# Legal & Compliance

### 🏗️ SPV Architecture

#### Delaware Series‑LLC Structure

| Element                | Why It Matters                                                                                                                                                                     |
| ---------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| **Master LLC**         | “D‑Day Capital Series LLC” formed in Delaware; single EIN and master operating agreement.                                                                                          |
| **Individual Series**  | Each deal is ring‑fenced in its own Series.                                                                                                                                        |
| **Members & Managers** | <p>• <em>Members</em> = LP investors represented by Token‑2022 security tokens.<br>• <em>Managing Member</em> = D‑Day GP entity with fiduciary duty and admin key in multisig.</p> |

#### Flow of Funds & Cap‑Table Mechanics

1. **Subscription** – Investor signs Series‑specific Subscription Agreement & Joinder (DocuSign).
2. **Capital Transfer** –
   * **U.S. angel clubs (Reg D 506(b))** wire USDC to a designated *BD Escrow Wallet* operated by a registered broker‑dealer partner.
   * **Non‑U.S. investors (Reg S)** send USDC or SWIFT USD to offshore escrow.
3. **Equity Purchase** – Escrow remits USD to the startup for preferred shares, which are held by the Series SPV.
4. **Security‑Token Mint** – Token‑2022 LP units minted 1:1 and delivered to the wallet specified in the subscription (for U.S. clubs this can be the club’s custodian wallet).
5. **Cap‑Table Sync** – On‑chain ledger + off‑chain PDF schedule updated daily.

***

### 🇺🇸 Reg D §506(**b**) Workflow *(“white‑glove” U.S. service)*

| Step                               | Detail                                                                                                                                                                                                                                                       |
| ---------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |
| **1. No General Solicitation**     | All U.S. outreach is private: e‑mail lists, Zoom calls, or existing relationships with *angel clubs / syndicates*. No public posts, ads, or Discord invites targeting U.S. persons.                                                                          |
| **2. Investor Eligibility**        | Unlimited **accredited** investors plus ≤ 35 “sophisticated but non‑accredited” (not anticipated). Clubs typically supply accreditation letters for all members.                                                                                             |
| **3. Verification**                | Because §506(b) does **not** permit public marketing, *self‑certification* in the Subscription + third‑party accreditation letter is sufficient (less onerous than §506(c)).                                                                                 |
| **4. Web3 Handling (White‑Glove)** | U.S. clubs often prefer Web2 rails: D‑Day burns the requisite utility tokens **on their behalf** and mints the security tokens to the club’s Solana wallet. The club never touches the utility token directly, avoiding a potential *public offering* claim. |
| **5. Lock‑Ups**                    | Rule 144 applies: security tokens non‑transferable for 12 months; enforced by Token‑2022 TransferHook.                                                                                                                                                       |
| **6. Reporting**                   | Form D filed with the SEC within 15 days of first sale; blue‑sky filings handled Series‑by‑Series.                                                                                                                                                           |

***

### 🌍 Reg S Workflow *(Public, Non‑U.S. Outreach)*

Identical to earlier description—global marketing allowed **as long as** U.S. persons are geo‑blocked and contractual legends prevent resale into the United States for 12 months. Steps: KYC → Subscription → USDC → Token‑2022 issuance with Category 3 legend enforced on‑chain.

***

> *This documentation is informational and not an offer to sell securities. Any U.S. participation occurs solely through Reg D §506(b) private placements to accredited investors with an existing relationship. Non‑U.S. offerings rely on Reg S. Read the full Private Placement Memorandum before investing.*


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