When it comes to investing—whether in traditional business or the crypto space—the biggest question on every investor's mind is the same: "Is my money safe?"
In the traditional world, you sign a paper contract and send a wire transfer to a company’s bank account. From that moment on, you are forced to trust that the company’s management is honest, that they won't mismanage the funds, and that they will deliver on their promises. You are trusting people.
At YachtFi, we believe there is a better way. We have replaced "trust in people" with "trust in code." Here is why our Smart Contract architecture makes your investment safer than traditional methods.
The core of the YachtFi ecosystem is our Smart Contract. You can think of this as a digital, transparent vault.
When you purchase fractional shares in a yacht (via our tokens), your funds do not go directly into a private YachtFi bank account that we can spend freely. Instead, they are deposited into a secure Smart Contract on the blockchain.
This contract acts as an impartial escrow service. It holds the funds securely and is programmed to follow a strict set of rules that no one—not even our CEO or developers—can override.
One of the most critical safety features of our Smart Contract is how it handles the release of funds. We cannot simply withdraw money whenever we want. The contract only releases capital when specific, pre-programmed milestones are met.
Here is exactly how the logic works:
1. The Accumulation Phase (0% to 10%) When the fundraising begins, all incoming funds are locked in the contract. They are completely untouchable.
2. The Reservation Trigger (The 10% Mark) The first milestone is reached only when we raise 10% of the project's total value.
What happens: The Smart Contract detects that the milestone is hit.
The Action: It releases only that specific 10% amount.
The Purpose: This money is strictly designated to pay the reservation deposit (down payment) to the shipyard to secure the yacht construction slot.
3. The Final Goal (The 100% Mark) After the initial deposit is paid, the fundraising continues. The remaining funds continue to accumulate in the Smart Contract, once again locked and secure.
What happens: The contract waits until the full target (100%) is achieved.
The Action: Only when the entire sum is raised does the contract allow the withdrawal of the remaining balance.
The Purpose: This allows us to finalize the purchase of the vessel and begin operations.
This mechanism eliminates the risk of mismanagement. In a standard crowdfunding scenario, a company might spend 50% of the funds on marketing or salaries before the project is even funded.
With YachtFi, the math prevents this. If the project is at 40%, 60%, or 80% funding, the capital sits safely in the contract, waiting for the final goal. We cannot access it for "operational costs" or "hidden fees."
This system also provides the ultimate safety net. Because the funds are held by the contract and not by us, the refund process is automated. If a project fails to reach its funding target within the specified timeframe, the Smart Contract allows investors to claim their funds back. You don’t have to ask for permission or wait for a manual transfer—the code guarantees your money is returned to you.
The beauty of blockchain technology is transparency. You don't have to take our word for it. Our Smart Contract is public. Anyone with internet access can view the contract on the blockchain explorer and see exactly how much money is in the "vault" at any given second.
At YachtFi, we are building the future of luxury yacht ownership, and that future is built on transparency, logic, and security.
Ready to start your journey? Visit www.yachtfi.io to view our current projects and learn more about how we are tokenizing the seas.