Governance and Compliance

Mizzle.Fi operates under a transparent governance framework tailored for institutional involvement:

• Legal Structure: The fund is set up as a special-purpose vehicle (SPV) or regulated fund entity in a jurisdiction supportive of tokenization (e.g. Singapore, Switzerland, or Luxembourg). This vehicle issues MZL tokens representing equity/shares in the fund. Legal documents clearly outline investor rights, fee structures, redemption rules, and recourse in case of defaults. The structure is bankruptcy-remote: investor assets are ring-fenced from the management company.

• Regulatory Oversight: Mizzle.Fi is committed to full regulatory compliance. It will hold any necessary licenses (e.g. CMS license in Singapore) or operate via licensed partners to allow security token offerings. KYC/AML checks are mandatory. All asset acquisitions and custodian relationships comply with applicable securities and asset management laws. Ongoing reporting (quarterly financial statements, annual audits) ensures external oversight.

• Operational Governance: A steering committee (initially founders and advisors) oversees the fund’s strategy. Phase 1 includes independent auditors and a compliance officer. All investment decisions require dual approval (on-chain governance vote and off-chain legal review) to ensure no unauthorized action. Custody of on-chain assets is managed by a top-tier custodian (e.g. Fireblocks, BitGo) and is subject to multi-signature approval among trusted parties.

• Transparent Reporting: Investors receive detailed reports on fund performance, holdings, and risk metrics. Importantly, because all transactions occur on public blockchains, any holder can verify aggregate fund flows at any time (though individual investor identities remain private). Regular disclosures will include NAV calculations, distribution yields, and any valuation changes (valuations for private assets use third-party appraisals).

• Auditing: The fund engages reputable audit firms to verify the on-chain accounting and off-chain asset statements. For example, quarterly assurance reports may verify that tokenized positions (recorded on-chain) match the contractual holdings in bank accounts or project ledgers. This combined audit approach is rare in crypto but is considered best practice for RWA platforms.

• Decision Rights: In Phase 1, governance is mostly managed by the founding team under the approved whitepaper and term sheet. However, MZL stakers will receive governance tokens that take full effect in Phase 2. This ensures that from the outset, investors know there is a roadmap to community-driven governance. Major changes (e.g. altering the yield target, fund duration, or fee structure) will require a vote by token holders.

By embedding these governance and compliance measures, Mizzle.Fi aspires to “institutional-grade” operations. The aim is to mirror the standards of regulated investment funds: clear legal documentation, rigorous auditing, and accountable management. This provides comfort to larger investors and distinguishes Mizzle.Fi from typical DeFi pools. As the industry evolves, the fund will adapt to new regulations (e.g. MiCA in Europe, or US security token rules) to maintain a compliant edge.