Vault & Storage

How your physical collectible cards are stored, insured, and managed in Phygitals' professional vault facilities.

Overview

Phygitals maintains custody of physical collectible cards on behalf of card owners in professional, climate-controlled vault facilities located in the United States. Each card on the platform is a real, authenticated physical item stored securely by one of our vault partners.

When you own a digital collectible on the Phygitals platform, you hold verifiable digital ownership of the corresponding physical card. Phygitals acts as custodian of the physical item, ensuring it is stored in optimal conditions, covered by our vault partners' insurance programs, and available for redemption when you choose to claim it.

Our vault infrastructure is designed to preserve the condition and value of your cards for as long as they remain on the platform. This document explains how our vault system works, who our storage partners are, and what protections are in place for your physical assets.

Vault Partners

Phygitals works with industry-leading vault partners to ensure the highest standards of card storage and security. All vault facilities are located in the United States. Our current vault partners include:

PSA Vault

PSA (Professional Sports Authenticator) is the world's largest and most trusted third-party trading card authentication and grading service. Cards stored through PSA's vault services benefit from their decades of expertise in handling and preserving collectible cards.

• PSA vault facilities are located in the United States.

• PSA vault facilities meet strict environmental and security standards for long-term collectible preservation.

• All cards stored with PSA are insured under PSA's insurance program.

Fanatics Vault

Fanatics is a global leader in licensed sports merchandise and collectibles. Fanatics' vault services provide secure, professional-grade storage for sports and trading cards.

• Fanatics vault facilities are located in the United States and are purpose-built for collectibles storage with enterprise-grade security.

• Cards stored with Fanatics benefit from their extensive logistics and fulfillment infrastructure.

• All cards stored with Fanatics are insured under Fanatics' insurance program.

Alt Vault

Alt (alt.xyz) is a collectibles platform providing vaulting, pricing data, and marketplace services. Alt also serves as a source for fair market value (FMV) data used across the Phygitals platform.

• Alt vault facilities are located in the United States.

• Alt provides real-time and historical pricing data used to establish FMV for cards on the platform.

• All cards stored with Alt are insured under Alt's insurance program.

Sealed Product Warehouse

In addition to our card vault partners, Phygitals operates a dedicated sealed product warehouse in Texas for the storage and fulfillment of sealed trading card products (e.g., booster boxes, elite trainer boxes, and other sealed items).

• The sealed warehouse is a Phygitals-operated facility separate from our card vault partners.

• Sealed products are stored in secure, climate-controlled conditions to preserve packaging integrity and product quality.

• Sealed items purchased or held on the platform are stored at this facility until claimed for physical delivery.

Storage Conditions

All vault facilities used by Phygitals maintain strict environmental controls to ensure the long-term preservation of collectible cards. Storage conditions include:

• Climate control: Temperature and humidity are maintained at optimal levels to prevent warping, fading, and degradation of card materials. Facilities operate within industry-standard ranges for paper and cardboard collectible preservation.

• Security: Vault facilities are equipped with 24/7 surveillance, access control systems, alarm systems, and on-site security personnel. Physical access is restricted to authorized personnel only.

• Fire protection: Facilities are equipped with fire suppression systems designed to protect stored goods, including clean agent suppression systems that minimize damage to collectibles.

• Inventory management: Each card is individually catalogued, photographed, and tracked in our inventory management system. The location of every card is documented and auditable.

• Handling protocols: Cards are handled by trained professionals using appropriate protective equipment (gloves, sleeves, cases) to prevent damage during intake, storage, and fulfillment.

Phygitals and its vault partners are committed to maintaining the condition of your cards at the level documented at the time of intake. Normal wear consistent with proper professional storage is not considered damage.

Insurance & Liability

All physical cards stored in Phygitals' vault facilities are covered by insurance provided through our vault partners - Alt, PSA, and Fanatics. Each vault partner maintains its own insurance program covering cards stored in their respective facilities. Insurance coverage is subject to the terms, conditions, exclusions, and limits of each vault partner's insurance policy. Phygitals itself does not act as an insurer; rather, insurance coverage is provided under the policies maintained by our vault partners.

• Coverage: Insurance covers loss or damage resulting from covered perils (which may include theft, fire, natural disasters, and other events) while cards are in vault custody, subject to the terms, conditions, and exclusions of each vault partner's insurance policy. Coverage extends to the fair market value of the card at the time of loss, as determined under the applicable vault partner's insurance policy.

• Fair market value: In the event of an insured loss, the value of the card will be determined based on the FMV data sourced from alt.xyz and other relevant market data at the time of the loss event.

• Claims process: If you believe your card has been lost or damaged while in vault custody, contact our team at [email protected]. We will investigate the claim and work with the applicable vault partner and their insurance providers to resolve it.

• Exclusions: Insurance does not cover loss of value due to market fluctuations, changes in grading standards, or conditions that existed prior to the card entering vault custody. Insurance coverage is subject to the terms and conditions of the applicable vault partner's insurance policies, which may vary by vault partner.

• Third-party insurance: Because insurance is provided by our vault partners rather than by Phygitals directly, Phygitals does not guarantee coverage for any specific loss. In the event of a dispute regarding insurance coverage, the terms of the vault partner's insurance policy shall govern.

