Fourdotzero Rulebook

What is Fourdotzero?

Fourdotzero is a convenient and fun way to pay for the little things online and in person.

Specifically designed for the next evolution of the internet, we make small payments pay to power Web 3.0 and metaverse business models. Making it easier and cheaper to buy and sell online services both now and in the future.

The Fourdotzero network was founded to create safe, trusted, regulated money.

Meet the digital way to pay.

Reference to all Network Documents

The following document make up the collection of Fourdotzero network documents, Functional Specification, Membership Agreement)

Defined Terms

When used in this Rulebook the following words and phrases are defined terms with the defined meanings in the table:

Compliance Action	An action a Member is able to make and may use to exert control over a User Wallet and funds as dictated by the Member's compliance policies and relevant law (for example, blocking wallet access, removing funds to a compliance trust account)
DLT Network	The blockchain network on which Fourdotzero transactions are settled
DLT Wallet	A distributed ledger technology wallet used on the Fourdotzero DLT Network by a Member for settling Fourdotzero payments or fees – the Member holds their own private and public keys for a DLT Wallet
End-user	A person or business who has a contract with a Fourdotzero Wallet Provider Member to use a Fourdotzero User Wallet to make and receive payments over the Fourdotzero network
Functional Specification	A document available only to Members outlining how to build software and services to integrate into the Fourdotzero network
Fourdotzero	Fourdotzero Ltd, a UK limited company and its associates (if any)
Rulebook	The rules and procedures governing the Fourdotzero network
Member	An organisation which has signed the Fourdotzero Membership Agreement to adhere to the Rulebook
Membership Agreement	The agreement signed by each Member and Fourdotzero legally binding the Member to adhere to the Rulebook
Network Service Provider Member	An organisation that provides services to Members over the Fourdotzero network which may include blockchain services
Proof-of-Reserves	Programmatic proof provided by Fourdotzero displayed continuously on a public website showing the total number of Tokens in issuance in each currency and the corresponding balance in the Reserve Account for the currency. Both totals for each currency are identical at all times.
Reserve Account	A bank account in a specified currency held by Fourdotzero at a commercial bank, custodian or central bank containing funds that are matched 1:1 all the time with Tokens in the same currency to the same total value on the Fourdotzero network.
User Wallet	A software wallet made available by Wallet Provider Members to their End-users to send and receive payments over the Fourdotzero network. A User Wallet holds an End-user’s Fourdotzero funds allowing them to make and receive payments . User management (username, password and resets) is provided by a Wallet Provider Member
Wallet Developer Member	An individual or organisation that provides software for wallets to Wallet Provider Members. References to Wallet Developer mean Wallet Developer Member
Wallet Provider Member	An organisation providing User Wallets to their customers that operate on the Fourdotzero network. References to Wallet Provider mean Wallet Provider Member
Token	The unit of account in a specified currency used to settle Fourdotzero transactions on the DLT Network. A Token is expressible to six decimal places in each currency unless specified otherwise. Tokens are issued (minted) and redeemed (burned) only by Fourdotzero. Tokens in different currencies are separate and the total number of issued Tokens in a currency at any time always equals the balance in the Reserve Account for that currency. Tokens are a claim on Fourdotzero for the value the Tokens represent.

Introduction to the Rulebook

This Rulebook sets out the rules for Members to ensure the smooth running of the Fourdotzero system, a global micropayment network for digital commerce.

There are four categories of Members as set out in the Defined Terms:

Fourdotzero
Network Service Provider Member
Wallet Developer Member
Wallet Provider Member

The following principles underpin the Fourdotzero network, its philosophy and governance and are encapsulated in this Rulebook:

Fourdotzero promises to provide small value payments that are cheap, easy and frictionless.
Rules and controls are proportionate to the payment value and risk.
End-user data belongs to End-users.
Payment data is kept private and to a minimum
Permission must be given freely without coercion, deception or as a prerequisite for unrelated products or services by End-users before any of their data is used, sold or otherwise commercialised.

The Fourdotzero network was founded to provide access to safe, trusted, regulated money for small value payments. This Rulebook lets Members know what they must do and expect from Fourdotzero and other Members.

It reflects legal and regulatory requirements in each country where Fourdotzero is operational.

It must be read together with the Fourdotzero Functional Specifications and Fourdotzero Membership Agreement.

The Rulebook is published on www.fourdotzero.io (in the Member’s area). Only Members are bound by the rules. Payers and receivers are classified as End-users of the Fourdotzero network, rather than direct Members.

Rulebook Amendments

Regular updates to the Rulebook are issued each January and July.

If issues arise in the Fourdotzero network that require Rulebook amendments outside the regular update schedule, critical issue amendments are made within one week of Fourdotzero agreeing to the resolution for the issue; and non-critical issue amendments are made within one month of Fourdotzero agreeing to the resolution for the issue.

Fourdotzero notifies Members of all Rulebook amendments including if there are no amendments for the scheduled regular updates. Notifications include implementation instructions and dates.

Conventions

The Rulebook is written according to the following conventions:

‘Must’	Denotes a rule, that’s something a Member is required to do.
‘May’	Denotes a recommendation or best practice, that’s something a Member is advised to do, mostly because it’s better for them, their customers, the Fourdotzero network etc. Or because it’s custom and practice.
‘Except’ or ‘unless’	Denote exceptions or exemptions from rules.
‘Should’ or ‘ought to’	Are not used because they can be ambiguous in certain contexts. Do they denote an obligation? Or denote what is possible or probable?
‘Are required to’, ‘are mandated to’, ‘are obliged to’, ‘are compelled to’ or ‘need to’, ‘shall’ or ‘will’	For clarity these terms are not used.

1. Responsibilities, Liabilities and Legal Relationships

This chapter explains the responsibilities, liabilities and legal relationships of Wallet Provider Members, Wallet Developer Members and Fourdotzero Limited (Fourdotzero’s legal entity in the UK) and Fourdotzero’s local regulated entities when Fourdotzero sets up in a new country. It also covers the resolution procedures in the event of the insolvency of either a Wallet Provider Member or Fourdotzero.

Chapter Content

1.1 Applicable Laws

1.2 Fourdotzero Rules

1.3 Liabilities and Indemnifications

1.4 Wallet Provider Member Responsibilities

1.5 Wallet Developer Member Responsibilities

1.6 Fourdotzero Responsibilities

1.7 Fourdotzero Liabilities

1.8 Legal Relationships

1.9 Resolution Procedures in the Event of Insolvency

All Members must:

Comply with all applicable laws, regulations and other legal requirements.
Ensure that their affiliates, subsidiaries, parent companies, agents and third parties comply with all applicable laws, regulations and other legal requirements.

