Creator Economy Program Rules

Effective Date: November 22, 2023

Creator Economy Program Rules

The following Creator Economy Program Rules apply to any User that participates in the VRC Creator Economy and form a part of the VRChat Terms of Service available at https://hello.vrchat.com/legal (or any successor URL designated by VRChat) (the “Terms”). Any capitalized terms used but not otherwise defined herein shall have the meaning given to those terms in the Terms.

1. Acceptance of Terms. In order to become and maintain status as a Seller in the VRC Creator Economy, you agree to the following terms and conditions (these “CE Rules”). If you do not agree to these CE Rules, you may not participate in the VRC Creator Economy as a Seller. We reserve the right to deny a Payout Request from any Seller that is or that we suspect to be in violation of these CE Rules.

2. Modifications to the VRC Creator Economy. VRChat reserves the right to modify, amend, or cancel the VRC Creator Economy, add, remove, or modify the eligibility requirements, and change the exchange rate of Earned Credits, at any time and for any reason. The existence of the VRC Creator Economy today in no way creates an obligation for us to continue providing and maintaining the VRC Creator Economy in the future, nor does it guarantee that Credits can be exchanged in the future. We reserve the right to review activity of any Account to assess the validity of Credit balances, investigate complaints, or if we believe in our discretion that the Account’s owner has been involved in a violation of the Terms or any applicable law. We may deny payment to any User that we believe has violated the Terms, the Community Guidelines, these CE Rules or any applicable law.

3. Eligibility to be a Seller. A Creator must meet the following requirements (the “Program Eligibility Requirements”) to receive and maintain approval to be a Seller:

(a) be a User who is 18 years of age or older;

(b) have a VRChat account that has been active for at least 30 days;

(c) have a current and active subscription to VRChat Plus;

(d) have a verified email address associated with your Account;

(e) be a community member in good standing at all times while using the Platform, with no suspensions or bans from the Platform or the VRC Creator Economy in the last 90 days;

(f) use the Platform in strict compliance with these CE Rules, the Terms, the Community Guidelines, and the requirements set out in Section 5 below;

(g) not engage in any of the following activities: scamming, phishing, false advertising, attempting to exchange Credits for real currency other than through the Platform, or any illegal or unethical activities; and

(h) meet any other eligibility requirements that we or our CE Partner may establish from time to time in our or their sole discretion, including but not limited to: (i) having all applicable tax forms on file with the relevant CE Partner; and (ii) completing any applicable CE Partner’s Know Your Customer registration, as required by such CE Partner.

VRChat may revoke a Creator’s approval to be a Seller at any time if the Creator violates any of these requirements.

4. VRChat Credit Availability. As a Seller in the VRC Creator Economy, we will provide you with Earned Credits when another User purchases Seller Content that you have listed for sale. Users that purchase Seller Content are not obligated to provide you with Earned Credits. We will attempt to credit your Account with such Earned Credits in a timely manner, but you may occasionally experience delays in receiving them. We may also block or withhold access to such Earned Credits if there is a dispute or if we suspect that you are in violation of the Terms, these CE Rules, the Community Guidelines or any other VRChat policy. In the event your Account’s Credit balance becomes negative (e.g., because amounts paid to you were refunded), we reserve the right to reduce accordingly any future payments to you. If a purchaser pre-pays for your Seller Content, you will only receive a portion of the value up front, and the remainder will be paid to you over time on the schedule indicated on the Platform or otherwise communicated to you by VRChat in writing.

5. Ongoing Service Requirement for Sellers. A Seller that creates, sells, or otherwise makes Seller Content available to others must comply with the following additional ongoing obligations:

(a) Provide an ongoing experience that complies with our Community Guidelines. This means working with our User Support and Trust and Safety teams and our community members to resolve any issues with Seller Content that does not comply with the Community Guidelines.

(b) Update Seller Content for security, technical and other reasons, including as may be required by VRChat from time to time. For example, you will need to make sure the Seller Content continues to function with the latest version of the Platform and any applicable Clients, and otherwise complies with VRChat’s best practices, including those related to privacy and cybersecurity.

(c) Provide assistance to VRChat for legal and compliance reasons. For example, we may ask for your assistance with the DMCA takedown process relating to intellectual property issues (see our Copyright Policy, available at https://hello.vrchat.com/copyright).

6. Payout of Earned Credits. Sellers may submit a Payout Request to exchange their Earned Credits for U.S. Dollars at the exchange rate set forth below, and which rate is subject to change at any time. Upon receiving a Payout Request, VRChat will decide in its sole discretion whether to offer a Seller a Payout and the amount of such Payout. In general, a Payout will be equal to the amount of Earned Credits reflected in the Payout Request multiplied by the current exchange rate, minus any Payout Transaction Fees and subject to the limitations and requirements provided in these Terms and the CE Rules.

Additionally, the following limitations apply to Payouts:

(a) You must satisfy all of the Program Eligibility Requirements;

(b) You must have at least 30,000 Earned Credits in your Account; and

(c) You must not have initiated a Payout Request in the preceding two weeks.

When you submit a Payout Request, VRChat will review your Payout Request and associated activity on the Platform to determine your eligibility for a Payout.

Credits that are directly purchased or otherwise not received in exchange for Seller Content are not considered Earned Credits and are therefore not eligible for Payout.

7. Payout Requests. Payout Requests can take up to 30 calendar days to process. We may impose a limit on both the amount and frequency of your Payouts based on the age of your account, your history as a Seller, and your compliance with the Terms. Initiating a Payout Request does not guarantee that you will be able to exchange your Earned Credits for U.S. Dollars. VRChat alone has the authority and discretion to determine if your request will be honored. In addition, our CE Partner may establish requirements that you must meet to their satisfaction before being able to receive a Payout. Upon submitting a Payout Request, the requested amount for Payout will be deducted from your Account, pending approval and processing of such Payout. In the event your Payout Request is denied, or the Payout is otherwise unable to be completed, the deducted Credit balance will be restored to your Account. We may not be able to remit payments to certain countries, entities, or individuals because of legal or other considerations.

8. Credit Exchange Rate. The current exchange rate for Payouts is $0.005 U.S. Dollars per Earned Credit.

9. Seller Transaction Fees. Transaction Fees of approximately 15.3% will be applied to any sale of Seller Content. This percentage will be deducted from the total number of Credits comprising the purchase price of any Seller Content, rounded up to the nearest full Credit. These fees go to VRChat and the applicable CE Partners.

10. Payout Transaction Fees. Transaction Fees may be assessed when you initiate a Payout. Such fees will be deducted from the amounts paid to you by VRChat or our CE Partner. Transaction Fees vary depending on payment method chosen and will be shown on the Platform and/or by our CE Partner facilitating Payouts.

11. IRS and Tax Reporting. You are responsible for any taxes that may be owed in connection with any Payout. We consider any Payouts to be payments for services you have provided. You are responsible for ensuring that all payments received, if any (whether you live in the U.S. or elsewhere) are reported to the proper taxing authorities. Income that minors earn can impact their parents’ tax returns. VRChat shall bear no responsibility for withholding or paying the tax obligations of any user, nor shall VRChat be held liable for any failure by a user to timely pay any tax obligations arising from participation in the VRC Creator Economy. We may require you to have a current IRS form W-9 or other document on file with us or our CE Partners prior to processing any Payout Requests. All payments made to U.S. Users (other than for certain limited exceptions due to reporting requirements) will be reported to the IRS and to you using a form 1099. Payments made to non-U.S. Users will not be reported to their home countries.