# Introduction
Source: https://docs.bizfi.bitsave.io/index

Welcome to BizFi, a blockchain-enabled finance category. BizMarket is the marketplace product within BizFi, connecting real-world businesses with global onchain capital through structured, tokenized financial instruments.

## What This Protocol Enables

BizMarket is the marketplace layer within BizFi, enabling the issuance and distribution of structured financial products that connect businesses seeking capital with investors providing funding onchain.

At a high level, the protocol supports:

* **Access to growth capital for businesses** through BizYield revenue participation and BizCredit lending structures
* **Predictable yield opportunities for investors** through BizCredit and BizBond stablecoin payouts
* **Onchain financial coordination** including issuance, tracking, and distribution of payouts
* **A marketplace environment** where BizShares can be discovered, evaluated, and acquired
* **Liquidity mechanisms** that allow supported instruments to be exited prior to maturity, subject to protocol rules and available liquidity

The system combines smart contracts, attestations, and offchain operational processes to bridge traditional business financing with blockchain-based infrastructure.

***

## Who This Is For

### Businesses / Issuers

Organizations seeking structured capital, including:

* Micro and small businesses seeking working capital or expansion funding
* Enterprises exploring alternative financing beyond traditional bank loans
* Projects seeking structured funding with defined repayment or revenue-sharing terms

### Investors / Capital Providers

Participants allocating capital onchain in exchange for structured financial returns:

* Individuals seeking exposure to real-economy yield opportunities
* Crypto-native investors diversifying into tokenized real-world financial instruments
* Liquidity providers participating in protocol-defined exit and liquidity mechanisms

### Developers / Integrators

Technical partners building on or integrating with the protocol:

* Applications integrating listings, financial products, or payout data
* Analytics providers consuming protocol and marketplace data
* Infrastructure partners supporting wallet, identity, or payment flows

***

## How the Protocol Works (High-Level)

The protocol coordinates capital flows between investors and businesses using a combination of smart contracts and offchain processes.

1. **Businesses Apply for Financing**
   A business submits information, undergoes onboarding and verification, and lists a financing opportunity on the marketplace.

2. **Financial Instruments Are Issued Onchain**
   The protocol represents the financing agreement as onchain tokens (“BizShares”) that encode the economic structure of the instrument (for example, a fixed-term debt product).

3. **Investors Allocate Capital**
   Investors deposit supported stablecoins and acquire these tokenized instruments through the platform interface.

4. **Capital Is Deployed to the Business**
   Funds are held and deployed through a structured legal and operational framework, enabling the business to use the capital for its stated purpose.

5. **Repayments or Distributions Occur Over Time**
   Businesses make scheduled payments offchain. These are reconciled, bridged onchain, and distributed to token holders according to the product terms.

6. **Lifecycle Completion or Early Exit**
   At maturity, instruments complete their lifecycle and final payouts are made. Some instruments may support early exit through a protocol-defined liquidity mechanism, subject to fees and available liquidity.

Throughout this process, the blockchain is used to record ownership, track entitlements, and automate distribution logic, while certain real-world and legal processes occur offchain.

***

## What You’ll Find in This Documentation

This documentation is organized to help different audiences understand the protocol from both financial and technical perspectives.

* **Product Overview**
  A description of BizMarket, BizShares, and the core financial products available through the platform.

* **Financial Mechanics**
  Detailed explanations of how capital flows, fees, and payouts are structured, with deep dives into BizYield, BizCredit, and BizBond.

* **User & Business Flows**
  Step-by-step overviews of how businesses list opportunities and how investors participate.

* **Architecture & Technical Design**
  A conceptual overview of smart contracts, onchain components, and how they interact with offchain systems.

* **Risk & Legal**
  High-level explanations of legal structures, compliance considerations, and key risks associated with participation.

* **Reference & Appendices**
  Glossary, mathematical explanations, schemas, and supporting technical reference material.

Readers are encouraged to start with the Product Overview and Financial Mechanics sections before exploring technical or legal details.

***

## Video tutorials

<Card title="Watch the BizMarket video series" icon="youtube" href="https://youtube.com/playlist?list=PLGeDjvoeld0g">
  Watch short explainers on BizShares, real-world assets, yield, and the BizMarket investment model.
</Card>

The playlist includes:

* **BizShares Explained: The new category of RWAs**
* **Time Value of Money and BizShares**
* **The Yield-Bearing Truth About Every Business**
* **BizMarket Yield Table: High Risk vs Low Risk Returns**
* **Private Equity's Secret Weapon Against Bad Tokenized Deals**

***

## Important Disclosures (High-Level)

* This documentation is provided for informational purposes only and does not constitute investment, legal, or tax advice.
* Participation in BizMarket instruments involves risk, including the risk of partial or total loss of capital.
* Some components of the system rely on offchain entities, legal agreements, and operational processes that are not fully enforced by smart contracts alone.
* Liquidity, returns, and timelines depend on product design, counterparty performance, and market conditions.

Participants should perform their own due diligence and seek independent professional advice where appropriate before engaging with the protocol.


# Executive Summary
Source: https://docs.bizfi.bitsave.io/overview/executive-summary

This documentation provides a structured, technical, and operational description of the BizMarket platform and its BizShares family.

The document serves as a reference for understanding:

* The relationship between the platform's operational layer and its BizMarket issuance layer
* The lifecycle of onchain financial instruments issued through the protocol
* The responsibilities of protocol entities and offchain operators
* The mechanisms that govern investor participation, business funding, and payout distribution

It is intended to reduce ambiguity in system design and act as a foundation for implementation, auditing, integration, and regulatory analysis.

***

### Audience and Intended Use

**Business Owners (Fundraisers)**
Use this document to understand how their businesses are evaluated, onboarded, and financed through tokenized instruments, including repayment expectations and reporting responsibilities.

**Investors (Onchain Participants)**
Use this document to understand how savings activity determines investment capacity, how BizShares function, how payouts are structured, and what guarantees are provided by the protocol.

**Integrators and Developers**
Use this document to understand the smart contract architecture, capital flow logic, token standards, and distribution systems required to interface with BizMarket’s infrastructure.

**Auditors and Security Reviewers**
Use this document to assess protocol guarantees, custody boundaries, payout mechanisms, and the separation between onchain logic and offchain financial operations.

**Legal and Compliance Reviewers**
Use this document to understand the role of BizMarket’s coordination layer, the offchain handling of business funds, the structure of tokenized instruments, and the distinction between onchain representations and real-world financial agreements.

***

### Product Map

The Bitsave ecosystem is composed of layered financial infrastructure that connects user savings to business financing through tokenized instruments.

**BizFi (Finance Category)**
BizFi is the finance category that structures and coordinates tokenized instruments across the ecosystem. It encompasses the product and marketplace layers that connect business financing to onchain capital.

**BizMarket (Product)**
BizMarket is the marketplace framework where business-linked tokens (BizShares) are issued and, where applicable, transferred or exited. The current product set centers on BizYield, BizCredit, and BizBond.

**BizShares (Tokenized Financial Instruments)**
BizShares are RWAs representing structured financial exposure to real-world revenue, credit, and sovereign instruments. BizYield ties returns to business revenue, BizCredit ties returns to a managed credit pool, and BizBond ties returns to government-backed securities.

***

### Key Design Principles and Guarantees

The BizMarket ecosystem is designed around predictable financial behavior, separation of operational responsibilities, and verifiable onchain records.

**Stablecoin-Denominated Payouts**
All investor payouts are denominated and distributed in stablecoins. This removes exposure to token-price volatility at the point of distribution and provides predictable settlement units for participants.