Note that in the event of any conflict between applicable law and regulations and Fourdotzero rules, applicable law and regulations take precedence.

Adhere to the rules in this Rulebook, the technical specifications in the Functional Specifications, and the requirements of the Membership Agreement, assurance programme and associated documentation.
Make system or other changes in accordance with Fourdotzero rules within the timeframes specified.

Accept full liability for any misuse of Fourdotzero User Wallets.
Indemnify Fourdotzero for and against claims and liabilities arising from their participation in the Fourdotzero system.
Include a term in agreements with agents or third parties that stipulates that the Member is responsible for the acts and omissions of its agents or third parties.

In addition, Wallet Provider Members must:

Sign up and manage End-users.
Have a robust anti-money financial crime programme in place to prevent money laundering and counter the funding of terrorism.
Conduct customer due diligence where required by law.
Conduct ongoing monitoring of the customer relationship and transactions to enable the detection of unusual or suspicious transactions.
Prevent fraud.
Take Compliance Actions against compromised or unlawfully held User Wallets e.g. in the case of fraud or ‘true positive’ sanctions hits.
Investigate reported User Wallets for unusual or suspicious usage – suspicious usage includes opening of large numbers of wallets by a single End-user.
Identify themselves as the issuer of a Fourdotzero User Wallet.
Include language in End-user agreements that states that a Fourdotzero User Wallet must not be used for any illegal purposes. This includes for the sale or purchase of goods or services that are illegal according to applicable laws, regulations and other legal requirements.
Hold e-money Tokens in their Fourdotzero network DLT Wallet on behalf of their customers, recognising that these e-money Tokens are a claim of their customers on Fourdotzero for the collateral the e-money Tokens represent held by Fourdotzero.
Ensure that the sum of the balances of their customers’ End-user Wallets in each currency always equals the total number of Tokens for that currency in their operational DLT Wallet used for settling payments
Maintain End-user User Wallet data to enable Fourdotzero to settle funds to End-users accurately and in full at any time, in the event of an insolvency of the Member.
Use Wallet Developer Member ID keys provided by Fourdotzero.
Process all transactions between Fourdotzero User Wallets using the Fourdotzero network.
Prevent use of User Wallets in transactions where the value of Fourdotzero e-money Tokens transacted is different to the par value of the e-money Tokens.
Not sponsor third parties within the Fourdotzero network through their Fourdotzero membership.
Not outsource or sub-contract their responsibilities within the Fourdotzero network.
Not charge End-users for providing a Fourdotzero User Wallet, directly or indirectly.

In addition, Wallet Developer Members must:

Identify themselves as the developer of a Fourdotzero User Wallet.
Alert Wallet Provider Members and Fourdotzero if vulnerabilities emerge.
Use Wallet Developer Member ID keys provided by Fourdotzero.
Not sponsor third parties within the Fourdotzero network through their Fourdotzero membership.
Not outsource or sub-contract their responsibilities within the Fourdotzero network.
Not charge End-users for developing a Fourdotzero User Wallet directly or indirectly.

In addition, Fourdotzero Limited, Fourdotzero’s legal entity in the UK must:

Hold and maintain a licence as a regulated entity.
Maintain and keep the Fourdotzero Rulebook, Functional Specifications and Membership Agreement up to date.
Conduct assurance to check Member’s adherence to the Rulebook, Functional Specifications, Membership Agreement, assurance programme and compliance obligations.
Ensure Wallet Provider Members are signed up and under contract.
Operate the Fourdotzero network.
Facilitate the issuance and redemption of e-money Tokens.
Safeguard customer funds and maintain Proof-of-Reserves.
Distribute fees earned to Members through smart contracts at the time of the transaction.

Members operate on the Fourdotzero network at their own risk. Fourdotzero has no liability to Fourdotzero Members other than to send Members any fees they are due and to redeem Tokens in accordance with the Rulebook. Fourdotzero has no liability to Fourdotzero Members in the event of any outages of the Fourdotzero network, network incidents, scheduled maintenance, force majeure or errors in the Functional Specification and other documentation provided by Fourdotzero.

The contractual relationships that arise between Members transacting on the Fourdotzero infrastructure are:

Wallet Provider Member to Wallet Provider Member for payment transactions, refund requests and request-to-pay requests
Wallet Provider Member to Fourdotzero for fees collection, fees disbursement, deposit and withdrawal transactions
Wallet Developer Member to Fourdotzero for fees collection and fees disbursement
Network Service Provider Member to Fourdotzero for fees collection and fees disbursement.

In the event of the insolvency of a Fourdotzero local entity, all payments in the local currency cease immediately and Fourdotzero pays out to all Members’ customer bank accounts within seven days. Where no valid bank account details are held Fourdotzero must contact Members for instructions on where to pay their outstanding balance.

In the event of the insolvency of a Member, End-users must have the option to redeem all the funds in their User Wallets. An insolvent Member must send all e-Tokens to Fourdotzero’s DLT Wallet. Providing Fourdotzero has the End-user balance from the insolvent Member and bank account details from the End-user, it pays out all funds to the insolvent Member’s End-users, including the EUR 5.00 minimum User Wallet balance to close the account.

2. Introduction to the Fourdotzero Network

The Fourdotzero network is a global, multi-currency small value payments network, aimed at payments below £20 or the equivalent in other currencies.

End-users of the network are individuals and retailers who are issued a User Wallet by their Wallet Provider to send and receive payments. End-users fund their User Wallet by depositing funds directly in Fourdotzero’s Reserve Account for the same currency. On receipt of funds, Fourdotzero issues (mints) Tokens in the currency to the End-user’s Wallet Provider on the DLT Network used by Fourdotzero. In turn, the Wallet Provider credits the End-user’s User Wallet with the funds.

All payments made between User Wallets are executed and settled over the DLT Network using Tokens. Should an End-user wish to withdraw funds from their User Wallet then Fourdotzero redeems (burns) Tokens held by the Wallet Provider to the value of the withdrawal and credits the End-user (bank account or cash through an agent) from funds held in the Reserve Account for the withdrawal currency.

Wallet Providers may provide their own User Wallet or may employ a Wallet Developer to do so.

