A community member (i.e., LITI or wLITI token holder) reports a case about a scam crypto project to Liti Capital.
Liti Capital then spreads the word among its community members to determine whether other people have been affected by the potential fraud. At this stage, community members may be asked to provide justifications regarding the nature of the fraud.
If the fraud affects a material portion of its community, Liti Capital will initiate a preliminary investigation to assess the potential outcome of the case, which ultimately determines whether the case is selected for further proceedings.
Any case that meets the Company’s underwriting requirements will result in Liti Capital inviting the members of its community that have been harmed by the fraud to validate the selection procedure by locking at least 1 LITI token or 5000 wLITI tokens in a dedicated pool implemented in a smart contract wallet. Note that LITI token holders will still be able to use their voting rights and to access dividend payments with the locked tokens. Furthermore, the company will determine the duration of the lock-up period for both LITI and wLITI and will announce it directly to its community members.
If more than one case is brought by the community, Liti Capital plans to organize different pools in which community members can either lock LITI or wLITI tokens as explained above. Liti Capital commits to pursue the case or cases that received the largest number of LITI and wLITI.
At the end of that process, Liti Capital commits to pursue the case or cases that received the largest number of LITI and wLITI. The exact number of selected cases Liti Capital can pursue at any given time will depends on each case’s estimated costs.