Archived version of 2026-03-20This version has been superseded. It remains available for transactions accepted under it. See the current Club / Athlete Monetization & Payout Addendum.
Club / Athlete Monetization & Payout Addendum
Last Updated: 2026-03-20Effective Date: 2026-03-20
1. Purpose and ScopeThis Club / Athlete Monetization & Payout Addendum (this "Addendum") governs monetization eligibility and payout-related terms applicable to clubs and athletes (each, a "Rights Holder") when monetization and/or payout features are activated in the Loqzone platform (the "Platform").This Addendum:
  • supplements the Master terms and conditions (the "Master Terms"), and
  • applies only to monetization and payout matters for Rights Holders.
This Addendum does not rewrite the Master Terms and does not change the Platform's relationship with fans or sponsors except as expressly stated in this Addendum.
2. DefinitionsCapitalized terms not defined in this Addendum have the meanings given in the Master Terms.For clarity:
  • "Primary Sales" means purchases of Loqzone-created or Loqzone-provided digital services/items offered through the Platform where Loqzone is the principal seller / merchant of record.
  • "Secondary" or "Secondary Marketplace" means user-to-user transactions, where enabled, occurring directly between users' non-custodial wallets on-chain.
  • "Verified" means the Verified profile status under Platform rules.
3. Role of the Parties; Merchant of Record3.1 Loqzone as principal seller (primary sales)Loqzone is the principal seller / merchant of record for Primary Sales of Loqzone-created or Loqzone-provided digital services/items.3.2 Rights Holder not a direct seller in primary salesA Rights Holder is not the direct seller to the end customer in any Primary Sale. Nothing in this Addendum makes a Rights Holder a seller of record, merchant of record, payment processor, or financial intermediary for any fan transaction.3.3 License grant to enable Platform products/servicesSubject to the Master Terms and Platform rules, the Rights Holder grants Loqzone the limited rights necessary to include the Rights Holder's verified profile, branding, identity, content, and related assets in Loqzone products/services and related commercial services.3.4 Secondary is user-to-user; Loqzone not merchant of recordWhere Secondary Marketplace features are enabled, Secondary transactions are user-to-user, non-custodial, and on-chain. Loqzone is not the merchant of record for Secondary user-to-user transactions.
4. Revenue Architecture Governs Splits, Stages, Fees, and RoyaltiesMonetization economics for collectible/digital-item transaction flows (including stage splits, unlock thresholds, platform transaction fee, and secondary royalty allocation) are governed by the canonical Revenue Architecture rules. For clarity, the confirmed launch-stage rules are reproduced in Sections 5-7 below.Clarification (sponsorship is separate): Sponsorship activation is an eligibility concept (Verified-only), but sponsorship purchases/services are a separate monetization rail with separate sponsorship economics. Sponsorship economics are not governed by the collectible primary-sale stage ladder in Section 5 and are not governed by the secondary royalty rules in Section 6.
5. Primary Sales — Stage Ladder (Revenue Allocation)5.1 Stage ladder (confirmed launch-stage rules)For eligible Primary Sales, revenue allocation between the Rights Holder and Loqzone is governed by the following launch-stage stage ladder:
  • Stage 0: Club 70% / Platform 30% — unlock threshold: Verified + 25 followers
  • Stage 1: Club 80% / Platform 20% — unlock threshold: 50 referred users
  • Stage 2: Club 85% / Platform 15% — unlock threshold: 75 referred users
  • Stage 3: Club 90% / Platform 10% — unlock threshold: 100 referred users
  • Stage 4: Club 90% / Platform 10% — unlock threshold: 150 referred users
  • Stage 5: Club 90% / Platform 10% — unlock threshold: 500 referred users
  • Stage 6: Club 90% / Platform 10% — unlock threshold: 1000+ referred users
5.2 Lifetime-based unlocksRevenue unlock stages are lifetime-based once unlocked.5.3 Exclusions from unlock thresholdsSponsor-distributed XP does not count toward referral unlock thresholds.5.4 System-measured thresholdsStage progression is determined by system-measured thresholds under Platform rules.
6. Secondary Royalty Rules (Where Enabled)6.1 Secondary royalty allocation (confirmed rules)Where Secondary Marketplace features are enabled, secondary royalty allocation is governed by the canonical Revenue Architecture rules. The confirmed royalty rules are:
  • Total resale royalty is always 8%
  • Stages 0-3: Club 0% / Loqzone 8%
  • Stage 4: Club 1.5% / Loqzone 6.5%
  • Stage 5: Club 3% / Loqzone 5%
  • Stage 6: Club 5% / Loqzone 3%
6.2 Transaction fee separate from royaltyThe 2% platform transaction fee is separate from and in addition to the 8% royalty.6.3 Loqzone not merchant of record (secondary)Loqzone is not merchant of record for Secondary user-to-user transactions.
7. Platform Transaction Fee (Primary and Secondary)The platform transaction fee is currently fixed at 2% on every transaction, primary and secondary, independent of royalty, as defined by the canonical Revenue Architecture.
