Modak Terms and Conditions

Effective Date: September 23rd, 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 or teens to manage money, build financial skills, participate in rewards programs, and access other family financial management features available through the Service. Banking products and services made available through the Service are provided by the applicable Sponsor Bank and are governed by your applicable Deposit Account Agreement, debit card disclosures, and other banking disclosures provided by the applicable Sponsor Bank. These Terms describe your rights and obligations when using the Modak platform and its features.

These Terms should be read together with Modak’s Privacy Policy and any additional terms, policies, or disclosures that apply to specific features or services made available through the Service, such as the MBX Policy or promotional terms, which are incorporated by reference where applicable. Banking products and services made available through the Service are governed by your applicable Deposit Account Agreement, debit card disclosures, and other banking disclosures, which are presented and accepted separately during the account opening process.

If you are a parent or legal guardian, you agree to these Terms on your own behalf and on behalf of the minor child or teen user of the Service. You represent that you are the parent or legal guardian of any Child User for whom you establish or manage a Modak Account 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 the Service and close your Modak Account.

Definitions

Parties & Banking Relationship

“Sponsor Bank” – The FDIC-insured financial institution identified in your 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 Sponsor Bank.

“Modak Account” – A user account that provides access to the Modak Platform and its non-bank features and services. A Modak Account may be established by an eligible adult user, by an eligible Child User age 13 or older, or by a Parent on behalf of a Child User, subject to Modak’s applicable eligibility and consent requirements. Available features may differ based on the user’s age, eligibility, parental permissions, and other applicable requirements. A Modak Account is not a bank account or bank product, does not itself hold customer deposits, and does not require the user to have a Deposit Account or Modak Card. Eligible users may separately access banking products and services provided by the applicable Sponsor Bank through the Modak Platform.

“Parent Accountholder” – An eligible adult parent or legal guardian who establishes a Modak Account and, where applicable, opens a Deposit Account provided by the applicable Sponsor Bank. The Parent Accountholder is the legal owner of the Parent Deposit Account and any Child Deposit Accounts established in connection with their family relationship.

“Parent Deposit Account” – A Deposit Account provided by the applicable Sponsor Bank and owned by the Parent Accountholder. The Parent Deposit Account is a banking product governed by the applicable Deposit Account Agreement and other banking disclosures provided by the applicable Sponsor Bank.

“Child Deposit Account” – A Deposit Account provided by the applicable Sponsor Bank and established by and owned solely by the Parent Accountholder for use by an eligible Child User. The Child User may be provided authorized access to the Child Deposit Account and an associated Modak Card but has no ownership interest in the Child Deposit Account or the funds held in it. The Parent Accountholder retains legal ownership and responsibility for the Child Deposit Account, subject to the applicable Deposit Account Agreement and other banking disclosures.

“Co-Parent” or “Additional Parent” – An eligible adult who has been invited by the Parent Accountholder and approved by Modak to access designated features associated with one or more Child Users. A Co-Parent receives only the access and permissions made available through the Service and granted by the Parent Accountholder. A Co-Parent does not become an owner of the Parent Accountholder’s Parent Deposit Account, any Child Deposit Account, or any funds held in those accounts. The Parent Accountholder remains the sole owner of the Parent Deposit Account and any Child Deposit Accounts established by the Parent Accountholder, unless otherwise provided by the applicable Deposit Account Agreement.

“Child User” – An individual under age 18 who is authorized to access applicable features of the Modak Platform. A Parent may establish and manage a Modak Account for a Child User, including a Child User under age 13. An eligible Child User age 13 or older may also establish a Modak Account directly, subject to Modak’s applicable eligibility and parental consent requirements. The features and functionality available to a Child User may vary based on age, eligibility, parental permissions, and whether the Child User has access to banking products or services through the Modak Platform. Where a Parent Accountholder establishes a Child Deposit Account for a Child User, the Child User is an authorized user only and has no ownership interest in the Child Deposit Account or the funds held in it.

“Modak Card” or “Card” – A Visa® debit card available through the Service that enables a Parent Accountholder or authorized Child User to access and spend funds held in the applicable Deposit Account, subject to the terms of the applicable Deposit Account Agreement and related banking disclosures. The Card is issued by the applicable Sponsor Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit cards are accepted.

