Terms of Service and User Agreement

Lump provides a technological scheduling and disbursement service. By creating a Lump, you instruct us to receive a single upfront funding payment and, in turn, schedule and execute a series of automated outbound daily electronic funds transfers (EFTs) to a designated Interac e-Transfer email address.

1.1 Components of the Transaction

When you fund a Lump, your total upfront payment consists of two distinct and legally severable components:

• The Principal: The aggregate monetary value that will be disbursed back to your designated recipient sequentially over your chosen duration.
• The Structuring & Facilitation Fee (The "Lump Fee"): A one-time per Lump, upfront service charge. This fee is earned in full at the exact moment your Lump is successfully funded and the disbursement schedule is written to our servers. It covers the immediate cost of identity verification, fraud screening, payment gateway processing, and algorithmic scheduling. It is not a charge for the ongoing daily administration of your Lump, and it is not a charge for the advancing of credit.

1.2 Definition of "Delivered Product"

For the purposes of payment processing, consumer protection, and dispute resolution, our contractual obligation for each daily installment is legally fulfilled, and the product is deemed "Delivered," at the precise moment Lump Financial Services LTD successfully initiates the outbound Interac e-Transfer API request to your designated email address.

Delivery is measured exclusively by our system's initiation timestamp.

We do not warrant or guarantee the timeline of your receiving financial institution, nor are we responsible if you fail to open the email, fail to answer a security question, or if the recipient bank places a hold on the funds.

1.3 No Credit Extended by Lump

Lump does not lend money, does not extend credit, and does not charge interest. The Lump Fee is a flat, one-time price for the technological service of routing and scheduling your daily disbursements. It does not vary with the duration of your Lump or with how long any funds are held; it varies only by payment rail to reflect processing and fraud-screening cost. It is not interest, a finance charge, or any other cost of borrowing within the meaning of section 347 of the Criminal Code of Canada. If you choose to fund a Lump with a credit card, Klarna, or Afterpay, any credit is extended solely by that provider under its own agreement with you. Lump is not a party to that agreement and receives no portion of any interest, instalment fee, or late fee charged by that provider.

To comply with the Retail Payment Activities Act (RPAA), the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA), and FINTRAC regulations, Lump strictly enforces identity verification.

2.1 Verification Requirements

You must successfully complete our Know Your Customer (KYC) protocols, which include providing a valid, government-issued Canadian identification document and submitting to a live biometric facial scan (liveness check). We reserve the right to mandate secondary verification via your financial institution.

2.2 Name Matching and Authorization

The verified legal name on your Lump account must match the legal name registered to the payment method (credit card, debit card, Klarna, Afterpay, or bank account) used to fund your Lump. By initiating a funding transaction, you represent and warrant that you are the lawful, authorized owner of the payment instrument. Transactions exhibiting name mismatches will be voided, frozen, or refunded at our sole discretion.

2.3 Recipient Identification and Proof of Delivery

When you create a Lump, you must provide the full legal name of your designated recipient exactly as it appears on the bank account that will receive the daily deposits. When an Interac e-Transfer is accepted or auto-deposited, Interac and the receiving financial institution confirm to Lump the legal name of the account holder who received the funds. You acknowledge and agree that Lump records and retains that confirmation, together with our initiation timestamp, as conclusive proof of delivery of that daily installment. Lump may pause a Lump, and withhold further disbursements, when the confirmed recipient name does not match the name you provided, until the discrepancy is resolved.

Lump employs an algorithmic risk-management framework called the Progressive Trust Ladder to protect the platform, our members, and the recipients of their deposits from payment fraud. We do not guarantee the availability of card or pay-later funding (credit cards, debit cards, Klarna, Afterpay) to all members at all times.

3.1 Payment Authentication and Modifications

All card payments require 3D Secure authentication by your card issuer. A payment that is declined, not authenticated, or later disputed will not fund, or will no longer fund, a Lump. We may modify funding qualifications, daily caps, and duration caps at any time to protect the health of the business. The values in force are applied automatically when you fund a Lump.

We guarantee that all scheduled daily disbursements will be initiated by our systems prior to 8:00 AM Eastern Time (ET) on the scheduled dates.

4.1 Exclusions of Liability

Lump utilizes the Interac® network and third-party banking infrastructure to route your funds. To the maximum extent permitted by applicable law, Lump Financial Services LTD shall not be held liable for delayed access to funds resulting from:

• Standard fraud-prevention or clearing holds executed by your receiving bank.
• Network-wide outages, API latency, or scheduled maintenance by Interac or participating financial institutions.
• Typographical errors made by you when entering the destination email address.

You retain absolute control over your undisbursed Principal and may cancel an active Lump via your Account Dashboard by clicking the "Cancel Lump" button, pursuant to Quebec Bill 10 and applicable consumer protection statutes.

5.1 Cancellation Execution

• Cancellations initiated between 9:00 AM ET and 11:59 PM ET take effect at midnight ET of that calendar day. You may revert a cancellation request prior to midnight ET.
• Once a cancellation is finalized at midnight ET, the remaining scheduled disbursements are permanently voided.

