> For the complete documentation index, see [llms.txt](https://quor.gitbook.io/quor-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://quor.gitbook.io/quor-docs/whitepaper/the-solution/governance-and-compliance.md). # Governance and Compliance ## Quor 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**: Quor 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, Quor 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 Quor 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. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://quor.gitbook.io/quor-docs/whitepaper/the-solution/governance-and-compliance.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.