TERMS AND CONDITIONS
The Blender Platform – Open-End Credit Platform
Lenderblock Corporation is a technology provider that operates an online platform where individuals can request loans from other individuals (the “Platform”), also known as The Blender Platform. Lenderblock Corporation does not make loans and is not a lender. The Platform provides a marketplace where individuals seeking loans and individuals willing to make loans can meet and interact.
These terms and conditions (this “Agreement”) set forth the terms of use of the Platform and of any line of credit that you request and arrange through the Platform. As used in this Agreement: (1) “you” and “your” refer to any user of the Platform (whether as Borrower or Lender); (2) “Borrower” refers to the individual that completes an online request through the Platform to obtain a line of credit; (3) “Lender” or “Lenders” mean one or more individuals that approve a Borrower’s request for a line of credit; (3) “we,” “us,” “our,” and “LB” refer to Lenderblock Corporation
To use the Platform and request a line of credit in the form of an electronic smart contract (“Account”) or fund an Account you must be at least 18 years of age and you may not be subject to any financial sanctions/restrictions imposed by any applicable government authority. By entering into this Agreement, you acknowledge and confirm that you satisfy all conditions to obtain an Account and/or fund an Account. If we later become aware that you are not eligible to use the Platform, we may immediately terminate your use of the Platform. In such case, any Account will be closed and you will be prohibited from using the Platform. Your rights concerning the Platform and any Account are contained in this Agreement. You should become familiar with and understand this Agreement.
Terms that Apply to Use of the Platform:
Wallet; Funding. When you use the Platform as a Borrower to request an Account or as a Lender to fund an Account, you authorize LB to establish a securities account that is a digital wallet (the “wallet”) with a third party custodian (“Custodian”) for the purposes specified in this Agreement. If you are a Borrower, the wallet will be used to hold virtual currency of a type acceptable to LB (the “Property”) that Lenders provide to fund loan advances for your Account (currently Ether ). If you are a Lender, the wallet will be used to hold Property that you provide to fund a Borrower’s requests. You understand and agree that the Custodian may convert the Property into other virtual currencies for reinvestment and/or account management purposes. In addition, if you transfer the U.S. equivalent of any Property to LB, LB may convert it into acceptable Property. If you are a Borrower, you agree that, while any Property remains in the wallet, Lenders will be the legal and beneficial owner of such Property; and LB will, for the sole benefit of Lenders and Borrowers, hold the private keys in respect of the wallet. If you are a Lender, you agree that, while any Property remains in the wallet, LB may make that Property available to one or more Borrowers for requests you have agreed to fund, and that LB will at all times hold the private keys in respect of the wallet. If you are a Borrower, you may access the wallet and the Property while your Account is in good standing and you may use the Platform to transfer all or part of the Property to another digital wallet you control or to others for purchases of goods/services while your Account is in good standing. LB may, at the instruction of Lenders, place restrictions on your access to the wallet and the Property as set forth in this Agreement. You acknowledge that transactions involving virtual currency involve significant risk. Please carefully review the risks detailed below.
Taxes. You are responsible for your own tax obligations regarding your use of the Platform and it is your responsibility to determine what kind of filing or reporting is required of you by applicable taxing authorities. Notwithstanding the foregoing, if directed to by governmental authority, LB may, on behalf of Lenders, make any tax withholdings or filings that LB and/or Lenders determine are required to be made under applicable law.
Restricted Uses. You agree that you will not: (i) violate or breach any terms of this Agreement or of any applicable laws, rules, or regulations; (ii) commit, conduct or perform any activity constituting fraud; (iii) interfere with the operation of or harm the Platform or other users of the Platform; (iv) transmit or upload any virus, or other harmful code to the Platform or any other user of the Platform; (v) attempt to gain access to any other Platform user’s account; (vi) reverse engineer, decompile, or disassemble any portion of the Platform; or (vii) impose undue burdens or system demands on the Platform.
Privacy. The Platform is accessible through the website: https://lenderblock.io (the “Site”).
•User Information. During your interaction with the Site, LB may request information from you. The only information LB will collect and store about you is information you decide to provide us. If you have voluntarily submitted user information to us through an email or contact form or any other information, LB will only use such information for the purpose that it was provided or as otherwise permitted by law.
