Canvas Cove – Creator Payout Terms & Conditions (Version 1.0)

Effective Date: [February 28, 2026]

These Creator Payout Terms (“Payout Terms”) govern your participation in monetization features on Canvas Cove (the “Platform”), including receiving payouts for eligible transactions. These Payout Terms supplement and are incorporated into the Canvas Cove Terms of Service (“Main Terms”). If there is a conflict, these Payout Terms control only for payout-related issues.

By enrolling in or using Creator Payouts, you (“Creator,” “you”) agree to these Payout Terms.

1) Definitions

“Creator”: A user who is approved and enabled to receive payouts through the Platform.

“Supporter”: A user who pays money to a Creator (e.g., tips, support, purchases, subscriptions, digital items—whatever your monetization features are).

“Payment Processor”: The third-party provider that processes payments and payouts (e.g., Stripe and/or Stripe Connect), including identity verification and bank transfers.

“Payout Account”: Your linked payment/payout destination (e.g., bank account) managed through the Payment Processor.

“Gross Amount”: Total amount paid by a Supporter for an eligible transaction before deductions.

“Net Earnings”: Gross Amount minus fees, refunds, chargebacks, adjustments, taxes withheld (if any), and reserves/holds.

“Chargeback”: A payment reversed by a Supporter’s bank/card issuer.

“Authorized Transaction”: A transaction approved/confirmed using the Supporter’s payment method and completed through the Platform/Payment Processor.

“Unauthorized Activity”: Activity not authorized by the account owner (e.g., account takeover).

2) Enrollment, Eligibility, and Ongoing Requirements

To receive payouts, you must:

Meet eligibility requirements (age, location, and any program rules described in the app).

Complete onboarding with the Payment Processor, including identity verification (KYC), bank account setup, and any additional requested information.

Maintain accurate information at all times (legal name, tax info, bank details, address, etc.).

Comply with all laws (tax, consumer protection, advertising, IP, privacy, etc.) and the Platform’s policies.

We may approve, deny, suspend, or revoke payout eligibility at our discretion where permitted—especially for risk, compliance, or policy reasons.

3) Role of the Payment Processor (Important)

Payments and payouts are handled by the Payment Processor under its own terms and privacy practices. You authorize us and the Payment Processor to:

process payments from Supporters,

calculate and disburse payouts,

verify your identity and information,

place holds or delays for risk/compliance,

reverse or adjust funds when required (e.g., refunds/chargebacks).

We are not a bank or money transmitter. We do not hold funds as a fiduciary for you; funds flow through the Payment Processor and related banking networks.

4) How Earnings Are Calculated

Your Net Earnings may be reduced by:

Payment processing fees (card, bank transfer, etc.)

Platform fees

Taxes, withholding, or government levies (if applicable)

Refunds, chargebacks, disputes, reversals

Currency conversion or cross-border fees

Fraud/risk reserves and holds

Adjustments for misuse, policy violations, or errors

The Platform may provide dashboards/estimates, but final amounts are determined by the Payment Processor’s settled transactions and applicable deductions.

5) Payout Timing, Thresholds, and Holds

5.1 Payout Schedule

Payouts may be initiated:

on a scheduled cadence (e.g., daily/weekly),

after a settlement period,

once you meet a minimum threshold,

and only after verification is complete.

Timing is not guaranteed. Banking systems, weekends/holidays, compliance checks, or risk reviews can cause delays.

5.2 Holds and Reserves

We and/or the Payment Processor may place holds, delays, or reserves on funds when reasonably necessary to:

prevent fraud, abuse, or unauthorized activity,

manage chargeback/refund risk,

comply with law, court orders, or regulator requests,

resolve disputes or investigate violations.

Holds may apply to some or all funds and may continue even after you stop using payouts until risk is resolved.

6) Refunds, Chargebacks, Disputes, and Reversals

6.1 Refunds

Depending on your product type and policies:

Supporters may be eligible for refunds (or may request them).

Refunds reduce your Net Earnings (including any fees that are non-refundable).

6.2 Chargebacks and Disputes

If a Supporter disputes a payment with their bank or card issuer, the transaction may be reversed as a Chargeback, and you may also incur chargeback fees.

You agree that chargebacks, reversals, and associated fees may be deducted from your balance, including from future earnings.

6.3 Negative Balances; Setoff

If deductions exceed your available balance:

Your payout balance may become negative.

We may recover amounts by offsetting against future earnings, pausing payouts, or (where permitted) requiring repayment.

6.4 Finality

Transactions are not final until fully settled and past applicable dispute windows.

7) Creator Responsibilities (Content, Delivery, Customer Issues)

You are responsible for:

accurately describing what Supporters receive,

providing any promised goods/services (if applicable),

responding to Supporter complaints in a reasonable timeframe,

complying with consumer laws (including disclosures and cancellation rights where applicable),

ensuring you have rights to the content you monetize (copyright, trademarks, licenses).

We may provide tools, but you are the merchant-of-record or service provider for your content unless explicitly stated otherwise in the app.

8) Taxes and Reporting

You are solely responsible for:

determining and paying any taxes on your earnings,

providing valid tax information to the Payment Processor,

complying with reporting requirements in your jurisdiction.

