These terms and conditions by NAKA GLOBAL Ltd., Letališka cesta 33f, 1000 Ljubljana, Republic of Slovenia (“Service Provider”) set forth the legal framework applicable to the NAKA application (hereinafter: “NAKA App”). NAKA App is owned and operated by the Service Provider. By using NAKA App, you confirm that you have read these terms and conditions, and you agree to be bound by them. If you do not agree with them, you may not use NAKA App. If you are a natural person, you are only allowed to use NAKA App if you are older than 15 years and provided that your legal guardians have consented to the use as legally required under the applicable legislation. By accessing and using the NAKA App you represent that you are financially and technically sophisticated enough to understand the inherent risks associated with using cryptographic and blockchain based systems, and that you have a working knowledge of the usage and intricacies of Crypto assets. The Service Provider reserves the right to change or modify these terms and conditions at any time and upon sole discretion. In such cases, the Service Provider will use reasonable efforts to provide notice of changes, such as by providing notice on the NAKA App or by updating the “Version” of these terms and conditions. By continuing to access or use NAKA App you confirm your acceptance of these terms and conditions. It is your sole responsibility to review them from time to time to view any changes and to ensure that you understand what terms and conditions apply when you access or use NAKA App.

Definitions

1. Acquirer

A legal entity or sole entrepreneur that acts as an intermediary between the Merchants and NAKA. It establishes a contractual relationship with the Merchants, provides them NAKA payment technology, exchanges Crypto Assets for other Crypto Assets or Fiat, and settles Merchants.

2. Blockchain Node

A device or a process that is part of a Blockchain and holds a complete or partial replica of records of all transactions on a Blockchain.

3. Blockchain

An information repository that keeps records of transactions and that is shared across, and synchronized between, a set of network nodes using a Consensus Mechanism.

4. Card Holder

Refers to any natural or legal person using NAKA App.

5. Consensus Mechanism

Rules and procedures by which an agreement is reached, among Blockchain Nodes, that a transaction is validated.

6. Crypto Asset

A digital representation of a value or of a right that can be transferred and stored electronically using blockchain.

7. Fiat

A government-issued currency that is not backed by a physical commodity but by the government that issued it.

8. Gas

A fee required to successfully conduct a transaction on Blockchain or execute a Smart Contract. It is paid to the Blockchain Nodes for ensuring the confirmation of Crypto Assets transaction. It is set by the Blockchain and fluctuates based on network traffic and transaction complexity.

9. MATIC

Polygon Blockchain native Crypto Asset. More information on MATIC is available on the following link: https://polygon.technology/matic-token.

10. Merchant Agreement

A contract between a Merchant and an Acquirer containing their respective rights, duties, and obligations for participation in NAKA.

11. Merchant

A legal entity or a sole entrepreneur who concludes the Merchant Agreement with the Acquirer to be included in the NAKA.

12. NAKA Card

A custodial or self-custodial card of Card Holders which is used to pay for goods and services with Crypto Assets at the Merchants in NAKA.

13. NAKA App

A self-custodial wallet, where Card Holder takes custody of its own Private Key.

14. Naka

A Blockchain-based payment network compatible with EMV and PCI DSS to facilitate transactions and settlements between Card Holders and Merchants through the utilization of Smart Contracts.

15. PIN

A personal identification number required to be entered to access NAKA App and complete transactions with NAKA Card.

16. Polygon

A “layer 2” Blockchain which enables faster Blockchain transactions and low transaction fees. More information on Polygon is available on the following link: https://polygon.technology/.

17. Private Key

A unique code that allows access and management of Crypto Assets to the Card Holder.

18. Sanctions List

Includes: 1) SDN List, Non-SDN List, FSE List, SSI List, NS-PLC List, CAPTA List, NS-MBS List, and NS-CMIC list, published by the Office of Foreign Assets Control of the U.S. Department of the Treasury. 2) Consolidated list of persons, groups, and entities subject to EU financial sanctions, published by the European Commission. 3) United Nations Security Council Consolidated List. 4) Consolidated list of financial sanctions targets, published by the Office of Financial Sanctions Implementation, part of HM Treasury.

19. Seed Phrase

A sequence of 12 random words that provide the information required to recover a lost or damaged NAKA App.

20. Smart Contract

A software program stored on a Blockchain, which will execute itself when a set of predetermined conditions are met and is meant to implement automated transactions between Card Holders and Merchants. The Administrator is not an owner, custodian, or in control of Smart Contracts used within NAKA.

21. USDt

The ticker for the Tether Crypto Asset which is backed by the United States dollar (USD). More information on USDt is available on the following link: https://tether.to/.