One investor lifecycle, traditional or tokenised.

Eligibility is decided and evidenced off-chain, then represented on-chain in whatever form the fund's chosen token standard provides.

• The decision is made once, off-chain. SMART-TA captures investor identity, KYC/AML evidence, suitability and jurisdictional eligibility, and holds the resulting approval as the record every later stage depends on.
• The chain receives a representation, not the judgement. What is written on-chain is a claim that eligibility exists, in the form the token standard supports, rather than the underlying evidence itself.
• Nothing downstream can begin without it. No wallet association, issuance or transfer is possible for an investor who does not hold a current approval.

An approved investor is linked to one or more wallet addresses, which are screened and then enforced by the on-chain compliance layer.

• Three parties, three distinct roles. SMART-TA holds the investor-to-wallet approval record, SmartChain writes that approval to the on-chain register, and the deployed compliance contract enforces it independently at each subsequent transfer.
• Association is a controlled event. Adding or removing a wallet is an approved instruction with its own audit trail, not a self-service action by the holder.
• Custody arrangements vary by investor. The model accommodates self-custody and third-party custody without changing where the eligibility decision sits.

A subscription instruction is captured, validated and priced against a struck NAV, with issuance following the approval rather than leading it.

• Validation precedes pricing. Dealing cut-offs, current eligibility and fund-level controls are checked before the instruction reaches an allocation, so an ineligible order never acquires a price.
• Issuance is triggered, never originated. Once the instruction is approved and settlement confirmed, SmartChain triggers the corresponding token issuance against that approved instruction. It does not issue independently.
• The register and the chain are aligned by construction. The position exists on the register because an approved instruction created it, and on-chain because that same instruction was executed.

Valuation and transfer agency remain separate functions, and publishing a NAV on-chain does not change which of them owns it.

• Fund accounting strikes, transfer agency applies. The NAV is struck and approved through the fund's valuation cycle; the transfer agency function applies it to investor-level allocations.
• Cash flows complete the loop. Net shareholder cash flows pass back to fund accounting, settle against the fund's books and feed the next valuation point.
• On-chain publication is delivery, not authorship. Where a share class calls for on-chain NAV visibility, the approved figure is delivered to the chain in a form the token standard can consume, without changing who calculated or approved it.

Redemption follows the same validation, approval and NAV path as subscription, but carries what subscription does not: the fund's liquidity management tools.

• Liquidity tools are designed in, not exceptional. Redemption fees, gates and suspensions are the fund's planned response to stress. Each depends on a queue with a defined ordering rule so requests can be pro-rated fairly.
• Sequencing protects the fund. Once the instruction is approved and the applicable strike determined, the token leg is burned before cash is released, so fund cash never leaves ahead of a final token leg.
• On-chain settlement changes the construction. Where redemption settles in an on-chain settlement asset, both legs are on-chain and the correct design is a single atomic operation rather than a sequence.

This is the one stage where the token can move without the fund being asked first. An eligible holder can transfer to another eligible wallet, or pledge the token as collateral, without per-transaction approval.

• Enforcement is autonomous, eligibility is not. The token's on-chain compliance logic evaluates each transfer independently: both sides must hold valid eligibility, fund-level rules such as jurisdiction limits, holding caps and lockups are applied, and a failing transfer reverts.
• SMART-TA is out of the path but not out of the picture. It is not in the per-transfer authorisation path, yet it remains the source of the identity and eligibility data those rules depend on, and it observes and reconciles the resulting position changes.
• Collateral treatment depends on the arrangement. A full title transfer moves the holder of record, while a security interest typically leaves the holder in place with the interest recorded against the position.
• The register model shapes what a counterparty relies on. Under an on-chain authoritative register the token is legally determinative at the moment of reliance. Under an off-chain authoritative register the legal record sits in SMART-TA, and the fund publishes a precedence rule and reconciliation cadence so the relationship between the two is defined rather than assumed.

Income is calculated and approved through the same accrual and distribution process used for conventional share classes, then applied to holder positions.

• Distribution or accumulation is a product decision. Income can be distributed by issuing additional tokens or accumulated by letting unit value rise, and the two carry different tax consequences for the holder.
• The conventional answer still applies. An accumulating and a distributing class can sit on a single register, implemented as partitions within the token where the standard supports it, so the holder rather than the platform chooses.
• Accrual is daily and time-apportioned. Income is prorated by elapsed time on transfer and redemption, so a holder is paid for the exact period held.
• Income can be reconstructable from the chain. Where a share class calls for it, each income event is recorded on-chain against the dealing point and the rate it derives from, rather than being inferable only from a change in unit price.

Structural fund events, including share-class amendments, mergers, wind-down and closure, are decided by the fund's governing body and manager, not by the transfer agent.

• Record and execute, rather than decide. SMART-TA records and evidences those decisions and executes the resulting register changes; SmartChain reflects the outcome on-chain once it is legally final rather than initiating it.
• Most events stay off-chain. These remain legal processes with the register updated to reflect the result, not on-chain transactions in their own right.
• One narrow category is different. Changes to the token's own structural identity, such as its name, symbol or linked identity contract, have a direct on-chain counterpart, and that permission is held at a higher trust tier than day-to-day administrative functions.
• Wind-down is phased, not instantaneous. New subscription is disabled first, income and redemption rights are maintained through a defined transition period, and primary redemption closes only at the end of it, with a terminal-state plan covering the token, the registry and the records afterwards.