Compliance Framework

Jurisdictional Coverage

• EU (Luxembourg): Securitisation, ISIN issuance, AMC definitions

• UAE (DMCC / VARA): Platform operator compliance

• USA (Reg D / Reg CF): Investor eligibility for US participants

Global AML/KYC Standards

• Identity verification

• Fraud risk scoring

• Proof-of-funds checks (high-value investments)

• Politically Exposed Person (PEP) screening

Regulatory Advantages

• Tokenisation does not mean unregulated

• All investments flow through recognised financial structures

• Investor categories ensure appropriateness

• Transparency reduces regulatory friction

Token Lifecycle Overview

Below is a schematic of how a token evolves over time:

Startup Equity
     ↓
Transferred to SPV / Securitisation Compartment
     ↓
Token Issue (ISIN)
     ↓
Investor Purchase
     ↓ Quarterly
Founder Update → AVM Valuation → Liquidity Window
     ↓
Investment Exit (Optional)
     ↓
Final Exit Event (Acquisition / IPO / Buyback)

This cycle is repeatable, transparent, and investor-friendly.

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How TheAngel Protects Founders

• Clean cap table: founders only engage with the SPV, not each investor

• No cap table fragmentation

• SPV holds the equity → no operational interference

• Tokenisation avoids unnecessary dilution mechanisms

• Fully managed compliance and investor relations admin

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How TheAngel Protects Investors

• Bankruptcy-remote compartments

• Formalised investment notes with ISINs

• Transparency through quarterly reporting

• Legal claim over securitised assets

• Regulated fund architecture

• Smart contract safeguards

• Controlled trading environments

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Summary — Why This Legal Structure Matters

Most tokenisation projects fail because they lack compliant, recognisable legal frameworks.

TheAngel does not make that mistake.

Instead, TheAngel leverages:

• Luxembourg securitisation law

• EU regulatory protections

• Institutional-grade SPVs

• Filedgr’s management company & attestation layer

• ISIN-coded securities

• Audited smart contracts

This combination results in one of the safest, most credible tokenisation models in the early-stage investment market.