Investor onboarding

Svim Finance structures the process of onboarding investors and providing capital to a tokenized real-world asset into several key steps. This ensures compliance with regulatory standards, security, and efficient capital allocation. Svim Finance works closely with our strategic partners and professional service providers to complete the process. Here’s a detailed overview of the steps:

Investor profile:

• Account setup: The first step for a liquidity provider is to create an account on the tokenization platform. This involves providing basic personal or corporate information, contact details, and agreeing to the platform’s terms of service.

• Platform familiarization: New investors are encouraged to familiarize themselves with the platform’s interface, features, and investment opportunities. Many platforms offer tutorials, webinars, and customer support to assist with this process.

Compliance checks (KYC/KYB/AML):

• Know Your Customer (KYC): Individual investors must complete KYC procedures, which involve verifying their identity through government-issued IDs, proof of address, and other personal information.

• Know Your Business (KYB): Corporate entities must undergo KYB checks, which include providing business registration documents, details about key executives, and financial statements.

• Anti-Money Laundering (AML): Both individual and corporate investors must comply with AML regulations. This involves screening against global watchlists, monitoring transactions for suspicious activity, and ongoing compliance checks.

Investor accreditation:

• Accreditation verification: The platform verifies the investor’s accreditation status. Accredited investors typically meet certain income or net worth thresholds, as defined by regulatory bodies. This ensures that only qualified investors participate in higher-risk investment opportunities.

• Documentation submission: Investors may need to submit financial documents, such as tax returns, bank statements, or certification from a licensed financial advisor, to prove their accreditation status.

Wallet whitelisting:

• Digital wallet setup: Investors need to set up a digital wallet compatible with the platform’s blockchain. This wallet will be used to hold the tokens representing their investment.

• Wallet whitelisting: The investor’s wallet address is whitelisted by the platform, allowing it to interact with the protocol. This step enhances security by ensuring only verified wallets can participate in transactions.

Capital allocation:

• Funding the wallet: The investor transfers capital to their whitelisted wallet. This can be in the form of stablecoins (such as USDT, USDC, or DAI) or other accepted cryptocurrencies.

• Investment selection: Investors browse the platform’s available tokenized real-world assets and select the opportunities that match their investment strategy. Detailed information about each asset, including valuation, risk profile, and expected returns, is provided to aid decision-making.

• Token purchase: Investors allocate their capital by purchasing tokens representing the chosen real-world assets. Smart contracts facilitate the transaction, ensuring transparency and security.

• Liquidity provision: In addition to direct investments, investors can provide liquidity to the platform’s liquidity pools. This involves depositing capital into a pool that supports the trading of tokenized assets. Liquidity providers earn fees and incentives based on the pool’s activity and performance.

Additional considerations:

• Ongoing compliance: The platform continuously monitors investor activity to ensure ongoing compliance with regulatory standards. This includes periodic KYC/AML checks and transaction monitoring.

• Risk management: Investors are advised to diversify their investments across multiple tokenized assets to mitigate risk. The platform may offer tools and resources to help investors assess and manage their risk exposure.

• Reporting and transparency: Regular reports are provided to investors, detailing the performance of their investments, pool activity, and any relevant updates. High transparency ensures that investors are well-informed about their holdings and the platform’s operations.

• Customer support: Dedicated customer support teams are available to assist investors with any questions or issues they may encounter during the onboarding process or throughout their investment journey.

By following these comprehensive steps, liquidity providers can securely and efficiently onboard and allocate crypto capital to Svim Finance tokenized real-world asset liquidity pools, contributing to the growth and stability of the ecosystem while enjoying the following benefits:

• Stable and Sustainable Yield: Investing in tokenized real-world assets offers a more stable and predictable yield compared to the often volatile crypto assets.

• Low-Stress Passive Income: Liquidity providers earn passive income through transaction fees and interest payments without active management.

• Diversification of On-Chain Volatility: Including real-world assets in a portfolio helps diversify risks associated with on-chain volatility, enhancing overall portfolio stability.