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 a Simple Agreement for Future Tokens (SAFT) that outlines the terms for an investment in a blockchain startup, specifying the amount invested, the conversion rate to tokens upon network launch, and compliance with Canadian securities regulations. The agreement should include provisions for investor rights, token distribution timeline, and conditions under which the investment may be refunded.
What is a Simple Agreement for Future Tokens?
A Simple Agreement for Future Tokens (SAFT) lets blockchain companies raise funds by promising investors future cryptocurrency tokens once their network launches. It's similar to buying concert tickets before the venue is built - you pay now for something you'll get later. In Canada, SAFTs typically qualify as securities under provincial regulations.
These agreements help Canadian crypto startups secure early funding while staying compliant with securities laws. The tokens only get distributed when the blockchain platform becomes functional, giving investors a chance to support promising projects before they go live. Companies must file the right documentation with regulators like the Ontario Securities Commission and follow strict disclosure requirements.
When should you use a Simple Agreement for Future Tokens?
Use a Simple Agreement for Future Tokens when your blockchain startup needs early-stage funding but your digital tokens aren't ready for distribution yet. This agreement works perfectly for Canadian tech companies developing new cryptocurrency platforms who need capital during their development phase.
SAFTs make the most sense when you have a clear timeline for launching your blockchain network and want to attract sophisticated investors while staying compliant with Canadian securities laws. They're particularly valuable when your project requires significant development time - typically 6-24 months - before the platform can go live and generate actual tokens.
What are the different types of Simple Agreement for Future Tokens?
- Basic SAFTs focus on a simple token-for-cash exchange, typically used by early-stage blockchain startups
- Milestone-based SAFTs release tokens in phases as the project hits specific development targets
- Hybrid SAFTs combine token rights with traditional equity or revenue-sharing features
- Regulatory-focused SAFTs include extra compliance provisions for working with Canadian securities regulators
- Industry-specific SAFTs add specialized terms for sectors like DeFi, gaming, or enterprise blockchain applications
Who should typically use a Simple Agreement for Future Tokens?
- Blockchain Startups: Tech companies developing new cryptocurrency platforms use SAFTs to secure early funding while building their networks
- Accredited Investors: High-net-worth individuals and investment firms who provide capital in exchange for future token rights
- Securities Lawyers: Draft and review agreements to ensure compliance with Canadian securities regulations
- Compliance Officers: Monitor ongoing adherence to SAFT terms and regulatory requirements
- Provincial Regulators: Oversee SAFT offerings to protect investors and maintain market integrity
How do you write a Simple Agreement for Future Tokens?
- Project Details: Document your blockchain platform's technical specs, development timeline, and token distribution mechanics
- Investor Information: Gather accredited investor credentials and KYC documentation as required by Canadian securities laws
- Token Economics: Define token pricing, vesting schedules, and total supply calculations
- Risk Disclosures: List potential project risks, regulatory uncertainties, and market factors
- Compliance Check: Review provincial securities requirements and ensure your SAFT meets all disclosure obligations
- Platform Generation: Use our system to create a customized, legally sound SAFT that includes all required elements
What should be included in a Simple Agreement for Future Tokens?
- Token Rights: Clear terms defining future token allocation, pricing, and delivery conditions
- Investment Terms: Purchase amount, payment method, and investor qualification requirements
- Project Milestones: Specific development targets and corresponding token distribution timeline
- Risk Disclosures: Comprehensive statement of project risks and regulatory uncertainties
- Termination Clauses: Conditions for agreement cancellation and fund return procedures
- Compliance Provisions: Securities law requirements and investor verification protocols
- Governing Law: Specification of applicable Canadian provincial jurisdiction
- Dispute Resolution: Arbitration or litigation procedures for resolving conflicts
What's the difference between a Simple Agreement for Future Tokens and a Simple Agreement for Future Equity?
A Simple Agreement for Future Tokens (SAFT) differs significantly from a Simple Agreement for Future Equity (SAFE), though both are fundraising tools for early-stage companies. While they share similar structures, their underlying assets and regulatory frameworks are quite different.
- Asset Type: SAFTs promise future cryptocurrency tokens, while SAFEs convert to company equity shares
- Regulatory Framework: SAFTs fall under cryptocurrency and securities regulations, whereas SAFEs primarily deal with traditional securities laws
- Investment Timeline: SAFTs typically convert when the blockchain platform launches, but SAFEs convert during equity financing rounds
- Risk Profile: SAFTs carry additional technical and regulatory risks specific to cryptocurrency projects, while SAFEs face standard startup investment risks
- Target Market: SAFTs are used exclusively by blockchain companies, but SAFEs work for any startup seeking early investment
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.