Service Level and Indemnification Policy – KIKI LATAM

Spanish Version Here

At KIKI LATAM, we are committed to operational excellence, traceability in logistics management, and maintaining a transparent relationship with our Clients.

This Service Level and Indemnification Policy sets forth the minimum standards we commit to meeting during the provision of our services, as well as the criteria, conditions, and limits under which we grant compensation in the event of operational failures or direct impacts attributable to our operations.

The purpose of this document is to provide legal certainty, commercial clarity, and an objective guide for our Clients, complementing the terms agreed upon contractually.

This policy forms an integral part of the contracts entered into with KIKI LATAM, and its acceptance implies full understanding and compliance with the conditions described herein.

1. What is the purpose of this policy?

The purpose of this Service Level and Indemnification Policy is to establish a general framework for managing claims and compensations arising from incidents occurring during the provision of logistics services offered by KIKI LATAM, including production, storage, kitting, distribution (Last Mile), cash collection (Cash on Delivery – COD), and complementary services.

This policy defines the minimum service commitments assumed by KIKI, the scenarios under which compensation may be granted, the limits and available modalities of indemnification, and the conditions under which Clients may formally request a review of incidents.

Its aim is to promote a transparent, consistent, and predictable relationship between KIKI and its Clients, strengthening commercial trust and enabling the resolution of issues based on previously established objective criteria.

2. What is the scope of the policy?

This policy applies to all Clients who contract services with KIKI LATAM, regardless of their country of operation, communication channel, or commercial model, unless a different agreement is explicitly stated in the signed contract. It also applies to all services provided directly by KIKI or through its production and logistics partners, provided such services are coordinated under KIKI’s operation.

It includes the following services:

• Storage of products in logistics centers operated or coordinated by KIKI.
• Production, which includes manufacturing or conditioning of supplements, gadgets, and other products contracted by the Client.
• Kitting service, including preparation, packaging, and arrangement of products for shipment or delivery in accordance with KIKI’s operational guidelines.
• Order processing and distribution under the Last Mile model.
• Cash collection under the Cash on Delivery (COD) model.
• Additional logistics-related services offered by KIKI (inventory counting, quality validation based on packaging, labeling, insurance, among others).

This policy is binding upon publication and forms an integral part of the general service terms offered by KIKI LATAM. It may be referenced in contracts, service orders, commercial agreements, or published through official channels such as the corporate website.

3. What types of compensation can I expect if I purchase services from KIKI LATAM?

For services accessed through KIKI LATAM, two types of compensation apply:

• Compensation for service quality failures: These refer to compensation applicable when, due to causes attributable to KIKI, the minimum service levels (SLAs) outlined in this policy are not met. These compensations do not depend on the purchase of insurance and are calculated based on predefined penalty formulas (see Service Levels section). Their application requires the Client to have followed the reporting procedure and for direct responsibility by KIKI to be verified.
• Compensation for damage to goods or collected cash: These relate to material losses occurring during production, storage, transport, or cash collection (COD). They are subject to the Client having previously contracted the relevant additional services, such as: Merchandise insurance (in storage or in transit); Cash value insurance (for COD collections); Pallet count service, to enable inventory traceability and protect against shortages.

If the Client does not purchase voluntary insurance, compensation payments will be subject to the limits described in section 5 of this document.

This type of compensation is calculated based on the declared production value provided by the Client in the Production Value Declaration Form, which is attached to this policy as Annex A, and is limited by the maximum amounts defined herein.

Additionally, the following liability parameters will be taken into account to determine the types of damages and when KIKI LATAM is or is not responsible for them:

A. When is KIKI responsible?

KIKI LATAM shall only be liable when the following conditions are met:

• The incident originated within the logistics chain under KIKI’s operational control.
• The Client has complied with all documentary and contractual requirements (value declaration form, invoice, contracted insurance, and/or other documents requested by KIKI at the time of the claim, if applicable).
• No exclusion stated in this policy or in the applicable contracts applies.
• No Client-responsibility event, as set forth in this policy, applies.
• There is objective evidence of the incident (logs, systems, photos, traceability).
• No force majeure events have occurred (fires, floods, earthquakes, hurricanes, etc.).

B. When is the Client responsible?

KIKI LATAM shall not be held liable when the incident is attributable to omissions, errors, or breaches by the Client. This includes, but is not limited to:

• Merchandise not covered by contracted insurance.
• Products without a value declaration form or valid invoice.
• Order cancellations during distribution without reasonable justification.
• Damages identified upon reception of the merchandise.
• Late submission of claims.
• Inadequate packaging for logistical conditions (stacking, transport, humidity, etc.).
• Verbal instructions not formalized in writing.
• Incomplete or incorrect delivery address provided by the Client.
• Duplicate orders generated by the Client’s systems without validation or sent manually.
• Use, misuse, or abuse of the product by the consumer — KIKI is only responsible for the logistics operation.
• Merchandise without labels or identification.
• Out-of-stock inventory in the warehouses assigned by the company.
• Inventory discrepancies during verification of Annex A upon merchandise reception when the production service has not been contracted with KIKI.
• Invalid cash collections made by the consumer without authorization from KIKI or the Client.
• Collection amount errors originating at the source — KIKI cannot modify these values during operations.

