Participants

The Frictionless protocol is a market infrastructure for the issuance, trade, and settlement of digital securities in the private markets. The protocol caters for various roles and responsibilities both within the smart contracts and the API systems, enabling the various market functions to be performed according to the regulatory posture of Frictionless Markets S.à r.l, the legal issuer of digital securities in Luxembourg under MiFID II and the broader E.U.

Frictionless Markets S.à r.l and its securitization fund (FRICTIONLESS MARKETS SECURITIES FT) is the legal issuer of digital securities in compliance with MiFID II (2014/65/EU) regulation. Frictionless Markets S.à r.l operates the PROTOCOL_ADMIN and PROTOCOL_TREASURY.

Where required and directed by a PERMISSIONED_MANAGER, Frictionless Markets S.à r.l provisions and/or operates a PERMISSIONED_CUSTODIAN on the protocol for the custody of securities or cash in accordance with the securitization laws of Luxembourg.

For more information on the legal structure of the FRICTIONLESS MARKETS SECURITIES FT, consult our legal & fund documentation

PROTOCOL_ADMIN

The protocol admin is the owner and deployer of the smart contracts. The Owner role is defined within the OpenZepplin context. The PROTOCOL_ADMIN is not permitted to custody any of the tokens within the protocol.

The ERC-3643 definition of the role is isOwner

PROTOCOL_TREASURY

Represents the treasury in the protocol. The PROTOCOL_TREASURY is an Agent under the definition of the ERC-3643 specification and is responsible for the lifecycle management of all tokens in the protocol. Frictionless Markets is the legal entity which is responsible for the treasury management of the non-co-mingled FIAT deposit & redemptions in multi-currency ledgers at G-SIB providers in Luxembourg under the role PROTOCOL_TREASURY.

The ERC-3643 definition of the role is isAgent

PERMISSIONED_CUSTODIAN

The Permissioned Custodian is the custodian address and OnChain Identity which can custody any of the Frictionless protocol tokens.

The ERC-3643 role is a Custom Compliance role.

PERMISSIONED_INVESTOR

A permissioned Investor in the protocol, is an investor who is compliant with the specification of the FrictionlessOnChainAssetToken and the private placement memorandum of the securitization structure and fund. The Frictionless protocol is open to accredited (professional client) investors only in compliance with (2014/65/EU) regulation, MiFID II. The onboarding of Investors is conducted off-chain, including KYC/AML, Subscription Agreement, etc, which are then added to the claim of the Investors' OnChainId.

The ERC-3643 role is a Custom Compliance role.

PERMISSIONED_MANAGER

A permissioned Manager in the protocol is a Manager or GP utilising both the technology protocol and the fund services of Frictionless Markets to issue their FrictionlessOnChainAssetToken. A PERMISSIONED_MANAGER may also interact with the FundDepositToken to accept & settle payments for Digital Securities.

The ERC-3643 role is a Custom Compliance role.

PERMISSIONED_FUND_ACCOUNTANT

A permissioned Fund Accountant in the protocol is an independent Fund Accountant with access to the underlying IBAN accounts for a FrictionlessFundDepositToken, so they can provide certified attestations for the balance of the accounts at regular intervals. A PERMISSIONED_FUND_ACCOUNTANT interacts with the IFrictionlessAttestationManager to provide this market feature.

The ERC-3643 role is a Custom Compliance role.

PERMISSIONED_CALCULATING_AGENT

A permissioned Calculating Agent in the protocol is an Agent who is permitted to calculate the market value of a FrictionlessOnChainAssetToken with the consent of the PERMISSIONED_MANAGER, so the cash waterfalls may be calculated for the Investors.

The role is not fully supported in the protocol yet.

The ERC-3643 role is a Custom Compliance role.

PERMISSIONED_TRANSFER_AGENT

A permissioned Transfer Agent in the protocol is an Agent who has the provision to transfer securities independently of the PROTOCOL_TREASURY.

The role is not fully supported in the protocol yet.

The ERC-3643 role is a Custom Compliance role.