Bitcoin mining hosting agreement: what each clause should settle

Also called an ASIC hosting agreement, it is the contract between you, as the owner of the machines, and the host that powers, cools, connects and looks after them at its site. It usually sits alongside a quote or order form that carries the figures: the rate, the deposit, the setup fee, the minimum and the term. Read the two together: a figure in the quote means little if the agreement lets it change.

If the arrangement itself is new to you, how bitcoin mining hosting works follows one machine from the order to the first statement. If you are still comparing hosts, start with how to choose a bitcoin mining host, which vets the operator before the paperwork.

The agreement should name your machines individually, by model and serial number, and say plainly that they remain your property while they are on the host's site. That one schedule is what you point to if the host fails, sells the site or mixes up two customers' racks.

• A machine schedule: model, quantity and serial numbers, updated when a unit is swapped or returned.
• Ownership: the machines stay yours; the host has no right to sell, pledge or move them without your written consent.
• Receiving record: who inspects the delivery, what evidence is kept, and how long the host has to report damage.

At Proton, every pallet is opened, counted, serial-scanned and photographed on arrival, discrepancies are reported before anything is racked, and Proton will report any damage within the window set out in your hosting agreement.

This is the clause that decides your bill, so it should leave no room for interpretation. It should say what is measured, where the meter sits, how often you are billed and when payment is due.

• Metered draw: you pay for the kWh your machines actually pulled. Ask where the meter is and whether the statement shows kWh per machine.
• Nameplate: you pay for rated power, whether or not the machine ran. Ask what happens during downtime and curtailment.
• Flat per machine: one charge with a power assumption built in. Ask what the assumption is, in writing.

Look next for what can move the rate during the term: a pass-through of the host's own power price, an index, or a fixed rate. If the rate can change, the clause should say how, how often and with how much notice. At Proton, power is metered at the PDU and billed on actual draw, with the billing period and payment terms set out in the hosting agreement. To turn quotes on different bases into one comparable number, see what bitcoin mining hosting costs.

Ask what starts the clock: the date the agreement is signed, the date the machines arrive, or the date they hash. The agreement is the only place to close any gap between arrival and first share.

1. What date, or event, starts the hosting fee?
2. What start date does the host commit to, and is it a target or an obligation?
3. If capacity is not ready by then, do you get the deposit back, a credit, or the right to leave?
4. Who pays storage or extra freight if machines arrive before the rack is ready?

At Proton, the billing period and payment terms are set out in your hosting agreement, as are the deposit's refund terms. Proton's proposed locations have no confirmed hosting start date. During commissioning, a machine is not called live until it is holding rated hashrate at rated power.

How a hosting contract ends deserves as much attention as how it starts. The clause should cover the initial term, whether it renews automatically, how much notice either side must give, and what leaving early costs.

• Your exit: notice period, early-exit fee, and what happens to any prepayment and the deposit.
• The host's exit: on what grounds the host can end the agreement, with how much notice.
• Removal: who de-racks and packs the machines, at what cost, and how fast they are released to your carrier.
• Site changes: what happens if the host sells the site, loses its power contract or lease, or stops mining there, and whether it can move your machines elsewhere.

At Proton, the initial term, renewal and exit notice are set out in the hosting agreement, along with early-exit fees and deposit treatment. When machines leave, they are de-racked, palletized and staged for your carrier at a cost quoted in writing.

Many sites switch machines off for part of the year, to follow power prices, grid requests or the site's own limits. That is normal; an agreement that says nothing about it is not. The curtailment clause should answer four questions:

1. How many hours a year should you expect, and is that a cap or an estimate?
2. Are you billed for power during curtailment, or for anything else while the machines are off?
3. Is every event logged and shown on your statement?
4. If the site is paid for curtailing, who keeps that payment?

At Proton, expected curtailment hours depend on the site and are stated in your quote. You are not billed for power you do not draw, and curtailment events are logged and shown on your statement.

A hosting agreement may include an uptime commitment with credits when it is missed. If yours does, the clause should define uptime, say how it is measured and by whom, list what does not count (curtailment, your own pool's outages, maintenance windows), and say whether credits are applied automatically or only on request.