**Product-Specific Payout Cadence**
BizYield pays monthly, BizCredit pays weekly, and BizBond pays quarterly or at maturity, depending on the series. Each cadence matches the underlying cash flow of the instrument.

**Predictable Exit Structure**
BizCredit and BizBond are designed with predefined return schedules rather than variable market pricing. Investors know the expected payout structure at the time of participation, subject to protocol terms.

**Protocol-Level Payment Backing**
In the event of a business default or delayed repayment, the protocol uses reserves and operational controls to maintain investor payout schedules where applicable. This separates investor yield continuity from individual business performance.

**Onchain Attestations and Enforcement**
Participation limits, instrument issuance, and payout distributions are enforced or recorded onchain. Smart contracts define deposit caps, investment ceilings, and distribution logic, ensuring that core financial constraints are verifiable and not purely offchain promises.

Together, these principles define BizMarket as a system that combines offchain financing with onchain enforcement, recordkeeping, and investor-facing guarantees.


# Product Catalog
Source: https://docs.bizfi.bitsave.io/overview/product-catalog

This documentation provides a structured overview of the product offerings within the BizMarket layer of the Bitsave ecosystem.

### BizShares — Tokenized Instruments

BizShares are RWAs that represent structured financial exposure to real-world businesses and sovereign instruments funded through BizMarket. Each BizShare corresponds to a defined financial agreement between a business, issuer, or the protocol, with payouts routed to holders via the distribution system.

BizShares are organized into three product classes:

* **BizYield** — revenue participation instruments with monthly payouts
* **BizCredit** — credit pool instruments with weekly payouts
* **BizBond** — government-backed instruments with fixed annual returns

Each category defines distinct rules for payouts, transferability, and investor rights.

***

### BizYield (Revenue Instruments)

BizYield represents a share of verified monthly business revenue.

* Businesses keep ownership and share revenue for a fixed term.
* Investors receive monthly payouts in stablecoins.
* Returns vary with business performance.

**See [BizYield Revenue Instruments](/product/bizyield-revenue-instruments) for the full product deep dive.**

***

### BizCredit (Lending Instruments)

BizCredit represents exposure to BizMarket's managed credit pool.

* Each share is priced at \$100.
* Investors receive weekly stablecoin payments over a 12-week cycle.
* Principal is paid back through out the share cycle and is paid in full (plus interest) by the end.

**See [BizCredit Lending Instruments](/product/bizcredit-lending-instruments) for the full product deep dive.**

***

### BizBond (Treasury Bills)

BizBond represents exposure to sovereign and quasi-sovereign instruments held by BizMarket.

* Returns are fixed at 10% annually.
* Payments are made quarterly or at maturity depending on the series.
* The product is designed for capital preservation.

**See [BizBond Treasury Bills](/product/bizbond-government-instruments) for the full product deep dive.**

***

### BizSwap

BizSwap is the protocol-managed exit mechanism used for supported instruments where a controlled liquidity path is required.

***

### Coordination Layer

BizMarket's coordination layer covers business assessment, revenue verification, underwriting, and custody-backed settlement.

**See [BizMarket Coordination Layer](/product/coordination-layer) for the full operational breakdown.**


# Product Overview
Source: https://docs.bizfi.bitsave.io/overview/product-overview

Technical and operational overview of BizMarket, the marketplace product within the BizFi finance category.

### What is BizFi?

BizMarket is Bitsave's decentralized finance product for tokenized real-world business and sovereign instruments. It provides financial instruments for businesses and individuals by connecting pooled onchain liquidity with verified businesses and issuers.

### What is BizMarket?

BizMarket is the issuance and marketplace layer within BizFi.

At a functional level, BizMarket:

* Connects pooled stablecoin liquidity from onchain participants to verified businesses and sovereign issuers
* Structures funding into three defined financial products: BizYield, BizCredit, and BizBond
* Maps businesses to tokenized financial instruments (BizShares)
* Routes business-generated cash flows back into the protocol for investor distribution

BizMarket acts as the coordination framework between decentralized capital formation and traditional business operations. It defines how funds are deployed, how obligations are tracked, and how investor payouts are maintained under protocol rules.

***

### Product Positioning

BizMarket is positioned as a bridge between traditional business finance (Web2) and onchain capital infrastructure (Web3).

**Web2 ↔ Web3 Bridge**

* Businesses operate in the real economy with conventional legal, banking, and operational structures
* Investors participate through onchain smart contracts using stablecoins
* BizMarket’s coordination layer connect these two environments by handling custody, deployment, and reporting

**Target Geographies**

* Underserved and emerging markets where small and medium-sized businesses face limited access to structured financing
* Regions with high stablecoin adoption and demand for USD-denominated yield
* Cross-border contexts where traditional investment access is restricted or inefficient

**Target Industry Verticals**

* Cash-flow-generating small and medium-sized enterprises
* Trade, retail, and service businesses with predictable revenue cycles
* Growth-stage businesses that require working capital or expansion financing without complex ownership transfer

The system prioritizes businesses with measurable revenue activity and investors seeking structured, stablecoin-denominated returns with predictable payout behavior.

***

### Tagline / Value Proposition

**Build Globally, Raise Globally, Own Globally**

This value proposition reflects three coordinated capabilities:

* **Build Globally** — Businesses operate in local markets while accessing a global pool of digital capital
* **Raise Globally** — Capital formation occurs onchain, allowing geographically distributed participants to fund real-world enterprises
* **Own Globally** — Financial exposure to businesses is represented through onchain instruments, enabling borderless participation under standardized rules

The tagline summarizes the system’s role in connecting real-world economic activity with globally accessible digital financial infrastructure.

***

### Core Actors and Roles

**Business Owner (Fundraiser)**:

* Applies for financing through BizMarket
* Undergoes business verification and KYB processes
* Receives deployed capital offchain
* Makes scheduled repayments or revenue distributions to BizMarket offchain
* Provides operational and financial reporting as required by the protocol

**Saver / Investor (Onchain Participant)**:

* Deposits stablecoins into the BizMarket system to establish investment capacity
* Receives an investment capacity determined by protocol rules
* Acquires BizShares representing exposure to business financing
* Receives stablecoin payouts through the protocol’s distribution system
* Interacts with smart contracts directly; participation is governed by onchain limits

**Liquidity Provider**:

* Supplies stablecoin liquidity to protocol pools that support BizMarket financing
* Enables capital availability for business funding cycles

**Protocol Treasury**:

* Holds protocol-owned capital reserves
* Provides financial backing for payout continuity in cases of business default or delay
* Receives protocol revenues and may fund system-level obligations
* Supports guarantees embedded in the BizMarket payout model

**BizMarket’s coordination layer**:

* Custodially holds investor funds before deployment to businesses
* Deploys capital offchain to approved businesses
* Receives business repayments and revenue distributions offchain
* Acts as the legal and operational bridge between onchain capital and offchain business activity
* Conducts business due diligence and onboarding
* Manages offchain financial operations and reconciliation
* Oversees reporting, performance tracking, and payout coordination
* Interfaces between technical infrastructure, the SPV entity, and businesses
* Ensures that offchain obligations align with onchain distribution commitments


# BizBond Treasury Bills
Source: https://docs.bizfi.bitsave.io/product/bizbond-government-instruments

BizBond is BizMarket's government-backed instrument. It explains the eligible sovereign assets, fixed annual return, custody model, and verification process.

BizBond instruments are the most conservative offering in the BizShares family. BizMarket purchases sovereign government treasury bills and resells exposure to users at a fixed 10% annual return.

