Terms of Service - TumiaX

1. Acceptance of Terms

By accessing or using TumiaX's platform, mobile application, and services (collectively, the "Platform"), you agree to be bound by these Terms of Service. If you do not agree to these terms, please do not use our services.

2. Eligibility

To use our services, you must:

Be at least 18 years old and have the legal capacity to enter into binding contracts
Be a resident of Tanzania or any other jurisdiction where our services are legally available
Provide accurate, complete, and up-to-date information during registration
Not be located in a jurisdiction where our services are prohibited by law
Not be on any government sanctions lists

3. Account Registration & Security

You are responsible for maintaining the confidentiality of your account credentials and for all activities that occur under your account. You agree to:

Notify us immediately of any unauthorized use of your account
Ensure you log out from your account at the end of each session
Keep your contact information accurate and up-to-date
Not share your account credentials with any third party

We are not liable for any loss or damage arising from your failure to protect your account security.

4. KYC and Identity Verification

To access credit features, you must complete our Know Your Customer (KYC) process. This includes:

Providing valid government-issued identification
Submitting proof of address
Providing biometric data (selfie) for identity matching
Disclosing employment and income information
Consenting to background and credit checks

We reserve the right to refuse service, restrict accounts, or reverse transactions if we cannot verify your identity or suspect fraudulent activity.

5. Asset Ownership & Collateral

5.1 Verification of Ownership

You represent and warrant that you are the sole, lawful owner of all assets submitted to the Platform for credit evaluation. You must provide valid proof of ownership, including but not limited to title deeds, purchase receipts, registration documents, and photographs. Any asset found to be fraudulently claimed may result in immediate account termination and legal prosecution.

5.2 No Encumbrances

You warrant that at the time of submission, your assets are free from any liens, mortgages, security interests, or other encumbrances. You must disclose any existing loans secured against the asset. Failure to disclose existing encumbrances constitutes fraud and may result in legal action.

5.3 TRANSFER & SALE RESTRICTIONS (CRITICAL)

⚠️ IMPORTANT LEGAL RESTRICTION

You expressly agree that you SHALL NOT sell, transfer, assign, dispose of, or otherwise alienate any asset that has an outstanding credit balance secured against it. The asset serves as collateral for your credit, and transferring ownership while indebted constitutes:

Breach of contract
Fraudulent conveyance
Conversion of secured property
Grounds for immediate legal action including asset recovery

5.4 Release of Assets

An asset may only be removed from the Platform or transferred to a new owner under the following conditions:

Full repayment: All outstanding credit associated with the asset must be fully repaid
Account settlement: No pending obligations related to the asset may exist
Request processing: You must submit a formal release request through the Platform
Verification: We may require additional documentation to verify the sale or transfer

Upon satisfying all conditions, the asset will be marked as "Released" and removed from your collateral pool. You may then transfer or sell the asset free of our security interest.

5.5 Deletion of Assets

You may delete an asset from the Platform only if:

The asset has no outstanding credit balance
It is not currently serving as collateral for any active credit line
All associated documents have been removed or archived as required

Deletion of an asset with outstanding credit is prohibited and may result in legal action to recover the secured amount.

6. Credit Terms

6.1 Credit Limit Determination

Your credit limit is calculated based on the verified market value of your assets, multiplied by applicable Loan-to-Value (LTV) ratios:

Motorcycles: Up to 55% of verified value
Cars: Up to 60% of verified value
Houses: Up to 60% of verified value
Land: Up to 50% of verified value

We may adjust LTV ratios, credit limits, and valuations at our discretion based on market conditions, asset depreciation, or changes in your credit profile.

6.2 CONTINUOUS OBLIGATION (CRITICAL)

Your obligation to repay credit extends until all amounts borrowed, plus accrued interest and fees, are fully repaid. This obligation:

Survives the closure of your account
Continues regardless of changes in asset value
Is not discharged by asset depreciation or loss
Remains enforceable even if you cease using the Platform
May be pursued through legal means including collection proceedings

6.3 Repayment Terms

Each spend transaction creates a separate repayment obligation with the following terms:

Due date: 30 days from the transaction date
Early repayment: Permitted at any time without penalty
Partial repayment: Allowed, applied to oldest debts first (FIFO)
Overpayment: Excess amounts are refunded to your cash balance

6.4 Interest & Fees

Interest accrues daily on outstanding balances at the rate specified in your account (typically 4% per annum, adjustable with notice). Late payments incur additional interest at the late payment rate (18% per annum) on overdue amounts.

