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Compliance & Transparency

ClearFund is engineered to maximize accountability through cryptographic verification. This document outlines our operational standards, custody models, and regulatory stance.

Platform Scope

ClearFund operates as a decentralized coordination protocol. We provide the software infrastructure—specifically web interfaces and smart contract factories—that allows users to create and fund campaigns.

Non-Custodial Nature: ClearFund does not take possession of, hold, or manage user funds at any point. All assets are transmitted directly between user wallets and the campaign-specific smart contracts deployed on the Ethereum blockchain.

Identity Verification

We employ a Soulbound Token (SBT) mechanism to establish verifiable, on-chain reputation.

  • One-Identity-Per-Creator: Creators must undergo identity verification to mint a unique SBT. This prevents Sybil attacks and ensures that reputation is tied to a verified entity.
  • Non-Transferability: The Verification SBT cannot be traded, sold, or transferred between wallets, ensuring that a campaign's trust score is permanently linked to the original creator.

Custody & Escrow

To mitigate the risk of misappropriation, ClearFund utilizes smart contract escrow vaults.

  • Programmatic Locking: Donations are not sent to the creator's personal wallet. Instead, they are deposited into an immutable smart contract vault.
  • Milestone-Based Release: Funds are released in tranches. Creators must submit proof of work for specific milestones, which triggers the release of funds only upon validation (automated or community-based).

Audits & Visibility

ClearFund enforces a policy of radical transparency.

  • On-Chain Traceability: Every donation, withdrawal, and milestone verification is a public transaction on the Ethereum blockchain.
  • Real-Time Auditing: Our interface integrates directly with block explorers, allowing donors to verify the movement of funds independently of our UI.

Fraud Prevention

We utilize a combination of algorithmic monitoring and community governance to detect abuse.

  • Community Thresholds: Campaigns flagged by a significant percentage of verified donors are automatically paused pending review.
  • Freezing Capabilities: While we cannot seize funds, the smart contract architecture allows for the pausing of withdrawals in the event of confirmed security breaches or fraud reports.

Regulatory Status

Not a Financial Institution

ClearFund is not a bank, money transmitter, or registered financial institution. We provide software tools. Users are solely responsible for compliance with their local laws, including tax obligations and fundraising regulations.

Smart Contract Risk: While our contracts undergo security audits, users acknowledge that blockchain software involves inherent risks, including potential code vulnerabilities.

Data Privacy

We adhere to a data minimization policy.

  • Wallet-First Access: Authentication is handled via Web3 wallets. We do not require passwords or store sensitive credentials.
  • No Data Sales: ClearFund does not sell, rent, or trade user data to third parties.

Reporting

To report suspicious campaigns, security vulnerabilities, or compliance concerns, please contact our security team immediately.

security@clearfund.com