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ACoconut - PIPE Contract
A financial instrument that helps Foundation raise capital through a more flexible option and offered at a discount among selected private investors.
The system will allow makers to create new Private Investment in Public Equity (aka. PIPE) issuances, and allow takers to engage existing PIPE issuance.
- Maker, who is the asset seller of the PIPE. Usually the Foundation who wants financing from the token assets;
- Taker, who is the asset purchaser of the PIPE. Usually the token investor;
- Timer Oracle, who is an external timer service provider that provides timing triggers to NUTS technology platform.
- Financial Service Providers have created the PIPE instruments using the NUTS protocol;
- Maker creates new issuance of PIPE instrument;
- Maker deposits the issued token to the PIPE issuance;
- Taker engages the PIPE issuance;
- Taker deposits the fundraised token to the PIPE issuance. The fundraised token is available for withdrawal by maker;
- When the release date arrives, the issued token is available for withdrawal by the taker.
- If maker fails to deposit the issued token in time, the issuance becomes unfunded;
- If taker fails to deposit the fundraised token in time, the issuance becomes delinquent;
- If there is no engagement in time, the issuance completes with no engagement.
Below are the possible states of a PIPE contract:
- Initiated: The PIPE issuance is created;
- Engageable: The maker deposits the issued token;
- Active: The taker engages the PIPE issuance;
- Complete Engaged: The release date arrived with fundraised token deposited;
- Unfunded: The maker fails to deposit the issued token in time;
- Complete not Engaged: No taker engages in time;
- Delinquent: The taker fails to deposit fundraised token in time.