Nature of SAFTs (Simple Agreement for Future Tokens)
What is a Simple Agreement for Future Tokens (SAFT)?
A simple agreement for future tokens (SAFT) is a security issued for the eventual transfer of digital tokens from cryptocurrency developers to investors.
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Because SAFTs are considered securities, these tokens must comply with securities regulations.
A simple agreement for future tokens (SAFT) for use in connection with a private placement of the right to receive tokens in reliance on exemptions from the requirement to prepare and file a prospectus, typically pursuant to National Instrument 45-106 - Prospectus Exemptions. The agreement includes a form of cover sheet with subscription instructions for investors. This Standard Document has integrated notes with important explanations and drafting and negotiating tips.