USDC Earn Terms and Conditions

1. INTRODUCTION

These USDC Earn Terms (the “USDC Earn Terms”) apply, in addition to Luno’s standard Terms of Use (available at https://www.luno.com/en/legal/terms-of-use-za) (the “Terms of Use”), to any person that utilises the Services (defined below).

These USDC Earn Terms form a legally binding agreement between you and Luno (Pty) Ltd (“Luno”) and are an addendum to the Terms of Use. In the event of any conflict between these USDC Earn Terms and the Terms of Use, these USDC Earn Terms shall prevail.

By opening a USDC Earn Wallet and using the Services, you unconditionally accept these USDC Earn Terms.

2. DEFINITIONS AND INTERPRETATION

In these USDC Earn Terms:

1. “Account Holder” means the person or entity holding a Luno Account and using the Services;

2. “Earn Wallet” means the USDC-denominated wallet made available to an Account Holder on the Luno platform for purposes of using the Services;

3. “Interest” means the yield or return allocated by Luno to an Earn Wallet balance, expressed as an annual percentage rate but credited daily on a compounding basis;

4. “Luno” means Luno Proprietary Limited (Registration No. 2013/075107/07), a company incorporated in South Africa, with principal place of business at 19th and 20th Floors, The Box, 9 Lower Burg Street, Cape Town, 8001;

5. “Repo Agreement” means an agreement pursuant to which ownership of USDC is transferred by the Account Holder to Luno when deposited into an Earn Wallet, subject to Luno’s obligation to return an equivalent amount of USDC (less withdrawals), together with any Interest earned thereon at such rate as is communicated by Luno to you from time to time, upon request;

6. “Services” means the USDC Earn product, whereby Account Holders transfer USDC to an Earn Wallet in exchange for Interest, as further described in clause 4;

7. “USDC” means USD Coin, a fiat-backed stablecoin issued by Circle Internet Financial, LLC; and

8. “USDC Wallet” means the Account Holder’s ordinary USDC wallet on the Luno platform, distinct from an Earn Wallet.

Unless otherwise defined, capitalised terms have the meaning given to them in the Terms of Use.

3. RELATIONSHIP BETWEEN LUNO AND THE ACCOUNT HOLDER

When you transfer USDC to your Earn Wallet:

1. you agree that the USDC is transferred to Luno under a Repo Agreement and that ownership of the USDC passes to Luno;

2. Luno may use, invest, or otherwise deal with the USDC at its discretion in order to generate yield, provided that Luno will not lend the USDC to third parties; and

3. you will be entitled to receive Interest credited to your Earn Wallet, but not any yield or spread earned by Luno in excess thereof.

You acknowledge and agree that these USDC Earn Terms do not give rise to any fiduciary, advisory, or trust relationship.

4. DESCRIPTION OF SERVICES

1. By opening an Earn Wallet, you authorise Luno to hold and invest your USDC in accordance with the Repo Agreement.

2. Interest accrues daily and compounds automatically, and will be credited to your Earn Wallet.

3. The Interest rate may vary from time to time and is not guaranteed. Current indicative rates are published in the Luno app or on the Luno website.

4. You may transfer USDC into your Earn Wallet, or request to transfer USDC out of your Earn Wallet into your ordinary USDC Wallet, at any time. Luno will use its best efforts to process such transfers promptly, but reserves up to two (2) business days to complete any such transfers.

5. While in the Earn Wallet, USDC cannot be sold, transferred, or otherwise used for transactions until transferred back into your ordinary USDC Wallet.

5. FEES

1. No transfer fees apply for moving USDC into or out of an Earn Wallet.

2. No management or performance fees are charged to Account Holders.

3. You will be entitled to the full yield displayed to you in your Earn Wallet, without any additional fees, commissions or charges applying. For the sake of transparency, you acknowledge that Luno may earn a spread between the yield it generates on funds transferred to it, pursuant to the Repo Agreement, and the Interest that is credited to you as Account Holder.

6. ACCOUNT HOLDER RESPONSIBILITIES

You acknowledge and agree that you:

1. remain responsible for understanding the nature and risks of the Services;

2. will only use the Services in compliance with applicable laws, including anti-money laundering and sanctions requirements;

3. understand that Luno may require up to 2 business days to process withdrawals;

4. have no rights to instruct Luno on how to invest or deploy USDC once transferred into the Earn Wallet; and

5. are solely responsible for any tax liabilities arising from your use of the Services.

7. RISKS

You acknowledge and accept the following risks:

1. Interest not guaranteed: Interest rates may change and may be lower than advertised.

2. Delay in withdrawals: Transfers from an Earn Wallet may take up to 2 business days.

3. Stablecoin risk: USDC is intended to maintain a 1:1 peg with USD, but de-pegging or price fluctuations are possible.

4. Regulatory risk: Changes to laws or regulations governing stablecoins, financial services, or cross-border flows may affect the Services.

While Luno seeks to invest funds in regulated and secure institutions, you acknowledge that absolute safety cannot be guaranteed.

8. DISCLAIMER OF WARRANTIES

The Services are provided “as is” and without warranties of any kind. Luno disclaims all liability for the performance of USDC, market fluctuations, or the actions of third-party custodians and institutions.

9. LIMITATION OF LIABILITY

In no event shall Luno or its affiliates be liable for any indirect, consequential, or punitive damages arising out of or related to the Services. Luno’s maximum liability to any Account Holder shall not exceed the amount of Interest actually credited to the Account Holder’s Earn Wallet in the 6-month period preceding the event giving rise to liability.

10. TERMINATION AND SUSPENSION

Luno may suspend or terminate the Services, in whole or in part, in its sole discretion, including where required by law or banking restrictions. Upon termination, Luno will return equivalent USDC to the Account Holder’s USDC Wallet, subject to any delays in liquidation of investments.

11. AMENDMENTS

Luno may amend these USDC Earn Terms from time to time. Continued use of the Services after an amendment constitutes acceptance of the revised terms.

12. GOVERNING LAW

These USDC Earn Terms shall be governed by and construed in accordance with the laws of South Africa. The Parties agree to the non-exclusive jurisdiction of the courts of South Africa.