> For the complete documentation index, see [llms.txt](https://paidnetwork.gitbook.io/paid/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://paidnetwork.gitbook.io/paid/about-paid/equity-deal-mechanics.md).

# Equity Deal Mechanics

## Equity deal mechanics

PAID opens the door to breakthrough private companies through a streamlined investment model. No six-figure minimums, no bank wires - just a registered wallet, stablecoins (USDC/USDT), and crypto-native investing in high-growth startups.

### How PAID equity deals work

PAID uses Special Purpose Vehicles (SPV) to pool investor funds for single company investments. This regulated structure allows retail investors to access private equity opportunities typically reserved for institutions and accredited investors.

Each investment creates a legal entity that pools multiple investors' money to buy shares in one company. Think of it as a shared investment account where everyone owns a proportional stake based on their contribution.

### Geographic access

PAID equity deals are available to:

* **US accredited investors** (subject to accreditation verification)
* **Global retail investors** from eligible jurisdictions

{% hint style="info" %}
*Not available to residents of: Belarus, Burma, Côte D'Ivoire, Cuba, Democratic Republic of Congo, Iran, Iraq, Liberia, North Korea, Sudan, Syria, Venezuela, Zimbabwe, Crimea, Luhansk, and Donetsk.*
{% endhint %}

### Deal pipeline and sectors

PAID's equity deals span multiple high-growth sectors including AI & Machine Learning, Robotics & Humanoid Technology, FinTech, Defense Technology, Web3 Infrastructure, and Clean Energy. These opportunities cover investment stages from Seed through Series C funding rounds, sourced through our internal team, partnerships with tier-1 investors and angels globally.

Every deal passes strict due diligence covering legal, IP, traction, and cap table analysis before reaching the PAID community.

### Fee structure and staking benefits

PAID's tier-based fee structure rewards long-term commitment with dramatically reduced costs compared to traditional investment funds. 

Traditional funds typically charge 20% carry fee. **PAID Diamond tier charges 0% carry, meaning you keep 100% of potential gains**.

| Tier     | $PAID Staked | Carry on Profit |
| -------- | ------------ | --------------- |
| Diamond  | 375,000      | 0%              |
| Platinum | 150,000      | 5%              |
| Gold     | 75,000       | 10%             |
| Silver   | 37,500       | 15%             |
| Bronze   | 7,500        | 20%             |
| Normal   | 0            | 25%             |

{% hint style="warning" %}
**Important:** You must hold your staked $PAID from investment until exit to maintain fee discounts. Early unstaking results in the highest carry rate (25%).
{% endhint %}

All investors share the SPV’s legal and operational setup costs on a pro rata basis, referred to as the **entry fee**. This fee applies across all membership tiers unless otherwise specified, though Diamond-tier members may receive exemptions on select equity deals. The entry fee can be up to 10% of the invested amount, but is typically lower for larger raises since costs are distributed across more participants.

### Investment process

Investing in equity deals through PAID follows a simple, crypto-native process:

{% stepper %}
{% step %}
[**Sign up and complete KYC**](https://www.paidnetwork.com/register?utm_source=gitbook\&utm_medium=social\&utm_campaign=mainpage)

Register on PAID and complete the one-time KYC process.
{% endstep %}

{% step %}
**Choose a deal and pledge your contribution**

Browse available opportunities, send USDC/USDT payment, and digitally sign your term sheet.
{% endstep %}

{% step %}
**PAID handles everything else**

PAID manages all legal filings, quarterly reporting, and exit distributions. When the company exits, proceeds are sent directly back to your wallet.
{% endstep %}
{% endstepper %}

### Investment costs and timeline

**Investment structure details:**

* Investment timeline: Typically 3-5 years until exit event
* Exit methods: Acquisition, IPO, or secondary sale
* Minimum investment: $500
* Payment methods: USDC or USDT only

### Key advantages over traditional equity investing

**Accessibility**

* $500 minimum vs. $100K+ traditional minimums
* Crypto-native payments vs. bank wires and paperwork
* Global access vs. geographic restrictions

**Transparency**

* Quarterly project reports vs. chasing founders for updates
* On-chain payment tracking vs. opaque processes
* Clear fee structure vs. hidden costs

**Efficiency**

* Digital signing vs. paper forms
* Instant payment confirmation vs. weeks of processing
* Automated exit distributions vs. manual processes

### Risk considerations

Equity investments are long-term commitments with inherent risks:

* **Liquidity risk:** Funds are locked until exit event (3-7 years typical)
* **Company risk:** Startups may fail or underperform expectations
* **Market risk:** Exit valuations depend on market conditions
* **Regulatory risk:** Investment structures are subject to regulatory changes

Only invest amounts you can afford to lock up for the full investment period.