## How BizBond works

| Parameter              | Value                                                                   |
| ---------------------- | ----------------------------------------------------------------------- |
| **Underlying asset**   | Government-issued securities                                            |
| **Annual return**      | 10% per annum                                                           |
| **Return type**        | Fixed                                                                   |
| **Payment frequency**  | At maturity or periodically, depending on the series                    |
| **Minimum investment** | \$1,000                                                                 |
| **Currency**           | USDC or local stablecoins                                               |
| **Risk profile**       | Low. Risk is sovereign rather than business-level                       |
| **Liquidity**          | Transferable within the BizMarket ecosystem before maturity via BizSwap |

## Treasury Bills that back BizBond

BizBond is backed by a mix of sovereign and quasi-sovereign instruments, including:

* Treasury bills.
* FGN bonds.
* Savings bonds.
* Sukuk (Sovereign Islamic Bond).
* Infrastructure bonds.
* Selected international sovereign issues.
* World Bank and IFC bonds.

## Backing verification

BizBond uses custody and reserve proofs to show that the onchain supply matches the held instruments.

* User subscriptions are pooled and used to purchase the underlying securities through licensed counterparties.
* Custodial receipts and holding confirmations act as proof of reserve.
* The face value and coupon rate of the held instruments are published on the transparency dashboard.
* Government payments are routed into BizMarket's designated account and distributed through the smart contract.

## Minimum buy and investor profile

BizBond has the highest minimum buy because it is the safest instrument in the family and carries the highest operational and custody overhead.

| Item                | Value                                             |
| ------------------- | ------------------------------------------------- |
| **Minimum buy**     | \$1,000                                           |
| **Payment cadence** | Quarterly or at maturity, depending on the series |
| **Return type**     | Fixed                                             |
| **Backed by**       | Sovereign government treasury bills               |

## Risks

* Sovereign default risk is low but not zero.
* NGN-denominated instruments can be affected by currency depreciation.
* Reinvestment rates may differ on the next series.

## Summary

BizBond is the capital-preservation instrument in the BizShares family. It gives users stable exposure to treasury bills without requiring brokerage access or large primary market minimums.


# BizCredit Lending Instruments
Source: https://docs.bizfi.bitsave.io/product/bizcredit-lending-instruments

BizCredit is BizMarket's credit instrument. It explains the pooled lending book, weekly payouts, fixed quarterly return, maturity flow, and controlled exit mechanics.

BizCredit instruments give users exposure to BizMarket's lending book. When you hold BizCredit, you are effectively participating in a credit pool managed by BizMarket. The loans in that pool generate interest, and that interest is paid out weekly to holders in stablecoins.

## How BizCredit works

| Parameter             | Value                                                      |
| --------------------- | ---------------------------------------------------------- |
| **Unit price**        | \$100 per BizCredit share                                  |
| **Return rate**       | 4% per quarter                                             |
| **Weekly payment**    | \$8.67 per share for 12 weeks                              |
| **Payment currency**  | USDC, or local stablecoin                                  |
| **Cycle duration**    | 12 weeks per series                                        |
| **Total return**      | \$104 per share over the 12-week cycle                     |
| **Payment mechanism** | Automatically deposited to the user wallet every 7 days    |
| **Risk profile**      | Medium. Returns depend on the health of the loan portfolio |

## Payment schedule example

A user holds 5 BizCredit shares, or a \$500 total investment.

| Week    | Payment per share               | Total for 5 shares               |
| ------- | ------------------------------- | -------------------------------- |
| Week 1  | \$8.67                          | \$43.35                          |
| Week 2  | \$8.67                          | \$43.35                          |
| Week 3  | \$8.67                          | \$43.35                          |
| Week 4  | \$8.67                          | \$43.35                          |
| Week 5  | \$8.67                          | \$43.35                          |
| Week 6  | \$8.67                          | \$43.35                          |
| Week 7  | \$8.67                          | \$43.35                          |
| Week 8  | \$8.67                          | \$43.35                          |
| Week 9  | \$8.67                          | \$43.35                          |
| Week 10 | \$8.67                          | \$43.35                          |
| Week 11 | \$8.67                          | \$43.35                          |
| Week 12 | $8.67 interest + $100 principal | $43.35 interest + $500 principal |

## What backs BizCredit?

BizCredit is backed by BizMarket's actively managed loan portfolio. The portfolio includes:

* Businesses approved for working capital financing after assessment by the coordination layer.
* BizLend borrowers using tokenized stock assets as collateral to borrow in their local stablecoins.
* Short-term bridge lending facilities for businesses with clear repayment timelines.

BizMarket underwrites, monitors, and services the loans in the BizCredit pool. Diversification across multiple borrowers reduces single-loan concentration risk.

## Controlled exit via BizSwap

BizCredit shares are not freely traded wallet to wallet. Investors exit through BizSwap, the protocol-managed liquidity mechanism.

* The user requests an exit through BizSwap.
* The protocol verifies eligibility and calculates the refund value.
* The swap settles from protocol liquidity, subject to available funds.
* A flat exit fee applies to the original principal amount.

## Why BizCredit exists

BizCredit is the most straightforward income instrument on BizMarket. You put in capital, receive weekly payments for 12 weeks, and get your principal back at the end of the cycle.

## Risks

* Borrower default can reduce recoveries.
* Concentration in one sector or borrower can affect returns.
* Liquidity is not guaranteed at exit.
* BizMarket's reserve fund is a buffer, not a third-party guarantee.

## Summary

BizCredit is BizMarket's short-duration credit product. It is designed for users who want predictable weekly income from a managed loan pool.


# BizYield Revenue Instruments
Source: https://docs.bizfi.bitsave.io/product/bizyield-revenue-instruments

BizYield is BizMarket's revenue-participation instrument. It explains how holders receive a percentage of verified business revenue, how the legal structure works, and what risks apply.

BizYield instruments represent an onchain stake in the monthly revenue of a real, operating business. When you hold BizYield in a business, you own a percentage of that business's revenue pool for a defined period. Your returns rise when the business performs well and fall when it does not.

BizYield is a revenue participation product, not an ownership product. Holders do not receive voting rights, board seats, or a claim on the business's cap table.

## How BizYield works

| Parameter            | Value                                                                                            |
| -------------------- | ------------------------------------------------------------------------------------------------ |
| **Revenue pool**     | Each listed business sets aside a fixed percentage of monthly gross revenue for BizYield holders |
| **Duration**         | Fixed term, typically 12 to 36 months from the issue date                                        |
| **Returns**          | Variable and performance-linked                                                                  |
| **Payment currency** | USDC or local stablecoins, depending on the listing and user preference                          |
| **Minimum holding**  | Typically \$10 equivalent                                                                        |
| **Transferability**  | Transferable within the BizMarket ecosystem via BizSwap only                                     |
| **Risk profile**     | High. Revenue can decline, businesses can underperform, or operations can cease                  |

## Live example: Shard BizYield

Shard is the first business listed under BizYield on BizMarket. Shard is raising \$10,000 through BizYield, and in exchange, 20% of its monthly gross revenue will be distributed to BizYield holders for 24 months.

| Purchase amount | Monthly revenue share                  |
| --------------- | -------------------------------------- |
| \$10            | 0.02% of Shard's monthly revenue pool  |
| \$50            | 0.10% of Shard's monthly revenue pool  |
| \$500           | 1.00% of Shard's monthly revenue pool  |
| \$1,000         | 2.00% of Shard's monthly revenue pool  |
| \$5,000         | 10.00% of Shard's monthly revenue pool |
| \$10,000        | 20.00% of Shard's monthly revenue pool |

Shard carries a 3-month vesting period. Holders begin earning from Month 4 and continue for the remaining 21 months of the 24-month programme.

