How Does the Use of a Smart Contract for Fund Management Affect the Commonality Analysis?

The use of a smart contract for fund management typically strengthens the argument for horizontal commonality. Since a smart contract automatically pools investor funds and executes the pre-defined rules for distributing profits or managing the capital, it clearly demonstrates the pooling of assets and the shared fortunes of the investors.

The code itself formalizes the common enterprise structure, making it difficult for the issuer to argue that investors were engaged in separate, individual ventures.