GENERAL TERMS OF USE

NAKA CARD

1 April 2026

1. BASICS

These General Terms of Use (“General Terms”) set forth the legal framework applicable when you obtain a NAKA Card. The General Terms aim to present the basic rights and obligations between you as a user of NAKA Card (“User”, “you”, “your”) and the NAKA Entity which issued NAKA Card (“NAKA”, “us”, “our”). The NAKA Entity issuing NAKA Cards:

These General Terms refer solely to the use of NAKA Card and do not regulate any other legal relations between you and us or between you and the NAKA Partners or third parties. Provision of other NAKA Services (e.g., using NAKA Pay App, participating in the NAKA Payment Network as a Merchant, etc.) is governed by separate general terms of use for a specific NAKA Service and other legal documents relating to that particular NAKA Service.

1.1 Your Agreement to these General Terms  

By using NAKA Card, you confirm that you have carefully read these General Terms, and you agree to be bound by them. If you do not agree with them, we recommend you cease using NAKA Card immediately. If you do not fully understand a provision of these General Terms, we recommend you consult us before starting to use the Card. We will be very pleased to answer all your questions and clarify any possible ambiguities. We are available at the e-mail address stated above. We recommend that you occasionally review these General Terms and the Personal Data Protection Notice NAKA Services, because these documents together form the agreement between you and us regarding the use of NAKA Card.

If you are a natural person, you are only allowed to use NAKA Card if you are older than 16 years. In case the legal age in your jurisdiction is more than 16 years, you hereby confirm that you have obtained the required consent from your legal guardian for using NAKA Card.

By accessing and using NAKA Card, you represent that you are financially and technically sophisticated enough to understand the inherent risks associated with using cryptographic and the Blockchain-based systems, and that you have a working knowledge of the usage and intricacies of the Crypto-Assets.

1.2 Changes to the General Terms

We reserve the right to amend these General Terms at any time and upon our sole discretion. In such cases, we will use reasonable efforts to provide notice of changes, such as by publishing the notice on our webpage. Alternatively, you may track the current version of these General Terms by the date of their effect stated at the top of the General Terms. We also recommend that you save a copy of the General Terms for future reference and comparison. By continuing to access or use NAKA Card, you confirm you accept the General Terms in their current version. It is your sole responsibility to review them from time to time to ensure you are acquainted with the applicable version of the General Terms, including any changes thereto. We recommend you check these General Terms each time before using NAKA Card to ensure that you understand what terms and conditions apply when you use NAKA Card.

1.3 Applicable Terms and Definitions

Terms and capitalized words not defined in the main text have the following meanings:

2. CARD FUNCTIONALITIES

You can manage your NAKA Card through a profile, created in NAKA Pay App. The use of NAKA Pay App is governed by NAKA’s separate NAKA Pay App Terms of use.

2.1 Card Issuance

To be issued and to use the Card, you as the Cardholder are required to generate a Smart Contract on the Blockchain and connect it to your Card by using NAKA Pay App. For doing so you must first download NAKA Pay App from the store (Google Play or Apple Store, based on the operational system used on your electronic device) and create a new wallet or add an existing one.

Please note that none of the NAKA Entities is the owner, custodian, or controller of the Smart Contracts used within NAKA Payment Network to facilitate transactions between recipients (e.g., the Merchants) and the Cardholders. The NAKA Entity that provides NAKA Card (as stated in section 1. BASICS above) does not offer to the Users: (i) custody or management of the Crypto-Assets, (ii) exchange between the Crypto-Assets or between the Crypto-Assets and the Fiat, (iii) transfers of the Crypto-Assets, as the Smart Contract is exclusively managed by the Cardholder, who alone holds the Private Key used to interact with the Smart Contract. The Cardholder is solely responsible for ensuring sufficient Crypto-Assets before using the Cards for payments, by transferring the Crypto-Assets from their chosen Digital Wallet to the Smart Contract linked to their NAKA Card. The Cardholder is also the only one who can authorize a transaction and initiate the transfer of the Crypto-Assets with their Card.

After creating a new user profile or adding an existing one in NAKA Pay App, you can select “Add Card” in the top left corner of the card display. You will then be prompted to add a virtual NAKA Card (or a virtual NAKA+ Card, which is governed by NAKA’s separate NAKA+ Card Terms of Use). Upon selecting “Add a virtual NAKA Card,” the card is generated and successfully linked to your Smart Contract. 