Subscription plans

“MoBasic” – Modak’s standard subscription plan available without a recurring subscription fee. MoBasic provides access to core platform features 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.

Rewards & Promotional Benefits

All rewards and promotional benefits described herein are products of Modak and not of the Sponsor Bank.  Sponsor Bank shall have no responsibility or liability for the rewards or promotional benefits offered by Modak.

“MBX” – Modak’s in-app reward points (also called “Mobucks”) that users can earn through eligible activities (for example, completing chores or challenges, using certain app features, or making purchases). MBX points may be redeemed for certain rewards or benefits, subject to applicable eligibility requirements and the terms of the applicable promotional offering. Only users who have an eligible Deposit Account with an active Modak Card may redeem MBX for monetary rewards (conversion to U.S. dollars). Certain non-monetary rewards or promotions may have different eligibility requirements, which will be described in the applicable promotional terms. 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 who satisfy the applicable eligibility requirements. Eligibility requirements, including any requirement to maintain an eligible Deposit Account or active Modak Card, will be described in the applicable promotional terms. 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 transactions associated with the Parent Deposit Account.

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, Modak Accounts, the MBX rewards system, educational content, and other features and functionality provided by Modak. Through the Services, Modak also provides access to and communications related to certain banking products and services provided by the applicable Sponsor Bank, including Deposit Accounts and the Modak Card. 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 Account as a Parent Accountholder, 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 creating a Modak 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 the applicable Sponsor Bank 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 or managing a Modak Account for a Child User, 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, where applicable, a PIN or biometric login) to securely access the Service. 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 believe it has been compromised. Parents should also ensure their Child understands not to share their app password or Card PIN except with the Parent. You are responsible for all activities that occur through the Service using your login credentials. If you become aware of any unauthorized access or believe your login credentials or PIN have been compromised, you must notify Modak immediately and promptly update your credentials.

Activation of your access to the Modak platform does not guarantee approval or activation of a Deposit Account or Modak Card. Banking products and services made available through the Service are subject to approval by the applicable Sponsor Bank and may require additional activation steps. The activation and use of any Deposit Account or Modak Card are governed by your applicable Deposit Account Agreement and related banking disclosures.

Modak or the applicable Sponsor Bank may, in its respective discretion and subject to applicable requirements, refuse or restrict access to products or services for which applicable eligibility, legal, security, fraud, or compliance requirements are not satisfied. The applicable Sponsor Bank may determine eligibility for and refuse to open or may restrict or close a Deposit Account in accordance with the applicable Deposit Account Agreement and related banking disclosures. Modak may limit the number of Child Users or Modak Accounts that may be associated with a Parent Accountholder and may restrict access to the Service as permitted under these Terms. The Parent Accountholder may invite one or more eligible Co-Parents to access designated features associated with Child Users, subject to the eligibility requirements and limitations described in these Terms.

Modak Account Structure: Parent and Child Users

Parent Accountholder Responsibilities

A Parent Accountholder may use their Modak Account to access the Service and, where applicable, establish and manage access for one or more Child Users. A Parent may establish a Modak Account on behalf of a Child User, including a Child User under age 13. An eligible Child User age 13 or older may also establish a Modak Account directly, subject to Modak’s applicable eligibility and parental consent requirements.

The Parent Accountholder is responsible for supervising each Child User’s use of the Service, including monitoring activity, educating the Child User on proper use of the Service and, where applicable, the Modak Card, and managing the permissions and controls available to the Parent through the Service.

The Parent Accountholder may view activity associated with linked Child Users, receive activity notifications, establish available parental controls, manage chores and allowances, and use other family management functionality made available through the Service. Available features and controls may vary based on eligibility, subscription plan, product availability, and whether banking products have been established for the Parent Accountholder and Child User.

Where banking products are made available through the Service, the applicable Deposit Accounts and Modak Cards are provided by the applicable Sponsor Bank and are governed by the Deposit Account Agreement and related banking disclosures. The Parent Accountholder is the legal owner of the Parent Deposit Account and any Child Deposit Account established for a Child User. A Child User is an authorized user only and has no ownership interest in a Child Deposit Account or the funds held in it.

