> For the complete documentation index, see [llms.txt](https://docs.phygitals.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.phygitals.com/user-agreements/business-continuity.md). # Business Continuity What happens to your physical cards and digital assets in the event of Phygitals' insolvency, bankruptcy, or cessation of business operations. ### Overview Every digital collectible on Phygitals carries a right to redeem a real, professionally graded trading card that Phygitals owns and holds in vault inventory. We take this responsibility seriously. This page explains what happens to unredeemed cards, your redemption rights, and your digital assets in the event that Phygitals, Inc. ceases business operations, enters insolvency, or files for bankruptcy. It summarizes "Insolvency" in Section 15 of our [Terms of Service](/user-agreements/terms-of-service.md); if this page and the Terms of Service differ, the Terms of Service control. ### Ownership of Physical Cards Until a card is delivered to you after redemption, it is **Phygitals' property, not yours**. Key points: * **Phygitals owns unredeemed cards:** Physical cards in vault storage are owned by Phygitals, Inc. as its own inventory, held directly or through vault partners as bailees. Phygitals does not hold cards as a custodian or agent for users. Legal title passes to you only when a card is delivered to you after redemption (a "Burn Event" under Section 7.1 of the Terms of Service). * **No creditor protection:** Because unredeemed cards are Phygitals' assets, in an insolvency or bankruptcy they form part of Phygitals' estate and are available to its creditors. Setting a card aside for your digital collectible is an internal inventory control only and gives you no ownership, trust, lien, or security interest in the card. * **Your claim would generally be unsecured:** Any claim you have relating to an unredeemed card, including for failure to deliver it, will generally be treated as an unsecured claim, ranking behind Phygitals' secured creditors and creditors with priority under applicable law. You may recover only a fraction of the value of your claim, or nothing. * **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. ### Redemption Claim Window In the event of insolvency, bankruptcy, or the cessation of Phygitals' business operations, Phygitals will use commercially reasonable efforts, subject to bankruptcy court approval and the rights of creditors under applicable insolvency law, to facilitate a claim window during which holders can redeem their digital collectibles for the corresponding physical cards before any liquidation. **Phygitals makes no guarantee that a claim window will be available or that any particular holder will be able to redeem.** If a claim window is offered: * **Notification:** Phygitals intends to notify users via email and through the platform (to the extent it remains operational and permitted by law) with instructions on how to redeem. * **Claim period:** Phygitals intends the claim window to run for **three (3) months** from the date of notification, subject to court approval and applicable law. * **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 that you hold the digital collectible being redeemed before shipping any card. * **Structured process:** Phygitals will work with its vault partners to process redemptions in an orderly way, to the extent permitted in the proceeding. **Important:** Redemption rights are satisfied only by delivery of a physical card and are never paid out in cash or digital currency. If the specific card linked to your digital collectible is lost, damaged, or unavailable, Phygitals will deliver a comparable card of equal or greater fair market value where one is available, as described in Section 7.1 of the Terms of Service. ### 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 (cNFTs) held in your Solana wallet remain yours as recorded on the blockchain. Each one carries a right to redeem a physical card, not ownership of the card. If the platform shuts down, that right can only be exercised through a claim window, if one is offered as described above. * **Pending transactions:** Any pending marketplace transactions or open buyback offers will be cancelled and refunded where applicable. ### User Responsibilities To protect your redemption rights and funds 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, redeem as soon as possible. Redemption rights not exercised within any claim window may be lost. * **Redeem cards you want to hold:** If you want legal title to a card, redeem it. Only cards delivered to you are your property. * **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:** * **Support:**