5.2 Refund Processing and the Lump Fee

Pursuant to Article 2125 and Article 2129 of the Civil Code of Quebec, you may resiliate this service contract at any time. Upon cancellation:

• The Principal: 100% of the remaining, undisbursed Principal will be refunded to you.
• The Lump Fee: Because the Lump Fee corresponds to the completed, one-time service of processing your initial payment and architecting the digital disbursement schedule (which is fully executed on day one), it represents the value of work already performed and actual costs incurred prior to the notice of resiliation. Therefore, the Lump Fee is non-refundable.

5.3 Destination of Refunds

To comply with federal Anti-Money Laundering (AML) directives, all refunds of undisbursed Principal will be credited exclusively back to the original payment instrument used to fund the Lump. Refund processing times depend on the payment method used to fund the Lump (up to 3 business days for Interac, 3 to 10 business days for Cards and up to 14 business days for Klarna and Afterpay).

Lump maintains a zero-tolerance policy for fraudulent disputes and first-party misuse.

6.1 Prohibited Chargebacks

By agreeing to these Terms, you expressly agree not to initiate a network chargeback, payment dispute, or reversal claim through your bank, credit card issuer, or BNPL provider for:

• Funds that correspond to daily deposits already initiated to your designated email address (Delivered Product).
• The one-time Structuring & Facilitation Fee (Lump Fee) after the Lump schedule has been successfully funded.
• Delays in fund availability caused by your receiving bank or the Interac network.

6.2 Merchant Defense and Liability

In the event of a chargeback or dispute, whether through a card network, your bank, Klarna, or Afterpay, Lump will actively contest it by providing the issuer, processor, or provider with your KYC identity records and biometric verification result, IP and device logs, authentication records (including 3D Secure cryptographic data), our initiation timestamps for every Interac e-Transfer, and the Interac deposit confirmations identifying the legal name of the account holder who received each daily transfer. Filing a chargeback while retaining the disbursed Principal constitutes unjust enrichment and a material breach of this Agreement. We reserve the right to suspend accounts and report fraudulent activity to financial authorities.

Pursuant to the Retail Payment Activities Act (RPAA), Lump Financial Services LTD safeguards the Principal portion of your funds. End-user funds are held in a segregated safeguarding account, strictly separated from Lump's operational capital, and are administered on your behalf in accordance with the rules of the Civil Code of Quebec governing the administration of the property of others. Lump acts as administrator of those funds, not as their owner.

Lump's payment activities are subject to the RPAA, administered by the Bank of Canada; to the Quebec Money-Services Businesses Act, administered by the Autorité des marchés financiers (AMF); and to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, administered by FINTRAC.

Please note: Lump Financial Services LTD is a Payment Service Provider, not a bank. Even where safeguarded funds are placed with a CDIC-member institution, funds held by Lump are not insured by the Canada Deposit Insurance Corporation (CDIC) against the insolvency of Lump Financial Services LTD.

Lump collects and uses personal information in accordance with the Personal Information Protection and Electronic Documents Act (PIPEDA) and Quebec's Act respecting the protection of personal information in the private sector, as amended by Law 25. Our Privacy Policy forms part of these Terms and describes what we collect, why, who we share it with, how long we keep it, and your rights.

By completing identity verification, you give your express consent to the collection of images of your government-issued identification and a live facial capture, and to their comparison, for the sole purposes of verifying your identity, preventing fraud, and meeting our obligations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. Identity records are retained only as long as those purposes and applicable law require.

Some of our service providers, including our identity verification provider, payment processor, cloud hosting, and email delivery providers, store or process personal information on servers located outside Quebec and outside Canada, principally in the United States. Information processed there may be accessible to the authorities of that jurisdiction under its laws. We assess each transfer and bind each provider contractually to protect your information.

Read the full Privacy Policy.

The Lump platform is designed to provide financial stability, budget management, and secure gifting. You agree not to use the service to:

• Facilitate money laundering, terrorist financing, or any criminal enterprise.
• Fund a Lump using unauthorized, stolen, or third-party financial instruments.
• Obfuscate your identity, location, or intended use of the funds.

To the fullest extent permitted by the laws of the Province of Quebec and the federal laws of Canada, Lump Financial Services LTD, its directors, officers, and affiliates shall not be liable for any indirect, incidental, consequential, special, or punitive damages arising out of your use of the platform. Our maximum aggregate liability for any claim arising from a specific Lump shall be strictly limited to the Lump Fee paid for that transaction, except regarding our absolute obligation to refund your undisbursed Principal as outlined in Section 5.

These Terms, and all interactions with Lump Financial Services LTD, shall be governed by and construed in accordance with the laws of the Province of Quebec and the federal laws of Canada applicable therein. Any legal action or proceeding arising under these Terms shall be brought exclusively in the courts located in the judicial district of Montreal, Quebec.

We may update these Terms periodically to reflect changes in regulatory requirements or operational upgrades. Material changes will be communicated to you via email or platform notification prior to their effective date. Continued use of the platform following the posting of amended Terms constitutes your acceptance of the changes.

Lump Financial Services LTD

Headquarters: 658 - 2000 McGill College Ave, H3A 3H3, Montreal, Quebec, Canada

Email: support@lump.money

Phone: 1-855-221-2212