Modak Terms and Conditions

Effective Date: july 16, 2026

PLEASE READ THESE TERMS CAREFULLY. By registering for or using the Modak platform (the “Service”), you agree to be bound by these Terms and Conditions (“Terms”) and all applicable laws and regulations. If you do not agree with these Terms, you must not use Modak or any of its services. These Terms form a binding legal agreement between you and Modak Communities Operating Holdings Inc. (“Modak,” “we,” “us,” or “our”). Modak provides a financial technology platform designed for parents and their minor children/teens to manage money, banking services, financial education, rewards, and other family management features available through the Service. These Terms describe your rights and obligations when using Modak.

By accepting these Terms, you also agree to Modak’s Privacy Policy and any additional terms and policies referenced herein or presented to you within the Service (such as the MBX Policy, Cardholder Agreement, or promotional terms), which are incorporated by reference. If you are a parent or legal guardian, you agree to these Terms on your own behalf and on behalf of the minor child/teen user of the Service. You represent that you are the parent or legal guardian of any child account you create and that you consent to your child’s use of the Service under these Terms.

We may update or change these Terms from time to time. If we make material changes, we will notify you by posting the revised Terms on our website or through the app and updating the “Effective Date” above. Continued use of the Service after changes are posted constitutes your acceptance of the revised Terms. If you do not agree to the updated Terms, you must stop using Modak and close your account.

Definitions

Parties & Banking Relationship

“Bank Partner” – The FDIC-insured financial institution identified in the applicable Deposit Account Agreement that provides the underlying deposit accounts and issues the Modak Card. Modak itself is not a bank but provides technology services that facilitate access to banking services through the Bank Partner.

“Parent Account” – A primary Modak account established by an adult parent or legal guardian (the “Parent Accountholder”). The Parent Account is used to fund and manage one or more linked Child Accounts and to oversee the Child User’s use of the Service. The Parent Accountholder is the legally responsible account owner for all funds and transactions in the Parent Account and any linked Child Accounts.

“Co-Parent” or “Additional Parent” – An adult who has been invited by the Parent Accountholder and approved by Modak to access designated Child Account(s). A Co-Parent receives only the permissions granted through the Service and does not become the legal owner of the Parent Account, Child Account, or funds held within those accounts unless otherwise expressly provided by applicable law or the governing account documentation. The Parent Accountholder remains the primary account owner and is ultimately responsible for the account relationship unless otherwise expressly provided by applicable law or the governing account documentation.

“Child Account” – A sub-account established by the Parent Accountholder for the benefit of a Child User. The Parent Accountholder is the legal owner of the Child Account and all funds held within it, and the Child User is an authorized user of the account and associated Modak Card. Each Child Account includes a virtual Modak Card. A physical Modak Card may also be issued in accordance with the applicable subscription plan , promotional offering, and any required initial funding requirements.

“Modak Card” or “Card” – A Visa debit card issued for use with the Modak platform. The Card is issued by Modak’s Bank Partner in connection with your Modak account. It allows the Parent or Child (as authorized) to spend funds from the Modak account balance wherever Visa is accepted, subject to the controls and limits established by the Parent and these Terms.

Subscription plans

“MoBasic” – Modak’s standard subscription plan  available without a recurring subscription fee. MoBasic provides access to core banking functionality and other features designated by Modak from time to time.

“MoSilver” – An optional paid subscription plan  offered by Modak that provides access to certain enhanced family management features, parental tools, educational content, and other promotional subscription benefits designated by Modak and described within the Service.

“MoGold” – Modak’s highest paid subscription plan  offering premium family management features, rewards, fee-related benefits, and other promotional subscription benefits designated by Modak and described within the Service.

“MoLegacy” – A grandfathered subscription plan  available only to certain existing customers who enrolled before Modak introduced its current subscription plan  structure. MoLegacy is not available for new enrollment and may be modified, replaced, or discontinued upon any notice required by applicable law or these Terms.

Rewards & Promotional Benefits

“MBX” – Modak’s in-app reward points (also called “Mobucks”) that users can earn through eligible activities (for example, completing chores/challenges, using certain app features, or making purchases). MBX points may be redeemed for certain rewards or benefits, subject to eligibility requirements and the terms of the applicable promotional offering.  Only users who have an active Modak Card (i.e., an open Modak account with a linked card) can redeem MBX for monetary rewards (conversion to U.S. dollars). One hundred (100) MBX is currently equivalent to $1.00 USD; however, this conversion rate is promotional, may change at any time, and is not guaranteed. Additional rules governing MBX are contained in the MBX Rewards Program section below and Modak’s MBX Policy.

“Boost” – A promotional reward funded by Modak that may be offered to eligible subscription members. Boost is not interest, is not an annual percentage yield (APY), and is not compounded.

“Qualifying Card Transactions” – Completed purchase transactions made using an eligible Child User’s Modak Card that have fully settled through the applicable payment network and satisfy any additional eligibility requirements established by Modak for promotional cashback offers.

Qualifying Card Transactions do not include, without limitation:

• Purchases of prepaid or open-loop gift cards;
• Peer-to-peer transfers or person-to-person payments;
• Cash withdrawals;
• Quasi-cash transactions (including money transfer services or similar transactions);
• Fees, interest, or account adjustments;
• Pending or authorization-only transactions that have not fully settled;
• Reversed, refunded, or disputed transactions; or
• Any transaction that Modak determines, in its sole discretion, is ineligible for promotional cashback.

“Cashback” – A promotional reward funded by Modak that may be offered on eligible Qualifying Card Transactions made using a Child User’s Modak Card. Cashback does not apply to purchases made using a Parent Accountholder’s Modak Card or other Parent Account transactions.

Cashback is calculated and applied only after a Qualifying Card Transaction has fully settled. Promotional cashback rates may vary by subscription plan , promotion, or other eligibility criteria, are determined by Modak, and are not guaranteed. Modak reserves the right, in its sole discretion, to determine whether a transaction qualifies for cashback.

“Checkout Fee Coverage” – A promotional benefit through which Modak may cover certain fees associated with eligible external payment methods for eligible users, subject to the limits and conditions described in these Terms.

General

“Services” – The suite of services provided by Modak, including the Modak mobile application and website, Parent and Child Accounts, the MBX rewards system, educational content, and any associated banking features (such as the Modak Card, deposit accounts, spending and savings tools, payment services, and related financial services provided through our Bank Partner). Certain features, functionality, rewards, and family management tools—including chore management, allowance scheduling, co-parenting, advanced parental controls, enhanced analytics, premium subscription features, and other promotional benefits—are available only to eligible users based on the applicable subscription plan  or promotional offering.

Other Definitions – In these Terms, “you” and “your” refer to the users of the Service, which include both the Parent Accountholder and any Child User, as applicable. “We,” “us,” and “our” refer to Modak and, where appropriate, its affiliates and service providers. “Platform” refers to the Modak mobile application, website, and related technology through which the Services are provided. Additional definitions may be provided elsewhere in these Terms or in related agreements, including the Cardholder Agreement.

Eligibility and Account Creation

Parent Eligibility: To create a Modak Parent Account, you must be at least 18 years old (or the age of majority in your state of residence) and legally capable of entering into a binding contract. By opening a Parent Account, you represent and warrant that you meet these eligibility requirements. You also agree to provide true, accurate, and current information during signup, including your legal name, address, email, phone number, date of birth, Social Security number (for identity verification), and any other information we or our Bank Partner request for know-your-customer (“KYC”) compliance. We may ask for supporting documentation (e.g. government-issued ID) to verify your identity or the identity of your child, as required by law. Federal law notice: Important information about procedures for opening a new account – to help the government fight terrorism and money laundering, federal law requires all financial institutions to obtain, verify, and record information identifying each person who opens an account. You consent to this verification process and acknowledge that account opening is subject to successful completion of identity verification.

Child Eligibility: Modak is designed for use by minors (children and teenagers typically between the ages of 6 and 17) under the supervision of a parent or legal guardian. Children under 18 may not use the Service without a Parent’s agreement and oversight. The Parent Accountholder must invite or create a profile for the Child User. The Parent is responsible for providing accurate information about the Child (such as name and date of birth) and for ensuring that the child uses the Service in compliance with these Terms. By creating a Child Account, you, the Parent, represent and warrant that (a) you are the lawful parent or guardian of the child, (b) you authorize us to collect and use the child’s personal information as needed to provide the Service (consistent with our Privacy Policy), and (c) you will supervise the child’s use of the Service at all times. If the child is under 13, you are providing verifiable parental consent for Modak to provide our Services to your child, in compliance with the Children’s Online Privacy Protection Act (COPPA). We do not knowingly allow a minor to use Modak without parental consent and involvement.

