This Terms of Service (“Agreement”) applies to all users (“Users”) who access or use the social communication application “Hug” and related services (collectively referred to as the “Service”) provided by Some Other Place, Inc. (“Company”). Please read this Agreement carefully before using the Service. By accessing or using the Service, you agree to be bound by all the terms of this Agreement. If you do not agree with the terms, you must discontinue using the Service.

Article 1: Purpose

This Agreement sets forth the rights, obligations, and responsibilities of the Company and the Users concerning the use of “Hug” and related services. It also establishes the terms of the contractual relationship between the Company and the Users in relation to the Service.

Article 2: Definitions

1. Service: The “Hug” application and all related services that Users can access across devices such as PCs, mobile phones, or any communication equipment, regardless of the operating system or platform.
2. User: Any individual who accesses and uses the Service, whether registered or unregistered.
3. Member: A User who provides personal information to register and continuously uses the Service.
4. Non-member: A User who uses the Service without registering as a Member.
5. Mate: A specific category of User who provides voice or chat interactions through the platform.
6. Content: Any text, images, audio, links, files, or other information posted by Users within the Service.
7. Paid Service: Any Service that the Company provides for a fee.
8. Payment: The act of entering payment information and completing a transaction to access Paid Services.
9. Ticket: A virtual item used for services provided by the Company, which may be purchased or distributed for free under the Company’s policy.
10. Bean: Virtual currency used for accessing certain services, purchased by Users for real money.
11. Points: A reward system that may be converted to Beans or cash as per Company policies.
12. Recharge: The process by which a Member converts real money into virtual items like Beans or Tickets.
13. Refund: The process of canceling a purchase and receiving a refund of real money for unspent virtual items.
14. Payout: The conversion of Points earned by a Mate into cash, as determined by the Company.
15. Delete: The act by which a Member ends their use of the Service by deactivating their account.

Article 3: Applicability and Interpretation

1. The Company may establish separate terms or policies for specific services. In case of conflict, the individual terms of the relevant service will take precedence.
2. Matters not explicitly covered by this Agreement shall be governed by applicable laws and standard business practices.

Article 4: Effective Date and Modification

1. This Agreement becomes effective when the User starts using the Service.
2. The Company may update these Terms from time to time. For non-material changes, notice will be provided by posting the revised Terms on the Service or through the app without requiring direct notification. The Company may amend these Terms at any time at its sole discretion. For material changes that affect Users’ rights or obligations, we will provide at least 7 days’ notice before they take effect, unless the change is required by law or is beneficial to Users, in which case it may take effect immediately. Users are responsible for reviewing the Terms periodically. Continued use of the Service after any changes constitutes acceptance of the revised Terms.
3. By continuing to use the Service after any changes to the Terms, Users agree to be bound by the revised Terms. If Users do not agree to the changes, they must stop using the Service and may delete their account.
4. The Company is not responsible for Users’ failure to receive notifications of changes if the User has not provided up-to-date contact information, has disabled notifications, or does not regularly check the Service for updates.

Article 5: User Registration and Account

1. Users must agree to the terms of this Agreement and submit truthful information when registering. Users are responsible for any damages caused by false information.
2. The Company may suspend registration approval if there are technical or operational difficulties.
3. The Company reserves the right to reject applications or delete accounts for various reasons, including prior account suspensions, false information, or other policy violations.
4. Users are responsible for safeguarding their account credentials and may not transfer or share accounts with third parties. Any activities conducted through the User’s account are deemed to be the responsibility of the User.
5. Users agree to immediately notify the Company of any unauthorized use of their account or any other breach of security. The Company is not responsible for any damages or losses resulting from Users’ failure to comply with this security obligation.
6. By using the Service, Users acknowledge and agree that their data may be transferred, processed, and stored in jurisdictions outside their country of residence, where data protection laws may differ. The Company ensures that all international transfers comply with applicable regulations, including GDPR, CCPA, and similar laws. However, the Company is not responsible for conflicts between local regulations and cross-border data transfer requirements The Company implements appropriate safeguards, including but not limited to contractual commitments, technical measures, and access controls, to ensure data security and compliance with applicable laws.

Article 6: Amendments to Member Information

1. Users can update their personal information, except for certain immutable fields like their name, gender, and date of birth, through the Service’s settings.
2. Users are responsible for informing the Company of any changes to their personal information to avoid any disruptions to the Service.

Article 7: Deletion of Service

1. Users can delete their account at any time via the Service settings. Account deletion may be temporarily restricted in cases of suspected fraud or misuse.
2. After deletion, Users may only re-register 24 hours after the deactivation of their previous account.
3. The Company may delete the User’s account for reasons such as legal violations, policy violations, or repeated misconduct, and notify the User via the Service or email.

