Nft Proxy Contract Template for Germany

The NFT Proxy Contract serves as a crucial legal instrument in the German market for delegating authority in NFT transactions. This document becomes necessary when an NFT owner needs to authorize a third party to manage their NFT portfolio, whether for investment purposes, marketplace operations, or automated trading systems. The contract is specifically designed to comply with German legal requirements, including the German Civil Code (BGB) provisions on agency and representation, while addressing the unique aspects of digital asset management. It includes comprehensive provisions for security protocols, compliance requirements, and risk management, making it suitable for both institutional and individual NFT holders. The document is particularly relevant in today's expanding NFT market where professional management and institutional-grade handling of digital assets are increasingly important.

1. Parties: Identification of the Principal and the Proxy, including full legal names, addresses, and registration details if applicable

2. Background: Context of the agreement, explanation of NFT trading purpose, and general intention of the parties

3. Definitions: Definitions of technical terms, including NFT, blockchain, wallet addresses, smart contracts, and other relevant terminology

4. Appointment and Scope: Formal appointment of the proxy and detailed scope of authorized activities regarding NFT transactions

5. Authorization Powers: Specific powers granted to the proxy, including buying, selling, transferring NFTs, and interaction with marketplaces

6. Duties and Obligations: Responsibilities of the proxy, including duty of care, reporting requirements, and compliance obligations

7. Security Requirements: Mandatory security measures for handling private keys, wallet access, and transaction signing

8. Fees and Expenses: Compensation structure, gas fees handling, and other financial arrangements

9. Compliance Requirements: AML/KYC obligations, regulatory compliance, and required documentation

10. Liability and Indemnification: Limitation of liability, indemnification provisions, and risk allocation between parties

11. Term and Termination: Duration of the agreement, termination rights, and post-termination procedures

12. Governing Law and Jurisdiction: Specification of German law application and jurisdiction for disputes

13. Miscellaneous: Standard boilerplate provisions including severability, entire agreement, and amendments