## What kinds of businesses are listed under BizYield?

BizYield is designed for businesses with consistent, verifiable, and growing revenue streams. Common categories include:

* Aviation and transport businesses such as airlines, cargo operators, and private jet charters.
* Real estate development businesses such as property developers, co-working spaces, and student housing.
* Hospitality and entertainment businesses such as hotels, event venues, cinemas, and resorts.
* Retail and consumer brands such as supermarkets, fashion brands, and FMCG distributors.
* Technology and SaaS businesses such as subscription platforms, fintech apps, and B2B software.
* Agriculture and agribusiness businesses such as farm cooperatives, produce exporters, and food processors.
* Healthcare businesses such as private hospitals, diagnostics chains, and pharmacy networks.

## Why businesses choose BizYield

When a business lists on BizYield, it is not selling shares in the company. It is not giving up ownership. It is not diluting its cap table. It is agreeing to share a percentage of its revenue for a defined period in exchange for upfront capital today.

This makes BizYield a useful capital tool for founders who want to raise money without changing ownership. The arrangement is contractual, revenue-based, and time-bound.

## Legal framework

BizYield is structured around a Revenue Participation Agreement.

* The business receives capital and commits to a revenue-sharing obligation for a defined period.
* BizMarket acts as the intermediary between the business and holders.
* The onchain smart contract is the distribution layer, not the underlying legal agreement.
* Every listing includes disclosures stating that BizYield holders are revenue participants, not shareholders.

## Minimum buy and payout cadence

BizYield carries the lowest minimum buy-in in the product family because it is the highest-risk instrument.

| Item                | Value            |
| ------------------- | ---------------- |
| **Minimum buy**     | \$10             |
| **Payment cadence** | Monthly          |
| **Return type**     | Variable         |
| **Backed by**       | Business revenue |

Monthly cadence matches the way businesses report revenue and gives holders frequent visibility into performance.

## Risks

* Business underperformance can reduce distributions.
* A business may cease operations before the term ends.
* FX conversion can affect the amount received in stablecoins.
* Regulatory changes may affect the operation of listed businesses.

## Summary

BizYield is the BizMarket revenue instrument. It lets users back operating businesses through a fixed-term revenue-sharing structure while keeping ownership and control with the founder.


# BizMarket Coordination Layer
Source: https://docs.bizfi.bitsave.io/product/coordination-layer

This page describes the operational, legal, and financial coordination layer that sits between offchain businesses and onchain BizMarket instruments.

The BizMarket Coordination Layer is the operational, legal, and financial infrastructure that sits between real-world businesses and onchain instruments. It handles due diligence, underwriting, revenue verification, conversion, and governance.

## 4.1 BizMarket strategic operating stake

For every business listed under BizYield, BizMarket's associated strategic entity takes a direct stake in the business as part of the onboarding process. This gives BizMarket access to financial records, management accounts, and operational oversight.

## 4.2 Business viability assessment

Before a business is listed under BizYield, it goes through a structured multi-factor assessment.

| Assessment factor                 | What BizMarket looks at                                          |
| --------------------------------- | ---------------------------------------------------------------- |
| **Revenue history**               | Minimum 12 months of audited or verifiable records               |
| **Business model clarity**        | Whether the business can clearly explain how it makes money      |
| **Product or service quality**    | Customer reviews, site visits, occupancy, traffic, or usage data |
| **Foot traffic and demand data**  | POS data, booking data, app usage, and transaction records       |
| **Ownership and legal structure** | Clean corporate structure with no unresolved disputes            |
| **Debt and obligations**          | Existing liabilities that could impair distributions             |
| **Management team**               | Track record, experience, and ability to execute                 |
| **Revenue concentration risk**    | Dependence on one client, one season, or one event               |
| **Growth trajectory**             | Whether revenue is growing, flat, or declining                   |
| **Exit or wind-down plan**        | What happens if the business cannot meet its obligations         |

## 4.3 Underwriting BizCredit loans

For BizCredit, the coordination layer acts as the underwriter for each loan in the credit pool.

1. Borrower application.
2. Credit scoring.
3. Loan structuring.
4. Collateral assessment.
5. Covenant monitoring.
6. Default management.

## 4.4 How onchain value equals offchain value

BizMarket uses a four-layer verification system.

| Layer                                         | Mechanism                                                                                     |
| --------------------------------------------- | --------------------------------------------------------------------------------------------- |
| **Strategic access**                          | BizMarket's strategic entity holds a direct stake in every BizYield business                  |
| **Monthly revenue verification**              | Finance teams reconcile declared revenue against bank statements, POS data, and sales records |
| **Stablecoin conversion and onchain deposit** | Verified revenue is converted to USDC, or local stablecoins and deposited to the contract     |
| **Transparent smart contract distribution**   | The contract distributes funds proportionally to holders                                      |

## 4.5 BizBond backing verification

For BizBond, onchain value is backed by government securities held in regulated custodial accounts.

* BizMarket pools user subscriptions and purchases the underlying instruments through licensed counterparties.
* Custodial receipts and holding confirmations act as proof of reserve.
* The transparency dashboard shows the face value and coupon rate of held instruments.
* Payments are received at maturity or on coupon dates and distributed through the contract.

## Summary

The coordination layer is the part of BizMarket that keeps onchain claims tied to offchain reality. It is what makes the BizShares family verifiable rather than purely speculative.


# Revenue & Economic Model
Source: https://docs.bizfi.bitsave.io/product/revenue-and-economic-model

This documentation outlines the revenue generation mechanisms and economic structure of the BizMarket ecosystem, detailing how fees are applied across products and how financial flows are managed between stakeholders.

### Core Revenue Streams

BizMarket’s economic model is composed of revenue sources aligned with platform usage and capital activity:

* **Business Listing Fees** — Fees paid by businesses to be onboarded and listed on BizMarket
* **BizSwap Exit Fees** — Fees charged when investors exit supported BizShares via the controlled swap mechanism
* **Trading and Market Fees** — Fees associated with marketplace activity and liquidity mechanisms
* **Structuring and Custody Fees** — Revenue from onboarding, verification, custody, and settlement support
* **Add-On and Premium Services** — Revenue from analytics, advisory, accelerator programs, and related services
* **Treasury and Reserve Allocations** — Fee-derived reserves used to support operations and guarantee mechanisms

These revenue streams collectively fund protocol operations and provide financial buffers that support investor payout continuity.

***

### Listing Fees

Businesses pay a listing fee to access BizMarket distribution and the underlying capital formation workflow.

**Purpose of Listing Fees:**

* Cover due diligence, KYB, and onboarding operations
* Offset structuring, legal coordination, and technical deployment costs
* Filter for serious and investment-ready businesses

**Structural Characteristics:**

* Fees may be structured in **tiers** based on fundraising size, business category, or instrument complexity
* Discount mechanisms may apply through **referral codes** or approved ecosystem partners
* Listing fees are paid prior to or during the onboarding and structuring phase and are directed to the protocol’s operational revenue streams

Exact pricing tiers are defined operationally and may evolve over time.

***

### Structuring and Reserve Allocation

For supported listings, the protocol may retain a fee-derived reserve or spread to compensate the protocol for sourcing, structuring, custody, and distribution services.

**Policy Characteristics:**

* Allocation ranges and mechanics are defined per listing and instrument type.
* Reserves are held under protocol governance and are subject to transparency and reporting obligations.

This mechanism aligns protocol incentives with the long-term performance of the platform and its supported instruments.

***

### BizSwap Exit Fee Mechanics

BizSwap provides the structured exit pathway for supported BizShares and includes a fee component.