Article 8: User Management

1. The Company reserves the right to suspend, terminate, or restrict access to any User, including Mates who provide voice or chat interactions as part of the platform’s services, if they violate this Agreement, the Privacy Policy, Community Guidelines, or any other Company policies. The Company may enforce sanctions without prior notice, including but not limited to:
• Temporary or permanent account suspension
• Forfeiture of any earnings, virtual currency, or benefits
• Legal action or reporting to law enforcement authorities
• Blocking or restricting access to specific Service features
• Deletion of User-generated content
2. Users may face enforcement actions if they engage in any of the following:
• Violation of the Terms, Privacy Policy, Community Guidelines, or any other Company policies.
• Fraudulent, deceptive, or manipulative behavior, including but not limited to:
• False identity, impersonation, or misrepresentation
• Exploiting technical vulnerabilities to gain unfair advantages
• Chargeback abuse, money laundering, or financial fraud
• Use of unauthorized automation tools, scripts, bots, or third-party applications.
• Directly or indirectly facilitating, suggesting, or attempting to conduct transactions outside the Service to circumvent Hug’s payment system.
• Sharing personal contact information, including but not limited to phone numbers, email addresses, social media handles, messaging app IDs, or other external communication tools, with the intent to bypass in-app interactions or payments.
• Attempting to establish contact outside of Hug with the intent to circumvent the Service’s paid features or monetize interactions independently.
• Harassment, hate speech, discrimination, or any form of abuse.
• Distribution or promotion of explicit, harmful, illegal, or misleading content.
• Failure to meet performance, engagement, or quality standards as determined by the Company.
3. Suspended or terminated accounts are permanently ineligible for any refunds, withdrawals, or transfers of virtual currency, assets, or earnings, regardless of circumstances. The Company may retain, revoke, or reclaim virtual items, Points, or payouts obtained through violations of this Agreement.
4. Users acknowledge that the Company bears no liability for any loss of access, earnings, virtual assets, or reputation resulting from enforcement actions. The Company is not obligated to provide evidence, justification, or individual review for any enforcement decision.

Article 9: Privacy Protection and Data Retention

1. The Company will protect Users’ personal information in accordance with applicable privacy laws, including but not limited to the California Consumer Privacy Act (CCPA), Canada’s PIPEDA, and the EU General Data Protection Regulation (GDPR). The Company’s Privacy Policy governs the collection, use, and protection of personal information.
2. The Company retains personal data as outlined in its Privacy Policy and may retain data beyond account deletion if required for regulatory compliance, legal defense, fraud prevention, dispute resolution, or tax reporting obligations. Such retention shall be conducted in accordance with applicable laws and industry best practices.
3. Users have the right to request the deletion of their personal data, but certain data may be retained for legal, accounting, or operational purposes, as permitted under applicable laws.
4. Users’ personal information may be shared with third-party service providers for payment processing, cloud storage, identity verification, and AI processing, in compliance with applicable laws. The Company’s Privacy Policy specifies the third-party service providers that may receive such data.
5. By using the Service, Users acknowledge and agree that their personal data, including communication data (such as text, voice data, and other audio interactions), may be used for AI learning, machine learning, and the development of new services. Once processed into AI models, such data becomes non-reversible, non-extractable, and no longer linked to individual users. Accordingly, users waive any rights to request deletion, modification, or reversal of AI-trained data. The Company reserves the right to retain and process such data in compliance with applicable laws and industry standards.

Article 10: Notices and Advertising

1. The Company may provide notices to Users via email, SMS, push notifications, or in-app messages.
2. General notices may be posted on the Company’s website for at least 7 days.
3. The Company may send promotional emails and messages based on User preferences. Users can opt out of such messages at any time.
4. The Company is not responsible for the actions or promotions of third-party advertisers.

Article 11: Purchases and Payments

1. Users are responsible for paying any fees and taxes associated with Paid Services, using the payment methods provided by the Company.
2. Payments made through app stores are subject to the respective app store’s payment policies. The Company is not responsible for any delays or issues related to third-party payment processors.
3. The Company may place monthly spending limits on Users and verify the legitimacy of payment methods.

