TERMS & CONDITIONS

Effective Date: May 6, 2026

Jurisdiction: Hong Kong SAR

PLEASE READ THESE TERMS & CONDITIONS CAREFULLY. BY ACCESSING OR PARTICIPATING IN THE SILK. CLUB, YOU AGREE TO BE BOUND BY THESE TERMS AND ALL TERMS INCORPORATED HEREIN BY REFERENCE. IF YOU DO NOT AGREE TO THESE TERMS, DO NOT ACCESS OR PARTICIPATE IN THE SILK. CLUB.

THESE TERMS & CONDITIONS INCLUDE A BINDING ARBITRATION AGREEMENT (ARTICLE 10) THAT GOVERNS ANY DISPUTES BETWEEN YOU AND THE COMPANY. THIS AGREEMENT WILL:

• ELIMINATE YOUR RIGHT TO A TRIAL BY JURY TO THE EXTENT ALLOWABLE UNDER APPLICABLE LAW; AND

• PREVENT YOU FROM BRINGING, JOINING, OR PARTICIPATING IN CLASS OR CONSOLIDATED PROCEEDINGS IN ARBITRATION OR LITIGATION.

YOU AGREE THAT THE COMPANY MAY PROVIDE UPDATES, NOTICES, DISCLOSURES, AND AMENDMENTS TO THESE TERMS, AND OTHER INFORMATION RELATING TO THE SILK. CLUB BY ELECTRONIC MEANS, INCLUDING POSTING SUCH MATERIALS WITHIN THE SILK. APP OR ONLINE AT https://thesilktea.com/.

ARTICLE 1: THE SILK. CLUB ECOSYSTEM

1.1 Definition and Scope: The Silk. Club (the "Club") is a proprietary, capital-linked loyalty ecosystem owned and operated by Silk. (the "Company"). Participation in the Club constitutes full and unconditional agreement to these Terms & Conditions.

1.2 Currency Evolution: Effective May 6, 2026, all legacy loyalty units ("Points" or "Coins") are retired. Existing balances have been migrated to "Pearls" at a 100x Multiplier (Subject to a variable conversion rate for legacy units accrued through non-transactional marketing campaigns or promotional awards, as determined by the Company’s internal ledger records). This conversion is a one-time discretionary adjustment by the Company and is final. By participating in the Club, Members release the Company from any claims related to the valuation or conversion of legacy units.

ARTICLE 2: ACCRUAL & WEALTH VELOCITY

2.1 Accrual Trigger: Pearls are recognized as a digital asset earned only at the moment of successful expenditure at a Silk. point of sale (the "Expenditure Trigger"). No Pearls are issued, earned, or accrued upon the deposit of funds into a Member’s Silk. account ("Top-Up").

2.2 Earning Rates & Settlement: Earning rates are subject to the Member's Tier status and payment method as defined below. The Company reserves the right to change the "Top-Up Bonus" or standard earning rates at any time with 30 days’ notice.

• Standard Settlement: Transactions settled via Cash, Credit Card, or external digital wallets earn at a base rate of 1 HKD : 5 Pearls.

• The Top-Up Bonus: Transactions settled utilizing a pre-funded Silk. App balance ("Top-Up Balance") earn at accelerated "Wealth Velocity" rates:

  • Silk. VIP: 1 HKD : 8 Pearls

  • Silk. Family: 1 HKD : 7 Pearls

  • Silk. Friends: 1 HKD : 6 Pearls

  • Silk. Club: 1 HKD : 6 Pearls

2.3 No Cash Value: Pearls are promotional in nature and have no cash value. They are not property and cannot be redeemed for cash, check, or credit.

ARTICLE 3: TIER STRUCTURE & VALIDITY

3.1 Tier Qualification: Membership tiers are determined by the cumulative Pearls earned within a fixed calendar year (January 1 to December 31).

3.2 Status Continuity: Upon achieving a higher tier, the Member shall enjoy the benefits of said tier for the remainder of the current calendar year and the entirety of the following calendar year ("Status Lock").

3.3 Tier Downgrades: If the required threshold is not met during the maintenance year, the Member will be re-assigned to the Tier corresponding to their actual earnings on January 1 of the subsequent year.

3.4 Tier Thresholds: 

• Friends: 5,000 Pearls

• Family: 25,000 Pearls

• VIP: 50,000 Pearls

ARTICLE 4: EXPIRY & LEDGER MANAGEMENT

4.1 Fixed Expiry Window: To ensure the liquidity and health of the Club ecosystem, all Pearls expire on December 31st of the second calendar year following the year in which they were earned.

4.2 FIFO Protocol: The Company utilizes a First-In, First-Out ledger management system. During any redemption, the oldest Pearls in a Member’s ledger will be debited first to maximize member utility and prevent premature expiration.

4.3 Forfeiture: Expired Pearls are permanently forfeited. The Company is not required to provide notice of impending expiry.

ARTICLE 5: REDEMPTION & FULFILLMENT

5.1 Asset Catalog: Redemptions are subject to the Pearl costs defined in the App.

5.2 Facilitator Role: Silk. acts solely as a facilitator for third-party rewards (Uber, Cathay Pacific). Use of these rewards is subject to the Terms of Service of the respective partner.

5.3 B2B Automation (Uber): Uber Black rewards are issued as digital vouchers. Delivery occurs within 24 hours via SMS or Email.

