Crowdfunding & Pre-Order Terms

These terms form part of the Terms of Service. Where they conflict with the Terms of Service on a matter they address, these terms control.

Plain-language summary. Crowdfunding is all-or-nothing: if the campaign hits its goal you're charged and the item gets made, and if it doesn't you're not charged at all. Pre-orders are for items that exist but aren't ready to ship yet — you can cancel any time before shipment for a full refund. Neither is an investment. You're buying a product, not equity, and the maker is the one who owes you the product. This summary is not part of the contract.

1. What these terms cover

Both are purchases of goods. Neither is a donation, an investment, a security, a loan, or a share in any business. You receive no equity, no interest, no revenue share, and no ownership in any seller or project.

Eligibility: you must be at least 18 and legally able to contract.

2. Who owes you what

The seller running the campaign is responsible for making and delivering the product. Sznmart hosts the campaign, processes payment, and enforces the rules in this document. We do not manufacture, design, test, inspect, or guarantee any campaign product, and we do not verify a seller's ability to deliver beyond our standard onboarding checks.

Backing a campaign is not risk-free. Making a physical product is difficult. Timelines slip, materials become unavailable, and projects fail. Section 6 sets out what happens when they do, but no policy can eliminate the underlying risk. Back what you can afford to have delayed.

3. Crowdfunding — how it works

3.1 All-or-nothing

Every campaign has a funding goal and a deadline, both published on the campaign page. If total pledges reach the goal by the deadline, the campaign succeeds. If not, it fails.

3.2 Payment

Confirm which model you are using and delete the other. The /funding page currently describes both, which is a compliance problem as well as a clarity problem.

Model A — authorization hold (recommended): When you back a campaign, we place an authorization hold on your payment method for the full pledge amount. You are not charged unless the campaign succeeds. If it succeeds, we capture the held amount at the deadline. If it fails, the hold is released and no charge is made. Depending on your bank, a released hold may take [3–10] business days to disappear from your available balance.

Model B — charge at pledge: When you back a campaign, your payment method is charged the full pledge amount immediately. If the campaign fails, we refund you in full and automatically, within [7] business days of the deadline, to the original payment method. Funds collected are held [in a segregated account / by our payment processor] and are not released to the seller until the campaign succeeds.

Failed authorizations. If a hold or charge fails or expires before the deadline, we will attempt to contact you. A pledge that cannot be collected does not count toward the funding goal.

3.3 Cancelling a pledge

You may cancel a pledge at any time before the campaign deadline, from Your Account → My Pledges. No reason required, no fee.

After the deadline, a successful campaign becomes a binding purchase and you cannot cancel it — except under §6.

3.4 What "funded" means

Reaching the goal means enough money was pledged. It does not mean the product will be delivered, will work, will meet the published specification, or will arrive on time. A funded campaign is the start of manufacturing, not the end of it.

3.5 Campaign changes

A seller may post updates and may make non-material changes to specification, colour, packaging, or finish. A material change — to the core function, dimensions, materials, or delivery timeline by more than [60] days — entitles you to cancel for a full refund within [14] days of the notice, whether or not the campaign has closed.

3.6 Overfunding

If a campaign exceeds its goal, all pledges are collected. Overfunding does not create an obligation to add features, upgrade materials, or accelerate delivery unless the campaign page committed to a specific stretch goal.

4. Pre-orders — how they work

4.1 What you're buying

A pre-order reserves a unit of a product with a published expected ship date. The listing states whether you are charged at order or when the item ships.

4.2 Cancellation

You may cancel a pre-order at any time before it ships, for a full refund, for any reason. Go to Your Orders → Cancel, or email [SUPPORT EMAIL]. If you were charged, the refund is issued within [7] business days.

4.3 Price

The price is locked at the time of order. If the price falls before shipment, you are not entitled to the lower price. If it rises, you pay the price you were quoted.

4.4 Allocation

Where demand exceeds supply, units are allocated in order of pre-order date. If we cannot allocate you a unit we will cancel and refund in full and tell you why.

5. Delivery timelines and the Mail Order Rule

This section reflects our obligations under the FTC Mail, Internet, or Telephone Order Merchandise Rule (16 C.F.R. Part 435). It applies to both crowdfunding and pre-orders.

5.1 Stated dates

Every campaign and pre-order listing carries an expected delivery or ship date. This is a representation, not an aspiration, and sellers are contractually required to make it realistic.

