‘WADZ’, “Connect” & ‘Recovery Programme’: The fine print

The official Recovery Programme documentation (https://recovery-program.gitbook.io/recovery-program-docs/) promises investors that they will be able to recover previous crypto investments in Safir/Zeniq, Xera.Pro or XPRO.

Who is behind it?

The Recovery Programme is embedded in the Connect ecosystem, which describes itself as a ‘private hub’. Several providers are behind Connect: according to official information, the core partners are primarily BXPay (payment service), WADZ (DeFi liquidity platform), NodeK (blockchain mining hardware) and Centtura (e-commerce/messaging). Technically, this means that licence purchases are handled by Centtura, the liquidity strategy by WADZ (50/50 pools), and transactions are to be processed by BXPay companies (BankXcellerator APD). All parties involved point out that this is a non-custodial system (users retain full control over their wallets). However, this very structure also brings with it a high degree of personal responsibility and uncertainty: as always with DeFi offerings, it is important to be aware of the risk of total loss.

How the programme officially works

· Anyone who purchases a Recovery Licence can receive a fixed bonus of £29 and 50% commission points (CP) worth £149 by referring new users.

· There is no limit to the number of referrals that can be earned.

· Bonuses are credited immediately once the new purchase is completed via the referral link.

· Bonuses and commissions are payable after they have been credited, provided that the platform’s payout rules are complied with.

The Recovery Programme allows investors to surrender certain ‘legacy’ tokens (such as Homnifi Promo or T-Balance) that they had previously received. According to the analysis, the WADZ documents specifically address damage suffered from previous projects. The documents mention, for example, that Homnifi Promo and other alt tokens can be exchanged for new WADZ credit. This usually requires a special recovery licence. However, the exact exchange mechanism (quantity ratio, rates) remains unclear in publicly available sources.

Noteworthy points

· The fixed bonus of US$29 per referred licence purchase sounds moderate at first, but the CP (‘Commission Points’) of 50% of US$149 effectively means almost double the remuneration per referral. This leverage quickly increases the pressure to recruit as many new users as possible.

· No limit on referrals means that income depends primarily on how many new licence buyers can be recruited – a typical feature of MLM models.

· The qualification requirement of ‘at least 299 VP’ represents an entry barrier, the meaning of which is not further explained in the FAQ section: What exactly are ‘volume points’ and how are they acquired? Such ambiguity can lead to users investing or recruiting new people without fully understanding the scope of their obligations.

· Although bonuses are supposed to be payable, there is no indication of when or under what conditions exactly (e.g. minimum amounts, fees, waiting periods) payments will be made. ‘Following the platform’s standard withdrawal policies’ remains vague.

· The entire focus is on licence sales – not on the sale of products or real user value. This means that the primary source of income is the purchase of licences by new users, rather than a sustainable product or service economy.

The FAQs do not provide a clear timeline or mechanism for how and when the former investments (e.g. from Safir/Zeniq) will actually be ‘restored’. Instead, licence marketing is presented as access to the referral programme – suggesting that new funds are needed for the system to work.

Barriers, costs and obligations

The system is anything but simple: investors have to overcome a number of hurdles. Firstly, the licence costs for WADZ are not insignificant – they are staggered according to scope.

Secondly, you have to pay via the Centtura platform and usually already have ETH/USDC available in order to use the automatic 50/50 investment. Thirdly, there are numerous conditions: the WADZ rules stipulate that users must withdraw their accumulated earnings at least once a month. If they fail to do so, the service is automatically blocked. In addition, a licence typically expires as soon as three times the initial capital has been exhausted as profit – after that, a new licence must be purchased in order to continue generating income. There is no notice period or repayment guarantee.

Promise vs. reality

The promised returns essentially consist of the pro-rata Uniswap fees (yield farming). However, it remains questionable whether and when an investor will actually ‘get their money back’. Official WADZ documents emphasise that no profit guarantee is given. In addition, according to the information available so far, the credits acquired in the recovery variant are not tradable at all – they remain as an internal WADZ account. In practical terms, this means that they cannot simply be sold. Everything therefore depends on whether WADZ will generate sufficient fees in the future (and on a sustainable basis). Technical risks such as volatility, impermanent loss and smart contract errors are explicitly part of the offer. All in all, the chance of realistically compensating for earlier investments in Safir/Zeniq through this process seems extremely low. Investors should be aware that this is effectively a new betting event – those who have already lost their money are simply being offered a new, speculative investment.

Our conclusion

At first glance, the referral and bonus programme of the recovery programme appears legal and clearly structured, but on closer inspection, it raises several red flags. It gives the impression that the main incentive is to recruit new licence buyers rather than to provide a sustainable service or product. Bonuses are offered, but the conditions are not very transparent.

Note: This article is based on publicly available sources and editorial analysis. It is intended for public information and falls under the freedom of the press and freedom of expression in accordance with Art. 5 GG, Art. 10 ECHR and Art. 85 GDPR.

Source:

Official ‘Recovery Programme Documentation’ on GitBook – URL: https://recovery-program.gitbook.io/recovery-program-docs/

YouTube video: Special Q&A session on the Connect Ecosystem Projects – NodeK, Recovery Programme, WADZ & BXPay