Can a SAFT be signed electronically?

Yes. Electronic signatures are enforceable under the ESIGN Act and UETA when the parties show intent, consent, attribution, and reliable record retention. New York uses ESRA for intrastate matters.

Is notarization required for a SAFT?

Generally no. SAFTs are typically private contracts and do not require notarization, though specific parties or state law may impose notary or RON conditions for certain ancillary documents.

What accreditation proof is acceptable?

Acceptable evidence varies by exemption: investor questionnaires, CPA or attorney letters, or audited financials are common. Retain documentation to support the exemption relied upon for the offering.

How long must I retain SAFT records?

Retain SAFTs for at least three years from the filing or termination date to meet IRS standards; longer retention may be required for securities or industry-specific rules.

What happens if a signature is missing or invalid?

Missing or invalid signatures can expose parties to rescission risk or enforcement challenges; obtain corrected execution promptly and preserve evidence of good-faith attempts to cure defects.

Can investor funds be held in escrow?

Yes. Use escrow agreements to hold funds pending trigger events; ensure escrow terms are aligned with the SAFT and that the escrow agent’s role is clearly documented.

Electronic Signature
Templates
Finance
Financial SAFT Agreement

Financial SAFT Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

FINANCIAL SAFT AGREEMENT

This Financial SAFT Agreement (the Agreement) is entered into as of (Effective Date) by and between the parties identified below.

Parties

Issuer — Legal Name Issuer — Entity Type (check all that apply)

Corporation LLC Individual Other

Issuer — Address Issuer — Contact Email Issuer — Contact Phone Investor — Legal Name Investor — Entity Type (check all that apply)

Corporation LLC Individual Other

Investor — Address Investor — Contact Email Investor — Contact Phone

Recitals and Definitions

WHEREAS, Issuer is developing a distributed ledger network and intends to issue digital tokens identified as (Token symbol: ); and WHEREAS, Investor desires to provide funds to Issuer in exchange for the right to receive Tokens subject to the terms below.

Capitalized terms used in this Agreement and not defined elsewhere have the meanings set forth in the text.

Purchase Terms

Purchase Amount Currency / Method (check applicable)

USD Wire Transfer Ether (ETH) Bitcoin (BTC) Other

Purchase Price / Pricing Mechanism

Tokens to be issued to Investor pursuant to this Agreement shall be issued upon the occurrence of the Token Issuance Event described below. The Parties acknowledge that Issuer may provide Investor with Tokens or equivalents as set forth by the pricing mechanism above.

Issuance Event and Delivery

Token issuance shall occur upon Network Launch or such other issuance trigger agreed by the Parties on or before .

Vesting / Delivery Schedule (if applicable)

Representations and Warranties

Issuer represents and warrants that: (a) it has full corporate power and authority to enter into and perform this Agreement; (b) the execution and delivery of this Agreement by Issuer and the performance by Issuer do not and will not conflict with any material agreement or law; and (c) proceeds received from Investor will be used in accordance with the Use of Proceeds clause herein.

Investor represents and warrants that: (a) Investor has the requisite power and authority to enter into this Agreement; (b) Investor has the financial ability to bear the economic risk of the investment, including loss of the entire investment; and (c) Investor understands that Tokens are speculative, may have no established market, and may be subject to transfer restrictions.

Investor — Accredited Investor Confirmation (check if true)

Investor is an accredited investor under applicable securities laws

Use of Proceeds; Taxes; Compliance

Issuer shall use the funds received from Investor for corporate and product development, including network development, operations, and other working capital. Investor acknowledges that Issuer has final discretion over allocation of proceeds consistent with the foregoing.

Tax Treatment / Withholding Responsibilities

Transfer Restrictions; Lock-Up

Tokens issued under this Agreement shall be subject to transfer restrictions, as required by Issuer, including lock-up, contractual transfer restrictions, and compliance with applicable securities laws. Investor agrees not to transfer any rights under this Agreement except as permitted by Issuer in writing.

Indemnification; Limitation of Liability

Each party agrees to indemnify and hold harmless the other party from and against any losses, damages, claims or liabilities arising from breach of that party's representations, warranties or covenants in this Agreement. Except as required by law, neither party shall be liable for consequential or punitive damages.

Events of Default; Remedies

An Event of Default includes material breach, insolvency, or willful misrepresentation. Upon Event of Default, non-breaching party may pursue all remedies available at law or in equity, including termination of the Agreement and recovery of damages.

