Casten Protocol
  • Casten
    • The Need and Vision
    • Glossary of Terms
    • Protocol Ecosystem
      • Underwriters/Asset Managers
      • Borrowers
        • Creating Borrowing Pools
        • Junior and Senior Tranches
        • Origination Fee
        • Repayment motivations
      • Senior Tranche LPs
        • Supplying to the Senior Pool
      • Junior Tranche Holders
        • Supplying to Borrower Pools
    • Annual Returns Model
    • Unique Identity Check(KYC)
    • Casten Risk Oracles
    • Legal Structure
      • Asset Finance Flow
    • Casten Advantage
    • Use Cases
    • Protocol Smart Contracts
      • Casten Protocol Contract Architecture
    • Casten Ecosystem Grants
      • Key Opinion Leaders (KOL) grants.
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  1. Casten

Legal Structure

For information purposes only. Please consult a law practitioner for legal advice around interacting with Real World Assets on the Casten Protocol.

The legal setup for each pool mirrors the smart-contract structure and the real-world relationships between the parties. It is structured with two goals in mind:

a) Ensure that investors in the pool have the most protection possible giving them recourse. The source of truth is on-chain. b) For this purpose, each pool has a legal entity tied to it, special purpose vehicle or SPV. The SPV keeps the Asset Originator's business separate from the financing activity in the pool.

SPV A Special Purpose Vehicle (SPV) is an independent legal entities created for a specific objective, to isolate finacial risk in case the parent company goes bankrupt.

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Last updated 3 years ago