Common examples:

• Damage due to collapse of weak boxes or poor packaging of fragile products (e.g., unsuitable cardboard, glass items).
• Claims for products that were never formally registered in inventory.
• Routing errors due to incomplete or incorrect information entered by the Client.
• Claims submitted after the established reporting deadline.
• Discrepancies between quantities stated in documents and the actual units in master boxes and/or pallets.
• Mixed or mismatched SKUs within a reported batch that prevent proper classification and storage.
• Payments made in kind, coupons, vouchers, or other methods by the consumer.
• Incorrect registration of collection amounts by the Client.

C. When is there no attributable responsibility?

No party shall be held liable when the incident arises from external circumstances or causes not directly attributable to either KIKI or the Client, such as:

• Acts of God or force majeure (natural disasters, blockades, riots, etc.).
• Theft by third parties beyond KIKI’s direct operational control.
• Failures in external technological systems not part of the KIKI ecosystem.
• Disputes over undocumented amounts or shortages lacking traceability.

In these cases of non-attributable responsibility, the Client may, at their discretion, contract insurance with KIKI to cover damages to merchandise in transit or cash-on-delivery collections. For storage-related risks or potential force majeure events, KIKI may assist the Client, at the Client’s expense, in contracting an insurance policy with a legally authorized insurer in the country of operation.

Common Cases and Applicable Rules:
To understand the different types of responsibility and common scenarios, as well as whether compensation or penalties may apply, the following matrix is provided:

KIKI shall be liable in cases of natural product deterioration over time, including expiration, loss of physical properties, or progressive alterations, provided that the products were stored in accordance with the agreed conditions and a special conservation treatment was duly requested and paid for.

Notes:

• In all cases where compensation is applicable, it must be requested in accordance with the claims procedure and within the time limits established in Section 6 of this document.
• The “Compensation Type" column refers to the table that will apply based on the nature of the damage:

• Service Level Table: for operational failures and unmet SLAs.

• Damage Compensation Table: for material losses of products or cash.

4. Service Level Agreements (SLA)

KIKI LATAM commits to meeting the following service level standards during the execution of its logistics operations, which apply as the general standard unless otherwise agreed by contract.

These indicators define the minimum expected performance thresholds and serve as the reference framework for the application of penalties or compensation in case of non-compliance attributable to KIKI in any of the service modalities provided to its Clients.

Note: For the purposes of applying this compensation table, one business day shall be understood as equivalent to 8 working hours.

The payment of the described penalty constitutes the maximum amount for which KIKI shall be held liable in each case. This means that these penalties are not additional amounts on top of the COD values or the declared values.

5. Damages to Goods Produced, Stored, Transported and/or Collected (COD)

When damages involve the merchandise, whether during storage and/or in-transit delivery, or the cash collected (COD) by KIKI, the applicable indemnification depends on the type of incident and whether the CLIENT has contracted the additional insurance services offered by KIKI LATAM to protect their goods or collected funds. The following outlines the applicable scenarios and limits:

Note applicable to services operated in the United States:

KIKI assumes no liability for damages, losses, or operational incidents occurring in the United States unless the Client has contracted the specific insurance policy to cover such risks. If the policy is in place, KIKI will respond in accordance with the conditions set forth in the table above, depending on the type of event and the applicable limits. Without such a policy, no compensation shall apply. 

Note on Annex A – Production Value Declaration Certificate:

Annex A must be completed by the Client and signed by both parties. This document serves primarily to record both the unit production value and the number of units corresponding to each product.

• In cases where the Client contracts the production service with KIKI LATAM, Annex A will reflect the values previously shared and approved by the Client. However, the Client acknowledges that these values are subject to constant variation due to market conditions and the nature of the service. Therefore, KIKI LATAM commits to sending an updated product catalog each time the values change, which will constitute the current pricing basis for calculating the unit production value. Furthermore, Annex A must be updated whenever there are changes in such pricing or new orders are formalized.

In this scenario, KIKI will be responsible for the traceability of units from the production order to their entry into storage, assuming liability for any losses occurring during that process together with its production partner, provided that the Client has contracted KIKI’s insurance.

• In cases where the Client does not contract the production service, and KIKI only receives the products for storage, the Client must present Annex A at the time of each warehouse intake, registering the exact number of units and their unit production value. These values may not be modified afterward, and in the event of discrepancies or shortages, responsibility will lie with the Client and their supplier, as KIKI LATAM did not participate in the production phase nor had control over the storage process.