2.2 Card Management

The following features can be used to manage your Card:

2.2.1 Payment Card Settings

(a) Set/Change PIN: You have an option to set and/or change PIN associated with the Card.

(b) Daily limit: You can set an overall daily spending limit from USDt 10.00 to USDt 999.99. The default daily spending limit is set to USDt 999.99.

(c) Payment (single transaction) limit: You can set a single transaction limit from USDt 10.00 to USDt 999.99. The default single transaction limit is set to USDt 500.00.

(d) Block Card: If you lose or damage your Card, or the Card is stolen from you, you can block the Card by selecting the block feature. By doing so, you will no longer be able to unblock the Card, thus you will be required to obtain a new Card to be used with the existing Smart Contract. In such cases, you also have an option to “Request new card” on NAKA Pay App’s home screen to order a new Card. In such cases you will undergo the same linking procedure as described above.

(e) Freeze Card: You may use this feature to temporarily disable your Card for a selected period. You can reactivate the Card at any time, at which point it will immediately be enabled for further use.

(f) Show Card details: This functionality shows you the Cardholder’s name, the Card number, expiry date and CVV.

2.2.2 Top-up the Card

You can transfer your Crypto-Assets, stored with third-party service providers (e.g., Binance, MetaMask, Ledger) to the Smart Contract linked to your Card. By selecting “Top-up” within NAKA Pay App’s interface, you gain access to the information about the Crypto-Asset, the Blockchain network on which such Crypto-Asset is issued, the Blockchain deposit address, and a QR code containing the Blockchain deposit address. You also have an option to share the Blockchain deposit address via various messaging methods supported on your electronic device (e.g., email and messaging applications). When performing transactions in NAKA Pay App, you will have to pay the Gas, required by the Blockchain, as well as any associated fees from the third-party service provider(s), to facilitate the transfer of the Crypto-Assets to the Smart Contract. 

Upon completion of payments and Blockchain confirmations, the transferred Crypto-Assets will be deposited into the Smart Contract, and the corresponding amount balance will be updated on NAKA Pay App’s home screen. There are no restrictions on the number of top-ups or the amount of the Crypto-Assets that can be sent to the Smart Contract associated with your Card.

2.2.3 Withdrawal of Crypto-Assets

You can withdraw the Crypto-Assets from the Smart Contract which is connected to the Card. Upon selecting the “Withdraw” option within NAKA Pay App interface, you will be prompted to enter the desired withdrawal amount. Following this input, you will be notified that the withdrawal amount will be reserved for a duration of one (1) hour before becoming eligible for withdrawal. Next, you will be prompted to enter the Blockchain withdrawal address, with a reminder to ensure that the provided address can accept the Crypto-Asset that you are withdrawing. During the 1-hour reservation period, you maintain the option to cancel the withdrawal request by selecting “Cancel Withdraw”. However, once the 1-hour period elapses, you are required to confirm the withdrawal by clicking on “Complete Withdraw”. Only one withdrawal request can be initiated within a single hour, and you will be unable to make multiple withdrawal requests simultaneously.

2.2.4 Transaction History

This feature shows you the following transaction details relating to the Card: (i) amount in the Fiat, (ii) amount in the Crypto-Asset, (iii) exchange rate between the Fiat and the Crypto-Asset, (iv) the date and time of the transaction, (v) the Merchant’s name.

2.2.5 NAKA Locations

This feature shows you (and also allows you to search through) the locations of the Merchants that accept NAKA Cards and Crypto QR Payments as a means of payment.

2.3 Supported Crypto-Assets and Blockchains

IMPORTANT: Since all the services provided in relation to NAKA Card are associated with the Crypto-Assets, it is important to get acquainted with the supported Crypto-Assets, including the Blockchains on which the Crypto-Assets are issued. The list of the currently supported Crypto-Assets and Blockchains is available here. We recommend that you review these General Terms and/or the list of the supported Crypto-Assets and Blockchains before each use of NAKA Card in order to ensure you are acquainted with the current set up.

We reserve the right to occasionally change the list of the supported Crypto-Assets and/or Blockchains based on our business needs. In case of changes that require a migration of the Crypto-Assets from one Blockchain to another, we will inform you of such requirements and the associated consequences.