Account Activation: When you sign up for Modak, you will create credentials (such as a password, and possibly a PIN or biometric login) for secure access. You are responsible for maintaining the confidentiality of your login credentials. Do not share your password or PIN with anyone outside your family, and promptly update your password if you suspect it has been compromised. The Parent should also ensure their child understands not to share their own app password or Card PIN except with the Parent. All activities that occur under your credentials or your accounts are your responsibility. If you notice unauthorized access or suspect that someone else knows your login or PIN, you must contact Modak immediately and change the compromised credentials.

We may, at our discretion, refuse to open an account, limit the number of Child Accounts per Parent, or close accounts that do not meet our eligibility or compliance requirements. Each family is generally limited to one Parent Account, which may have one or more linked Child Accounts. The Parent Accountholder may also invite one or more eligible Co-Parents to access designated Child Account(s), subject to the eligibility requirements and limitations described in these Terms. The Parent Accountholder remains the legal owner of the Parent Account, all linked Child Accounts, and all funds held within those accounts.

Account Structure: Parent and Child Accounts

Parent Accountholder Responsibilities

The Parent Accountholder is the legal owner of the Parent Account, all linked Child Accounts, and all funds held within those accounts. The Parent Accountholder is also the contract holder of the Modak Card and is financially and legally responsible for the Parent Account and any linked Child Accounts.

As the legal account holder, the Parent Accountholder is responsible for supervising each Child User’s use of the Service, including monitoring account activity, educating the Child User on proper use of the Service and Card, and accepting responsibility for any fees, charges, or consequences resulting from the Child User’s transactions or misuse. The Parent Accountholder agrees that each Child User is using the Services and any Modak Card under the Parent Accountholder’s supervision and control.

The Parent Accountholder controls the creation of Child Accounts, the funding of those accounts, and the settings that govern each Child User’s spending. The Parent can view transaction history, receive activity notifications, establish spending controls (see Parental Controls below), and generally has full visibility into and control over each linked Child Account through the Parent dashboard.

The Parent Accountholder may close a Child Account at any time by following Modak’s account closure procedures. Subject to availability, the Parent may also reinvite or reopen a Child Account. When a Child User reaches the age of 18 (or the applicable age of majority), Modak may require the account to be transitioned or closed. At that time, the individual may become eligible to open an account in their own name, subject to Modak’s eligibility requirements and available products.

Co-Parent Access and Responsibilities

Modak may allow the Parent Accountholder to invite another eligible adult (“Co-Parent”) to participate in managing one or more designated Child Accounts. Co-Parent access is an optional feature and may only be available under certain membership plans or product offerings. All Co-Parents must successfully complete any identity verification, security, eligibility, compliance, or other onboarding requirements established by Modak and its Bank Partner before access is granted. Acceptance of a Co-Parent invitation is subject to Modak’s approval, and Modak is not obligated to approve any requested Co-Parent.

The Parent Accountholder determines which Child Account(s) a Co-Parent may access. A Co-Parent will only have access to the Child Account(s) specifically designated by the Parent Accountholder and will not automatically receive access to all Child Accounts associated with the Parent Account.

Subject to the permissions available within the Service, a Co-Parent may view account information, monitor transactions, receive notifications, transfer funds to designated Child Accounts, manage chores or allowances, approve or assign activities, communicate with the Child User, and perform other features made available by Modak. Available permissions may change over time and may vary by membership tier.

A Co-Parent is an authorized user of the Service only. Co-Parent access does not transfer ownership of the Parent Account, any Child Account, or any funds held within those accounts, and does not create a joint account or joint ownership relationship. Certain banking functions, account maintenance activities, compliance actions, and ownership rights remain available only to the Parent Accountholder.

Each Co-Parent is responsible for maintaining the confidentiality of their login credentials and for all actions taken using their account credentials while accessing the Service. The Parent Accountholder remains responsible for ensuring they have the legal authority to invite a Co-Parent and grant access to a Child Account.

The Parent Accountholder may revoke a Co-Parent’s access at any time through the Service or by contacting Modak Support. Modak may suspend, restrict, or terminate a Co-Parent’s access at any time for security, fraud prevention, legal, regulatory, operational, or compliance reasons. Revoking Co-Parent access does not close the Parent Account or any Child Account and does not affect ownership of the funds held within those accounts.

Modak provides Co-Parent functionality solely as a technology feature to facilitate family financial management. Modak does not verify custody rights, parental authority, guardianship, or other legal relationships between users and is not responsible for resolving disputes between parents, guardians, Co-Parents, or other authorized adults regarding custody, parenting authority, spending decisions, funding, chores, allowances, permissions, or other family matters. Users are solely responsible for resolving such disputes outside of the Service.

Child User Responsibilities: A Child Account is for the personal use of the minor it is assigned to. The child must use their account and Card responsibly and in accordance with these Terms and any rules set by their Parent. The Child must also protect their login and Card just as the Parent must – for example, keeping their app password and Card PIN secret (only sharing with the Parent as needed). Children should understand that the Modak Card is real money and should be used cautiously and only with parental approval. Any funds in the Child Account are under the Parent’s ownership; the child’s use is a privilege that can be revoked by the Parent or by Modak for misuse. The Child is not allowed to independently add money from external sources, link external accounts, or incur overdrafts/credit. The Child should report any lost card or suspicious account activity to the Parent immediately so that the Parent can take action (like locking the card or contacting support).

Multiple Children: If you have multiple children, Modak allows you to create a Child Account for each eligible minor. Each Child Account will have its own card (if ordered) and settings, but all will be tied to the same Parent Account for funding. As Parent, you must manage each Child Account separately within the app (assign chores, set allowances, etc., per child). These Terms apply to each such Child Account and Child User. You agree to manage the Service for each child in accordance with these Terms.

Account Ownership of Funds: All funds loaded into Modak (whether in the Parent’s funding account or allocated into a Child’s sub-account) are considered funds of the Parent Accountholder, legally held at the Bank Partner on behalf of the Parent. The Child does not have independent ownership rights to the funds; any spending by the Child is authorized under the Parent’s oversight. Modak (the company) does not hold your funds itself – instead, your funds are held in an account at our Bank Partner for your benefit. Those funds may be pooled together with funds of other Modak users in one or more omnibus accounts at the bank, but with records that clearly denote your balance as separate. You always retain legal ownership of your funds, up to the balance shown in your Modak app.

FDIC Insurance: Because funds in Modak are held by the Bank Partner identified in the applicable Deposit Account Agreement, your money is FDIC insured through that bank up to the standard maximum deposit insurance amount (currently $250,000 per depositor). This insurance protects your money in the event the Bank Partner fails (goes into receivership). Note that FDIC insurance does not protect against losses due to your own transactions or someone fraudulently using your account; it only applies if the bank itself cannot return your funds due to its insolvency. Also be aware that if you have other accounts in your name at the same Bank Partner outside of Modak, those balances may be aggregated with your Modak funds for FDIC insurance limits. Modak will not be liable for any uninsured amount above FDIC limits in the unlikely event of bank failure.

Not a Bank: Modak is not a bank or financial institution; it is a fintech platform that partners with a bank to provide banking services. Opening a Modak account does not create a depository account directly with Modak, but rather an account held by the Bank Partner for your benefit, accessed through the Modak app. Your Modak Card is issued by the Bank Partner pursuant to its terms (see Card Issuance below). Modak provides the technology, user interface, and additional features (like chores, allowances, subscription features and rewards), but Modak is not itself FDIC-insured. All banking services provided to you (including holding funds and processing payments) are actually performed by the Bank Partner or other regulated financial service providers. You agree that Modak is acting as a service provider or agent to facilitate your relationship with the Bank Partner. Certain additional agreements (such as a Cardholder Agreement or Account Agreement with the Bank Partner) may also apply to you; we will provide those to you when you sign up or when you activate features, and you agree to abide by those terms as well. In the event of a conflict between these Terms and the Bank Partner’s terms (e.g., Cardholder Agreement), typically the Bank Partner’s terms will govern the aspects of the service related to banking operations, while these Terms govern the overall platform and non-banking features.

