Legal
Learn how DOB Protocol's legal framework works and what legal protections we provide for everyone who interacts with our Real World Assets (RWA) Tokenization Solutions.
The Foundation: Ensuro Re Limited
DOB Protocol operates through a robust and regulated legal framework in Bermuda, implemented by Ensuro Re Limited, our licensed and regulated company.
With this structure, the solution addresses the main market difficulties:
Compliance and Regulatory (Investors)
Tokenization in regulatory gray zone
Clearly defined legal structure through DABA Class M and Class IIGB licenses in a regulated jurisdiction
Lack of clarity on legal framework
Explicit legal framework: segregated accounts under Bermuda's SAC Act, with public and verifiable licenses
Fear of future exposure to sanctions
Regulated structure with over 20 years of history and established legal precedents
Lack of clear investor rights
Statutory limited recourse clearly defines Token Holders' rights to Account Assets
Difficulty in legal enforcement
Legal structure recognized by Bermuda courts, with precedents in insolvency cases
Cost and Complexity (Projects)
Expensive legal structure (SPV, lawyers)
Segregated accounts cost ~US$295/year vs US$2,095+ to incorporate a separate company
Prohibitive legal costs for small operators
Reusable modular structure eliminates need for customized legal structures for each project
Lack of modular legal structures
Segregated accounts system allows reusing Ensuro Re Limited's legal structure
Slow and expensive SPVs
Segregated accounts created quickly, without need for complex legal structures
Multi-jurisdictional Compliance (Projects)
Difficulty complying with global KYC/AML
Built-in compliance through DABA Class M license, with established procedures
Manual compliance that doesn't scale
Regulated structure with integrated compliance, not added later
Legal risk transferred to investor
Transparent legal structure with clearly defined rights, reducing legal uncertainty
Compliance and Legal (Financial Agents and Development Teams)
Each client in a distinct jurisdiction
Standardized structure in Bermuda allows global operation through recognized licenses
Legal costs skyrocket due to customization
Modular structure eliminates need for legal customization for each project
Difficulty reusing legal structures
Segregated accounts allow reusing Ensuro Re Limited's legal structure multiple times
Lack of built-in compliance in product
Compliance integrated through regulatory licenses, not added as external layer
Impossibility to scale without lawyers
Standardized structure allows scaling operations without need for customized legal structuring for each project
Low standardization between projects
All segregated accounts operate under the same legal structure and regulatory framework
Ensuro Re Limited is our company registered in Bermuda, incorporated in 2021. It has multiple regulatory authorizations that ensure all operations occur within a clear and internationally recognized legal framework.
The company went through a rigorous validation process in the Bermuda Monetary Authority (BMA) Regulatory Sandbox. In April 2024, it graduated from the program, receiving complete authorizations that demonstrate its ability to operate in a regulated and secure manner.
Company Information
Name: Ensuro Re Limited
Type: Exempted company incorporated under the laws of Bermuda
Registration Number: 202100534
Registered Address: Crawford House, 50 Cedar Avenue, Hamilton HM 11, Bermuda
Role in DOB Protocol: Legal entity through which the protocol operates in regulatory and legal terms, providing structure for statutory segregated accounts
Class IIGB (Innovative Insurer General Business)
Insurance license under Bermuda's Insurance Act 1978 that allows operating as an insurer with innovative products. Provides a solid regulatory foundation for operations involving risk management and asset protection. Ensuro Re Limited graduated from the Bermuda Monetary Authority (BMA) Regulatory Sandbox on April 30, 2024, receiving a full Class IIGB license after validation by experienced regulators.
License
Active
Segregated Accounts Company (SAC)
Certification under the SAC Act (Segregated Accounts Companies Act 2000). Allows Ensuro Re Limited to create and manage segregated compartments, making possible the system of separate accounts that protects each tokenization.
Certification
Active
DABA Class M
Specific authorization for operations with digital assets under Bermuda's Digital Asset Business Act 2018, including issuance, sale, and management of tokens. Maintained by the General Account, can be used by all segregated compartments. Establishes compliance requirements, including KYC/AML (Know Your Customer/Anti-Money Laundering) procedures, ensuring operation within international standards for prevention of money laundering and terrorism financing.
License
Active
Regulatory Sandbox
Ensuro Re Limited graduated from the Bermuda Monetary Authority (BMA) Regulatory Sandbox on April 30, 2024, receiving a full Class IIGB license.
Program
Graduated
The Segregated Accounts System
DOB Protocol's legal framework is based on a fundamental concept: segregated accounts. It is the central mechanism that ensures legal protection for each tokenization.
What are Segregated Accounts?
A segregated account functions as a "separate vault" within Ensuro Re Limited. When an asset is tokenized by DOB Protocol, its resources are linked to a specific compartment, created exclusively for that tokenization.
Imagine a large company that decides to create completely independent departments, each with its own budget, its own resources, and its own responsibilities. Segregated accounts work in a similar way: they are completely separate legal compartments, where the assets of one tokenization do not mix with those of others.
The Law Behind Segregated Accounts
This separation is guaranteed by the SAC Act (Segregated Accounts Companies Act 2000), a Bermuda law that establishes that assets linked to a segregated compartment are available only to meet the liabilities of that compartment.