2.4 Identification Procedure

Before you can make payments with your NAKA Card, you must complete the Cardholder identification process. In accordance with the applicable AML/CTF Legislation, in particular the Travel Rule, we are required to verify your identity.

Identity verification is carried out by creating the Digital ID through NAKA Pay App. This process is provided by our verification partner, SumSub. Once your identity has been successfully verified, you will receive a confirmation email at your provided email address, after which you will be able to use NAKA Card for payments.

When making a payment with your NAKA Card, your Digital ID is automatically shared with the Merchant’s Acquirer as part of the transaction.

For detailed information on the Travel Rule Obligation and the manner in which the collected data is processed during the identification and verification process, please see the Personal Data Protection Notice NAKA Services.

2.5 Paying with Card

To initiate a payment, you present your NAKA Card to the Merchant’s Terminal supporting payments with that card. The payment request is signed with the Cardholder’s Private Key and countersigned by the Card Issuer, with both signatures verified by the deployed Smart Contract. Once validated, the Smart Contract transfers the Crypto-Assets to the Acquirer’s address designated for the receiving Merchant.

3. LIMITATIONS, RESTRICTIONS AND PROHIBITED USES

NAKA Card is a purely self-custodial solution, meaning that we do not - under any circumstances - have any custody, possession, or control over your Crypto-Assets or Private Keys associated with the Smart Contract which is linked to your Card.

You are solely responsible for keeping NAKA Card secure and should never share the Private Key or the Seed Phrase with anyone. We are not liable for any acts or omissions made by you that compromise or could compromise NAKA Card.

3.1 Prohibited Persons

By using NAKA Card you represent and warrant that you are not a prohibited person and are not acting for or on behalf of any prohibited person. Deemed as prohibited persons are persons:

(a) Based in - or being a citizen of North Korea, Iran, Syria, Afghanistan, Algeria, Angola, Burkina Faso, Chad, Congo (Kinshasa and Brazzaville), Comoros, Equatorial Guinea, Eswatini, Gabon, Gibraltar, Djibouti, Guinea-Bissau, Haiti, Yemen, South Sudan, Cambodia, Cameroon, Kenya, Liberia, Mali, Myanmar, Mozambique, Niger, Nigeria, Nicaragua, Papua New Guinea, Russia, Solomon Islands, Senegal, Tanzania, Trinidad and Tobago, Turkmenistan, Uganda, Vanuatu, Vietnam, Venezuela, Panama, Madagascar, Laos, China, South Africa, Jamaica, and Barbados;

(b) Listed in any Sanctions List;

(c) Person acting in the name of, or on behalf of, a natural person or a group of persons (through a legal entity or any other form of association), where any such person is included on any Sanctions List or is based in - or being a citizen in a jurisdiction from the point a) of this subsection;

(d) A government official of a jurisdiction with a high risk for money laundering and terrorism financing or a jurisdiction from the point (a) of this subsection;

(e) Prohibited by a decision of a public authority to participate in or conduct services performed by us.

3.2 Prohibited Uses

You agree that you will not violate any laws, contracts, or intellectual property, and are solely responsible for your own actions when using NAKA Card. You explicitly agree that you will not:

(a) Claim NAKA Card’s name or its content for the purpose of reselling it, confusing others, and deriving others’ goodwill;

(b) Use NAKA Card for commercial purposes inconsistent with these terms and conditions;

(c) Reverse engineer, duplicate, or disassemble any aspect of NAKA Card, or do anything that might bypass or circumvent security measures of NAKA Card employed;

(d) Use NAKA Card directly or indirectly, for or in connection with money laundering, terrorist financing, or other illicit financial or criminal activity, or in any way in connection with the violation of any law or regulation that applies to the Cardholder or us;

(e) Use NAKA Card with the proceeds of unlawful activity;

(f) Infringe or violate the intellectual property rights or any other rights of the operating NAKA Entity;

(g) Use NAKA Card directly or indirectly, for, on behalf of, for the benefit of, or in connection with prohibited persons, defined above;

(h) Use NAKA Card to purchase controlled substances without a pharmaceutical license;

(i) Use NAKA Card for unlawful: (i) purchase of guns, accessories, ammunition, and other weapons, (ii) purchase of illegal material, including but not limited to child pornography, (iii) gambling, betting, lotteries, sweepstakes, or games of chance, (iv) prostitution or escort services, (v) sale of counterfeit or "gray market" goods or services, (vi) political contributions, pawn shops, unlicensed auction sites, or (vii) ponzi or pyramid schemes, or other unfair or deceptive activities;

