Terms and Conditions

Introduction

Welcome to Hawala! These Terms and Conditions ("Terms") are a legally binding agreement between you (the individual user, referred to as "you" or "User") and Hawala Technologies, Inc. (referred to as "Hawala", "we", "us" or "our"). By downloading or using the Hawala mobile application ("App") or any related services ("Services"), you agree to these Terms, so please read them carefully. If you do not agree, you must not use our App or Services. We also encourage you to review our Privacy Policy (which explains how we handle your personal data) and any other policies posted on our website or App.

Hawala provides financial services to people across many countries. Since our regulatory compliance may vary by region, we either partner with licensed financial entities in certain jurisdictions or operate under regulatory sandbox programs that allow for innovation in financial services. When you use our Services, we may notify you about the specific regulations and protections that apply to your transactions and account.

We have the right to update these Terms from time to time. We will notify you of any changes that materially affect your rights or obligations. Your continued use of the App or Services after such notice means you accept the updated Terms.

Key Points (Highlights)

• •Eligibility (18+): You must be at least 18 years old to use Hawala's App and Services. By creating an account, you confirm that you are 18 or older and capable of entering into a legal agreement.
• •Identity Verification: We follow strict Know-Your-Customer (KYC) and anti-money laundering (AML) compliance procedures. You agree to provide accurate personal information and documentation when requested (e.g., government-issued ID, selfie, proof of address). We reserve the right to refuse or suspend service if we cannot verify your identity or if we suspect fraudulent activity.
• •Personal Use & Account Security: Your Hawala account is for your personal use only. You must not share access or let others use it on your behalf. Keep your login credentials secure, as you are responsible for all activities that occur under your account. Report any unauthorized access immediately.
• •Not a Bank – No Deposit Insurance: Hawala is not a bank, and funds in your Hawala account are not insured or guaranteed by any government agency (e.g. no FDIC protection in the US). However, we partner with licensed financial institutions in various jurisdictions or operate under regulatory sandbox programs. The specific protections available to you depend on your location and the applicable regulatory framework.
• •Stablecoin Rails & Crypto Risks: Hawala uses stablecoin cryptocurrency "rails" to settle transactions across borders. This means your funds may be converted into stablecoin digital assets for transfer and then converted back to local currency. You will not directly hold or manage cryptocurrency, but your funds will temporarily exist as stablecoins in the background. This involves risks such as price volatility, technical failures, and regulatory changes. By using our Services, you accept these risks.
• •Licensed Services or Sandboxes: In each country or region, Hawala's services are provided either by a duly licensed entity/partner or under a regulatory sandbox exemption. This means that depending on where you live, you are served by either our regulated financial institution partners or via a sandbox program authorized by regulators. We will let you know who your service provider is if it's not directly Hawala. Services under a regulatory sandbox may have certain limitations and may not offer all consumer protections of fully licensed services.

1. Definitions

"App" means the Hawala mobile application software (including any updates) and any accompanying documentation or interfaces.

"Services" means all products and services provided by Hawala through the App or any Hawala website or API, including money transfer services, digital wallet accounts (multi-currency accounts), currency conversion, local cash withdrawal via agents, and any other features we make available to you.

"Stablecoin" refers to a type of cryptocurrency designed to maintain a stable value relative to a reference currency (e.g., 1 stablecoin ≈ 1 USD). Hawala uses stablecoins (backed by fiat reserves) as a technical means to transfer value internationally. For example, we may convert your funds into a USD stablecoin to send abroad, then convert it back to local currency for your recipient.

"Partner Agents" or "Local Agents" means third-party businesses (such as money service bureaus, cash-out agents, or other financial partners) that Hawala has partnered with to enable cash withdrawals or other services in a local area. These agents operate under their own licenses and agreements with Hawala to serve our users.

"Hawala Account" (or "Account") means your personal user account on Hawala's platform that allows you to access the Services, view balances, and initiate transactions.

2. Eligibility and Account Registration

You must be at least 18 years old to use the App and Services. By registering for an account, you represent and warrant that you are 18 or older and have the legal capacity to enter into this agreement.

To use most of our Services, you need to create a Hawala Account. When you sign up, you agree to:

• •Provide accurate, current, and complete information during registration.
• •Maintain and promptly update your account information to keep it accurate and current.
• •Keep your login credentials (username, password, PIN, biometric access) confidential.
• •Notify us immediately of any unauthorized access to or use of your account.