Every time a payment is made on the Fourdotzero network, fees are paid to:

The payer Wallet Provider and receiver Wallet Provider
The payer Wallet Developer and receiver Wallet Developer (a Wallet Provider also collects this fee if they provide their own User Wallet)
The Network Service Provider running the DLT Network
Fourdotzero

No fees are paid for deposits and withdrawal transactions.

This fee structure incentivises:

Wallet Providers to grow their End-user customers and their use of the Fourdotzero network
Wallet Developers to develop innovative User Wallets for use with smart contracts and digital applications for Wallet Providers to adopt
The Network Service Provider to provide a low cost, scalable DLT Network
Fourdotzero to grow the Wallet Providers, Wallet Developers and End-users on the network.

These actors on the Fourdotzero network and the fees they receive are shown in Figure 1.

Figure 1 – Fourdotzero Network actors and fee flows

Note: Wallet Developers collect fees (where used by Wallet Providers) and are shown in the fees flow in Figure 1, but they have no role in the payment flow.

Payments may be initiated directly between User Wallets or programmatically using smart contracts linked to End-user applications.

Person-to-person (P2P) and person-to-business/retailer (P2B) transactions are supported and may be initiated through:

user-keyed direct payment from payer to receiver
static QR codes where the receiver displays a QR code containing their wallet address to the payer allowing the payer to capture the address and send a payment
dynamic QR codes where the receiver displays a QR code containing their wallet address, the amount to pay and their reference – allowing the payer to capture the payment details and send a payment without keying in the details
a user-keyed request-to-pay where a payer pays in response to a request from the receiver through their User Wallet
a universal link request-to-pay where a payer pays in response to a request from the receiver through a link (e.g. over email)
a show-to-pay where a payer shares their wallet address with the receiver through a QR code and the receiver sends a request-to-pay to the payer’s wallet.

Payers may request refunds through their User Wallet for their payment, to be repaid in full or partially from receivers, if for example a receiver is unable to deliver goods or services. Receivers may accept the request by paying the refund or they may decline it.

Payers may also rate receivers through their User Wallet and flag up bad actors to their Wallet Provider.

3. Transaction Processing

This chapter sets out the rules for Members regarding the three main transaction flows across the Fourdotzero network. These are the:

1) funding of Fourdotzero User Wallets,

2) payment using Fourdotzero e-money Tokens, and

3) the redemption of Fourdotzero e-money Tokens.

It also explains how Members answer two questions. Firstly, is the End-user who they say they are, also known as authentication? And secondly, is the payment initiated by the legitimate End-user, also known as authorisation?

The overwhelming majority of transactions across the Fourdotzero network complete smoothly, however exceptions may occur. This chapter also explains how to handle refunds, rate counterparties, report bad actors and how the dispute resolution process works.

General
Tokenomics

3.3 Ownership of a Fourdotzero User Wallet

3.4 Balance of a Fourdotzero User Wallet

3.5 Funding a Fourdotzero User Wallet

3.6 Paying with a Fourdotzero User Wallet

3.7 Redeeming Funds from a Fourdotzero User Wallet

3.8 Authentication

3.9 Authorisation

3.10 Settlement and Availability of Funds

3.11 Exception Items, Additional Mandatory Functions and Disputed Payments

3.1 General

Members must:

Process all Fourdotzero transactions via the Fourdotzero network.
Conform with messaging standards detailed within the Fourdotzero Functional Specifications.

3.2 Tokenomics

Fourdotzero Tokens are held in DLT Wallets. Members hold these wallets as follows:

Wallet Provider Member – an operational DLT Wallet for settling payments in Tokens between End-users, for receiving Tokens minted by Fourdotzero when End-users fund their User Wallets and for sending Tokens to Fourdotzero to be burned when End-users withdraw funds; and a fee DLT Wallet for receiving fees in Tokens from payments sent and received by their End-users
Wallet Developer Member - a fee DLT Wallet for receiving fees in Tokens from payments sent and received by the End-users of a Wallet Provider Member for who the Wallet Developer Member provides User Wallets
Network Service Provider Member - a fee DLT Wallet for receiving fees in Tokens from payments sent over the Fourdotzero network
Fourdotzero – an operational DLT Wallet for receiving Tokens to be burned when an End-user makes a withdrawal and for receiving fees in Tokens from payments sent over the Fourdotzero network (note – when Fourdotzero mints Tokens, the smart contract credits the Tokens directly to the End-user’s Wallet Provider Member’s operational DLT Wallet rather than in Fourdotzero’s operational DLT Wallet); and a fee DLT Wallet for receiving fees in Tokens from payments sent and received by all End-users.

A Fourdotzero Token provides an immutable commitment from Fourdotzero to the Token holder to guarantee redemption at par value. The holder has a legal claim on Fourdotzero and a Fourdotzero Token is a liability of Fourdotzero.

Only Fourdotzero may issue and redeem Tokens, through, respectively, minting and burning – no other Member has the capability or right to issue or redeem Tokens.

Each Token is matched programmatically one-for-one with an identical liability in Fourdotzero’s Reserve Account, so for example for every £1 deposited in Fourdotzero’s Reserve Account a Token to the value of £1 is issued; and for every £1 Token withdrawn (and burned) from the Fourdotzero network £1 is paid out from the Reserve Account to the withdrawer’s bank account (or in cash).

Fourdotzero is a global network designed to operate with multiple currencies. A User Wallet may be multi-currency depending on the Wallet Provider Member’s offering. For each currency, Fourdotzero holds a separate Reserve Account for that currency and issues Tokens specific to each currency. For example, Fourdotzero may have £10m in its GBP Reserve Account at a UK commercial bank and 10m Fourdotzero GBP Tokens in issuance; and also have €15m in its EUR Reserve Account at an EU commercial bank and 15m EUR Tokens in issuance. An End-user may have both GBP and EUR (and other currency) balances in their User Wallet and is able to send and receive payments in each currency. FX works using a third party holding balances in different currencies in their User Wallet who offers to buy and sell currency from other End-users. For example, a UK End-user wishing to add EUR to their User Wallet may send GBP from their User Wallet to a third party who quotes a GBP/EUR FX rate and credits the UK End-user’s wallet EUR balance with EUR (they could of course alternatively send EUR directly to Fourdotzero’s EUR Reserve Account).

