Terms of Service

Version 2.1

In this document you will find information related to your relationship to Donut as a customer and some information related to our pricing.

1. What is this agreement? 🤔

This agreement (or ‘Terms of Use’) defines the relationship between Donut, Inc. (‘Donut’, ‘we’ or ‘us’) and you, the person accessing the Donut website and/or downloading our mobile application and/or registering for the Services (defined below).

You should read this document along with our Privacy Policy.

2. Is this agreement legally binding? 😬

These Terms of Use are a legally binding contract between you and Donut. Please read them carefully as they may have changed since your last visit.

By using our Services, you acknowledge that you have read, understood, and accept this agreement.

3. How often does this change? 🖐

As Donut grows and changes, these Terms of Use may change with it. If we make changes, we'll notify you by sending an email, or by posting a prominent notice on our website and/or mobile app. We'll also update the version number above.

Any minor, non-material changes or clarifications go into effect immediately. Any material changes go into effect 30 days after we provide notice.

4. Who can use Donut? 😄

You can only use our Services if you’re age 18 or older and not barred from using banking or investment services under the laws of the US or other applicable jurisdiction. You can’t accept these Terms of Use on behalf of a company, organization, government, or other legal entity.

5. Where can I use Donut? 🌍

Our services are available in forty-nine states in the U.S. and the District of Columbia; they are not available in New York. By accessing or using a particular service, you affirm that you are a resident in the jurisdiction where the service is provided and using the service in a permissible jurisdiction.

We don't currently service non-U.S. residents.

6. How to contact us 💬

You can contact us by email at [email protected] or by calling us on +1-213-377-2982.

We will be available during normal working hours 09.00-18.00 Pacific Time during weekdays, and do our best to respond as soon as possible outside of these hours.

7. How we'll contact you 👋

We'll contact you in English 🇺🇸 and Emoji 😃 through our mobile app. We may also contact you on your registered email address or phone number, so let us know if these change.

By using our Services, you consent to receiving communications from us electronically and confirm that you don’t need any other communications in writing. We may also send you notifications via the above when you deposit or withdraw from your account.

8. What is Donut? 😄

Donut is a mobile app and website that helps you earn a high yield through decentralized finance (the ‘Services’). You’re only allowed one Donut account, and you may not create additional accounts on behalf of anyone else.

Donut has three different saving mechanisms:

  1. Add Funds ⚡️: an ordinary deposit via bank transfer

  2. Recurring 📆: a recurring deposit for a fixed dollar amount, at a fixed date every day, week or month

  3. Round-up ☕️: a calculation of the rounded up difference between an actual purchase amount and the next whole dollar, with a investment taken once a $10 threshold has been reached

9. How does Donut work? 💸

Donut allows you to earn interest by supplying cryptocurrencies as collateral for the purpose of receiving interest. We only support USDC.

USDC represent cryptocurrencies that you may elect to supply directly and indirectly to a lending protocol such as Genesis, Wyre or Compound.

Donut reserves the right to utilize any lending protocol or lender. If you elect to use the Service, Donut will credit the amount of cryptocurrency earned to your account in USD. The interest rate quoted is annualized and may accrue at short internals (e.g. every 15 seconds). The interest rates reflected are as of the current date and time, and may change at any time, before or after the account is opened on Donut.

Donut may amend the list of accepted collateral from time to time by revising this Agreement. Should any cryptocurrency be removed from the list of permitted collateral, deposits already made with such cryptocurrency shall remain in force, unless Donut informs you otherwise.

USDC is not legal tender, are not backed by any government, and value balances on Donut are not subject to FDIC or Securities Investor Protection Corporation (SIPC) protections. Any change in the value of USDC may result in a loss in your balance. Further, Donut is not a bank and does not offer checking accounts, savings accounts, or any fiduciary services..

10. How does Round-up work? ☕️

Round-up purchases are based on each eligible transaction you make with your credit card or debit card that is linked to the Donut service. We will calculate an amount that is the difference between the amount of the purchase and the next whole dollar (‘Round-up Credit’).

For example, for a $3.75 transaction, we round up to $4.00, and there is a 25 cents Round-up Credit. Once the total Round-up Credit accumulated for you reaches at least $10, we process a $10 charge against your linked bank account, debit card, or credit card and exchange the $10 for cryptocurrency per your pre-set instructions.

11. How do I link my bank account or a payment method? 🏦

You can link or unlink a U.S. bank account and/or a credit or debit card you hold with a third-party financial institution (each a ‘Third-Party Financial Institution’) to your account as a payment method.

