7.1 Royalties. In consideration of the licenses you grant in this Agreement, Cavua will credit Royalties to you for qualifying events relating to your Courses, at the rates set out in the Royalty Schedule. As of the Effective Date, the Royalty Schedule provides for: (a) a new-enrollment royalty when a Student with a paid Membership first places your Course in a course slot; (b) a recurring royalty for each later Membership billing period in which that Student keeps your Course in an active course slot; (c) a completion royalty when a Student completes your Course and earns its certificate; and (d) where you have an Author Tutor, a tutor-time royalty for time Students spend in video sessions with it. The Royalty Schedule may impose eligibility conditions and limits, including that new-enrollment royalties are capped for each Student in each billing period at that Student's number of course slots, that each royalty is earned only once for a qualifying event, that tutor-time royalties depend on your author plan, and that no Royalties are earned for enrollments or activity by you, by accounts you control, or by Students on free, gifted, or promotional Memberships. Cavua may modify the Royalty Schedule on not less than thirty (30) days' prior notice; a modified rate applies to events occurring after the effective date of the change, and each event is credited at the rate in effect when it occurs.
7.2 Merchant of Record. Cavua, or its designated merchant-of-record provider, is the merchant of record for all Membership and other transactions with Students, is responsible for the calculation, collection, and remittance of applicable sales, use, and similar transaction taxes, and controls all pricing, checkout, billing, and refund mechanics.
7.3 Referral Earnings. Where you have referred users who make qualifying purchases, you may additionally earn referral commissions in accordance with the rates displayed in your dashboard from time to time. Referral commissions are subject to the same reversal, offset, and clawback provisions as Royalties.
7.4 Earning Lifecycle. All earnings are recorded as pending upon payment confirmation, locked on a scheduled basis (typically weekly), and submitted for payout following the lock period. Cavua may extend the pending period as reasonably necessary to account for refunds, chargebacks, suspected fraud, or a dispute.
7.5 Payout Mechanics. Royalties are disbursed through Tipalti Inc. or another payables provider selected by Cavua from time to time (the "Payout Provider"). The Payout Provider performs payee onboarding, tax documentation, verification, and disbursement services on Cavua's behalf. You must complete payee onboarding, tax documentation, banking verification, and any identity or sanctions screening required by the Payout Provider before any payout can be issued. Cavua has no obligation to issue any payout until onboarding is complete, and any resulting delay is not a breach by Cavua. Your use of the Payout Provider's portal is governed by that provider's own terms, and Cavua is not responsible for its acts, omissions, fees, or availability.
7.6 Minimum Threshold. Cavua may establish a minimum payout threshold, which will be published in your account dashboard and may be updated from time to time. Balances below the threshold roll over to the next payout period.
7.7 Payout Method Fees. Payout method and transaction fees charged by the Payout Provider, including ACH, wire, and rejected-payment fees, are deducted from your Royalties. Fees vary by the payout method you select. You are responsible for the accuracy of your payment details, and any fee resulting from a rejected or returned payment caused by inaccurate details will be deducted from your earnings.
7.8 Taxes and Information Reporting. You are solely responsible for determining, reporting, and paying all taxes arising from amounts paid to you under this Agreement, including all federal, state, and local income and self-employment taxes. Cavua does not withhold taxes from your earnings except where required by applicable law. You must complete and maintain all tax documentation requested by Cavua or the Payout Provider, in the form and manner they specify, before any payout can be issued, and must promptly update that documentation if your circumstances change. Cavua or the Payout Provider will furnish tax information returns and make withholdings only to the extent required by applicable law, and will determine the applicable reporting treatment in their discretion. If you fail to provide accurate and complete tax documentation, Cavua may withhold payouts and may apply backup or other withholding at the rate required by law. Nothing in this Agreement constitutes tax advice, and you should consult your own advisor.
7.9 Refunds, Chargebacks, Offset, and Clawback. If a Membership payment is refunded, or is subject to a chargeback, reversal, or fraud determination, any Royalty credited in respect of that payment, or of an enrollment it funded, may be reversed in full. Cavua may offset reversed amounts, together with any associated fees, against your pending earnings, your current balance, and future earnings.
7.10 Statements and Disputes. Earnings statements are made available in your dashboard. You must notify Cavua in writing of any dispute regarding a statement within sixty (60) days after it is made available. Absent timely notice, the statement is final, conclusive, and binding, and you waive any claim relating to it.
7.11 No Guarantee. Cavua makes no representation, warranty, or guarantee regarding the number of enrollments, the level of Student engagement, or the amount of Royalties you will receive, if any.
7.12 Withholding for Legal Compliance; Unclaimed Balances. Cavua may withhold any payout, without liability, where required by law or where you or a transaction is flagged by sanctions, anti-money-laundering, fraud, or watchlist screening, for so long as necessary to resolve the matter. Balances that remain unclaimed and below the payout threshold, or that cannot be disbursed because you have not completed or maintained accurate payee information, will be handled in accordance with applicable unclaimed property law.