OFFICIAL FRAUD PREVENTION & INTEGRITY POLICY

Commercial Model: 10% LOYALTY ANNUAL NET PROFIT SHARE
Brand: MYCLOTH INDIA
Official Website: MyCloth.in
Document Type: Official Fraud Prevention & Integrity Policy
Version: 1.0
Effective Date: 19 September 2026
Last Updated: 19 September 2026

1. PURPOSE

This Policy establishes the main rules used to prevent, identify, investigate and address:

• fraud;
• artificial commercial activity;
• manipulated attribution;
• fabricated or improperly generated orders;
• prohibited transactions;
• misleading activity;
• abuse of Program systems; and
• conduct that may improperly affect another participant or the Program.

The objective is simple:

GENUINE ACTIVITY → ACCURATE ATTRIBUTION → VALID CONTRIBUTION → FAIR CALCULATION

This Policy does not repeat the financial formulas already established in the Master Terms, Accounting Policy or PCF Policy.

2. DOCUMENT RELATIONSHIP

This Policy operates together with:

Document	Main Function
Master Terms & Conditions	Overall Program framework
Accounting Policy	ADNP, APP, ACS, TACS and allocation
PCF Policy	Product contribution methodology
Attribution & Tracking Policy	Attribution and order verification
Advertising & Content Policy	Public communication and advertising
Participant Partnership Agreement	Participant-specific contractual terms
Tax / Payment Policy	Tax, withholding and payment
Privacy Policy	Personal-data handling

These documents should be interpreted together.

If a participant-specific definitive agreement contains an applicable participant-specific provision, the relevant order-of-precedence rules apply.

3. CORE INTEGRITY PRINCIPLE

The Program is designed to reward genuine, attributable and qualifying commercial contribution.

A participant must not attempt to increase their calculated contribution through activity that is:

• false;
• artificial;
• manipulated;
• self-funded;
• improperly reimbursed;
• improperly attributed;
• fraudulent;
• prohibited; or
• otherwise inconsistent with the Program rules.

Important:

A high number of followers, views, clicks or reported orders does not by itself establish qualifying contribution.

The relevant activity must pass the applicable attribution, qualification, contribution and accounting controls.

4. WHAT MAY CONSTITUTE FRAUD OR ARTIFICIAL ACTIVITY?

The following are examples of conduct that may trigger investigation:

Activity	Possible Treatment
Fabricated orders	Investigation / exclusion
Participant-funded customer purchases	Investigation / exclusion
Participant-reimbursed purchases	Investigation / exclusion
False attribution claims	Investigation / exclusion
Duplicate attribution	Correction / exclusion
Manipulated tracking data	Investigation / exclusion
Fake or artificial engagement used to mislead	Investigation
Bot-generated activity	Investigation / exclusion
Artificial traffic manipulation	Investigation
Unauthorized discount manipulation	Investigation / adjustment
Fraudulent payment activity	Exclusion / investigation
Chargeback or payment abuse	Adjustment / exclusion
False identity or account information	Suspension / termination
Impersonation of MyCloth India	Serious compliance issue
Deliberate misinformation about the Program	Compliance action
Circumvention of tracking controls	Investigation / exclusion
Deliberate manipulation of another participant's attribution	Serious integrity issue

This list is illustrative and does not limit the Company's ability to address other materially similar conduct.

5. SELF-FUNDED OR PARTICIPANT-REIMBURSED TRANSACTIONS

A participant must not create or financially support transactions for the purpose of increasing their Program contribution.

This includes, for example:

• buying products for themselves to create artificial attributable activity;
• paying for another person's order;
• reimbursing a customer for an order;
• providing money or equivalent value to induce an order;
• arranging transactions where the apparent customer payment does not represent genuine independent customer activity.

Where such activity is identified, the affected transaction may be excluded from attribution and contribution calculations.

Other contractual or legal remedies may also apply where appropriate.

6. FAMILY, FRIENDS AND ASSOCIATED PERSONS

A customer's relationship with a participant does not automatically make a transaction fraudulent or invalid.

However, a transaction may be reviewed where there is evidence of:

• participant funding;
• participant reimbursement;
• artificial ordering;
• coordinated manipulation;
• false attribution;
• prohibited conduct;
• unusual transaction patterns; or
• another violation of the Program rules.