As part of linking or unlinking, you authorize us to collect data about you from Third-Party Financial Institutions and to initiate ACH transactions on your behalf to our banking service providers (more detail below).

Please note: By using our Services, you hereby authorize us to act as your agent for the purposes of initiating and settling financial transactions with your linked bank account you hold with a Third Party Financial Institution.

You agree to keep your payment method information current. If this information changes, we may update it as directed by your bank without any action on your part.

12. Custody and control of your account 🔑

We do not have or retain direct custody or control over funds or virtual currency in your Donut account, nor do we directly transmit funds or virtual currency to or from your Donut account.

Banking services are provided by Evolve Bank & Trust (‘Bank’), Member FDIC, through our agreement with Synapse Financial Technologies, Inc. (‘Synapse FI’). Synapse FI acts as an agent for Bank.

All services provided by Bank and Synapse FI are subject to the applicable account agreement, the Synapse Terms of Service, privacy policies, and other applicable agreements and disclosures, all available at https://synapsefi.com/legal.

By using the Donut service, you agree to such agreements, policies, disclosures, and terms of service. To report complaints regarding Bank or with the services provided by Synapse FI, email [email protected].

13. Access to financial information 📊

We use Plaid Inc. (“Plaid”) to gather your data from Third-Party Financial Institutions. By using our Services, you grant us and Plaid the right, power, and authority to act on your behalf to access and transmit your personal and financial information from the relevant financial institution.

You agree to your personal and financial information being transferred, stored, and processed by Plaid in accordance with the Plaid Privacy Policy at https://plaid.com/legal/.

14. You agree to us using your information 🤝

By accepting this agreement, you agree to us using your information to provide you our services. If you’re no longer happy for us to use your information, we’ll have to close your account. But we may keep your personal data and use it where we have lawful grounds to do so. For example, any records we need to keep for regulatory reasons (see our Privacy Policy).

15. Adding or withdrawing funds 💰

You may transfer money to your Donut account by requesting an electronic funds transfer from your linked bank account and/or by using your credit or debit card.

If you have a balance in your Donut account, you may withdraw it by transferring it to a bank account linked to your account.

We may delay a withdrawal in certain situations, including if we need to confirm that the withdrawal has been authorized by you or if other payments to your account have been reversed.

The minimum deposit amount we support is $10, with a maximum deposit of $50,000 per day.

16. Keeping your account secure 🔒

You are responsible for maintaining adequate security and control of any and all username, IDs, passwords, or any other codes that you use to access your account.

You are solely responsible for the activities of anyone accessing the Donut service using your password, even if you did not authorize the activities. You must notify us at [email protected] immediately of any unauthorized use or suspected unauthorized use of your password.

If you know or suspect your password has been compromised, you must promptly change your password. Even if you give us notice, you could be held liable for losses incurred by us or another party due to someone else using your account or password.

17. If something goes wrong 😱

To protect yourself from unauthorized activity in your account, you should regularly log into your account and review your account statement.

In case of Errors, contact us at [email protected]. An Error means the following:

  1. When money or cryptocurrency is either incorrectly taken from your account or incorrectly placed into your account.

  2. You initiate a purchase and the incorrect amount is debited from your account.

  3. You withdraw cryptocurrency from your account and the transaction is incorrectly documented in your account.

  4. An incorrect amount is credited to your account.

  5. A transaction is missing from or not properly identified in your account statement.

  6. There is a computational or mathematical error related to your account.

We will determine if an error has occurred within 10 days after being notified. If we need more than 10 days to determine if an error occurred, we will provisionally credit your account.

18. Rectifying errors 🔧

Please email us at [email protected] if you discover an error or need more information about a transaction.

We will rectify any processing error that we discover. If the error results in:

  1. You receiving less than the correct amount to which you were entitled, then we will credit your account for the difference between what you should have received and what you actually received.

  2. You receiving more than the correct amount to which you were entitled, then we will debit your account for the difference between what you actually received and what you should have received.

We will not rectify errors if:

  1. Through no fault of ours, you did not have enough available funds or cryptocurrency to complete the transaction;

  2. Our system was not working properly, and you knew about the breakdown when you started the transaction; or

  3. The error was due to extraordinary circumstances outside our control (such as fire, flood or loss of Internet connection), despite our reasonable precautions.

We will determine if an error has occurred within 10 days after being notified. If we need more than 10 days to determine if an error occurred, we will provisionally credit your account.

You agree to contact us within 180 days of the Error occurring. We are not liable for any losses associated with Errors for which you do not contact us within 180 days.

19. Fees ⚖️

Donut targets a 2% annual fee. Our fee is built into each of our high yield products and we do not charge a monthly fee or per transaction. We will provide reasonable notice of any fees and may give you the opportunity to terminate your deposits before such fees become effective.

