Terms of Service

This document outlines the Terms of Service (ToS) for KidEconomy, specifically tailored for the "Flea Market" pilot. Steve, these terms must be accessible via a link on the homepage and every data-collection page to ensure COPPA compliance.

The language here reflects our shift from technical jargon to "Action" language (e.g., using "Circle" instead of "Tribe" and "Deal" instead of "Contract").

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1. Mission and The "Walled Garden" Philosophy

KidEconomy is a Sovereign Economic Protocol designed to teach children financial literacy through a safe, simulated marketplace. Our platform operates as a "Walled Garden," meaning children are cryptographically prevented from interacting with any user or vendor not explicitly approved by their Parent or the KidEconomy Trust.

2. Eligibility and Parental Consent (COPPA Compliance)

• Parental Gatekeeper: No child under 13 may use this platform without verifiable parental consent.
• Legal Custodian: The Parent (or "Circle Leader") acts as the legal custodian of the child's account.
• Data Minimization: We do not write personally identifiable information (PII) like names or locations to the public ledger.

3. The Token Economy (K-Coin vs. P-Coin)

• K-Coin (Kid Utility): This is a stable utility token used for deals, chores, and the shop. It is 100% backed by USDC held in a bankruptcy-remote Delaware Statutory Trust.
• No Direct Cash-Out: For the safety of the child and to comply with money transmission laws, children cannot "cash out" K-Coins to third parties or bank accounts.
• P-Coin (Adult Equity): P-Coin is a regulated security for adults and investors. It is subject to strict transfer restrictions and is not accessible to children.

4. Marketplace Rules (The Shop & My Booth)

• Closed-Loop: All trading occurs within your private Circle (family and trusted friends).
• Local Fulfillment: For the pilot phase, all items and services are exchanged locally. KidEconomy does not handle shipping or address collection.
• Service Requirements: All service listings must include a mandatory Duration and require a Proof of Work (photo or note) for completion.

5. Parental Authority and Arbitration

• Co-Pilot Mode: Parents have the authority to set spending limits. By default, transactions over 50 K-Coins require manual parent approval.
• The Power to Clawback: In the event of a mistake or security issue, the KidEconomy Trust (under parent direction) can "claw back" and re-issue funds.
• Final Arbitrator: In any dispute between a buyer and seller, the Parent acts as the final arbitrator to release funds, request a redo, or cancel the deal.

6. Security and "Zero-Trust" Protocols

• Stellar Network Flags: We use AUTH_REQUIRED to ensure only verified users can hold tokens, making "stranger danger" and scam airdrops technically impossible.
• Smart Contract Escrow: When a "Deal" is made, coins move into The Vault (Escrow) and are held safely until the parent confirms the work is done.

7. Liability and Asset Protection

• Commercial Shield: All marketplace operations are managed by a separate E-Commerce Entity to isolate commercial risks (like defective toys) from the financial protocol.
• Bankruptcy Remoteness: Children's deposits are held in a Delaware Statutory Trust, meaning they are legally shielded from any liabilities of the Operating Company.

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