Overview

Investment process

The following sequence diagram gives you an overview of the standard happy path of creating an investor, creating an investment and crediting the investment on chain. This is linked to the process at the Example Guide.

The sequence diagram also contains optional process flows which might not be included in your contract (marked blue).

If you want to distribute digital securities, the optional identifications steps (3 - 8) might be mandatory.

UML sequence diagram Distribution API

Redemption Process

The process described is only valid for crypto securities. For digital securities see here.

Investors have active investments that have granted them a right (dividends or interest payments for example). When the contract has ended or the contract’s nominal amount needs to be reduced because of some legal construct in the contract, the balance for that investor needs to be reduced.

To make use of those rights, the investor needs to transfer the tokens eligible for redemption to the issuer. The issuer will inform you about such an event and provides you with a target wallet address where the tokens should be transferred to.

  • If you have chosen to use managed wallets, you can use the transfer endpoint to transfer the token from the investor wallet to the issuer wallet

  • If you have chosen generic wallets, the investor needs to transfer the token to the issuer wallet itself. (see example flow below)

After the issuer received the token is must initiate the payment to the investor of the net amount (reduced by taxes). The payment will be done the way it was agreed between the issuer and you.

Redemption process overview

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