Flake Credits — Proposed Policy

5.1 What one credit means. If and only if FlakeTrade formally enables the Flake Credit program, a member who successfully contributes one eligible, accepted box of flake in a completed exchange receives one book-entry “Flake Credit” in the member's account, subject to the rules in effect at the time of that contribution. One valid credit may be tendered toward one eligible box offered for redemption through the Platform, subject to availability, completion of the reservation and acceptance process, applicable fees and shipping, and any disclosed equivalence criteria. [DECISION REQUIRED: whether any box of flake is exchangeable for any other box regardless of size, brand, value, or condition; whether a 40-lb standard is mandatory.]

5.2 No expiration. Valid Flake Credits do not expire solely because time passes. There is no dormancy deadline, automatic time-based reduction, or routine inactivity confiscation. Account closure, legal orders, fraud corrections, and other exceptional circumstances are addressed separately below; they do not convert these credits into a promise of unlimited physical inventory.

5.3 No money; no investment. Credits are noncash contractual exchange units limited to the Platform. They are not U.S. dollars, securities, deposits, bank balances, interest-bearing products, cryptocurrency, investment instruments, or representations of ownership of any particular warehouse item. They do not earn interest, dividends, or investment returns. Except where required by law or an approved written remedy, credits cannot be redeemed for money or applied to cash purchases or unrelated merchandise. Credits cannot be sold, assigned, pledged, gifted, exchanged outside the Platform, or transferred to another account without express written authorization and legal approval. No statement in these Terms conclusively determines regulatory treatment, which depends on the implemented program and applicable law.

5.4 When credits are issued. Listing, reservation, presenting a shipping code, or tendering a box to a carrier does not by itself create an irrevocable earned credit. [CHOOSE AND DISCLOSE A PRECISE TRIGGER: for example, carrier delivery plus recipient confirmation or completion of a defined review period and acceptance.] A pending credit may appear separately as “pending,” with no right to redeem it until credited as earned. FlakeTrade may investigate suspected misdescription, nonshipment, damage, duplicated inventory, or fraud before final posting; the member receives notice and a fair opportunity to submit evidence.

5.5 Availability and queueing. Credits do not reserve, guarantee, or require FlakeTrade to purchase or manufacture a particular box, color, blend, brand, price category, or weight on demand. Redemption depends on another eligible box being offered and a transaction being completed. Search listings, available inventory, and matching functionality are not promises of immediate supply. A member may retain credits without time limit while waiting for a suitable listing. However, FlakeTrade will not unilaterally extinguish valid credits merely because inventory is unavailable.

5.5A Express acceptance of matching and liquidity risk; no delivery deadline. By affirmatively committing an eligible box for exchange, a contributing member acknowledges that FlakeTrade is a member-supplied marketplace rather than an inventory guarantor; that contributions by other members are voluntary; that no particular blend, color, brand, location, quantity, compatible alternative, or date of availability is assured; that a credit may remain unredeemed for an indefinite period; and that the contributor bears the commercial risk of waiting for a desirable opportunity. A nonexpiring credit is not a guarantee of timely redemption. FlakeTrade has no obligation to buy, manufacture, acquire, or warehouse matching product solely to satisfy a particular member's preferred redemption timing, except as expressly required by applicable law or any separately adopted, expressly stated program remedy. The member can choose whether to contribute after reviewing these risks; no commitment should be irrevocable before the risk is disclosed and accepted. This allocation does not authorize FlakeTrade to fabricate listings, misrepresent expected availability, intentionally obstruct redemption, arbitrarily erase valid credits, or avoid any nonwaivable duty. The member's obligations and remedies upon an actual platform wind-down remain subject to Section 5.6 and the final approved wind-down policy. [COUNSEL REVIEW REQUIRED: whether credit issuance creates a present enforceable duty to make a redemption opportunity available, and the minimum lawful remedy for total program failure.]

5.5B The FlakeTrade contributor community. Each participating member is invited to help grow the pool of eligible flake by talking honestly with fellow contractors about the Platform, encouraging legitimate contributions, and sharing authorized listing links. We call a member who successfully supplies accepted flake a contributor, not a charitable donor. Participation is commercial exchange, not a charitable donation or a tax-deductible gift. There is no required minimum number of referrals, no guarantee that referrals will join or list product, and no authority to contact others in violation of privacy, anti-spam, telemarketing, or other laws. [BUSINESS DECISION: if management wishes to make reasonable community-promotion efforts a contractual duty rather than an invitation, counsel must define an objective, non-coercive standard, remedies, and safeguards. Recommended default: voluntary encouragement, not a condition of earned credits.]