**Exit Fee Structure:**

* A **10% exit fee** is applied when an investor exits a supported position through BizSwap
* The fee is deducted as part of the swap settlement process

**Fee Split:**

* **20% of the exit fee** is allocated to liquidity providers supporting BizSwap liquidity
* **80% of the exit fee** is allocated to the protocol treasury

This structure incentivizes liquidity provisioning while creating a sustainable revenue stream that supports protocol guarantees and operations.

***

### Reserve and Liquidity Model

The reserve and liquidity model defines how capital is buffered during an instrument lifecycle.

**Conceptual Structure:**

For a target fundraising amount, capital is coordinated across business proceeds, settlement liquidity, and protocol reserves.

**Accounting Characteristics:**

* Investor deposits fund the overall round structure rather than only direct business proceeds.
* Protocol reserves provide financial buffering intended to support payout continuity and platform sustainability.
* Liquidity allocations contribute to system stability and BizSwap functionality.

This model embeds protocol sustainability and risk buffering into each fundraising cycle.

***

### Premium and Ancillary Revenue Streams

Beyond core financing and marketplace activity, BizMarket may generate revenue through additional services:

* **Advanced Analytics and Reporting Tools**

  * Subscription-based access to deeper performance insights and portfolio analytics

* **Business Accelerator and Advisory Services**

  * Structured support programs for businesses, potentially including strategy, financial planning, and growth advisory

* **Structured Custody and Capital Management**

  * Yield or financial benefit derived from managing capital flows within defined operational boundaries

* **Integration and Infrastructure Services**

  * Fees from third-party integrations or white-label infrastructure use

These services expand the protocol’s revenue base beyond transactional fees.

***

### Example P\&L / High-Level Unit Economics

At a high level, the BizMarket economic model combines **upfront business-side revenue**, **ongoing marketplace fees**, and **reserve-linked value accrual**.

**Revenue Drivers:**

* Listing and structuring fees from businesses
* Exit fees from BizSwap activity
* Protocol reserves and fee capture from supported offerings
* Ancillary and premium service subscriptions
* Treasury growth via structured fundraising and fee capture

**Cost Centers:**

* Business onboarding, due diligence, and compliance operations
* Technical infrastructure development and maintenance
* Financial operations and custody services (often provided by external partners)
* Ecosystem growth, support, and partner incentives

**Sustainability Logic:**

* Upfront fees help cover acquisition and structuring costs
* Ongoing fees such as exit and marketplace fees create recurring revenue tied to platform usage
* Protocol reserves and fee capture provide long-term support for guarantee mechanisms and expansion

Together, these elements form a blended revenue model designed to sustain operations, maintain payout backing mechanisms, and fund continued ecosystem growth.


# User & Business Flows
Source: https://docs.bizfi.bitsave.io/product/user-and-business-flows

This documentation provides high-level user and business interaction flows within the BizMarket ecosystem.

### Business Onboarding / Listing Flow

Businesses undergo a structured onboarding and verification process before a BizMarket instrument is offered.

Key Steps:

1. **Application Submission** — Business submits required information and supporting documents through the onboarding interface.
2. **Eligibility & Compliance Review** — The protocol's compliance and risk teams assess sector suitability, revenue profile, and perform KYB checks.
3. **Instrument Structuring** — Terms (instrument type, amount, tenure, payout cadence) are defined and presented to investors.
4. **Listing Publication** — The offering is published on BizMarket with onchain parameters and investor-facing disclosures.

***

### Investor Onboarding & Limits

Investor participation is mediated by product-specific limits that are enforced onchain.

Key Steps:

1. **Wallet Connection** — Participant connects an external wallet or provisioned account.
2. **Stablecoin Deposit** — Participant deposits supported stablecoins and completes any required eligibility checks.
3. **Onchain Capacity Enforcement** — Smart contracts enforce participation limits based on account status, product rules, and jurisdictional restrictions.
4. **Market Access** — Participant may browse and acquire BizShares within their permitted capacity.

***

### Primary Market Purchase Flow

Primary purchases allocate capital to BizMarket instruments and mint BizShares representing investor positions.

Key Steps:

1. **Selection & Review** — Investor reviews listing details and risk disclosures.
2. **Commitment** — Investor commits stablecoins for the selected allocation.
3. **Onchain Settlement & Issuance** — Once sale conditions are met, BizShares are issued onchain to the investor's address.

***

### Secondary Market Exit (BizSwap) Flow

Supported BizShares exit through BizSwap, the protocol-managed liquidity mechanism that provides a controlled settlement option.

Key Steps:

1. **Exit Request** — Investor initiates an exit request via BizSwap.
2. **Eligibility Verification** — Protocol verifies instrument status and eligibility criteria.
3. **Settlement** — Investor returns BizShares to the protocol and receives stablecoins per the exit formula (including any exit fee).

***

### Liquidity Provision

External liquidity providers supply stablecoins to protocol-designated pools to support financing cycles and BizSwap exits.

Key Steps:

1. **Contribution** — Provider deposits stablecoins into a liquidity pool.
2. **Pool Exposure** — Provider's contribution is represented according to pool rules and entitles them to defined fee shares.
3. **Incentives & Returns** — Returns are generated from protocol fee distributions and exit-fee sharing.

***

### Repayment & Distribution

Businesses remit repayments, revenue shares, or sovereign coupon proceeds which are ultimately used to fund onchain distributions to investors.

Key Steps:

1. **Business Payment** — Business remits payments as required by the instrument terms.
2. **Funds Receipt & Verification** — Protocol acknowledges receipt and verifies amounts.
3. **Onchain Distribution** — Verified funds are made available for onchain distribution; smart contracts allocate payouts to BizShare holders per their entitlements.
4. **Investor Receipt** — Investors receive stablecoins on the defined payout cadence.

***

### Referral & Agent Flow

Referral mechanisms and agent programs facilitate acquisition and onboarding; attribution and rewards are applied per program rules.

Key Steps:

1. **Referral Registration** — Agents or users register and receive referral identifiers.
2. **Referred Onboarding** — New participants register using referral links or codes.
3. **Attribution & Rewards** — Program rules determine rewards or fee adjustments for successful referrals.

***

### Compliance (KYC / KYB)

Compliance requirements vary by participant type and jurisdiction. Business listings require KYB; investor KYC requirements may vary by product or jurisdiction.
Key Points:

* **Businesses:** Mandatory KYB, document submission, and identity verification prior to listing.
* **Investors:** Standard onchain participation does not universally require protocol-level KYC; additional verification may be required for certain products or jurisdictions.


# BizMarket Documentation Appendices
Source: https://docs.bizfi.bitsave.io/reference/appendices

This appendix contains reference material, formulas, templates, and sample data to support implementation, audits, and operational teams.

### A. Glossary of Terms (concise)

* **BizShare** — The onchain token representing a specific BizMarket instrument.
* **BizSwap** — Protocol-managed, liquidity-gated exit mechanism for supported BizShares.
* **EAS** — Ethereum Attestation Service — onchain attestation layer used to anchor `dataHash` references linking offchain documents to onchain business records.
* **BizYield** — The BizMarket revenue participation instrument.
* **BizCredit** — The BizMarket credit pool instrument.
* **BizBond** — The BizMarket government-backed instrument.
* **BizMarket** — The marketplace and issuance layer for BizShares.

