Details of the SPV structure?

investments

#1

Hi,

Could you tell us the details of the SPV structure, i.e. how the equity is linked to the token? How does the legal structure work exactly? This would be pretty relevant for investors and issuers I think, because this could potentially be the “weak link” of the structure. (Not saying it doesnt work, just trying to understand the details to eliminate any risk.)

Thanks!


#2

Hi, great question! When you invest into a tokenized asset or project, you receive a token which represents your fractional ownership of an SPV, and protected by the Token Purchase Agreement you see on the platform. This SPV is a typical legal structure (for example, an LLC) which has a position in the underlying asset, verified by an LP contract. This means that even if Swarm disappeared tomorrow, the relationship between you and the underlying asset persists, meaning that you continue to have legal fractional ownership of it.