5.5C Public contributor recognition and accurate metrics. Subject to member display preferences and privacy law, the Platform may show a factual, auditable tally such as: “This verified contractor has contributed [N] accepted boxes through FlakeTrade. How many have you contributed?” Counts must reflect actual accepted, eligible boxes, not merely listings, reservations, pending shipments, disputed submissions, withdrawn boxes, or fictional demo data. A contribution does not mean the contributor donated product without exchange consideration; avoid misleading claims about charitable status or public benefit. Separately label boxes contributed, boxes received, trades completed, and currently available boxes, and correct figures after any adjudicated reversal. Display only privacy-safe identity such as an opted-in business display name or alias; do not expose contact details or facilitate off-platform circumvention. Public badges or testimonials must not misrepresent product quality, safety, or endorsements; disclose material incentives when applicable.

5.5D Referral invitations and contact data. Members may, where enabled, enter fellow contractors' business email addresses or telephone numbers to suggest that FlakeTrade notify them of a newly listed box, subject to the separate Referral/Invitation Policy and legally required consents. A referring member represents that information was collected lawfully and is accurate, that the referral is relevant to the recipient's trade, and that the member is not uploading purchased, scraped, or bulk contact lists. This representation does not substitute for any recipient consent required by law. Referring members may not upload another person's contact details for public display or bypass platform rules. FlakeTrade may reject, rate-limit, suppress, or decline invitations, including all promotional SMS absent recipient-verified consent. A member's ability to earn or retain already-valid credits does not depend on sending invitations. Recipients receive clear sender identification, applicable opt-out controls, and privacy disclosures; FlakeTrade neither promises delivery nor grants the referrer access to recipient consent status beyond a minimal outcome. The applicable Privacy Policy must explain source, purpose, retention and deletion of third-party contact data.

5.6 Program continuity and remedies — MUST BE APPROVED BEFORE LAUNCH. If the program is suspended, materially modified, or terminated, FlakeTrade will provide a commercially reasonable and legally compliant process for existing valid credits, with advance notice when feasible. [DECISION REQUIRED: specify enforceable termination/wind-down remedy—for example, a defined redemption window plus access to a substitute-equivalent fulfillment program and, if legally required or voluntarily elected, a defined cash or alternative settlement rule.] Until this section is finalized and disclosed, FlakeTrade must not issue real credits. A blanket promise to confiscate all credits on termination is not part of these draft Terms. No statement of unlimited duration should imply guaranteed redemption against inventory that does not exist.

5.7 Reconciliation and corrections. FlakeTrade may correct demonstrable technical, duplicate, fraudulent, or mistaken ledger entries after notice and documented review. It may temporarily freeze a disputed quantity while examining evidence. A member may contest a correction through the dispute procedure. Credits earned through completed legitimate transactions will not be arbitrarily revoked or retroactively devalued.

5.8 Partial units, account death or dissolution, suspension, bankruptcy, and inactivity. [DECISIONS REQUIRED: one-credit-per-sealed-box only; no fractions; consequences of death, business sale/dissolution, prolonged suspension, permanent ban, account closure, business failure, and bankruptcy; whether claims are unsecured; transfer/estate rights; dormant-property obligations.] Any final provision must conform to applicable state unclaimed-property, consumer, commercial, and insolvency law; it cannot extinguish rights that law protects. Account closure does not automatically erase accrued legal claims.

5.9 Inventory backing and solvency disclosure. Credits are recorded obligations of the Platform program only to the extent described in these Terms; they are not a warehouse receipt, evidence that FlakeTrade physically holds a corresponding box, or a promise that every outstanding credit is backed one-for-one by inventory physically held by FlakeTrade. Members should not contribute goods expecting immediate or guaranteed matching inventory. FlakeTrade must maintain an internally reconciled ledger and a documented operational plan for outstanding redemptions. [DECISION REQUIRED: whether the business will establish inventory, supplier commitments, cash reserves, or a backstop; reserve and accounting policy.]