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At TARS, everyone can effortlessly draft an on-chain proposal for the deal including all key terms with the counterparty (token buyer/seller), which is called Smart SAFT. At TARS, Smart SAFT is referred to as SAFT for convenience.
As we know, projects secure funds in the early stages through mutually signed legal documents called Simple Agreement for Future Tokens (SAFT). Compared with traditional SAFT legal documents, Smart SAFT provides effective constraints and security through smart contracts and protection for the crypto users' investment in the primary market on Web3.
If you want to launch Smart SAFT, make sure you already have a Space at TARS, otherwise you need to create one first:
- Navigate to Dashboard > My Space > Create Space to create a Space at TARS.
- Navigate to Dashboard > My Space > New SAFT to launch Smart SAFT.
As the proposer of the deal, the Space Owner needs to fill out the form in the popup to successfully launch the Smart SAFT, total three sections including Project Info, Token Info and Fundraising Detail.
Project Info section includes SAFT Name, Project Logo Link, Project Website, Project Twitter, and Description. All fields are required and all links in this section require a complete URL (https://).
Token Info section includes Project Token Address, Token Symbol, Token Decimals, Token Provider Wallet Address, Token Vesting Schedule, and Token Audit Report. The Project Token Address and Audit Report are optional and allowed to be filled out after the SAFT is created, while the rest are required.
Token Provider Wallet Address should be provided by the Token Provider, that is, the token seller, which usually refers to the project party. Token Provider can only use this wallet address to log in and transfer the corresponding project tokens to the Smart SAFT Contract to claim the balance of the total final fundraising amount (after deducting the commission). Token Provider Wallet Address should be the same blockchain network (e.g., Ethereum) as the Smart SAFT Contract.
Token Vesting Schedule is just a textual announcement here and will be displayed on the SAFT deal page, but not be executed by the Smart SAFT Contract. It will be automatically covered by the finalized “Claim Rules” that the Space Owner enters on the SAFT deal page.
Fundraising Detail section includes Fundraising Type, Swap Currency, Fundraising Hard Cap, Commission Rate, Price Per Token, Fundraising Start/End, and SAFT Expiration Time. All fields are required and there’ll be additional 2 required fields, including Investment Lower/Upper Limit Per User when Public Type is chosen. For the details about different Fundraising Types, please refer to the document below.
Please make sure that the time you set conforms to the following rules:
Fundraising Start Time < Fundraising End Time < SAFT Expiration Time.
SAFT deal page will be created once the Space Owner has successfully launched Smart SAFT, which will display all key terms and details of the deal, including project info, token info, and fundraising details. All counterparts (token buyer/seller, and proposer) will participate in the deal on the SAFT deal page.
In order to complete the deal, the Token Provider is expected to transfer project tokens to the Smart SAFT Contract after the Fundraising End Time and before the SAFT Expiration Time. When the Token Provider fails to transfer the project tokens to the Smart SAFT Contract after the Fundraising End Time and before the SAFT Expiration Time, the Smart SAFT Contract will determine that the deal has failed.
In addition, the premise that the Token Provider could transfer the project tokens is that the Space Owner has confirmed that the Project Token Address and Token Claim Rules have been entered.
Once the deal fails, all investors can claim a 100 % refund. Therefore, by using Smart SAFT for investment in the primary market, token buyers/investors will not have to worry about the risk caused by token sellers/project parties not distributing tokens as agreed.
There are 5 statuses in Smart SAFT according to the deal progress as follows:
- Upcoming. The SAFT is just created, and it’s before the Fundraising Start Time.
- Fundraising. It's the fundraising window period. Users (whitelist) are allowed to invest.
- Fund Raised. The fundraising is over, but the Token Provider hasn’t transferred the project tokens to the Smart SAFT Contract. And it’s before the SAFT Expiration Time
- Completed. The fundraising is over and the Token Provider has transferred the project tokens to the Smart SAFT Contract successfully, which means the deal is done.
- Terminated. It’s after the SAFT Expiration Time but the Token Provider still hasn’t transferred the project tokens to the Smart SAFT Contract, which means the deal failed. Investors can claim refunds.
Users can search for SAFTs in the corresponding status by navigating to Dashboard > My Joined.