The Parent Accountholder is responsible for supervising each Child User’s use of any Child Deposit Account and Modak Card made available to the Child User and for managing the controls available to the Parent Accountholder through the Service. Additional ownership, access, transaction, and other responsibilities associated with the Deposit Accounts and Modak Cards are set forth in the applicable Deposit Account Agreement and related banking disclosures.

A Parent Accountholder may close a Modak Account established on behalf of a Child User or remove a Child User’s access where permitted through the Service. Closing a Modak Account or removing access to the Service does not necessarily close an associated Deposit Account or Modak Card. Closure of a Deposit Account or Modak Card is subject to the applicable Deposit Account Agreement and Modak’s applicable account closure procedures.

Age of Majority: When a Child User reaches age 18 (or the applicable age of majority), the Child User will be required to satisfy Modak’s applicable adult eligibility and identity verification requirements, including Know Your Customer (“KYC”) requirements, in order to continue accessing applicable banking features and services through the Modak Platform. Modak will provide advance notice to the Parent Accountholder and Child User regarding the transition and any actions required.

Beginning when the Child User reaches the applicable age of majority, certain funding or account functionality may be restricted while required identity verification is pending. The individual will generally have 30 days to successfully complete the required verification. If the required verification is not successfully completed within the applicable timeframe, the individual’s access to banking features associated with the Child Deposit Account may be terminated or restricted in accordance with the applicable Deposit Account Agreement and Modak’s account transition procedures.

Reaching the age of majority does not change the Parent Accountholder’s ownership of the Child Deposit Account or the funds held in that account. Any continuation, modification, or termination of the Child Deposit Account and treatment of funds will be governed by the applicable Deposit Account Agreement and related banking disclosures.

Co-Parent Access and Responsibilities

Modak may allow the Parent Accountholder to invite another eligible adult (“Co-Parent”) to participate in managing features associated with one or more designated Child Users. Co-Parent access is an optional feature and may only be available under certain subscription plans or product offerings. All Co-Parents must successfully complete any identity verification, security, eligibility, compliance, or other onboarding requirements established by Modak and, where applicable, its Sponsor Bank 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 the Child User(s) for whom a Co-Parent may access designated features. A Co-Parent will only have access to the Child User(s) specifically designated by the Parent Accountholder and will not automatically receive access to all Child Users associated with the Parent Accountholder.

Subject to the permissions available within the Service, a Co-Parent may view information, monitor activity, receive notifications, provide funds for a designated Child User, manage chores or allowances, approve or assign activities, communicate with the Child User, and perform other functions made available by Modak. Available permissions may change over time and may vary by subscription plan or product offering.

A Co-Parent is an authorized user of the Service only. Co-Parent access does not make the Co-Parent an owner of the Parent Accountholder’s Parent Deposit Account, any Child Deposit Account, or any funds held in 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 credentials while accessing the Service. The Parent Accountholder remains responsible for ensuring they have the legal authority to invite a Co-Parent and grant the applicable access.

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 Accountholder’s Modak Account, any Modak Account associated with a Child User, or any Deposit Account and does not affect ownership of funds held in a Deposit Account.

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 User must use their Modak Account and the Service responsibly and in accordance with these Terms and applicable permissions or rules established by their Parent.

Where a Child User is provided access to a Child Deposit Account or Modak Card, the Child User must use the Deposit Account and Card responsibly and in accordance with these Terms, the applicable Deposit Account Agreement, and applicable parental controls. The Child User is an authorized user only and does not own the Child Deposit Account or funds held in it.

Child Users are responsible for protecting their login credentials, Card, and PIN and should promptly notify their Parent of a lost or stolen Card, compromised credentials, or suspicious activity so appropriate action can be taken.

A Child User’s access to Modak features, a Child Deposit Account, or a Modak Card may be restricted or revoked by the Parent Accountholder or Modak as permitted under these Terms, the applicable Deposit Account Agreement, or applicable law.

Child Users may not independently link external bank accounts or use external funding methods except where expressly permitted by the Service and applicable banking terms.

Multiple Children

A Parent Accountholder may establish or manage Modak Accounts for multiple eligible Child Users. Each Child User may have separate features, permissions, chores, allowances, rewards, and other settings within the Service.

Where banking products are available and eligibility requirements are satisfied, the Parent Accountholder may also establish a separate Child Deposit Account and obtain a Modak Card for each eligible Child User. Each Child Deposit Account is owned by the Parent Accountholder, with the applicable Child User receiving authorized access only.