(j) Use NAKA Card for: (i) purchase of music, movies, software, or any other licensed materials without appropriate authorization, (ii) purchase of counterfeit goods, illegally imported or exported products, (iii) unauthorized purchase of brand name or designer products or services, and (iv) purchase of any other products or services that directly infringe or facilitate infringement upon the trademark, patent, copyright, trade secrets, proprietary or privacy rights of any third party;

(k) Use NAKA Card for intentionally promoting, supporting, or perpetrating violence or physical harm or hate toward any group or individual based on race, religion, disability, gender, sexual orientation, gender identity, national origin, immigration status, or any other legally protected characteristic under any law or regulation that applies to the Cardholder or us;

(l) Use NAKA Card: (i) with false, manipulated, inaccurate, or misleading information regarding the Cardholder’s identity, business entity, the nature of business, and any other information requested by the operating NAKA Entity, (ii) to facilitate transactions on behalf of another undisclosed person or entity or for products/services that were not disclosed during your verification procedure.

3.3 Indemnification

By agreeing to these General Terms you agree to the fullest extent permitted by the applicable law, to indemnify, defend, and hold us harmless, including all our respective past, present, and future employees, officers, directors, contractors, consultants, shareholders, service providers, subsidiaries, Affiliates, Agents, representatives, predecessors and successors, from and against all actual or alleged claims, damages, awards, judgments, losses, liabilities, obligations, taxes, penalties, interests, fees, expenses (including, without limitation, attorneys’ fees and expenses), and costs (including, without limitation, court costs, costs of settlement, and costs of pursuing indemnification and insurance), of every kind and nature whatsoever, whether known or unknown, foreseen or unforeseen, matured or unmatured, or suspected or unsuspected, that are caused by, arise out of or are related to your (i) use or misuse of NAKA Card, (ii) violation or breach of any of these General Terms or applicable law, (iii) violation of the rights of or obligations to a third party, including another user or third party, and (iv) negligence or willful misconduct. You agree to promptly inform us of any claims and cooperate with us in defending them.

3.4 Availability of NAKA Card

Use of NAKA Cards is in general possible 24/7 (but depending on the working hours of the individual Merchants). Nevertheless, the use of NAKA Card may be interrupted from time to time for any of several reasons, including, without limitation, the malfunction of equipment, periodic updating, maintenance, repair, preventing potential violations of these General Terms, or other actions that we, in our sole discretion, may elect to take.

4. RISKS AND LIMITATION OF LIABILITY

We are not an owner, custodian, or in control of the Blockchain networks used to provide the services related to NAKA Card. We are not responsible for and make no guarantees regarding the Blockchain operation and functionality. We also do not control the Smart Contracts that may be integral to your ability to complete transactions with NAKA Card. Since transactions conducted within NAKA Payment Network are directly linked to the Blockchain, they are irreversible, and we have no ability to reverse them on the Blockchain.

We are not an owner, custodian, or in control of the Smart Contract, which are linked to your NAKA Card, nor do we own, have custody over or control the Crypto-Assets on such Smart Contract. The Smart Contract is solely owned by you. You are also the only one who possesses the Private Key used to interact with the Smart Contract.

We do not take any action, nor do we participate in any way in the payment process conducted with your NAKA Card. We only supply an interface which you may use to manage your own NAKA Card and the Smart Contract connected with it. Since the Smart Contract is activated and controlled solely based on the action which you take with NAKA Card and/or your device (i.e., when you tap your NAKA Card to the Terminal) or via NAKA Pay App (e.g., for top-up, withdrawal and setting up limits), we cannot limit or block any of your actions in relation to the Smart Contract.

You understand that by providing NAKA Card, we are not: (i) operating a trading platform of the Crypto-Assets, (ii) exchanging the Crypto-Assets for the Fiat or other Crypto-Assets, nor (iii) are we placing and issuing the Crypto-Assets. Since transactions with the Smart Contract connected to the Cards and the Digital Wallets are performed by you exclusively, we are also not an owner nor custodian of the Smart Contract, the Cards, or your Digital Wallet(s). We also do not: (i) execute any order on your behalf, (ii) provide custody, administration or transfer services of your Crypto-Assets, or (iii) provide advice on your Crypto-Assets and portfolio management of your Crypto-Assets.