Chores and Allowance Features

Optional Promotional Matches: Modak may offer promotional matching incentives related to chore payments or allowance transfers. Such matches are promotional, not wages, not interest, and not guaranteed. Eligibility, caps, and restrictions will be disclosed within the Service and may be modified or discontinued at any time.

Chore Management and Allowance features are optional family management tools available to eligible subscription members, depending on the applicable subscription plan . These features are designed to help parents teach financial responsibility by organizing household responsibilities, managing allowance payments, and transferring funds to a Child Account as part of a family’s financial education experience. Availability may vary by subscription plan  and may change over time. These tools are provided for your convenience and to facilitate arrangements between you and your child; Modak is not responsible for enforcing chore completion or allowance payments, which remain at the Parent’s discretion.

Chore Management: Where available as part of the applicable subscription plan, parents may use the Modak app to create lists of tasks or chores for their children, assign them with due dates or frequencies, and optionally attach rewards (such as a monetary payment or MBX points) for completion. Common uses of this feature include setting daily or weekly responsibilities (e.g. cleaning room, doing homework, etc.) and tracking whether the child completes them. The specifics of chores (what they are, when they’re due, the criteria for completion) are entirely set by the Parent. The Child can view their assigned chores

in the app and mark them as completed (often subject to Parent approval). Parents are responsible for verifying that a chore was truly completed to their satisfaction. The Modak app may send reminders or notifications about chores, but Modak does not physically verify any chore performance. This feature is meant as an educational and organizational tool only.

Allowance Payments: Where available as part of your subscription plan , Parents may use Modak to schedule allowance payments to their children. An allowance is typically a recurring transfer of money from the Parent Account to the Child Account (for the child to spend or save), which can be contingent on chores or given unconditionally, depending on the Parent’s preference. In the app, a Parent may set up an automatic weekly or monthly allowance amount. You understand that by setting an automated allowance, you are authorizing Modak (and the Bank Partner) to periodically transfer funds from your Parent Account to your Child’s Account according to the schedule you set. You can modify or cancel an allowance at any time before it executes. If an allowance is tied to chore completion in the app, the system may either require manual approval from the Parent once chores are marked done, or automatically pay out based on settings – in all cases, the Parent retains the ability to override or adjust payments. No allowance will be paid unless there are sufficient funds in the Parent Account at the time of the scheduled transfer. If funds are insufficient, the allowance may be skipped or delayed (Modak is not obligated to advance funds). We recommend monitoring your Parent Account balance to ensure allowance payments go through.

Parent-Child Agreement: Any arrangement regarding chores and allowance is essentially an agreement between the parent and child. Modak only provides the mechanism to record chores and move funds. The Parent can choose to pay an allowance regardless of chores, or require chores for payment – those parenting decisions are outside the scope of these Terms. Modak does not mandate any particular approach. Disputes about chores or allowance (e.g., a child believes they earned money that the parent hasn’t transferred) are to be resolved between parent and child; Modak will not arbitrate familial disputes. That said, if there is a technical error in the app (for instance, a chore completed but the allowance transfer failed), Modak will assist in resolving any software issues.

No Wages or Contracts: The chores and allowance feature is intended for educational purposes and to facilitate family budgeting; it does not create any form of employment or contractual wage agreement between parent and child in a legal sense. Children are not employees of the parent or Modak, and allowances are not wages. All funds transferred as allowance are considered gifts or parental support money. Modak makes no guarantees that use of the chores feature will have any particular outcome; for example, we do not guarantee that using our chores feature will make your child complete their tasks or learn financial habits (though we hope it will help). Modak is not liable if a Parent withholds an allowance or if a child fails to complete chores – those decisions rest with the users.

Chore/Allowance Notifications: The Parent may receive alerts when a child marks a chore completed or when an allowance payment is sent. Likewise, the child may get reminders about chores or confirmation when allowance is received. By using the feature, you consent to such push or in-app notifications. These are provided on a best-effort basis; delivery is not guaranteed. Check the app for the current status of chores and allowances.

MBX Rewards Program

Modak includes a rewards system using Mobucks (MBX), our in-app virtual currency designed to encourage good financial habits and engagement with the platform. The MBX Rewards Program is an optional feature available to eligible users, including Parents and Children. Users may earn MBX without a Modak Card, but redemption of MBX for monetary rewards requires an active Modak Card and account, as described below. The following are key terms of the MBX program:

Earning MBX: Eligible users may earn MBX through activities made available by Modak within the Service. These activities may include, for example, completing financial education quizzes, reaching savings goals, achieving streaks of chore completion, using the Modak walking feature (integrated with health apps to reward physical activity), making purchases with the Modak Card, or other promotions Modak may offer. The specific ways to earn MBX and the amount awarded for each activity can change over time. For instance, as of early 2025, Modak’s program might award 10 MBX for every 5,000 steps a user walks (via a linked tracker); but Modak reserves the right to modify the earning rate or activities at any time for fairness or promotional reasons. We will notify users through the app or website of any significant changes to how MBX can be earned. All MBX earnings will be reflected in the user’s in-app MBX Wallet/Balance.

MBX Value and Redemption: MBX points are a form of loyalty/reward points, not actual currency, but they can be redeemed for monetary value by eligible users. Unless otherwise disclosed by Modak, the standard promotional redemption rate is currently 100 MBX = $1.00 USD. However, only customers who have an active Modak Card and Checking Account can redeem MBX for cash or cash-equivalent rewards. If you do not have a Card (for example, you’re just using the app’s educational content without the banking features), you might still earn MBX points but you won’t be able to convert them to money until you activate a Modak Card. Redemption typically works by converting MBX into a deposit of funds into the user’s Modak account (which could then be spent with the Card). The minimum MBX balance required to redeem is 100 MBX (i.e., roughly $1); you cannot redeem less than that. Redemptions under normal circumstances are processed instantly once you meet the minimum and initiate a redemption in the app. The MBX-to-dollar conversion rate (100:1 at present) is subject to change at Modak’s discretion based on promotional considerations, inflation, or other factors. Any changes to the conversion rate will be communicated (for example, via the MBX Policy or app announcements), and such changes would typically apply prospectively (points already accumulated will retain the value per the policy in effect at the time of redemption).

MBX Usage and Rewards: Besides cash redemption, Modak may allow MBX to be used for other perks – for example, exchanging MBX for gift cards, merchandise, charitable donations, digital collectibles (like avatars or badges), or participating in special reward games (“Scratch ’em” cards, contests, etc.). All such uses will be described in the app when available, and they may have their own specific terms or conditions. When you redeem MBX for any reward, the corresponding points will be deducted from your balance. MBX has no monetary value until redeemed. It cannot be transferred to other users, and you cannot withdraw MBX itself in cash except through the redemption process to your own account. MBX is not legal tender, not FDIC-insured, and cannot be purchased (it is only earned through activities). Modak may at times offer bonus MBX or promotions (e.g., a sign-up bonus in MBX, or referral bonuses in MBX) – those will also follow these Terms and any promo-specific terms.

Expiration and Limits: MBX points may expire if not used. Currently, MBX earned will expire after 120 days (approximately 4 months) from the date they were granted, if they are not redeemed. For example, MBX earned in January would expire by May if unused. The oldest MBX in your balance will be used first for any redemption to minimize expirations. We may adjust the expiration policy and will notify users of any changes. Additionally, there may be a maximum cap or limit on MBX earnings or redemptions. As of now, a user can redeem up to 100,000 MBX before their MBX counter resets (100,000 MBX = $1,000). This cap is to ensure fair use of the program and may be adjusted. Hitting the cap doesn’t make you lose any value; it just resets the count so you can continue earning anew (in practice, this means $1,000 is the maximum you could convert in one cycle, after which you start from 0 again for the next cycle of earning, per the MBX Policy). Few users will hit this cap under normal usage.

Program Changes and Termination: Modak reserves the right to modify, suspend, or terminate the MBX Rewards Program at any time. This includes changing how points are earned, the conversion rate, expiration period, or discontinuing the program entirely. If we ever decided to discontinue MBX, we would provide advance notice and ideally give users an opportunity to redeem remaining points. However, Modak does not guarantee the continued availability of any particular reward or of the program itself. MBX is a complimentary feature and not a vested right. Abuse of the MBX program (such as attempting to game the system, use of bots, false data to earn points, or any fraudulent activity) can result in forfeiture of points and/or suspension of your account.

