Create a bespoke document in minutes, or upload and review your own.
Get your first 2 documents free
Your data doesn't train Genie's AI
You keep IP ownership of your information
Simple Agreement for Future Tokens
"I need an agreement for future tokens with a vesting schedule of 18 months, a total token allocation of 10,000 tokens, and a 6-month cliff for a blockchain startup."
What is a Simple Agreement for Future Tokens?
A Simple Agreement for Future Tokens (SAFT) is a legal contract that helps Australian blockchain startups raise funds before launching their digital tokens or cryptocurrencies. It works like a promise: investors provide capital now, and in return, they'll receive tokens once the network goes live and meets regulatory requirements.
Under Australian securities law, SAFTs are designed to comply with sophisticated investor rules and ASIC guidelines. They protect both parties by clearly setting out token delivery conditions, investor rights, and project milestones. Think of it as a bridge between traditional investment structures and the emerging crypto ecosystem - but with proper legal safeguards built in.
When should you use a Simple Agreement for Future Tokens?
Consider using a Simple Agreement for Future Tokens when your Australian blockchain startup needs to raise capital before launching its digital token platform. This agreement works perfectly for early-stage projects where you have a clear technical roadmap but need funding to develop the underlying technology and infrastructure.
The SAFT becomes especially valuable when dealing with sophisticated investors under ASIC guidelines. It helps structure your fundraising legally while protecting both parties through the development phase. For maximum benefit, use it during your pre-sale period when you need to formalize investment terms but your tokens aren't ready for immediate distribution.
What are the different types of Simple Agreement for Future Tokens?
- Standard Token Distribution: The basic Simple Agreement for Future Tokens structure includes token pricing, distribution timing, and vesting schedules for Australian investors
- Project Milestone-Based: Links token distribution to specific development achievements, protecting investors while giving startups flexibility
- Regulatory Compliance Focus: Emphasizes ASIC requirements and sophisticated investor provisions for Australian markets
- Multi-Round Structure: Accommodates different investment rounds with varying token prices and terms
- Hybrid Rights: Combines token rights with traditional equity-like features for added investor protection
Who should typically use a Simple Agreement for Future Tokens?
- Blockchain Startups: Tech companies developing token-based platforms use Simple Agreement for Future Tokens to structure their pre-launch fundraising
- Sophisticated Investors: High-net-worth individuals and investment firms who meet ASIC's requirements for participating in token pre-sales
- Legal Counsel: Cryptocurrency-focused lawyers who draft and review SAFTs to ensure compliance with Australian securities laws
- Project Developers: Technical teams responsible for meeting development milestones tied to token distribution
- Corporate Advisors: Financial specialists who structure token offerings and help negotiate terms
How do you write a Simple Agreement for Future Tokens?
- Project Details: Document your token's technical specifications, distribution mechanism, and development timeline
- Investment Terms: Define token pricing, vesting schedules, and distribution triggers that align with ASIC requirements
- Investor Verification: Gather proof that participants meet sophisticated investor criteria under Australian law
- Risk Disclosures: List potential project risks, regulatory uncertainties, and market factors affecting token value
- Technical Milestones: Outline specific development goals that must be met before token distribution
- Legal Framework: Our platform helps ensure your SAFT includes all required elements while maintaining compliance with Australian securities laws
What should be included in a Simple Agreement for Future Tokens?
- Token Details: Clear description of the future tokens, including rights, features, and technical specifications
- Investment Terms: Purchase price, total investment amount, and conditions for token delivery
- Qualified Status: Declarations confirming sophisticated investor status under Australian securities law
- Distribution Triggers: Specific conditions and timelines for token release and network launch
- Risk Disclosures: Comprehensive outline of project, regulatory, and market risks
- Governing Law: Explicit statement of Australian jurisdiction and applicable regulations
- Termination Rights: Conditions for agreement cancellation and refund procedures
What's the difference between a Simple Agreement for Future Tokens and a Simple Agreement for Future Equity?
The Simple Agreement for Future Equity (SAFE) and Simple Agreement for Future Tokens (SAFT) serve similar fundraising purposes but operate in different contexts within Australian law. While both help early-stage companies raise capital, they differ significantly in their application and outcomes.
- Asset Type: SAFTs promise future cryptocurrency tokens, while SAFEs convert to company equity shares
- Regulatory Framework: SAFTs fall under cryptocurrency and digital asset regulations, whereas SAFEs operate within traditional corporate law
- Investment Structure: SAFTs typically involve token delivery upon network launch, while SAFEs convert during equity funding rounds
- Risk Profile: SAFTs carry additional technological and regulatory risks specific to blockchain projects, unlike SAFEs which mainly involve standard business risks
- Investor Rights: SAFE holders gain potential shareholder rights, while SAFT holders receive utility or security tokens with different usage rights
Download our whitepaper on the future of AI in Legal
ұԾ’s Security Promise
Genie is the safest place to draft. Here’s how we prioritise your privacy and security.
Your documents are private:
We do not train on your data; ұԾ’s AI improves independently
All data stored on Genie is private to your organisation
Your documents are protected:
Your documents are protected by ultra-secure 256-bit encryption
Our bank-grade security infrastructure undergoes regular external audits
We are ISO27001 certified, so your data is secure
Organizational security
You retain IP ownership of your documents
You have full control over your data and who gets to see it
Innovation in privacy:
Genie partnered with the Computational Privacy Department at Imperial College London
Together, we ran a £1 million research project on privacy and anonymity in legal contracts
Want to know more?
Visit our for more details and real-time security updates.
Read our Privacy Policy.