Important Information when Lending

This section summarises rights, responsibilities and mechanics you acknowledge when you lend. It is a summary; the Loan Agreement governs, and it incorporates the disclosures shown to you in the app.

Priority Ranking. By choosing a Lending Option you accept its position in the strategy's Priority Ranking: losses are borne by the most junior option first, then Mezzanine, then the more senior options; recoveries apply in reverse. Where a strategy adds an option between existing ones, a more junior option's rank moves down accordingly.

Interest. Interest accrues and is capitalised at each weekly cycle close, and is earned from the start of the cycle at which your request is accepted. The Effective Interest Rate is an annual figure that assumes your capital stays lent, your interest is capitalised for a full year and no withdrawal or payout is made during it; if you withdraw, elect a payout, or the variable rate changes, the interest you actually earn over the year will differ from that figure. Access to capitalised interest is by Withdrawal Request, in the same way as your capital, unless you have elected monthly payouts where that feature is offered.

Requests and cycles. Transaction Cycles close every Tuesday at 6:00 am UTC. Requests are processed at the close of the cycle to which they are Queued, with outcomes confirmed within the 48 hour processing period that follows. A request may be accepted in full, in part or rejected, and a Lending Request may be reallocated to a more senior option if the option chosen is oversubscribed. A request can be cancelled until its cycle closes and not afterwards.

Withdrawals. Withdrawal Requests are filled from the funds available in your Lending Option at each cycle close, in full, in part or not at all, with any remainder queued for following cycles. A request queued for more than five Transaction Cycles is prioritised ahead of all others until filled. Interest continues to accrue on amounts still lent while a request is queued, and losses occurring while a request is queued may affect your loan.

Fixed-rate loans. No Withdrawal Request may be made during the fixed term. Repayment at expiry requires at least 28 days' notice; without it, the loan continues at the prevailing variable rate.

Forced Withdrawal. Kasu or the Credit Originator may initiate a withdrawal of your loan as provided for in your Loan Agreement, returning your balance including capitalised interest to your Digital Wallet.

Your loan's record. The record of your loan held in your Digital Wallet (which your Loan Agreement calls the Token) evidences your rights under your Loan Agreement and cannot be sold or transferred.

Subordination. Where an Institutional Lender holds the senior position in a strategy, your Lending Option ranks behind it under the Subordination Agreement disclosed for that region, which binds you on acceptance.

Variable rates change. A variable Effective Interest Rate may change at any time, up or down, without individual notice. The rate shown in the app for a Lending Option is the current rate, and the rate applying to your loan follows it. A rate shown when you lent is not a rate for the future.

Opt in and opt out. When your funds are to be lent to a named End Borrower, you have 48 hours to opt out, in My Loans; if you do not respond, you are treated as having opted in. Notifications go to your verified email address, and it is your responsibility to receive them.

Capacity and rejection. Every Lending Option has finite capacity. A request may be rejected or only partly accepted, and funds not accepted are returned to your Digital Wallet without interest for the period they were queued.

Loyalty Levels (when live). Once the Loyalty programme launches, Lending Requests and Withdrawal Requests may be ordered by Loyalty Level, and lenders without a Loyalty Level may wait longer in periods of high demand. See Kasu Loyalty.

Changes to strategies and the platform. Lending Strategies may close to new lending, change their Lending Options or rates, or be withdrawn; a Credit Originator may cease originating; and Kasu may change the platform, its partners, its supported currencies and rails, and these docs. Where a change affects an existing loan, your Loan Agreement governs how it is treated.

Third parties. Verification (Didit), bank transfers and currency conversion (Wayex, on Bridge infrastructure, with verification by Persona) and wallet infrastructure are provided by third parties under their own terms, which are shown to you where they apply. Using bank transfers opens an account with Bridge, through Wayex, and Bridge holds the identity documents you provide for it. Kasu is not responsible for these providers' availability or performance.

Tax. Interest you earn may be taxable in your jurisdiction. Kasu does not withhold tax and does not provide tax advice; you are responsible for your own tax reporting. Kasu provides a downloadable statement of your lending activity that may assist you or your adviser.

Where Kasu is available. Kasu is not available in every jurisdiction, and it is not offered in Australia. It is your responsibility to ensure lending on Kasu is permitted where you live.