No Interest or Investment Aspect: MBX is not an interest-bearing asset. You do not earn any interest (annual percentage yield, APY) on MBX or on any unredeemed rewards. It is purely a loyalty reward. Similarly, MBX is not any kind of security or investment; it’s more akin to arcade tokens or credit card reward points. The value of MBX is controlled by Modak and can change, and it is not pegged to any fiat currency beyond our stated conversion for redemption.

For full details on the MBX program, please see the MBX Policy document, which is incorporated herein by reference. If there is any discrepancy between these Terms and the MBX Policy regarding the MBX program, those specific terms in the MBX Policy will govern the handling of MBX (unless otherwise stated). In all other respects, these general Terms apply to your use of MBX as part of the Service.

Card Issuance and Banking Services

Bank Partner and Card Issuer: The Modak Visa® Debit Card (“Modak Card”) is issued by Modak’s Bank Partner, as identified in the applicable Deposit Account Agreement (“Issuer” or “Bank”), pursuant to a license from Visa U.S.A. Inc. By activating or using the Modak Card, you agree to the Cardholder Agreement provided by the Issuer, which contains additional terms and disclosures required by banking regulations. The Cardholder Agreement will be provided to you when you receive your virtual or physical card (and is available on our website). Please review it carefully, as it includes important information such as: how to report a lost/stolen card, your protections for unauthorized transactions (e.g., Regulation E disclosures), and certain fees that may be associated with card use (if any). In the event of any conflict between these Modak Terms and the Issuer’s Cardholder Agreement with respect to use of the Card or the bank account, the Cardholder Agreement will control those issues; otherwise, these Terms will apply.

Not a Credit Card: The Modak Card is a debit card, not a credit card. It does not extend credit; you can only spend money that you (or other permitted parties, like the Parent or an approved family/friend) have loaded into your Modak account. Using the Card will immediately deduct funds from your available balance. There are no overdrafts permitted on the Card or account (we do not offer any overdraft or credit feature). If a transaction would exceed your available balance, it will typically be declined. In the rare case your account goes negative (for example, due to a late-posting transaction or a fee), you are responsible for paying that shortfall promptly to bring the balance to zero or above. Modak and the Issuer reserve the right to off-set or recover negative balances from any funds you later add, or to suspend your account until resolved.

Card Activation: Once you are approved for an account, Modak will provide a virtual debit card number for immediate use via the app, and you may also be mailed a physical card (with your child’s name, if it’s a child card, or the parent’s name if it’s a parent card) depending on the plan. Activation – The Parent must activate the card (virtual or physical) as instructed (often this means selecting “activate” in-app and/or setting a PIN). A physical card may need to be activated by a phone call or through the app by entering a code. Until activation is completed and identity verified, the card may not function. By activating the card, you confirm your agreement to all card-related terms.

Ownership and Use of Card: The card remains the property of the Issuer bank. We (or the Bank) may suspend or cancel the card at any time for security reasons, suspected fraud, or breach of these Terms or the Cardholder Agreement. The card is for personal, family use only – strictly no commercial or business use is allowed. Also, you may not use the card for any illegal transactions or in any way that violates these Terms or applicable law (see Prohibited Activities below). If the card is issued for a Child, typically the card will have the Child’s name and is intended to be used by that Child under supervision. The Parent must instruct the Child on proper use (e.g., where they are allowed to use it, spending limits, etc.). The Parent can also use their Parent Account (possibly with a separate Parent card if provided, or by transferring money out through allowed methods – but generally, Modak is child-focused and the Parent would likely use their own bank for personal spending). The Parent is liable for all uses of the Card by the Child or any other person the Parent permits to use the Card. The Card is non-transferable; only the authorized user (Child or Parent) whose name is on the card should use it. Do not share your card number or allow friends to borrow it.

Where You Can Use the Card: The Modak Card can be used to make purchases anywhere Visa debit cards are accepted, subject to the controls in the app and the available balance. This includes point-of-sale transactions in stores and online purchases.

Spending Limits: For security and regulatory reasons, there may be limits on how much you can spend or withdraw using the Modak Card in a given time period. For example, there may be a daily transaction limit (e.g., you might not be able to spend more than $X per day), a per-transaction limit, an ATM withdrawal limit and a funding limit per transaction. These limits may be set by the Issuer and/or Modak and will be communicated to you. Refer to the latest info in the app or Cardholder Agreement for actual limits. Attempting a transaction over the limit or above your balance will result in a decline.

Loading Funds (Adding Money): The Parent Accountholder is responsible for funding the Modak account. Modak may provide several ways to add money:

1. Linked Bank Transfer (ACH): You can connect an external bank account (in your name, via ACH) and transfer funds into Modak. By doing so, you authorize our Bank Partner or third-party payment processor to initiate ACH debits from your linked account. The typical transfer time is a few business days. There may be limits on ACH transfers (e.g., initial load might be limited until verification is complete).

2. Debit or Credit Card Load: Modak allows the Parent to instantly add funds using an external debit or credit card. This will incur a small fee. Modak will disclose any such fee before you confirm, refer to our fee disclosure for more details.

3. Direct Deposit: We may provide an account and routing number for the Modak Checking Account so you (or another payer like an employer) can direct deposit funds. If so, ensure only allowed types of deposits (like payroll) are coming in, as certain deposits might be rejected (for example, we might not allow check deposits or wires in the child’s name).

4. Others: We might allow transfers from payment apps or other sources if compatible (for example, if someone wants to send money to your child’s Modak account, they might send to your linked account or use a special payment link if we provide it). All funds loaded are subject to anti-fraud and anti-money laundering checks. We reserve the right to hold or delay any deposit if fraud or legal issues are suspected. No cash or paper money loads: Note that you generally cannot deposit physical cash directly into Modak (we don’t have branches). Some services like Green Dot or Western Union might allow cash loads, but unless we specifically offer it, assume not.

5. Auto-Reload Option: Parents may enable an optional Auto-Reload feature for their Modak Parent Account. By turning on Auto-Reload, you, Parent Accountholder, authorize the Bank Partner identified in the applicable Deposit Account Agreement, to electronically debit your linked external bank account whenever your Modak Parent Account has a balance that is below your selected threshold. The funds will be transferred via the Automated Clearing House (ACH) network and credited to your Modak Parent Account, generally within one to three (1–3) business days depending on your financial institution.

Authorization and Consent: Enabling Auto-Reload constitutes your preauthorized electronic funds transfer consent to initiate debits as set forth under these terms. You acknowledge that this agreement is solely for your authorization to have debit transfers made from your linked external bank account to your Parent Account. By opting in, you agree that:

Each reload is triggered automatically when your Parent Account balance reaches or falls below the level you set in the app.

The amount, frequency, and conditions of the reloads are those you specify during setup. You understand that the amount of each transfer from your linked external account to your Parent Account under this authorization will vary and shall be determined in accordance with the instructions you provided to us as part of your enabling or enrollment in the Auto-Reload feature. You will not receive notice of the varying amount of transfer so long as the transfer complies with the specifications you provided as part of enabling or enrollment in the Auto-Reload feature. You elect to only receive notice of varying amounts of debits under this authorization if the debit amount deviates from the range or terms you have specified.

You confirm you are the owner or authorized signer of the linked external bank account.

You may revoke this authorization at any time by turning off Auto-Reload in the Modak app or by contacting support@modak.live. If we do not receive notice at least three (3) business days before the scheduled debit date, we may attempt, in our sole discretion, to cancel the debit transfer. However, we assume no responsibility for our or the Bank Partner’s failure to do so.

Records and Notifications: You will receive a confirmation notice after each Auto-Reload transfer.

Disclaimer: Auto-Reload is provided for your convenience and to help maintain sufficient balances for your Parent Account. You are responsible for ensuring adequate funds are available in your linked bank account to cover each reload. Insufficient funds or failed debits may result in transaction delays, reversals, or returned ACH items. Modak and our Bank Partner do not assume responsibility for any insufficient funds or overdraft fees that may be charged to your connected external bank account if there are not sufficient funds available in that account.

Transfers Between Parent and Child: The Parent can transfer money internally between the Parent Account and any Child Account instantly through the app (this is essentially just moving funds ledger entries, no external processing time). You can add money to a Child’s account (which is effectively giving them funds to spend). Typically, allowances and chore payments are done by transferring to the Child. In-app, the child might have a way to ask for more money (requests) that the parent can approve. All internal transfers are under the Parent’s control.

