Yes, our software provides granular control to organizations and their counsel to accept or reject any proposed investor or investment, and to implement various requirements or restrictions. The investment process can also be paused or stopped at any time, and restarted thereafter.
Fairmint software enables defining limits to automatically enforce various laws or restrictions like requiring verification of accreditation, stopping an attempted transfer that would result in more than 2,000 investors, and prohibiting investments from certain sanctioned countries.
Nevertheless, issuers and their counsel should understand that, while our technology can programmatically prohibit certain activity “on chain” as it relates to the blockchain networks and applicable digital assets, Fairmint software may not account for violative activity that happens “off chain”. For instance, if an investor has fraudulently represented that they are purchasing and holding the asset in a digital wallet on their own behalf and instead represents a consortium of individuals that causes the company to exceed a statutory holding limit, our software could not account for that. That said, this same risk is endemic to all traditional financings as well, and we believe Fairmint provides some additional level of protection relative to traditional “paper” investments by ensuring many restrictions are programmatically enforced.