Secondary Use Policy
Terms of use for issuers creating character-based tokens on the Platform
Character Secondary Use Policy for Yuru DAO Last Updated: April 22, 2026 Issuer: Yuru DAO (hereinafter referred to as "the DAO") This policy sets forth the terms of use applicable to individuals or entities (hereinafter referred to as "Issuers") who issue tokens (hereinafter referred to as "Tokens") based on Characters on the Yuru DAO Platform (hereinafter referred to as "the Platform"). Issuers are required to agree to this policy when issuing Tokens. Token issuance without agreement will not be accepted. 1. Issuer's Declarations By issuing Tokens, the Issuer declares that all of the following matters are true and accurate. If any declaration is violated, the measures stipulated in Article 2 of this DAO may be invoked. 1.1 Originality and Secondary Use Rights The Issuer shall confirm that the character in question is either the Issuer's original work or that the Issuer possesses legitimate secondary use rights. Specifically, please confirm that one of the following applies: • The Issuer solely holds the copyright to the character. • The Issuer has obtained written permission for secondary use from the copyright holder (and possesses documentary evidence such as a contract). • The character is in the public domain, having completed its copyright protection period. • The character is published under an open license (e.g., CC-BY, CC0) that explicitly permits secondary use. The Issuer shall declare which of the above applies at the time of issuance and shall promptly submit supporting documentation if requested by the DAO. 1.2 Agreement to Transaction Suspension and Refunds If it is found that the Issuer has used third-party intellectual property rights (including copyrights, trademarks, design rights, and portrait rights) without authorization, the DAO may suspend transactions of the relevant Token, cancel its issuance, and initiate refunds to purchasers. The Issuer agrees in advance that these measures may be implemented. The source of funds for refunds shall be the total circulating value of the relevant Token, reserves held by the Platform, and the Token balance held and staked by the Issuer. Expenses incidental to the refund process shall also be covered by these funds. 1.3 Obligation to Provide Counter-Evidence for Objections If a legitimate rights holder of a character or their agent files a claim of infringement against the Issuer's Token, the Issuer shall be obligated to submit counter-evidence in writing or electronically within 14 days from the date of receiving the notification. The counter-evidence shall include objective proof supporting the declarations made in Article 1.1 (e.g., license agreements, copyright registration information, evidence of prior use). If counter-evidence is not submitted within the deadline, or if the submitted counter-evidence is deemed insufficient, the DAO may implement measures based on Article 2. 1.4 Measures Against False Declarations If it is found that the declarations made in Article 1.1 were false, the Issuer agrees to the following measures: • Permanent suspension of use from the Platform and registration of associated wallet addresses on a blacklist. • Forfeiture of the Token balance staked by the Issuer on the Platform. • Allocation of forfeited balances as compensation to victims (legitimate rights holders and purchasers). • Sharing of the fact of false declaration and the Issuer's identification information with relevant law enforcement agencies, rights holder organizations, and other crypto asset platforms. "False declaration" refers to cases where the Issuer knew that the content of their declaration was untrue at the time of making it, or could have known it was untrue with reasonable care. 1.5 Compliance with Public Order, Morality, and Applicable Laws The Issuer guarantees that community activities related to the Tokens they issue (including chats on the Platform, community pages, SNS collaborations, distributions, in-game events, etc.) do not violate the laws of Japan and other applicable countries, public order and morality, and the community guidelines of the Platform. Specifically, the Issuer shall not engage in, nor promote third parties to engage in, the following acts: • Dissemination of content that promotes violence, discrimination, hate speech, sexual exploitation, or is contrary to the protection of minors. • Fraud, market manipulation (including pump-and-dump schemes), insider trading, or inducement of transactions through deception. • Money laundering, terrorist financing, or intermediation of transactions subject to economic sanctions. • Infringement of intellectual property rights, privacy rights, or defamation. • Unauthorized access to the Platform, denial of service, spam, or automated fraudulent transactions. If this clause is violated, the DAO may implement measures equivalent to those in Articles 1.2 and 1.4. 2. Measures Implemented by the DAO To ensure the effectiveness of this policy, the DAO may implement the following measures. These measures shall be executed through the DAO's governance process (e.g., community voting, approval by the council). 