We developed an industry-leading standard for tokenizing bankruptcy claims to make monetization simple and available to everyone. We eliminated the need for centralized custodians, giving our users greater control and immediate access to global marketplaces, loan products, and new investment strategies.

The automated Smart Claim process guides users through a step-by-step questionnaire that calculates the value of their claim, generates standardized legal agreements, and creates a digital tokenized claim using the ERC-721A standard.

The programmability of the ERC-721A standard provides increased flexibility and opens the door for new investment strategies including fractional ownership, automated asset management, derivative products, bundling and index funds, yield farming and staking, automated trading strategies, governance and voting, and custom risk management.

We developed a secure platform for counterparties to communicate and conduct due diligence for third-party marketplace transactions in a safe and secure environment. In the bankruptcy claims market, fraud and identity theft are significant concerns. Our platform addresses these challenges by integrating Plaid biometric verification, as part of our registration process, and restricting access to confidential records.

When a buyer wants to research a specific Smart Claim, they scan a QR code to create a verified account. After passing Plaid verification, they can access additional claim-specific information and request access to the data room. Once approved by seller, the buyer can review supporting documentation and request additional information.

Our platform automatically generates the legal documents and requires counterparties to esign when the transaction is consummated on third-party marketplaces. If buyer does not sign required legal documents after payment is made, the green indicator on the upper-right side of the Smart Claim will turn red, transparently indicating to the open market that the claim carries additional risks.

We are developing an institutional-grade marketplace for trading tokenized real-world assets. We cannot wait to announce detailed plans for this soon!

Let's explore the advantages of tokenized bankruptcy claims compared to traditional centralized marketplaces. Found's Smart Claims provide a clear advantage by leveraging the full potential of blockchain and decentralized finance (DeFi) technology. Some key differences include:

- Enhanced security & transparency with decentralized, tamper-proof ledgers

- Better liquidity and global accessibility through NFT marketplaces

- Ability to tap into DeFi loan products using tokenized claims as collateral

- Improved price discovery through transparent fee structure

Greater Access. Smart Claims are non-fungible tokens (NFTs) that grant access to NFT marketplaces where they can be bought, sold, or traded. This expands the reach of claim holders to a wider market, enabling better price discovery and potential appreciation in value. Smart Claims can also be used as collateral to access various DeFi loan products. This offers an alternative to traditional financing options, with key advantages such as:

- Faster loan processing times

- Lower interest rates

- Reduced reliance on intermediaries

Transparent Fee Structures. We charge a flat 10% fee for our services, while our competitors take 10% plus and additional 1-3% of the face value of the bankruptcy claim (15-20% transaction fees). This makes Found a more cost-effective option for claim holders.

Our competition charges the buyer fees, which results in less transparency and less efficient price discovery. This structure incentives centralized marketplaces to devote efforts to finding cheap bankruptcy claims on behalf of their buyers instead of innovating technology that unlocks additional value for users.

By having a transparent flat fee, Found creates a simpler and more predictable cost structure that allows claim holders to focus on finding the best deals, without being concerned about potential hidden costs or variable fees that artificially reduce market value.

Found.xyz simplifies the process of tokenizing bankruptcy claims by guiding users through a step-by-step process that creates a digital tokenized claim using the ERC-721A standard. This streamlined process eliminates the need for users to hire engineers, brokers, or attorneys and allows immediate access to DeFi loan products and trading on major marketplaces.

Onboarding and Claim Submission. To begin the tokenization process, users will need to register on Found.xyz and provide the necessary information about their bankruptcy claim. The platform will guide users through a simple questionnaire that gathers details about the claim, such as the case number, court jurisdiction, debtor, claim amount, and relevant supporting documents.

Automatic Claim Valuation. Found.xyz's advanced algorithms will automatically calculate the value of the user's bankruptcy claim based on the provided information. The platform considers factors such as the debtor's financial position, the priority of the claim, and market conditions on the date and time of bankruptcy to determine an accurate valuation.

Standardized Legal Agreements. Instead of hiring attorneys or brokers, Found.xyz streamlines the process by generating standardized legal agreements based on the claim's details. These agreements ensure that users remain compliant with regulations and industry best practices while also reducing costs and expediting the tokenization process.

Tokenization and ERC-721A Integration. Once the user has reviewed and agreed to the legal documents, Found.xyz will create a digital tokenized claim using the ERC-721A standard. The ERC-721A standard ensures that each tokenized bankruptcy claim is unique, traceable, and compatible with major marketplaces and DeFi loan products.

Accessing DeFi Loan Products and Marketplaces. After successfully tokenizing their bankruptcy claim, users can access various DeFi loan products and marketplaces immediately. The tokenized claims can be used as collateral, traded on secondary markets, or employed in other financial services, offering users increased liquidity and financial flexibility.