You are using NAKA Card at your own risk. NAKA Card is provided on an “as is” and “as available” basis and we make no warranty or representation and disclaim all responsibility for whether NAKA Card will meet your requirements.

Prices of the Crypto-Assets are subject to volatility and fluctuations. You acknowledge that you fully understand this and that you may lose money.

The Blockchain technologies and the Crypto-Assets are subject to continuous regulatory changes and scrutiny around the world, including but not limited to the AML/CTF Legislation. You acknowledge that NAKA Card, including its availability, could be impacted by one or more regulatory requirements.

There are risks associated with using the internet and the Blockchain based products, including, but not limited to, the risk associated with the hardware, software, and internet connections, the risk of malicious software introduction, and the risk that third-parties may obtain unauthorized access to your NAKA Card. You accept and acknowledge that we will not be responsible for any communication failures, disruptions, errors, distortions or delays you might experience when using NAKA Card or any Blockchain.

We are not responsible or liable for any loss of your Crypto-Assets and take no responsibility for losses, damages, or claims arising from: (i) your error, incorrectly constructed transactions, or mistyped addresses, (ii) server failures or data loss, (iii) unauthorized access or use, (iv) any unauthorized third-party activities, including without limitation the use of viruses, phishing, brute forcing or other cyber-attacks or (v) any issues with the Blockchain.

No advice or information, whether oral or obtained from us in any manner, will create any warranty or representation not expressly made herein. We accept the inherent security risks of providing information and dealing online over the internet and you will not hold us responsible for any breach of security.

5. INTELLECTUAL PROPERTY RIGHTS

The NAKA Card, including its “look and feel” (e.g., text, graphics, images, logos), proprietary content, information, and other materials, and all content and other materials contained therein, including, without limitation, logos and all designs, texts, graphics, pictures, data, software, other files, and the selection and arrangement thereof are our property.

You agree not to take any action(s) inconsistent with such ownership interests. We reserve all rights in connection with NAKA Card and its content, including, without limitation, the exclusive right to create derivative works.

NAKA Card’s name, logo, trademarks, and any of our products’ or services’ names, designs, logos, and slogans are and remain our intellectual property (or we have obtained a license from its rightful owner to use such intellectual property). As such, the intellectual property may not be copied, imitated, or used, in whole or in part, without our prior written permission in each instance. In addition, the “look and feel” of NAKA Card constitutes our service mark, trademark, or trade dress and may not be copied, imitated, or used, in whole or in part, without our prior written permission.

6. APPLICABLE FEES

Both provision of a virtual NAKA Card and its use are free of charge. 

You are only obliged to pay the Gas for topping-up the Crypto-Asset(s) to the Smart Contract. The amount of the Gas is not in any way determined by us, nor is it paid to us. The Gas payment is final and irreversible regardless of whether a successful transaction on the Blockchain occurs.

Transactions or operations in the Crypto-Assets may be considered tax events according to the legislation applicable to you and as such subject to taxation. These rules may be unclear or subject to change, and you are therefore encouraged to consult your tax or accounting adviser before engaging in the Crypto-Assets activities.

We do not provide any financial or tax advice related to the use of NAKA Card.

7. MISCELLANEOUS

These General Terms govern the use of NAKA Card in its entirety.

The processing of your Personal Data is governed by NAKA’s separate Personal Data Protection Notice NAKA Services.

You acknowledge that breaching any of the provisions of these General Terms may result in irreparable harm to us, in which case we reserve the right to seek monetary compensation.

NAKA Card is issued by NAKA SLV, incorporated under the laws of El Salvador. Those Cardholders who choose to use NAKA Card from locations outside El Salvador do so at their own initiative and are responsible for compliance with applicable local laws.

If any of the provisions of these General Terms proves void or invalid in any other way, this does not affect the validity and enforceability of the other provisions if they can also exist without the void or invalid provision. In this case, such void or invalid provision is considered separable from the other provisions, which are modified accordingly in the case of separation.

These General Terms are governed under the laws of El Salvador (to the highest extent allowed under the mandatory conflict of laws rules). In the case of any disputes arising out of or in connection with NAKA Card (including disputes in connection with the existence, validity or termination of these General Terms or any other obligation derived from or in connection with NAKA Card), the competent court will be determined in line with the applicable law.

For any questions or comments in connection with these General Terms, we are available at card.support@naka.com.

NAKA Team