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Redemption of the tokens (exit events)
The participants will be entitled to redeem their tokens in certain defined by the company exit events. Below described the two most well-known and frequently occurring cash-out situations for ITP.

In case any or all shareholders sell their part or all shares of the company the tokens shall be redeemed in proportional parts from all the participants. The amount of the redemption payment shall be established proportionally to shares sold to the number of tokens issued multiplied by the per-share compensations received by the shareholders. In some cases, if tokens are issued representing a fraction of share value, then additionally multiplied by the respective conversion rate as determined in respective TIP.
Participants' right to redemption is triggered with the shareholders’ sale - either partial or full. The tokens are returned and burned in exchange for money. Participants will compensate taxes based on the participant’s tax residency jurisdiction and the total amount received.
The following is an exemplary equation to illustrate the possible monetary gain of a participation in the TIP in case of shareholders’ exit.
Legal CAP = All legal and current shares of the shareholders of the company
Tokens CAP = All currently distributed and claimed tokens of the participants multiplied by the conversion rate
Shares Price = total amount in euros received for the shares in transaction
Total Financial CAP = Legal CAP + Tokens CAP
Participants Financial outcome per 1 Token = Shares Price / Total Financial Cap

If an IPO takes place before the exit event, the tokens will have to be exchanged against publicly traded shares, which is beneficial to the participants. However, in this case, the participants will have to open investment accounts in banks and deal with actual financial securities rather than gain from participation in the Token Incentive Plan.

  • What happens to my Token Incentive Plan if the Salto X platform stops operating? Salto X platform may cease to exist due to some practical or funding reasons, which will lead the company to be unable to deploy new Token Incentive Plans and smart contracts on the blockchain. However, the company and the participants can download all documents and files from the Salto X platform and access their tokens on digital wallets. Also, the existing Token Incentive Plan will continue to be in force with smart contracts, which shall continue its envisaged actions until fully fulfilled. If the company wishes, it may create direct access to the smart contract on a blockchain and manage it without the Salto X platform.
  • What if the Salto X platform gets hacked? Salto X platform gathers minimum necessary information about each participant and the company to provide its services. Accordingly, the Salto X platform does not hold personal data that could materially affect the participants' well-being or the company. Salto X platform may be hacked by someone who sends a phishing attack, acting in the name of Salto X, to steal private keys and gain access to the participant's or company's wallet, which may result in loss of tokens issued. In such cases, tokens will lose their value against the company or the shareholders, and Salto X shall help issue new tokens. Participants and the company need to consider that phishing attacks may also happen for other reasons and should be vigilant regarding emails received or pop-ups on browsers to log in.
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Shareholders exit event
IPO before shareholders exit event
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