Yuru.credit IP Bond Terms and Conditions

Last Updated: April 26, 2026

These Yuru.credit IP Bond Terms and Conditions (hereinafter referred to as “these Terms”) govern the issuance, purchase, holding, and redemption of IP Bond Non-Fungible Tokens (hereinafter “IP Bond NFTs”) on the Yuru.credit platform (hereinafter “the Platform”), which is part of the broader YuruFun ecosystem. These Terms constitute a legally binding agreement between the IP creator (hereinafter “Creator”), the investor (hereinafter “Investor”), and the YuruFun operating entity (hereinafter “Company”).

By issuing or investing in IP Bond NFTs on the Platform, Creators and Investors agree to have read, understood, and accepted these Terms, along with all related YuruFun policies including the Terms of Service, Privacy Policy, Fee Schedule, and Character Secondary Use Policy. Users acknowledge and agree to be bound by and comply with these Terms, as updated and amended from time to time.

1. Definitions

• IP Bond NFT: A non-fungible token representing a fractionalized claim on future revenue streams generated by a specific Intellectual Property (IP), issued on the Yuru.credit Platform.
• Creator: An individual or entity that owns or controls an IP and issues IP Bond NFTs on the Platform to raise capital.
• Investor: An individual or entity that purchases IP Bond NFTs on the Platform.
• Revenue Share: The percentage of IP-generated revenue that is contractually allocated to IP Bond NFT holders.
• Default Event: A predefined condition under which the Creator fails to meet their obligations, such as falling below a specified revenue threshold or breaching other contractual terms.
• IP Credit Score: A proprietary scoring system used by YuruFun to assess the potential and risk of an IP, influencing bond terms and interest rates.

2. Issuance of IP Bond NFTs

2.1. Creator Eligibility

Creators must meet the eligibility criteria set forth in the YuruFun Terms of Service and pass the IP Credit Score assessment to be approved for IP Bond NFT issuance.

2.2. Bond Terms

Each IP Bond NFT issuance will specify the following key terms:

• Target Funding Amount: The total capital the Creator aims to raise.
• Use of Funds: A clear description of how the raised capital will be utilized (e.g., game development, merchandise production, marketing).
• Revenue Share Percentage: The percentage of future IP revenue allocated to IP Bond NFT holders.
• Bond Duration: The period over which revenue will be distributed to IP Bond NFT holders.
• Interest Rate / Yield Mechanism: The expected return for Investors, which may be fixed, variable, or tied to IP performance.
• Default Conditions: Specific triggers for a Default Event.
• Collateral: Details of the IP collateral (e.g., copyright, trademark) and its on-chain representation.

2.3. Smart Contract Execution

All IP Bond NFT terms and revenue distribution mechanisms are encoded in smart contracts on the blockchain, ensuring transparency and automated execution.

3. Investment in IP Bond NFTs

3.1. Investor Due Diligence

Investors are solely responsible for conducting their own due diligence on Creators and their IPs before purchasing IP Bond NFTs. The Company provides information and tools (e.g., IP Credit Score) but does not endorse or guarantee the performance of any IP Bond NFT.

3.2. Purchase and Ownership

IP Bond NFTs can be purchased on the Platform or authorized secondary marketplaces. Ownership of an IP Bond NFT grants the holder the right to receive a proportional share of the IP’s revenue stream as defined by the bond terms.

3.3. Risk Acknowledgment

Investors acknowledge that investing in IP Bond NFTs carries significant risks, including but not limited to:

• IP Performance Risk: The actual revenue generated by the IP may be lower than projected, impacting returns.
• Liquidity Risk: Secondary markets for IP Bond NFTs may be illiquid, making it difficult to sell holdings.
• Smart Contract Risk: Vulnerabilities in smart contracts could lead to loss of funds.
• Regulatory Risk: Changes in regulations could impact the legality or viability of IP Bond NFTs.
• Default Risk: The Creator may default on their obligations.

4. Revenue Distribution

4.1. Automated Distribution

Revenue generated by the IP (e.g., game sales, merchandise royalties, licensing fees) will be automatically collected via smart contracts and distributed to IP Bond NFT holders according to the predefined revenue share percentage and distribution schedule.

4.2. Transparency

All revenue collection and distribution data will be transparently recorded on the blockchain, accessible to all IP Bond NFT holders.

5. Default Management and IP Collateral

5.1. Default Event Triggers

A Default Event occurs if the Creator fails to meet the predefined conditions in the bond terms. This may include:

• Failure to achieve minimum revenue thresholds.
• Breach of contractual obligations (e.g., failure to develop the IP as promised).
• Legal or regulatory actions against the Creator or IP.

5.2. Default Resolution Process

Upon a Default Event, the following process will be initiated:

• Notification: Creators and Investors will be notified of the Default Event.
• Grace Period: A grace period may be provided for the Creator to rectify the default.
• Collateral Activation: If the default is not rectified, the IP collateral (e.g., copyright, trademark) will be activated. This may involve:
  • Automated Transfer of IP Rights: On-chain representation of IP rights may be automatically transferred to a designated entity (e.g., Yuru DAO) for management.
  • DAO Management: The Yuru DAO may take over the management and monetization of the defaulted IP to recover Investor funds.
  • Liquidation: The IP or its revenue streams may be liquidated to compensate Investors.

5.3. IP Credit Score Impact

A Default Event will negatively impact the Creator’s IP Credit Score, potentially affecting their ability to raise future capital on the Platform.

6. Secondary Market

IP Bond NFTs may be traded on authorized secondary marketplaces. The Company does not guarantee the liquidity or price stability of IP Bond NFTs on secondary markets.

7. Fees

Fees related to the issuance, management, and transactions of IP Bond NFTs are detailed in the separately stipulated YuruFun Fee Schedule.

8. Amendments

The Company reserves the right to amend these Terms at any time. When amendments are made, the latest version will be published on the Platform. For IP Bond NFTs already issued, the terms and conditions at the time of issuance shall continue to apply. Amended terms and conditions shall apply only to newly issued IP Bond NFTs.

9. Governing Law and Dispute Resolution

These Terms shall be governed by and construed in accordance with the laws of Singapore. Any dispute arising out of or in connection with these Terms shall be finally resolved by arbitration in Singapore in accordance with the Arbitration Rules of the Singapore International Arbitration Centre (SIAC).

10. Contact Information

For questions regarding these Yuru.credit IP Bond Terms and Conditions, please contact legal@yuru.fun.