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 Email: [email protected]


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: [email protected]


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.


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