Due to regulatory requirements, we must verify your identity before you can fully use our Services. This process is known as Know Your Customer (KYC). You will need to provide:

• •A valid government-issued photo ID (passport, driver's license, or national ID card)
• •A selfie or biometric scan for facial recognition matching
• •Proof of address (such as a utility bill or bank statement)
• •Additional documentation as required by law in your jurisdiction

We use third-party verification services to assist with this process. Failure to complete identity verification may result in restricted access to certain features or account suspension.

3. Our Services and How They Work

Hawala allows you to send money internationally and domestically. When you initiate a transfer:

• •You provide recipient information and the amount to send
• •We quote a fee and exchange rate (if applicable)
• •You fund the transfer from your Hawala balance or linked payment method
• •We process the transfer using our network, which may include stablecoin conversion
• •The recipient receives funds in their local currency

We aim to make cross-border transfers fast and low-cost. To do this, Hawala's backend uses stablecoin cryptocurrency rails for settlement. In practice, this means when you send money from Country A to Country B, we might convert the funds to a stablecoin (e.g., a USD-pegged token) and transfer it via blockchain to our partner in Country B, who then converts it back to local currency for the recipient. You don't need to understand or manage cryptocurrency directly—we handle all conversions in the background.

In certain locations, recipients can collect cash from our Partner Agents. When sending to a cash pickup location:

• •The recipient will receive a reference code or QR code
• •They must present valid ID at the agent location
• •The agent verifies their identity and provides the cash

Partner Agents are independent businesses, and while we select them carefully, we are not responsible for their individual acts or omissions beyond our direct control.

Hawala may provide you with local receiving account details in certain currencies (for example, a U.S. account number and routing number for USD, or an IBAN for EUR) to facilitate receiving transfers from third parties into your Hawala account. These details might be labeled as "Your USD account" or "Your Euro account" in the App.

Please note: These are virtual account details tied to Hawala or our partner institution, not a personal bank account in your name. When someone sends money to those details, the funds will be received by Hawala's account (or our partner's account) and then credited to your Hawala balance.

4. Acceptable Use and Prohibited Activities

When using Hawala, you must comply with all applicable laws and regulations and these Terms. We take misuse of our Services seriously. This section outlines activities that are not allowed.

You agree to use our Services only for lawful purposes and in accordance with these Terms. You will not use the Services to engage in any activity that:

• •Illegal Activities: Engaging in, or facilitating others in, any activity that violates any law, statute, ordinance, or regulation. This includes, for example, transactions involving proceeds of crime, money laundering, terrorist financing, tax evasion, or any other illegal financial activity.
• •Fraud or Misrepresentation: You will not use Hawala to impersonate any person or entity, or to misrepresent your identity, source of funds, or payment instructions. You must not defraud, deceive, or trick Hawala or other users.
• •Prohibited Goods/Services: You may not use our Services to send or receive payments for goods, services, or activities that are illegal or highly risky. This includes (but is not limited to) transactions related to: narcotics or controlled substances, weapons or ammunition, counterfeit goods, stolen property, human trafficking, or any form of exploitation.
• •Gambling and Adult content: Unless explicitly authorized by us, you cannot use Hawala to pay for any form of unlawful gambling, betting, lottery tickets, or any gambling activities that are not legal in both your jurisdiction and the recipient's jurisdiction.
• •Regulated Financial Services: You cannot use your Hawala account to operate as an unlicensed financial intermediary. For example, you may not use Hawala to conduct cryptocurrency trading for others, to run a money transmission business, or to provide financial services that require regulatory approval.

If we suspect or determine that you have violated these Terms or engaged in prohibited activities, we may:

• •Suspend or terminate your account immediately
• •Freeze or confiscate funds in your account as required by law
• •Report your activities to law enforcement or regulatory authorities
• •Take legal action to recover any losses or damages

5. Fees, Exchange Rates, and Payments

Hawala charges fees for certain Services. All applicable fees will be clearly disclosed to you before you confirm any transaction. Our fees may include:

• •Transfer fees (for sending money)
• •Currency conversion fees (built into the exchange rate)
• •Cash pickup fees (if applicable)
• •Account maintenance fees (in certain jurisdictions)

We reserve the right to change our fees at any time, but we will notify you of any changes that affect your account.

Hawala provides currency exchange as part of its remittance service. When you convert or send money from one currency to another, we will apply an exchange rate. Typically, Hawala uses the mid-market exchange rate (the rate you'd find on public markets, which is the midpoint between the buy and sell rates) and adds a small margin which is included in the fee we disclose.

Exchange rates fluctuate constantly. The rate you see when you initiate a transaction is the rate that will apply, unless there is a delay in funding the transaction, in which case we may update the rate or cancel the transaction.