Principle:

Relationship alone is not the test. Genuine and qualifying activity is the test.

7. ATTRIBUTION INTEGRITY

The Attribution & Tracking Policy establishes how commercial activity is connected to the correct Account Owner.

Fraud controls may examine:

Account → Tracking Method → Customer → Order → Attribution → Qualification → QNR → PCF → ACS

A participant cannot create entitlement merely by claiming that they referred a customer.

Where attribution is missing, conflicting, duplicated or technically unreliable, the Company may conduct verification before including the activity.

8. DUPLICATE OR CONFLICTING ATTRIBUTION

The same qualifying transaction must not be counted for multiple participants where the Program methodology permits only one attribution.

Where competing attribution exists, the Company may review:

• tracking records;
• affiliate links;
• coupon codes;
• Participant IDs;
• platform records;
• order records;
• timestamps;
• applicable customer/order information;
• technical records; and
• other objective evidence reasonably available.

The Company may correct duplicate or incorrect attribution after verification.

9. ARTIFICIAL ENGAGEMENT

Participants must not use artificial methods to create a misleading appearance of influence or commercial performance.

Examples include:

• purchased followers;
• bots;
• automated fake comments;
• fabricated customer interactions;
• fake engagement services;
• manipulated traffic;
• fabricated screenshots;
• fake testimonials;
• fabricated order evidence; or
• other deceptive engagement activity.

Artificial engagement does not automatically become qualifying commercial contribution.

10. FALSE RECORDS OR FALSE INFORMATION

A participant must provide accurate information where the Program requires it.

The following may constitute a serious compliance issue:

• false identity information;
• false social-media account ownership;
• false payment information;
• fabricated order information;
• manipulated screenshots;
• false attribution evidence;
• knowingly misleading explanations;
• concealment of material information relevant to an investigation.

The Company may require reasonable supporting information or verification.

11. PROGRAM AND TRACKING SYSTEM ABUSE

Participants must not intentionally attempt to bypass or manipulate:

• Shopify Collabs;
• affiliate links;
• discount/coupon codes;
• Participant IDs;
• attribution systems;
• order records;
• reporting systems;
• qualification controls;
• accounting controls; or
• other approved Program technology.

Technical errors are not automatically treated as fraud.

The Company may distinguish between:

technical error → correction

and

intentional manipulation → integrity investigation

12. INVESTIGATION PROCESS

Where reasonable grounds exist, the Company may conduct an integrity review.

A review may include:

1. 1. identifying the affected participant or account;
   2. identifying affected transactions;
   3. reviewing attribution records;
   4. reviewing order and payment records;
   5. reviewing relevant content or communications;
   6. checking for duplicate or artificial activity;
   7. requesting clarification or evidence;
   8. determining whether an adjustment is required; and
   9. documenting the final decision.

The Company may use appropriate internal, technical, accounting, compliance or professional resources for this process.

13. TEMPORARY HOLD DURING INVESTIGATION

Where reasonably necessary, the Company may temporarily:

• hold disputed amounts;
• exclude disputed transactions from a provisional calculation;
• suspend affected tracking;
• suspend promotional access;
• restrict Program-system access; or
• delay finalisation of an affected calculation.

A temporary hold is not, by itself, a final finding of fraud.

The Company should identify the relevant issue and complete the review within a reasonable period having regard to the complexity of the matter.

14. PARTICIPANT RESPONSE

Where appropriate, the Company may provide the participant an opportunity to explain or provide supporting evidence concerning the disputed activity.

The participant may be asked to provide information such as:

• order reference;
• tracking reference;
• date/time;
• link or code used;
• relevant public content;
• explanation of the transaction; or
• other reasonably relevant evidence.

The Company may limit disclosure where necessary to protect:

• customer privacy;
• confidential business information;
• security systems;
• another participant's information; or
• legally protected information.

15. POSSIBLE OUTCOMES

Following review, the Company may determine that:

Finding	Possible Action
No issue identified	Activity remains eligible
Technical error	Correct records
Attribution error	Reassign or exclude affected activity
Invalid transaction	Exclude transaction
Artificial activity	Exclude affected activity
Material compliance breach	Restrict or suspend participation
Fraudulent conduct	Disqualification and applicable contractual/legal action
Unresolved issue	Continue hold/review where reasonably necessary

The response should be proportionate to the verified issue and consistent with the applicable agreement and law.

