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How Does a ‘Simple Agreement for Future Tokens’ (SAFT) Work?

A SAFT is a legal contract used for fundraising by pre-selling tokens to accredited investors before the token network is launched. The investors provide capital now, and in return, they receive the future tokens once the network is live and operational.

It is structured to comply with securities laws by treating the initial investment as a security, while the future utility token is not.

Why Does the SEC Restrict Unregistered Securities Sales to Accredited Investors?
What Are the Risks of Including Non-Accredited Investors in a 506(B) Offering?
What Is the ‘Delivery Period’ for Physically Settled Futures Contracts?
What Are the Main Differences between Regulation D Rule 506(B) and 506(C)?