5.2 If the date can't be met

The seller must notify us before the date passes. We will then contact you with a revised date and a clear choice:

• consent to the delay, or
• cancel for a prompt, full refund

Silence is not consent. If the revised date is more than 30 days after the original, and you do not affirmatively tell us to proceed, we will cancel and refund automatically.

5.3 Repeat delays

On any second or subsequent delay, we will cancel and refund automatically unless you affirmatively tell us to keep waiting.

5.4 The hard backstop

If a crowdfunding product has not shipped within [12] months of the campaign closing, or a pre-order has not shipped within [12] months of the order — whichever applies — the order is cancelled and refunded in full, automatically, without a further election from you.

This backstop applies regardless of any consent you gave to an earlier delay, and cannot be waived by the seller or by a campaign update.

5.5 Prompt refunds

A refund under this section is issued within [7] business days of cancellation, to the original payment method. Where the original method is unavailable, we will contact you to arrange an alternative.

6. When a project fails

6.1 Campaign doesn't fund

Holds are released, or charges refunded, automatically. Nothing further is owed by anyone.

6.2 Campaign funds but the seller can't deliver

If a seller informs us they cannot deliver, becomes unresponsive for [30] days while a delivery obligation is outstanding, ceases business, or is terminated by us:

1. We stop or claw back any payout to that seller that we still control.
2. We refund backers from funds we hold, in full where possible and pro rata where funds are insufficient.
3. We pursue the seller for the shortfall under the Seller Agreement, and we will apply anything recovered to backer refunds before anything else.
4. We notify affected backers of the outcome.

Sznmart's obligation is limited to funds we hold or recover. We do not guarantee delivery, and we do not underwrite a seller's failure from our own funds. Your remaining recourse is against the seller directly.

6.3 Delivered but not as promised

If what arrives is materially different from what the campaign page described, buyer protection applies — see Returns & Refunds Policy §7. Open a claim within [30] days of delivery.

"Materially different" means a difference a reasonable backer would consider important: a missing core function, a substantially different size or material, or a product that does not work. It does not mean minor cosmetic variation, a different shade, or revised packaging.

6.4 Returns after delivery

Crowdfunding items are made to order and are not returnable for change of mind. They are fully covered for non-delivery, damage, defect, and material misdescription.

Pre-orders are returnable on the same terms as any standard purchase once delivered.

7. Seller obligations

Sellers running campaigns must:

• describe the product, its stage of development, and the risks honestly and completely
• substantiate every claim made on the campaign page, including performance, materials, certifications, and comparison claims
• use images and video of the actual product or a genuine prototype, and label renders, mock-ups, and simulations as such
• publish a delivery timeline they have a reasonable basis to meet
• use funds raised for the project described and nothing else
• post honest progress updates at least every [30] days while a delivery obligation is outstanding
• disclose material problems promptly rather than concealing them
• fulfil, or refund

Failure is a material breach of the Seller Agreement, and may also constitute deception under Section 5 of the FTC Act, for which the FTC has brought enforcement against crowdfunding creators.

Prohibited on campaigns: any offer of equity, revenue share, profit participation, interest, or financial return; any product on the prohibited list; any medical, health, or therapeutic claim without substantiation and required clearance; and any campaign for a product the seller does not have the right to make and sell.

8. Fees

Backers pay only the pledge amount plus tax and any shipping stated on the campaign page. Sznmart charges no fee to backers. Our platform fee is charged to the seller and only on successful campaigns — see Seller Agreement § 6.3 and Annex A.

9. Taxes

Tax is calculated at the point of charge — at the deadline for crowdfunding under Model A, or at order under Model B and for pre-orders — based on your shipping address and the rate in effect at that time. Sznmart collects and remits as marketplace facilitator where required.

10. Communications

By backing a campaign or placing a pre-order you consent to receive updates about it, including delay notices, delivery elections, and refund confirmations. You cannot opt out of these while the order is open — they are how we discharge our obligations under §5.

11. Risk acknowledgement

By backing a campaign you acknowledge that:

• you are buying a product that does not yet exist
• delays are common and the published date may not be met
• the product may differ in detail from what is shown
• the project may fail entirely, in which case your recovery is limited to funds Sznmart holds or recovers
• you are not making an investment and will receive no financial return
• Sznmart is not the maker and does not guarantee delivery

12. Limitation

Sznmart's liability under these terms is limited as set out in Terms of Service Article XXI. In particular, we are not liable for a seller's failure to deliver, for consequential loss arising from a delay, or for the difference between what was promised and what arrived, beyond the refund and buyer protection remedies described here.

13. Contact

Crowdfunding & Pre-Order Terms · Version 2.0 · Effective [EFFECTIVE DATE]