Security Token Exchange & Compliance
1. Process for Exchanging $FFA Tokens for Security Tokens:
Upon achieving the hard cap, $FFA tokens staked on a film project are converted into security tokens. The ratio of conversion is predefined based on the projectβs tokenomics and funding structure.
Security Token Features: These tokens represent profit-sharing rights in the film, providing investors with a percentage of the filmβs revenue.
2. KYC/AML Compliance at the Time of Exchange:
All investors are required to complete KYC/AML verification through the platformβs integrated compliance module, ensuring adherence to global securities regulations.
Verification is conducted at the time of security token conversion, making it seamless for backers to move from utility token staking to formal ownership of film-specific equity.
3. Ensuring Investor Protection and Regulatory Compliance:
The partnership with Digishares ensures that all security token offerings comply with relevant securities laws, providing a legally sound framework for tokenized investments.
FilmFund.io also implements strict data protection and smart contract auditing to safeguard user assets and maintain investor confidence.
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