***

### B. Mathematical Annex (formulas & worked examples)

#### B.1 Key constants (current design)

* BizCredit principal per share: $$P = \$100$$
* Quarterly yield: $r_q = 4\% = 0.04$
* Annualized yield (approx): $r_{ann} = 16\%$
* Duration: $T = 12$ weeks (≈ 90 days)
* Payout cadence: weekly (12 payouts)
* BizSwap exit fee: product-specific and defined at the time of listing

#### B.2 Formulas

1. **Total interest for term**
   $$
   I = P \times r_q
   $$

2. **Total repayment value**
   $$
   V = P + I = P \times (1 + r_q)
   $$

3. **Weekly amortized payout (equal payments)**
   $$
   \text{WeeklyPayout} = \frac{V}{T}
   $$

4. **Remaining scheduled value after (w) weeks**
   $$
   R(w) = V - w \times \text{WeeklyPayout}
   $$

5. **Total realized value for an investor who holds to maturity**
   $$
   	ext{TotalRealized} = V
   $$

#### B.3 Worked numeric example (baseline constants)

* $P=100$
* $r_q=0.04$ → $I=100 \times 0.04 = 4$
* $V = 104$
* $T=12$ → Weekly payout $= \dfrac{104}{12} \approx 8.6666667$ (rounded display \$8.67)

**Hold to maturity example**

* Amount collected over 12 weeks: $12 \times 8.6666667 = 104$ $$\approx\$104.00$$
* Principal returned through out cycle and paid in full at maturity: $100$
* Total realized value: $104$


# FAQ & Troubleshooting
Source: https://docs.bizfi.bitsave.io/reference/faq-and-troubleshooting

This section answers the most common questions investors and business owners have, and gives step-by-step troubleshooting guides for the frequent operational problems teams encounter. Where appropriate the answers reference the protocol mechanics (BizSwap, SPV, distribution module, and offchain settlement).

### Top Investor FAQs

**Q — How and when do I receive payouts?**

* A — Payouts are made in stablecoins on the cadence defined by the instrument. BizYield pays monthly, BizCredit pays weekly, and BizBond pays quarterly or at maturity depending on the series. High-level flow: the issuer remits funds to the SPV or custodian → receipts are reconciled → funds are bridged to the onchain distribution module → the distribution module executes an onchain payout batch and each holder receives stablecoins to their wallet. After each payout you get an in-app notification and a transaction hash.

**Q — What happens if the business misses a repayment?**

* A — The protocol’s treasury and reserve structure is the backstop for supported products: if a business misses a scheduled repayment, the protocol can use reserves to maintain the payout schedule where applicable. BizMarket’s coordination layer then pursues offchain recovery from the business; recovered funds replenish reserves per policy.

**Q — Can I sell my BizShares early? How does BizSwap work?**

* A — Yes — supported BizShares can be exited via **BizSwap** where the instrument permits it. When you request an early exit the protocol computes the refund value, applies the applicable exit fee on the original principal amount, and attempts to settle from BizSwap liquidity. If liquidity is sufficient the swap executes and you receive the net stablecoin amount. If liquidity is insufficient your exit is queued until liquidity becomes available. Exit fee splits follow the product's published rules.

**Q — How much can I invest?**

* A — Your investment capacity is enforced onchain using product-specific limits, account status, and jurisdictional rules. Limits are enforced by smart contracts and may differ by instrument.

**Q — Where can I see my receipts and statements?**

* A — Every buy, exit and payout produces an in-app receipt and email. Monthly statements, downloadable CSVs, and tax documents (where applicable) are available in **My Portfolio → Statements**. If you need a custom reconciliation export, open a support ticket.

***

### Top Business Owner FAQs

* **Q — How do I list my business on BizMarket?**
  * A — Onboarding steps: complete the pre-listing form, pay the applicable listing fee, complete KYB/KYC, and submit required documents. BizMarket conducts due diligence and submits attestations to the SPV or custodian; once approved the listing is published and fundraising may begin. Detailed onboarding documentation and checklists are available to approved applicants.

* **Q — What are the fees and how do referral discounts work?**
  * A — Listing fees are tiered by product and listing size. Published referral discounts apply at checkout when a valid code is provided. Commissioning and reconciliations follow published schedules.

* **Q — What does BizMarket do onchain versus offchain?**
  * A — Offchain (BizMarket’s coordination layer): identity verification (KYB/KYC), custody and settlement of fiat or stablecoins, disbursement to businesses, and recovery activities. Onchain: attestations linking documents to businessId (EAS), issuance of BizShare tokens, BizSwap exit mechanics, and onchain distribution of bridged payouts. The SPV mediates value flows between offchain and onchain layers.

* **Q — What reporting and obligations do I have after listing?**
  * A — Businesses must provide periodic financial reporting according to the instrument (for example: monthly revenue statements for BizYield, weekly servicing reports for BizCredit, and custody confirmations for BizBond). Non-compliance may impact distributions and can trigger enforcement actions per published policy.


# Investment Terms and Schedules
Source: https://docs.bizfi.bitsave.io/reference/investment-terms-and-schedules

This reference page summarizes the minimum buy, payment cadence, return structure, and sample terms for BizYield, BizCredit, and BizBond.

## Instrument summary

| Instrument    | Minimum buy | Payment cadence          | Return type                | Backed by                           |
| ------------- | ----------- | ------------------------ | -------------------------- | ----------------------------------- |
| **BizYield**  | \$10        | Monthly                  | Variable                   | Business revenue                    |
| **BizCredit** | \$100       | Weekly                   | Fixed over a 12-week cycle | Managed loan portfolio              |
| **BizBond**   | \$1,000     | Quarterly or at maturity | Fixed                      | Sovereign government Treasury bills |

## BizYield terms

* Minimum buy: \$10.
* Typical duration: 12 to 36 months.
* Return source: verified monthly business revenue.
* Payment currency: USDC or local stablecoins.

## BizCredit terms

* Minimum buy: \$100 per share.
* Cycle length: 12 weeks
* Return rate: 4% per quarter.
* Weekly payment: \$8.67 per share.
* Total Return: \$104 per share over the 12-week cycle

## BizBond terms

* Minimum buy: \$1,000.
* Return rate: 10% per annum.
* Payment cadence: quarterly or at maturity, depending on the series.
* Payment currency: USDC or local stablecoins.

## Worked examples

### BizYield example

If a business allocates 20% of monthly revenue to the BizYield pool and you own 1% of that pool, your payout equals 0.2% of the business's verified monthly revenue.

### BizCredit example

If you hold 5 BizCredit shares, you receive \$43.35 per week for 12 weeks.

### BizBond example

If you hold \$1,000 in BizBond, the annual return is \$100, usually delivered as four quarterly payments of \$25 each when the series pays periodically.


# Risk Profile and Comparison
Source: https://docs.bizfi.bitsave.io/reference/risk-profile-and-comparison

This reference page compares BizYield, BizCredit, and BizBond by risk, return behavior, liquidity, and investor fit.

## Risk matrix

| Instrument    | Risk level | Return behavior          | Primary risk                            |
| ------------- | ---------- | ------------------------ | --------------------------------------- |
| **BizYield**  | High       | Variable                 | Business underperformance or failure    |
| **BizCredit** | Medium     | Fixed over a short cycle | Borrower default and liquidity pressure |
| **BizBond**   | Low        | Fixed                    | Sovereign risk and currency risk        |

## Comparison table

| Question                | BizYield                    | BizCredit                         | BizBond                                   |
| ----------------------- | --------------------------- | --------------------------------- | ----------------------------------------- |
| **Best for**            | Growth seekers              | Income seekers                    | Capital preservers                        |
| **Minimum buy**         | \$10                        | \$100                             | \$1,000                                   |
| **Payment cadence**     | Monthly                     | Weekly                            | Quarterly or at maturity                  |
| **Can returns change?** | Yes                         | No, within the cycle              | No                                        |
| **Can I lose money?**   | Yes, if performance weakens | Unlikely, but possible in default | Very unlikely, but sovereign risk remains |
| **Transferable?**       | Yes, via BizSwap            | Yes, via BizSwap                  | Yes, via BizSwap                          |

## How to choose

* Choose BizYield if you want exposure to business growth and can accept variable monthly income.
* Choose BizCredit if you want short-cycle stablecoin income backed by a managed loan pool.
* Choose BizBond if you want the most conservative option and a fixed sovereign-backed return.

