Self-executing computer code deployed on a blockchain that automatically carries out predefined actions when specified conditions are met, without the need for a trusted intermediary. In tokenized real estate funds, smart contracts are used to automate token issuance, enforce transfer restrictions (including AML/KYC whitelisting, lockup periods, and accredited investor requirements), calculate and distribute income and profits, and implement waterfall logic. While smart contracts reduce administrative burden and human error, they are not infallible — code vulnerabilities can be exploited, and errors in smart contract logic can have serious.
Smart Contract
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