Legal Term
Electricity Cost Overrun Clause in Crypto Mining Hosting Agreements
Legal Definition
A contractual provision in a cryptocurrency mining hosting agreement that allocates financial responsibility for electricity expenses that exceed a pre-agreed baseline or cap, typically detailing the calculation method, notification requirements, and payment terms for such overages.
In Plain English
A rule in a contract for a crypto mining facility that says who pays if the electricity bill suddenly goes way higher than expected, and how that extra cost gets split.
Example in a Contract
‘Electricity Overrun. The Host shall notify the Client within five (5) business days of determining that actual Power Costs for the preceding calendar month exceeded the Monthly Power Cap. The Client shall be solely responsible for 100% of such overrun amount, which shall be invoiced separately and payable within fifteen (15) days of receipt. The ‘Monthly Power Cap’ is defined as [insert fixed $/kWh or total $ amount]. For purposes of this clause, ‘Power Costs’ include all charges for energy consumption, demand charges, transmission, and related utility fees.’
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