Investors

Definition: Investors, also known as liquidity providers, are individuals or entities that supply capital to the liquidity pool. This capital is used to fund loans secured by tokenized real-world assets.

Explanation: Investors contribute stablecoins or other cryptocurrencies to the liquidity pool, enabling the pool to provide loans to borrowers who collateralize their real-world assets. In return, investors earn yields based on the interest paid by borrowers and potentially other rewards from the protocol.

Who They Are:

• Individual Investors: Retail investors who seek to diversify their portfolios by investing in tokenized real-world assets.

• Institutional Investors: Entities such as venture capital firms, private equity funds, and other institutional players that invest significant capital into the pool for stable returns.

• Crypto-native Investors: Holders of cryptocurrencies, including stablecoins, who want to allocate their assets into real-world investments to earn passive income.

• Investment Funds: Organizations that manage pooled funds from multiple investors, seeking diversified and stable returns by investing in real-world assets.

What They Do:

• Provide Liquidity: Supply capital to the liquidity pool, which is used to issue loans to borrowers.

• Earn Returns: Receive yields from the interest paid by borrowers, as well as other possible incentives such as protocol-native tokens.

• Monitor Investments: Utilize tools and dashboards provided by the protocol to track the performance of their investments and the overall health of the liquidity pool.

Responsibilities:

• Accurate Information: Provide truthful and accurate information during the KYC (Know Your Customer), KYB (Know Your Business), and investor accreditation processes.

• Compliance: Adhere to all legal and regulatory requirements, as well as the terms set forth by the tokenization protocol.

• Due Diligence: Conduct their own due diligence to understand the risks associated with their investments and the underlying assets.

• Risk Management: Make informed investment decisions, understanding that all investments carry inherent risks.

Consequences of Misbehavior:

Providing False Information: If an investor provides false information or fake documents during the KYC, KYB, or investor accreditation processes:

• Loss of Access: The investor may be banned from the platform and lose access to their accounts.

• Legal Action: The investor could face legal consequences, including fines and other penalties, depending on the jurisdiction and severity of the infraction.

• Asset Seizure: Any assets held within the platform may be seized or frozen pending investigation.

By participating in the protocol, investors acknowledge and accept these responsibilities and potential consequences, understanding that the integrity of the platform and the security of the investment ecosystem depend on all participants adhering to these standards.