1. Acceptance of Terms

These Terms of Use ("Terms") constitute a legally binding agreement between you ("User," "you," "your") and YAP Technologies Inc. ("YAP," "we," "us," "our"), a Delaware corporation, governing your use of the YAP language learning application and related services (collectively, the "Services"). By accessing or using YAP, you acknowledge that you have read, understood, and agree to be bound by these Terms and our Privacy Policy, which is incorporated herein by reference. If you do not agree, you must not access or use the Services. These Terms are governed by the laws of the State of Delaware, without regard to conflict of laws principles.

2. Eligibility and Account Requirements

You must be at least eighteen (18) years of age to create an account and use the Services independently. Users under eighteen (but at least thirteen) may use the Services only with verifiable parental or legal guardian consent and supervision. Consent must be obtained through in-app methods such as credit card verification, government-issued ID upload, video consent calls, or signed digital consent forms, as required by applicable law (e.g., COPPA). YAP will verify and document consent prior to account activation and may require periodic re-verification. Users under thirteen (13) are not permitted to use the Services, and any such attempts will result in immediate denial of access. Cryptocurrency features, including token earning and wallet management, are restricted to users 18 and older. By creating an account, you represent and warrant that you meet these eligibility requirements and that all information provided during registration is accurate, current, and complete.

You are responsible for maintaining the confidentiality of your account credentials, including any private keys associated with your cryptocurrency wallet. YAP implements reasonable security measures, such as multi-factor authentication options and encryption protocols, but cannot recover lost private keys or wallet access credentials. You agree to notify us immediately of any unauthorized use of your account or any other security breach. In the event of a confirmed breach, YAP will notify affected users within 72 hours where required by law and take steps to mitigate harm, in compliance with applicable data breach notification laws. YAP's liability for security incidents shall be limited to instances of gross negligence or willful misconduct.

3. YAP Token System and Blockchain Rewards

The Services incorporate a token-based reward system utilizing the YAP token on the Sei blockchain. YAP tokens are non-transferable, have no monetary value outside the Services, and are not intended as investments. By participating in the token system, you acknowledge and agree to the following:

Token Earning and Rewards. 

You earn YAP tokens by completing language learning activities, achieving milestones, maintaining streaks, and participating in various features as detailed in our current token reward structure. Token rewards are subject to change at our discretion with at least thirty (30) days' advance notice via email or in-app notification; changes will not apply retroactively to already earned tokens. Tokens expire after twelve (12) months of account inactivity unless reactivated. Users may be required to report token earnings for tax purposes in accordance with IRS guidance on virtual currencies (e.g., Rev. Rul. 2019-24). YAP may implement know-your-customer (KYC) or anti-money laundering (AML) checks for high-volume token activity to comply with applicable laws.

Token Spending. 

YAP tokens may be spent within the application to access premium features, including but not limited to additional daily lessons, extended AI chat sessions, unit examinations, and special events. Fifty percent of spent tokens are burned, and fifty percent are allocated to the YAP treasury as programmatically enforced at the smart contract level.

Wallet Creation and Management. 

Your cryptocurrency wallet is created and managed through our third-party provider, Privy.io. By using the wallet, you acknowledge and agree to Privy.io's separate terms of service and privacy practices, which you must review and accept during setup. YAP is not responsible for the security, functionality, or availability of Privy.io services but will facilitate user support where possible. Data shared with Privy.io is limited to that necessary for wallet operations, as detailed in our Privacy Policy.

Dispute Resolution.

Any disputes arising from these Terms shall be resolved through binding arbitration in Delaware under the rules of the American Arbitration Association, except for small claims court matters. You waive the right to class actions.

4. Prohibited Conduct and Account Termination

You agree not to engage in any of the following prohibited activities:

Creating or operating bot accounts, using automated scripts, or employing any means to artificially inflate token earnings or manipulate the reward system. Operating shadow accounts or allowing others to use your account to circumvent eligibility requirements or earn tokens on behalf of another person. Attempting to exploit, hack, or manipulate the Services, smart contracts, or token system. Engaging in any activity that violates applicable laws, including but not limited to money laundering, fraud, or sanctions violations. Harassing, threatening, or engaging in harmful behavior toward other users through leaderboards or any other features.