5.4 Aviation & Lounge (Cathay Pacific): For VIP redemptions, Silk. acts as a transfer agent or facilitator for Cathay Pacific assets. Members may select from the following redemption options:

• One-Way Business Class Flight (e.g., Tokyo): The quantity of Asia Miles issued shall correspond to the prevailing rate required for a "Business Class Standard Award" for a "Short-haul Type 2" route as defined by the official Cathay Pacific Asia Miles award chart at the time of redemption.

  
  

• Business Class Lounge Access: The redemption shall be fulfilled via the transfer of Asia Miles at the prevailing rate required for a "Lounge Access" award as defined by Cathay Pacific's "Travel Extras" policies at the time of redemption. Notwithstanding the foregoing, Silk. reserves the right, at its sole discretion and subject to partner capability, to fulfill this redemption via the direct distribution of a digital lounge pass to the Member’s Cathay account in lieu of an Asia Miles transfer.

Eligibility & Fulfillment: Membership acknowledges that all redemptions are subject to the partner’s prevailing eligibility criteria, membership tier requirements, and entry policies . Silk. does not guarantee that a Member will meet the specific status or criteria required by Cathay Pacific (e.g., Silver Tier status or above) to utilize Miles or passes for a specific reward. If a Member redeems Pearls but is deemed ineligible by the partner to utilize the resulting asset, Silk.’s obligation is considered fully discharged upon the successful transfer of Miles or the issuance of the digital pass to the Member’s Cathay account.

Transfer Protocol: Upon redemption, fulfillment (via Miles transfer or direct pass issuance) will be processed within 48–72 hours. Silk. is responsible only for the facilitation of the asset; the final booking, seat availability, and lounge entry remain the sole responsibility of the Member.

Dynamic Pricing: Silk. reserves the right to adjust Pearl redemption costs in the App at any time, without prior notice, to reflect devaluations, rule changes, or pricing adjustments in the official Cathay Pacific award charts.

Member Responsibility: Silk. provides the Miles or digital pass for the base award only. All third-party costs, including but not limited to government taxes, airport security fees, and fuel surcharges, must be settled by the Member in HKD directly on the Cathay Pacific platform at the time of ticket issuance.

ARTICLE 6: RETURNS, REFUNDS & DEFICITS

6.1 Refund Reversal: If a transaction is refunded, the Pearls earned from that transaction will be automatically deducted from the Member's balance.

6.2 Recovery State: If a refund results in a negative Pearl balance, all subsequent earnings will be applied to clear the deficit before a positive balance can resume.

ARTICLE 7: RESTRICTIONS & CONDUCT

7.1 Non-Transferability: Pearls and rewards are personal to the Member and may not be sold, transferred, assigned, or shared. Any attempt to sell rewards on secondary markets will result in immediate account termination.

7.2 Commercial Use: The Club is for personal use only. Commercial entities or individuals using the program for profit-making activities are prohibited.

7.3 Abuse & Manipulation: The Company reserves the right to suspend or terminate any account that shows signs of fraud, abuse, or "gaming" the Top-Up & Spend mechanic.

ARTICLE 8: PRIVACY, DATA & LIABILITY

8.1 Data Consent: Members expressly consent to Silk. sharing registered contact data and Cathay account identifiers with Uber and Cathay Pacific solely for redemption fulfillment.

8.2 Facilitator Status: Silk. acts as a facilitator. Use of redeemed assets is subject to the Terms & Conditions of the respective partners. Silk. is not liable for service disruptions, cancellations, or incidents occurring during the use of partner services.

ARTICLE 9: LIMITATION OF LIABILITY & WARRANTIES

9.1 "As Is" Basis: The Club and all rewards are provided on an "as is" and "as available" basis. The Company makes no warranties, express or implied, regarding the merchantability or fitness of partner services.

9.2 Cap on Liability: To the maximum extent permitted by law, the Company’s total liability for any claim arising out of the Club shall not exceed $100 HKD.

9.3 Force Majeure: The Company is not liable for failures or delays caused by factors beyond its control, including but not limited to partner system outages, telecommunications failures, or acts of God.

ARTICLE 10: DISPUTE RESOLUTION

10.1 Binding Arbitration: Any dispute arising under these Terms shall be resolved via binding arbitration in the Hong Kong SAR.

10.2 Class Action Waiver: MEMBERS AGREE TO SETTLE DISPUTES ONLY ON AN INDIVIDUAL BASIS AND WAIVE THE RIGHT TO PARTICIPATE IN ANY CLASS ACTION OR REPRESENTATIVE PROCEEDING.

10.3 Governing Law: These Terms are governed by and construed in accordance with the laws of the Hong Kong SAR.

ARTICLE 11: AMENDMENTS & TERMINATION

11.1 Right to Change: The Company reserves the right to terminate, suspend, or change the Club ecosystem at any time.

11.2 Notice: Material changes will be communicated via the App or the Member's registered email at least 30 days prior to implementation.

ARTICLE 12: SEVERABILITY

12.1 Survival of Terms: If any provision or part of a provision of these Terms & Conditions is found to be unlawful, void, or unenforceable, that provision or part of the provision is deemed severable from these Terms & Conditions and shall not affect the validity and enforceability of any remaining provisions. The remaining Terms shall continue in full force and effect to the maximum extent permitted by law.