8. Changes to Monetization Economics (Prospective Only)8.1 Launch-stage rulesThe stage splits, unlock thresholds, fees, and royalty allocation rules reproduced in this Addendum reflect the confirmed launch-stage rules and are included for convenience and launch clarity.8.2 Prospectively updated rulesLoqzone may update monetization economics and related mechanics on a prospective basis, including stage thresholds, revenue allocations, fees, royalty allocations, launch-governance rules, payout operations, or other monetization mechanics, by updating the applicable Platform rules, the canonical Revenue Architecture, this Addendum, and/or other incorporated monetization documentation, and by providing notice where required by the Master Terms or applicable law.8.3 Forward-looking applicationAny such updates apply only on a forward-looking basis to future transactions, future collections, future launches, future sponsorship programs, and/or future monetization periods, as specified by Loqzone.8.4 No retroactive reduction of earned amounts (subject to permitted reversals)Except where permitted under this Addendum or the Master Terms (including due to refunds, chargebacks, disputes, fraud, invalid or void transactions, abuse, compliance concerns, sanctions, or similar grounds), Loqzone will not retroactively reduce or claw back:
  • payout amounts already accrued from valid completed transactions, or
  • payout amounts already settled, or
  • lifetime stage unlock status already earned under the rules in effect at the relevant time.
9. Eligibility Gating (Verified-Only Monetization)9.1 Verified-only participationOnly Verified profiles may participate in monetization, including:
  • primary-sale revenue allocation for eligible collectible/digital-item primary sales,
  • secondary royalty eligibility for eligible secondary resales, and
  • sponsorship activation (eligibility to participate in sponsorship programs under separate sponsorship economics).
Clarification:
  • The royalty rules in this Addendum apply only to eligible secondary resale transactions.
  • The primary-sale stage rules in this Addendum apply only to eligible primary sales of Loqzone-created or Loqzone-provided collectible/digital-item services/items.
  • Sponsorship fees (including any Loqzone sponsorship platform fee) are governed separately and are not defined by Sections 5-7 unless expressly stated.
9.2 Ineligible statusesUnclaimed, Claimed (Pending Verification), Restricted, and Suspended profiles are not eligible for monetization or payout rights except as expressly stated by Loqzone under Platform rules.9.3 Loss and review of eligibilityVerification and eligibility may be lost, restricted, suspended, or re-reviewed under the Master Terms and Platform rules.
10. Payout Prerequisites (Compliance and Setup)Before any payout, Loqzone may require, as applicable:
  • Verified status
  • identity verification / KYC where required
  • tax documentation
  • payout details / payout account setup
  • sanctions / compliance screening
  • payout-supporting documentation under Section 11 (Payout Documentation)
  • any additional information reasonably required for compliance, fraud prevention, or payout administration
11. Payout Documentation11.1 Supporting documentation may be requiredBecause payout is a contractual payment from Loqzone after Loqzone's own sale (and not a pass-through of customer funds), Loqzone may require supporting payout documentation before releasing any payout.11.2 Types of supporting documentationDepending on the recipient and applicable requirements, supporting documentation may include:
  • invoice (for clubs or athletes operating through a legal entity or otherwise permitted or required to invoice)
  • self-billing record (where legally permitted)
  • settlement statement
  • payout statement
  • tax form
  • other supporting documentation reasonably required for payout administration, compliance, fraud prevention, or recordkeeping
11.3 Accuracy and completenessClubs/athletes must provide accurate and complete documentation where required.11.4 Delay or withholding pending validationLoqzone may delay or withhold payout until required documentation is provided and validated.11.5 Documentation may varyThe documentation required may vary depending on:
  • whether the recipient is an entity or an individual
  • jurisdiction
  • tax/VAT treatment
  • payment method
  • compliance requirements
11.6 No change to merchant-of-record roleNothing in this Section 11 changes the rule that Loqzone is the principal seller / merchant of record for Primary Sales.
12. Payout TimingPayout timing is governed by Platform rules and may depend on transaction finality, refund and chargeback windows, compliance review, and operational constraints. The confirmed timing rules are:
  • Eligible payouts may be processed up to 30 days after sellout.
  • If a collection does not sell out, the club or athlete may request payout of then-eligible earned amounts, and such payout may be processed up to 30 days after an approved payout request.
  • If Loqzone approves and processes payout before sellout, the collection may be treated as closed for launch-governance purposes, and Loqzone may block or delay activation of a future collection until applicable platform launch rules are satisfied.
  • Loqzone may also delay, withhold, offset, or reverse amounts during or after that period where refunds, chargebacks, fraud, disputes, compliance concerns, or transaction invalidity affect the relevant payout.
13. Minimum Payout Threshold
  • No payout is made for balances below USD $1,000.
  • Balances below the threshold roll forward until the threshold is met, unless Loqzone decides otherwise under applicable law or Platform rules.
