Smart Contract Authoring
The Hunit platform contains the tools needed to structure and write smart contract programs. Built for use by legal experts (not programmers), these interfaces simplify:
- Setting up an investment’s financial metrics
- Determining its regulatory status and configuring its autonomous compliance parameters
- Writing smart contract commitments and terms
- Authoring and associating remedies to unfulfilled commitments
- Securely storing documents associated with executing remedies for breaches
Whether on behalf of an investment bank or a law office, it is critical that legal professionals find the smart contract creation process easy and time-efficient. We’ve made this a mission-critical requirement for ourselves and our goal is for our platform to be viewed as a vital tool for the modern legal professional.
The core of our platform is our patent-pending decentralized platform for making, verifying and remedying commitments from an issuer to its investors. It allows for the creation of a wide variety of private market investment instruments that, once issued, autonomously self-manage throughout their planned lifecycle.
This technology system allows issuers and investors to safely store encrypted, permissioned data or documents in a public blockchain environment. Individual Distributed Vaults™ are tethered to specific investor commitments / remedies or to investor identities, ensuring that the data held within is only accessible to specific parties when defined conditions are met. This allows issuers to safely pre-permission legally binding remedies for unmet investor commitments and provides investors with the security that, when needed, an investment instrument has all of the data and documentation to execute upon the actions described in its smart contract. Example uses include:
- Releasing the pre-signed documents needed to remedy an unfulfilled investor commitment if and only upon verified non-compliance
- Storage of investor personal data that can only be accessed or amended upon the multi-factor authentication of the data’s owner
Our settlement platform is integrated with Sentinel System™ smart contracts and allows them to autonomously manage the flow of funds within the global banking system. This key network service is called upon when demanded by the rules defined in a smart contract and allows it to execute complex settlement structures automatically and inexpensively – whether settling an initial issuance (DVP), clearing secondary trades or distributing payments to the holders of a specific instrument. In partnership with our banking-integration provider, the settlement platform provisions virtual account (IBAN) numbers to each monetary commitment defined in a smart contract, allowing it to provide key data to the Sentinel System™ for use in verifying issuer commitments and to execute upon the movements of funds as defined in smart contracts. Example uses include:
- Receiving investor contributions during a primary issue and releasing them to the issuer upon the fulfillment of defined terms
- Distributing lump-sum payments from an issuer to its investors
- Receiving and distributing the cash result of an executed remedy-for-breach (such as the sale of an asset) to investors while also paying any applicable service provider fees related to the execution of said remedy
- Receiving and distributing issuer sales revenues (for example in the case of royalties-based financing)
Investor Identity Management
Via in-house technology combined with external partnerships, Hunit’s platform provides investor identity management tailored to the needs of markets with no centralized authority. It gives full control and ownership over personal data to the authenticated person or firm itself and serves as a portable digital identity that includes:
- Verified investor identity information (name, addresses, TINs)
- Verified accreditation status as (retail, accredited, QIB)
- Associated blockchain public keys where assets are held
- Associated bank accounts where the investor receives cash distributions from any of the smart securities it holds
All personal data is held securely in the public domain via our Distributed Vault™ technology and under the ownership and control of the owner itself. The investor determines what information it makes available to third parties. Our system also solves the dual problems of having to continually re-assert identity and the structural problem of verifying counter-party accreditation status for secondary trading of restricted instruments.
Sentinel System™ based compliance functions also query investor information (upon permission of the investor) to verify regulatory compliance in secondary trading, for participating in primary issuances and for generating automated compliance reporting. Related services:
- Know Your Customer (KYC) and Anti Money Laundering (AML) checks for on-boarding investors (retail or corporate / institutional). These are performed on behalf of our clients, which retain the primary investor relationship
- Investor identity recovery and forced-access based on a cold-storage system for investor identity private keys. Private keys can only be retrieved from cold storage upon authentication of the investor or upon court-mandated access (such as in the case of the execution of a will or seizure of assets pursuant to a legal order).
Different users of our platform have different needs and we’ve built specialized interfaces for each of these roles. Across our network, all interfaces have been built based on decentralized principles whereby user data (regardless of role) is held securely in a Distributed Vault™ and is only retrieved by a viewer upon user login. No user data is stored locally by Hunit or its clients*. We have built specialized interfaces that include:
- Investor account interface, co-branded with the client for use by its customers
- Hunit client interface, providing the tools needed by financial service providers or law offices to create and manage smart securities programs as well as their investor client base
- Specialized role interfaces for third-party service providers to specific smart contract programs, such as auditors or external agents entrusted with the execution of the off-chain remedies described in a smart contract
*Except for cold storage of private keys as needed to reestablish user access or comply with a binding legal order.