Example LP fund Structure

Chateau Example Fund LP structure

The following is an example of how due diligence and compliance is conducted for the issuance of LP Fund GELT.

  1. LP Fund Shares are scrutinized and owner is authenticated as true owner with valid assignment/sale rights. All necessary due diligence is completed through manual processes, including detailing communications of and with administrators/servicer for the fund.

  2. Forward purchase agreements are sent to seller. Contracts and copies of underlying documentation are warehoused in a Bermuda Master Fund. Supplementary liquidity vehicles are offered optionally, whereby the instrument-asset offerors can provide supplemental liquidity to potential buyers via a repurchase or loan agreement for the underlying instrument to the fund.

  3. Shares prices, Bids/Offers are established directly with customer/seller and prices are listed for origination with seller facing platform. (The customer portal also allows buyers to provide outstanding offers.) A limited company is created in British Virgin Islands (BVI) containing a Master Swap Agreement with the contract warehouse. The swap agreement, with bespoke schedules, details the ongoing relationship between the vehicles, with records kept for each new token origination of a real world asset. These contracts will be put onchain as part of ERC-1155 issued correspondingly.

  4. Chateau creates a British Virgin Islands Special Purpose Vehicle (BVI SPV) for each new token series, instantly upon sale and simultaneous issuance of buyer facing tokens. The SPV stipulates contract warehouse obligations and liabilities as per each issuance detailed by schedule.

  5. Stable coins are received from purchaser by the BVI limited company and passed through to the seller. Forward Purchase Agreements held by the contract warehouse are consummated with seller signing of ownership for underlying contract collateral.

  6. Depending on the type of RWA/Product line or liquidity vehicle contracts, some seller obligations may remain outstanding to the BVI SPV, and serviced by, the contract warehouse, until they terminate.

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