Legal Setup

AmFi does not participate directly in the negotiation or offerings of any financial asset. AmFi only provides the infrastructure and tools for Originators to create AmFi Pools, according to their own borrower network and business model, as well as a seamless path for investors to receive interest-bearing tokens backed by financial assets on the blockchain.

It is the Originator’s responsibility to follow the off-chain legal structure, according to AmFi tailored framework for deal making. Below is an overview of this structure:

  • Onboarding: Borrowers must sign a statement of awareness of the risks linked to the discount process structured by the Originator, notwithstanding the statements and documents provided with the Originator. In addition, as mentioned previously, the Borrower must send to AmFi documents and information such as: (i) full qualification; (ii) full address; (iii) country of residence or headquarters.

    • Responsibility: the Originator is responsible for risk and credit analysis. AmFi receives information and documents for the purpose of identifying the Borrower through its KYC process. AmFi does not interfere with the relationship between the Borrower and the Originator, other than in strict compliance with the pool rules.

  • Tokenization: once the real-world asset (RWA) to be used as collateral is assessed, it must be transferred (assignment agreement) to a special purpose vehicle (”SPV”) structured by the Originator and then to AmFi.

    • Responsibility: the Originator is responsible for identifying the target financial asset and structuring the operation according to the AmFi framework. AmFi will assess the legal structuring, but all costs are incurred by the Originator. Regarding the financial asset, the Originator must submit all documentation and information with the formalization to AmFi and formalize standard documents provided by AmFi Pools. Once the conditions of the pool are met, the asset is tokenized.

  • Pool & Originator: as foreseen in the framework provided to the Originator and according to the information that must be submitted to AmFi, there is minimal basic information that the Borrower must provide in order to access capital. The Originator may request additional information and documents from the Borrower to proceed with risk and credit analysis and/or more extensive KYC analysis.

    The Originator may recognize delinquencies and defaults in the AmFi Pool after trying all available enforcement options. The collection process will the executed by the Originator, in accordance with the framework provided by AmFi. The Originator will be penalized if the defaults exceed the maximum allowed limit or pool parameters are not met.

  • Pool & Borrower: the Borrower is responsible for the information provided to AmFi and is subject to sanctions both administrative and financial in case of dishonesty or fraud as applicable.

This section of the whitepaper was originally written in Portuguese. For regulatory and legal purposes, the Portuguese version shall prevail.

Last updated