Programmatically, Fourdotzero can do nothing with reserve funds other than safeguard them and return them at par value when Tokens are redeemed. Fourdotzero’s Reserve Account may be used only to accept deposits from Members and Wallet Provider Member customers in exchange for issued Fourdotzero Tokens; and to send funds to Members and Wallet Provider Member customers who have made withdrawals by sending Tokens to Fourdotzero for burning.

Fourdotzero may pay out funds from its Reserve Account only as follows:

to an End-user’s bank account, or in cash (through an agent) in the event of a withdrawal from a User Wallet and after Fourdotzero has received the withdrawal value in Tokens from the End-user’s wallet provider and after Fourdotzero has burned the Tokens
to a Member’s bank account when the Member withdraws the fees it has accumulated in Tokens in its fee DLT Wallet and after Fourdotzero has received the withdrawal value in Tokens from the Member’s fee DLT Wallet and after Fourdotzero has burned the Tokens
to Fourdotzero’s own bank account when Fourdotzero withdraws the fees it has accumulated in Tokens in its fee DLT Wallet and after Fourdotzero has burned the Tokens
to return any deposit sent in error to the Fourdotzero Reserve Account to their owner (in which case no Tokens are minted to match the deposit or burned to return it).

Fourdotzero must make available a public Proof-of-Reserves continuous display that shows the real-time balance of the Reserve Account and the total Fourdotzero Tokens in issuance.

Ensure that End-users link their Fourdotzero User Wallet to a hardware device (e.g. a mobile device). This includes instances when End-users wish to use their Fourdotzero User Wallet from a new or additional device.
Prevent trading of User Wallets between End-users (i.e. User Wallet ownership remains with a single End-user and cannot be transferred).
Complete customer due diligence checks on End-users if they own more than five Fourdotzero User Wallets.
Be able to detect and prevent End-users from opening multiple User Wallets under one or more names, attached to one or more devices. In instances where End-users transact below the maximum User Wallet balance and monthly flow controls, customer due diligence checks are not required.

Table 1 – Transaction Limits and Controls

	If the Wallet Provider Member has undertaken customer due diligence (amount in EUR or local currency equivalent)	If the Wallet Provider Member has not undertaken customer due diligence (amount in EUR or local currency equivalent)
Maximum transaction amount	EUR 20.00
Minimum wallet balance	EUR 5.00	EUR 5.00
Maximum wallet balance	Unlimited	EUR 150.00
Minimum load value	Either EUR 5.00, or if the User Wallet has a minimum EUR 5.00 balance, there is no specified minimum load value	Either EUR 5.00, or if the User Wallet has a minimum EUR 5.00 balance, there is no specified minimum load value
Maximum load value	Unlimited	EUR 50.00
Maximum monthly flow control	Unlimited	EUR 150.000
Minimum payment value	Not specified	Not specified
Maximum payment value	EUR 20.00	EUR 20.00 up to maximum limit of EUR 150.00 (see maximum monthly wallet balance)
Minimum redemption value1	Not specified	Not specified
Maximum redemption value	Unlimited	EUR 50.00
Payment types	Goods and Services

Person to Person | Goods and Services |

Display the balance of a Fourdotzero User Wallet in local currency to six decimal points, see Functional Specification for details on layout.
Prevent a Fourdotzero User Wallet from being used if the balance is less than the Minimum wallet balance outlined in the Transaction and Limit Controls Table.2
Prevent a balance greater than the Maximum wallet balance outlined in the Transaction and Limits Controls Table from being loaded in a Fourdotzero User Wallet.

Allow a minimum load value of EUR 5.00 (or local currency equivalent), if the User Wallet is empty. If the User Wallet already has a minimum EUR 5.00 (or local currency equivalent) balance, there is no minimum load value.
Prevent a balance greater than the Maximum load value outlined in the Transaction and Limit Controls Table.

Members must support all the payment steps shown in Figure 1, this includes.

Payment initiation – Members must allow payments to be initiated by all User Wallet types and by automated processes as described in the Functional Specifications.

Payment checks – Members must check the payment is valid for both the payer to send and for the receiver to receive before settling the payment.

Payment settlement – Settlement finality is when the transaction is confirmed by Fourdotzero’s smart-contract, that is a tnx_id from the DLT for the transaction is available. Members must use this as the data source to calculate their End-user balances.

Payment initiation – Members must allow payments to be initiated by all User Wallet types and by automated processes as described in the Functional Specifications.

Payment checks – Members must check the payment is valid for both the payer to send and for the receiver to receive before settling the payment.

Payment settlement – Settlement finality is when the transaction is confirmed by Fourdotzero’s smart-contract, that is a tnx_id from the DLT for the transaction is available. Members must use this as the data source to calculate their End-user balances.

Members must conform to all the limits described in the Transaction and Limit Controls Table.

To enable a smooth End-user experience, Members must:

Where possible use QR codes to present and capture User Wallet addresses and make payments as described in the Functional Specifications.
Provide digital receipts to End-users for each transaction (e.g. load, payment, redemption) as described in the Functional Specifications.

There is no minimum redemption value. However, there is a minimum wallet balance as outlined in the Transaction and Limit Controls, unless the customer wishes to close their Fourdotzero User Wallet and redeem their balance in full.

Members must allow only a maximum redemption of the maximum redemption value outlined in the Transaction and Limit Controls.

Figure 2 – Core Payment Steps

Members must adhere to the receiver checks described in the Functional Specifications. This includes validating that the receiving End-user's address is correct, the receiving End-user is able to receive the sending currency and the amount is within the limits of any flow controls that apply – see Table 1.

Members must adhere to the authorisation process described in the Functional Specifications. In summary, Members must:

Be available to authorise transactions 24 hours a day, 7 days a week (availability 99.999%), or transmit a ‘service unavailable now’ response if they are unavailable, offline or otherwise experiencing technical difficulties.
Respond to an authorisation request within 2 seconds.
Allow at least two seconds for authorisation before timing out.
Add a User Wallet to an exception file if:
- The User Wallet is reported lost, stolen or counterfeit.
- The User Wallet is blocked or frozen.
- Member defined authorisation limits apply to the User Wallet e.g. by volume, value or both.
Be able to send, receive and report the following authorisation response codes to other Members and Fourdotzero, and communicate these to End-users as set out in the table below.

The User Wallet is reported lost, stolen or counterfeit.
The User Wallet is blocked or frozen.
Member defined authorisation limits apply to the User Wallet e.g. by volume, value or both.

