Simple agreement for future tokens
Also called: SAFT
ELI5
An investment contract for tokens that may be issued later.
Used in conversation
“The SAFT structure does not remove securities-law risk.”
Definition
A contract promising future digital tokens under specified conditions; legal and regulatory risks are significant.
Here “Simple agreement for future tokens” means: A contract promising future digital tokens under specified conditions; legal and regulatory risks are significant.
Pitch context
You will see “Simple agreement for future tokens” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches funding instruments & exemptions.
Why it matters: In funding instruments & exemptions, a loose definition can change rights, obligations, approval, disclosure or enforceability.
Caution
Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.
Sources & evidence · 5
Direct term-level sources and supporting source families.
- Y Combinator — Safe financing documentsDirect source · practitioner · checked 2026-08-16
- U.S. Securities and Exchange Commission — Small Business Capital Formation GlossaryDirect source · primary · checked 2026-08-16
- National Venture Capital Association — Model Legal DocumentsDirect source · institutional · checked 2026-08-16
- U.S. Securities and Exchange Commission — Exempt OfferingsSupporting source family · primary · checked 2026-08-16
- Y Combinator — Series A Term Sheet TemplateSupporting source family · practitioner · checked 2026-08-16