2.1 Token Transaction Suspension and Removal from the Platform If grounds for violation of Article 1.2, Article 1.4, or Article 1.5 are recognized, the DAO may suspend the display, transaction functions, and provision of related information for the relevant Token on the Platform. This will halt new sales and purchases on the frontend of the Platform. However, this does not guarantee the suspension of transactions on decentralized exchanges (DEX). The DAO does not possess the technical means to enforce the suspension of transactions on DEXs and shall not be liable for any damages arising from continued transactions on DEXs. 2.2 Purchaser Refund Measures If the Issuer fails to provide reasonable counter-evidence or corrective measures within 72 hours after the transaction suspension based on Article 2.1, the DAO may initiate refund measures to purchasers, using the Token balance staked by the Issuer on the Platform and the reserves held by the Platform as the source of funds. The refund amount shall be calculated proportionally based on each purchaser's payment at the time of purchase, but the total refund amount shall be limited to the extent of these funds. The DAO does not guarantee refunds exceeding these funds and is not obligated to refund losses incurred through transactions on DEXs. 2.3 Permanent Suspension of Use If a violation of Article 1.4 is confirmed, the DAO shall permanently suspend the Issuer's account and associated wallet addresses. 2.4 Token Forfeiture If a violation of Article 1.4 is confirmed, the DAO shall forfeit the Token balance staked by the Issuer and allocate it to compensate victims and return it to the ecosystem reserve. The forfeiture process shall be executed after a certain grace period (timelock). 2.5 Information Disclosure The DAO may disclose the Issuer's identification information, transaction history, and consent records related to this policy in response to legitimate requests from law enforcement agencies, courts, or regulatory authorities. 3. Objection Procedure 3.1 Contact Point for Objections A legitimate rights holder of a character or their agent may file a claim of infringement using the "IP Objection Form" on the Platform or by sending an email to legal@yuru.fun. Please include the following information in your claim: • Claimant's identification information and documents proving rights (e.g., copyright registration information, trademark registration information). • Identification information of the target Token (e.g., mint address, Issuer's wallet address). • Specific facts and evidence supporting the claim of infringement (e.g., image comparison, identification of design identity). 3.2 Acceptance and Notification The DAO shall conduct an initial review within 72 hours of receiving a claim and shall notify the Issuer electronically of claims that meet formal requirements. Simultaneously, the transfer of the target Token to DEXs shall be automatically put on hold. 3.3 Counter-Evidence Period The Issuer shall submit counter-evidence within 14 days from the date of receiving the notification. The counter-evidence shall include objective proof supporting the declarations made in Article 1.1. 3.4 Determination The DAO shall make a determination after comparing and examining the claimant's assertions and the Issuer's counter-evidence. The opinion of independent legal or IP experts may be consulted for the determination. The determination result shall be notified electronically to both parties. 3.5 Reconsideration A party dissatisfied with the determination may request reconsideration within 7 days from the date of receiving the determination notification. Reconsideration shall be conducted by a different review officer than the initial determination. The result of the reconsideration shall be final, and thereafter, the internal procedures of the DAO shall conclude. If judicial resolution is desired, the provisions of Article 4 shall apply. 4. Governing Law and Jurisdiction 4.1 Governing Law This policy and all legal relationships between the Issuer and the DAO based on this policy shall be governed by the laws of Singapore. 4.2 Jurisdiction Any dispute arising out of or in connection with this policy shall be finally resolved by arbitration in accordance with the Arbitration Rules of the Singapore International Arbitration Centre (SIAC), with the seat of arbitration in Singapore and the language of arbitration being English only. 4.3 Interim Relief Notwithstanding the preceding paragraph, the DAO or rights holders may directly apply to the competent courts of each country for interim relief, such as injunctions against intellectual property infringement. 5. Policy Revisions 5.1 Revisions The DAO may revise this policy at any time. When revisions are made, the latest version shall be publicly announced on the Platform. 5.2 Non-Retroactivity to Already Issued Tokens For Tokens already issued, the policy effective at the time of issuance shall continue to apply, and Issuers will not be required to re-agree retroactively. The revised policy shall apply only to newly issued Tokens. 5.3 Notification Before Enforcement At least 30 days prior to the enforcement date of a revised policy, the content of the revisions and the enforcement date shall be notified to registered users on the Platform. 6. Contact Us For inquiries regarding this policy, please contact legal@yuru.fun. 7. Disclaimer Tokens issued on this Platform are not designed for investment purposes and do not constitute any form of investment advice, financial product, or security. The value of Tokens is highly volatile, and there is no guarantee of price. Issuers and purchasers shall understand all risks associated with the use of Tokens (including price volatility risk, liquidity risk, smart contract vulnerabilities, and regulatory risk) and act at their own responsibility. The DAO shall not be liable for any damages incurred through the use of Tokens. 8. Community Guidelines For the sound operation and development of this Platform, Issuers and users shall comply with the separately stipulated Yuru DAO Platform Guidelines. The guidelines detail communication principles, prohibited acts, and content standards, and shall apply integrally with this policy. If acts violating the guidelines are confirmed, measures may be taken based on Article 1.5 and Article 2 of this policy. End