•Other Information. LB may use server logs to record a visitor’s Internet Protocol (IP) address and to collect general information about the visit to the Site, such as the time and length of the visit, and the web pages accessed during the visit. LB may use this information for Site management and performance monitoring only. LB does not make this information available to unaffiliated third parties, but may share it with affiliated companies.
•Cookies. LB may use cookies from time to time to allow LB to tailor the Site to your preferences or interests, customize promotions or marketing or identify which areas of the Site are more popular. A cookie is a small, unique text file that a website can send to your computer hard drive when you visit that site. LB does not make any cookie information available to unaffiliated third parties. Most web browsers can either alert you to the use of cookies or refuse to accept cookies entirely. If you do not want LB to deploy cookies in your browser, you can set your browser to reject cookies or to notify you when a website tries to put a cookie on your computer. Rejecting cookies may affect your ability to use some of the services available on the Site.
•Security. To prevent unauthorized access to any user information, LB has put in place commercially reasonable physical, electronic, and managerial procedures to safeguard and secure the information it collects through this Site. However, LB cannot guarantee the security of such information.
Amendments. This Agreement may be amended upon notice to you of the amendment in accordance with federal and applicable state law. Amendments shall become effective on the effective date stated in any notice. After the effective date of any amendment, the amended Agreement shall apply to the entire unpaid balance of your account, including the balance existing before the amendment became effective. We may add new services, reinstate once existing services, or take away existing services through the Platform, from time to time in our discretion.
Notices. You agree that all notices regarding the Account may be sent solely to the email address shown on LB’s records maintained through the Platform. Any notice that you provide to LB under this Agreement must be made through the Platform, except for billing error/dispute notices (see Billing Rights Notice below). Notices from LB or Lenders may be provided to Borrowers through the Platform or using any email address that a Borrower provides through the Platform.
Force Majeure. We will not be responsible for any delay, error, interruption or failure to perform any obligation under this Agreement that is related to any cause beyond our control, including but not limited to acts of God; virus/harmful codes that impacts our systems; actions of governmental authorities; failure/interruption of communication networks/systems; or labor disputes/strikes.
LIMITATION OF LIABILITY. NOTWITHSTANDING ANY PROVISIONS OF THIS AGREEMENT, IN NO EVENT WILL LB BE RESPONSIBLE FOR ANY TYPE OF INCIDENTAL, SPECIAL, EXEMPLARY, PUNITIVE, CONSEQUENTIAL, OR OTHER SPECULATIVE DAMAGES (INCLUDING, BUT NOT LIMITED TO, LOST PROFITS), EVEN IF LB WAS ADVISED OF THE POSSIBILITY THEREOF.
General. The following general provisions apply to each Account and the use of the Platform:
•If any part of this Agreement is found to be invalid, the rest remains effective.
•All persons who use the Account are individually and jointly responsible for all amounts due under this Agreement.
•All members of The Blender Platform will be required to perform identity verifications, conducted via third-party payments company, Stripe Inc., from within the software application.
•From time to time, LB may, on behalf of Lenders, obtain credit reports and may require a Borrower to provide Lenders with updated credit information through the Platform.
•All Borrower rights inure to the benefit of Lenders’ successors and assigns. All Borrower obligations bind Borrower’s heirs, executors and administrators.
•Lenders will not charge more interest or other charges than the law allows, but if Lenders do, the excess shall be returned to a Borrower.
•This Agreement is governed by the laws of the United States and the laws of the State of Delaware.
•This Agreement (along with the Interest Rate Disclosure Sheet provided at Account opening) represents the entire agreement between the parties in relation to the Account, the wallet, and the use of the Platform.
•This Agreement supersedes all prior representations, understandings, agreements, or communications between the parties, whether written or oral.
•The failure by LB or Lenders to exercise or enforce any right or provision of this Agreement is not a present or future waiver of such right or provision.
•A Borrower may not assign, delegate or transfer any rights or obligations under this Agreement, without LB’s and Lenders’ prior written consent (which may be withheld at LB’s and/or Lenders’ discretion). LB and/or Lenders may assign, delegate or transfer this Agreement (or each of its respective obligations hereunder) to any third party at any time without a Borrower’s notice or consent.