16. DISQUALIFICATION

Where the applicable agreement permits it, a participant may be suspended or terminated for material conduct including:

• fraud;
• deliberate artificial activity;
• deliberate attribution manipulation;
• fabricated transactions;
• material false information;
• intentional circumvention of Program controls;
• serious misuse of MyCloth India branding;
• repeated material violations;
• unlawful conduct connected with the Program; or
• other material breach of the applicable agreement.

Disqualification does not automatically mean that every historical transaction is invalid.

The Company should identify the affected activity and apply the applicable rules to that activity.

17. EFFECT ON FINANCIAL CALCULATIONS

Fraud or invalid activity may affect:

• attribution;
• QNR;
• PCF-based contribution;
• ACS;
• TACS;
• the participant's allocation percentage; and
• the amount ultimately payable.

The financial calculation itself remains governed by the applicable Accounting Policy, PCF Policy, Attribution & Tracking Policy and participant-specific agreement.

Simple rule:

Fraud Policy decides integrity treatment.

Attribution Policy decides attribution.

PCF Policy determines contribution methodology.

Accounting Policy determines financial allocation.

18. POST-PERIOD DISCOVERY

An issue discovered after an initial calculation or payment may still be reviewed where permitted by the applicable agreement and law.

Examples include:

• later refund;
• later chargeback;
• later discovery of fraudulent activity;
• accounting correction;
• duplicate attribution discovered later; or
• other material information that changes the eligibility of an earlier transaction.

The Company may make an appropriate post-period adjustment under the applicable policies and agreement.

19. NO PUNISHMENT FOR GOOD-FAITH REPORTING

A participant should not be penalised merely for making a genuine good-faith report of:

• suspected fraud;
• artificial activity;
• attribution manipulation;
• impersonation;
• serious Program abuse; or
• another material integrity concern.

Reports should be made responsibly and should not knowingly contain false allegations.

20. CONFIDENTIALITY OF INVESTIGATIONS

Investigation information may contain commercially sensitive or personal information.

The Company may therefore restrict disclosure of:

• another participant's data;
• customer information;
• internal fraud-detection methods;
• security information;
• confidential financial information; and
• legally protected information.

The participant may receive information reasonably necessary to understand the treatment of their own affected activity, subject to these limitations.

21. NO AUTOMATIC GUILT

A transaction, participant or account should not be treated as fraudulent solely because it:

• has unusually high performance;
• involves a family member or friend;
• has a technical anomaly;
• requires verification; or
• is selected for review.

The Company should rely on relevant evidence and applicable Program rules.

22. PARTICIPANT RESPONSIBILITIES

Every participant is expected to:

• use genuine promotional methods;
• use approved tracking methods;
• provide accurate information;
• avoid self-funded or reimbursed activity;
• avoid artificial engagement;
• avoid manipulation of tracking systems;
• cooperate reasonably with legitimate verification;
• protect their account credentials;
• report material suspected abuse; and
• comply with the Master Terms and incorporated Program policies.

23. COMPANY INTEGRITY RESPONSIBILITIES

The Company will administer fraud controls with the objective of:

• protecting genuine participants;
• protecting customers;
• protecting the Company;
• preventing artificial inflation;
• maintaining reliable attribution;
• maintaining accurate financial records; and
• applying the written Program framework consistently.

Fraud controls should not be used as a substitute for the written financial formula.

24. FAIR APPLICATION

Fraud and integrity controls should be applied using relevant evidence and the written Program framework.

The Company should seek to apply the same fundamental integrity principles consistently to similarly situated participants and transactions.

No participant should receive preferential treatment because of:

• personal relationship;

• friendship;

• family relationship;

• popularity;

• follower count;

• commercial status; or

• internal relationship with the Company,

unless an objective written Program rule expressly provides otherwise.

