Uniquely Powerful Legal & Financial Technology
for the Decentralized Economy
THE SPEED AND DEMANDS OF THE FINANCIAL MARKETS HAVE OUTPACED THE LEGAL SYSTEM
- Investor protections are undermined by the cost, time and uncertainty of legal enforcement
- Issuers of securities are subject to the rising volume and cost of often dubious investor lawsuits
- The benefits of smart contracts and tokenized securities are delayed as the legal system adapts
- $100s of billions of investor wealth is being lost
US shareholder class action lawsuits 1995-2014 alone*
$701 Billion in
lost investor wealth
only $90 Billion
Likelihood of S&P 500 company defended a securities class action in 2018
1 in 10
2018 M&A deals larger than $100 million that were challenged by merger-objection lawsuits
Almost 9 in 10
Percentage of merger-objection lawsuits that yielded zero cash for shareholders
Average 2018 cost of settling securities class action lawsuits
*Representing a small fraction of the total investor lawsuits filed against public & private companies related to both equity and debt investments in global financial markets. Figures are “low estimate” and quantify the impact on market pricing of defendants’ securities, they exclude additional investor losses precipitating original investor lawsuits.
Investor Rights Sit at the Core of Our Technology
Conventional enforcement of investor rights is inefficient and full of pain points. Court or arbitration is proactive, slow, expensive and yields uncertain outcomes.
Even if public securities markets rely on disclosure and auditing requirements to help protect investor interests, seeking redress for breaches requires legal action on the part of the investor. The enormous and growing private-placement market has even fewer systemic investor protections.
Token-based investments have the additional challenge of being novel under law – lacking a body of cases that establish how rights are called upon and investor claims handled in the case of serious underperformance.
The inefficiency of enforcing investor rights skews investor risk assessments as poor performance often equals disproportionately large losses. The binary nature of investment results skews investor risk assessment and alters now the market prices corporate finance opportunities.
A New Approach
Uniquely Powerful Smart Securities
Blockchain technology coupled with smart contracts promises to introduce a new model for the financial industry. But what’s that mean exactly? Is it a different way of doing mostly the same thing, or is there a revolution in the making?
We’re fans of Buckminster Fuller, especially his views on change management:
“You never change things by fighting the existing reality. To change something, build a new model that makes the existing model obsolete.”
Blockchain-based (tokenized) securities and our smart contract technology together provide the foundation for a model that attacks some of the largest inefficiencies in today’s financial markets.
Autonomous Investor Rights
We believe that the decentralized economy must provide robust protections for its participants – securities issuers and their investors.
Our contribution is the Sentinel System™ – a patent-pending decentralized platform for making, verifying and remedying commitments from an issuer to its investors.
Conventional investor rights rely upon the general legal system for enforcement, resolution, and recovery. For investors, the cost in time, energy and uncertainty of legal action can be substantial and suppress legitimate complaints. For issuers, the increasing threat of meritless investor lawsuits adds cost, uncertainty and depresses the market pricing of their securities.
The Sentinel System™ provides a low-cost, highly effective alternative that replaces traditional adjudication for nearly all types of non-criminal issuer non-compliance. It lowers issuer costs, reduces compliance-related liabilities, filters non-legitimate claims and provides investors with confidence and certainty.
Platform as a Service
Licensing our platform
Hunit’s financial markets platform provides the tools needed to create, issue (fund), maintain and enforce the rights of financial instruments. With the Sentinel System™ at its center, it’s used to create powerful tokenized securities at all stages of a company’s lifecycle.
Combined with the decentralized exchange and transaction clearing native to the Stellar blockchain, it allows broker-dealers, custodians and law offices to offer their clients exciting new services based on the global decentralized economy.
We license our platform to appropriately regulated financial service providers, corporate law offices, custodians and investment funds.
Hunit’s Legal Technology
In Other Sectors
Our innovations in the area of self-managing legal commitments have applications across a wide range of business areas. We’re selectively working with industry leaders from these verticals to develop the commercial applications that can make meaningful improvements to the status quo.
- Legal Financing
- International Arbitration
- Creative Rights Management
Microsoft for Startups ScaleUp Accelerator
Hunit is a part of Microsoft for Startups’ London-based ScaleUp Accelerator program. In addition to amazing offices in Shoreditch, the program offers broad commercial and technical support for early-stage companies that are at the tipping point of becoming a scale-up. It’s an amazing opportunity for Hunit to harden its technology and demonstrate its impact in cooperation with a global technology leader.
A passion for innovation with deep industry expertise.Meet Our Team