The Parent Accountholder is responsible for separately managing the features, permissions, and controls applicable to each Child User. These Terms apply to each Child User and each Modak Account accessed or managed through the Parent Accountholder’s relationship with Modak.

Account Ownership of Funds: The Parent Accountholder is the legal owner of the Parent Deposit Account, any Child Deposit Accounts established for a Child User, and all funds held in those Deposit Accounts. Child Users are authorized users of the applicable Child Deposit Account and do not have an ownership interest in the Deposit Account or the funds held in it. Funds associated with your Deposit Accounts are held by the applicable Sponsor Bank in accordance with your applicable Deposit Account Agreement. Modak does not accept or hold customer deposits.

FDIC Insurance: The Deposit Account provided by the Sponsor Bank may be eligible for FDIC insurance coverage. See the Deposit Account Agreement for terms and conditions.

Not a Bank: Modak is a financial technology company, not a bank. Banking products and services made available through the Service are provided by the applicable Sponsor Bank and are governed by your applicable Deposit Account Agreement and related banking disclosures. Modak provides the technology platform and family financial management features, including rewards, subscription benefits, educational tools, chores, allowances, and other services available through the Service.

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, where applicable, transferring funds to a Child Deposit 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. Additional terms applicable to these features are described in the Chore Management and Allowance Payments sections below.

Chore Management: Where available as part of the applicable subscription plan, the Parent Accountholder and any authorized Co-Parent may use the Modak app to create lists of tasks or chores for a Child User, assign due dates or frequencies, and optionally associate a monetary reward with successful completion. Common uses of this feature include setting daily or weekly responsibilities (e.g., cleaning a room or completing homework) and tracking whether the Child User completes them. The specifics of each chore, including its requirements, due date, frequency, and any associated monetary reward, are determined by the Parent Accountholder or authorized Co-Parent using the feature. The Child User may view assigned chores in the app and mark them as completed, subject to approval by the Parent Accountholder or authorized Co-Parent, where applicable. The Parent Accountholder remains ultimately responsible for the permissions and activity associated with the Child User, including actions taken by an authorized Co-Parent. Where a monetary reward is associated with a chore, the Child User must have access to an eligible Child Deposit Account to receive the reward. The Service provides a means for the Parent Accountholder or authorized Co-Parent to communicate applicable payment instructions to the Sponsor Bank, and any resulting movement of funds is processed by the Sponsor Bank in accordance with the applicable Deposit Account Agreement. The Modak app may send reminders or notifications regarding chores, but Modak does not verify chore completion or guarantee that any monetary reward will be paid. This feature is provided solely as an educational and organizational tool.

Allowance Payments: Where available as part of your subscription plan, the Parent Accountholder or an authorized Co-Parent may use the Service to schedule recurring or one-time allowance payments for a Child User. The Service provides a means for the Parent Accountholder or authorized Co-Parent to communicate instructions to the applicable Sponsor Bank regarding the movement of available funds from the applicable funding Deposit Account to the Child Deposit Account associated with the designated Child User.

The Parent Accountholder or authorized Co-Parent may configure allowance payment instructions to occur automatically on a weekly, monthly, or other available schedule and may choose to associate an allowance with chores or other in-app activities where such features are available. Depending on the settings selected, allowance payment instructions may require manual approval or may be communicated automatically based on the schedule established through the Service. Scheduled allowance instructions may be modified, suspended, canceled, or overridden at any time before they are communicated for processing by the Parent Accountholder or an authorized Co-Parent with the appropriate permissions.

By establishing an automated allowance, you authorize Modak, through the Service, to communicate your payment instructions to the applicable Sponsor Bank and authorize the applicable Sponsor Bank to process the instructed transfer from the applicable funding Deposit Account to the designated Child Deposit Account. Modak does not receive, hold, or transfer the funds associated with an allowance payment.

Allowance payment instructions will only be processed subject to sufficient available funds in the applicable funding Deposit Account and any applicable account restrictions, transaction limits, and other requirements. If sufficient funds are unavailable or the payment cannot otherwise be processed, the allowance payment may not be completed. Neither Modak nor the applicable Sponsor Bank is obligated to advance funds to complete an allowance payment.

Allowance payments and the underlying Deposit Accounts remain subject to the terms of the applicable Deposit Account Agreement and related banking disclosures.

