Investment cancellation process. Refund #

Refund process intiiation could be different based on funding method used for investment.

1. When the investor uses a Dwolla-based payment method:
   • Dwolla wallet
   • Direct payment from a bank account linked to the Dwolla wallet

Once a Dwolla transfer, created as a result of the submitted investment, receives a Processed status, the funds are moved to North Capital. So to initiate a refund for investment paid with Dwolla method where investment transaciton got Processed status already, cancellation process should be triggered by API. After processing the request on North Capital end, the funds should be returned to the originating bank account.

Before that point (e.g., when the status is Pending), approving a cancellation request means the funds will be returned to either the investor’s Dwolla wallet or the linked bank account, depending on the option chosen during the investment process.

Canceling a pending investment does not cancel any pending transaction(s) in the Dwolla system used for payment. This means a pending deposit will settle in the investor’s wallet once processed by Dwolla. Once settled, it will not be used to pay for the canceled investment and will remain in the wallet balance for future investments. When a user cancels an investment made with a Dwolla payment method, a notification appears asking to cancel the pending transaction. -> (TBD)

2. When the investor uses a non-Dwolla-based payment method (payments made directly from a bank account not linked to the Dwolla wallet):
   • ACH
   • Wire

Funds transferred using these methods move directly from the investor’s bank account to North Capital, bypassing any intermediaries. As noted, the bank providing the funds is not connected to Dwolla. To process a refund for investment paid with ACH, cancellation process should be triggered by API. After processing the request on North Capital end, the funds should be returned to the originating bank account.

To process a refund for investment paid with WIRE, an admin must contact North Capital and request it - see details. After completing the process with North Capital, the funds should be returned to the originating bank account.

EDGE CASE Note: If there is an issue with the interaction between our platform and North Capital, and the investment cancellation does not trigger the cancellation of the corresponding trade, an admin can manually cancel it in North Capital.

• Go to the North Capital info of the investment in the admin panel.

• click on link on trade in NC

• click on delete btn

• check that trade was cancelled

• check that shares becomes free.