Terms of Service

Last updated: 1 March 2026

1. Introduction

These Terms of Service ("Terms") constitute a legally binding agreement between you ("User", "you", or "your") and Kavod Technologies (Pty) Ltd ("Kavod", "we", "us", or "our"), a company founded in 2015 and registered with the CIPC in 2022 (Registration No. 2022/XXXXXX/07), with its registered office in Cape Town, Western Cape.

By accessing or using the Karat Dollar ("KAD") platform, mobile application, website, or any associated services (collectively, the "Services"), you agree to be bound by these Terms. If you do not agree, you must not use the Services.

2. Definitions

  • KAD means Karat Dollar, a resource-backed digital currency issued by Kavod Technologies.
  • Resource Basket means the portfolio of physical commodities (including gold, platinum, and copper) that backs the value of KAD.
  • Wallet means your digital account on the KAD platform used to store, send, and receive KAD.
  • KIPS means the KAD Instant Payment System for real-time transfers.
  • BNPL means Buy Now Pay Later, the credit facility offered through the platform.
  • Stokvel means a group savings arrangement facilitated through the platform.
  • RAPI means Resource Asset Payments Interface, our developer API.

3. Eligibility

To use the Services, you must:

  • Be at least 18 years of age (or the age of majority in your jurisdiction);
  • Be a resident of a country where KAD services are available (currently South Africa, Nigeria, Kenya, Ghana, Tanzania, Uganda, Zimbabwe, Rwanda, Ethiopia, Malawi, and the United Kingdom);
  • Complete identity verification (Know Your Customer / FICA) as required by applicable law;
  • Not be a person or entity subject to sanctions imposed by the United Nations, European Union, or the government of South Africa.

4. Account Registration and Security

You must provide accurate, current, and complete information during registration. You are responsible for maintaining the confidentiality of your account credentials, including your password, PIN, and any biometric data enrolled for authentication.

You must immediately notify us of any unauthorised access to your account. We are not liable for any loss arising from your failure to protect your credentials.

5. KAD Digital Currency

5.1 Nature of KAD

KAD is a digital currency backed by a basket of physical commodities held in trust by regulated custodians, including Rand Refinery (gold), Anglo Platinum (platinum), and LME-approved warehouses (copper). KAD is not a stablecoin pegged to any fiat currency. Its value fluctuates based on the underlying commodity basket prices.

5.2 No Guarantee of Value

While KAD is backed by tangible assets, we do not guarantee that the value of KAD will remain stable or increase. Digital assets carry inherent risk. You should assess your risk tolerance before converting fiat currency to KAD.

5.3 Reserve Audits

Reserve holdings are independently audited on a quarterly basis. Audit reports are published on our Reserve Proof page. The target backing ratio is maintained above 100%.

6. Wallet Services

Your KAD Wallet allows you to store, send, receive, and convert KAD. Wallet top-ups may be made via electronic funds transfer (EFT), debit/credit card, mobile money, or cryptocurrency conversion. Withdrawal to bank accounts and mobile money wallets is available subject to applicable fees and KYC limits.

7. Payment Services

KAD facilitates payments between users, between users and merchants, and across borders. Payment processing is subject to:

  • Transaction limits based on your KYC verification tier;
  • Applicable fees as published on our Fees & Limits page;
  • Anti-money laundering (AML) and counter-terrorism financing (CTF) screening;
  • Compliance with the Financial Intelligence Centre Act 38 of 2001 (FICA).

8. BNPL (Buy Now Pay Later)

Our BNPL service allows eligible users to make purchases and repay in instalments. Eligibility is determined by our AI-powered credit scoring system. By using BNPL, you agree that:

  • Missed payments may result in late fees and may affect your credit score;
  • We may report payment behaviour to credit bureaus;
  • BNPL is subject to the National Credit Act 34 of 2005 (NCA) where applicable;
  • Interest-free plans (Pay-in-4) carry no interest if paid on time; Flex plans carry interest at the rates disclosed at the time of application.

9. Cross-Border Transfers

Cross-border remittance services are provided in partnership with licensed Money Transfer Operators (MTOs) in each jurisdiction. Transfers are subject to applicable exchange rates, fees, and regulatory limits. You are responsible for ensuring compliance with both sending and receiving country regulations.

10. Insurance Services

Micro-insurance products offered through the platform are underwritten by licensed insurance providers. Kavod Technologies acts as an intermediary and is not the insurer. Claims are subject to the terms and conditions of the applicable insurance policy.

11. Prohibited Activities

You may not use the Services to:

  • Engage in money laundering, terrorism financing, or any illegal activity;
  • Circumvent transaction limits or KYC requirements;
  • Use automated systems to exploit the platform (bots, scrapers, etc.);
  • Impersonate another person or entity;
  • Manipulate the price of KAD or any resource in the basket;
  • Use the platform for gambling or unlicensed securities trading.

12. Fees

Fees for using the Services are published on our Fees & Limits page and may be updated from time to time. We will provide 30 days' notice of material fee changes. By continuing to use the Services after a fee change, you accept the updated fees.

13. Intellectual Property

All intellectual property rights in the Services, including the KAD brand, logos, software, and documentation, are owned by Kavod Technologies. You are granted a limited, non-exclusive, non-transferable licence to use the Services for personal or business purposes in accordance with these Terms.

14. Privacy

Your use of the Services is subject to our Privacy Policy, which describes how we collect, use, and protect your personal information in accordance with the Protection of Personal Information Act 4 of 2013 (POPIA).

15. Limitation of Liability

To the maximum extent permitted by South African law, Kavod Technologies shall not be liable for any indirect, incidental, special, consequential, or punitive damages, including loss of profits, data, or goodwill, arising from your use of the Services. Our total liability for any claim shall not exceed the amount of fees paid by you in the 12 months preceding the claim.

16. Dispute Resolution

Any dispute arising from these Terms shall first be referred to our internal complaints procedure. If unresolved, disputes shall be submitted to mediation administered by the Arbitration Foundation of Southern Africa (AFSA). The governing law is the law of the Republic of South Africa, and the courts of the Western Cape shall have jurisdiction.

17. Termination

We may suspend or terminate your access to the Services at any time if you breach these Terms, if required by law, or if we discontinue the Services. Upon termination, you may withdraw any remaining KAD balance (less applicable fees) to a bank account, subject to regulatory requirements.

18. Amendments

We may amend these Terms at any time by publishing the updated version on our website. Material changes will be notified via email or in-app notification at least 30 days in advance. Your continued use of the Services after the effective date constitutes acceptance.

19. Contact

For questions about these Terms, contact us at:

  • Email: legal@karatdollar.com
  • Address: Kavod Technologies (Pty) Ltd, Cape Town, Western Cape, South Africa
  • Complaints: complaints@karatdollar.com