External Transfers / Withdrawals: Both the Parent Accountholder and, where enabled by Modak, the Child User may initiate transfers or withdrawals of available funds from their respective Modak accounts, subject to applicable controls, permissions, and system limitations. Funds may be transferred to a linked external bank account via Automated Clearing House (ACH), which typically requires a standard processing period to complete.

Modak may also offer internal transfer features that enable users to send funds to other Modak users, including family members, using unique identifiers (such as MoTags or similar functionality). All external and internal transfers are subject to parental oversight, account permissions, transaction limits, eligibility requirements, and compliance with these Terms and applicable laws and regulations. Modak reserves the right to restrict, delay, or decline any transfer in its sole discretion for risk, security, or compliance purposes.

Parental Controls and Monitoring

Parental Controls are a key aspect:

‍Real-time Alerts: By default, Modak will send the Parent Accountholder notifications for each transaction made with the Child’s card (and possibly for certain other events like attempted declined transactions, login from a new device, etc.). The Parent should leave these notifications on to stay informed. If a transaction alert looks suspicious or is not recognized, the Parent should lock the card and investigate immediately.

‍Card Lock/Unlock: The Parent has the ability to instantly freeze (lock) the Child’s card via the app. This prevents new transactions from being authorized (though recurring transactions or offline transactions might still post). Locking is useful if the card is lost or if you simply want to pause the child’s spending privileges. The Parent can later unlock (unfreeze) the card when it’s okay to use again. The Child might also have a way to temporarily pause their card in-app if they lose it, but typically the Parent will be the one controlling this.

‍Monitoring: The Parent can view detailed information about the Child’s account usage: current balance, transaction history (with merchant names, amounts, dates), chore completion status, allowance payments sent, MBX activity available through the Service, etc. We strive to present an informative dashboard so parents can actively mentor their kids. Transaction history is generally updated in real-time or near-real-time. If you see any transactions you believe are unauthorized, you must report them promptly (see Unauthorized Transactions below).

Unauthorized Transactions and Liability: If you or your child lose the physical card or suspect the card number has been stolen, you must notify Modak/Issuer immediately. You can do this by locking the card in-app and contacting customer support. The Cardholder Agreement (and underlying federal law for electronic transfers) provides certain protections: for example, if you report a lost card in a timely manner, your liability for fraudulent charges may be limited (e.g., Regulation E typically limits to $50 if reported within 2 business days, etc.). We refer you to the Cardholder Agreement for specifics on liability and the procedure to get provisional credit for unauthorized charges. The key point: act fast if something is wrong. The Parent should also educate the Child not to share their card details and to inform the Parent if the card is misplaced.

No Circumvention: The Child (or Parent) should not try to circumvent the controls by any means (such as using the card through an unblocked merchant to indirectly get a blocked item, or the child attempting to use the parent’s card without permission, etc.). If Modak detects attempts to circumvent controls or security features, we may take action including disabling certain features or suspending the account.

‍User Conduct and Prohibited Activities

By using Modak, you agree to use the Services only for lawful purposes and in accordance with these Terms. You are strictly prohibited from:

Illegal or Fraudulent Use: Using the Modak account or Card for any unlawful activity, including but not limited to purchase of any illegal goods or services, money laundering, fraud, gambling (if underage or in prohibited jurisdictions), or funding terrorist activities. If we suspect illegal activity, we will report it to law enforcement and/or freeze the account as required by law.

‍Unauthorized Access: Attempting to access someone else’s Modak account or data, or any non-public areas of the Service, or probing, scanning, or testing the vulnerability of our system or network (hacking). Also, you may not use any automated system (bots, scripts) to extract data or perform actions on the Service without our prior permission.

‍Circumventing Controls: As noted, children should not attempt to bypass parental controls, and parents should not misuse the system either. For example, do not misrepresent your identity or your child’s identity to open accounts (no fake children, etc.), and do not attempt to use MBX or allowances in any fraudulent manner (such as creating fake activities to earn points).

‍Harassment or Inappropriate Content: The Modak platform might allow some communication (like sending messages with allowance or chore notes). Users must not send any harassing, threatening, obscene, or otherwise inappropriate communications through our app. Any content shared should be family-friendly and respectful.

Intellectual Property Misuse: You shall not reverse engineer, decompile, or disassemble any aspect of the Modak app, nor use the Modak trademarks, logos, or copyrighted material except as allowed (for example, you can use the app and its content for personal use, but you can’t copy our educational materials for commercial use or create derivative apps).

‍Third-Party Links and Services: If Modak integrates or links to third-party services (like educational videos, partner offers, etc.), using those is at your own risk and subject to their terms. You should not introduce any malware or harmful code into the app or upload any content that contains viruses or similar destructive features.

Impersonation and Accuracy: You must not impersonate any person or entity, or provide false information. All information you input (for KYC, transactions, etc.) must be truthful and accurate. You also must not use Modak for any commercial solicitation or advertising.

We reserve the right to terminate or suspend any account that engages in the above prohibited activities or any conduct that, in our sole discretion, is objectionable or exposes us or our partners to risk. Engaging in prohibited activities may also subject you to legal consequences under applicable law. Note: We may monitor transactions for signs of prohibited use (for example, we might block known gambling merchant codes, etc.), but we do not guarantee to catch every instance. It is ultimately your responsibility to use the Service legally.

Security and Privacy Protections

Security Measures by Modak: We take security seriously and implement a range of measures to protect your accounts and personal information. This includes encryption of sensitive data in transit and at rest, secure servers, authentication safeguards (such as multi-factor authentication where possible), and continuous monitoring for fraud. While no system is 100% secure, Modak’s security program is designed to follow industry best practices for fintech applications. We also undergo periodic security audits and comply with relevant regulations for safeguarding financial data. For details on our security practices, you can visit our “Trust Center” or security page (if available).

User Responsibility for Security: As a user, you play a critical role in maintaining security:

1. Keep your passwords and PINs confidential. Do not reuse passwords that you use on other sites. We recommend using strong, unique passwords and changing them periodically.

2. Enable additional security features we offer, such as biometric login (fingerprint/FaceID) or two-factor authentication (if available).

3. Keep your email account secure as well, because email may be used for account resets or important communications.

4. Secure your devices: Ensure that the phone or tablet running the Modak app has a lock screen and is not easily accessible by others. If your device is lost or stolen, use remote wipe features and notify us if you believe your Modak session could be at risk.

5. Only install the Modak app from official app stores and keep it updated. Don’t use unofficial modified versions of the app.

6. Be cautious of phishing attempts. Modak will never ask you for your password via email or SMS. Only enter your credentials in the official app or website. If you get suspicious messages claiming to be Modak, contact us directly to verify.

If you suspect any unauthorized access or fraud, notify us immediately. Time is of the essence in limiting potential losses or misuse. We may be able to assist in securing your account (such as disabling it temporarily) and investigating the issue.

Privacy Policy: Our Privacy Policy (available on our website) explains in detail how we collect, use, disclose, and protect your personal information. By using Modak, you acknowledge that you have read the Privacy Policy and understand that personal data will be handled in accordance with that policy and applicable privacy laws. We take your privacy very seriously and will not share your personal information with third parties except as permitted in the Privacy Policy (for example, with our banking partner to provide services, or with service providers who help us operate the platform, or if required by law). In particular, we will not sell your personal data to third-party marketers. Data related to your child is used only for providing the Service (such as creating their account, enabling transactions, showing you their financial activities) and for internal analytics to improve our educational offerings. We comply with COPPA for users under 13, meaning we obtain parental consent and allow parents to review/delete personal information of their children as required.

If the Parent Accountholder authorizes a Co-Parent to access a designated Child Account, Modak may share information relating to that Child Account with both the Parent Accountholder and the authorized Co-Parent as necessary to provide the requested functionality of the Service. A Co-Parent will only have access to the Child Account(s) specifically designated by the Parent Accountholder.

Consent to Electronic Communications: Security and account alerts, as well as disclosures, will be sent electronically. You agree that Modak can provide you any required notices and communications electronically (through the app, website, or via email or SMS to the contacts you provided). It is your responsibility to keep your email and phone number up to date in our records and to check for communications. You may have the right to withdraw consent for electronic communications, but if you do, we may need to close your account (since the service is primarily electronic). Refer to the Electronic Communications section in the Cardholder Agreement or our disclosures for more details on e-sign consent.