We and/or the Payment Processor may issue tax forms where required (e.g., 1099 forms in the U.S.) and may withhold amounts if legally required.

9) Prohibited Conduct and Compliance

You may not use payouts for:

illegal goods/services,

prohibited content under Platform policies,

money laundering, fraud, or deceptive practices,

attempts to circumvent fees, chargeback systems, or verification,

transactions involving sanctioned individuals/entities or restricted jurisdictions.

Violations may result in holds, reversals, clawbacks, suspension, termination, and referral to law enforcement where appropriate.

10) Account Security and Authorized Transactions

10.1 Your Duty to Secure Your Account

You are responsible for maintaining the security of your account, devices, email, passwords, and any connected payout credentials. Notify us immediately if you suspect compromise.

10.2 No Reimbursement for Authorized Transactions

You acknowledge and agree:

If a payment was authorized and successfully processed (including via your actions, your account, your device, or valid Supporter authorization through the Payment Processor), we are not responsible for reimbursing you or reversing outcomes—including situations where you later regret the transaction terms, mispriced content, misunderstood fees, or experienced customer dissatisfaction.

10.3 Third-Party & Banking Network Risks

We are not responsible for losses or delays caused by:

the Payment Processor,

card networks/banks,

ACH/wire systems,

currency conversion providers,

outages, system maintenance, or force majeure events,

except as required by law.

11) Platform Responsibility for Fraudulent Activity or Data Breach (Limited)

11.1 When We May Be Responsible

To the extent permitted by law, we may be responsible only if:

there is verified unauthorized activity directly caused by a security breach of our systems (not your device/account negligence), or

there is fraudulent activity resulting from our willful misconduct or failure to use reasonable safeguards for Platform data.

11.2 What You Must Do

If you claim losses under this section, you must:

notify us promptly,

cooperate with investigation,

provide reasonable documentation requested,

follow any required dispute processes with the Payment Processor.

11.3 Limits on Remedy

Where we are responsible under Section 11.1, our remedy is limited to:

investigating the incident,

and, if applicable, reimbursing direct, proven losses that are proximately caused by that incident,

up to the extent permitted by law and subject to the limitations in Section 12.

12) Disclaimers and Limitation of Liability

12.1 No Guarantees

Payouts are provided “as is” and “as available.” We do not guarantee uninterrupted availability, payout timing, eligibility, or the success of any monetization activity.

12.2 Limitation of Liability

To the maximum extent permitted by law:

We are not liable for indirect, incidental, consequential, special, exemplary, or punitive damages, or lost profits/revenue, even if foreseeable.

Our total liability related to payouts will not exceed the greater of:

(a) the amount of Platform fees we retained from your transactions in the prior [3/6/12] months, or

(b) [$100 / $500 / $1,000]

except where prohibited by law.

(Choose the cap that fits your business risk tolerance; many apps use a small fixed cap + fee-based cap.)

12.3 No Liability for Authorized Payments

Without limiting the above: we are not responsible for reimbursing or compensating you for authorized transactions, including chargebacks, refunds, or supporter disputes, except as expressly stated in Section 11 and where legally required.

13) Indemnification

You agree to defend, indemnify, and hold harmless Canvas Cove and its affiliates, officers, employees, and agents from claims, damages, liabilities, and expenses arising out of:

your content, offers, and interactions with Supporters,

your breach of these Payout Terms or the Main Terms,

disputes over delivery, quality, refunds, or representations,

violation of law or third-party rights.

14) Suspension, Termination, and Post-Term Holds

We may suspend or terminate your payout access if we believe (in our reasonable judgment) that you pose risk, violate policies, or fail verification.

After termination, we may:

withhold funds for a reasonable period to cover disputes/chargebacks,

process remaining payouts once obligations are satisfied,

reverse or claw back funds tied to fraud, reversals, or violations where permitted.

15) Changes to These Payout Terms

We may update these Payout Terms from time to time. If changes are material, we will provide notice via the app, email, or by updating the effective date. Continued use of payouts after changes become effective means you accept the updated terms.

16) Governing Law and Dispute Resolution

These Payout Terms are governed by the same governing law and dispute resolution provisions in the Main Terms, unless stated otherwise here.

17) Contact

For payout support, contact us via in-app support or the support email listed in the app/website.

18) Shareholding & Fees

Platform Fee / Revenue Share. For each eligible transaction, Canvas Cove retains a 20% platform service fee (the “Platform Fee”), calculated as a percentage of the Gross Amount, unless a different rate is displayed in-app for a specific product or feature. The Platform Fee helps support the operation, maintenance, and improvement of the Platform, including product development, safety and moderation, customer support, infrastructure, hosting, storage, payment tooling, and other administrative and technical costs. In addition to the Platform Fee, your payouts may be reduced by payment processing fees (e.g., card network/bank fees) charged by our Payment Processor, taxes or withholding where required, refunds, chargebacks, disputes, reversals, currency conversion fees, and other applicable transaction-related costs (collectively, “Other Fees”). The Platform Fee and any Other Fees are deducted before calculating your Net Earnings. Fee rates and fee structures may change at any time, including for new or existing features, and the applicable fees will be disclosed to you in-app (or otherwise made available) prior to or at the time a transaction is processed.