7. DEFAULT & COLLATERAL RECOVERY

7.1 Events of Default

The following constitute events of default:

Failure to repay any amount by the due date
Transfer or sale of collateral assets without authorization
Provision of false or misleading information
Bankruptcy, insolvency, or similar proceedings
Material breach of these Terms
Death or incapacity of the user

7.2 Remedies Upon Default

Upon an event of default, we may, at our sole discretion:

Declare all outstanding amounts immediately due and payable
Freeze your account and restrict access to funds
Initiate collection proceedings including legal action
Enforce our security interest in the collateral assets
Report default to credit bureaus and regulatory authorities
Engage collection agencies or legal counsel

7.3 COLLATERAL SEIZURE & LIQUIDATION

⚠️ COLLATERAL ENFORCEMENT

You expressly grant TumiaX a security interest in all assets posted as collateral. Upon default and after providing notice as required by law, we may:

Take possession of the collateral assets
Sell, liquidate, or otherwise dispose of the assets
Apply proceeds to outstanding balances, fees, and collection costs
Pursue deficiency judgments if proceeds are insufficient

You agree to cooperate fully in the recovery process, including providing access to assets and executing any documents necessary to effect transfer of ownership.

7.4 Cross-Collateralization

If you have multiple assets securing credit, default on any single obligation may, at our option, constitute default on all obligations secured by any asset. We may apply proceeds from liquidation of any collateral to any outstanding obligation.

8. Fees and Charges

We charge the following fees:

Internal transfers: 0.5% of transaction amount (minimum TZS 500)
External withdrawals: 1% of transaction amount (minimum TZS 1,000)
Late payment fee: 5% of overdue amount or TZS 5,000, whichever is greater
Asset valuation: Free for initial valuation; subsequent valuations may incur fees
Collection costs: All costs incurred in collecting overdue amounts, including legal fees

We may modify fees with 30 days' notice. You are responsible for all fees associated with your account.

9. Prohibited Activities

You may not use our services to:

🚫 Asset-Related Prohibitions

Sell or transfer assets with outstanding credit
Remove assets serving as collateral
Submit fraudulent ownership claims
Conceal existing encumbrances
Damage or diminish asset value knowingly

🚫 Financial Prohibitions

Money laundering or terrorist financing
Fraudulent transactions
Circumventing security measures
Using stolen identities
Manipulating valuation data

10. Risk Disclosure

By using asset-backed credit, you acknowledge and accept the following risks:

Asset depreciation: The value of your assets may decrease over time, potentially reducing available credit
Liquidation risk: Default may result in loss of your assets through liquidation
Market volatility: Asset valuations may fluctuate based on market conditions
Regulatory changes: Laws and regulations affecting digital credit may change
Technology risk: Platform interruptions or security breaches may occur

11. Termination and Suspension

11.1 By You

You may close your account at any time by contacting support, provided you have:

Repaid all outstanding credit in full
Settled all fees and charges
Removed or released all assets from the Platform

Account deletion initiates a 30-day soft delete period during which data is recoverable. After 30 days, data is permanently anonymized.

11.2 By Us

We may suspend or terminate your account immediately for:

Material breach of these Terms
Suspected fraud or illegal activity
Default on payment obligations
Risk of harm to the Platform or other users
Compliance with legal or regulatory requirements

Termination does not relieve you of outstanding obligations.

12. Limitation of Liability

To the maximum extent permitted by law, TumiaX shall not be liable for any:

Indirect, incidental, special, consequential, or punitive damages
Loss of profits, revenues, or business opportunities
Loss of data, goodwill, or reputation
Asset depreciation or market value fluctuations
Third-party claims arising from your use of the Platform

Our total liability shall not exceed the amount of fees paid by you in the 12 months preceding the claim.

13. Indemnification

You agree to indemnify and hold TumiaX, its officers, directors, employees, and agents harmless from any claims, losses, liabilities, damages, expenses, and costs (including reasonable legal fees) arising from:

Your violation of these Terms
Your use of the Platform
Your breach of any laws or regulations
Disputes regarding ownership of assets
Claims by third parties related to your assets

14. Governing Law and Dispute Resolution

These Terms shall be governed by and construed in accordance with the laws of the United Republic of Tanzania, without regard to its conflict of law principles.

14.1 Dispute Resolution

Any dispute arising from these Terms or your use of the Platform shall first be attempted to be resolved through good-faith negotiations. If negotiations fail, the dispute shall be referred to mediation in Dar es Salaam, Tanzania. Unresolved disputes may be submitted to the exclusive jurisdiction of the courts of Tanzania.

14.2 Class Action Waiver

You agree to resolve disputes on an individual basis and waive any right to participate in class action lawsuits or class-wide arbitrations.

15. Changes to Terms

We may modify these Terms at any time. We will provide notice of material changes through the Platform or via email. Your continued use of the Platform after changes constitutes acceptance of the modified Terms. If you do not agree to the changes, you must stop using the Platform and close your account.

16. Entire Agreement

These Terms, together with our Privacy Policy and any other agreements you enter into with us, constitute the entire agreement between you and TumiaX regarding your use of the Platform and supersede all prior agreements and understandings.

17. Contact Information

Legal Notices and Inquiries

Email: legal@tumiax.com

Support: support@tumiax.com

Phone: +255 123 456 789

Address:
TumiaX Limited
Plot No. 123, Samora Avenue
Dar es Salaam, Tanzania

By creating an account or using the Platform, you acknowledge that you have read, understood, and agree to be bound by these Terms of Service, including the critical provisions regarding asset transfer restrictions, continuous obligation, and collateral recovery upon default.