# Phygitals Pawn Shop Terms Of Service

## Phygitals Pawn Shop Terms of Service

**Last Updated:** October 25, 2025

**Entity:** Phygitals Inc\
**Registered Office (Agent):** 131 Continental Dr, Suite 305, Newark, DE 19713, USA\
**Principal Address:** 1111B S Governors Ave, Suite 34931, Dover, DE 19904, USA\
**Website:** [www.phygitals.com](https://www.phygitals.com/)\
**Email:** <hello@phygitals.com>

***

This document governs **pawn (secured loan)** transactions on Phygitals.\
It incorporates by reference the **State Availability & Licensing** page.\
Pawn services are available only where authorized and compliant.\
Counsel must finalize all state-specific ticketing/disclosures before launch.

***

### Key Sections (Summary)

See the full version for detailed provisions.

* **Eligibility, KYC/AML, and sanctions screening**
* **Nature of Service:** non-bank, non-recourse pawn loans via smart contract escrow
* **Loan Terms:** interest caps (apply lower of posted or statutory), fees (none unless permitted and disclosed)
* **Loan Period, Maturity, Redemption, Default, and Disposition**
* **State-Specific Rules:** surplus/deficiency, notices, waiting periods
* **Disclaimers, Liability Limits, and Arbitration** (AAA, Wilmington, DE)
* **Required Point-of-Sale Disclosures:** loan amount, rate/APR, term, total due, item, and consequences\
  \
  **Contact:** <hello@phygitals.com>

***

### Checkout Disclosures (Summary)

The following disclosures are displayed at checkout and on your pawn ticket or receipt, formatted to comply with state laws.

***

#### Escrow Period

* Your digital collectible will be securely held in **escrow (smart contract control)** during the loan period.
* You will not be able to trade, sell, or redeem the asset until the loan is fully repaid and confirmed on-chain.

***

#### Loan Terms *(Illustrative; subject to state caps and your checkout screen)*

* **Weekly:** Borrow up to **50% of FMV** with **5% interest**.
* **Monthly:** Borrow up to **35% of FMV** with **12% interest**.
* Interest is calculated on the **loan principal**, not the collateral value.
* Where state law imposes lower caps or different disclosures, those will control and be shown at checkout.

***

#### Loan Expiration & Claiming

* Your pawn expires after the selected period (**7 days for Weekly**, **30 days for Monthly**), as shown at checkout.
* Failure to repay the **Total Amount Due** by the due date/time results in **automatic claim of the collateral** by Phygitals’ smart contract, consistent with applicable law.
* Once claimed, **ownership is transferred and cannot be reversed**.
* No refund or compensation is provided for defaulted loans, except as required by state law (e.g., surplus accounting where applicable).

***

#### Smart Contract & Blockchain Risks

* All transactions execute **on-chain** and are **irreversible once confirmed**.
* Smart contracts, while audited, may contain **bugs or vulnerabilities**.
* **Network congestion or failures** may delay or prevent transactions; you are responsible for gas/transaction fees and ensuring timely submission.
* **Asset valuations (FMV)** are estimates and not guarantees of market value.
* Phygitals may **pause or modify functionality** for security or compliance reasons.

***

By confirming a pawn, you acknowledge that you have **read and understood** these disclosures and the full Pawn Terms, and **consent to electronic delivery of records**.

***