Legal

Accessing Tangible

Access to the Tangible website and dApp is restricted, and only available to residents of authorized countries. United States residents are amongst the list of blocked users.

Who owns the rights to the physical item?

As with many tokens that represent another asset, the legal ownership of the asset remains with the token issuer, and the beneficial ownership is transferred with the token. This means that the owner of the wallet that holds the TNFT is essentially the owner of the asset, and simplifies taxable events for both Tangible and Tangible’s users. It’s functionally the same as all USD-backed stable coins: the custody of the USD and legal ownership both remain with the token issuer, but the token holder can -- at any time -- enact their beneficial ownership rights and become the legal owner, by burning the stable coin and having the USD transferred to them. Tangible token holders can, at any time, become the legal holder by redeeming their TNFT, which consists of changing the status of the token and taking full possession of the physical object or, in the case of properties, the SPV.

Are Tangible TNFT goods insured?

Yes, all Tangible assets are insured.

Properties carry up-to-date property insurance.

Tangible goods, such as gold bars, are insured from purchase, initially by the supplier, then by the shipping company, then by our storage providers.

Does Tangible require KYC?

Tangible Custody will require KYC to mint or buy a new TNFT in the marketplace. Redeeming TNFTs for the underlying assets will also require KYC.

In any situation where user funds are moved off-chain for an asset purchase i.e. TNFT mint or initial purchase, this triggers the need to KYC the buyer. Similarly, when TNFTs purchased with crypto are redeemed for the underlying assets, initially acquired by Tangible via fiat, KYC must be completed.

KYC is not required to trade TNFT’s in peer-to-peer transactions via decentralized smart contracts. KYC is also not required to mint TNFTs into Basket tokens. These contracts are overseen by the realDAO and RWA token holders, not controlled by Tangible Labs or Tangible Custody.

In lay terms, any crypto-to-crypto transactions will not require KYC, but for any crypto-to-fiat or fiat-to-crypto transactions, KYC will be required.

Where KYC is required, Tangible uses the following AML/KYC procedure, described below. Our aim is to ensure customer legitimacy and prevent illegal activities like money laundering and fraud.

  1. Customer Identification and Verification through Fractal ID:

    1. Identification and Verification uses customer provided personal details and valid IDs (passport/driving license) and checks for liveness and uniqueness, ID document verification, age verification, residency verification, high-risk country checks, and PEP/Sanction list checks.

    2. Escalation Process: Cases with red flags are reviewed by a senior Onboarding Team member.

  2. Customer Due Diligence (CDD) and Enhanced Due Diligence (EDD) by Tangible:

    1. CDD Process:

      1. Information Collection: Additional info gathered through Fractal ID and Chainalysis.

      2. Risk Assessment: Based on geographic location, transaction nature, and amount.

    2. EDD Process (for high-risk customers):

      1. Additional Info: More detailed customer information, including source of wealth and funds.

      2. In-depth Risk Assessment: Detailed analysis of transaction history and financial crime connections.

      3. Ongoing Monitoring: Frequent review of transactions to manage potential risks.

Endeavoring to align with maximum compliance, all US-based IPs are blocked from accessing the Tangible front end.

Who is on the Tangible labs team?

Tangible is managed by a team of over 15 experienced crypto professionals, including:

What is Tangible’s legal structure?

re.alDAO

A protocol and a token-run decentralized autonomous organization. re.alDAO is not technically a legal entity, but rather a protocol governed by the $RWA token. The token entitles token-holders to voting and governance rights. All critical contracts in the protocol sit behind a proxy which allows the team and/or future governance votes to make updates without full redeployments. That said, all changes to the protocol, after the initial-deployment, will need to be voted on by token holders.

The protocol in this case would be defined as:

  • TNFT Smart Contracts: These smart contracts are used to produce the TNFT, an ERC-721 that represents physical assets, such as real estate and gold, on-chain. TNFT contracts grant the holder beneficial ownership over the backing assets, including the right to redeem the TNFT for the backing item at any time. Each individual property or gold bar has its own unique TNFT, representing the unique, non-fungible physical asset backing the TNFT.

  • USTB Smart Contracts: These smart contracts are used to facilitate the creation of USTB, a permissionless, rebasing, cross-chain ERC-20 stablecoin. USTB is backed 1 to 1 with USDM which is in-turn fully backed by dollar-denominated assets, primarily US treasury bills. At any time, USTB can be redeemed for an equivalent amount of USDM.

  • Basket Smart Contracts: These smart contracts allow any user to convert their TNFT into an equivalent value of Basket ERC-20 tokens, processed autonomously by smart contract. Basket tokens can be managed via the Tangible UI and are recognized as standard ERC-20 tokens on any supported chain. A portion of incoming rent accrues to RWA token holders and the realDAO, as described below.

  • Marketplace Smart Contracts: These smart contracts facilitate the exchange of TNFTs. For almost every exchange between wallets, a transaction fee is charged. (Note: Initial Sales from Tangible Custody won’t include a transaction fee.)

TNFT ltd BVI (Tangible Labs)

Tangible Labs mints and sells TNFTs and also, like Uniswap Labs, will operate as one of the main contributors to the realDAO and to the smart contracts code. Tangible Labs may not be the only contributor to the protocol and any future upgrades to the code must pass a governance vote.

BTS TNFT ltd UK (Tangible Custody)

Tangible Custody is the bridge and custodian for real world assets. Its role is purely to act as a supplier & custodian for tokenized real-world assets. It does not capture any of the fees generated by the marketplace. It simply sources goods. In some cases (such as gold), it also provides storage. In the case of real estate, the company will initially purchase the property, and – after the initial marketplace sale – will continue to maintain the property and collect rents. Collected rent will be sent monthly to the DAO, minus agent fees. The DAO will then make it claimable by the users holding those TNFTs via the protocol. Tangible Custody will also operate the Tangible front end, in the same way Uniswap Labs operates Uniswap.org.

Periods of Crisis

During periods of crisis, including hacks, financial attacks, or other threats that might compromise the security of the protocol and user funds held within the protocol, Tangible Labs maintains the right to immediately address these issues, including through the alteration of protocol code, without the consent of a DAO vote.

Non-endorsement of 3rd party protocols

Due to the permissionless nature of Tangible products formatted as ERC20 and ERC721 tokens, we expect protocols to build with these products. This does not mean an endorsement of such protocols, and users should do their own research before interacting with such protocols. Although Tangible may engage in co-marketing campaigns with other protocols, such marketing does not endorse the safe use of those platforms. It should not be seen as a guarantee of the safety of such protocols.

Tangible will not be liable for losses related to using Tangible assets in 3rd party protocols, including hacks or any other losses that could materialize.

Authentication and private keys

Users are the sole responsible for keeping their platform credentials and private keys secure. Users are also responsible for other users they share those credentials too.

Tangible is not responsible for losses arising from login credential security compromises or loss or mismanagement of private keys.

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