Legal & Compliance

1. Introduction & Scope

Welcome to RaiseIt's Legal & Compliance framework. This document outlines the regulatory standards, operational policies, and user obligations that govern our crowdfunding platform. By accessing, creating, or backing campaigns on RaiseIt, users acknowledge and agree to comply with these terms.

RaiseIt operates as a technology intermediary facilitating peer-to-peer fundraising. We do not guarantee the success of any campaign, nor do we assume liability for project delivery. Our role is strictly limited to providing secure payment processing, campaign hosting, and compliance monitoring.

2. Regulatory Compliance & Licensing

RaiseIt maintains full compliance with applicable federal and state regulations governing crowdfunding and payment services. Our operational framework adheres to:

• SEC Regulation Crowdfunding (Reg CF): For equity-based campaigns (where applicable), we operate through registered broker-dealers and funding portals.
• FinCEN MSB Registration: RaiseIt is registered as a Money Services Business and complies with BSA/AML reporting requirements.
• State Money Transmitter Licenses: Active licenses in 48 U.S. states, with ongoing applications for remaining jurisdictions.
• PCI DSS Level 1: All payment data is processed under the highest industry security standards.

We conduct quarterly compliance audits and maintain direct reporting lines to relevant financial regulators. Campaigns involving securities, derivatives, or restricted assets are automatically routed to our compliance review queue.

3. KYC & AML Policies

To prevent fraud, money laundering, and terrorist financing, RaiseIt enforces strict Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols:

• Identity Verification: All campaign creators must complete government-issued ID verification, facial recognition matching, and proof of address submission.
• Transaction Monitoring: Automated systems screen for suspicious patterns, rapid fund movement, cross-border structuring, and sanctioned entity interactions.
• Sanctions Screening: Real-time checks against OFAC, UN, EU, and HM Treasury sanctions lists for all users and payment destinations.
• Record Retention: All KYC documentation and transaction records are securely stored for a minimum of 5 years per regulatory mandate.

4. Risk Disclosure & Investor Protection

Crowdfunding involves inherent risks. Backers and investors should carefully evaluate each campaign before contributing. RaiseIt explicitly discloses:

• Project Execution Risk: Creators may fail to deliver rewards or achieve milestones. Funds are not guaranteed to be returned.
• No Valuation or Due Diligence: RaiseIt does not verify business plans, financial projections, or technical feasibility.
• Liquidity Constraints: Backed funds are typically non-refundable once campaign deadlines pass or goals are met, unless otherwise stated in campaign terms.
• Regulatory Changes: Evolving financial regulations may impact campaign eligibility or payout structures.

We require all creators to publish detailed risk disclosures within their campaign pages. Misleading or omitted risk statements may result in immediate campaign suspension.

5. Financial Transparency & Fee Structure

RaiseIt maintains full transparency regarding platform fees, payment processing costs, and fund disbursement schedules:

• Platform Fee: 5% of total funds raised, deducted upon successful campaign completion.
• Payment Processing: 2.9% + $0.30 per transaction (varies by region and card type).
• Payout Timeline: Funds are disbursed within 7-10 business days post-campaign, pending compliance clearance.
• Failed/Partially Funded: Depending on campaign setting (All-or-Nothing vs. Flexible), funds are either fully refunded or disbursed minus fees.

Detailed transaction histories, fee breakdowns, and tax documentation (1099-K) are available in each creator's dashboard.

6. Intellectual Property & Content Guidelines

Creators retain full intellectual property rights to their campaign materials. However, users grant RaiseIt a limited, non-exclusive license to host, display, and promote campaign content.

Prohibited content includes but is not limited to: counterfeit goods, patented technology without authorization, copyrighted media without licensing, and content violating DMCA provisions. We operate a strict DMCA takedown process and maintain a designated agent for copyright notices.

Users found engaging in IP infringement may face campaign removal, account suspension, or legal referral.

7. Dispute Resolution & Governing Law

RaiseIt provides a structured dispute resolution pathway for conflicts between backers and creators:

1. Direct Negotiation: Parties must attempt resolution through platform messaging within 14 days.
2. Mediation: RaiseIt Compliance Team may intervene to facilitate mutually agreeable terms.
3. Arbitration: Unresolved disputes may be submitted to binding arbitration under AAA rules.
4. Small Claims: Backers retain the right to pursue claims in small claims court for amounts under $10,000.

All legal matters are governed by the laws of the State of Delaware, without regard to conflict of law principles. Venue for any legal action shall be in the state or federal courts located in Wilmington, Delaware.

8. Data Protection & Privacy

RaiseIt complies with GDPR, CCPA, and other applicable data protection regulations. We collect only necessary information for campaign processing, KYC verification, and regulatory reporting.

Key privacy commitments:

• End-to-end encryption for all financial and personal data
• No sale of user data to third-party advertisers
• Right to access, modify, or delete personal information upon request
• Data breach notification within 72 hours of discovery per GDPR standards

Full details are available in our dedicated Privacy Policy.

9. Amendments & Updates

RaiseIt reserves the right to modify this Legal & Compliance document to reflect regulatory changes, platform updates, or operational improvements. Material changes will be communicated via email and in-app notifications at least 30 days prior to effectiveness. Continued use of the platform constitutes acceptance of updated terms.