Parent-Child Agreement: Any arrangement regarding chores and allowance is essentially an agreement between the parent and child. Modak provides the mechanism to record chores and, where applicable, communicate payment instructions to the applicable Sponsor Bank. 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

Rewards & Promotional Benefits All rewards and promotional benefits described herein are products of Modak and not of the Sponsor Bank. Sponsor Bank shall have no responsibility or liability for the rewards or promotional benefits offered by Modak.

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 eligible Deposit 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 eligible Deposit Account can redeem MBX for cash or cash-equivalent rewards. If you do not have a Card (for example, you’re using the Service without the banking features), you may still earn MBX points but will not be able to convert them to money until you have an active Modak Card and eligible Deposit Account. Redemption typically works by converting MBX into a deposit of funds into the applicable Deposit Account, which can then be accessed using the Modak 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 an eligible Deposit 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

Banking products and services made available through the Modak Platform, including Deposit Accounts and Modak Cards, are provided by your applicable Sponsor Bank and are governed by your applicable Deposit Account Agreement, Cardholder Agreement, Fee Schedule, and other banking disclosures provided during account opening or otherwise made available to you. Those agreements govern your rights and obligations with respect to your Deposit Account, Modak Card, banking transactions, and related services.

Modak provides the technology platform and related services that allow you to access and manage available features and, where applicable, access banking products and services provided by the applicable Sponsor Bank. Certain features and functionality may vary based on your subscription plan, account status, eligibility, age, or the requirements of your applicable Sponsor Bank.

Modak may, at any time and without prior notice where permitted by law, suspend, limit, restrict, or discontinue access to any feature, service, card management capability, or other functionality if Modak reasonably believes doing so is necessary to protect the security or integrity of the Platform, comply with applicable law or the requirements of your applicable Sponsor Bank, investigate suspected fraud or misuse, protect users or third parties, perform maintenance, or address operational, technical, or security issues.

While Modak facilitates access to banking services, Modak is a financial technology company and not a bank. Modak does not guarantee that debit cards, payment networks, merchants, ATMs, digital wallets, or other third-party services will be available or function without interruption and will not be liable for delays, interruptions, processing failures, declined transactions, or other events caused by such third parties.

Nothing in these Terms modifies or supersedes the rights, obligations, disclosures, limitations, or protections contained in your applicable Deposit Account Agreement, Cardholder Agreement, Fee Schedule, or other banking documentation provided by your applicable Sponsor Bank, all of which govern your banking relationship.

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 may view information regarding the Child User’s activity through the Service and, where applicable, information regarding the Child Deposit Account, including available balances, transaction history, chore completion status, allowance activity, MBX activity, and other information made available through the Platform. Information is generally displayed in real time or near real time but may be delayed due to processing or technical reasons. If you believe any activity is unauthorized or suspicious, you should notify Modak immediately.

Unauthorized Transactions and Card Disputes: If you or your Child User believe that a Modak Card, Deposit Account, Modak Account, login credentials, or other security information has been lost, stolen, compromised, or used without authorization, you should immediately lock the Card (if available) and notify Modak. The rights, responsibilities, procedures, timelines, liability limitations, and error resolution processes applicable to unauthorized transactions and card disputes are governed by the Deposit Account Agreement, Cardholder Agreement, and other applicable banking disclosures provided by your applicable Sponsor Bank. Please refer to those agreements for complete information regarding how to report unauthorized transactions and submit disputes.

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 the Modak Platform, you agree to use the Services only for lawful purposes and in accordance with these Terms, your applicable Deposit Account Agreement, and any other agreements governing your use of the Services or your Account. You are strictly prohibited from:

Illegal or Fraudulent Use: Using the Modak Account or Modak 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 Modak Account, access to the Service, 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 described in the Modak Privacy Policy, the privacy policy of your applicable Sponsor Bank, or as otherwise permitted or required by applicable law. Please refer to those privacy policies for complete details regarding the collection, use, disclosure, and protection of your personal information. 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 designated features associated with a Child User, Modak may share information relating to that Child User as necessary to provide the requested functionality of the Service. A Co-Parent will only have access to the Child User(s) specifically designated by the Parent Accountholder and to the information and features permitted through the Service.

