‍Date: November 24, 2025

Operator: ARC Inc., Apia, Samoa (“ARC Inc.”, “we”, “our”, “us”)

Contact: contact@helloarc.ai

1. Introduction 

These Terms of Service apply to all $ARC Token-related features operated by ARC Inc., based in Apia, Samoa. They explain how the $ARC utility token works, what you can expect, and what responsibilities you have when using $ARC token tools such as upgrades, migrations, bridges, and participation rewards.

ARC Labs AG and ARC Efficiency GmbH in Switzerland do not issue, manage, or operate token rewards.

2. What $ARC is (and what it is not)

$ARC is a utility token designed for functional use inside the ARC ecosystem. It is not an investment, not a security, and not a financial product. It does not provide ownership, dividends, returns, or any economic expectation. Your use of $ARC should always be based on its utility, not on financial gain.

3. Who can use ARC Services (Eligibility)

To interact with $ARC token features, you must:

• be at least 18 years old;
• use a non-custodial wallet you control;
• not be located in restricted jurisdictions (such as, for example, the United States, Canada, the UK, EU states or other regions with staking restrictions);
• act only on your own behalf;
• comply with your local laws, including tax and reporting obligations.

ARC Inc. may suspend or restrict access where required by law.

4. Token Utilities Overview

ARC Inc. provides four core token-related utilities:

• $ARC V1 or Reactor → $ARC V2 Upgrade (Section 4.a.)
• Non-Financial Governance Features (Section 4.b.)
• Bridge between Ethereum and Base (Section 4.c.)
• Virtuals → $ARC Migration (Section 4.d.)
• Participation Rewards Program (Section 5)

Each utility is optional and must be initiated by you through your own wallet.

4.a. $ARC V1 / Reactor → $ARC V2 Upgrade

The upgrade allows you to convert older $ARC tokens (including Reactor) into $ARC V2 on Base.

• Conversion rate: 40 old tokens → 1 $ARC V2.
• All submitted tokens are permanently burned.
• You must submit amounts in multiples of 40.
• Gas fees are paid in ETH on Base.

ARC Inc. may pause or adjust the upgrade system for technical or legal reasons.

4.b. Non-Financial Governance Features

Certain non-financial governance features may be offered within the ARC ecosystem. These may include, for example, voting on ecosystem parameters, protocol settings, or community grant allocations.

These voting features are purely functional and do not grant ownership, shareholder rights, profit participation, dividends, or any form of financial or corporate governance rights in any ARC entity, including ARC Inc., ARC Labs AG, or ARC Efficiency GmbH.

Participation in governance features is optional and may require the use of ARC Tokens for verification or weighting purposes, without altering the legal nature or rights associated with the Token.

4.c. Ethereum ↔ Base Bridge

The bridge allows you to move $ARC between Ethereum and Base.

• The process is non-custodial.
• You must choose the correct direction (ETH → Base or Base → ETH).
• Gas fees apply on the originating network.
• Transaction speed depends on network conditions.

ARC Inc. does not guarantee availability of the bridge or success due to blockchain conditions.

4.d. Virtuals → ARC Migration

Some older ARC-related tokens, may be migrated into $ARC V2.

• The process is voluntary and triggered by you.
• Tokens may be burned or converted depending on the design.
• Incorrect network interactions can result in permanent loss.

Migration has no financial return or investment purpose.

5. Participation Rewards Program

The Participation Rewards Program allows you to lock $ARC tokens temporarily to support network operations. In return, you may receive usage-based rewards.

It is important to understand:

• Rewards are not guaranteed.
• This is not staking in a financial or investment sense.
• Rewards depend entirely on network parameters and protocol logic.

You are responsible for managing your wallet and understanding the technical risks

5.a. Nature of the Program

• This is NOT financial staking;
• It is NOT an investment;
• Rewards are NOT guaranteed;
• No interest, yield, or profit is provided.

The Participation Rewards Program is operated exclusively by ARC Inc. (Samoa). ARC Labs AG and ARC Efficiency GmbH do not issue, manage, or operate token rewards.

5.b. Participation Requirements

• Eligibility as per Section 3;
• Users must control their wallet and keys;
• Users must accept blockchain risks.

5.c. How It Works

• Users select how many ARC tokens to lock (“Staked Tokens”);
• Staked Tokens remain locked during the Participation Period;
• Early withdrawal may reduce or eliminate rewards;
• Smart contract executes rewards automatically;
• ARC Inc. does not manually distribute rewards.

5.d. Rewards

• Rewards vary depending on network conditions;
• ARC Inc. does not guarantee amounts;
• Reward parameters may change per cycle;
• Rewards may be zero.

5.e. Unstaking

• Unstaking becomes available after the Participation Period;
• Cool-down periods may apply;
• ARC Inc. is not responsible for gas costs or congestion delays.

5.f. No Custody

Users remain responsible for their wallet, keys, and transactions.

6. Risks you should be aware of

Using $ARC token features involves risks, including:

• Loss of tokens due to mistakes, hacks, or smart-contract errors.
• Transaction delays caused by network congestion.
• Regulatory changes that may limit access.
• Market volatility that may impact token value.

By using $ARC token features, you accept these risks.

7. Taxes

Any tax obligations arising from holding, using, upgrading, bridging, or earning $ARC rewards are entirely your responsibility. ARC Inc. does not provide tax advice or withhold taxes on your behalf.

8. Data and Privacy

ARC Inc. processes only minimal technical data necessary for security and operations, such as:

• Wallet addresses
• Transaction metadata
• Network region information

Full details are outlined in ARC Inc’s Privacy Policy.

9. No Guarantees

ARC Inc. provides all token utilities “as is” without any promises of:

• Availability
• Speed
• Rewards
• Financial gain

Your use of $ARC token tools is entirely voluntary and at your own risk.

10. Changes to These Terms

ARC Inc. may update these Terms to reflect new laws, security requirements, or improvements. When we make changes, we will update the date at the top of the document.

11. Governing Law

These Terms are governed solely by the laws of Samoa. Disputes fall under the exclusive jurisdiction of the courts in Apia, Samoa.

12. Contact

For questions or notices regarding these Terms:

ARC Inc. (Samoa)
Lotemau Centre Building, Vaea Street, Apia, Samoa
contact@helloarc.ai

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