Apology for Changes in Settlement Earnings

Hello,

This is the Management Team of MiriCanvas DesignHub.

We would like to inform you about an issue related to our settlement system. Due to an error during the system improvements on June 4, 2024, incorrect settlement data was recorded for Single License transactions from June 4, 2024, to September 3, 2024.

This issue was first identified on September 5, 2024, and development measures were taken to resolve it. Please note that some earnings may have been impacted during this time, and we appreciate your understanding.

The detailed circumstances of the incident and the current status of the measures are as follows:

 

• June 4, 2024
• An error occurred during the settlement system improvements, causing Single licenses to be counted three times.

• July 25, 2024 / August 25, 2024
• The incorrectly calculated earnings were paid out without adjustment.

• September 5, 2024
• The above error and the overpayment issue were first identified.
• From June 4, 2024, to September 3, 2024, Single license usage had been overcounted by a factor of three.
• Immediately upon discovering the issue on September 5, 2024, corrective measures were initiated to fix the counting of Single licenses starting from September 4, 2024.

• September 12, 2024
• Earnings from June 2024 to August 2024 that have not yet been paid have been recalculated.
• During this process, the Single licenses that were incorrectly counted three times were adjusted to the correct count.
• Please note that this may have resulted in changes to some earnings.

• Follow-up Measures
  • Due to Content Contributor License Agreement(CLA) - Article 9 (Content Royalty Payment) 2-b, additional deductions will be made for the overpaid amounts from July 25, 2024, and August 25, 2024.
    • <Content Contributor License Agreement(CLA) - Article 9 (Content Royalty Payment) 2-b>
      • The Company reserves the right to deduct any royalties overpaid for any reason from any royalties payable to the Contributor or demand immediate return.
  • The detailed amount of overpayments cannot be confirmed within DesignHub.
  • If the earnings decrease below the minimum transfer amount due to the deduction of overpaid amounts, you will be excluded from this month’s payment.
  • Deductions for overpaid amounts will begin on September 25, 2024, for the selected payment months.
  • The deductions related to the overcounting error will be spread across three monthly payments after which no further deductions will be applied to regular payments.
    • Deduction Dates: September 25, 2024, October 25, 2024, November 25, 2024.
      
• Example
  • (Expected transfer amount on September 25, 2024: USD150) - (Overpaid amount on July 25, 2024: USD60) = USD90
  • Since the final transfer amount has decreased below the minimum transfer amount of USD100, the payment for September 25, 2024, will be excluded.

We deeply regret the error in counting Single license usage and sincerely apologize to the Contributors affected by this issue.

While we continually work to improve our system to keep up with the growth of MiriCanvas DesignHub, we understand that this development error has caused inconvenience and concern.

We are using this incident as a learning opportunity and will conduct a thorough review of our settlement system to prevent similar issues in the future.

We will also improve the operational processes of the MiriCanvas DesignHub settlement system and provide comprehensive training to all members of the Management Team.

Once again, we apologize for the trouble caused and are committed to improving our performance going forward.

Thank you.

Sincerely,

MiriCanvas DesignHub Management Team