If a tokenization has its assets in a segregated account, these resources cannot be used to pay debts of other tokenizations, nor accessed by Ensuro Re Limited's general account.
Protection for Investors: Limited Recourse
One of the most important concepts for investors is limited recourse (limited recovery). It defines exactly where investors can seek resources if something goes wrong.
How Limited Recourse Works
When you acquire tokens from a tokenization, your rights as an investor are limited to the Account Assets of the compartment that backs those tokens:
✅ You have the right to the assets of the compartment that backs your tokens
❌ You cannot seek resources from Ensuro Re Limited's general account
❌ You cannot seek resources from other compartments of other tokenizations
❌ You cannot seek resources from Ensuro Re Limited's own shareholders or administrators
It's as if each tokenization were a financially independent entity, even though technically they're all within the same legal structure.
Why This is Important
This protection works as "risk isolation". If a specific tokenization faces financial problems, this doesn't affect other tokenizations. Similarly, if Ensuro Re Limited has issues unrelated to a specific tokenization, that tokenization's assets remain protected.
Bermuda's Supreme Court has already confirmed this protection on multiple occasions, including in insolvency cases. The structure has solid and recognized legal precedent.
Bermuda as Jurisdiction
Bermuda was chosen as the base jurisdiction for some important reasons:
International Recognition
Bermuda is internationally recognized for its robust legal framework for financial services and insurance. It is a jurisdiction that balances innovation with investor protection, attracting global companies for decades.
Legal Stability
The SAC Act was enacted in 2000, which means this legal framework has over two decades of history and established precedents, offering security and predictability.
Efficiency and Cost
Creating a segregated compartment in Bermuda costs significantly less than incorporating a new company for each tokenization, allowing DOB Protocol to offer tokenization more affordably and benefit smaller operators who would otherwise not have access to sophisticated legal frameworks.
How It Works in Practice
See how all of this works when an asset is tokenized:
Create the Segregated Account
When a tokenization is approved, a new segregated compartment is created within Ensuro Re Limited's structure. This compartment receives a unique identifier name and is governed by a "Governing Instrument", which is basically a legal agreement that defines all terms and conditions.
Limitations and Restrictions
Understand what this legal framework does not guarantee and how DOB Protocol's technical platforms complement these limitations:
Does not guarantee operation success: Segregated compartments protect assets from being used for other purposes, but do not guarantee that the operation will be successful. Investors face the risk of underlying assets not generating expected revenues.
DOB Validator: Validation system that requires verifiable proof of existence, operation, and revenue generation before capital access. Only assets with real-time validated performance and verified revenue are integrated. Assets with insufficient performance cannot sustain token issuance.
Does not protect against fraud: If an owner of tokenized assets commits fraud or misconduct, the legal framework does not protect investors from this specific situation. Protection works regarding legal separation of assets, not regarding the quality or honesty of the operation itself.
DOB Validator + DOB Token Studio: Combines structured forms, document uploads, scoring, and blockchain metadata anchoring, creating auditable cryptographic trails that eliminate information asymmetry between operator and investor. Transparent and traceable tokenization process ensures only validated revenues become tokens.
Data integrity risk: Operational data may be manipulated or inaccurate, affecting investor confidence.
DOB Validator: Performance and revenue are continuously verified and recorded on-chain, creating auditable and manipulation-resistant data flows.
Liquidity risk: RWA markets are structurally illiquid, limiting investor exits.
DOB Liquid DEX: Liquidity programmatically designed through mechanisms and Uniswap v4 Hooks supported by revenue flows. The DEX provides integrated liquidity for all listed RWA tokens, eliminating dependence on manual market makers.
Geographic restrictions: The system is subject to prohibited jurisdiction restrictions. Investors or operators from certain countries cannot participate due to international sanctions or specific legal requirements.
Inherent limitation to the regulated structure. The legal structure ensures compliance with prohibited jurisdictions through KYC/AML procedures established by the DABA Class M license.
Transparency and Compliance
One of the advantages of DOB Protocol's regulated system is the level of transparency and compliance it requires:
Audits
The legal framework provides that segregated compartments may be subject to financial audits when required by the Bermuda Monetary Authority, adding an additional layer of verification and transparency.
Public Records
Ensuro Re Limited is registered as a company in Bermuda, with public information available. Its authorizations are public and verifiable with the Bermuda Monetary Authority.
Built-in Compliance
The system is not only legal, but also operational. Compliance requirements, including KYC/AML, are an integral part of operations, not something added later.
DOB Protocol's legal framework was designed to offer the best balance between innovation, investor protection, and operational efficiency. By using Bermuda's segregated compartments system, the protocol ensures that each tokenization has statutory legal protection, recognized by courts and regulatory authorities. For investors, it means clearly defined rights protected by law. For asset owners, it means access to a sophisticated legal framework at a much lower cost than would be necessary to create similar independent systems. Result: a protocol that works technically and legally, offering legal security at every stage of the real-world asset tokenization process.
Last update: January 2026
Note: This document is informative and does not constitute legal advice. For specific legal matters, consult a qualified lawyer.
Last updated