Terms that Apply to an Account and Loans provided by a Lender through the Platform:
How to Use the Account; Funding. Once you have been approved to use the Platform and have set up a user profile and a wallet has been established, you may: (a) as a Borrower, request that an Account be established in a specified amount so that the Platform can distribute your request to Lenders who use the Platform; (b) as a Lender, fund a Borrower’s request by transferring Property into your wallet (by linking an external deposit account). Once Lenders agree to fund a Borrower’s Account up to the amount requested, LB will establish an Account for such Borrower through the Platform. Once an Account has been established and related Lenders’ wallets have been funded with sufficient Property, a Borrower can use the Platform to process advances from the Account, up to the Borrower’s credit limit. Advances must be for a lawful purpose and must not involve a commercial or business transaction.
Credit Limit. The principal balance and late charges a Borrower owes under the Account must not be more than any credit limit established for the Account (the total amount of the related smart contract).
Repayment and Promise to Pay. Each Borrower promises to pay Lenders either: (1) virtual currency that is acceptable to Lenders equal or greater than the value of the Property (established by LB through the Platform as of the date of funding the Account); or (2) the U.S. dollar equivalent that is equal or greater than the value of the Property (established by LB through the Platform as of the date of funding the Account); together with finance charges and other charges the Borrower owes under the Account. Payment terms will be specified in the Interest Rate Disclosure Sheet that is provided to a Borrower when the Account is established. Each Borrower may pay the entire amount outstanding at any time without penalty. Each Borrower must pay at least the Minimum Payment Due shown on Borrower’s monthly statement each month. The Minimum Payment Due will be the Current Due Amount shown on Borrower’s monthly statement plus past due payments and late charges. The Current Due Amount each month will be the greater of $25 or 2% of the New Balance shown on Borrower’s monthly statement. If the New Balance is less than $25, the Current Due Amount will be Borrower’s entire New Balance. Borrower’s payment will be allocated to the various amounts due under the Account in any manner Lenders elect.
Finance Charge. The rate of Finance Charge on Borrower’s Account will be specified in the Interest Rate Disclosure Sheet provided when an Account is established. Finance Charges will accrue from the date a Borrower obtains an advance. Lenders determine the finance charge on Borrower’s Account by applying the current daily periodic rate to Borrower’s Average Daily Balance (including current transactions) and multiplying the result by the number of days in the billing cycle. Lenders compute Borrower’s Average Daily Balance by taking the beginning balance of Borrower’s Account each day, adding any new cash advances and subtracting any payments or credits. Lenders do not include unpaid Finance Charges, annual fees, late charges, and bad check fees. This gives Lenders the daily balance. The configured values and periodic rates for each Borrower’s Credit-Line is reflected in The Blender Platform Written Contractual Agreement that is provided by Lenders to a Borrower when the Account is established.
Borrower Security Deposits. Upon credit-line creation, Borrowers are required to provide a Security Deposit (“Insurance”) equal to 50% of the credit limit configured on newly created lines of credit. This Insurance will serve as collateral for lenders contributing to lines of credit, providing at least 50% (rounded-up to the nearest 1%) coverage of funds owed by a Borrower at any given time. Credit-Lines created on or after Dec. 8th, 2021 require lenders to provide a Security Deposit equal to 100% of the credit-limit configured with credit-lines, ensuring full lender protection and beginning a new phase of fully secured Credit-Lines and safe investments; these newly issued credit-lines allow Borrowers to increase their Security Deposits to resultantly increase their Credit-Limit.
The Blender Platform Credit-Line Written Contractual Agreements. Each Credit-Line is paired with an electronically generated and maintained legal contract document, called “The Blender Platform Written Contractual Agreement”. This agree sets the rules of the Credit-Line in accordance with the values chosen by the borrower upon creating the Credit-Line, holding its Borrower and Lenders accountable. The Blender Platform Written Contractual Agreements are made in addition to the terms of this Agreement, and both must be followed. The creation of a credit-line and interaction with a credit-line using The Blender Platform is an explicit acceptance of The Blender Platform Written Contractual Agreement (to be) generated for the credit-line. Additional terms may exist in the The Blender Platform Written Contractual Agreement for a credit-line. The continued monetary interaction with a credit-line is the explicitly continued acceptance of The Blender Platform Written Contractual Agreement for the credit-line. Any edits to a The Blender Platform Written Contractual Agreement will be shared with all its participants.
The party of signers of The Blender Platform Written Contractual Agreement exclusively includes the Creator-Borrower and all Lenders to this credit line throughout the duration of the credit line's functional existence.
A signature is defined as an electronic record of an individual sending an initial transaction from their Blender Wallet to the Credit Line in question, supplemented with other relevant personal identifying information and a screenshot of the device-screen at the instance of the drawn signature’s submission.