**Table 2 – Validation Failure Codes and End-user Messages**

code	validation response	message to users	payer check	receiver check	refund check	funding check	defunding check	request to pay check	settlement
1	service unavailable now	Technical fault	x	x	x			x	x
2	insufficient funds	Payment or withdrawal takes a balance below minimum	x				x
3	payer exceeds transaction limit (by value)	Payment is above the maximum permitted	x		x
4	receiver exceeds transaction balance limit (by value)	User unable to receive funds		x	x	x
5	payer exceeds total transaction monthly limit (by value)	Payment exceeds the monthly limit	x
6	receiver exceeds the total transaction monthly limit (by value)	User unable to receive funds		x	x
7	invalid account (no such account)	Incorrect address		x	x			x
8	invalid wallet provider (no such provider)	Incorrect address		x	x			x
9	account closed	User unable to receive funds		x
10	account blocked by the wallet provider	User unable to receive funds		x
11	account blocked by wallet holder	User unable to receive funds		x
12	account suspended by wallet provider - lost	User unable to receive funds		x
13	account suspended by wallet provider - stolen	User unable to receive funds		x
14	account frozen	User unable to receive funds		x
15	account closed	User unable to send funds			x			x
16	account blocked by the wallet provider	User unable to send funds			x
17	account blocked by wallet holder	User unable to send funds			x
18	account suspended by wallet provider - lost	User unable to send funds			x
19	account suspended by wallet provider - stolen	User unable to send funds			x
20	account frozen	User unable to send funds			x
21	Fourdotzero system malfunction	Technical fault	x	x	x			x
22	failure after payment initiation	Technical fault							x
23	dlt failure	Technical fault							x
24	withdrawal amount above the non-KYC limit	Your requested amount exceeds the maximum single withdrawal limit					x

The Fourdotzero system is built on real-time payment technology, so transactions execute and settle individually in real time with immediate finality.

Ensure User Wallet balances are updated in no more than five seconds following settlement finality for immediate use in the User Wallet once a balance is updated
Issue receipts for payments sent and received in no more than 10 seconds after funds are transferred.
Undertake currency conversion at the point of transaction for payments denominated in a different currency to that of the sender’s User Wallet.
Display currency conversion rates clearly and transparently at the point of transaction, with a choice of foreign exchange providers provided by Fourdotzero.

Fourdotzero converts the transaction currency to the member’s settlement currency using the currency conversion rate.

The Fourdotzero system is built on real-time payment technology. Members receiving an authorisation request must respond within two seconds. There is no exception processing in the Fourdotzero system for recalls, reversals, partial authorisations and duplicate transactions.

The Fourdotzero system is based on the concept of ‘push’ payments, where the recipient provides their User Wallet details for the payer to ‘push’ the payment to their User Wallet. In this respect, Fourdotzero behaves like cash, bank transfers and other ‘push’ payments. There is no way to recall or reverse the payment once it has been initiated. And no guarantee of a refund once the payment has cleared and settled (refunds are at the discretion of the receiver).

3.11.1 Additional Mandatory Functions

Allow an End-user to request a refund from the End-user counterparty in the transaction by means outlined in the Functional Specifications. The counterparty may decide to accept, reject or ignore a refund request.
Allow an End-user to provide feedback on an End-user counterparty to their Wallet Provider in the transaction by means outlined in the Functional Specifications using the Reporting a User and Receiver Rating functions.

3.11.2 Dispute resolution

Implement an escalation process, whereby an End-user can flag that they have been unable to agree on a refund with an End-user counterparty.
Allow an End-user to report an End-user counterparty to their Wallet Provider Member.
Confirm receipt of a dispute from an End-user automatically on receipt.
Investigate if they receive three or more reports about their End-user customer.
Allow an End-user to rate an End-user counterparty.

Members may:

Investigate the escalation issue.
Identify patterns in their End-user’s behaviour.
Act if their End-user is not behaving in good faith.

4. Risk Management

This chapter details anti-financial crime and fraud prevention measures. It also sets rules around mitigating other types of risk, including business continuity and data security risks.

It covers:

How to gain a thorough understanding of their risks to apply proportionate and effective systems and controls
How to mitigate the risks identified
How to conduct customer due diligence
How to monitor business relationships and activity on a risk-sensitive basis
How and when to take a Compliance Action against a User Wallets
How and when to report suspicious activity, both internally and externally
How to keep good records
How to prevent fraud from a range of parties
How to mitigate business continuity risks
How to mitigate data security risks

4.1 Risk Assessment

4.2 Policies, Procedures and Controls

4.3 Money Laundering Reporting Officer (MLRO)

4.4 Customer due diligence

4.5 Monitoring

4.6 User Wallet Actions and Compliance Actions

4.7 Reporting Suspicious Activity

4.8 Record Keeping

4.9 Training

4.10 Fraud Prevention

4.11 Business Continuity

4.12 Data Security and Information Security

Undertake a risk assessment to identify, assess and understand the financial crime risks, specifically money laundering and terrorist financing risks they face, to inform the design for anti-money laundering and countering the financing of terrorism controls.
Regularly review their risk assessment to ensure it remains current.

Implement systems and controls to identify, assess, monitor and manage money laundering and terrorist financing risks, which best reflects their business, customers, products and services, knowledge of the market and so on.
Regularly review their policies, procedures and controls to ensure they remain current.

Appoint a money laundering reporting officer (MLRO) or nominate a named individual within their firm with the necessary knowledge, skills and experience to this position.

In cases where Members wish to allow End-users to do any of the following:

Exceed the maximum wallet balance as specified in Table 1 – Transaction Limits and Controls.
Exceed the maximum monthly flow controls as specified in Table 1 – Transaction Limits and Controls.
Make domestic as well as cross-border payments.
Use funds to make person-to-person transactions, or buy currency or quasi-cash in addition to purchasing goods or services.

Members must conduct customer due diligence in accordance with the provisions of the Fourdotzero Assurance Programme.

Conduct ongoing monitoring of its relationships with End-user customers on a risk-sensitive basis.
Monitor transactions to ensure that they are consistent with what the Member knows about the End-user customer.
Monitor transactions for unusual behaviours and for patterns associated with money laundering, such as layering.
Keep documents, data and information obtained in the customer due diligence context, including information about the purpose and intended nature of the business relationship, up to date.
Conduct enhanced monitoring in situations where the money laundering or terrorist financing risk associated with the End-user customer is higher. For example, new higher risk End-user customers are more closely monitored to confirm or amend expected account activity. Alert thresholds on monitoring systems are lower for PEPs and other higher-risk customers. Exceptions are escalated to more senior staff.
Regularly review End-user customers against sanctions lists appropriate to the nature, size and risk of its business.

