporates the issued title units into the System, informs all System members of the Underwriter registration, publishes all the necessary guidance, agreements and transaction instructions on the System servers, including the Underwriter’s WM Identifier.

Chapter 3. Making and processing transactions

Article 3.1. Technical terms, procedures, and definitions

Authorization is a process of permitting incoming messages, invoices and title units from a user in the contact list.

The Certification Center is WebMoney Transfer Transactions Certification Center.

A transaction amount is the amount of title units transferred during a WM-transaction.

The purse type is denoted by the prefix before the numerical purse ID matching the title units to a certain Underwriter in the System.

An invoice is a request for a WM-transaction from a member, contains a number, amount and transaction purpose.

A message is any information sent between members, authenticity and integrity of which is certified by the WMT Transactions Certification Center.

Article 3.2. Transaction types

Members’ transactions are certified by the System and recorded in the user's WebMoney Keeper log. Member’s log data is accessible for viewing and use. On member’s request, log data can be retrieved in case of damage or loss.

Section 3.2.1. Transfer of title units

Transfer of title units is possible only between purses of identical type and must occur between authorized users.

In case a member needs to transfer title units to a purse of a different type, the title units will first need to be exchanged into the corresponding type. The exchange is performed by means of the Operator Services or services provided by other members.

The System employs two types of transactions:

A simple transfer — an unconditional WM-transaction initiated by the sender and accepted by the recipient, contains the amount and payment information.

A code-protected transfer (consists of two phases) — initiated by the sender, contains the amount and the payment information, as well as a condition under which the funds will be transferred to the recipient’s purse, i.e. after the protection code is entered at the given time. There will be no transfer if the protection requirement is not observed.

Section 3.2.2. Billing and paying invoices

A recipient may initiate transfer of title units by invoicing a sender. An invoice contains all the necessary transfer data: payment instructions, the amount, payment information, payment period and transaction type (simple or protected). The user automatically transfers the title units by accepting the invoice, or initiates a refusal notice to the sender by declining the invoice.

Section 3.2.3 Message exchange

Users can exchange messages while using the System. The Operator sets the size limitations on the transmitted messages. All messages in the system are signed by keys of the sender, the recipient, and WMT Transactions Certification Center and can be used as proof in arbitral adjudication.

Article 3.3. Security in WebMoney Transfer

Section 3.3.1. Essential security principles

All Members shall observe the security procedures established in the System, and Members shall bear sole responsibility for any damage and loss of data at their disposal. The Operator will oversee the observance of the security procedures and guidelines by Members, and makes such provision during member registration and change of data exchange protocols or technological algorithms for Member operation in the system.

Members shall inform the Operator on any instances or attempts of fraud in connection with WebMoney Transfer. The Operator will use the information to develop security recommendations that are periodically published or sent to Members as a service message, as well as create and adjust the general security policy in system.

Section 3.3.2. The Operator functions to ensure security

The operator performs the following essential functions to maintain system security:

develops a security policy, informs members about it and implements it in the system algorithms
ensures integrity — authenticity and confidentiality of the member data at all stages of its processing and transfer by members
provides security certification of the members and ensures the observance of security requirements by all members
provides an encryption protection for the message exchange with the users
provides an analogue of a handwritten signature application for all member transactions
informs members on security threats and offers preventative measures
provides protection of WM Transfer Transactions Certification Center and protection of the access channels to the Certification Center
maintains backup storage of all data of the System
promptly informs all users and persons concerned on all security policy breaches or instances of illegitimate use of the System’s mechanisms.

Section 3.3.3. Member responsibility for improper use of the System’s mechanisms

Members bear full responsibility for unauthorized or improper use of their identifier.

In case instances of illegal use of the System’s mechanisms are detected, the Operator will immediately block control of the user ID and will proceed to take actions necessary to protect the interests of the System and its users.

Chapter 4. The system services

For convenience of the System members, the Operator develops and maintains hardware and software automation (Services) accessible to all System members.

The Services may be incorporated as functions in WebMoney Keeper software or be accessible via the System servers.

The Operator develops Services independently or on the initiative of members.

The Operator may also add to the list third party developments that utilize the System services.

The Operator determines the payment conditions for use of Services.

When a new Service is introduced or automation of an existing Service is changed, the Operator notifies all System members and publishes the description and conditions of use.

Chapter 5. WebMoney Transfer System Controls

Article 5.1. Principles of the System control organization

To ensure stable functioning, control of the System is shared between the Operator, Underwriters and Verification officers.

The system, as a uniform technological environment, is developed, maintained, and advanced by the Operator. The operator has assumed the obligation to observe the present code voluntarily. The operator does not act as a party at any transactions between members of the System. The operator cannot act as an Underwriter of title units. The Operator receives remuneration for implemented activities in the form of commissions for WM-transactions or fees for use of the System services, paid in title units only.

All property rights for the assets to support title units of a certain type belong to the System Underwriters.

Any disputes between the System members are resolved in the Arbitration made up of three arbitrators selected from among the System Verification Officers to represent the claimant, respondent and the Operator. Arbitral adjudication can result in amicable agreement between the claimant and the respondent or service termination of the party at fault.

Members of the System can initiate a referendum to make amendments in the current code.

Article 5.2. Referenda procedures in the System

Referenda in the System are held on the initiative of a system member approved by more than 10 percent of personal certificate holders.

Only the System members, who have a personal or higher certificate and a balance of title units on their purses above zero as of the time the referendum was announced, can participate in the System referenda.

During a referendum, the Operator sends a special voting form to all referendum participants with the question discussed at the referendum and the conditions of voting in favor of it followed by a link to the dedicated forum where the participants can debate on the referendum subject.

The waiting time for answers to the questions of any referendum is 10 days from the time the voting form was sent out.

The decision to make an amendment in the Code will be considered adopted, provided less than 10 percent of the referendum participants voted “NO”.

The Operator shall make all necessary informational or algorithmic changes to the System within thirty days after completion of the referendum.