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K-Node Service Agreement

This comprehensive agreement defines the operational and legal framework for Nodency Liquidity Bridges, detailing compliance, technology requirements, and performance incentives.

Effective Date: November 20, 2025

1. Legal Status and Operational Relationship

1.1 Independent Contractor Status: You operate as an independent business owner (K-Node). You are NOT an employee, partner, or agent of Nodency Labs Ltd. You are responsible for all your own operating costs, permits, insurance, and tax liabilities.

1.2 Non-Exclusivity: You retain the right to conduct business with any other entity, including competing mobile money providers.

1.3 KYC/KYB Compliance: Activation requires full compliance with Tier 3 (Merchant) KYC/KYB requirements, including submission of valid Business Registration Certificates and Geo-Location verification.

2. Liquidity Obligations and Performance

  • Cash Parity Rule: You MUST exchange 1 cSTABLECOIN for 1 STABLECOIN (Physical Cash). Charging external facilitation fees or trading at a premium/discount is strictly prohibited.
  • Minimum Staked Float: You must maintain the minimum staked float (in $KASH or fiat equivalent) required by your Agent Tier to remain discoverable on the Liquidity Radar. This stake acts as your collateral.
  • Service Level Agreement (SLA): Accepted trades must be completed within 5 minutes of the request acceptance time. Frequent cancellations or timeouts will negatively impact your Trust Score and lead to de-listing.
  • Biometric Verification: For high-value cash-out requests, you must use the Nodency Business App to perform a Biometric Liveness Check on the customer before releasing cash (anti-fraud measure).

3. Rewards, Incentives, and Vesting

Proof of Liquidity Mining

You are compensated via variable $KASH Token Rewards based on the official Proof of Liquidity formula, which incentivizes network security and availability.

  • Zone Multiplier: Rewards are dynamically higher in remote, underserved regions (up to 3x base rate).
  • Velocity Bonus: Additional rewards are paid for higher transaction volume (Turnover).
Vesting and Lock-up T+30 Days (50% Lock)

To prevent "Wash Trading," rewards are subject to a 30-Day Vesting Period, with 50% locked for 6 months. This aligns Agent incentives with the long-term health of the protocol.

4. Critical Risks and Liability Limitations

4.1 Physical Security and Personal Risk

Nodency Labs is NOT responsible for any loss of physical float due to robbery, theft, or physical harm at your business premises. You must implement your own security measures.

4.2 Counterfeit Fraud Risk

The Escrow Smart Contract validates the digital asset transfer, not the physical currency exchanged. You are solely responsible for detecting and rejecting counterfeit banknotes. Loss due to counterfeit fiat is borne entirely by the K-Node.

4.3 Slashing Conditions (Protocol Penalties)

Malicious activity triggers automated penalties (slashing). This includes: confirmed Wash Trading, fraudulent dispute filing, and GPS spoofing (attempting to use the Zone Multiplier outside of the registered location). Slashing of the staked $KASH and permanent blacklisting of the DID are the final outcomes.

5. Technical Requirements and Data Privacy

  • Hardware Custody: You must use a dedicated device (Smartphone or Tablet) that supports a Secure Enclave (TEE) or equivalent hardware-backed key storage.
  • Data Privacy Consent: By activating, you consent to the public broadcasting of your Geo-Location (when online) and Active Float Balance for user discoverability.
  • Account Recovery: High-float accounts must utilize Corporate Multi-Sig or Hardware Key Backup (Iron Key) protocols for recovery, as simple social recovery is deemed insufficient for business assets.
  • Tax Transparency: Nodency Labs is legally required to report aggregated transaction volume and $KASH reward earnings to relevant tax authorities.