Donut reserves the right to change its fee structure at any point. Any fee changes will be communicated to you via notifying you using one of our usual channels (see ‘How we’ll contact you’ above).

Your continued use of Donut after any fee change(s) comes into effect constitutes your agreement to pay the fees. Except as required by law, fees are non-refundable.

20. How does the referral program work? 👨‍👩‍👧‍👦

Donut offers a referral program for every friend you invite via an invitation link.

By inviting your friend(s), Donut will provide you an additional interest rate incentive for a given time period for each friend that signs up using your invitation, connects a bank account, and completes a single transfer ("Referral Interest Credit"). Your friend(s) will also receive an interest rate boost following the successful completion of their first transaction within Donut (“Referral Interest Bonus”).

We reserve the right to modify the referral offer at any time. By continuing to invite friends after an update to the terms, you indicate you are accepting them.

We reserve the right to remove or restrict access to the referral program or to refuse a reward if we suspect violation of terms or any activity we determine as abusive (for example, by inviting yourself, fictitious people, or existing users).

21. Cryptocurrency risks 💸

Donut may use uses decentralized finance which automates financial services powered by cryptocurrencies. Cryptocurrencies are not insured by the Federal Deposit Insurance Corporation (FDIC), or by any other agency, and the use of cryptocurrencies may carry financial risk.

The use of Donut’s Service involves substantial risk, including a loss of funds. Donut shall not be liable for any loss suffered or be responsible for any loss of principal, damages, claims, accidents, costs or other expenses (including, without limitation, attorneys’ fees or the costs of any claim or suit), nor for any incidental, general, or consequential damages. Any decision to deposit or withdraw digital currency is solely your decision.

22. Asset storage ⛑

Virtual currency will be held in digital wallets in the custody of Bank or a lender, on your behalf. Bank may contract with third parties to provide wallet services. Please review their terms and policies for more information (detailed above).

In order to keep funds within a digital wallet secure, a portion of the funds may be stored offline. Because of this, unusually large transactions may be delayed.

23. Donut is not an advisor 👉

Donut is not an investment advisor. Donut does not provide investment advice. No content published on the website constitutes a recommendation that any particular cryptocurrency or digital assets are suitable for any specific person.

Donut is not acting and cannot act as an advisor, including as to any financial, legal, investment, insurance and/or tax matters. Any information provided by Donut is for general information only.

24. Your tax obligations 👮‍

The value of any capital gains related to buying and selling cryptocurrency may constitute taxable income.

We will issue a relevant tax summary in app that reflects the value of the gain or losses, if necessary. Please consult your tax advisor as we do not provide tax advice.

25. What if regulations change? ‍👩‍⚖️

The US regulations on cryptocurrencies are subject to significant uncertainty and are evolving rapidly.

While we're making every effort to comply with applicable rules and regulations in the U.S. and internationally with respect to our operations, we cannot predict nor guarantee that your use, transfer or exchange of cryptocurrencies on our system will not be subject to any such regulations. Any change of cryptocurrency regulations may have a material negative impact on your ability to use and transfer such cryptocurrencies and may cause you to lose all or a portion of the value of such cryptocurrencies.

The use, transfer and exchange of cryptocurrencies may be subject to applicable federal and state laws, including rules and regulations promulgated by various regulatory agencies, such as the Securities Exchange Commission, Financial Crimes Enforcement Network (FinCEN), Commodity Futures Trading Commission, Office of the Comptroller of the Currency, Internal Revenue Services and state money transmission or virtual currency business licensing agencies.

26. Disclaimer of Warranties; No Guarantee; Limitation of Liability 👩‍⚖️

We hope to make our Services available at all times, but at times we may need to temporarily or permanently disable the mobile app or website. The Services may be modified, suspended or discontinued at any time without notice or liability.

Donut will not be liable if all or part of the services is unavailable at any time.

Our Services are provided on an ‘as in’ and ‘as available’ basis. Donut hereby disclaims all warranties of any kind, either express or implied, statutory or otherwise, including any warranties of merchantability, non-infringement, and fitness for particular purpose.

In the event of a dispute, our liability and yours will be limited to the maximum extent permitted by law. In no event shall either party be liable for any indirect, incidental, special, exemplary or consequential damages arising out of or in connection with the services.

27. How are disputes resolved? 😔

If you have a complaint, please contact us at [email protected] and we'll do our best to fix the problem.

We’re always here to help, but in the unlikely event that Donut has not been able to resolve a dispute after 60 days, you agree to follow the procedure outlined in the ‘Arbitration’ section below.

