Terms of Service (v1.6)

1. Service Provider & Regulatory Scope

You agree that Nodency Labs Ltd (The Protocol) is a software development company and non-custodial technology service provider, not a bank, custodian, or money transmitter.

• Non-Custodial: Nodency never holds your private keys. You are solely responsible for securing your device and digital identity (DID).
• Fiat Services: The Protocol does NOT provide regulated financial services (e.g., KASH-to-Fiat exchange). These services are exclusively provided by a third-party entity operating under the Licensed Partner Role, which holds the necessary government licenses.
• Protocol Liability: Nodency's liability is limited to the functioning of the immutable smart contract code (`NodencyEcosystemV1.sol`). We are not responsible for the Licensed Partner's operational failures or regulatory compliance.

2. Eligibility, KYC, and Identity Verification

Use of the platform requires you to be 18+ and subject to AML regulations based on your Verification Tier:

• Identity Signers: Your identity verification relies on signatures provided by Trusted Signers (`IDENTITY_SIGNER_ROLE`). You accept that this third party is responsible for the veracity of the KYC process.
• Agent Status: If you hold the `IdentityType.AGENT` status, you agree to comply with the terms of the Licensed Partner regarding customer data collection and record-keeping (AML/KYC data) for all fiat transactions you facilitate.

3. Agent-Facilitated Conversion & Risk

KASH-to-Fiat exchange is handled via the `facilitateKashToFiat` function, which logs conversion data for the Licensed Partner to process the fiat payment.

• Irreversibility: Once KASH is transferred to the Licensed Partner's address on-chain, the transaction is irreversible by the Protocol.
• Settlement Risk: The final receipt of fiat/e-money depends on the Licensed Partner's off-chain banking and processing systems, which may involve delays or errors outside of Nodency's control.
• Service Nodes (Agents): Agents are independent contractors or franchisees of the Licensed Partner. Nodency is not liable for their availability, local cash reserves, or the security of their physical premises.

4. Decentralized Lending (DeFi Risks)

By interacting with the Liquidity Engine (depositing, borrowing, repaying), you acknowledge the following risks inherent to decentralized finance:

• Liquidation Risk: If you take a loan, your collateral is subject to automatic liquidation (`LIQUIDATION_THRESHOLD` 125%) if its value drops too low relative to your debt. This is executed by the smart contract code and is irreversible.
• Interest Rate Risk: Borrowing and supply rates are governed by the Kinked Interest Rate Model and fluctuate dynamically based on reserve utilization, leading to variable costs and returns.
• Smart Contract Risk: While audited, the code remains subject to unforeseen vulnerabilities. You accept that exploiting a bug in the code may lead to loss of funds without recourse.

5. Fees, Rewards, and Arbitration

• Service Node Rewards: $KASH rewards are utility tokens, not investment contracts, equity, or salary. They are compensated for measurable service activity (`mintServiceNodeReward`).
• Protocol Fees: You are subject to fees (e.g., `treasuryFeeBP`, `productFee`) defined in the smart contract, which may be adjusted by the Community DAO.
• Dispute Resolution: Disputes must first be submitted to the Community Resolution DAO for jury review. Legal arbitration follows if resolution fails.