European Jurisdiction (Luxembourg Securitisation Vehicle)

Legal Basis

The legal model is based on two key acts:

• The Law of August 10, 1915 on commercial companies
• The Law of March 22, 2004 on securitisation

These laws create a legal framework that allows TokFlow to:

• create investment structures for working with assets
• define participant rights at the level of corporate documents
• link the economic performance of instruments to specific assets

Digital Co-ownership Rights

In the TokFlow model, a co-owner's participation right is represented through tokens, which act as a digital reflection of economic rights to an asset.

A token in this structure:

• is a digital analogue of a share
• confirms the right to participate in an asset
• reflects a share in the financial result

Important: the token does not exist on its own. It is a digital instrument that reflects a legally established right within the structure.

Link to a Real Asset

Luxembourg law allows the creation of instruments whose economic value depends on a specific asset or group of assets.

This means that:

• the token's return depends directly on the asset's performance
• the co-owner's financial rights are clearly defined
• the structure enables transparent income distribution

Legal Certainty and Protection of Rights

The Luxembourg legal system provides:

• clear definition of co-owner rights
• legal force for corporate documents
• the ability to protect rights under European law

Participant rights are recorded in:

• the company's articles of association
• the terms of issuance of the instruments
• supporting documentation

This creates a clear and predictable participation model.

Technology as a Recordkeeping Layer

TokFlow uses distributed ledger technology (DLT), which provides:

• recordkeeping of co-owner rights
• recording of ownership changes
• transparency of operations

At the same time, legal force remains at the level of the legal structure, while technology is used as a tool for recording and transferring rights.

Regulatory Integration

The TokFlow structure takes into account European regulatory regimes, including:

• the financial instruments regime (MiFID II)
• public offering requirements (EU Prospectus Regulation)

This makes it possible to form a model that is compatible with institutional standards in the EU financial market.

What This Means for a Co-owner

From a practical perspective:

• you enter a structure that operates within EU law
• your rights have legal confirmation
• your share is recorded as a digital instrument
• your income depends on a real asset

Conclusion

The European jurisdiction of Luxembourg provides TokFlow with:

• an institutional-grade legal model
• legal certainty for co-owner rights
• transparent participation economics
• compatibility with international investment standards

This is the foundation on which the entire co-ownership system is built.