# MIP55c3-SP9: Legal & Risk Domain Work on Greenlit Collateral BlockTower Credit (RWA Arranger)

## Preamble

```
MIP55c3-SP#: 9
Author(s): @Aes
Contributors:
Tags: spf
Status: Accepted
Date Proposed: 2022-09-07
Date Ratified: 2022-10-24
Amount Requested: 258K DAI
Recipient Address: 0x117786ad59BC2f13cf25B2359eAa521acB0aDCD9
Forum URL: https://forum.makerdao.com/t/mip55c3-sp9-legal-and-commercial-risk-domain-work-on-greenlit-collateral-blocktower-credit-rwa-arranger-spf/17776
Ratification Poll URL: https://vote.makerdao.com/polling/QmcV2pMZ
```

## Sentence Summary

This SPF requests 258K DAI to support onboarding BlockTower Credit as a RWA Arranger pursuant to the [greenlight passing](https://vote.makerdao.com/polling/QmY85FT6#vote-breakdown).

## Paragraph Summary

This SPF provides funding for underwriting and performing the legal work necessary to onboard BlockTower Credit, to be completed by @christiancdpetersen and @teej.

## Motivation

BlockTower was recently [greenlight and voted to be prioritized for onboarding](https://vote.makerdao.com/polling/QmY85FT6#poll-detail). @christiancdpetersen and @teej have agreed to perform the domain work to facilitate onboarding, on a contract basis. SFCU will provide funding to the contracted individuals so the onboarding process can commence until the SPF is approved, at which point SF will be reimbursed and the remaining funds for the contracted individuals will be dispersed as the remaining work is completed.

## Special Purpose Fund Name

Legal & RWF Work on BlockTower Credit (RWA Arranger)

## Special Purpose Fund Scope & Work Credentials

* The scope of work will be to conduct a commercial risk assessment and legal review including, among other things:
 * Review of the legal structures
 * Review of the resolution, wordings and workflow.
 * Review of the agreement between entities and service providers.
 * Writeup of a Legal Structure and Governance Appropriateness Verification.
 * Other open legal review questions identified along the way.
 * Commercial risk analysis: including but not limited to sponsor or arranger risk, credit risk, concentration risk, servicing risk, etc.   
 * Review of the commercial structure: flow of funds, leverage profile, credit enhancement, servicing mechanics, scaling/ramp-up/utilization structure, reps/warranties/covenants
* Analysis of concentration risk, including but not limited to single-borrower, jurisdictional, sector, and asset type
* All-in recommendation: risks vs. opportunities, mitigants to risk vectors, bottom line recommendation to Maker community.
* The legal risk deliverable will be a Legal Structure and Governance Appropriateness Verification to be ratified by TBD
* The commercial risk deliverable will be a Commercial Risk Evaluation
* Once the deliverables are complete and the onboarding has reached the add new vault poll stage, 30K DAI will be paid to each of @christiancdpetersen and @teej
* @christiancdpetersen and @teej know Maker and it's Governance processes and are well-suited to perform the task of onboarding BlockTower Credit.

### Funding Breakdown

* Funding will be done in a lump sum upon Governance Approval of the SPF.
* DAI amounts assume three months to complete the requisite legal review and risk assessment and will be paid out pro-rata if the project is completed ahead of schedule.
* Excess funds will be held in the multi-sig until the work is complete.
* Unspent funds will be returned to the Surplus Buffer.

||Dai|
| --- | --- |
|Legal review of BlockTower Credit | 105K DAI
|Risk assessment of BlockTower Credit| 90K DAI
|Customer Meetings| 3K DAI
|Due at Completion|60K DAI
|**Total**|**258K DAI**|

### Special Purpose Fund Details

```
Official Contact or Group Name: Legal & RWF Work on BlockTower Credit (RWA Arranger) Team
Contact Email/Handle: @Aes
Date Added: 2022-09-07
Total Amount: 258K In Dai.
Wallet Address: 0x117786ad59BC2f13cf25B2359eAa521acB0aDCD9
Comptroller signers: @Aes, @prose11
```