Electronic Communications: By using the Modak Platform, you agree to receive electronic communications from Modak regarding your use of the Services, including security alerts, fraud notifications, account updates, service announcements, customer support communications, and other operational messages through the app, website, email, SMS, push notification, or other electronic means using the contact information you provide. You are responsible for maintaining current contact information and reviewing these communications promptly. Your consent to receive legally required banking disclosures is governed by the applicable Electronic Communications Agreement, E-Sign Disclosure and Consent, and other agreements provided by your applicable Sponsor Bank.

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 Modak Platform features and, where eligible, may access banking products and services provided by the applicable Sponsor Bank, including a Deposit Account and virtual Modak Card. A Child User may also be eligible to receive a physical Modak Card subject to applicable eligibility and funding requirements 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 features, services, or transactions made available through the Modak Platform may be subject to fees. Any applicable fee will be clearly disclosed before you authorize or use the applicable feature or service.

The fees, charges, and terms applicable to your Deposit Account, Modak Card, transactions, international transactions, card issuance, replacement cards, expedited shipping, inactivity (if applicable), and other banking services are governed by your applicable Deposit Account Agreement, Fee Schedule, and other disclosures provided by your applicable Sponsor Bank. Please refer to those documents for complete information regarding applicable fees and charges.

Third parties, including external financial institutions, payment networks, merchants, mobile carriers, or other service providers, may assess fees that are outside of Modak’s control. Modak is not responsible for fees charged by third parties.

Account Suspension, Termination, and Cancellation

If your access to paid subscription benefits is temporarily suspended due to compliance, risk, fraud prevention, security, legal, regulatory, or operational reasons, your subscription will remain active and subscription fees may continue to accrue during such suspension unless otherwise required by applicable law or determined by Modak in its sole discretion. Suspensions are generally intended to be temporary. Modak may, in its sole discretion, provide subscription credits, refunds, or other accommodations where appropriate.

Closing Your Modak Account

You may discontinue your use of the Modak Platform at any time by following the account closure process made available through the Service or by contacting Modak Customer Support.

The closure of your Deposit Account, Modak Card, any remaining account balance, and other banking services is governed by your applicable Deposit Account Agreement and the other agreements and disclosures provided by your applicable Sponsor Bank. Please refer to those documents for complete information regarding account closure procedures, treatment of funds, and any applicable banking requirements.

Suspension or Termination by Modak

Modak may suspend, restrict, or terminate your or your Child User’s access to the Modak Platform, in whole or in part, at any time where reasonably necessary to:

• protect the security or integrity of the Platform or Services;
• investigate or prevent suspected fraud, financial crime, unauthorized activity, abuse, or other prohibited conduct;
• comply with applicable law, court orders, regulatory requirements, or the requirements of your applicable Sponsor Bank;
• enforce these Terms or any other applicable agreements governing your use of the Services;
• address operational, technical, or security issues; or
• protect Modak, its users, or third parties from harm.

Where permitted by law, Modak will generally provide notice of a suspension or termination. During a suspension, access to some or all Services may be limited while Modak reviews the applicable circumstances. If the issue is resolved, Modak may restore access. If not, Modak may permanently terminate access to the Services.

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

Effect of Termination

Upon termination or closure of your access to the Modak Platform:

• Your right to access and use the affected Services will end.
• Any subscription benefits associated with your Modak Account will terminate in accordance with these Terms.
• Treatment of your Deposit Account, Modak Card, remaining funds, transaction history, and other banking services will be governed by your applicable Deposit Account Agreement and the other agreements and disclosures provided by your applicable Sponsor Bank.
• Unless otherwise provided under the applicable rewards terms, unredeemed MBX may be forfeited upon account closure or termination. Modak may, in its sole discretion, permit redemption in limited circumstances.
• Modak may retain account information and records as required by applicable law and its record retention policies.
• Any provisions of these Terms that by their nature should survive termination, including provisions relating to intellectual property, disclaimers, limitations of liability, dispute resolution, indemnification, and outstanding obligations, will remain in effect following termination.

If you have questions regarding closing your account or your access to the Services, please contact Modak Customer Support.