We reserve the right to investigate suspected violations through internal reviews and may, in our sole discretion, immediately suspend or permanently terminate accounts engaged in prohibited conduct. Terminated accounts forfeit all accumulated tokens and access to the Services. You may appeal termination decisions within seven (7) days by submitting evidence to support@goyap.ai; YAP will review appeals and respond within fourteen (14) days, with decisions being final thereafter. YAP may terminate your access for violations of these Terms. Services are provided "as is" without warranties, express or implied, except as required by law.

5. Intellectual Property Rights

YAP retains all rights, title, and interest in and to the Services, including all content, technology, designs, trademarks, and other intellectual property. Your use of the Services grants you a limited, non-exclusive, non-transferable, revocable license to access and use the Services for personal, non-commercial purposes.

You grant YAP a worldwide, royalty-free, perpetual license to use, reproduce, modify, and display any content you generate within the Services for the purposes of operating, improving, and promoting the Services. This license excludes your personal data, which is governed by our Privacy Policy, and is limited to non-commercial uses by YAP.

6. Blockchain Data Permanence

You acknowledge that all learning progress and transaction data recorded on the Sei blockchain is immutable and permanent. Once recorded, this information cannot be modified or deleted, even upon account termination. While we can terminate access to our Services, we cannot remove data already recorded on the blockchain. To minimize privacy risks, YAP uses pseudonymization techniques (e.g., hashed identifiers) for blockchain data where feasible, and limits recorded information to essential transaction details. During onboarding, users will receive clear explanations of blockchain permanence and its privacy implications. For more details on data handling, refer to our Privacy Policy.

7. Disclaimers and Limitation of Liability

THE SERVICES ARE PROVIDED "AS IS" AND "AS AVAILABLE" WITHOUT WARRANTIES OF ANY KIND, WHETHER EXPRESS, IMPLIED, OR STATUTORY, EXCEPT TO THE EXTENT REQUIRED BY LAW. WE SPECIFICALLY DISCLAIM ALL IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND NON-INFRINGEMENT, BUT DO NOT DISCLAIM LIABILITY FOR GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.

TO THE MAXIMUM EXTENT PERMITTED BY LAW, YAP SHALL NOT BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES, INCLUDING BUT NOT LIMITED TO LOSS OF TOKENS, LOSS OF DATA, OR LOSS OF PROFITS, ARISING FROM YOUR USE OF THE SERVICES, EXCEPT IN CASES OF GROSS NEGLIGENCE OR WILLFUL MISCONDUCT. OUR TOTAL LIABILITY SHALL NOT EXCEED THE AMOUNT YOU HAVE PAID TO US IN THE TWELVE MONTHS PRECEDING THE CLAIM.

8. Indemnification

You agree to indemnify, defend, and hold harmless YAP and its officers, directors, employees, and agents from any claims, liabilities, damages, losses, and expenses, including reasonable attorneys' fees, arising from your willful violation of these Terms or infringement of any third-party rights. Indemnity obligations do not apply to claims resulting from YAP's gross negligence or willful misconduct.

9. Modifications to Terms and Services

We reserve the right to modify these Terms at any time. Material changes (defined as those affecting user rights, obligations, token mechanics, or fees) will be notified through the Services or via email at least thirty (30) days before taking effect, with a summary of changes provided. If you object to material changes, you may terminate your account and cease use prior to the effective date, with a pro-rated refund of any prepaid amounts if applicable. Your continued use of the Services after changes become effective constitutes acceptance of the revised Terms.

We may modify, suspend, or discontinue any aspect of the Services at any time, including token reward structures, feature availability, and pricing models, with reasonable notice (at least 30 days for material aspects) where practicable.

10. Dispute Resolution and Governing Law

These Terms shall be governed by and construed in accordance with the laws of the State of Delaware, without regard to its conflict of law provisions.

Any dispute arising from or relating to these Terms or the Services shall be resolved through binding arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association. The arbitration shall be conducted in Delaware, and judgment on the award may be entered in any court having jurisdiction. Costs of arbitration shall be shared equally unless otherwise determined by the arbitrator. You waive the right to class actions, except for small claims court matters.

11. General Provisions

These Terms constitute the entire agreement between you and YAP regarding the Services and supersede all prior agreements and understandings. If any provision of these Terms is found to be unenforceable, the remaining provisions shall continue in full force and effect. Our failure to enforce any right or provision shall not constitute a waiver of such right or provision. In the event of force majeure (e.g., natural disasters or cyberattacks beyond our control), performance may be excused. YAP may assign these Terms without notice; users may not assign without YAP's consent.

12. Contact Information

For questions about these Terms, please contact us at:
YAP Technologies Inc.
Email: support@goyap.ai