14. Payout Methods14.1 Methods offered at Loqzone's discretionLoqzone may choose or make available one or more payout methods in its discretion, based on jurisdiction, compliance requirements, operational availability, payout size, and risk controls.14.2 Selection where multiple methods are offeredWhere multiple methods are made available, the club/athlete may select from the methods offered by Loqzone.14.3 Possible payout methodsCurrent possible payout methods may include:
  • bank transfer
  • Stripe-based payout or equivalent processor-supported payout
  • blockchain stablecoin payout, where offered and legally/commercially supported
15. Paying Entity15.1 Paying entity ruleThe paying entity is the applicable Loqzone entity identified in the relevant payout communication, settlement statement, or other payout record.15.2 Default paying entity if not otherwise identifiedIf no different entity is identified there, the default paying entity is the Loqzone entity associated with the relevant monetization flow or underlying transaction.15.3 Group flexibilityEither Loqzone entity may make payout where consistent with the applicable contractual flow, internal group arrangements, and applicable law.
16. Deductible Fees; Offsets; Corrections16.1 Permitted deductible items (transaction-specific / legally required)Any deductions, offsets, or corrections applied to a Rights Holder payout are limited to transaction-specific or legally required items such as:
  • third-party payment processor fees actually incurred on the relevant transaction
  • chargeback, dispute, and refund-related processor or banking fees tied to the relevant transaction
  • legally required taxes, withholding, or similar mandatory deductions
  • payout-delivery costs actually incurred for the selected payout method, such as wire fees or stablecoin transfer/network costs
  • fraud-related corrections, duplicate-payment corrections, and other justified transaction-specific adjustments
16.2 Not separately deductible as general overheadThe following are not separately deductible from payout merely as general overhead:
  • Loqzone general operating costs
  • hosting
  • AI/tooling
  • payroll
  • marketing
  • general legal overhead
  • the fixed platform share already embedded in the canonical stage split
17. Withhold; Reverse; Reserves / HoldbacksLoqzone may:
  • withhold payouts pending compliance review
  • delay payouts during fraud, abuse, dispute, refund, chargeback, or sanctions review
  • reverse or offset revenue allocations or payouts connected to refunded, charged back, disputed, reversed, fraudulent, voided, or otherwise invalid transactions
  • refuse payout to sanctioned or prohibited users
  • apply justified corrections, offsets, and adjustments based on Platform records and transaction validity
  • maintain reserves or holdbacks where reasonably necessary for risk, dispute, compliance, abuse, expected chargeback exposure, or other legitimate operational/legal reasons
18. Payout Nature; Platform Records; No Escrow18.1 Contractual payment obligationAny payout to the club/athlete is a contractual payment obligation from Loqzone under Platform rules, the Master Terms, and this Addendum.18.2 Not customer funds; no escrow/trustPayouts are not customer funds held in escrow or trust for the club/athlete.18.3 Eligibility and calculationPayout eligibility arises only under the Platform's monetization rules, verification status, compliance completion, and applicable commercial activity.Loqzone may calculate payouts based on Platform records, applicable stage rules, royalty rules, reversals, offsets, adjustments, and transaction validity.
19. No Guarantee of Volume or Revenue
  • Loqzone does not guarantee sales, revenue, impressions, engagement, sponsorship demand, or payout volume.
  • Monetization eligibility does not guarantee commercial activity.
  • Payout amount depends on actual eligible activity under Platform rules.
20. Taxes
  • Clubs/athletes are responsible for their own taxes except to the extent withholding is required by law.
  • Loqzone may withhold taxes or reporting information where required.
  • Tax documentation may be required before payout.
21. Suspension; Withholding; Termination of Monetization/Payout Access21.1 GroundsLoqzone may suspend, hold, limit, or terminate monetization/payout access where:
  • verification is lost or disputed
  • account or profile status changes
  • rights are disputed
  • fraud, abuse, sanctions, compliance, or policy concerns arise
  • required documents are not provided
  • the Master Terms or this Addendum are violated
21.2 Post-termination handlingAfter termination:
  • earned but not yet payable amounts may be withheld pending review
  • Loqzone may apply offsets, reserves, or reversals before final settlement
  • no further payout accrues after termination except as required under Platform rules and applicable law
22. Relationship DisclaimerNothing in this Addendum creates a partnership, joint venture, fiduciary relationship, employment relationship, agency to sell to end customers, or trust/escrow arrangement.The club/athlete is not appointing Loqzone as a payment processor or custodian for the club/athlete.Loqzone remains the seller in Primary Sales covered by the Master Terms.
23. Order of PrecedenceThis Addendum supplements the Master Terms.If there is a conflict on monetization/payout matters, this Addendum controls only for those monetization/payout matters.
24. Acceptance TriggerThis Addendum becomes binding when a club/athlete completes the relevant click-through acceptance in the Platform and activates monetization or payout features.If the user does not accept, monetization/payout features are not available.
25. Electronic Acceptance; RecordsClick-through acceptance inside the Platform is valid and binding.Loqzone may keep electronic records of acceptance, timestamps, profile/account ID, and version accepted.