Article 12: Purchase Policy and Cancellations

1. Final Sale Policy
• All purchases, including but not limited to Beans, Tickets, and chat interactions, are final and non-refundable once used or partially used.
• The Company does not issue refunds for digital goods consumed in part or in full, including Mate conversations, chat interactions, or promotional items.
• All purchases are final, and no refunds will be issued except where strictly required by law.
2. Exceptions to Refunds
• Refunds will only be processed where strictly required by applicable law.
• Refunds may also be granted under the following limited circumstances:
• A purchase resulted from a verified system malfunction caused by the Company.
• A purchase was unauthorized and formally recognized as fraudulent by the payment provider.
3. Third-Party Payment Handling
• Purchases made through third-party platforms (Apple App Store, Google Play Store) must adhere to their respective refund policies. The Company is not responsible for decisions made by third-party payment processors.
4. Cancellations and Chargebacks
• Any chargebacks, payment disputes, or unauthorized attempts to reverse transactions will result in immediate and permanent account suspension, forfeiture of all associated virtual assets, and denial of any future payouts or refunds. The Company may impose additional penalties, including but not limited to a financial penalty equal to the disputed amount, plus administrative fees.
• The Company reserves the right to take legal action, report fraudulent activity to financial institutions or credit bureaus, and enforce debt collection or legal prosecution through third-party agencies. Repeated chargebacks or fraudulent disputes will result in permanent blacklisting from all services operated by the Company and potential legal liability for damages.
• Users who engage in multiple chargebacks or payment disputes will be permanently blacklisted from all services operated by the Company.
• Refund requests based on user dissatisfaction, personal preferences, or voluntary account termination will not be honored.

Article 13: Use, Expiration, and Ownership of Virtual Items

1. Validity Period
• Purchased Beans, Tickets, and other virtual items expire five (5) years from the date of purchase. Upon expiration, all unused virtual items will be permanently forfeited without compensation, refund, or replacement. The Company reserves the right to adjust, devalue, discontinue, or modify any virtual items at its sole discretion, with or without prior notice.
• Free Beans, Tickets, or Points provided as part of promotions may have shorter expiration periods based on Company policies.
2. Non-Transferability
• Users cannot transfer, trade, gift, or sell virtual items to third parties, whether inside or outside the Service. Any attempt to do so may result in account suspension and loss of virtual assets.
3. Company’s Rights over Virtual Items
• The Company retains full ownership and control over virtual items and reserves the right to modify, revoke, or adjust their availability, value, or use at any time without compensation.

Article 14: Refunds and Processing

1. Processing Timeframe
• Refunds are typically processed within 3 business days but may take up to 7 business days under high volume or additional verification requirements.
2. Third-Party Payment Policies
• Refunds for purchases made via Apple App Store, Google Play Store, or other external payment platforms must comply with the respective platform’s policies.
• The Company assumes no liability for refund delays or rejections issued by third-party payment providers.
3. Refund Eligibility Calculation
• If a purchase included promotional or free virtual items (e.g., bonus Beans), refunds will be calculated based on the remain

Article 15: Payouts for Mates

1. Payouts to Mates are subject to the Company’s review and approval. The Company reserves the right to withhold, adjust, or cancel Payouts under the following conditions:
• The Mate is found to have engaged in fraudulent or deceptive activity,
• The Mate has violated the Terms or other applicable policies,
• The Payout is below the Company’s minimum threshold,
• The Company determines that continued transactions pose financial or legal risks.
• Failure to comply with identification verification (KYC) or tax reporting requirements
• Chargebacks, unauthorized payment disputes, or financial risk concerns
2. Mates are solely responsible for reporting and paying all applicable taxes. The Company may deduct or withhold taxes as required by law.
3. The cash value of Points and other virtual items is determined solely by the Company.
4. All Payouts are subject to final review and approval by the Company. The Company reserves the right to deny or delay Payouts at its sole discretion, including but not limited to cases involving fraud, policy violations, or suspicious activity.
5. The Company is not responsible for Payout delays caused by third-party payment platforms, and all Payouts will be made subject to applicable laws and platform terms.

Article 16: Mistaken Payments

1. Refunds for mistaken payments will be processed using the original payment method, but may take additional time depending on the third-party payment processor.
2. Users are responsible for any costs incurred due to mistakes made during payment.

Article 17: Company Obligations

1. The Company will endeavor to provide a stable and secure service.
2. The Company will protect Users’ personal information and handle any grievances as per applicable laws.

Article 18: User Obligations

1. Users are prohibited from engaging in unlawful activities, including, but not limited to, providing false information, infringing on intellectual property rights, and distributing harmful content.
2. The Company reserves the right to suspend or delete accounts involved in prohibited activities without prior notice.