Allow an End-user to report a User Wallet lost or stolen.
Enable an End-user to block their own User Wallet to prevent its use in sending and receiving transactions and to unblock their User Wallet provided it is in good order.
Confirm receipt of a lost/stolen report from an End-user automatically on receipt.
Prevent transactions that exceed the maximum transaction limit.
Conform with Table 1 – Transaction Limits and Controls and prevent any transactions that breach these limits and controls.
Take Compliance Actions against User Wallets that have valid reports of suspected fraud three times within a year (or fewer if required by law), for example authorised push-payment fraud when counterparties are tricked into sending funds.
Take Compliance Actions on User Wallets in the event they are taken over by a fraudster.
Take Compliance Actions on User Wallets that have ‘true positive’ matches against sanctions lists.

Set up and communicate an internal reporting procedure whereby staff can report instances of where they know, suspect or would have reasonable grounds for knowing or suspecting that an End-user is engaged in, or attempting, money laundering or terrorist financing.
Consider each report and determine whether it gives rise to knowledge or suspicion, or reasonable grounds for knowledge or suspicion, of money laundering or terrorist financing.
Report any transactions or activity that they know or suspect, or have reasonable grounds to know or suspect, may be linked to money laundering or terrorist financing or attempts to do the same, to the financial intelligence unit in their jurisdiction as soon as is reasonably practicable after the information is passed to them.

Keep adequate and compliant records of every aspect of its anti-financial crime regime.
Retain documents and information obtained to meet customer due diligence requirements and details of End-user transactions after the business relationship ends or after an occasional transaction for at least five years or in accordance with the time period stipulated in local law, whichever is the longer.
Keep records of all of the above for the same time period, where the Member is relied on by others to do customer due diligence checks.

Implement a training programme for staff to educate them on anti-money laundering, countering the financing of terrorist and anti-fraud appropriate to their job role or function.
Keep records of staff training.

Implement robust User Wallet security and access controls.
Allow End-users to report an End-user counterparty, identify patterns in their End-user's behaviour and act if End-users are not behaving in good faith, for example committing authorised push-payment fraud by tricking counterparties into sending funds to their User Wallets.
Have appropriate fraud prevention measures and tools in place.
Adapt anti-fraud controls to new fraud threats.
Collect aggregated and anonymised performance, transaction and fraud data on payments, currencies and jurisdictions for fraud prevention and reporting and pass this to Fourdotzero on request.
Handle account and End-user personal data securely.

Implement systems and controls to identify, assess, monitor and manage significant continuity events and disruptions, such as key system failures, loss of key data, loss of access to premises, loss of key persons.
Regularly review and test their business continuity systems and controls to ensure they remain current.

Build and maintain a secure network.
Protect sensitive account and End-user personal data.
Maintain a vulnerability management programme.
Implement strong access control measures.
Regularly monitor and test networks.
Maintain an information security policy.
Ensure that third-party suppliers comply with all of the above.

5. Enforcement Rights, Fees and Penalties

This chapter details the fees payable by End-users and by Members for use of the Fourdotzero service. It also details the schedule of penalties and charges for Members who violate Fourdotzero rules.

5.1 Enforcement Rights

5.2 Fees Payable by End-users

5.3 Fees Payable by Members

5.4 Schedule of Penalties and Charges

Through the Membership Agreement, Members consent to and provide Fourdotzero with enforcement rights against the Member to:

set and collect fees
prohibit collection of fees for Fourdotzero transactions except those fees allowed in the Rulebook
impose penalties and charges on Members for non-compliance with the requirements in the Fourdotzero Rulebook, Fourdotzero Functional Specifications and Fourdotzero Membership Agreement
suspend or terminate Members from the Fourdotzero network for breaches of these requirements or for other circumstances, such as events of default
require Members to take Compliance Actions against End-users and their accounts which Fourdotzero has good reason to believe are fraudulent or are being used for financial crime
require a Member to send the full balance of its operational DLT Wallet to Fourdotzero’s DLT Wallet in the event of suspension, termination, insolvency or other event where the Member is no longer able to operate on the Fourdotzero network and so is required to return all its customers’ funds to its customers.

Fees must be transparent to End-users both in the terms and conditions and in the User Wallet app. See Functional Specifications for notes on displaying fees and currency conversions to customers.

Currency conversion (FX) is provided in the system by third-party competitive players. Fourdotzero adds 0.x% fees to the rate provided by the third-party players.

Fees are paid in real-time at the point of transaction to a Member’s Fourdotzero fee DLT Wallet as follows:

Transaction type	Who pays?
Person to Person (eg bill split, gift, iou)	Payer
Person to Retailer (e.g. goods, service, utility)	Receiver
Refund	Payer of the refund

By default, all End-users are established as a Person. Receivers may change their designation to a Retailer for a specific Fourdotzero User Wallet if they are a business and wish to pay the Receiver fees.

Members must not charge any additional fees for Fourdotzero functions within their application.

Fees are distributed among the Wallet Provider Members who issued the User Wallets to End-users, the Wallet Developers who designed and developed the User Wallets, the Network Service Provider running the DLT Network and Fourdotzero who facilitates the operation of the payment network.

In cases where the Wallet Provider Member is also the Wallet Developer Member, this entity receives both provider and developer portions of the fee, if the Wallet Provider Member has completed customer due diligence on the End-user.

The system increases in value when Wallet Provider Members conduct customer due diligence on End-users, therefore for Wallet Provider Members this is rewarded in that transaction fees are paid 100% for completed customer due diligence on their End-user, and at 50% if not.

Fees are paid in real time at the point of transaction as follows:

	non-KYC’d End-users	KYC’d End-users

Sender wallet provider	0.x%/2	0.x%
Sender wallet developer	0.x%	0.x%
Fourdotzero	0.y%	0.y%
Network Provider	0.z%	0.z%
Receiver wallet provider	0.x%/2	0.x%
Receiver wallet developer	0.x%	0.x%

All Parties must maintain and register a fee DLT Wallet, this is in addition to the operational DLT Wallets held by Wallet Provider Members.

