Background

As the M0 network reaches $250M in aggregate supply, ecosystem actors are interested in seeing the broadening of collateral structures. In order to facilitate the build out of additional SPV and collateral structures in the future, this proposal recommends the addition of The Cayman Islands as an approved jurisdiction.

Proposed Changes

Change #1

Section: 3.4. Approved Jurisdictions

Old: Given the current technological conditions, and the nature of the Eligible Collateral proposed by the Adopted Guidance, any form of collateral shall only be recognized as Eligible Collateral by the Validator if the SPV is located in one of the jurisdictions listed below:

• Luxembourg

New: Given the current technological conditions, and the nature of the Eligible Collateral proposed by the Adopted Guidance, any form of collateral shall only be recognized as Eligible Collateral by the Validator if the SPV is located in one of the jurisdictions listed below:

• Luxembourg
• The Cayman Islands

Change #2

Section: 3.4.13. Audit

Old: The jurisdiction requires the mandatory (by law) audit of the annual financial statements of the legal entity.

New: The jurisdiction requires the mandatory (by law) audit of the annual financial statements of the legal entity.

Where such audits are not required by law in the jurisdiction, the audit obligation must be embedded contractually in the entity’s governing documents or operator agreements.

Change #3

Section: Throughout

Old: M^0

New: M0

Ratification of the Present Proposal

The execution of the present proposal shall follow the streamlined Adopted Guidance change process. In such a case - and assuming no other conflicting changes to the Adopted Guidance are proposed in this cycle, the changes mentioned above will have resulted in the proposed version 1.40 of the Adopted Guidance document, as found in the link below. Upon approval of the present proposal, the ratified version of the Adopted Guidance will be updated on https://docs.m0.org, and communicated to ecosystem actors.

https://github.com/m0-foundation/adopted-guidance/blob/main/m0_adopted_guidance_v1.40.pdf

New document hash cb4e866617b20748584dbc25a7339064f2f926192d6da49cf94e257ee55bc9f1.

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