• Insurance limitations: Insurance is subject to deductibles, exclusions, per-incident limits, and aggregate limits under each vault partner's policy. Coverage may not be sufficient to cover the full replacement value of all stored items in the event of a catastrophic loss. Users are encouraged to consider supplemental insurance for high-value items if available through third-party providers.

Limitation of liability: While Phygitals takes every reasonable precaution to protect your cards, our total liability for any card in custody is limited to the fair market value of that card as determined by available market data. Phygitals is not liable for consequential, incidental, or speculative damages. Please refer to our Terms of Service for complete liability provisions.

How Cards Enter the Platform

Physical cards enter the Phygitals platform through the following channels:

• User submissions: Card owners can submit their physical cards to be digitized on the platform. The submission process involves shipping your cards to one of our vault facilities, where they are authenticated, catalogued, photographed, and converted into digital collectibles. See our Submit Cards documentation for detailed instructions.

• Partner intake: Cards may enter the platform through arrangements with vault partners, grading companies, or other collectibles businesses that integrate with the Phygitals platform.

• Pack openings: Some cards enter circulation through Phygitals' pack opening events, where sealed products are opened on-platform and the resulting cards are digitized and distributed. See our Pack Opening & Buyback documentation for details.

Regardless of how a card enters the platform, every card undergoes the same authentication and cataloguing process to ensure that all digital collectibles on the marketplace are backed by genuine, verified physical cards.

Fair Market Value

Fair market value (FMV) for cards on the Phygitals platform is sourced from alt.xyz, a leading collectibles data provider. FMV data is used for the following purposes:

• Reference pricing: FMV is displayed on card detail pages to give buyers and sellers a market-based reference point for pricing decisions.

• Insurance valuation: FMV data is used to determine the value of cards in the event of an insurance claim.

• Platform analytics: Aggregate FMV data is used to provide portfolio valuation tools and market insights to users.

FMV data is provided for informational purposes and represents estimated market values based on recent sales data, historical trends, and comparable transactions. FMV does not guarantee that a card will sell at the indicated price. Actual marketplace prices are determined by buyers and sellers through peer-to-peer transactions.

FMV data is updated regularly but may not reflect real-time market conditions. Phygitals does not guarantee the accuracy or completeness of FMV data and is not responsible for pricing decisions made based on FMV estimates.

Important: FMV data is provided "as is" from third-party sources. Phygitals is not responsible for any losses, liquidations, missed opportunities, or other consequences resulting from inaccurate, delayed, or manipulated FMV data.

Custody Model

Phygitals operates a custodial model for physical collectible cards. Phygitals acts as custodial agent on behalf of card owners. You retain full legal title and ownership of your physical cards at all times. Phygitals holds physical possession as custodian on your behalf and maintains internal records identifying each card's owner. Key aspects of our custody model include:

• Digital ownership: Ownership of each card is represented by a digital collectible secured in our digital custody system. The holder of the digital collectible is recognized as the owner of the corresponding physical card.

• Physical custody: Phygitals (through its vault partners) maintains physical possession of the cards. Cards remain in vault storage until the owner initiates a redemption (claim) to receive the physical card.

• Separation of ownership and custody: Ownership (digital) and custody (physical vault) are separate. You own your card as represented by the digital collectible; Phygitals custodies the physical item on your behalf.

• Transferability: When a digital collectible is sold or transferred, custody rights for the corresponding physical card transfer automatically to the new owner. No physical movement of the card is required for trading.

• Redemption rights: The owner of a digital collectible may initiate a claim at any time to receive the underlying physical card, subject to applicable fees, shipping requirements, and the terms outlined in our Shipping & Redemption policy.

• Custodial protections: As custodial agent, Phygitals maintains internal records identifying each card and its corresponding owner. Physical cards held on your behalf are not assets of Phygitals, Inc. and are not subject to the claims of Phygitals' creditors in the event of insolvency. For details on what happens to your cards in the event of business cessation, see our Business Continuity page.

This custodial model enables frictionless digital trading of physical collectibles while ensuring that every digital asset is backed 1:1 by an authentic physical card in secure storage.

Accessing Your Cards

You can access and manage your vaulted cards through the Phygitals platform at any time:

• View your collection: All cards you own are visible in your Phygitals wallet. Each card includes high-resolution images, metadata, grading information, FMV, and vault status.

• Trade your cards: List cards for sale on the marketplace, accept offers, or transfer digital collectibles to other wallets.

• Claim physical cards: Initiate a claim to have one or more physical cards shipped to you. Claims are subject to the requirements outlined in our Shipping & Redemption policy.

Phygitals does not restrict your ability to view, trade, or claim your cards during normal platform operations. In the event of scheduled maintenance, security incidents, or other operational disruptions, temporary restrictions may be applied. We will communicate any such restrictions through the platform and our official communication channels.

Contact

If you have questions about vault storage, insurance, custody, or any other aspect of how your physical cards are managed, please contact us:

• Support: [email protected]

• Legal: [email protected]

This policy may be updated periodically. Material changes will be communicated through the platform. Continued use of the platform following any updates constitutes acceptance of the revised policy.