When you activate nearby mode, your client sends location data to our servers. This data is encrypted during transportation and will be decrypted and stored on the server until you deactivate nearby mode or disconnect. The location data is processed to temporarily connect you with other users close to you, who also have the nearby mode activated.
In Nearby mode you can participate in conversations without actually being friends with these users. Your location data will be deleted from our servers as soon as you leave nearby mode.