Governing Law; Dispute Resolution

This Agreement shall be governed by and construed in accordance with the laws of excluding its conflict of laws rules. Any dispute arising out of or relating to this Agreement shall be resolved by the dispute resolution procedure agreed between the Parties.

Notices

Issuer — Notice Address Investor — Notice Address

Miscellaneous

This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof. Any amendment must be in writing and signed by both Parties. The Parties may execute this Agreement in counterparts, each of which will be an original.

Additional Terms / Special Provisions

Issuer — Printed Name:

By:

Signature:

Date:

Investor — Printed Name:

By:

Signature:

Date:

What a Financial SAFT Agreement Is and When It’s Used

A Financial SAFT Agreement is a contractual arrangement used to document an investor’s purchase of a right to receive a future financial instrument or token issued by a sponsor or issuer. It typically defers delivery of the instrument until a triggering event (for example, a token generation event or regulatory clearance). In the U.S. context a SAFT frames purchase price, conversion mechanics, investor representations and transfer restrictions, and it functions as a binding private contract between issuer and investor.

Why parties rely on a Financial SAFT Agreement

The agreement records the economic terms, allocates rights and risks, and preserves evidence of the investment transaction. It can postpone token delivery while preserving investor priority, clarify conversion mechanics, and document investor eligibility under securities laws.

Who commonly prepares and signs a Financial SAFT Agreement

Typical participants and their roles in a SAFT transaction are distinct and repeatable across deals.

Startup or Issuer team — founders, CFO, or legal counsel who draft terms and deliver subscription documents.
Accredited investors or funds — entities or individuals that provide capital and must meet eligibility requirements.
Outside legal or compliance counsel — advisors who verify securities exemptions and investor documentation.

Identifying the right participants up front helps ensure enforceability and regulatory compliance.

Who signs and who represents the parties

Accredited Investor

An individual or entity meeting accredited investor standards who provides funds under the SAFT. They must attest to accreditation, provide identifying information and payment instructions, and accept the conversion and transfer restrictions set by the issuer.

Issuer Representative

A corporate officer or authorized signatory who binds the issuing entity. The representative enters the purchase terms, confirms compliance steps were taken, and accepts responsibility for delivery and recordkeeping obligations after execution.

Core components found in a professional Financial SAFT Agreement

A well-drafted SAFT organizes financial terms, conversion mechanics, investor promises, issuer obligations, and dispute resolution in clear, discrete provisions.

Purchase Amount

Specifies the cash or consideration the investor delivers, payment schedule, currency, and any escrow instructions for funds pending a conversion event.

Conversion Mechanics

Defines the trigger event, calculation method for tokens or instruments, conversion caps or discounts, and any pro rata allocation formula.

Representations

Investor and issuer representations about authority, accreditation, and compliance with securities laws; these reduce dispute and regulatory risk.

Transfer Restrictions

Resale limitations, lock-up periods, and restrictions required by securities exemptions to prevent unlawful secondary distributions.

Regulatory Terms

Conditions addressing securities-law compliance, prospectus or notice obligations, and issuer covenants to pursue lawful offerings.

Governing Law

Choice-of-law and venue provisions that determine which state law applies and where disputes will be litigated or arbitrated.

Essential information required in the agreement

Investor Name: Full legal name

TIN/Tax ID: TIN or EIN

Accreditation: Accredited investor statement

Payment Details: Amount and method

Conversion Terms: Trigger event summary

Signatures: Signed date and role

Step-by-step: completing a Financial SAFT Agreement

Follow a consistent sequence to prepare, verify, sign, and store the executed agreement to reduce legal and operational risk.

01

Prepare Template: Load final SAFT with defined fields.
02

Verify Parties: Confirm legal names and accreditation.
03

Collect Signatures: Use eSignature and authentication.
04

Store Records: Save executed copies and audit trails.

Online workflow and configuration checklist

Configure your digital workflow to capture necessary data, authentication, and audit evidence before sending.

Field	Configuration
Authentication	Email + SMS or KBA for investor identity
Conditional Fields	Show accreditation attachments when relevant
Template Reuse	Lock core terms to prevent accidental edits
Audit Trail	Enable IP, timestamp, and action logging

Technical considerations for digital signing and storage

Choose a signing platform that supports secure PDFs, audit trails, and industry integrations to preserve evidentiary value.

