Pure Layer 2 Augmentation Addendum

This Addendum supplements the Master Services Agreement (“MSA”) between VerifyLive LLC and the merchant identified in the executed Order Form. Where this Addendum conflicts with the MSA, this Addendum controls solely with respect to the Pure Layer 2 Augmentation service tier. This Addendum and the Pure Layer 2 Augmentation tier are offered to United States–domiciled merchants only; availability to merchants subject to the GDPR or UK GDPR is provided only under a separate executed addendum.

1. Scope of Service Under Pure Layer 2

1.1 Service Definition

VerifyLive provides the "Pure Layer 2 Augmentation" service tier as a supplementary intelligence and chargeback recovery service that operates alongside Merchant's existing primary fraud detection system (the "Primary System"). The Primary System may include, without limitation, Stripe Radar, Shopify fraud analysis, Signifyd, NoFraud, Chargeflow, Riskified, Forter, Sift, Kount, ClearSale, or other third-party fraud platforms identified at the time of attestation.

1.2 Services Included

Under the Pure Layer 2 Augmentation tier, VerifyLive will provide:

(a) Risk Signal Generation. Production-grade risk signals derived from VerifyLive's detection engine, including but not limited to refund abuse signals, coupon-stacking velocity signals, chargeback probability signals, cross-channel entity correlation signals, and (where applicable) specialized signals such as cross-merchant cert correlation on serialized items.

(b) Risk Signal Delivery. Signals will be made available to Merchant via VerifyLive's REST API, merchant portal dashboard, configured webhook destinations, and email alerts. Slack channel alerts are available subject to Merchant's configuration.

(c) Three-Round Dispute Representment Assistance. VerifyLive will compile a dispute evidence package for up to three rounds of representment per disputed transaction, at no additional fee under the Flat tier. VerifyLive COMPILES the evidence package; Merchant reviews, approves, and submits it to Merchant's payment processor. VerifyLive does not submit representment on Merchant's behalf and does not act as Merchant's agent before any processor or card network. Automated submission is not currently offered; if VerifyLive later enables it for Merchant's account, it will be by express written agreement.

(d) Monthly Fraud Performance Report. A monthly summary delivered via email to Merchant's designated contact, including signal volume, signal-versus-Primary-System variance observations, and dispute representment outcomes.

(e) Cross-Channel View. Where Merchant operates across multiple channels (e.g., Shopify plus Square plus others), VerifyLive provides a unified view of merchant signals across those channels.

1.3 Services NOT Included

The following are expressly excluded from the Pure Layer 2 Augmentation tier:

(a) Decision Authority. VerifyLive does not authorize, approve, decline, or otherwise determine the outcome of any Merchant transaction. All transaction decisions remain solely with Merchant and Merchant's Primary System.

(b) Chargeback Loss Guarantee. VerifyLive does NOT guarantee chargeback outcomes, does NOT cover Merchant's losses on chargebacks, and is NOT responsible for amounts disputed, refunded, or charged back regardless of representment outcome.

(c) Order Blocking or Cancellation. VerifyLive does not block, cancel, hold, or otherwise interfere with Merchant's order flow. Merchant retains full operational control of order lifecycle decisions.

(d) Replacement of Primary System. Pure Layer 2 Augmentation is not a substitute for Merchant's Primary System. Merchant remains responsible for selection, configuration, and operation of its Primary System.

2. Liability and Disclaimers

2.1 Signal-Only Service; No Liability for Reliance

VerifyLive provides risk intelligence signals only under the Pure Layer 2 Augmentation tier. VerifyLive does not authorize, approve, decline, or otherwise determine the outcome of any Merchant transaction. All transaction decisions remain solely with Merchant's Primary System and Merchant. VerifyLive disclaims all liability for losses resulting from Merchant's reliance on, action upon, or non-action upon, any Layer 2 signal. This Section 2.1 controls notwithstanding any other provision of the MSA.

2.2 Representment Duty Without Guarantee

VerifyLive will perform dispute representment under Section 1.2(c) with professional diligence and in good faith. VerifyLive does not guarantee dispute outcomes and is not liable for losses where representment is unsuccessful under the Pure Layer 2 Augmentation tier. For the avoidance of doubt, VerifyLive does not currently offer a chargeback loss guarantee on ANY Subscription Tier, and no Subscription Tier includes one; see Section 7.0 of the Merchant Services Agreement. Nothing in this Addendum shall be construed as an acknowledgement that such a guarantee exists on any tier.

2.3 Limitation of Liability

VerifyLive's aggregate liability under this Addendum, regardless of theory, shall not exceed the fees paid by Merchant to VerifyLive under this Addendum during the three (3) calendar months preceding the claim. This limitation is in addition to, and not in place of, any limitation of liability provisions in the MSA.