Fourdotzero imposes non-compliance penalties and charges on members that fail to comply with the requirements in the Fourdotzero Rulebook, Fourdotzero Functional Specifications and Fourdotzero Membership Agreement. Compliance breaches are assessed according to a traffic light system as follows:

Green – fully compliant
Amber – low-to-medium severity issue, or high severity issue with an agreed remediation plan in place
Red – high severity issue with no agreed remediation plan in place

Table 3 – Schedule of Non-Compliance Violations

Violation	Month	Consequence
Initial identification and confirmation of a violation	Month 1	Member receives written warning of the violation and notification of Fourdotzero action if the violation is not addressed satisfactorily within 30 calendar days.

If the compliance breach is of a serious nature, the Member may be moved from a ‘green’ to ‘amber’ Wallet Provider Member in the Fourdotzero published directory of Wallet Provider Members until the issue is resolved. The Member must commit to a resolution plan agreed with Fourdotzero to resolve the violation within 30 calendar days of notification. | | Unaddressed violationEither resolution plan not provided to FourdotzeroOr agreed resolution plan not followed within 30 calendar days of initial notification of violation | Month 2 | Member receives second written warning of the violation and notification of Fourdotzero action if the violation is not addressed satisfactorily within 60 calendar days of the second notification. If the compliance breach is of a serious nature, the Member may be moved from an 'amber’ to ‘red’ Wallet Provider Member in the Fourdotzero directory of Wallet Provider Members until the issue is resolved. Fourdotzero may also discontinue any incentives associated with services that have been identified as contributors to non-compliance, as well as suspend other incentives. | | Unaddressed violationEither resolution plan not provided to FourdotzeroOr agreed resolution plan not followed within 60 calendar days of initial notification of violation | Month 3 | Member is fined EUR 1,000 (or local currency equivalent) per month. If the compliance breach is of a serious nature, the Member may be moved from an 'amber’ to ‘red’ Wallet Provider Member in the Fourdotzero directory of Wallet Provider Members until the issue is resolved. Fourdotzero may also discontinue any incentives associated with services that have been identified as contributors to non-compliance, as well as suspend other incentives. | | Unaddressed violationEither resolution plan not provided to FourdotzeroOr agreed resolution plan not followed within 90 calendar days of initial notification of violation | Month 4 | Member fined EUR 1,500 (or local currency equivalent) per month. If the compliance breach is of a serious nature, the Member may be moved to a ‘red’ Wallet Provider Member in the Fourdotzero directory of Wallet Provider Members and have their Fourdotzero operating licence revoked. Fourdotzero may also discontinue any incentives associated with services that have been identified as contributors to non-compliance, as well as suspend other incentives. | | Unaddressed violationEither resolution plan not provided to FourdotzeroOr agreed resolution plan not followed within 120 calendar days of initial notification of violation | Month 5 and subsequent months | Member is fined EUR 2,000 (or local currency equivalent) per month. If the compliance breach is of a serious nature, the Member may be moved to a ‘red’ Wallet Provider Member in the Fourdotzero directory of Wallet Provider Members and have their Fourdotzero operating licence revoked. Fourdotzero may also discontinue any incentives associated with services that have been identified as contributors to non-compliance, as well as suspend other incentives. |

6 Data and Information Security

This chapter details data requirements when members communicate with each other, with Fourdotzero and with End-users. It also covers data protection and data security provisions.

Members are subject to the data protection and information security laws of the jurisdictions they operate in and must operate within the boundaries of these laws. The Fourdotzero Rulebook aims to standardise rules across the network as far as reasonable to enable Members to comply with the legal requirements of different jurisdictions. It does so by adopting rules consistent with widely used legislation and international practices such as Strong Customer Authentication.

6.1 Data Format

6.2 Data Protection

6.3 Data Security

6.4 Information Security

Members must adhere to data formats set out in the Fourdotzero Functional Specifications, especially for transaction processing, risk management and reporting operations.

Members must process personal data, which may include sensitive personal data, in accordance with its data protection policies and data protection legislation. Members are reminded that End-user data belongs to End-users and that Fourdotzero-based data must not be used, sold or otherwise commercialised without the permission of End-users. Any permission must be given freely without coercion, deception or as a prerequisite to access unrelated products or services by End-users.

Members must protect sensitive account and End-user personal data in accordance with their local legislation.

Members must conform to their local legislation for Information Security and must conform to the CIA – Confidentiality, Integrity, Authentication controls specified in the Functional Specification.

7 Member Eligibility and Application Process

Eligibility criteria for Network Service Provider Members are:

Ability to grow the Fourdotzero network, specifically the number of transactions, over a sustained period
Have a risk profile that poses no significant risk of financial crime on the Fourdotzero network
Commitment to Fourdotzero’s End-user pricing requirements and commitment to add no extra charges to their customers for Fourdotzero transactions
Commitment to adhere to the Rulebook through the Membership Agreement and conform to Fourdotzero functionality by following the Functional Specification

Eligibility criteria for Wallet Provider Members

Ability to grow the Fourdotzero network, specifically the number of transactions, over a sustained period
Have a risk profile that poses no significant risk of financial crime on the Fourdotzero network
Have KYC procedures and capabilities in place that meet regulatory requirements
Commitment to Fourdotzero’s End-user pricing requirements and commitment to add no extra charges to their customers for Fourdotzero transactions
Commitment to adhere to the Rulebook through the Membership Agreement and conform to Fourdotzero functionality by following the Functional Specification
Responsibility for complying with local laws, including registering with regulatory authorities and obtaining any required licencing to operate as a Wallet Provider Member

Eligibility criteria for Wallet Developer Members are

Use by a Wallet Provider Member in providing Fourdotzero User Wallets to the Wallet Provider Member
Commitment to Fourdotzero’s End-user pricing requirements and commitment to add no extra charges to their customers for Fourdotzero transactions
Commitment to adhere to the Rulebook through the Membership Agreement and conform to Fourdotzero functionality by following the Functional Specification

Fourdotzero is the sole decision maker in accepting or rejecting an application to become a Member. Fourdotzero is under no obligation to explain or justify its decisions to applicants.

The application process for all Member categories is:

Free format submission request to Fourdotzero to become a Member outlining the business reasons for the application and how the eligibility criteria are met
Due diligence by Fourdotzero - financial, technical, commercial – including applying the Assurance Programme process to the prospective Member
Decision (target within one month of the date of application).