Data Security Breach Notification: In the unlikely event of a data breach that affects your personal information, Modak will notify affected users in accordance with applicable state and federal laws. We may also post notices or send emails to inform you of steps to protect yourself. We maintain incident response plans for such events.

Third-Party Privacy: If you link any third-party services to Modak (for example, if we allow you to link a Google Fit or Apple Health for the walking feature, or an educational partner app), any data shared with those third parties will be subject to their privacy policies as well. We encourage you to review privacy policies of any third-party services you connect to Modak. We are not responsible for how third-parties handle your data, but we will only integrate with reputable providers and will seek to minimize data shared to only what’s necessary.

Fees and Pricing

Subscription Plans

Modak may offer multiple subscription plans, including MoBasic, MoSilver, MoGold, and, for certain existing customers only, MoLegacy. Enrollment in a paid subscription plan is optional and is not required to open or maintain a standard Modak account.

MoBasic is Modak’s standard subscription plan  and does not have a recurring subscription fee. MoSilver and MoGold are optional paid subscription plans that provide additional features, benefits, rewards, and promotional offerings. MoLegacy is a grandfathered plan for eligible existing customers and is not available for new enrollment.

Paid subscription plans, including MoSilver and MoGold, may be offered on a monthly or annual basis, subject to availability. By enrolling in a paid subscription plan, you authorize Modak to charge your designated payment method on a recurring basis for the applicable subscription fee unless and until you cancel your subscription. Paid subscriptions automatically renew at the end of each billing period unless cancelled prior to the applicable renewal date. Subscription pricing, billing frequency, promotional pricing, and included benefits will be disclosed at the time of enrollment.

To avoid future subscription charges, you must cancel your subscription at least three (3) days before the end of your current billing period. If you cancel after this time, your cancellation will take effect at the end of the current billing period, and you will not be charged for the next billing cycle.

You may cancel your subscription at any time through the Service. Unless required by applicable law, subscription fees are non-refundable and not prorated.

Modak may modify the pricing, benefits, eligibility criteria, promotional features, or available subscription plans at any time, subject to applicable law and any required customer notice. Current subscription terms, pricing, billing frequency, promotional offers, included benefits, renewal terms, and cancellation information will be presented to you during the applicable checkout or enrollment process.

Certain benefits associated with paid subscription plans, including promotional rewards, cashback offers, savings boosts, fee reimbursements, discounts, and similar promotional features, are promotional in nature, may vary by subscription plan, and are not guaranteed. Modak may modify, suspend, replace, or discontinue promotional benefits at any time, subject to applicable law and any required customer notice.

Current subscription plan features and benefits are presented during enrollment and within the Service and may include, depending on the applicable plan, family management tools, chore management, allowance scheduling, co-parenting functionality, advanced parental controls, enhanced spending analytics, rewards, promotional cashback, Savings Boost, Checkout Fee Coverage, physical card benefits, expedited shipping discounts, and other subscription benefits. Benefits may vary by plan and may be modified, replaced, or discontinued as described in these Terms.

Nothing in these Terms obligates Modak to maintain any particular subscription plan, feature, benefit, promotional offering, or subscription for any minimum period of time, subject to applicable law and any required customer notice.

MoBasic (Standard Plan): MoBasic is Modak’s standard subscription plan and does not require a recurring subscription fee. Customers enrolled in MoBasic have access to core banking services, including a Modak deposit account, virtual debit card, financial education tools, and other standard features made available through the Service. A child may also request a physical debit card with a qualifying minimum initial funding deposit, as disclosed during enrollment.

Optional Paid Subscription Plans: Eligible customers may elect to upgrade to an optional paid subscription plan, such as MoSilver or MoGold, to receive additional features, family management tools, rewards, discounts, and other subscription benefits. Subscription pricing, billing frequency, promotional offers, and included benefits will be disclosed during the enrollment process and may vary by subscription plan.

Current subscription plan features, eligibility requirements, pricing, billing frequency, and included benefits are described within the Service at the time of enrollment and may vary by subscription plan.

Optional and Transaction-Based Fees: Certain optional services may result in additional fees, which will always be disclosed before the customer authorizes the transaction. These may include:

• Instant Funding Fees: Fees associated with optional instant funding transactions using eligible payment methods. Eligible subscription plans may receive fee reimbursements, fee waivers, or similar promotional benefits, as described in the applicable subscription benefits.
• Physical Card Fees: Standard physical child cards are available with a qualifying minimum initial funding deposit. Parent physical debit cards, replacement cards, and premium card options may be subject to fees as disclosed in the Fee Schedule.
• Expedited Card Shipping: Eligible customers may elect expedited shipping for physical debit cards for the applicable fee disclosed in the Fee Schedule. Eligible subscription plans may receive discounted expedited shipping.
• Other Optional Services: Additional optional products or services may be offered from time to time. Any applicable fees will be clearly disclosed before the customer elects to use the service.

**International Transactions:**International transactions may be subject to applicable network currency conversion rates and fees assessed within the payment network. Any applicable fees are disclosed in the Deposit Account Agreement and Fee Schedule.

Inactivity or Misc. Fees: We do not charge inactivity fees at this time.

Overall, Modak aims to be transparent about fees. Any fees will be disclosed in the app at the relevant time (when you’re about to perform an action that incurs a fee) and in a fees section of the Cardholder Agreement or our website. We will not hide fees or charge undisclosed fees. If you ever see a fee on your account you didn’t expect, contact us and we’ll explain it or correct any error.

Third-Party Fees: Note that aside from Modak’s fees, you might incur fees from your external bank (for linking and transferring) or mobile carrier (for data/SMS use of our app), etc. Those are outside our control. For example, if your external bank charges you for an ACH outbound transfer or if you send a text command and your phone plan charges per SMS, that’s on you.

Account Suspension, Termination, and Cancellation

If your access to paid subscription benefits is temporarily suspended due to compliance, risk, or security reasons, your subscription will remain active and subscription fees will continue to accrue and be charged during such suspension. Suspensions are generally temporary and will not exceed 30 days unless the account is closed in accordance with these Terms. Modak may, in its sole discretion, provide credits or refunds in appropriate circumstances, including where required by applicable law or based on specific user complaints or account review outcomes.

By You (Parent): You may choose to close your Modak Parent Account at any time if you no longer wish to use the Service. To do so, you (the Parent Accountholder) should contact Modak customer support or use any available account closure function in the app. Before closing, you must withdraw or transfer out all funds from your Modak account (back to your linked bank or spend the balance down to zero). Any remaining MBX points should be redeemed if possible, as they may be forfeited upon account closure. If you have multiple Child Accounts, you will need to close those as well (which typically happens when the Parent Account is closed). We may require a written confirmation and some identity verification to process a closure for security. Note: If you simply uninstall the app or stop using it without formally closing the account, the account may remain active. To avoid continued service of the account (and any potential inactivity policies), please properly close it with us.

By Modak: We reserve the right to suspend or terminate your (or your child’s) access to Modak under certain circumstances, which include:

Breach of Terms: If you violate any provision of these Terms, the Cardholder Agreement, or any other applicable policy (for example, engaging in a prohibited activity or fraud), we may suspend your account while investigating, and potentially terminate it.

Illegal or Risky Behavior: If we suspect your account is involved in financial crime, fraud, or activity that poses risk to us or other users, we may freeze or close it. This could be due to suspicious transactions, chargebacks, or law enforcement directives.

Lack of Use / Program Closure: If your account has had no activity for an extended period (e.g., 12+ months) and has a zero balance, we may designate it as inactive and close it (you can always re-open if the program is still ongoing). Separately, if Modak as a program is being discontinued entirely (we certainly hope not, but hypothetically), we might terminate all accounts with appropriate notice.

Required by Bank or Law: If our Bank Partner or regulators instruct us to close or suspend an account (for example, if KYC cannot be re-verified or if the user appears on a sanctions list), we will comply.

If we suspend your account, we will generally notify you (unless legally prohibited, such as by a gag order in an investigation). During suspension, your and your child’s access to the app may be locked, and the card may be deactivated. We will investigate the issue. If it’s fixable (for example, suspicious activity turned out to be fine, or a terms violation was minor and corrected), we may restore access. If not, we will proceed to termination.

Modak may suspend, restrict, or revoke a Co-Parent’s access independently of the Parent Account or Child Account where necessary for security, fraud prevention, legal, regulatory, operational, or compliance purposes. Revoking Co-Parent access does not close the Parent Account or any Child Account and does not affect ownership of funds held within those accounts.