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 Modak Platform and Services provided by Modak. 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., card networks, mobile OS platforms, telecommunications providers, or other technology providers), we cannot guarantee their performance. For example, there may be times when a card network, mobile operating system, telecommunications provider, or other third-party technology service experiences an outage; these events may be outside our control. 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 applicable law, Modak, its affiliates, licensors, service providers, officers, directors, employees, contractors, and agents shall not be liable for any indirect, incidental, consequential, special, exemplary, or punitive damages, or for any loss of profits, revenue, goodwill, data, business opportunities, or other intangible losses arising out of or relating to your use of, or inability to use, the Modak Platform or Services, regardless of the legal theory asserted and even if Modak has been advised of the possibility of such damages.

The rights, obligations, liabilities, and customer protections relating to your Deposit Account, Modak Card, unauthorized transactions, payment processing, funds availability, error resolution, account ownership, account closure, and other banking services are governed by your applicable Deposit Account Agreement and the other agreements and disclosures provided by your applicable Sponsor Bank. Nothing in these Terms modifies or replaces those agreements.

Without limiting the foregoing, Modak shall not be liable for losses or damages arising from:

• Your or any authorized user’s use or misuse of the Modak Platform or Services;
• Decisions made by you or your family regarding budgeting, savings, allowances, chores, spending, rewards, or other financial activities;
• The acts, omissions, products, or services of third parties, payment networks, merchants, telecommunications providers, internet service providers, or other service providers;
• Temporary interruptions, delays, maintenance, technical failures, or unavailability of the Modak Platform or third-party services;
• Promotional programs, including MBX, Cashback, Savings Boost, Checkout Fee Coverage, subscription benefits, or other promotional offerings that may be modified, suspended, or discontinued in accordance with these Terms;
• Unauthorized access resulting from your failure to protect your credentials, devices, or security information;
• Any action Modak takes in good faith to comply with applicable law, regulatory requirements, court orders, requests from governmental authorities, the requirements of your applicable Sponsor Bank, fraud prevention obligations, security concerns, or risk management practices.

In no event shall Modak’s aggregate liability arising out of or relating to your Modak Account, these Terms, or Services provided by Modak exceed the greater of:

(a) the total fees paid directly to Modak by you during the three (3) months immediately preceding the event giving rise to the claim; or

(b) One Hundred U.S. Dollars (US $100).

Nothing in these Terms limits or excludes liability that cannot be limited or excluded under applicable law, including liability for gross negligence, willful misconduct, fraud, or any other liability that applicable law prohibits from being disclaimed or limited.

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 Sponsor Bank 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 User or other authorized users through the Service), (ii) your breach of these Terms or any other applicable policy or agreement with Modak or the Sponsor Bank, (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

This Dispute Resolution and Arbitration section applies to disputes arising out of or relating to your Modak Account, these Terms, or Services provided by Modak. Disputes arising out of or relating to a Deposit Account, Modak Card, or other banking product provided by the applicable Sponsor Bank are governed by the dispute resolution provisions of the applicable Deposit Account Agreement and related banking disclosures.

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 any notice of dispute to Modak using the contact information provided in the “Contact Information” section of these Terms. The notice must include your name and contact information, describe the nature and basis of the dispute or claim, and state the specific relief sought.

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 Delaware, 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 will be responsible for its own attorneys’ fees, except where applicable law or the arbitrator’s authority permits an award of attorneys’ fees or costs.

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 Modak using the contact information provided in the “Contact Information” section of these Terms, including 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 (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, together with the policies, agreements, disclosures, and supplemental terms referenced herein, as applicable, govern your use of the Service and any related products or services. These include, as applicable, Modak’s Privacy Policy, MBX Policy, promotional terms, the applicable Deposit Account Agreement, Cardholder Agreement, Fee Schedule, debit card disclosures, Electronic Communications Agreement, E-Sign Disclosure and Consent, and other banking disclosures or documentation provided by the applicable Sponsor Bank. Modak policies and supplemental terms govern your relationship with Modak and use of the Service, while the applicable Sponsor Bank agreements, disclosures, and other banking documentation govern your Deposit Account, Modak Card, and other banking products and services provided by the applicable Sponsor Bank. Together, the documents applicable to your relationship supersede any prior understandings or agreements, whether oral or written, relating to the same subject matter. Any waiver of any provision of these Terms by Modak 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 Sponsor Bank 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:

Phone number: +1 833-966-2428

Email: hi@modakmakers.com

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

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.