04InvestorsInvesting in a raise

One price.All or nothing.

Fixed price, all-or-nothing escrow, refunds and the accredited route.

Every raise has one price, usually 1.00 USDC per token, set from the company's committed profit and a target yield. It has a minimum, a maximum and a deadline. Investors commit USDC to escrow; nothing reaches the company unless the minimum is met.

Recorded on Stellar testnet
Commit 100 USDC to a raise: Add money swaps test XLM for Circle's testnet USDC, then one signature moves it into escrow.
  1. 01
    Check the terms
    Profit committed, target yield, the exemption, the minimum ticket, the holder cap, the lock-up date and who holds the compliance role are all on the raise page, read from the contract.
  2. 02
    Commit USDC
    The wallet is screened against OFAC's sanctions list, then invest moves USDC into the offering contract. The contract checks eligibility for the raise's exemption, the minimum ticket and the holder cap.
  3. 03
    The raise closes
    Once the raise is full or past its deadline, anyone can call finalize. If the minimum was reached the company receives everything raised; if not, refunds open.
  4. 04
    Claim tokens or a refund
    claim_tokens mints exactly contribution ÷ price. It is the only way tokens are ever minted. During a lock-up they go straight into the dividend vault.
Recorded on Stellar testnet
The raise is full, so the company closes it straight away and receives the money. The investor then claims tokens, which go into the dividend vault during the lock-up.
On-chain
  • Escrow lives in the offering contract. It has no admin withdrawal path.
  • The offering is the share token's SAC admin, so it alone can mint. After the raise, supply is fixed.
  • claim_tokens creates the share token trustline and authorizes it in the same call.
Legal
  • All-or-nothing protects investors from funding a business that couldn't raise what it needs.
  • The investor confirms they are outside the US (Reg S) or signs an accreditation statement (506(c)).
  • Expected dividends are estimates from last year's profit and aren't guaranteed.

The accredited route (506(c))

For raises that accept accredited investors, an investor can qualify in one of two ways:

  • Verified. An accreditation verifier named by the raise attests on-chain (attest_accredited). On testnet, dvdnd's key stands in for a verification service.
  • High minimum. The investor signs an accreditation statement (self_certify, its hash on-chain, as a person or an entity) and invests at least 200,000 USDC, or 1,000,000 USDC for an entity.