# MIP55c3-SP6: Legal Domain Work on Greenlit Collateral (bIBTA) Special Purpose Fund

## Preamble

```
MIP55c3-SP#:6
Author(s): @adcv @SebVentures
Contributors:
Tags: spf
Status: Accepted
Date Proposed: 2022-08-10
Date Ratified: 2022-09-01
Amount Requested: 50,000 DAI
Recipient Address: 0x173d85CD1754daD73cfc673944D9C8BF11A01D3F
Forum URL: https://forum.makerdao.com/t/mip55c3-sp6-legal-domain-work-on-greenlit-collateral-bibta-special-purpose-fund/17166
Ratification Poll URL: https://vote.makerdao.com/polling/QmcCs8SS
```

## Sentence Summary
SPF to request 50k DAI advance for legal expenses relating to domain work in the context of greenlit bIBTA application.

## Paragraph Summary
SPF to request 50k DAI advance for legal expenses relating to domain work in the context of the greenlit bIBTA application. The domain strategy for this collateral type is to evaluate the legal ramifications of onboarding a bIBTA vault. If the legal review is favorable, technical work can continue. If the legal review is unfavorable, it follows to avoid further investment and recommend deprioritizing.


## Motivation

SPF to request 50k DAI advance for legal expenses relating to domain work in the context of the greenlit bIBTA application.

The domain strategy for this collateral type is to evaluate the legal ramifications of onboarding a bIBTA vault. If the legal review is favorable, technical work can continue. If the legal review is unfavorable, it follows to avoid further investment and recommend deprioritizing.

The specific amount is indexed on expected hourly costs for tier-1 level legal review by Latham & Watkins or similar, as well as Swiss-based lawyers recommended independently to provide in-depth understanding of specific regulatory implications.

This SPF is necessary to allow legal teams to begin work while final reimbursement details around the budget are ironed out, and thus prevent further delays. The aim will be for this SPF to come net neutral to the overall DAO budget. All excess funds unutilized by legal review will be returned to the Surplus Buffer.


## Special Purpose Fund Name

Legal Domain Work on Greenlit Collateral (bIBTA) Special Purpose Fund.

## Special Purpose Fund Scope & Work Credentials

* The scope is strictly limited to funding legal domain work by external legal teams relating to onboarding bIBTA as a collateral type
* The scope of work will be to conduct an independent legal review including, among other things:
    * Legal risk exposure undertaken by the DAO by adopting this collateral type.
    * Robustness of the regulatory framework the collateral is issued in.
    * International recognition of jurisdiction-specific rules that allow this collateral type to exist.
    * Legal risk exposure from onboarding a vault for a token that is explicitly restricted for sale, minting, and redemption by US citizens.
    * Robustness of tokenizer-specific implementation of rule and regulations related to DLT-issued ledger-based securities.
    * Other open legal review questions to be added during RFC.
* The deliverable should be a legal memo or similar summarizing key legal risks the DAO faces by onboarding a bIBTA vault.
* The external legal team should either have or recommend an independent country-specific legal team with deep familiarity of DLT-related rules and regulations in Switzerland.

### Funding Breakdown

* On funding, the SPF will be used to finance scope-limited legal due diligence relating to onboarding bIBTA as a vault type.
* Excess funds will be held in the multisig until the work is complete.
* Unspent funds will be returned to the Surplus Buffer.

||Dai|
| --- | ---: |
|Cross-border legal domain work (ca. 40h @ 1,200 DAI/hr)|50,000|
|||
|**Total**|**50,000**|

### Special Purpose Fund Details

```
Official Contact or Group Name: Aes
Contact Email/Handle: @Aes
Date Added: 2022-08-10
Total Amount: 50,000 In Dai.
Wallet Address: 0x173d85CD1754daD73cfc673944D9C8BF11A01D3F
Comptroller signers: @Aes, @prose11
```