Frequently Asked Questions
What is a SAFT?
A SAFT is a “Simple Agreement for Future Token” which is a contract for the purchase of a token that has not yet been released or created. A SAFT is an SEC exempt security allowing for the future sale of non-security app tokens. The SAFT is like a forward contract, obligating the seller to deliver tokens by a certain date and the agreement typically details terms such as launch date, investor discount rate and minimum and maximum investment amounts. A SAFT is similar to the SAFE (Simple Agreement Future Equity) commonly used by technology startups.
What do I own when buying a SAFT?
When buying a SAFT, you own the right to receive tokens of the issuer on a future date subject to any limitations that are detailed in the SAFT itself.
How do I purchase a SAFT?
SAFTLaunch.com provides everything you need to enter into a SAFT agreement with a SAFT issuer. You will easily be able to review the list of current live deals on our site and choose the issuance that you like best. Then you will be able to read and sign the SAFT contract via our platform in a secured method. Once you read and sign the SAFT, we provide payment instructions on your user portal for the delivery of payment under the SAFT. Be sure to provide us with your Etherium address so the issuer can distribute your tokens.
Are SAFTs legal?
Yes, SAFTLaunch uses excellent legal advice to ensure that the SAFTs are structured to meet necessary regulatory requirements. All SAFTLaunch SAFTs file a Reg D exemption with the SEC.
What currencies can I use to buy SAFT securities?
USD and Ether.
Who can purchase a SAFT on SaftLaunch.com?
Accredited US under Rule 501(a) of Regulation D and foreign investors. who provide KYC/AML information.Investors must all pass our KYC/AML compliance review prior to entering into any SAFT agreement on our platform
Who can issue a SAFT on SAFTLaunch.com?
Issuers who pass our KYC/AML check, demonstrate a good token use case, and their seriousness to appropriately handle and use funds in accordance with their proposed plans.
How do you track the issuer's use of funds?
We require issuers to convert all crypto proceeds to the currency they expect to have expenses in. We require issuers to use an administrator to oversee expenses and spending. Issuers are required to have their own counsel to ensure compliance with any local or specific regulation or tax concerns.
How do you screen issuers?
We interview issuers and perform a rigorous due diligence review to ensure all issuers are professional issuers with promising business prospects. As professional investors, we view this as a core competency. However, it is important for each investor to make their own decisions. SAFTLaunch does not guarantee the eventual token exchange or the final product of the issuer in any way.
What about hackers?
We have a number of security procedures in place to protect our data and unintended access to our website. We have spent an incredible amount of time, effort, and money to ensure our website is a safe place to do business. We consider safety to be a core concern and competency.
What about compliance and regulations?
Regulatory compliance is a key focus of ours and we have brought the top attorneys in the industry on board to advise our process. Our background is in investing, brokerage, security and technology, and we are very familiar with the regulations around securities issuance. We go above and beyond the legal advice that we have received in order to comply with all necessary laws and regulation. For investors, we provide a safe and easy way to pre-invest in ICOs and for issuers we provide a safe and reliable platform to reach accredited investors.
Why use a SAFT?
Our lawyers tell us that ICO presales that are done before the app Token's application is ready may potentially be viewed as an unregistered sale of a security. SAFTs take the mystery out of pre-sales and limit the sale to specific approved investors in reliance on the safe harbors for private offering exemption.
What happens when SAFT holders receive tokens?
The SAFT terminates.
What happens to SAFT holders if the issuer does not issue tokens on time?
Each SAFT details the terms of the issuer's failure to issue tokens at the designated date. Please refer to each SAFT's terms and conditions.
What is the SAFTs term?
Typically 90 days, but each SAFT is different.
Why do SAFTs offer bonus tokens?
Most SAFTs offer bonuses because they require a longer waiting time and higher risk to investors.
Who is behind SAFTLaunch?
Please refer to our team bio page. To learn more, drop an email, or give us a call to chat about ICOs in general, ask specific questions, or vent your concerns. We love to chat. Especially about ICOs.
The information provided above are opinions provided as a courtesy and does not constitute legal advice. We urge you to seek your own independent legal and tax advice.