## Key disclosures

* Past performance does not guarantee future results.
* All instruments carry risk, including principal loss.
* Liquidity depends on product design and protocol conditions.
* Stablecoin payouts reduce token-price exposure but do not remove underlying economic risk.


# Compliance, Legal & Custody
Source: https://docs.bizfi.bitsave.io/risk/compliance-legal-and-custody

This section describes the legal, custody, and compliance framework that underpins BizMarket operations. It specifies the role of the SPV, outlines custody and funds flows, explains attestation practices, and enumerates compliance, tax, consumer protection, and data-privacy considerations. Items requiring legal confirmation are explicitly flagged.

### Legal Entity Model and SPV Responsibilities

**Legal model overview**

* A Special Purpose Vehicle (SPV) or equivalent legal entity is used to hold certain offchain assets and to act as the legal counterparty for onchain instrument representations where required by law.
* The SPV serves as a legal wrapper that maps onchain token representations to underlying contractual interests when instruments require legal remapping.

**Primary SPV responsibilities**

* Custody and safekeeping of legally required assets associated with BizMarket instruments.
* Contractual counterparty to issuing businesses where an offchain agreement is required.
* Legal wrapper for contractual, revenue-based, debt, or sovereign instruments that require statutory recordkeeping.
* Regulatory reporting and recordkeeping necessary to support compliance obligations.
* Support recovery or enforcement actions under the underlying contractual arrangements where applicable.

**Flag - legal confirmation required**

* The precise SPV structure, fiduciary duties, and licensing requirements must be confirmed by counsel in each jurisdiction of operation.

***

### Custody and Funds Flow (Overview)

This subsection provides a description of custody and funds movement.

**High-level custody flow:**

1. **Fiat/on-ramp** - Fiat received from businesses or investors is converted to approved stablecoins via third-party on-ramps.
2. **Legal custody** - Converted stablecoins and any fiat holdings associated with BizMarket instruments are held under the SPV or appointed custodians as required by law.
3. **Deployment** - Capital is deployed to businesses or used to purchase underlying instruments pursuant to the contractual terms of the product.
4. **Repayments and distribution** - Business repayments or coupon receipts are routed to the legal vehicle or custodian and made available for onchain distribution to token holders per instrument terms.

**Controls and segregation:**

* The protocol requires separation of custody responsibilities and recommends multi-party control over treasury functions where appropriate.
* Custody and conversion partners should be vetted; governance and transparency mechanisms are applied to protocol-held allocations.

**Flag - legal and regulatory confirmations required**

* Third-party on-ramp, custody, and cross-border fund flows implicate payments and AML regulations; counsel must confirm licensing requirements per jurisdiction.

***

### Attestation and Provenance

BizMarket establishes verifiable onchain provenance for business listings and issued instruments using an attestation service (EAS - Ethereum Attestation Service).

**Purpose of attestations**

* Bind offchain business identity and documentation to onchain instrument representations.
* Create immutable references (data hashes) to source documents and form a tamper-evident record that links a businessId with instrument metadata and the business owner address.

**Attestation workflow**

1. **Document hashing** - Relevant offchain source documents are hashed to create a tamper-evident dataHash that can be referenced onchain.
2. **Attestation submission** - An authorized attestor records the attestation using a standard attestation service, linking the businessId, dataHash, and other metadata required for provenance.
3. **Onchain reference and retrieval** - Attestations are stored onchain and indexed for retrieval by UIs, auditors, and integrators to verify provenance.

**Benefits**

* Provides a verifiable link between an onchain instrument and supporting offchain documentation.
* Enhances auditability and reduces ambiguity around instrument provenance.

**Flag - implementation confirmation**

* The exact attestation schema, attestor authorization, and retention policies must be finalized by technical and legal teams prior to production use.

***

### KYC / KYB Policy (business mandatory; investor optional)

**Business KYC / KYB (Mandatory)**

* All businesses seeking to list must complete KYB. Required elements include: business registration documents, proof of beneficial ownership, director and owner IDs, financial records, and bank or payment account information.
* KYB checks are prerequisite to listing approval and to issuance of any BizShares backed by that business.
* Enhanced due diligence is required for businesses operating in higher-risk sectors or jurisdictions.

**Investor KYC (Optional, jurisdiction-dependent)**

* Standard investor participation in onchain investment is allowed without protocol-level KYC. Investors interact via wallets and are subject to smart contract enforced participation limits.
* BizMarket reserves the right to introduce investor KYC for specific products, higher exposures, or to meet regulatory requirements in certain jurisdictions or instruments.
* Where onchain KYC is required by the platform, BizMarket will integrate third-party KYC providers and map verified identities to wallet addresses under privacy-preserving methods.

**Flag - compliance confirmation required**

* Whether investor KYC is optional or required may depend on local securities, crowdfunding, and payments regulations. Legal review is required to set firm KYC thresholds and policies by jurisdiction and product.

***

### Regulatory Considerations per Jurisdiction

**High-level considerations**

* **Securities classification risk:** Certain revenue or debt instruments may be classified as securities under local law. Classification impacts licensing, disclosure, and investor eligibility requirements.
* **Payments and custody regulation:** Converting fiat to stablecoins, custodial arrangements, and running custody services may trigger licensing as a money services business, e-money institution, or custodial provider.
* **Cross-border rules:** Cross-border fund flows, investor eligibility, and marketing to foreign investors are subject to local restrictions and must be managed appropriately.
* **Consumer protection:** Retail investor protections such as disclosure, cooling-off periods, and dispute remedies vary considerably and may apply.
* **Tax reporting and withholding:** Requirements for reporting income, withholding taxes, and sharing data with tax authorities differ by jurisdiction.

**Practical risk management**

* Conduct jurisdictional legal assessments for each country in which BizMarket will accept businesses or investors.
* Avoid marketing restricted products to jurisdictions with clear prohibitions or undeveloped frameworks.
* Implement geofencing and product gating as needed.

**Flag - legal confirmation required**

* Final regulatory compliance strategy must be approved by counsel with expertise in each target jurisdiction prior to market entry.

***

### Tax Implications and Reporting Expectations

**For Businesses (issuers)**

* Income received from BizMarket deployments is treated under local corporate income and transactional tax regimes. Businesses must report funds received and resulting expenses per domestic tax law.
* Tokenization events may have VAT or GST implications depending on jurisdiction and instrument structuring.

**For Investors**

* Payouts in stablecoins may be taxable as interest, dividend, or income depending on the instrument structure and investor jurisdiction.
* Capital gains or losses arising from secondary market activity, where permitted, may trigger taxable events.
* Investors should be informed to consult local tax advisors.

**Platform reporting**

* The legal vehicle and protocol maintain records necessary to support tax reporting and investor statements, including transaction histories, payouts, and summaries, as required by law.

**Flag - tax counsel required**

* Tax treatment varies by jurisdiction. Professional tax advice is required to define withholding obligations, reporting formats, and cross-border considerations.

***

### Consumer Protection and Dispute Resolution

**Terms and disclosures**

* All offerings must be accompanied by clear, non-misleading disclosure documents that explain instrument terms, risks, payout schedules, fee mechanics, and the role of the SPV and protocol.
* Businesses must provide transparent use-of-proceeds statements for each raise.

