Business Continuity

What happens to your physical cards and digital assets in the event of Phygitals' insolvency, bankruptcy, or cessation of business operations.

Overview

Phygitals holds physical custody of real, professionally graded trading cards on behalf of their owners. We take this responsibility seriously. This page explains the procedures and protections in place to safeguard your physical assets in the event that Phygitals, Inc. ceases business operations, enters insolvency, or files for bankruptcy.

Asset Protection Principles

Your physical cards stored in Phygitals' vault network are your property, not Phygitals' property. Key protections include:

• Ownership separation: Physical cards held on your behalf are not assets of Phygitals, Inc. You retain full legal title and ownership of your physical cards at all times. Phygitals holds possession as custodial agent only.

• Creditor protection: Because your cards are held in custody — not owned by Phygitals — they are not subject to the claims of Phygitals' creditors in the event of insolvency or bankruptcy.

• Vault partner continuity: Physical cards are stored with independent vault partners (PSA, Fanatics, and Alt), each of which operates independently of Phygitals. These partners maintain their own insurance programs and operational continuity plans.

Physical Asset Return Procedure

In the event of insolvency, bankruptcy, or the cessation of Phygitals' business operations, we have established procedures to ensure the return of physical assets to their rightful owners:

• Notification: Users will receive prompt notification via email and through the platform (to the extent it remains operational) with detailed instructions on how to reclaim their physical cards.

• Reclamation period: Users will have three (3) months from the date of notification to initiate the return process and reclaim their physical assets.

• Shipping costs: Users are responsible for covering the cost of shipping and any associated taxes or customs duties required to deliver their cards. Phygitals will coordinate with vault partners to facilitate returns at reasonable shipping rates.

• Identity verification: To prevent unauthorized claims, Phygitals or its appointed agent will verify your identity and ownership of the claimed cards before processing any returns.

• Structured process: Phygitals will implement a structured process to identify, segregate, and return assets to their respective owners, working with our vault partners to ensure orderly distribution.

Important: Phygitals will not offer monetary reimbursement or compensation in lieu of returning physical assets, except where the return of a specific physical card is not feasible (e.g., if the card has been lost or damaged while in custody, in which case the applicable vault partner's insurance provisions would apply).

Digital Assets & Wallet Balances

In the event of business cessation, the treatment of digital assets and wallet balances is as follows:

• Wallet balances: Phygitals will make reasonable efforts to enable users to withdraw any remaining USDC, USDT, or SOL balances from their wallets before the platform is fully shut down. Users are strongly encouraged to withdraw their funds promptly upon receiving notice of business cessation.

• Digital collectibles: Digital collectibles are representations of ownership of physical cards. In the event of platform shutdown, the digital representations may cease to function, but your ownership of the underlying physical cards remains intact and can be exercised through the physical asset return procedure described above.

• Active pawn loans: If you have an active pawn loan at the time of business cessation, Phygitals will provide instructions for loan repayment and card reclamation. Users with active loans will be given a reasonable opportunity to repay and reclaim their collateralized cards.

• Pending transactions: Any pending marketplace transactions, open buyback offers, or unfilled Pack Parties will be cancelled and refunded where applicable.

User Responsibilities

To ensure you can reclaim your assets in any scenario, we recommend the following:

• Keep your contact information current: Ensure your email address and account information are always up to date so we can reach you with important notifications.

• Respond promptly: If you receive notification of a business cessation event, initiate the asset return process as soon as possible. Assets not claimed within the three-month reclamation period may be subject to applicable abandoned property laws.

• Maintain wallet access: Ensure you have access to your Phygitals wallet or connected external wallet so you can withdraw any digital currency balances.

Contact

If you have questions about business continuity, asset protection, or the procedures described on this page, please contact us:

• Legal: [email protected]

• Support: [email protected]