ADDENDUM TO REWARDS PROGRAM TERMS
Prepayment as Collateral and Use of Funds

This Addendum (“Addendum”) is incorporated into and forms part of the Rewards Program Terms (the “Rewards Terms”) between you (“User” or “you”) and dash.fi (“Company,” “we,” or “us”). Capitalized terms not otherwise defined herein have the meanings set forth in the Rewards Terms.

a. Prepayment Used as Collateral Against Future Payments and To Offset Costs of Rewards Program Abuse. 

To receive the maximum rewards available, you must pre-pay or transfer a specified sum to: (1) an account held by dash.fi (“dash.fi bank account”); or (2) an account held by one of our Financial Partners (and controlled by dash.fi)—a so-called for benefit of account (“FBO account”).  

You understand that, once a Prepayment has been made (thereafter “Funds”), dash.fi may manage, invest, transfer, pledge, re-pledge, hypothecate, re-hypothecate, lend or otherwise utilize or control those Funds.  You further understand that you may not be able to access or request a return of unused Prepayments for a period of time.   Prepayments are intended to be applied, at a future date, by us to pay your Card balance or to compensate us, our Financial Partners, or other third parties for losses or other fees.  If you were to prepay for an automobile but were yet to take delivery, the funds used to pay for the car are no longer yours.  The same is true here.  The funds used to compensate us and our Financial Partners for future Card spend and other services are no longer yours.  While we may return excess Prepayments (as described below), such returns do not entitle you to Prepayment Funds before we assess whether there has been an overpayment.  

We intend to apply prepayments to compensate our Financial Partners for your associated card spend.  All such prepayments therefore, satisfy (to up to the dollar amount of the prepayment), your obligation to the Financial Partner who issued your card.   In essence, a prepayment of funds to dash.fi is tantamount to a prepayment directly to its Financial Partner.  

So, in a typical rewards prepayment, the Funds would flow as follows: 

1. Customer’s Bank Account: Customer initiates prepayment or authorizes dash.fi to initiate transaction from your account.
2. Dash.Fi Bank Account / FBO Account: Funds are held until transferred to pay down customer card balance.
3. Dash.Fi Sweep Account: Before your payment is due, Dash.Fi will cause your funds to be transferred to an account from which the Financial Partner can initiate transactions.
4. Financial Partner: Financial Partner will pay the card networks pursuant to its issuing bank agreement with the relevant network.

To earn the maximum rewards, you may need to initiate or authorize dash.fi to initiate additional prepayment transactions.  The Funds will be eligible for FDIC insurance while held by dash.fi, but depending on how they are held, dash.fi, not its customers, may be the insured entity.  Regardless, as Prepayments are the equivalent of a direct payment to the Financial Partner who issued your card product, dash.fi—not its customers—bears the risk of a bank failure or similar incident.   In other words, the Funds once received by dash.fi, are equal to a payment for future Card spend.  If we hold funds in an account at a Financial Partner, that Financial Partner fails, and the Prepayment Funds are not recoverable by means of FDIC insurance, you will still receive the benefit of the Prepayment as the Prepayment amount will still be applied to your future Card balance.  If we hold funds in an FBO Account, you may be eligible for pass-through FDIC Insurance, but if we hold Funds in an account in dash.fi’s name or transfer those Funds to compensate the Card issuer or another third party, you are not the insured party.  As noted above, however, whether you are the insured party or not, you will receive the benefit of the Prepayment.  

For the purposes of this agreement, “Collateral” or “Prepayment” means the funds you agree to deposit with Bank or a designated Financial Partner, as determined consistent with these Terms, and which we deems necessary to support the risks associated with this Rewards Program.  

b. Treatment of Prepayments as Collateral 

1. Risks to Bank and Program Manager

To be eligible for Rewards derived from your use of a Card, you will have previously entered into a Card Agreement with our one of our Financial Partners.   As noted above, we maintain this Rewards Program, which entitles users Rewards for certain activities conducted in connection with your use of those Cards. 

To receive certain Rewards pursuant to certain Rewards tiers, you must make a Prepayment.  This Prepayment is meant to address the financial and other risks attendant with the Cards and the Rewards Program. Among other risks, we may incur costs related to non-payment risk—the risk that you and other users will not abide by the terms of the Card Agreements and repay sums advanced by the Bank. We, likewise, are responsible for Rewards program abuses and for the costs of administering the Rewards. Together, the risks are referred to herein as the “Program Risks.”

2. Prepayments as Collateral

To mitigate or address these Program Risks and in exchange for eligibility for certain Rewards under the Rewards Program, you agree to provide us with full right and title of ownership to the Collateral by depositing Collateral at an account at one of our Financial Partners, as designated or directed by the us or our Financial Partners (the “Collateral Account”):

3. Calculation of Required Prepayment for Eligibility for Certain Rewards 

In general, we will utilize the United State Dollar value equal to 30x your peak daily spend over a trailing calendar quarter period in compliance with the terms of the Card Agreements.  In the event there has been no spending in the previous period or due to other unforeseen risks or factors, we may unilaterally increase or decrease the required Prepayment amount to earn certain Rewards.  

4. Transfer of Prepayments 
5. Prepayments will be provided to us at an account held at one of our Financial Partners utilizing one of the following approved methods:
   
   • You authorize us or our Financial Partner, to pull the Prepayment via ACH transfer automatically based on your monthly spend in accordance with the formula set out herein.
   • You initiate a one-time wire transfer from you to the Collateral Account.
   • You authorize a one-time ACH pull from your authorized bank account.
   • Utilizing other methods, including but not limited to a sweep arrangement, approved by us and our Financial Partners.
6. Limitations on Return/Withdrawal 

You will not be able to withdraw or access the Prepayments delivered to Bank for at least the following quarter.   User may request an expedited return of unused Prepayments, subject to our approval, to be returned at the end of the calendar month, net 15. Any such return is subject to our approval in our sole discretion.  

In the event that you have excess amounts of Collateral or Prepayments  because the Funds delivered to the Collateral Account were greater than needed for your Card spending for the current Quarter, you may withdraw or request the return of the Collateral by providing a minimum 30-day notice prior to the end of the month. Withdrawal requests can be made via:

• request to your assigned account manager; or
• request through our standard support team.

7. Limitation on Rewards 

If you fail to transfer a Prepayment at or above the minimum Prepayment required for Rewards eligibility, you will no longer be entitled to Rewards based on the Prepayment.  

8. Use of Collateral 

You appoint and acknowledge that we may act in our discretion to apply the Prepayments consistent with these Terms. To that end, we may
cause that Collateral to be transferred—consistent with the Parties’ obligations under this Agreement, the Card Agreements, and/or other agreements or terms between or among the Parties—back to you, to our Financial Partners, or to another third party at our direction. Receipt of the Collateral fulfills your obligations to the issuer of your Card in an amount equal to your Prepayment, as well as fulfilling your obligations under this Agreement as consideration for our provision of certain Rewards under these Terms. You expressly acknowledge that—again consistent with these Terms and any other applicable agreements—we may pledge, re-pledge, hypothecate, re-hypothecate, lend or otherwise utilize funds delivered as Collateral, consistent with applicable laws or regulations. Again, once you make a Prepayment, you understand that those Funds are no longer yours.  Therefore, dash.fi will be responsible for managing or otherwise crediting, applying, or paying those Funds to the appropriate Financial Partner or other third party.  

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