**Complaint and dispute resolution process**

1. **Initial complaint submission** - investors or businesses submit complaints through designated support channels.
2. **Operational review** - BizMarket Ops performs fact-finding and provides a resolution timeline.
3. **Escalation** - unresolved matters escalate to legal and compliance teams for mediation.
4. **Remediation** - where appropriate, the protocol may offer remediation consistent with terms of service and law.
5. **Arbitration or litigation** - terms of service should set out governing law and dispute-resolution mechanisms.

**Consumer protections to consider**

* Clear disclosure of the protocol's guarantee model and limits of guarantees.
* Cooling-off or refund policies for listing fees where applicable.
* Mechanisms to prevent and manage fraud, misrepresentation, and insider abuse.

**Flag - legal confirmation required**

* Required consumer protections, permissible remedies, and dispute-resolution frameworks must be validated by counsel against applicable consumer-protection laws.

***

### Data Privacy and Storage

**Data collection and purpose**

* BizMarket collects personal and business data for onboarding, KYB/KYC, underwriting, and regulatory reporting. Collected data includes IDs, business documents, financial records, and contact details.

**Storage model**

* **Onchain:** Attestations store minimal pointers and metadata required for provenance. No sensitive personal data is stored onchain.
* **Offchain:** Full documents and sensitive data are stored in encrypted offchain storage such as secure cloud storage or a document vault. Access is controlled by policy.

**Hashing and linking**

* Documents are hashed before attestation. The dataHash is placed in EAS attestations to create tamper-evident references without exposing underlying document content.

**Consent and legal basis**

* Businesses must provide explicit consent to data collection and processing via a tick-box agreement during onboarding. Consent must include purpose limitation, retention period, and third-party sharing details.
* For jurisdictions where consent alone is insufficient, BizMarket must ensure alternative legal bases such as contract performance or legal obligation.

**Retention and deletion**

* Implement retention schedules aligned with legal requirements such as minimum record-keeping periods for tax and AML obligations.
* Provide processes for data rectification and deletion where legally required, subject to retention obligations.

**Security controls**

* Encryption at rest and in transit for offchain storage.
* Least-privilege access controls for internal staff.
* Audit logs for all data access and changes.

**Flag - legal confirmation required**

* Data localization, retention periods, and consent requirements vary by jurisdiction. Legal counsel should confirm obligations and required contractual language for data processing agreements.

***

## Summary of Flags Requiring Legal or Regulatory Confirmation

1. **SPV legal structure and fiduciary duties** - confirm entity form, jurisdiction, and licensing requirements.
2. **Attestor authority and schema governance** - define who is authorized to attest and liability for attestations.
3. **Investor KYC policy thresholds** - confirm when investor identity verification is legally required per jurisdiction and product.
4. **Securities classification** - confirm whether any revenue or debt instruments are securities in target jurisdictions.
5. **Payments, custody, and on-ramp licensing** - confirm licensing requirements for custody and fiat to stablecoin conversion.
6. **Tax treatment and reporting obligations** - obtain tax counsel for jurisdictions where the protocol will operate.
7. **Consumer protection and dispute-remedy obligations** - validate required disclosures and remedies under local consumer law.
8. **Data privacy and localization rules** - confirm retention, hosting, and consent requirements per jurisdiction.


# Architecture & Technical Design
Source: https://docs.bizfi.bitsave.io/technical/architecture-and-technical-design

This section provides a conceptual view of the system architecture, smart contract responsibilities, onchain/offchain interactions, and trust boundaries.

### High-Level System Architecture (Components & Data Flows)

Conceptual components:

* **Front-end layer:** User dashboards, marketplace interfaces, deposit and allocation flows.
* **API / integration layer:** Public-facing endpoints and event hooks for integrators and UIs.
* **Smart contract layer:** BizShares tokens, factory contract, BizSwap exit contracts, distribution and treasury contracts, and attestation integrations.
* **Offchain operations / legal vehicle:** Entity(ies) responsible for compliance, custody, and offchain fund handling.
* **External services:** Payment onramps, custody partners, attestations and verification providers.

### Data flow summary

1. Participant deposits via front-end → onchain settlement and recorded positions.
2. Offchain legal and custody entities manage fiat/stablecoin conversion and coordinate fund deployment.
3. Businesses receive capital offchain; repayments are routed back and made available for onchain distribution to BizShare holders.
4. BizSwap exit events consume protocol liquidity per public rules and update onchain balances and fee distributions.
5. Attestations provide verifiable links between onchain instruments and offchain supporting documentation.

***

### Onchain vs Offchain Responsibilities

**Onchain:**

* Token issuance and lifecycle tracking
* BizSwap exit execution and fee distribution per contract rules
* Onchain attestations for provenance

**Offchain (legal & operational responsibilities):**

* Business onboarding, KYB/KYC and legal documentation
* Fiat↔stablecoin conversion, custody, and fund deployment
* Repayment collection and reconciliation processes

***

### Wallets & User Identity

* Embedded wallets and external wallet connections are supported for user access.
* Identity handling for compliance purposes is managed offchain and mapped to onchain positions where required.

***

### Interoperability

The protocol uses standard stablecoin and ERC-20 conventions and is designed for EVM-compatible chains. Cross-chain adapters are conceptually supported for secondary liquidity or reporting use cases.


# Data & Attestations
Source: https://docs.bizfi.bitsave.io/technical/data-and-attestations

This section provides a conceptual, view of the protocol's data and attestation mechanisms, including how offchain business data is anchored onchain, the privacy model, business metadata, index concepts, and reconciliation records.

### Attestations — Purpose and Schema (Conceptual)

Attestations create a verifiable link between a public `businessId`, an attestation type, a `dataHash` representing an offchain record, and the business owner address. Attestations are used for provenance and auditability; they do not store sensitive documents onchain.

Canonical attestation fields:

* `businessId` (numeric) — Public identifier for the listing.
* `attestationType` (enum) — Type of attestation (e.g., registration, financial statements, KYB completion).
* `dataHash` (bytes32) — Cryptographic hash of the offchain document bundle.
* `businessOwner` (address) — Wallet address associated with the business representative.

Attestation events onchain include attestor address, transaction hash and timestamp, and a schema identifier. Parties holding the original offchain bundle can verify provenance by matching the `dataHash` to their canonical serialization.

***

### Document Hashing and Privacy Model (Summary)

High-level process:

1. Create a deterministic document bundle and canonical serialization.
2. Compute a cryptographic hash (e.g., SHA-256) to produce `dataHash`.
3. Store the bundle in encrypted offchain storage and submit the `dataHash` with attestation metadata onchain.

Privacy principles:

* Onchain: only non-reversible references (`dataHash`) and minimal metadata are published.
* Offchain: full documents remain encrypted and access-controlled; PII is never stored onchain.
* Verification: authorized parties can request the offchain bundle and confirm the hash matches the onchain attestation.

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### Business Metadata

Key fields exposed in investor-facing listings and used to support attestations:

* `businessId`, `businessName`, `businessOwnerWallet`, `country`, `instrumentType`, `amountToRaise`, `proposedTenor`, `payoutCadence`, `averageMonthlyRevenue` (where disclosed), and `useOfProceeds`.

Additional supporting fields are collected for underwriting and compliance but are not published in full in investor-facing documents.

***

### Reconciliation & Audit Trail

The protocol maintains reconciliation artifacts that link offchain receipts and bridging events to onchain distributions. Key record types include:

* Onchain distribution logs (transaction hashes, dates, total distributed, per-holder links)
* Exit event summaries (exit id, holder, instrument id, remaining value, fees, payout tx)
* High-level treasury movement summaries (inflows and outflows linked to public txs)

These artifacts support third-party audit and investor reporting while preserving sensitive operational details offchain.