By utilizing Found.xyz's user-friendly platform and streamlined tokenization process, users can efficiently convert their bankruptcy claims into digital assets, unlocking the full potential of tokenized claims in the world of decentralized finance.

Smart Claims unlock greater liquidity, accurate price discovery, and access to a broader range of investors. By leveraging blockchain technology, claim holders can transform the bankruptcy claims market, potentially achieving more competitive prices and new opportunities for their assets.

Enhanced Liquidity. Tokenization can increase liquidity, as Smart Claims can be traded on various decentralized platforms and NFT marketplaces. This allows for higher demand and more competitive pricing compared to traditional sales to specific buyers, such as hedge funds or individual investors.

Global Investor Base. Smart Claims can tap into a global investor base, including both retail and institutional investors. This increased investor base could lead to higher demand and potentially higher prices for tokenized claims.

New Financial Products. Smart Claims can leverage smart contracts and other blockchain functionalities, enabling automated processes and more sophisticated investment strategies. These programmable features attract a wider range of buyers interested in utilizing advanced capabilities.

Lower Transaction Costs. Smart Claims reduce transaction costs and other barriers associated with traditional asset transfers. This cost efficiency makes the tokenized claim more attractive to potential buyers, influencing the price they offer.

Smart Claims facilitate transparent price discovery, as the blockchain can display the tokenized claim's value and transaction history. This transparency allows the market to assess the claim's true value, leading to more accurate pricing.

Smart Claims provide increased flexibility and new investment strategies by leveraging programmability offered by blockchain technology and smart contracts. Here are some sophisticated investment strategies and features that can be implemented with tokenized bankruptcy claims:

Automated Asset Management. Smart Claims can be managed through decentralized finance (DeFi) platforms, which use smart contracts to automate various asset management tasks, such as portfolio rebalancing, profit-taking, and interest accrual.

Fractional Ownership. Smart Claims allow for the easy division of a bankruptcy claim into smaller portions, enabling investors to purchase and trade fractional shares. This can increase the claim's liquidity, allowing a broader range of investors to participate in the market and reducing the barriers to entry.

Derivative Products. Smart Claims can be used as the underlying assets for various derivative products, such as options, futures, and swaps. This allows investors to hedge their exposure, speculate on price movements, or gain leveraged exposure to the performance of the claim.

Bundling and Index Funds. Investors can bundle multiple Smart Claims together to create diversified portfolios or index funds that track the performance of a specific sector or market segment. This can help investors manage risk and achieve more stable returns.

Yield Farming and Staking. Smart Claims can be utilized in DeFi protocols as collateral to earn interest or other rewards through yield farming and staking. Investors can lend their tokens to others or provide liquidity to decentralized exchanges to earn fees or other incentives.

Automated Trading Strategies. Smart contracts can be programmed around Smart Claims to execute advanced trading strategies, such as algorithmic trading, arbitrage, and market-making, which can help investors capitalize on price discrepancies and market inefficiencies.

Governance and Voting. Smart Claims can incorporate governance and voting mechanisms, allowing token holders to participate in decision-making processes related to the management of the underlying assets, such as approving proposed restructuring plans or asset sales.

Custom Risk Management. Smart contracts enable investors to create customized risk management strategies for their tokenized bankruptcy claims, such as setting stop-loss orders, automated liquidation thresholds, and collateral requirements.

These sophisticated investment strategies, facilitated by the programmability of Smart Claims, offer investors more control and flexibility, enabling them to tailor their investments according to their risk appetite, goals, and market outlook.

Fraud and identity theft are significant concerns on centralized marketplaces. Found addresses these challenges by combining the anonymity protections of decentralized trading with a secure and safe environment for buyers and sellers to communicate and conduct due diligence.

Fraud Prevention. Our user account verification and biometric authentication prevents fraudulent activities, such as identity theft, unauthorized account access, and falsified bankruptcy claims. This robust security layer helps ensure that only legitimate users and assets are allowed on the platform.

Confidentiality. Found provides gated access to Smart Claim data rooms to ensure user information remains protected and confidential, preventing unauthorized access or misuse of information.

By addressing concerns related to fraud and identity theft, Found.xyz ensures a safer, more reliable environment for trading tokenized bankruptcy claims, fostering trust and compliance in this rapidly evolving market.

Once you have done so, scan the QR code with your mobile device.

The verification process will begin on your phone.

Verification on Plaid's end takes approximately 20-30 seconds to complete, and supports almost all countries.

Your account on Found will be associated with the wallet address in the same way you would login with a username or password. Take care to make sure you are connecting with the same address at which you would like to receive payments/loans.

Sellect the account you want to use, and press "next" within the application, and then "connect".

Your account on Found will be associated with the wallet address in the same way you would login with a username or password.

