Prototype Gateway Terms of Use & Architecture Scope

1. Acceptance & Prototype Evaluation Scope

By accessing, testing, or integrating with the InstaPay IPX prototype software gateway, application programming interfaces (APIs), software development kits (SDKs), or user portals (collectively, the “Service”), you acknowledge that the Service is provided solely for technical evaluation, sandbox testing, and architectural diligence. You must not submit live production funds, mainnet private keys, or sensitive production consumer data to this prototype environment.

2. Regulatory Posture & Flow-of-Funds Determination

InstaPay IPX provides programmatic message translation, pre-broadcast intent persistence, double-entry ledger reconciliation, and multi-rail adapter dispatch across developer testnets and banking sandboxes. Please note:

• No Live Depository or Custodial Accounts: No live FBO, custodial, or depository accounts are currently active, and no FDIC pass-through insurance applies to this prototype.
• No Partner Endorsement: References to third-party providers (such as Column, Circle, or PayPal) identify developer sandbox APIs and SDK adapters evaluated during prototype engineering, not executed commercial partnerships.
• Licensing Depends on Actual Activities: Whether a production payout platform requires federal FinCEN MSB registration or state money-transmitter licenses (including under Colorado law) depends on the actual contractual flow of funds, wallet/account control, and regulated partner roles established prior to launch.

Review our Regulatory Disclosures & Gap Matrix for our complete control-by-control readiness status.

3. Key Architecture: Prototype Signing vs. Target Production Custody

The repository includes an in-process 2-of-3 Shamir Secret Sharing cryptographic module (lib/crypto/mpcVault.ts) over GF(2^8) with AES-256-GCM share encryption and buffer zeroization. Evaluators must distinguish between the current prototype and the target production roadmap:

• Current Prototype Behavior: In sandbox/testnet mode, share reconstruction and transaction signing execute inside the Node.js application server process using environment-configured testnet seeds and master keys.
• Target Production Architecture (Not Yet Deployed): Client-device biometric passkey shares (WebAuthn/Secure Enclave), isolated cloud hardware enclaves (AWS Nitro / HSM), and offline cold-storage vaults are planned pre-production controls and are not currently deployed.

See Security Architecture for the explicit boundary between verified repository code and planned infrastructure.

4. Settlement States: Provisional Initiation vs. Finality

Settlement behavior differs materially between synchronous consensus blockchains and asynchronous banking rails:

• Asynchronous Banking Rails (ACH): When an ACH transfer is accepted by the banking sandbox API (INITIATED), the payout is recorded as PROVISIONALLY_SETTLED (PENDING clearing). It does not reach FINAL settlement until confirmed by the clearinghouse webhook or out-of-band reconciliation sweep.
• Blockchain Testnet Finality: Digital asset transfers submitted to decentralized ledgers (Solana, XRPL, Xahau, Base) are permanent and irreversible once validated on a closed ledger or finalized block.
• Discrepancy Quarantine: Any transaction where external delivered amounts or destinations disagree with internal expectations is automatically quarantined (status = discrepancy) with its transit liability hold locked pending operator investigation.

5. Pre-Flight Compliance & Sanctions Screening Posture

The prototype implements fail-closed compliance guardrails in code (lib/services/payoutCompliance.ts):

• Static Sanctions Test Fixture: Pre-flight checks in lib/sanctionsList.ts currently evaluate a static test fixture (OFAC-SDN-2026.Q4.1) to verify fail-closed blocking (SanctionsBlockError) in automated tests. Live U.S. Treasury OFAC SDN feed ingestion and commercial KYC/KYB identity providers must be integrated before any production transaction.
• Velocity & Volume Controls: Application-level velocity limits and cumulative unverified volume caps ($2,000 threshold) are enforced in database transactions.

6. Latency Targets & No SLA Warranty

Target settlement benchmarks (~3–5s on XRPL/Xahau, ~1–2s on Solana, ~2–4s on Base, instant on RTP/FedNow, and batch clearing on standard ACH) reflect protocol characteristics under normal test conditions. The prototype is provided “AS IS” without uptime or latency warranties.

7. Fee Schedule & Quote Transparency

InstaPay IPX displays all platform and rail fees prior to payout confirmation:

• Micro-payouts (<$20.00): 1.5% platform gateway fee.
• Standard payouts (≥$20.00): Flat $0.30 platform gateway fee.
• Bank Transfers (ACH / RTP / FedNow): $0.25 per bank transfer rail fee.
• Blockchain Network Passthrough: Actual on-chain network fees (~$0.0001 on XRPL, ~$0.0005 on Solana/Base, ~$0.001 on Xahau).

8. Data Segregation, Privacy Scrubbing & 7-Year Ledger Retention Lock

The database schema separates scrubbable user profile fields from immutable financial ledger records (src/compliance/DataRetentionService.ts):

9. Limitation of Liability

To the maximum extent permitted by applicable law, the prototype Service is provided “AS IS” and “AS AVAILABLE” without warranties of any kind. In no event shall the operators or contributors of InstaPay IPX be liable for any indirect, incidental, special, consequential, or exemplary damages arising out of your evaluation or testing of the prototype.

10. Governing Law

These Terms shall be governed by and construed in accordance with the laws of the State of Colorado, without regard to conflict of law principles.