Whatever the commitment, you should be able to check it: ask for a statement showing each machine's kWh, uptime and hashrate for every period, so the three can be checked against each other and against your pool's own figures.

Proton's hosting page states no uptime figure. Its statement includes per-machine kWh, uptime and hashrate for the period, and per-machine monitoring comes with automated alerts.

A host's property insurance may cover its building and its own equipment but not machines owned by its customers. The insurance clause should say who insures your machines, against which risks, from the moment they leave the supplier until they are back with your carrier, and who files a claim.

The repairs clause should say which work is included in the hosting fee, how extra labour and parts are charged, how fast the host responds, and how warranty returns to the manufacturer are handled. If the host may change firmware or tune your machines, the clause should say it needs your written approval.

At Proton, who insures the machines, and against what, is set out in your hosting agreement, as are how labour and parts are charged and the response targets. A unit needing a manufacturer RMA is pulled, documented and returned in coordination with you, and firmware tuning happens only with your written approval.

Your machines should hash to your own pool account and pay out to an address only you control. The agreement should say so, say what access the host gets (read-only is enough for reporting), and say that you can change the pool or payout address yourself without a fee or the host's approval.

If payouts pass through the host's own pool account, the host is in the custody path, and its solvency becomes part of your risk. At Proton, payouts go straight from your pool account to your wallet; you hold the keys and the pool credentials, and Proton asks only for read-only pool access for reporting.

Not legal advice. Have a lawyer review any agreement before you sign, ideally one who works where the site is.

Tick each line only when the agreement, or the quote it refers to, answers it in writing.

1. Machines listed by model and serial number, and stated to remain your property.
2. Receiving: inspection, photos, and a stated window for reporting damage.
3. Billing basis: metered, nameplate or flat, where the meter sits, billing period and payment terms.
4. Rate changes: fixed or variable over the term, how, how often and with what notice.
5. Start: what starts the fee, the committed start date, and your remedy if capacity is late.
6. Deposit: the amount, what it secures, and exactly when and how it is refunded.
7. Setup and other one-time fees: what each one buys.
8. Minimum fleet or load, and what happens below it.
9. Term, renewal and notice, for you and for the host.
10. Early exit: fees, prepayment and deposit treatment.
11. Removal: who de-racks and ships, at what cost, and how fast.
12. Site sale, loss of power or lease, and relocation: notice, cost and your options.
13. Curtailment: expected hours, billing while off, logging, and who keeps any payment for curtailing.
14. Uptime: definition, measurement, exclusions and credits, if there is a commitment.
15. Statements: per-machine kWh, uptime and hashrate for every period.
16. Insurance: who insures the machines, against what, from transit to rack, and who claims.
17. Repairs: what is included, labour and parts charges, response targets, warranty returns.
18. Firmware and tuning: only with your written approval.
19. Pool and wallet: your accounts, your credentials, read-only access for the host.
20. Disputes: which law applies, where disputes are heard, and how notices are given.

Proton's hosting page describes how its quote and agreement are structured, and the examples above come from it. The figures and terms themselves are agreed in writing, capacity and timing are confirmed per site, in writing, and Proton's sites are planned.

Alberta, 160 kW: acquisition in progress. Join the waitlist.

Nothing here is an offer; only a signed agreement sets terms.

Every other location on the hosting page is proposed and marked Coming soon, with no confirmed hosting start date, and an enquiry does not reserve a slot. So hold Proton's hosting terms to this checklist like any other, and send the questions you want answered with your enquiry. To ask about a specific site, request a hosting quote.

Hosting at Proton is for hydro-capable machines bought through Proton. Capacity, timing, rate and terms are confirmed per site and set out in writing before anything ships. Nothing here is an offer; only a signed agreement sets terms.

A good fit if

• You are buying hydro-capable machines from the Proton catalogue and want them hosted.
• You want billing on metered draw, a per-machine statement and curtailment events logged.
• You want your hashrate on your own pool and payouts straight to your own wallet.

Not a fit if

• Your machines were bought elsewhere: hosting is only for machines bought through Proton.
• Your machines are air-cooled: hosting is for hydro-capable models only.
• You need a hosting start date now: proposed locations have no confirmed start date.
• You want an agreement with promised returns or a hashrate plan: neither is offered.