1. Section Scope & Legal Intent
2. Mandatory Standards & Operating Requirements
All participants subject to this policy must strictly adhere to the following mandatory standards:
- Users shall indemnify, defend, and hold harmless ePaisay, its affiliates, directors, officers, and employees against any and all liabilities, losses, judgments, fines, and legal expenses.
- Indemnity covers claims alleging product liability, bodily injury, intellectual property infringement, consumer fraud, or failure to remit statutory sales taxes.
- ePaisay reserves the right to retain independent legal counsel of its choice at the indemnifying user's sole expense.
3. Explicit Prohibitions & Violation Triggers
The following actions constitute direct non-compliance and trigger automatic intervention by the Warning and Violation System:
- Refusing to assume legal defense or reimburse legal expenses incurred by ePaisay due to user misconduct or defective goods.
- Settling any third-party claim that imposes financial or operational liability on ePaisay without written platform consent.
- Attempting to evade indemnification through dissolution or shell corporate restructuring.
4. Warning & Violation System Enforcement Matrix
Each violation under this section is mapped directly to the automated warning and sanction ladder:
| Violation Code | Offense Description | Detection Method | Severity Tier | Cure Window | Mandatory Sanction |
|---|---|---|---|---|---|
VIOL-324-01 |
Refusal to indemnify platform following third-party consumer lawsuit. | Legal Department Escalation | Tier 4 (Critical) | Immediate | Immediate freeze of all merchant wallet balances, asset lien, formal civil litigation. |
VIOL-324-02 |
Failure to provide proof of required product liability insurance upon notice. | Compliance Audit Trigger | Tier 3 (High) | 5 Days | Suspension of high-risk category listings, 2 Strike Points. |
VIOL-324-03 |
Delay in reimbursing platform external legal expenses. | Finance Audit Reconciler | Tier 3 (High) | 7 Days | Automated offset against future escrow disbursements + 10% late fee. |
5. Platform Safe Harbor & Limitation of Liability
Platform Intermediary Status: ePaisay provides the technological marketplace venue connecting independent counterparties. ePaisay is not a vendor, retailer, agent, or guarantor of any product, service, or transaction governed herein.
Total Disclaimer of Warranties: The platform disclaims all warranties of merchantability, fitness for particular purpose, and non-infringement to the fullest extent permissible by applicable law.
Limitation of Damages: In no event shall ePaisay, its officers, directors, or employees be liable for incidental, indirect, punitive, or consequential damages. Aggregate liability is strictly capped at the lesser of $100 USD or platform fees paid in the preceding three months.
Participant Indemnification: The participant agrees to defend, indemnify, and hold harmless ePaisay against any third-party claims, regulatory penalties, legal fees, or damages arising out of violations of this Section.