What specifically do you not like about their TOS?
Let me guess, maybe this one?
Quote
NICEHASH WALLET RISK
You acknowledge that there is risk associated with funds held on the NiceHash Wallet and that you have been fully informed and warned about it. You acknowledge that NiceHash Wallet is provided by NiceHash Wallet provider and not NiceHash. You acknowledge and agree that NiceHash shall not be responsible for any NiceHash Wallet providers services, including their accuracy, completeness, timeliness, validity, copyright compliance, legality, decency, quality or any other aspect thereof. NiceHash does not assume and shall not have any liability or responsibility to you or any other person or entity for any Hash Wallet providers services. Hash Wallet providers services and links thereto are provided solely as a convenience to you and you access and use them entirely at your own risk and subject to NiceHash Wallet providers terms and conditions. Since the NiceHash Wallet is a cryptocurrency wallet all funds held on it are entirely uninsured in contrast to the funds held on the bank account or other financial institutions which are insured.
You acknowledge that there is risk associated with funds held on the NiceHash Wallet and that you have been fully informed and warned about it. You acknowledge that NiceHash Wallet is provided by NiceHash Wallet provider and not NiceHash. You acknowledge and agree that NiceHash shall not be responsible for any NiceHash Wallet providers services, including their accuracy, completeness, timeliness, validity, copyright compliance, legality, decency, quality or any other aspect thereof. NiceHash does not assume and shall not have any liability or responsibility to you or any other person or entity for any Hash Wallet providers services. Hash Wallet providers services and links thereto are provided solely as a convenience to you and you access and use them entirely at your own risk and subject to NiceHash Wallet providers terms and conditions. Since the NiceHash Wallet is a cryptocurrency wallet all funds held on it are entirely uninsured in contrast to the funds held on the bank account or other financial institutions which are insured.
They are already using third party wallets huh!
Nicehash isn't a bank... your account and holdings on the service are not insured. This is common sense spelled out in TOS.
What is catchy is that in the event of another incident of Security Breach (Hopefully they don't hack themselves), NH now has no responsibility on it, its now a risk everyone's should be aware of.
Plain and simple. You have been warned. Lol,
Without exclusive access to your private keys, the coins do not really belong to you. Essentially, an online wallet service just gives you an IOU for some number of some type of coin. The hope is that the user may "cash in" the IOU and spend it as they please, making the online wallet effectively functionally equivalent to wallet clients where the user has full control over their private keys. Perhaps the service never breaks from this illusion, but perhaps they will. Either way, the IOU is just that, an IOU that is backed solely by the reputation of the issuer. Such is a risk one takes with anyone that offers a third-party wallet service, be that Mt. Gox, WeEx, BTC-e, NiceHash, Coinbase, etc.
Any wallet provider that claims to fully insure user balances in the event of a major hack or other incident is probably full of BS. These types of disclaimers are fairly standard. To be frank, even if NiceHash didn't make mention of the risk associated with storing BTC with them, that'd be no reason to trust them.