Fourdotzero Member Assurance Programme Checklist

Has the Member conducted an up-to-date risk assessment of money laundering and terrorist financing risks in their business?
Does the Member have a policy statement for an anti-money laundering policy, controls and procedures?
Is it clear how the policy requires the Member’s exposure to the risks identified in the risk assessment to be managed?
Is the Member’s exposure to risk managed in proportion to the size and nature of the member’s business?
Which senior manager has approved the policies, controls and procedures?
Have the policies, controls and procedures been communicated to everyone in the organisation, including new joiners in the past 12 months?
Is there a record of updates to the policies, controls and procedures?
Are the Member’s situations documented that, by their nature, present a higher risk of money laundering or terrorist financing?
Are enhanced measures to address higher risk situations documented and implemented?
Does the Member have systems to identify and deal with suspicious activity?
Do the policies, controls, and procedures show how the Member
1. Conducts customer due diligence checks
2. Conducts ongoing monitoring
3. Identifies when a customer or beneficial owner is a politically exposed person (PEP) or a family member or close associate of a PEP
4. Has appointed a nominated officer to receive reports of suspicious activity from staff and make suspicious activity reports to the relevant authority (e.g. National Crime Agency in the UK)
5. Ensures staff and agents are trained to recognise money laundering and terrorist financing risks and understand what they should do to manage
6. Ensures staff and agents understand the importance of reporting suspicious activity to the nominated officer
7. Reviews and updates the business’s policies, controls and procedures
8. Maintains accurate, up-to-date record keeping and retention of records
9. Ensures customer identification and acceptance procedures reflect the risk characteristics of customers
10. Ensures additional controls are in place for approving transactions with PEPs
11. Ensures low risk situations are assessed and records retained to justify the assessment?

Conducts customer due diligence checks
Conducts ongoing monitoring
Identifies when a customer or beneficial owner is a politically exposed person (PEP) or a family member or close associate of a PEP
Has appointed a nominated officer to receive reports of suspicious activity from staff and make suspicious activity reports to the relevant authority (e.g. National Crime Agency in the UK)
Ensures staff and agents are trained to recognise money laundering and terrorist financing risks and understand what they should do to manage
Ensures staff and agents understand the importance of reporting suspicious activity to the nominated officer
Reviews and updates the business’s policies, controls and procedures
Maintains accurate, up-to-date record keeping and retention of records
Ensures customer identification and acceptance procedures reflect the risk characteristics of customers
Ensures additional controls are in place for approving transactions with PEPs
Ensures low risk situations are assessed and records retained to justify the assessment?

Glossary of Commonly Used Terms

Anti-Money Laundering refers to the laws, regulations and procedures to prevent money laundering, the process by which criminals attempt to conceal that their assets have come from crime.

Authentication in the context of Fourdotzero is the process of verifying that an End-user is who they say they are.

Authorisation in the context of Fourdotzero is the process of ensuring that an End-user is able (i.e. ‘authorised’) to conduct the transaction.

Beneficial Owner is the natural person(s) who ultimately owns or controls a customer and/or the natural person on whose behalf a transaction is being conducted. It also includes those persons who exercise ultimate effective control over a legal person or arrangement.

Blocking in the context of Fourdotzero is preventing a transaction from being completed or a User Wallet from being used.

Burning is the process to redeem and destroy Fourdotzero Tokens in order to withdraw funds from Fourdotzero’s bank Reserve Account in response to a withdrawal request.

Cash-In in the context of Fourdotzero is the process of loading a User Wallet with funds. This does not necessarily have to be with physical cash.

Cash-Out in the context of Fourdotzero is the process of redeeming funds from a User Wallet. This does not necessarily have to be with physical cash.

Countering the Financing of Terrorism refers to the laws, regulations and procedures to prevent the funding of terrorists, terrorist activities and terrorism.

Customer Due Diligence Customer due diligence describes measures Wallet Provider Members have to take to identify, and verify the identity of, customers and their beneficial owners (if a business). Customer due diligence also includes measures to obtain information on the purpose and intended nature of the business relationship. See Regulation 7 of the UK Money Laundering Regulations. ‘Customer due diligence’ and ‘Know Your Customer’ (KYC) are sometimes used interchangeably.

Enhanced Customer Due Diligence Regulations 33-35 of the UK Money Laundering Regulations require firms to apply additional, ‘enhanced’ customer due diligence measures in higher risk situations . Situations that present a higher risk of financial crime include End-users linked to higher risk countries or business sectors, or who have unnecessarily complex or opaque beneficial ownership structures, and transactions which are unusual, lack an obvious economic or lawful purpose, are complex, large or may lend themselves to anonymity.

Funding in the context of Fourdotzero is the process of loading a wallet with funds.

Identification in the context of Fourdotzero is the process of ascertaining the name of, and other relevant information about, an End-user customer or beneficial owner.

Know Your Customer is often abbreviated to ‘KYC’ and used as a synonym for Customer Due Diligence checks.

Minting is the process to create and issue Fourdotzero Tokens as a result of a bank deposit into Fourdotzero’s bank reserve.

Ongoing monitoring of business relationships is a requirement of UK Money Laundering Regulations. In the context of Fourdotzero, this means that the transactions performed by an End-user customer, and other aspects of their behaviour, are scrutinised throughout the course of their relationship with the Wallet Provider Member. The intention is to spot where a customer’s actions are inconsistent with what might be expected of a customer of that type, given what is known about their business, risk profile etc. Where the risk associated with the business relationship is increased, Wallet Provider Members must enhance their ongoing monitoring on a risk-sensitive basis. They must also update the information they hold on customers for AML purposes.

Payment in the context of Fourdotzero is the transfer of value between End-users (a sender and a receiver) in exchange for something of value, for example goods or services.

Redemption in the context of Fourdotzero is the process of withdrawing funds from a User Wallet.

Smart Contract is a script of executable code that triggers transactions on the DLT network.

Verification in the context of Fourdotzero is the process of checking the identities of End-users and, where applicable, their beneficial owners in the case of End-users who are business customers. This is usually done on the basis of documents or information obtained from a reliable source, which is independent of the person whose identity is being verified.

There is no minimum redemption value. However, there is a EUR 5.00 (or local currency equivalent) minimum balance requirement for a Fourdotzero Wallet, unless the customer wishes to close their Fourdotzero Wallet and redeem their balance in full.
To prevent fraud as a result of mass and automated Wallet creation, the minimum balance in a Fourdotzero Wallet to be usable must be maintained.