Because Hawala uses stablecoins internally, it's worth noting that the exchange rate we offer effectively incorporates the conversion from fiat to stablecoin and back. For example, if you send money from USD to EUR, we might convert USD to a USD-pegged stablecoin, transfer it, and convert stablecoin to EUR. We manage these conversions via liquidity providers and aim to minimize costs, but there may be small differences due to stablecoin market dynamics.

6. Stablecoin & Cryptocurrency Risks Disclosure

When you send or receive money through Hawala, your funds may be temporarily converted into stablecoins—cryptocurrencies designed to maintain a stable value relative to fiat currencies like the US Dollar. You won't directly hold or manage these stablecoins, but your money will exist as digital assets during the transfer process.

• •Depegging Risk: While stablecoins are designed to maintain a 1:1 value with their reference currency, they can sometimes lose this peg due to market conditions, technical issues, or loss of confidence. If a stablecoin depegs during your transaction, you could receive less value than expected.
• •Technical Risks: Blockchain networks can experience congestion, bugs, or failures. Smart contracts (automated programs that handle transactions) may contain vulnerabilities. These technical issues could delay your transfer or, in extreme cases, result in loss of funds.
• •Regulatory Risk: Cryptocurrency regulations are evolving rapidly worldwide. Changes in laws or regulations could affect our ability to operate in certain jurisdictions or could impact the value or usability of stablecoins.
• •Counterparty Risk: Stablecoins are typically issued by companies that hold reserves of fiat currency. If the issuer faces financial difficulties, becomes insolvent, or mismanages reserves, the stablecoin could lose value.
• •Liquidity Risk: In times of market stress, it may become difficult to convert stablecoins back to fiat currency at the expected rate, potentially causing delays or unfavorable exchange rates.

Hawala takes several steps to minimize these risks:

• •We use only established, audited stablecoins with strong track records
• •We maintain relationships with multiple stablecoin issuers and liquidity providers
• •We monitor market conditions and may pause services if risks become elevated
• •We maintain insurance and reserves to cover certain operational risks

By using Hawala's Services, you acknowledge and accept these cryptocurrency-related risks. You understand that while we work to minimize risks, we cannot eliminate them entirely. You agree that Hawala is not responsible for losses resulting from stablecoin depegging, blockchain failures, regulatory changes, or other cryptocurrency-related risks beyond our reasonable control.

7. License to Use the App and Intellectual Property

Subject to your compliance with these Terms, Hawala grants you a limited, non-exclusive, non-transferable, revocable license to download and use the App on your personal mobile device solely for your personal, non-commercial use of our Services.

You agree not to:

• •Copy, modify, or create derivative works of the App
• •Reverse engineer, decompile, or disassemble the App
• •Remove or alter any proprietary notices or labels
• •Use the App for any commercial purpose without our written consent
• •Attempt to gain unauthorized access to our systems or networks

The App, Services, and all related intellectual property rights (including but not limited to software, text, graphics, logos, images, and compilations) are and will remain the exclusive property of Hawala and its licensors. These Terms do not grant you any rights to use Hawala's trademarks, logos, or other brand features.

8. App Store Platform Terms

If you download the App from the Apple App Store or Google Play Store (each a "Platform"), you acknowledge that:

• •These Terms are between you and Hawala only, not with the Platform
• •The Platform has no obligation to provide maintenance or support for the App
• •In the event of any failure of the App to conform to applicable warranties, you may notify the Platform for a refund of the purchase price (if any), but the Platform has no other warranty obligations
• •The Platform is not responsible for any claims relating to the App, including product liability claims, legal compliance failures, or intellectual property infringement
• •You must comply with all applicable Platform terms and conditions

The Platforms are third-party beneficiaries of these Terms and have the right to enforce these Terms against you.

9. Suspension, Termination, and Account Closure

You may close your Hawala account at any time by contacting our support team. Before closing your account, you must:

• •Complete or cancel all pending transactions
• •Withdraw any remaining balance (subject to our withdrawal policies)
• •Resolve any disputes or negative balances

We may suspend or terminate your account or access to Services at any time if:

• •You violate these Terms or any applicable laws
• •We suspect fraudulent, illegal, or suspicious activity
• •You provide false or misleading information
• •You fail to complete identity verification or provide requested documentation
• •Your account shows unusual activity patterns that suggest security risks
• •We are required to do so by law, court order, or regulatory directive
• •We cease operations in your jurisdiction

Upon termination:

• •Your right to use the App and Services immediately ceases
• •We may complete, cancel, or reverse pending transactions at our discretion
• •You remain liable for all obligations incurred before termination
• •We will handle any remaining balance according to applicable law (which may include holding funds for a specified period or remitting them to authorities)