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25. EVIDENCE AND RECORDS

Where an integrity review is conducted, relevant records may include:

• order records;

• payment records;

• Shopify Collabs records;

• affiliate links;

• discount codes;

• Participant IDs;

• attribution logs;

• return/refund/chargeback records;

• relevant communications;

• public content;

• technical records; and

• accounting records.

Records should be maintained in accordance with applicable Company record-retention, privacy and accounting requirements.

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26. CUSTOMER PRIVACY

Fraud prevention does not give a participant a right to receive private customer information.

The Company may use information reasonably necessary for verification while respecting applicable privacy, confidentiality and data-protection requirements.

Where possible, information should be limited to what is reasonably necessary for the particular integrity review.

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27. RELATIONSHIP WITH ADVERTISING & CONTENT POLICY

The Advertising & Content Policy remains applicable.

Content may be reviewed where it is relevant to:

• fabricated performance claims;

• fake testimonials;

• misleading commercial statements;

• artificial engagement;

• unauthorized representations;

• impersonation;

• false earnings claims; or

• other integrity concerns.

However, ordinary creative disagreement or a legitimate personal opinion does not by itself constitute fraud.

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28. NO GUARANTEE OF FRAUD DETECTION

The Company's controls are designed to reduce fraud and artificial activity, but no technical, accounting or monitoring system can guarantee detection of every improper transaction or activity.

The Company may therefore conduct later reviews where new relevant information becomes available.

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29. PARTICIPANT COOPERATION

Participants must reasonably cooperate with legitimate Program verification.

Failure to provide reasonably requested information may affect the Company's ability to verify disputed activity and may result in the affected activity remaining pending, being excluded, or being otherwise treated under the applicable agreement and policies.

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30. NO ARBITRARY FINANCIAL ALTERATION

This Policy does not give an individual employee, manager, representative or other person authority to privately change:

• the 10% collective Annual Partner Pool;

• ADNP;

• QNR;

• PCF;

• ACS;

• TACS;

• allocation methodology; or

• a participant's contractual financial rights.

Any financial determination must follow the applicable written Program framework and authorized governance process.

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31. LEGAL AND CONTRACTUAL RIGHTS

Nothing in this Policy:

• excludes rights or liabilities that cannot lawfully be excluded;

• prevents the Company or participant from exercising rights under the applicable agreement;

• prevents reporting or cooperation with lawful authorities where required; or

• limits any mandatory requirement of applicable law.

All actions remain subject to applicable law and the participant's definitive agreement.

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32. POLICY CHANGES

The Company may update this Policy where reasonably necessary to address:

• new fraud methods;

• technology changes;

• platform changes;

• accounting or operational requirements;

• legal or regulatory requirements;

• security requirements; or

• lessons identified through Program administration.

A policy update should not be used to arbitrarily rewrite a completed and finalized financial calculation period unless permitted by the applicable agreement and law.

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33. QUICK PARTICIPANT RULE

Before creating or promoting any activity, ask:

Question	Requirement
Is the activity genuine?	Yes
Is the customer/order genuine?	Yes
Am I funding or reimbursing it?	No
Is attribution accurate?	Yes
Am I manipulating tracking?	No
Is the content truthful?	Yes
Am I using artificial engagement?	No
Can I reasonably support the activity if questioned?	Yes

If the answer is unclear, do not attempt to manufacture or manipulate the activity.

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34. SIMPLE PROGRAM INTEGRITY FLOW

GENUINE ACTIVITY
↓
APPROVED TRACKING
↓
VALID ORDER
↓
ATTRIBUTION VERIFICATION
↓
QUALIFICATION
↓
QNR + PCF
↓
ACS / TACS
↓
ACCOUNTING CALCULATION
↓
INDIVIDUAL ALLOCATION

Fraud prevention operates across every stage of this process.

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35. FINAL PRINCIPLE

The purpose of this Policy is not to prevent genuine growth.

The Program is intended to build long-term relationships with genuine social-media Account Owners who create authentic commercial value for MyCloth India.

It is to ensure that Program participation is based on:

GENUINE PERFORMANCE

HONEST ATTRIBUTION

RESPONSIBLE CONDUCT

ACCURATE RECORDS

FAIR APPLICATION

ACCOUNTING INTEGRITY

 

MYCLOTH INDIA ARMY

"BUILD WITH US

GROW WITH US"