An ASIC hosting contract in Dubai is usually a 6-12 month commitment with four to six figures of hardware on the line. Signing the wrong contract is one of the most expensive mistakes a UAE miner can make. Before you put a pen to paper — or an e-signature — ask the facility these seven questions. The answers will tell you whether you are signing with a serious operator or a hopeful one.

Question 1 — Who owns the facility?

Ask for the legal entity name, trade licence number, and free zone or jurisdiction. A legitimate UAE facility will hand this over without hesitation. If the sales contact hedges or gives you only a trading name, stop there. You are dealing with a reseller at best or a middle-man at worst.

Verify the licence on the relevant free zone’s public registry (DMCC, RAK DAO, Fujairah Free Zone Authority). Five minutes of due diligence can save a lot of pain later.

Question 2 — What is the all-in fee, and what triggers extras?

Get the monthly fee, the one-time setup fee, and a list of every possible extra charge in writing. Common UAE extras that surprise miners:

• Power draw overage fees if your miner exceeds a kW band
• Bandwidth overage if you run monitoring or custom firmware
• Removal fees when you terminate
• VAT treatment — included or on top?
• Summer surcharges from June to September at some facilities

Question 3 — What is the uptime SLA and the compensation clause?

“99% uptime” means different things in different contracts. Pin it down:

• Measured how — per rig or facility-wide?
• Over what period — monthly or annually?
• What counts as downtime — includes planned maintenance?
• What is the compensation — credit, refund, or hash rate bonus?

A strong SLA has per-rig measurement over a monthly window with automatic credits. A weak one makes you argue for every refund.

Question 4 — Who pays if my hardware fails?

You almost always do. But clarify:

• Diagnostic fee for each failed rig
• Repair service rates per hash board, PSU, fan, control board
• Ship-out logistics if the rig needs external repair
• Whether the facility provides loaner hardware during repair

Some UAE facilities offer tiered service contracts (e.g. maintenance plan for a monthly add-on fee). Worth considering if you run 5+ rigs. We handle this ourselves through our repair workshop.

Question 5 — Can I exit early, and what does that cost?

Things change. BTC price crashes, you relocate, better hosting appears. Your exit clause should allow termination with reasonable notice (30-60 days) and a penalty no higher than one month’s fees. Watch for:

• Contracts that auto-renew unless you cancel 60+ days before expiry
• Penalties that exceed 2 months’ fees
• Clauses that tie equipment release to “all fees paid in full” (can trap hardware if you dispute a bill)

Question 6 — Who has access to my hardware?

Your rigs are physical assets worth tens of thousands of AED each. Confirm:

• Physical access policy — who can touch your hardware and under what circumstances
• Whether you can inspect the rigs during business hours (most facilities allow scheduled visits)
• Security cameras and access logs
• Insurance coverage if hardware is damaged or stolen

Question 7 — What happens if the facility shuts down?

Uncomfortable question, but essential. Facilities fail. Power contracts expire. Lease agreements lapse. Your contract should specify:

• How much advance notice they give if operations end
• Whether they assist with relocation to another facility
• Prepaid fees refund policy
• Equipment return logistics

A reputable operator will have thought about this and have a clear answer. An evasive answer is a warning sign.

Red flags that mean “do not sign”

• No physical walkthrough before signing
• Cash-only or unusually high upfront deposit
• Contract terms in English only (no Arabic bilingual version in UAE)
• Refusal to share references from current hosted clients
• Unusually low pricing that undercuts the market by 30%+ — usually a signal of power or cooling shortcuts

Frequently Asked Questions

How long should I make my first hosting contract?

Start with 6 months if possible. It gives you enough time to evaluate service quality before committing to a longer term at better rates.

Can I negotiate hosting fees in the UAE?

Yes, especially above 5 rigs. Most UAE facilities have unpublished bulk discounts of 8-15% off rack rates for committed 12-month contracts.

Should I insure my hardware separately?

Check what the facility’s insurance covers first. If it only covers facility-side incidents, consider a separate policy for 5-10% of hardware value per year.

What is a fair deposit amount?

1-2 months of hosting fees is standard. More than 3 months suggests the facility has cash flow issues.

Can I transfer my contract to another owner if I sell my rigs?

Usually yes with a small administrative fee. Check the contract for transfer clauses before you start advertising a sale.

Bottom line

A good UAE hosting contract is boring to read — short, specific, and covers the unfortunate scenarios honestly. If you walk through these seven questions and get clear answers, you are probably safe to sign. If anything is evasive, keep shopping. Talk to us if you want our contract reviewed — we will walk you through each clause.