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Dictionary by pitch.dog
Funding instruments & exemptions · Specialist

Simple agreement for future tokens

Also called: SAFT

ELI5

An investment contract for tokens that may be issued later.

Used in conversation

“The SAFT structure does not remove securities-law risk.”

Definition

A contract promising future digital tokens under specified conditions; legal and regulatory risks are significant.

Here “Simple agreement for future tokens” means: A contract promising future digital tokens under specified conditions; legal and regulatory risks are significant.

Pitch context

You will see “Simple agreement for future tokens” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches funding instruments & exemptions.

Why it matters: In funding instruments & exemptions, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

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Sources & evidence · 5

Direct term-level sources and supporting source families.