Financial Stakes & Competition Policy

1. What Makes Shamely Different from Gambling

1.1 No Element of Chance

Gambling, by legal definition, involves wagering on outcomes determined by chance— dice rolls, card draws, sporting events, or random number generators. The outcome is unpredictable and outside the bettor's control.

Shamely is fundamentally different. Your outcomes are determined entirely by your own choices and actions. If you commit to avoiding certain websites and visit them anyway, that is an act of will—not luck.

1.2 Self-Imposed Penalties, Not Wagers

When you set a financial stake on Shamely, you are not betting against the house or other users. You are establishing a self-imposed penalty to strengthen your own resolve. This is similar to:

• Hiring a personal trainer with cancellation fees
• Joining a gym with a contract commitment
• Putting money in a savings account with early withdrawal penalties

These are commitment devices, not gambling.

1.3 Skill-Based Challenges

When participating in group challenges (Squads), outcomes are determined byskill, willpower, and discipline—not chance. This legal distinction is recognized by courts and regulators in the context of contests and competitions.

2. Legal Framework

2.1 Skill-Based Competition Precedent

The legal basis for Shamely's model follows established precedent for skill-based competitions with entry fees and prizes. Similar models are used by:

• Weight loss challenge platforms (DietBet, HealthyWage)
• Fitness accountability apps (StepBet)
• Professional gaming tournaments
• Educational competition platforms

2.2 Not a House Advantage

Shamely does not bet against users or profit from user losses in the gambling sense. Our revenue comes from subscription fees and optional service charges—not from "winning" against our users.

2.3 User Control

You determine your own stakes, your own goals, and your own consequences. We do not set odds, manipulate outcomes, or create unpredictable results. Your success or failure is entirely within your control.

3. How Financial Stakes Work

3.1 You Set the Amount

During commitment creation, you choose how much money to put at stake. This amount represents the consequence you believe will motivate you. We offer recommendations, but the final decision is yours.

3.2 Clear Terms Before Commitment

Before any money is at risk, you see and agree to:

• The exact amount at stake
• What constitutes success or failure
• Where forfeited funds go (Guardian, charity, or platform)
• The duration of the commitment

3.3 Forfeiture on Self-Breach

If you breach your own commitment, your stake may be forfeited according to the terms you agreed to. This is the execution of your accountability contract—the service you purchased to help maintain your resolve.

3.4 Success Means You Keep Your Money

When you succeed in your commitment, your stake is returned to you. You are rewarded for your discipline with 100% of your money back. There is no "house edge."

4. Squad Challenges (Group Competitions)

4.1 Invite-Only Groups

Squads are private groups of users who voluntarily join together for mutual accountability. You can only join a Squad through an invitation from someone you trust.

4.2 Skill Determines Outcome

In a Squad challenge, success depends on each participant's ability to maintain their commitment. It is a test of willpower and discipline—skills you develop and control.

4.3 Pot Distribution

If stakes are pooled, successful participants may receive a share of the pot from those who didn't complete the challenge. This is similar to office weight-loss competitions or savings clubs with forfeiture provisions.

4.4 No Random Outcomes

At no point does Shamely introduce randomness into challenge outcomes. There are no dice, no lottery draws, no random eliminations. Your fate is in your hands.

5. Geographic Restrictions

While Shamely is not gambling, we respect local regulations regarding skill-based competitions with financial stakes. Users in certain jurisdictions may have access to modified features:

• Some states prohibit skill-based competitions with cash prizes
• We may restrict financial stake features based on your location
• Non-financial accountability options are available everywhere

We use geolocation to ensure compliance with local laws.

6. Payment Processing

All financial transactions are processed by licensed third-party payment providers. Shamely does not act as a bank, money transmitter, or escrow agent in the regulatory sense. Funds flow through compliant financial infrastructure.

7. Responsible Use

We encourage responsible use of financial stakes:

• Start Small: Begin with stakes you can afford to lose
• Know Your Limits: Don't set stakes that would cause financial hardship
• Focus on Growth: Financial stakes are a tool for motivation, not the goal itself
• Seek Help if Needed: If you feel compelled to set ever-higher stakes, consider speaking with a counselor

8. User Attestation

By using financial stakes on Shamely, you acknowledge and agree that:

• You are participating in a skill-based accountability system, not gambling
• The outcome of your commitment depends entirely on your own actions
• You have voluntarily chosen your stake amount and consequences
• Forfeiture of stakes is not a gambling loss—it is the execution of your accountability contract
• You will not attempt to characterize Shamely as gambling for legal purposes

9. Contact

For questions about our financial stake policies or compliance:

• Email: compliance@shamely.com