Separate Asset Structure (Compartment)

Legal Isolation (Ring-fencing)

Under the Luxembourg Securitisation Law of March 22, 2004, a company may create separate compartments, each corresponding to a separate part of assets and liabilities.

This means that:

• the financial results of each asset are accounted for separately
• investor and creditor claims are tied only to the specific asset
• risks from one asset do not affect others

Risk Isolation

The key function of a compartment is risk limitation.

In practice, this means that:

• if an asset performs poorly, it does not affect other assets
• if liabilities arise, they are covered only within that asset
• other compartments remain fully independent

There is no mixing of assets and risks.

Linking the Co-owner to a Specific Asset

Each co-owner enters not "the company as a whole", but a specific compartment.

This means that:

• their share is linked to a specific asset
• their income depends specifically on that asset
• their risks are limited to that asset

Financial Logic

Each compartment:

• receives funds from co-owners
• owns or controls the asset
• generates income
• distributes the result among participants

Funds are not mixed between different assets.

System Scalability

The compartment model makes it possible to:

• launch new assets without creating new companies
• scale the platform quickly
• build a portfolio of dozens or hundreds of assets

Each new asset is a new compartment, not a new legal structure created from scratch.

Control and Transparency

For each compartment:

• management rules are defined
• income distribution terms are recorded
• separate accounting is maintained

This makes it possible to:

• clearly see the result of each asset
• assess performance
• make decisions at the level of a specific asset

What This Means for a Co-owner

From a practical perspective:

• you invest in a specific asset, not a "mix"
• your income is transparently linked to the result
• your risk is limited to this asset
• other assets do not affect your participation

Conclusion

A compartment is a key protection mechanism in TokFlow.

It provides:

• asset isolation
• risk limitation
• transparent economics
• platform scalability

This makes the co-ownership model structured, predictable, and understandable for the investor.