File Formats: PDF/A and DOCX
Integrations: CRM and cloud storage
Authentication: SMS, KBA, or 2FA

Preserve the signed PDF and a tamper-evident audit record; ensure your platform supports long-term storage and export in standard formats for legal or tax review.

Where to send executed SAFTs and how they are routed

Establish a simple routing order for the executed document to ensure custody, compliance review, and investor access without duplication.

Issuer Records: Central corporate file and finance team copy
Investor Copy: Send executed PDF to investor email
Legal Counsel: Provide copy to outside counsel for retention
Escrow/Custodian: If funds held, deliver to escrow agent

Typical timelines and deadlines to track

Key dates govern funding, conversion, and retention — track them in project and legal calendars to avoid missed obligations.

Effective Date:

Date parties execute the SAFT; begins obligations

Funding Deadline:

Date by which investor must deliver funds

Token Issuance Target:

Target conversion or network launch date

Transfer Restriction Period:

Duration of resale or lock-up restrictions

Record Retention Date:

When retention clock begins for archival

Common mistakes to avoid when preparing a SAFT

Using informal or abbreviated investor names that do not match legal IDs, which can block wire transfers or KYC verification.
Leaving conversion mechanics vague—unclear discount or cap language causes disputes when the trigger event occurs.
Failing to obtain and retain accredited investor evidence, which can jeopardize securities-law exemptions.
Neglecting to set up a reliable audit trail and secure storage for executed documents and associated payment records.

Legal and financial risks from errors or omissions

SEC Enforcement: Possible civil penalties

Tax Exposure: Uncertain tax reporting

Investor Claims: Breach or rescission risk

Invalid Signature: Enforceability questions

Late Funding: Contractual default consequences

Misrepresentation: Fraud allegations

Supporting documents and download options to include with the SAFT

Include subscription documents and KYC records with the SAFT and export in standard formats for legal review and archival.

Download Formats

Export executed SAFTs as PDF/A for archival and as DOCX for editable working copies; preserve the audit trail in a machine-readable log.

Subscription Docs

Attach the subscription agreement, investor questionnaire, and any escrow instructions required to evidence the purchase.

KYC / AML

Maintain copies of identity verification, proof of accredited status, and payment confirmations to support exemptions.

Payment Proof

Save bank or escrow receipts and wire confirmations alongside the executed SAFT for reconciliation and audits.

Representative use cases for a Financial SAFT Agreement

Real-world scenarios illustrate common drafting choices and operational steps for SAFT transactions.

Early-stage Startup

A small issuer raises seed capital under a SAFT while awaiting a token launch

Investors fund a capped round with conversion discounts
The SAFT documented conversion terms, preserved exemption evidence, and allowed the issuer to delay token delivery until network launch while retaining investor priority and governance protections.

Venture Fund Allocation

A VC fund commits to a SAFT-based allocation for portfolio token exposure

Fund provides accreditation proof and wire instructions
The fund uses the SAFT to record economic rights, standardize conversion language across investments, and centralize recordkeeping for tax and compliance reporting.

eSignature provider comparison for executing and managing SAFT documents

Key pricing and capability differences influence platform selection for high-volume SAFT execution and secure recordkeeping.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	Yes, 7-day trial	Yes	Yes	Yes	Yes
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Frequently asked questions about the Financial SAFT Agreement

Answers to common execution, compliance, and recordkeeping questions for SAFT transactions in the United States.

Need help? Contact support

Can a SAFT be signed electronically?
Yes. Electronic signatures are enforceable under the ESIGN Act and UETA when the parties show intent, consent, attribution, and reliable record retention. New York uses ESRA for intrastate matters.
Is notarization required for a SAFT?
Generally no. SAFTs are typically private contracts and do not require notarization, though specific parties or state law may impose notary or RON conditions for certain ancillary documents.
What accreditation proof is acceptable?
Acceptable evidence varies by exemption: investor questionnaires, CPA or attorney letters, or audited financials are common. Retain documentation to support the exemption relied upon for the offering.
How long must I retain SAFT records?
Retain SAFTs for at least three years from the filing or termination date to meet IRS standards; longer retention may be required for securities or industry-specific rules.
What happens if a signature is missing or invalid?
Missing or invalid signatures can expose parties to rescission risk or enforcement challenges; obtain corrected execution promptly and preserve evidence of good-faith attempts to cure defects.
Can investor funds be held in escrow?
Yes. Use escrow agreements to hold funds pending trigger events; ensure escrow terms are aligned with the SAFT and that the escrow agent’s role is clearly documented.

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