As a Lender and as a Borrower, lending funds to a credit-line and creating a credit-line requires the acceptance of these terms presented in all contractual agreements, including this Agreement and The Blender Platform Written Contractual Agreement, generated at the time of initial monetary interaction with a credit-line.
The credit-line has a functional existence beginning upon the Borrower's creation of the credit-line, and ending upon the termination of the credit-line by The Blender Platform and Lenderblock Corporation as a result of a request to do so made by the Creator-Borrower or as a result of a Borrower's payment delinquency.
You agree to actively attend to the Borrower's withdrawal requests by voting within the application, as Lenders democratically vote to release the lent funds requested for withdrawal by the Borrower. You acknowledge and accept that The Blender Platform reserves the right to terminate Borrowers' credit-lines who miss consecutive payments, disbursing the insurance collateral to the Lenders. The portion of the insurance collateral to be dispersed will not exceed the total amount of unpaid borrowed funds, not considering interest. The remaining funds, if any exist, will be returned to the Borrower and a termination fee will be paid to The Blender Platform from the Borrower's recuperations.
The Blender Platform and Lenderblock Corporation reserves the right to update, maintain and edit existing functioning Blender Platform Written Contractual Agreements over time as requirements and standard practices evolve. Updates to any Blender Platform Written Contractual Agreement are shared with all members of the associated Credit-Line. Additional terms not included in this Agreement may be present in The Blender Platform Written Contractual Agreement, and must be followed upon financial transaction with the associated Credit-Line.
Late Penalties and Account Closures. In the event of a Borrower’s payment delinquency persisting for 2 months, the line of credit will pend Closure (“Closure”) by The Blender Platform’s Account Reviewal Team. The Borrower will have, on many cases, a final 7-day week to make a payment, otherwise, the account will likely be closed, at the discretion of the Account Reviewal Team. In the event of the Closure of a credit-line, the Insurance provided by the Borrower will be dispersed to each Lender, proportional to the Lender’s contribution of the Owed Balance (“Owed Balance”) on the account. The Owed Balance will not include compounded interest owed, and only includes the actual sum of funds withdrawn by the Borrower which have not yet been repaid to the Lenders. In the case of the Insurance exceeding the value of the Owed Balance at the time of the Closure, every Lender will receive 100% of their contributed portion of the Owed Balance, and the difference of the Insurance and the Owed Balance will be returned to the Borrower. Upon Closure, the line of credit will be inactive and all funds held within will be dispersed as aforementioned, and will no longer be displayed publicly on the application.
The Blender Platform Charges. You acknowledge that The Blender Platform charges a flat creation-fee for the creation of a new credit-line. You acknowledge that The Blender Platform charges 5% of funds which lenders contribute to and reclaim from credit-lines, and 5% of funds which borrowers withdraw from and repay to credit-lines. The Blender Platform DOES NOT charge and DOES NOT earn commission for the conversion/purchasing of currency, for the withdrawal of funds to an external bank account, the depositing of funds into a Blender Wallet using a debit card, or sending funds to another member’s debit card.
Security and Set off. You agree that, any Property in the wallet is a “financial asset” under Article 8 of the Uniform Commercial Code (“UCC”). If you are a Borrower, you hereby grant Lenders a security interest in the Property. If you are a Borrower, you promise that: (a) you will not take any steps to use the Property in violation of any law or in any manner inconsistent with any insurance policy; (b) you will pay all taxes, assessments and other fees payable on the Property when they are due and payable; (c) only Lenders have a security interest in the Property; (d) you will not permit any other security interest to attach to the Property without Lenders’ prior written consent; and (e) you will not permit anything to be done to the Property that would impair its value. You agree that only LB and Lenders will be entitled to information from the Custodian concerning the Property held in the wallet, and if you are a Borrower, Lenders may value the financial asset in the wallet using publicly available information through tools accessible through the Platform, and Lenders’ determination of such value will be final and binding. You acknowledge that all transactions and financial interactions with The Blender Platform are conducted the with xDAI Blockchain Network and in the currency of xDAI ERC20 Tokens.