3. Data Sharing — Required for Layer 2 Tier

3.1 Cross-Merchant Correlation Acknowledgement

Merchant acknowledges and agrees that the Pure Layer 2 Augmentation tier requires Merchant's participation in VerifyLive's cross-merchant correlation index. This participation is a material condition of the Pure Layer 2 Augmentation tier and may not be opted out of while remaining on this tier.

3.2 Scope of Data Sharing

Data shared into the cross-merchant correlation index consists of pseudonymized, hashed, or otherwise de-identified item identifiers, signal patterns, and dispute outcomes. Identifiable Merchant data, including customer personally identifiable information, is NOT shared into the correlation index.

3.3 Data Sharing Benefits

In exchange for participation in the cross-merchant correlation index, Merchant receives the benefit of detection signals derived from the full participating-merchant network, including detection of fraud patterns that have appeared at multiple merchants.

3.4 Compliance with Data Protection Laws

VerifyLive operates the cross-merchant correlation index in compliance with applicable U.S. state privacy laws, including the California Consumer Privacy Act (as amended by the CPRA). Because data contributed to the correlation index is de-identified and not used for cross-context behavioral advertising, such contribution does not constitute a "sale" or "sharing" of personal information under the CCPA/CPRA. Where Merchant is subject to data localization or cross-border transfer restrictions, Merchant must disclose these at attestation; VerifyLive may decline to enroll Merchant in the Pure Layer 2 Augmentation tier if such restrictions are incompatible with the cross-merchant correlation index.

4. Pricing and Billing

4.1 Pure Layer 2 Flat Tier

The Pure Layer 2 Augmentation tier under this Addendum is offered at the fixed monthly fee specified in Merchant's Order Form, which is the authoritative statement of the fee. The fee currently offered is $399 per month, subject to revision upon thirty (30) days' written notice.

4.2 Future Pricing Options

VerifyLive may offer alternative pricing options for Layer 2 Augmentation (for example, a hybrid base-fee-plus-success-fee model) in the future. Any such option is NOT included in this Addendum and requires a separate executed amendment before it takes effect.

4.3 Billing Cycle

All fees under this Addendum are billed monthly in advance via Stripe. Failure to pay within thirty (30) days of the invoice due date may result in service suspension under the MSA cancellation provisions.

4.4 No Refunds; Mid-Cycle Cancellation

Pure Layer 2 Augmentation follows VerifyLive's standard tier cancellation policy: cancel anytime, with NO proration on mid-cycle cancellation. A full-month charge applies to any partial month in which service was active. Merchant remains responsible for the month in which cancellation is initiated.

5. Qualifying Conditions

5.1 Attestation Requirement

To qualify for the Pure Layer 2 Augmentation tier, Merchant must complete attestation via VerifyLive's onboarding portal, identifying:

(a) The Primary System operated by Merchant;

(b) Where applicable, Merchant's Primary System contract end date;

(c) Merchant's estimated monthly dispute volume;

(d) Merchant's primary use categories (industry-agnostic);

(e) Merchant's affirmative acknowledgement of the data-sharing terms in Section 3.

5.2 Loss of Qualification

If Merchant ceases to operate a Primary System during the term of this Addendum, Merchant must promptly notify VerifyLive. Continued service may be transitioned to a Standard tier (with applicable Standard tier pricing and terms) or terminated at Merchant's election.

6. Term and Termination

6.1 Term

This Addendum is effective upon Merchant's acceptance (Section 7.4) and execution of the Pure Layer 2 Augmentation Order Form and remains in effect until terminated under this Section 6.

6.2 Termination

Either party may terminate this Addendum upon thirty (30) days' written notice. Termination of this Addendum does not terminate the underlying MSA unless separately effectuated under the MSA's termination provisions.

6.3 Effect of Termination

Upon termination, Merchant's access to Layer 2 services ceases at the end of the then-current billing month. Dispute representment in flight at termination will be completed at VerifyLive's discretion or transferred to Merchant.

7. Miscellaneous

7.1 Incorporation

This Addendum is incorporated into and subject to the MSA. Terms not defined here have the meanings given in the MSA.

7.2 Governing Law and Jurisdiction

This Addendum is governed by the governing-law and dispute-resolution provisions of the MSA, which are incorporated by reference.

7.3 Severability

If any provision of this Addendum is found unenforceable, the remaining provisions remain in full force.

7.4 Acceptance

Merchant accepts this Addendum by the version-pinned click-through acknowledgement presented during Pure Layer 2 onboarding. VerifyLive records each acceptance, including the Addendum version (v1.1) and the date of acceptance, as part of Merchant's legal-acceptance record.