[Transparency Report] December 2022 Transparency Report

Wadiz has been publishing monthly transparency reports since August 2020. The transparency report is a report containing the reports received from Wadiz members and the measures taken in response, and is organized based on funding report data. Through this report, Wadiz publicly discloses actual data on how it responds to project issues to create a platform environment where members can trust and use with greater confidence.

1. Report Submission Data

• The number of reports received is measured based on reports received through the ‘Report’ feature on the right side of the funding project page , and if there are multiple reports about a single project, they are counted as multiple by the number of reporters. 
• The types of reports received include ‘Intellectual Property Infringement’, ‘False Information in Story’, ‘Distribution of Identical Products Through Other Channels’, ‘Community Policy Violation’, etc. composed of reasons that contradict the purpose of funding or undermine Wadiz community order.
• Report submission data represents a key indicator showing potential risks that can directly or indirectly cause supporter harm and dissatisfaction.

<December Report Submission Data>

2. Number of Projects Reported

• ‘Number of projects reported’ means the number of projects that have received one or more reports, and even if multiple reports are received, if the subject project is the same, it is counted as one.
• The proportion of reported projects compared to open projects is a key indicator representing the proportion of projects that may cause supporter harm and dissatisfaction among all projects.

<Monthly Number of Reported Projects>

3. Coming Soon Report Ratio

• ‘Coming Soon’ refers to a pre-opening service that allows supporters to preview the project story before the official funding begins.
  On the Coming Soon project page, a notification request feature is provided when the official funding opens.
• Reports at the Coming Soon stage serve as a risk pre-detection function before official project opening, enabling proactive problem resolution before the official funding launch. 

<December Coming Soon Project Report Ratio>

4. Statistics by Category of Reported Projects

• This is categorized data of projects that received reports in the current month.
• In the current month, out of a total of 17 project categories, 11 categories received reports.

<December Statistics by Category of Reported Projects>

5. Processing Results of Reported Projects

• All reports that meet the reporting requirements are undergoing fact-checking.
• For projects where issues are identified, follow-up measures are taken in accordance with the funding report policy.
• During the fact-checking process, Wadiz requests submission of maker explanations when necessary through official notices, and when necessary, the report facts and statement request contents are disclosed to supporters through news updates.

<December Processing Results of Reported Projects>

• Processing Complete
  When the fact-checking results of report contents that meet the reporting requirements are determined to be ‘problematic’ based on policy and follow-up procedures such as refund of funding, deletion of inappropriate content, or project cancellation are carried out, or when reports that meet the reporting requirements are determined to be ‘not problematic’ based on policy and are closed without follow-up procedures.
• Processing In Progress
  When fact-checking of report contents that meet the reporting requirements is in progress, or when it is determined to be ‘problematic’ based on policy and follow-up procedures are in progress.
• Processing Unnecessary
  Cases of ‘Reports Not Meeting Requirements’ or ‘Already Closed Issues’, where follow-up procedures have not been undertaken.

⁕ Reports Not Meeting Requirements: Report submissions that fail to meet reporting requirements or lack sufficient supporting evidence to proceed with follow-up procedures

⁕ Already Closed Issues: Issues that meet reporting requirements but have already undergone fact-checking in the past as of the current month, determined to be ‘no issue’ and closed, or where necessary measures have been completed through ‘project cancellation’ or ‘funding refund’, making follow-up procedures unnecessary

6. Introduction of Trust & Safety Activities

Wadiz continuously strives to establish and protect a safe funding ecosystem that users can trust. In this month, to protect ‘trust’ and‘safety’ of supporters and makers, we will introduce service monitoring activities being conducted by the Trust & Safety team. 

Wadiz service monitoring activities include "monitoring for distribution of identical products through other channels, monitoring for use outside the purpose of news updates, monitoring for funding achievement rate manipulation, monitoring for false information in stories" .

If rewards from a funding project are sold through other channels or funding is raised for the same product before the rewards are shipped, the distribution of identical products through other channels monitoring target is included.

The Trust & Safety team continuously monitors all projects in the Coming Soon and Funding stages for distribution through other channels. If signs of distribution through other channels are confirmed during monitoring, the responsible person requests the maker to explain the situation and takes appropriate measures. 

If information unrelated to the original purpose of the project (promotion of other sales channels, link guidance, etc.) is posted in news updates, the monitoring target for use of news updates outside its purpose is included.

The Trust & Safety team continuously monitors all news updates posted on projects in Coming Soon and Funding stages.
If news updates that are for promotional purposes of other sales channels unrelated to project progress are confirmed during monitoring, the responsible person requests the maker to modify or delete the relevant news update content. 

If a maker or a third party with a relationship to the maker intentionally participates in funding to increase the project's funding achievement rate, the achievement rate abuse monitoring target is included.

Wadiz restricts and considers as supporter deception the act of intentionally increasing the achievement rate by participating in funding without payment intent, and accordingly, the Trust & Safety team conducts continuous monitoring to verify projects that are proceeding with unusual patterns and determine facts.

If suspicious circumstances of false information in the project story are confirmed, the story false information monitoring target is included.

The Trust & Safety team classifies story false information monitoring targets according to internal standards and communicates with the project's maker to verify the facts related to the suspected false information and takes appropriate measures. 

Through the above proactive monitoring activities, the Wadiz Trust & Safety team aims to create a transparent and safe funding environment. In 2023, we plan to conduct monitoring with strengthened standards, and we will make efforts to create a funding ecosystem that more supporters and makers can trust. 

For any questions regarding the above content, please contact Wadiz Trust & Safety team(team.trustsafety@wadiz.kr).