Upon Termination: If your account is terminated (by you or us), the following will occur:

1. Your and your Child’s right to use the Modak platform and card ceases. All login access will be disabled.

2. We will cancel the Modak Card. You should destroy any physical card for security.

3. We will provide any remaining balance of funds to you. Typically, we will return funds to the linked external bank account on record or issue a check to your mailing address on file. We may need to verify your identity again before releasing funds, especially if closing due to suspicious activity (to ensure we return money to the rightful owner).

4. Any unredeemed MBX may be forfeited. Modak is not obligated to compensate for MBX upon closure, especially if terminated for cause. We may, at our discretion, allow a short window for redemption if account closure is voluntary and not due to misconduct.

5. Data Retention: We will retain your transaction records and personal information as required by law (for example, financial institutions must keep certain records for 5 years for anti-money laundering regulations). However, you will no longer receive communications from us except what’s necessary (like a closing statement) and legally required notices.

6. Effect on Child Accounts: If a Child Account is terminated (for example, the Parent decides to cancel one child’s card due to misuse), the Child’s card will be canceled and that sub-account closed. Any funds in the Child Account will typically be moved back into the Parent Account. The Parent can then withdraw or reuse those funds for another child. If the entire Parent Account is terminated, all Child Accounts terminate with it.

7. Survival: Even after termination of an account, any sections of these Terms that by their nature should survive will remain in effect. This includes provisions on liability, indemnification, arbitration, governing law, etc. Any outstanding obligations or liabilities you incurred prior to termination also survive (for instance, if your account had a negative balance or unresolved disputes).

If you have any questions about closing your account, you can contact our support and we will guide you through the process and clarify any consequences.

Disclaimers of Warranties

Modak provides its Services to you on an “As Is” and “As Available” basis. To the maximum extent permitted under law, Modak disclaims all warranties of any kind, whether express, implied, or statutory, regarding the Service and the Modak Card and accounts. This includes, but is not limited to:

Implied Warranties Disclaimed: Any implied warranties of merchantability, fitness for a particular purpose, title, non-infringement, and any warranties arising out of course of dealing or usage of trade are explicitly disclaimed. We make no promises that the Service will meet your specific requirements or achieve any particular results (for example, we do not promise that your child will become financially savvy or that chores will always be completed because of our app).

Service Quality and Availability: Modak does not warrant that the Service will be uninterrupted, timely, secure, or error-free. While we aim for high uptime and quick fixes, we do not guarantee that the app will always be available or that it will have no bugs. Scheduled maintenance or unforeseen outages may occur. We are not responsible for any disruption, loss of data, or delay caused by system outages, maintenance, or technical issues, but we will strive to minimize such events.

Data and Information: Any financial information, educational content, or advice provided through Modak is for general informational purposes. It is not professional financial or legal advice. We do not warrant the accuracy or completeness of any information provided (though we try to keep it accurate and updated). For instance, interest rates, market info, or average allowance suggestions might be provided, but you should independently verify anything important. We also don’t guarantee that any third-party content accessible via our platform is accurate or reliable.

Third-Party Services: If our Service relies on or integrates with third-party services (e.g., our Bank Partner’s systems, card networks, mobile OS platforms, etc.), we cannot guarantee their performance. For example, there may be times the Visa network is down or our banking provider has an outage; these are outside our control, and we provide no warranty about continuous availability through those third parties. We will, however, use commercially reasonable efforts to work with them to restore service when disruptions occur.

No Warranty of Fitness for Kids’ Needs: While Modak is designed for kids and teens, we don’t warrant that it is appropriate for every child or that it will inherently be suitable for your particular goals. Parents must decide the suitability. The app’s content is general and not personalized to any child’s learning needs beyond basic age-appropriate design.

No Warranty Against Intrusion: Although we prioritize security, we do not warrant that the Service is immune from hacking, unauthorized access, or viruses. You assume the risk of security breaches to the extent that they are not due to our gross negligence. We encourage you to use good security practices as described in the Security section above.

In summary, use of the Modak Service is at your own risk. We provide no guarantee that it will function without error or that any specific outcome (financial or otherwise) will be achieved. Some jurisdictions do not allow the exclusion of certain warranties, so some of these disclaimers may not fully apply to you. In such cases, any implied warranties are limited to the minimum duration and extent permitted by law.

Limitation of Liability

To the fullest extent permitted by law, Modak (including its parents, affiliates, officers, directors, employees, and agents) and our Bank Partner or other partners, will not be liable for any indirect, incidental, special, consequential, or exemplary damages that result from or in connection with the use of (or inability to use) the Service. This includes, but is not limited to, damages for lost profits, lost data, loss of goodwill, business interruption, or the cost of substitute services, even if we have been advised of the possibility of such damages.

Specifically, Modak is not liable for:

Financial Decisions: Any decisions you make regarding your child’s finances or allowance as a result of using Modak. You are responsible for how you use the information and tools we provide.

Unauthorized Access: Any unauthorized use of your account that occurs due to your failure to safeguard credentials. (However, see the Cardholder Agreement for how unauthorized card transactions may be reimbursed under Reg E — that is a separate process with the bank. Here we speak of general account misuse.)

Service Interruptions: Any inability to access funds or information during system outages or maintenance windows. While inconvenient, these rarely cause direct monetary loss, and even if they did (e.g., couldn’t use the card at a certain time), our liability is disclaimed.

Third-Party Actions: Issues attributable to merchants (like if a merchant refuses the card or has an error), or other third parties such as telecommunication failures, internet outages, or any third-party apps integrated with Modak. Also, if a deposit doesn’t arrive because your external bank or an employer did not send it, that’s between you and them.

Lost Opportunities: If MBX points expire or you miss out on a promotion or reward because you didn’t use it in time, we aren’t liable for the lost opportunity value.

Child’s Conduct: Any misuse by your child that results in loss (for example, if your child overspends money that you intended for something else, or if they break a device while using our app – obviously our app didn’t cause that, but just saying generally their conduct is on you).

Regulatory Compliance Actions: If we suspend or terminate your account as required by law or for investigation, we aren’t liable for the period you couldn’t use the service, even if ultimately no wrongdoing is found (though we’d restore access then). Similarly, if we block a transaction due to a suspected issue and it turns out to be legitimate, our liability is limited to processing the transaction when cleared – we won’t be liable for any loss caused by the delay.

In any case, to the extent we are found liable for any claim, our total aggregate liability to you (including all users on your account) for all claims arising out of or relating to the Service or these Terms will not exceed the greater of: (a) the total fees (if any) paid by you to Modak in the 3 months prior to the claim, or (b) $100 USD. Given we generally do not charge fees, (b) likely applies as the cap. This limitation applies whether the claims are based in contract, tort, negligence, strict liability, or any other legal theory.

Exceptions: Some jurisdictions do not allow the exclusion or limitation of certain damages, so some of the above limitations may not apply to you. For example, certain state laws might not allow limitation of liability for personal injury caused by negligence. Modak does not seek to limit liability for gross negligence, willful misconduct, or any liability that cannot be limited by law. But nothing in these terms is intended to waive any legal protections or rights you have as a consumer under U.S. law; rather, we seek to clarify our potential liability to the extent allowed.

You acknowledge that Modak is not responsible for the actions of third parties, the Bank Partner (to the extent of their services, they have their own liability limits in their agreement), or any force majeure events. If you are dissatisfied with any aspect of the Service, your sole and exclusive remedy is to discontinue use of the Service (and possibly close your account, as described above).

Indemnification

You agree to indemnify, defend, and hold harmless Modak and its affiliates, and their and our respective officers, directors, agents, partners, and employees (and the Bank Partner and card network, collectively “Indemnified Parties”) from and against any and all third-party claims, liabilities, losses, damages, expenses, and costs (including reasonable attorney’s fees) that arise out of or are related to: (i) your use of the Modak Service or Card (including any actions taken by your child or other authorized users on your account), (ii) your breach of these Terms or any other applicable policy or agreement with Modak or the Bank Partner, (iii) your violation of any applicable law or regulation in connection with your use of the Service, (iv) your negligence, fraud, or willful misconduct (or similar conduct by your child under your supervision), or (v) any dispute or issue between you and any third party (such as a merchant or your child) arising from your use of the Service (for example, a dispute with a merchant over goods paid with Modak, or a dispute with your child or co-parent that has a legal aspect).