Article 19: Service Provision and Changes

1. The Company provides the Service on a continuous basis unless there are technical or operational difficulties.
2. The Company reserves the right to modify, suspend, or discontinue any part of the Service, including but not limited to specific features, virtual items, or access to certain Users, at any time, at its sole discretion, with or without prior notice. The Company shall bear no liability for any loss, inconvenience, or damages caused by such modification or termination, including but not limited to lost earnings, virtual assets, or account balances.
3. In the event of permanent service termination, Users expressly waive any and all claims for compensation, refunds, or alternative services. However, certain data may be retained for legal compliance, fraud prevention, and security monitoring purposes, as outlined in the Privacy Policy. Any unused virtual items, Points, or account balances shall be permanently forfeited without liability to the Company. The Company shall bear no liability for any resulting inconvenience, financial loss, reputational damage, or opportunity cost incurred by Users.

Article 20: Limitations on Use

1. The Company may limit or suspend the Service in cases of force majeure, technical issues, or violations of this Agreement.
2. Users are responsible for protecting their account credentials. The Company is not liable for any damages resulting from unauthorized access due to User negligence.
3. The Company is not liable for issues or disruptions in Service resulting from actions taken by third-party app stores, including but not limited to account suspensions, payment disputes, or content removal by app store operators.

Article 21: AI Training & Data Usage

• By using the Service, Users acknowledge and agree that their interactions, including but not limited to voice chat, text messages, and user-generated content, may be used for AI training, machine learning, and product development purposes.
• The Company retains a perpetual, irrevocable, royalty-free, worldwide license to store, process, analyze, and utilize user-generated data for service improvements, content moderation, AI training, and business operations. Users acknowledge that Once data has been processed for AI learning, it is no longer individually retrievable, modifiable, or subject to deletion. AI models derived from such data remain the property of the Company. Users waive all rights to request deletion, alteration, or reversal of AI-trained data. Any AI-generated outputs derived from user data shall remain the sole property of the Company.
• Users acknowledge and agree that they have no ownership, compensation rights, or control over any data used for AI training, machine learning, or product improvements. Users expressly waive all legal, monetary, or proprietary claims regarding its use, reproduction, modification, adaptation, aggregation, or commercial exploitation by the Company or its affiliates, licensors, partners, successors, or assigns in any form. Users further agree that any AI-generated content, features, or models derived from their interactions shall be the exclusive and unrestricted property of the Company, which reserves the right to use, license, sublicense, distribute, sell, modify, or commercialize such AI-generated assets in perpetuity, without notice or compensation to Users.
• The Company reserves the right to anonymize and aggregate user data for analytical and commercial purposes, and such data will not be considered personal data under GDPR or CCPA regulations once anonymized.

Article 22: Disclaimer of Liability for Communication and Service Quality

1. Service Environment: The Company provides the Service on an “as is” and “as available” basis. Users acknowledge that the quality and availability of the Service, including but not limited to voice chat, text chat, or other communication functions, may be affected by factors beyond the Company’s control, such as:
• Network connectivity issues,
• Device limitations or malfunctions,
• Internet service provider (ISP) performance,
• Unforeseen technical difficulties, or
• External interference such as latency, packet loss, or data transmission failures.
2. No Guarantee of Quality: The Company does not guarantee:
• Continuous or uninterrupted access to the Service,
• The quality or performance of communication features, including audio quality, latency, or message delivery times.
• That the Service will always meet the User’s expectations in terms of quality or availability.
3. Liability Limitation: To the maximum extent permitted by law, the Company is not liable for:
• Any interruptions, delays, or errors in communication (e.g., voice chat, text messaging) or other Service features,
• Any degradations in the quality of Service due to network issues, user device configurations, or third-party services,
• Any data loss, message failures, or inaccuracies in communication due to technical issues outside the Company’s direct control.
4. External Services and Providers: The Company relies on third-party service providers, including ISPs, app stores, and cloud platforms, for the provision of the Service. Users acknowledge that the Company is not responsible for disruptions or quality issues caused by these third-party providers.
5. No Warranty: The Company makes no warranties, express or implied, regarding the fitness for a particular purpose, merchantability, accuracy, fairness, reliability, or non-infringement of the Service, including but not limited to AI-generated content, automated recommendations, and moderation decisions. The Company disclaims all responsibility for ensuring the reliability or availability of the Service beyond its control.
6. Exclusion for Force Majeure: The Company makes no warranties regarding uninterrupted access, quality, or reliability of the Service, including communication features such as voice or text chat. Users acknowledge that service interruptions may occur due to third-party failures, technical issues, or force majeure events beyond the Company’s control.

