Legal structuring
The following legal structure is for reference purposes only. As a protocol participant, you are responsible for complying with relevant laws and regulations in your jurisdiction. Your are encouraged to consult you own tax and legal counsels.
A legal structure set up by Untangled Finance Limted
- 1.Issuer SPV issues tokens to Investors under US Reg D 506c. Both Issuer SPV and Asset SPVs are Series of Up Series LLC (Delaware)
- 2.Originator sells participation interests to UP Series 2 (Asset SPV)
- 3.Originator (or other investors) subscribe to junior tranche/retain junior interest in the assets
- 4.Asset SPV borrows from Issuer SPV using eligible assets as collateral.
- 5.Originator repay participation interests + interest directly to SPV’s locked box (bank account or wallet)
- 6.Asset SPV repay principal + interests to Issuer SPV
- 7.Issuer SPV makes redemption to Investors
- 8.Asset SPV redeems junior tranche to Originator