Terms of Service

1. Acceptance of Terms

By accessing and using PalFactory.com ("the Platform", "we", "our", or "us"), you agree to be bound by these Terms of Service. If you do not agree to these terms, please do not use the Platform. PalFactory is a platform that facilitates the listing and use of referral codes via cashback between users.

2. The Platform

PalFactory acts solely as an intermediary platform connecting individuals who own referral codes ("Sponsors") with individuals who wish to use them ("Recipients"). We do not own, create, or supply the referral codes listed on the Platform.

• Sponsors are responsible for ensuring their referral codes are valid, accurate, and comply with the terms of the originating brand or service. Sponsors agree to pay the reward amount plus platform fees when a cashback is validated.
• Recipients are responsible for completing the required actions associated with the referral code and understanding that outcomes depend on the third-party service.

3. Fees and Payments

Listing a referral code on PalFactory is free. All cashback payments are processed securely through Stripe Connect.

By participating in cashback transactions, you agree to Stripe's Connected Account Agreement and must complete necessary onboarding to send or receive payments via Stripe Connect. Sponsors agree to pay the stated reward amount plus a platform commission. The commission covers payment processing (Stripe), a provision for default and chargeback risk, referral rewards, and the operation of the platform. The exact amount is displayed before each transaction is confirmed and is broken down as follows:

• Payment processing (Stripe): approximately 2.9% + $0.30 CAD per transaction
• PalFactory platform commission: set per transaction to cover processing, risk provisions, referral rewards, and platform operations

The exact commission is calculated server-side and shown before you confirm each transaction. The recipient's cashback is never reduced by these fees.

4. User Conduct and Rules

You agree not to use the Platform to:

• List invalid, expired, or fraudulent referral codes.
• Violate the terms of service of the brands or services associated with the referral codes.
• Engage in any fraudulent, deceptive, or malicious activities.
• Artificially inflate your reputation score or manipulate the review system.
• Attempt to bypass the Platform's payment systems to conduct transactions directly.

Violation of these rules may result in immediate suspension or termination of your account, forfeiture of pending payouts, and potential legal action.

5. Delivery and Disputes

Upon acceptance of a cashback request by the Sponsor, the referral code or link is instantly revealed to the Recipient. The Recipient must then complete the required actions as listed in the action checklist.

If a Recipient finds a code to be invalid or explicitly misleading, or if the Sponsor fails to validate within 14 days of actions completed, they may open a dispute within 14 days of actions completed. PalFactory reserves the right to review the cashback, communicate with both parties, and resolve disputes at its sole discretion. Sponsors who fail to validate within 14 days face graduated reputation penalties and potential account suspension.

6. Reputation System

PalFactory employs a reputation system based on user activity, successful transactions, and reviews. Your reputation score and tier (e.g., Newcomer, Member, Trusted, Expert, Elite) are visible to other users. We reserve the right to modify the reputation algorithm, adjust points, or reset scores if we detect manipulation.

7. Limitation of Liability

PalFactory is provided on an "as-is" and "as-available" basis. We make no warranties regarding the validity of third-party referral codes or the availability of the Platform. To the maximum extent permitted by law, PalFactory shall not be liable for any indirect, incidental, or consequential damages arising from your use of the Platform or the failure of any third-party service to honor a referral code.

8. Changes to Terms

We reserve the right to modify these Terms of Service at any time. We will notify users of significant changes via email or an announcement on the Platform. Continued use of the Platform after such changes constitutes acceptance of the new terms.

9. Contact Us

If you have any questions about these Terms of Service, please contact us at support@palfactory.com.

10. Referral Program and Tax Responsibilities

PalFactory operates a referral program that rewards users ("Referrers") when their referrals complete qualifying cashback transactions. Rewards are earned through real economic activity — they are unlocked only when referrals complete qualifying cashback transactions, not simply for signing up.

Tax Responsibilities. Referral rewards may constitute taxable income under applicable tax laws. Referrers are solely responsible for declaring and paying any taxes due on rewards received through the Platform. PalFactory does not withhold taxes on behalf of Referrers and is not responsible for a Referrer's tax obligations.

• Canada: Referrers who receive $500 CAD or more in rewards during a calendar year must provide their Social Insurance Number (SIN) to PalFactory so that a T4A slip can be issued. Referrers who exceed $30,000 CAD in annual rewards may be required to register for GST/HST/QST and remit taxes on rewards received.
• United States: Referrers who receive $600 USD or more in rewards during a calendar year must provide their Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) to PalFactory so that a 1099-NEC form can be issued.

PalFactory reserves the right to suspend reward payouts until the required tax identification number is provided when a Referrer approaches the applicable reporting threshold. Referrers who fail to provide the required information may forfeit pending rewards.

Anti-Pyramid Compliance. The referral program is designed to reward genuine economic activity (completed cashback transactions), not recruitment alone. Rewards are triggered exclusively by qualifying transactions completed by referrals, in accordance with the Competition Act (Canada) and applicable anti-pyramid scheme laws. PalFactory reserves the right to modify, suspend, or terminate the referral program at any time.