Article 23: Limitation of Liability

1. To the maximum extent permitted by law, the Company is not liable for:
• Any service interruptions, delays, errors, or degraded performance,
• Any modifications, suspensions, or discontinuations of the Service, in whole or in part,
• Any loss of data, earnings, virtual assets, or user-generated content,
• Any expectations, assumptions, or reliance Users may have regarding the availability, quality, or results of the Service.
2. The Company provides the Service “as is” and disclaims all warranties, express or implied, including but not limited to merchantability, fitness for a particular purpose, reliability, security, availability, or performance.
3. The Company shall not be liable for any damages resulting from force majeure events, including but not limited to:
• Natural disasters, war, civil disturbances, or terrorism,
• Government actions, legal or regulatory changes, or third-party platform policies,
• Failures of internet service providers, hosting services, or cloud infrastructure,
• Unforeseen technical difficulties beyond the Company’s control.
4. The Company does not guarantee the accuracy, reliability, legality, or completeness of any user-generated content and shall not be liable for any damages arising from its use.
5. Under no circumstances shall the Company be liable for any direct, indirect, incidental, special, consequential, punitive, or exemplary damages, including but not limited to:
• Lost business opportunities, loss of reputation, or goodwill,
• Data loss, service interruptions, or disruptions,
• Lost earnings or unrealized profits,
• Any claims arising from reliance on the Service or its content, whether foreseeable or not.
6. Users acknowledge that the Company does not guarantee the continuous availability of the Service and may modify, suspend, or terminate access to the Service, in whole or in part, at any time without liability. Users agree to waive all claims against the Company for any loss, inconvenience, or damages resulting from such modifications or terminations.
7. By using the Service, Users agree to waive any claims, rights, or remedies against the Company to the fullest extent permitted by law.

Article 24: Intellectual Property Rights

1. Users retain ownership of content they create and post within the Service but grant the Company an irrevocable, perpetual, worldwide, royalty-free license to use, modify, reproduce, and distribute such content for operational, promotional, and commercial purposes, even after account deletion.
2. The Company owns all rights to content created by the Company, including Mate profiles and other assets.

Article 25: Child Safety and CSAE (Child Sexual Abuse and Exploitation) Policy

1. Zero Tolerance Policy
   The Company maintains a strict zero-tolerance policy regarding Child Sexual Abuse and Exploitation (CSAE). This includes, but is not limited to:
• Grooming of minors for sexual purposes,
• Sharing or promoting Child Sexual Abuse Material (CSAM),
• Any attempt to engage minors in sexualized or exploitative interactions.
2. Public Policy Statement
   The Company publishes this CSAE policy to ensure transparency and to help protect children globally. This policy is available within the Terms of Service and applies to all users regardless of age.
3. In-App Reporting Mechanism
   Users may report any suspicious behavior or potential violations related to Child Sexual Abuse and Exploitation (CSAE) directly through the in-app reporting feature or by contacting our support team via email at support@hugapp.com. All reports are reviewed promptly by our internal team. Upon verification, the Company will take appropriate action, which may include but is not limited to:
• Immediate account suspension or termination,
• Removal of offending content,
• Notification to relevant law enforcement authorities or child protection organizations in accordance with applicable laws and industry standards.
4. Compliance with Applicable Laws
   The Company complies with all relevant laws and global standards regarding the prevention of online child sexual exploitation, including obligations set forth by app marketplaces such as Google Play and the Apple App Store.
5. Designated Point of Contact for CSAE Concerns
   For inquiries or concerns related to CSAE policy compliance, the Company may be contacted at:
   support@hugapp.com
   This contact is designated to receive and respond to CSAE-related matters.

Article 26: Indemnification

1. Users agree to indemnify, defend, and hold harmless the Company, its affiliates, and its employees from any claims, liabilities, damages, costs, or expenses, including reasonable legal fees, arising from their use of the Service, their violation of these Terms, or their infringement of any third-party rights, including intellectual property rights.
2. The Company may seek equitable relief, such as injunctions, in addition to damages claims if a User’s violation results in irreparable harm to the Company.

Article 27: Governing Law and Jurisdiction

1. This Agreement is governed by the laws of the Republic of Korea.
2. Any disputes arising from this Agreement shall be subject to the exclusive jurisdiction of the courts located at the Company’s headquarters.
3. The parties agree to first attempt to resolve any disputes through good faith negotiations. If unresolved, the dispute will be submitted to binding arbitration in accordance with the laws of the Republic of Korea, unless otherwise agreed by both parties.

Addendum

This Agreement takes effect on March 21, 2025.