28. Arbitration 🗣

Please note: Read this section carefully because it requires the parties to arbitrate their disputes and limits the manner in which you can seek relief from Donut.

For any dispute with Donut, you agree to first contact us at [email protected] and attempt to resolve the dispute with us informally.

In the unlikely event that Donut has not been able to resolve a dispute after 60 days, Donut and you agree to resolve any claim or dispute arising in connection with this agreement by binding arbitration by Judicial Arbitration and Mediation Services (‘JAMS’).

The arbitration will be conducted in Los Angeles County, California, unless agreed otherwise.

JAMS may require you to pay a fee for the initiation of your case, unless you successfully obtain a fee waiver from JAMS. The award rendered by the arbitrator may include your costs of arbitration, your reasonable attorney’s fees, and your reasonable costs for expert and other witnesses.

You may sue in a small claims court of competent jurisdiction without first engaging in arbitration, but this does not absolve you of your commitment to engage in the informal dispute resolution process.

Nothing shall prevent Donut from seeking injunctive or other equitable relief from the courts as necessary to prevent the actual or threatened infringement, misappropriation, or violation of our data security, intellectual property rights or other proprietary rights.

By entering into these Terms of Use, you agree to bring any claims in individual capacity, and not as a class action, collective action, private attorney general action or representation of any kind.

29. Electronic fund transfers 💎

ACH payments are electronic payments that are created when you give an originating institution, corporation, or other customer (originator) authorization to debit directly from the customer's checking or saving account for the purpose of bill payment.

The following disclosures are made in accordance with the federal law regarding electronic payments, deposits, transfers of funds and other electronic transfers to and from your account(s).

Electronic Fund Transfer: Any transfer of funds, other than a transaction originated by check, draft or similar paper instrument, that is initiated through a mobile device to instruct us to debit or credit an account. Electronic Fund Transfers include such electronic transactions as direct deposits or withdrawals of funds, transfers initiated via telephone, website or mobile application.

Preauthorized Electronic Fund Transfer: An Electronic Fund Transfer that you have authorized in advance to recur at substantially regular intervals; for example, direct deposits into or withdrawal of funds out of your account.

Authorized Transfers: You are liable for all Electronic Fund Transfers that you authorize, whether directly or indirectly.

Unauthorized Transfers: Tell us at once if you believe your account or access information is lost or stolen or has been or may be subject to unauthorized Electronic Fund Transfers. You could lose all the money in your accounts If you tell us within two (2) business days after learning of the loss or theft of your account access device, or after learning of any other unauthorized transfers from your account involving your account access device. Also, if your periodic account statement shows unauthorized transfers and you do not tell us within sixty (60) days after the statement was delivered to you, you may not get back any money you lose after the sixty (60) day period if we can prove that we could have prevented the unauthorized transfer(s) if you had told us in time.

If you agree to using ACH payments as a funding mechanism, you hereby adhere to the following:

Single Transaction Authorization: "I authorize Donut to debit the account indicated for the amount noted on today’s date. I will not dispute Donut debiting my account, so long as the transaction corresponds to the terms in this online form and my agreement with Donut."

Recurring Transaction Authorization: "I authorize Donut to debit the account indicated for the recurring transactions according to the online form and my agreement with Donut. I will not dispute so long as the transactions correspond to such terms. This payment authorization is valid and will remain effective unless I cancel this authorization by emailing [email protected] at least 3 business days in advance.”

30. General terms 📝

This agreement will always be available in our mobile app and on our website.

We can make changes to it for any reason (see ‘How often does this change?’) and/or may terminate this agreement at any time by suspending or terminating access to the website, our mobile app or services by notifying you using one of our usual channels (see ‘How we’ll contact you’ above).

If you don't agree to these changes or no longer wish to abide by these Terms of Use, you can let us know and we'll close your account. We'll transfer any money in the account to another account of yours. If we don't hear from you, we’ll assume that you’re happy with the changes we’ve made.

You can see when these Terms of Use were last revised by referring to the ‘Updated’ legend above.

31. Are there any other agreements? 📚

These Terms of Use are the sole entire agreement between you and Donut with respect to the Services. Any prior understandings, agreements or representations and warranties with respect to our Services are superseded by this agreement.

You cannot assign or transfer any rights or obligations under this agreement without prior written consent from Donut. If we do not assert a right or provision under these Terms of Use, this shall not constitute a waiver of such right or provision.

If any provision of these Terms of Use is held by a court to be invalid, illegal, or unenforceable by any reason, such provision shall be modified to reflect the parties’ and ensure the remaining provisions of this agreement will continue in full force and effect.