Annex A shall, in any case, be the base document for the determination of indemnifications, and constitutes the only valid record accepted by KIKI LATAM for traceability and liability regarding the goods.

6. Claims Procedure: 

If the Client believes that a failure has occurred in the provision of the service or damage attributable to KIKI LATAM, they may submit a compensation request in accordance with the procedure described below. This procedure aims to ensure a timely, objective, and transparent review of reported cases.

Where should a compensation claim be submitted?

To begin, the Client must distinguish between the following types of claims: 

1. Claim for damages in specific events: This refers to a high number of orders, products, or collected cash affected in a single event.

2. Damages or losses in products across different events: Refers to damage to one or a small number of orders and/or products in different shipments, involving incidents of damaged or missing products occurring over a period of time.

3. Claim for inventory discrepancies: Applies when, during cyclical counts or joint audits, discrepancies are found in stored units that do not match the historical record. This only applies if the Client has contracted counting or traceability services with KIKI.

4. Claim for failure to meet Service Level Agreements (SLAs): Applies when the Client identifies non-compliance with the commitments set out in the agreed performance indicators.

5. Claim for non-compliance with production quality standards: Applies only when the Client has contracted KIKI’s production service. Refers to cases where the end consumer receives products that do not meet the agreed quality standards.

For any of the claims mentioned above, the Client must submit their request through the official channel enabled by KIKI LATAM for such purposes:

Official Channel: support@kikilatam.com

Claims must be reported as follows: 

• Type “a” cases, corresponding to a significant impact in a single event: When a considerable number of orders or collected cash is affected in a single event, the Client must submit an individual report detailing all the affected orders or amounts. The request must be sent within five (5) business days from the date of the event.
• Type “b” cases, corresponding to losses or damage to products in separate events: The Client must submit their claim only within five (5) business days following the end of the previous month in which the events occurred. Individual reports for each case will not be accepted; a single consolidated monthly report must be submitted.  
• Type “c” cases, corresponding to inventory discrepancies: When cyclical counts, joint audits, or formal validation processes between the Client and KIKI reveal differences greater than 2% between physical inventory and system records, based on cyclical counts.
• Type “d” cases, corresponding to Service Level Agreement (SLA) breaches: If the Client identifies potential breaches of the commitments defined in the SLA table, these must be reported in a consolidated format within five (5) calendar days following the end of the month in which the incidents occurred. Individual SLA claims for each case will not be accepted; only monthly consolidated reports are permitted.
• Type “e” cases, corresponding to quality standard breaches: When the Client has contracted KIKI’s production service and the end consumer receives products that do not meet the agreed quality standards, the Client must file the claim within five (5) calendar days from the delivery date to the end consumer. The claim must include sufficient evidence (photos, reports, consumer complaints) to validate the breach.

Requests submitted outside these deadlines will not be accepted, unless a duly justified cause is presented and accepted by KIKI.

What information and documentation must be included in the claim?

The request must be submitted in Excel, Word, or PDF format and must include the following minimum information to be considered for evaluation:

Mandatory Information:

• Full name of the Client and identification number (if applicable).
• SKU number, order numbers, or logistics tracking numbers associated with the case.
• Evidence of the breach and the affected SLA indicator.
• Date the event occurred or the issue was detected.
• Clear description of the incident: What happened? How was the merchandise or service affected? What is being claimed?

Mandatory Documentation: The claim must be accompanied by the following documentation: 

• Copy or image of the production invoice for the affected product, issued in the Client’s name.
• Signed and valid Declaration of Production Values (Annex A), if applicable.
• Evidence of the incident:

• Photographs of the damaged product, packaging, or logistics documents.

• Screenshots from the system (WMS, deliveries, etc.).

• Operational reports or logs, if available.

• Proof of insurance coverage for the product or service, if the claim corresponds to a case with a contracted policy.

How long does KIKI take to respond to a claim?

Once the claim and all required documentation have been received, KIKI LATAM will issue an initial response within a maximum of five (5) business days, indicating:

• That the case has been received and is under evaluation.
• Whether additional information is required to proceed with the analysis.

The final resolution of the case (approval, rejection, or partial compensation) will be communicated within a maximum of twenty (20) business days after receiving all the required information, unless the case requires validation with the insurer or an extraordinary review. In such cases, the Client will be informed of the estimated additional time.

How long does it take to process payment for an approved claim?

Once the claim has been approved, the compensation or credit will be processed within a maximum of thirty (30) business days from the date of formal confirmation of approval. The compensation method (service credit, credit note, or monetary refund) will be determined by KIKI in accordance with its compensation modality policy.

