Sticker Rental Agreement

This Sticker Rental Agreement ("Agreement") governs your participation in Stickier's short selling program. By initiating a short position, you agree to rent physical sticker merchandise from MMOD, Inc. ("Stickier," "Lessor," "we," "us") under the terms below.

1. Nature of Transaction

Short selling on Stickier is structured as a rental of physical goods, not a financial instrument or security. When you open a short position:

• You ("Lessee") are renting one or more physical sticker(s) from Stickier
• The rental deposit equals the current market value of the sticker(s)
• You receive the right to sub-let (sell) the rented sticker(s) to third parties
• You must return equivalent sticker(s) to conclude the rental
• You receive a commemorative "SHORTED" edition sticker as part of the rental

This is a rental transaction for physical merchandise. No securities, derivatives, futures, options, or other financial instruments are created or traded through this program.

2. Opening a Short Position (Rental Initiation)

2.1 Rental Deposit

To open a short position, you must pay a rental deposit equal to the current market price of the sticker(s) you wish to rent. This deposit:

• Secures your rental obligation
• Is held by Stickier for the duration of the rental period
• May be charged to your credit card or deducted from your account balance
• Is subject to adjustment if prices change before your listing sells

2.2 Sticker Minting and Listing

Upon receipt of your rental deposit:

• Stickier mints new sticker(s) and loans them to you
• The sticker(s) are automatically listed for sale on the marketplace at the current market price
• You may set an optional reserve price (minimum sale price)
• Your short position status is "Pending" until a buyer purchases your listing

2.3 Position Activation

Your short position becomes "Active" when:

• A buyer purchases your listed sticker(s) on the marketplace
• The buyer's payment is received and verified
• Sale proceeds are credited to your "Loan Balance" (held in escrow)

If no buyer purchases your listing within the specified timeframe, your position may be cancelled and your deposit refunded, minus any applicable fees.

3. Loan Balance and Proceeds

When your short listing sells:

• The buyer's payment is held in a "Loan Balance" escrow account
• This balance represents the proceeds from sub-letting the rented sticker(s)
• The Loan Balance is not withdrawable until you close your position
• Interest does not accrue on the Loan Balance

4. Return Obligation

To close your short position, you must return equivalent sticker(s) to Stickier:

• "Equivalent" means the same sticker type (company/index), any serial number
• You must purchase the return sticker(s) from the Stickier marketplace
• The purchase price is deducted from your account balance
• Upon return, your rental obligation is fulfilled

4.1 Settlement

When you close your position:

• Your Loan Balance (from the original sale) is released
• Your rental deposit is returned
• Your profit or loss equals: Loan Balance minus cost to acquire return sticker(s)
• Net proceeds are credited to your account balance

5. Price Movement and Collateral

5.1 Collateral Adjustments

If the market price increases before your listing sells:

• Your rental deposit may become insufficient collateral
• Your order quantity may be reduced to match available collateral
• Example: If you ordered 100 stickers at $1.00 ($100 deposit) and price rises to $1.02, your order may be reduced to 98 stickers

5.2 Negative Balance

If the cost to return sticker(s) exceeds your available balance:

• Your account balance may become negative
• Negative balances must be resolved before withdrawing funds
• Stickier reserves the right to restrict account features for negative balances
• Stickier does not actively pursue collection of negative balances below $100

6. Rental Period and Expiration

Short positions have a maximum rental period of 90 days. If you do not close your position before expiration:

• The position will be automatically closed at current market prices
• A force close fee of 15% (minimum $1) will be charged on the exit value
• Any resulting loss will be deducted from your deposit first
• If the loss exceeds your deposit, the position will be liquidated and you forfeit all funds
• If funds remain after settlement, they will be returned to your account

Partial positions (not fully filled) will expire after 7 days of inactivity and follow the same settlement rules.

7. SHORTED Edition Sticker

Upon activation of your short position, you will receive:

• One (1) commemorative "SHORTED" edition physical sticker
• This sticker features a special "SHORTED" badge design
• It is shipped to your registered address at no additional cost
• This sticker is yours to keep regardless of position outcome
• The SHORTED sticker is not tradable on the marketplace

8. Pay in 4 (Layaway) for Shorts

Qualifying short positions may use our Pay in 4 program for the rental deposit:

• Minimum position value: $50
• Deposit split into 4 equal payments over 6 weeks
• Position opens after first payment
• Profits (if any) are applied to remaining payments first

Default on Pay in 4 Shorts

If you miss a payment (7 day grace period):

• Position is immediately liquidated
• All payments made are forfeited (non-refundable)
• Any loan balance (from stickers sold) is forfeited
• Unsold stickers return to platform inventory
• SHORTED edition sticker is NOT shipped
• Remaining payments are cancelled (no collections, no credit reporting)

9. Fees

The following fees may apply to short positions:

• Seller fee (5%): Standard marketplace fee when your listing sells to a buyer
• Force close fee (15%, min $1): Charged if position expires without manual close
• Shipping fee: Included for the SHORTED edition sticker
• No interest: No interest charges on rental deposits or loan balances

10. Risks

Short selling carries significant risks:

• Unlimited loss potential: If prices rise, your losses can exceed your initial deposit
• Liquidity risk: You may not be able to find stickers to purchase for return
• Execution risk: Prices may move between order and execution
• Forced liquidation: Positions may be closed if you cannot meet obligations

You should only participate in short selling if you understand these risks and can afford potential losses.

11. Representations and Warranties

By opening a short position, you represent and warrant that:

• You are at least 18 years of age
• You understand the mechanics and risks of short selling
• You have sufficient funds to cover potential losses
• You are not using this service to launder money or engage in illegal activity
• You understand this is a rental of physical goods, not a financial investment

12. Platform Rights

Stickier reserves the right to:

• Limit or restrict short selling for specific stickers or users
• Modify fees, collateral requirements, or rental periods
• Close positions in extraordinary circumstances
• Suspend or terminate access to the short selling program

13. Dispute Resolution

Disputes arising from this Agreement shall be resolved according to the dispute resolution provisions in our Terms of Service.

14. Integration with Terms of Service

This Agreement supplements and is incorporated into our Terms of Service. In case of conflict, the provisions most protective of Stickier shall control.

15. Contact

Questions about this Rental Agreement:

MMOD, Inc. (dba Stickier)
2261 Market Street STE 17805
San Francisco, CA 94114
United States
Email: hi@stickier.com
Phone: +1 (415) 769-9702