10. Limitation of Liability and Disclaimers

Hawala strives to provide a secure and reliable service, but we provide the App and Services to you on an"AS IS" and "AS AVAILABLE" basis, without any express or implied warranties to the maximum extent permitted by law. This means that, while we will exercise reasonable care and skill in providing the Services, we do not guarantee that:

• •The Services will be uninterrupted, timely, secure, or error-free
• •The App will be compatible with your device or operating system
• •Any information provided through the Services will be accurate or complete
• •Defects or errors will be corrected

To the maximum extent permitted by law, Hawala and its officers, directors, employees, agents, and partners will not be liable for any indirect, incidental, special, consequential, or punitive damages, or any loss of profits, revenues, data, or use, arising out of or related to your use of the App or Services.

In jurisdictions that do not allow the exclusion of certain warranties or limitations on liability, our liability will be limited to the maximum extent permitted by law. In no event will our total liability to you exceed the greater of (a) the fees you paid to us in the 12 months before the event giving rise to liability, or (b) $100 USD.

The Services may contain links to third-party websites or services (such as Partner Agents or financial institutions). We are not responsible for the content, policies, or practices of these third parties. Your interactions with them are governed by their terms and policies, not ours.

11. Indemnification

You agree to indemnify, defend, and hold harmless Hawala, its affiliates, and their respective officers, directors, employees, agents, licensors, and suppliers from and against any claims, liabilities, damages, losses, costs, and expenses (including reasonable attorney's fees) arising out of or related to:

• •Your violation of these Terms
• •Your use or misuse of the App or Services
• •Your violation of any law or third-party rights
• •Any content or information you provide through the Services

We reserve the right to assume exclusive control of the defense of any matter subject to indemnification by you, in which case you agree to cooperate with our defense of such claim.

12. Changes to Service or Terms

We continuously work to improve our Services and may:

• •Add new features or services
• •Modify or discontinue existing features or services
• •Change fees or add new charges
• •Modify transaction limits or eligibility requirements

We will provide reasonable notice for material changes that adversely affect your existing rights.

We may update these Terms from time to time. When we do:

• •We will update the "Last Updated" date at the top
• •We will notify you through the App, by email, or other reasonable means
• •Material changes will typically include a notice period before taking effect

Your continued use of the Services after changes take effect constitutes acceptance of the updated Terms. If you don't agree with the changes, you should stop using the Services and close your account.

13. Governing Law and Dispute Resolution

These Terms and any disputes arising out of or related to them or the Services will be governed by the laws of [Applicable Jurisdiction], without regard to conflict of law principles. However, this choice of law will not deprive you of the protection of mandatory consumer protection laws in your jurisdiction.

We want to address your concerns without needing a formal legal case. Before filing a claim against Hawala, you agree to try to resolve the dispute informally by contacting our support team. We'll try to resolve the dispute informally by contacting you via email. If a dispute is not resolved within 60 days of submission, you or Hawala may bring a formal proceeding.

You and Hawala agree to resolve any claims through final and binding arbitration, except as set forth below. This includes disputes arising out of or relating to interpretation or application of this arbitration agreement, including its enforceability, revocability, or validity.

Arbitration will be conducted by [Arbitration Provider] under its rules. The arbitration will be held in [Location], or any other location we agree to. The arbitrator will have exclusive authority to resolve all disputes, except that a court may determine the scope and enforceability of this arbitration agreement.

The following claims are exceptions to the arbitration agreement:

• •Claims brought in small claims court
• •Claims for injunctive or equitable relief for intellectual property infringement
• •Claims that cannot be arbitrated under applicable law

You and Hawala agree that claims will be brought only in an individual capacity and not as part of any class, collective, or representative action. If this class action waiver is found unenforceable, the entire arbitration agreement will be null and void.

14. Miscellaneous Provisions

These Terms, together with our Privacy Policy and any other policies referenced herein, constitute the entire agreement between you and Hawala regarding the Services and supersede any prior agreements.

If any provision of these Terms is found to be invalid or unenforceable, the remaining provisions will continue in full force and effect. The invalid provision will be deemed modified to the minimum extent necessary to make it valid and enforceable.

No waiver of any term of these Terms will be deemed a further or continuing waiver of such term or any other term. Our failure to assert any right or provision will not constitute a waiver of such right or provision.

You may not assign or transfer these Terms or your rights under them without our prior written consent. We may assign our rights and obligations under these Terms without restriction.

We may provide notices to you via email, through the App, or by other reasonable means. You agree that electronic notices have the same legal effect as if provided in writing.

If you have questions about these Terms or need to contact us:

Hawala Technologies, Inc.
Email: support@hawala.app
Website: www.usehawala.com