Compensation Rules for Order Cancellation

The SOMO platform encourages both parties to negotiate disagreements through IM and modifying the agreement of orders. If cooperation can not continue, either party may choose to cancel the cooperation, and no confirmation is required from the other party. The compensation rules are determined based on the progress status of the order, and the specific penalty ratio is as follows:

Brand-initiated cancellation

Compensation Ratio

Starting Point of Status (included)	Ending Point of Status (not included)	Ratio
Agency/Creator applies for a campaign	The first cooperation agreement reached by both parties	0%
The first cooperation agreement reached by both parties	Production of delivered works	20%
Production of delivered works	Brand confirms delivery	50%

Agency/Creator-initiated cancellation

No payment will be made for any Agency/Creator-initiated cancellation, and all funds will be returned to the brand.

Arbitration

If disputes arise between both parties during the cooperation period, and neither party agrees to cancel the order according to the above rules, arbitration can be initiated. The SOMO platform will determine whether payment is required and the payment ratio based on the stage of the order and the responsible party.