Contract Guide

Bitcoin ATM Host Contract: What to Read Before You Sign

A plain-language breakdown of every significant term in a standard Bitcoin ATM host agreement and what each one means for your business.

The purpose of the host agreement

The host agreement is the contract between your business (the host location) and the Bitcoin ATM operator. It establishes what each party is responsible for, how you get paid, and what happens in various scenarios. A well-written host agreement protects both parties. Understanding the key terms before signing prevents surprises later.

Revenue share: the most important clause

The revenue share section specifies the percentage of transaction fees you receive as host earnings. This is typically expressed as a percentage of the operator's gross fee per transaction. Key things to verify:

• Is the percentage based on gross transaction fee or net after some deductions? It should always be gross fee.
• Is the percentage fixed for the term, or can the operator change it with notice? Fixed is better for the host.
• What is the payment schedule? Monthly is standard. Quarterly is acceptable. Less frequent than quarterly is unusual.
• How is payment delivered? Direct bank deposit is standard. Check is acceptable. Anything requiring you to log into a system to manually withdraw is a red flag.

Contract term and renewal

Standard terms are 3 years with automatic renewal for 1–2 year periods thereafter. Before signing, understand:

• How long is the initial term? 3 years is standard. Less than 1 year is unusual and may indicate the operator does not expect the location to perform well.
• How does renewal work? Most agreements automatically renew unless either party gives written notice 90–180 days before the end of the term. Miss that window and you are in for another full term.
• What are the early termination terms? Operators typically charge an early termination fee covering machine removal costs and lost profit projections. These fees can range from $500 to several thousand dollars. Know the number before you sign.

Exclusivity clause

Most host agreements include an exclusivity clause preventing you from allowing any competing Bitcoin ATM operators to place machines in your location during the contract term. This is standard and reasonable — the operator invested in your location based on the expectation of capturing the full transaction volume there. Understand the geographic scope of the exclusivity: it typically applies to your specific address, not to locations you may own elsewhere.

Host responsibilities

The agreement should clearly list what the host is and is not responsible for. A fair host agreement limits host responsibilities to:

• Maintaining the floor space (clear and accessible)
• Providing electrical outlet access
• Notifying the operator of visible machine issues within a defined timeframe (typically 24–48 hours)
• Allowing authorized technician access for scheduled maintenance

If the agreement attempts to make you responsible for customer complaints, cash handling, machine repairs, or any compliance function, these are negotiation points or red flags.

Hold-harmless and indemnification

This clause protects you from liability for what customers do using the ATM. It should clearly state that the operator indemnifies and holds the host harmless from any claims, losses, or liability arising from the operation of the machine or customer transactions. This is non-negotiable. Do not sign an agreement without it.

Insurance requirements

The agreement should specify that the operator carries commercial general liability insurance naming the host location as an additional insured. Request a certificate of insurance before the machine is installed. This protects you if the machine causes property damage or if a customer is injured while using it at your location.

What is typically negotiable

• Revenue share percentage: High-traffic locations have leverage to negotiate a higher share. Know your location's value before you accept the first offer.
• Contract term: First-time hosts sometimes negotiate a shorter initial term (1–2 years) with a renewal option to evaluate performance before committing long-term.
• Ramp-up period: Some operators offer reduced host fees or a grace period for the first 3–6 months while the machine builds transaction volume at a new location.
• Early termination fee amount: The existence of an early termination clause is not negotiable, but the dollar amount often is.