Additional Notes

• Claims that do not meet the minimum requirements will be returned for correction before being reviewed.
• KIKI LATAM reserves the right to reject claims that are not sufficiently supported, are submitted after the deadline, or violate contractual terms.
• Under no circumstances will compensation be granted for losses based solely on subjective perceptions, undocumented estimates, or incidents not attributable to KIKI’s operations.

How are penalties and/or compensations paid?

Penalties or compensations that have successfully passed the claims process will be paid to the Client.

NOTE: If during the investigation period of the claim—or even after approval—KIKI LATAM determines that the incident, loss, and/or service failure has been resolved (e.g., the product was delivered or the merchandise recovered), the approval and/or payment process will be canceled, and no penalty or compensation will be issued.

7. General Liability Exclusions

This policy forms an integral part of the contracts entered into between the Client and KIKI LATAM and serves as the interpretative framework for resolving any claims related to service failures or damage to goods.

KIKI LATAM shall not be held liable for any compensation or indemnification when the loss, damage, or breach originates from any of the following circumstances:

• Inventory discrepancies when the unit-counting service has not been contracted. KIKI shall not be held responsible for quantity discrepancies unless the Client has previously requested a validated count from our operations team before entry into storage.
• Damages resulting from improper packaging. KIKI is not liable for crushed, deformed, or deteriorated products due to weak boxes, unsuitable materials for stacking, or insufficient protection—especially when the Client has not declared product fragility or requested special handling.
• Losses due to external errors, fraud, or manipulation. No compensation will be granted in cases attributed to external networks, unauthorized third parties, the Client’s own systems, outside logistics intermediaries, or any other source beyond KIKI’s direct control.
• Incidents arising from force majeure or unforeseen events. This includes but is not limited to: natural disasters, social unrest, vandalism, blockades, fires, hurricanes, or external structural failures not attributable to KIKI.
• Claims without traceability or valid supporting documentation. Requests without clear evidence of the incident (e.g., logs, photos, documents, system screenshots), or those submitted after the deadline, will not be accepted.
• Prohibited or improperly declared products. KIKI assumes no responsibility for goods that violate transportation laws, are restricted by regulation, or were not properly declared in the value declaration form.
• Products without a valid production invoice. KIKI will not be held liable for losses, damage, or claims on products whose production invoice was not issued in the Client’s name or cannot be presented as valid evidence during the claim process.
• Duplicated or reopened claims. Once a claim has been resolved and approved (in full or partially) and the respective compensation has been issued, the case will be considered closed and may not be reopened or modified.
• Failed delivery attempts. The Client acknowledges that delivery attempts are a commercial benefit offered to improve delivery success rates and not a contractual obligation. Therefore, KIKI shall not be held liable if only one delivery attempt is made, unless otherwise agreed in writing.
• Incorrect COD amounts entered from the origin. Due to the automated order dispatch process, it is not possible to stop an order to change the amount to be collected once it is entered. Therefore, such errors are not subject to claim.

8. General Insurance Conditions

KIKI LATAM offers Clients an optional insurance service to cover risks associated with merchandise distribution and cash-on-delivery (COD), subject to the following conditions:

• Explicit agreement required: Coverage only applies if the Client has formally requested the insurance at the beginning of operations or before the entry of a new batch of orders. If not explicitly requested, the Client will be deemed to assume the risk.
• Insurance cost: The per-order insurance fee will be specified in KIKI’s formal commercial proposal. If not specified there, it will appear in the corresponding invoice.
• Applicable coverage:

• Transportation: Loss or damage to goods during the journey from the fulfillment center to the final recipient.

• COD Collection: Loss of cash during delivery, due to theft or documented misplacement.

• Storage not covered: The insurance offered by KIKI does not cover incidents during storage. Clients who wish to protect their stored goods must contract a separate policy. KIKI will not be held liable for damages, losses, fires, or other events affecting goods in storage unless otherwise agreed in writing.
• Limits and conditions: The maximum indemnity amounts and policy activation requirements will be governed by this policy and detailed in the commercial or contractual documentation signed with the Client.

9. Publication, Updates, and Validity

This Service Levels and Indemnification Policy forms an integral part of the contracts signed between KIKI LATAM and its Clients and shall be deemed accepted by the Client from the moment they contract any of the services offered by KIKI.

This policy is permanently available on the official KIKI LATAM website (www.kikilatam.com), and includes a public version history that allows Clients to consult its updates, effective dates, and applicable modifications.

KIKI LATAM may update, modify, or supplement this policy at any time, in accordance with changes in its operations, applicable regulations, or logistics industry practices. Any modification will be published at least five (5) business days prior to its effective date and shall be deemed accepted by the Client if they continue using KIKI’s services after the updated version has been published.

Version 1.1 – August 6, 2025

Annex A Here