Once you've certified that the information submitted is correct, a submit button will appear at the bottom of the page.

If you want to preserve anonymity with prospective buyers, do not use an email address with your full name in it.

Only press the sign up button once or you may receive more than one verification code. If you do, enter the last code you received.

Be sure to press submit before proceeding to connecting a wallet.

If you held money on a bankrupt crypto exchange, you now have something known as a bankruptcy claim.

Bankruptcy claims can be freely traded, which means that a creditor can sell their claim to another party.

Bankruptcy claims trading is when one person or company buys a claim, which is the right to collect money owed to a creditor in a bankruptcy case.

When a company files for bankruptcy, it often owes money to many different creditors. Some of those creditors may not want to wait for the bankruptcy process to be completed to get their money back. So, they can sell their right to receive the money to someone else. This person is called a claims trader.

For example, let's say you are owed $1,000 by a company that filed for bankruptcy. You may not want to wait months or even years to get your money back, so you decide to sell your right to collect the money to a claims trader. The claims trader pays you less than the full $1,000, say $600, but you get the money right away.

The claims trader now has the right to collect the full $1,000 from the company in bankruptcy, and if successful, will make a profit of $400. This is how claims trading works - the trader buys the right to collect the debt for less than the full amount, and then makes a profit if they are able to collect the full amount.

Claims trading can be helpful for both the creditor who wants to get money right away and the claims trader who is willing to take a risk on collecting the full amount in the future.

Blockchain technology unlocks bankruptcy claims trading to the public making it a modern asset class. For example, in the case of Mt. Gox, a high-profile crypto exchange that filed for bankruptcy in 2014, claims returned upwards of 1,700%. While FTX claims are capped at returning 100 cents-on-the-dollar, they still have tremendous upside potential.

Furthermore, democratizing access to claims trading through a peer-to-peer marketplace, increases liquidity in the market for bankruptcy claims, leading to better pricing for both buyers and sellers.

Found’s approach to bankruptcy claims provides equal access to an untapped global trading market.

Account holder claims for FTX, Celsius, Voyager, BlockFi, 3 Arrows Capital, Genesis, and Bittrex.

You can borrow or lend money on arcade.xyz.

You can currently trade your Smart Claim on OpenSea.io, Pro.OpenSea.io, and Blur.io.

We do not charge fees to create a Smart Claim and access DeFi products.

We earn a 10% fee on successful trades only.

Ultimately, the market determines pricing, but relevant factors include:

• Size of your claim

• Preference exposure

• Quality of supporting documentation

• Listing on multiple marketplaces at the same time

• Prompt and helpful responses to buyer requests for more information

If you transferred money out of an exchange 90 days before it filed for bankruptcy, you may have preference exposure. This is significant because under the U.S. Bankruptcy Code Section 547, creditors who have received preferential transfers face the risk of having to return the transferred assets or their value in the bankruptcy process.

Further, preference exposure affects the value of your bankruptcy claim since whoever buys it may be obligated to pay that money to the estate.

Tokenized real-world assets (RWAs) revolutionize the way we think about ownership and investment. By leveraging blockchain technology, these assets can be securely and transparently tracked and traded on a global scale, with the added benefit of instantaneous settlement.

As a universal database, the blockchain allows for the creation of digital representations of real-world assets that can be easily bought, sold, and transferred on a decentralized platform. This creates new opportunities for investment, as well as greater accessibility and liquidity for assets that were previously difficult or impossible to trade.

Additionally, tokenized assets can help to reduce fraud and increase transparency in industries such as intellectual property, traditional securities, real estate, and essentially anything transferred through a written legal agreement.

The blockchain's ability to provide a tamper-proof and transparent record of ownership and transaction history will make it the backbone of the tokenized asset industry of the future.

An unverified contract reduces fraudulent Smart Claims and discourages minting directly from the contract.

Click on the "Create a Smart Claim" button on the homepage or "Create Claim" under the "Connected" drop-down menu in the upper-right.

This information is used to generate the legal documents that support the Smart Claim transaction. You must provide your full legal name and contact information. This information is not shared with counterparties unless they purchase your claim.

Upload pdfs of official court correspondence, email verifying your account and contents, screenshots of the account prior to the bankruptcy filing, proof of loss statements, and bank records evidencing any withdrawals during the preference window.

Redact all sensitive information for the documents prior to uploading them.

Supporting documents are what counterparties require to conduct proper due diligence prior to buying or lending. The better your supporting documents are, the more value your Smart Claim will have.

We will contact you if your file is incomplete or needs additional information before it is approved.

We will provide real-time support. Your minted Smart Claim will appear in your wallet. You are now one of the first to tokenize a bankruptcy claim.

You are ready to enjoy all of the benefits blockchain has to offer.

Join our Smart Claim server to get insider tips and connect with exclusive claim holders.