In plain terms, if your use (or misuse) of Modak causes someone else to sue us or claim damages from us, you will cover our costs and losses for that claim. We reserve the right to assume the exclusive defense and control of any matter subject to indemnification by you, in which case you agree to cooperate with our defense of that claim (for example, providing any information or testimony reasonably needed). You may not settle any claim that involves any Indemnified Party or admits any fault or imposes any obligation on an Indemnified Party without our prior written consent.

This indemnification obligation will survive the termination of your Modak account or these Terms. That means even if you stop using Modak, if a claim relating to your use arises later, you could still be responsible for indemnifying us.

Dispute Resolution and Arbitration

Please read this section carefully, as it affects your rights. It requires most disputes to be resolved through binding arbitration on an individual basis, rather than in court, and limits the ability to bring or participate in class actions.

Arbitration Agreement: Any controversy or claim arising out of or relating to these Terms, the Modak Service, or any breach thereof, shall be settled by binding arbitration administered by the American Arbitration Association (AAA) in accordance with its Consumer Arbitration Rules (or Commercial Arbitration Rules, if deemed applicable). Judgment on the arbitration award may be entered in any court having jurisdiction.

This means that if you have a dispute with Modak that you can’t resolve informally, you and Modak both agree to resolve it through arbitration, not in a lawsuit before a judge or jury.

Class Action Waiver: You and Modak each agree that all claims and disputes will be arbitrated on an individual basis only. No class, collective, or representative actions are permitted in arbitration, and neither party can join or consolidate claims of others or arbitrate any claim as a representative of a class or on behalf of the general public. The arbitrator has no authority to consider or resolve any claim or issue any relief on any basis other than individually for the specific party. If for some reason this class action waiver is found unenforceable, then any purported class or representative action must proceed in court and not in arbitration.

Arbitration Procedure: A party intending to seek arbitration must first send the other a written notice of dispute describing the nature and basis of the claim and the relief sought. Modak will send such notice to you at the email or physical address we have on file; you must send such

If we cannot reach an agreement to resolve the claim within 30 days after the notice is received, either party may commence arbitration proceedings. The arbitration will be conducted in English by a single neutral arbitrator.

Location: The arbitration will take place in a mutually agreed location, or if no agreement, in the county of your residence. If your residence is outside of California and Delaware (where our HQ or reg agent is), we may agree to a telephonic or video-conference arbitration to make it easier for you, or as AAA rules provide. The arbitrator can also decide to conduct proceedings by telephone or written submissions if an in-person hearing would be overly burdensome.

Fees: AAA rules will govern who pays arbitration fees. We will pay all arbitration filing fees and arbitrator’s costs and expenses, except to the extent state law requires you to pay a portion, or if the arbitrator finds your claims frivolous. Each party pays their own lawyers, however the arbitrator can award attorneys’ fees to the prevailing party if allowed by law (or as provided in these Terms, for example, at [28] lines 543-551, the arbitrator can award costs and fees to the prevailing party in their discretion).

Authority of Arbitrator: The arbitrator shall have the authority to grant whatever individual relief would be available in a court under law or in equity, including monetary damages and injunctive or declaratory relief (but only for the party seeking relief and only to the extent necessary to provide relief warranted by that party’s individual claim). The arbitrator shall provide a reasoned written decision if requested by either party.

Opt-Out Right: If you do not wish to be bound by this arbitration clause (and you have not previously agreed to an arbitration clause with us that you didn’t opt out of), you have 30 days from the date you first agree to these Terms to opt out. To opt out, you must send a written notice to our legal notice address with your name, account email, and a clear statement that you opt out of arbitration. Opting out will not affect the rest of the Terms, but it means you and Modak will not be able to compel each other to arbitrate disputes; instead, any disputes would be resolved by a court of competent jurisdiction, which absent arbitration would likely be the state or federal courts in Delaware or California (as discussed below under Governing Law & Venue). If you do not opt out, this arbitration agreement is binding.

Severability: If any portion of this Dispute Resolution and Arbitration section is found unenforceable, that portion shall be severed (removed) and the remainder shall remain in full force. However, if the class action waiver is found to be invalid and non-severable, then the entire arbitration clause shall be null and void (meaning disputes would then be resolved in court).

This arbitration agreement is made pursuant to a transaction involving interstate commerce, and the Federal Arbitration Act (FAA) will govern its interpretation and enforcement.

Modak is not responsible for resolving disputes between parents, guardians, Co-Parents, or other authorized adults regarding custody, parental authority, account permissions, spending decisions, funding, chores, allowances, or other family matters. Users are solely responsible for resolving such disputes outside of the Service.

Governing Law

These Terms and your use of Modak are governed by and construed in accordance with the laws of the United States and, to the extent not preempted by federal law, the laws of the State of Delaware, without regard to its conflict of law principles. Delaware is the state of incorporation of Modak Communities Operating Holdings Inc., and we choose it as the governing law to have a consistent legal framework.

If a dispute is not subject to arbitration (either because you opt out, or it’s an issue that a court must decide, or the arbitration clause is unenforceable), then you agree to the jurisdiction of the state and federal courts located in Delaware (specifically, the courts covering Dover, DE, or a similar venue) for the resolution of any lawsuit. You waive any objection to venue or claim of inconvenient forum with respect to such courts, provided that if you are a consumer residing in a state that requires a different venue for consumer disputes, that state’s requirements may supersede this (for example, some states require that litigation be in the county of the consumer’s residence).

The choice of Delaware law does not mean you lose protections of your home state’s consumer protection laws to the extent those are mandated. This clause primarily affects which state’s law will be used to interpret the contract and the forum. In any event, U.S. federal law (such as federal banking regulations, etc.) will apply where applicable.

Miscellaneous Provisions

Entire Agreement: These Terms, along with any Modak policies or supplemental agreements referenced (e.g., Privacy Policy, MBX Policy, Cardholder Agreement, promotional terms), constitute the entire agreement between you and Modak regarding the Service and supersede any prior understandings or agreements (whether oral or written) relating to the same subject matter. Any waiver of any provision of the Terms will be effective only if in writing and signed by Modak.

Severability: If any provision of these Terms is held to be invalid or unenforceable by an arbitrator or court of competent jurisdiction, that provision shall be enforced to the maximum extent permissible and the remaining provisions of these Terms will remain in full force and effect. For example, if a specific law limits the enforceability of a warranty disclaimer or liability limitation, the relevant clause will be deemed modified to comply with the law while preserving the original intent as much as possible, and all other provisions will remain valid.

Assignment: You may not assign or transfer any rights or obligations under these Terms without our prior written consent. Any attempted assignment without consent is void. Modak may freely assign or transfer these Terms (for example, in the event of a merger, acquisition, corporate reorganization, or sale of assets, or by operation of law) without notice to you. These Terms will inure to the benefit of and be binding upon each party’s permitted successors and assigns.

No Waiver: Modak’s failure to enforce any right or provision of these Terms does not constitute a waiver of that right or provision. Any waiver by Modak of any provision of these Terms must be in writing to be effective, and will not mean we waive it automatically in the future.

Relationship of Parties: You and Modak are independent contracting parties. These Terms do not create any agency, partnership, joint venture, or employment relationship between you and Modak. You are not authorized to make any representations or bind Modak in any manner. The Parent and Modak are in a customer-provider relationship; the Parent and Child relationship is obviously parent-child, to which Modak is not a party.

Third-Party Beneficiaries: Aside from the Bank Partner and affiliates covered in indemnification and liability sections (who are intended beneficiaries of those protections), there are no third-party beneficiaries to these Terms. This means no other person or entity besides you and Modak (and as applicable, the Bank or affiliates for those specific clauses) has any rights to enforce any term of this agreement.

Headings: Section headings and titles in this document are for convenience only and have no legal effect.

Contact Information

If you have any questions, concerns, or notices required under these Terms, you can contact Modak at:

Email: hi@modakmakers.com‍

In-App Support: You may also reach out through the help section in the Modak app for assistance.

Phone number: +1 833-966-2428

For reporting lost/stolen cards or unauthorized transactions, please refer to the phone number above (+1 833-966-2428).

By using Modak, you acknowledge that you have read, understood, and agree to all of the above Terms and Conditions. We thank you for trusting Modak to help educate and empower your kids financially, and we are committed to providing a safe and useful service for your family.