Read this once.

VERSION 1.0 · LAST UPDATED 28 APR 2026

What you're buying.

A "Quarter" is a non-fungible token (NFT) on the Terra2 blockchain. It represents a fictional vintage arcade cabinet rendered as an SVG image with associated metadata. The collection ships at a fixed cap of 2,500 Quarters, after which no further Quarters will be minted.

Ownership of a Quarter grants you the rights described below. It does not grant you any equity, dividend, profit share, voting power over a legal entity, or any other security-like instrument.

★ what ownership grants

• The token. Custody and transferability of the Quarter NFT itself, freely tradeable on any Terra2-compatible NFT marketplace.
• The artwork. A non-exclusive, perpetual, worldwide license to display the Quarter's artwork (including derivative compositions) for personal, non-commercial use. Commercial use of the artwork (for the cabinet design rendered in the Quarter you hold) is granted while you remain the holder of record. Resale transfers this license with the token.
• Lounge access. While you hold a Quarter, you have non-transferable access to The Backroom lounge web application at lounge.the-backroom.xyz.
• Tournament eligibility. Eligibility to participate in periodic skill-based tournaments hosted in The Backroom lounge. Prizes are non-monetary (custom traits, on-chain titles, physical merchandise).
• Drops. Eligibility to receive periodic merchandise drops at no cost, subject to international shipping availability and reasonable per-region limits.
• Whitelist. Priority allocation on subsequent collections released by The Backroom.

What you're NOT buying.

This is the most important section. Read it carefully.

★ no investment

A Quarter is not an investment contract. It is not a security under the laws of the United States, the European Union, the United Kingdom, Sweden, or any other jurisdiction the operators are aware of.

You are not being offered:

• A share of any pool, treasury, or operating revenue.
• A dividend or coupon payment.
• A yield, interest, or staking reward.
• A redemption right against any party.
• A claim on any cash flow generated by The Backroom or any related party.
• A guarantee, expectation, or implied promise that a Quarter will appreciate in value.

The price of a Quarter on the secondary market is determined entirely by what other parties are willing to pay for it. The Backroom makes no representations about secondary market price or liquidity.

★ Howey-test alignment

Under the four-prong Howey test (an investment of money, in a common enterprise, with an expectation of profit, derived primarily from the efforts of others), Quarters are designed to fail the third and fourth prongs. You are not purchasing a Quarter with an expectation of passive return derived from the efforts of The Backroom's operators. You are purchasing a digital collectible and a membership to a fan-community arcade.

By completing a mint or secondary purchase, you confirm that you are not relying on any expectation of profit from the efforts of The Backroom or any third party.

Perks of ownership.

"Perks" are voluntary benefits offered by The Backroom to holders. They are not contractual obligations.

The Backroom reserves the right to modify, suspend, or discontinue any perk at any time, for any reason, including but not limited to: cost changes, regulatory changes, jurisdictional restrictions, vendor availability, or shifts in project focus.

Specific perk constraints:

• Merchandise drops. Subject to international shipping feasibility. The Backroom may exclude addresses in jurisdictions where shipping is restricted, prohibitively expensive, or unsafe. Holders are responsible for any local import duties or taxes.
• IRL events. Annual events are subject to venue availability, capacity limits, and local regulations. Attendance is first-come, first-served. Travel costs are the holder's responsibility.
• Tournament rewards. Custom traits and on-chain titles awarded by tournament are recorded on-chain at The Backroom's discretion. Physical trophies (where applicable) ship by standard mail at no cost to the winner.
• Brand discounts. Discount codes issued through partnerships are subject to partner availability and may include their own terms and conditions.

Selling or transferring your Quarter terminates your access to all associated perks. The new holder of the Quarter inherits the perk eligibility from the moment of transfer.

The mint.

• Mint price: $50 USDC per Quarter at the moment of mint.
• Tier (Brass, Silver, Gold, Phoenix) is determined randomly by the mint contract at the moment of minting. The Backroom does not control or pre-allocate tier assignments.
• Mint window: opens 12 May 2026 19:00 UTC, closes 19 May 2026 19:00 UTC, regardless of sellout status.
• Wallet limit: 1 Quarter per wallet for the first 24 hours. After that, the limit is removed and remaining supply is open until close.
• Unminted Quarters at close are burned permanently at the contract level. The supply cap is enforced on-chain.
• Royalty: 5% on secondary sales, paid to the operating treasury, used to fund hosting, lounge maintenance, merch drops, IRL events, and future development.

Eligibility & geography.

You are responsible for determining whether your jurisdiction permits the purchase of NFTs. Some jurisdictions (including but not limited to: the United States, with respect to certain residents; mainland China; certain sanctioned jurisdictions) may impose restrictions on digital-asset transactions.

You may not purchase a Quarter if you are: (a) a citizen, resident, or legal entity of a sanctioned jurisdiction (as designated by the United Nations, the European Union, the United Kingdom, or the United States Treasury OFAC); (b) a person or entity on any sanctions list; or (c) under 18 years of age.

Risk acknowledgements.

By purchasing a Quarter, you acknowledge:

• Digital assets carry significant volatility risk and may lose all or substantially all of their value.
• Blockchain transactions are irreversible. The Backroom cannot recover lost private keys, mistaken transfers, or accidentally burned tokens.
• Smart contracts may contain bugs. Despite reasonable care, The Backroom does not guarantee freedom from defects.
• The Terra2 chain may experience downtime, congestion, fee spikes, or fork events.
• The Backroom may, in extreme circumstances (e.g., catastrophic security failure, regulatory order), be required to wind down operations. In that event, the on-chain Quarter remains in your wallet but the off-chain perks (lounge access, merch, events) cease.
• The artwork and metadata associated with a Quarter are intended to be permanent but rely in part on third-party services (image hosting, marketplace metadata caches). The Backroom commits to best-effort archival but does not guarantee 100% uptime of all auxiliary services.

Marketplace.

Secondary trading of Quarters is hosted on a Terra2-native NFT marketplace. The Backroom facilitates the integration but does not custody secondary funds. Marketplace transactions are between the buyer and seller. Any dispute regarding a marketplace transaction is between the parties, not with The Backroom.

Intellectual property.

The "THE BACKROOM" wordmark, the "★" sigil, the cabinet artwork, and all associated marketing materials are the property of The Backroom operators. The non-exclusive license described under "What ownership grants" is the only license granted.

Holders may use their Quarter's artwork freely for non-commercial purposes (avatars, social posts, personal merch). Commercial use of the cabinet design (e.g., merchandise sold for profit using your Quarter's specific cabinet) is permitted only while you remain the holder of record and only for the specific cabinet you hold.

Privacy.

The Backroom does not collect personal data beyond what is necessary to operate the lounge and ship merchandise. Wallet addresses are public on the blockchain. Shipping addresses provided for merch drops are stored encrypted and used only for that purpose; they are deleted within 90 days of fulfillment.

Governing law.

These terms are governed by the laws of the operators' jurisdiction (see "About" section in your purchase confirmation email). Disputes shall first be resolved through good-faith communication via the contact channels published on the official site. Class actions are waived. Individual arbitration is the sole formal dispute mechanism.

Changes.

These terms may be updated. Material changes will be announced on the official site and Discord at least 14 days before taking effect. Continued holding of a Quarter after a change takes effect constitutes acceptance.

Final note.

The Backroom is an arcade. Quarters are tickets. Treat them as collectibles you love, not as investments you depend on. If you cannot afford to lose the entire price of your Quarter without consequence, please do not buy one.

Insert to play. The Backroom remembers.