Default; Adverse Credit Reporting. If any of the following events occurs, a Borrower will be in default under this Agreement: failure to make any payment under this Agreement when due; failure to observe or perform any term, condition or agreement contained in this Agreement; any representation in this Agreement or in a Borrower’s application for the Account or in any financial statement furnished to Lenders proving to be false or misleading in any material respect; or insolvency or the appointment of a receiver for any part of a Borrower’s property or a Borrower’s making of any assignment for the benefit of creditors or the commencement of bankruptcy or insolvency proceedings by or against a Borrower. Upon the occurrence or at any time during the continuance of any one or more of such events, at Lenders’ option, the Account shall be terminated and the entire unpaid balance of the Account immediately shall become due and payable without notice or demand. Each Borrower shall pay all court and other costs of collection actually incurred by Lenders relating to a Borrower’s default, including the fees of Lenders’ attorney (who is not a salaried employee) of 15% of the amount owed. You agree that LB may deduct any amounts due under this Agreement from the external funding account you linked when becoming a participant in the Platform. Each Borrower agrees that in the event of any default, LB (on behalf of Lenders) may report adverse credit experience information to one or more consumer reporting agencies.
RISKS. YOU AGREE THAT THE USE OF THE ACCOUNT AND WALLET INVOLVES RISK. YOU ACKNOWLEDGE THAT YOU HAVE REVIEWED THE BELOW SUMMARY OF SOME OF THE POSSIBLE RISKS INVOLVED IN USING THE ACCOUNT AND/OR WALLET. The regulatory status of virtual currency is unsettled in certain jurisdictions and in certain respects and it is possible that law changes related to virtual currencies could directly or indirectly impact the Account, the wallet, the Property, and/or the services available through the Platform. You agree that LB may be required to suspend or discontinue or to change some or all features of the Account and/or services based on changes in applicable law. In such situations, the Property could be inaccessible for an indefinite period. In addition, the wallet and the Property may be subject to theft and/or fraud that could result in the loss of some or all of the Property. You acknowledge that LB does not maintain any insurance to protect a Lender or a Borrower from risks related to your use of the Account and/or wallet. This section is not exhaustive and does not disclose all the risks associated with virtual currency and/or the use of the Platform. YOU SHOULD CAREFULLY EVALUATE WHETHER THE ACCOUNT AND WALLET ARE SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CIRCUMSTANCES.
Termination. Lenders may suspend or terminate a Borrower’s right to obtain credit at any time for any reason. Borrowers may not be able to terminate the Account, as Accounts exist for an indefinite period of time. The termination shall be effective upon Lenders’ acknowledgment through the Platform that a Borrower’s request has been received. Each Borrower’s obligations under this Agreement continue after the Agreement is terminated.
Acknowledgment. By clicking “I ACCEPT” below, you agree to the terms of this Agreement and, if opening an Account as a Borrower, acknowledge that the ANNUAL PERCENTAGE RATE and the daily periodic rate were provided to such Borrower.
[I ACCEPT]
Billing Rights Notice
KEEP THIS NOTICE FOR FUTURE USE
Borrower’s Billing Rights. This notice contains important information about Borrower’s rights and Lender’s responsibilities under the Fair Credit Billing Act.
Notify Us in Case of Errors or Questions on Your Bill. If you think your billing statement is wrong, or if you need more information about a transaction on the bill, you should email us (on behalf of Lenders) at interactions@lenderblock.io. You should email us as soon as possible. We must hear from you no later than 60 days after the first bill on which the error or problem appeared is sent by us.
Your notice must provide the following information:
• Your name and user ID.
•The dollar amount of the suspected error.
•The date of the suspected error.
•Describe the error and explain why you believes there is an error. If you need more information, describe the item you are not sure about.
Borrower’s Rights and Lender’s Responsibilities After Lenders Receive Borrower’s Written Notice. Your notice must be acknowledged within 30 days unless the error has been corrected by then. Within 90 days, either the error must be corrected or you must be given an explanation of why we believe the bill was correct.
After receiving your notice, Lenders cannot try to collect any amount you question, or report you as delinquent. Lenders can continue to bill you for the amount you question, including finance charges, and Lenders can apply any unpaid amount against your credit limit. You do not have to pay the questioned amount while Lenders are investigating, but you are still obligated to pay the parts of the bill that are not in question.
If Lenders find that it made a mistake on your bill, you will not have to pay any finance charges related to any questioned amount. If Lenders did not make a mistake, you may have to pay finance charges, and you will have to make up any missed payments on the questioned amount. In either case, Lenders will send you a statement of the amount you owe and the date that is due.