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C42S · Term Sheet v1.0
C42S Security Token — Term Sheet
Published: September 2025 · Issuer: CyTel42 · Jurisdiction: EU (MiFID II context)
1) Term Sheet Overview
Token Name
C42S Security Token
Instrument Type
Fungible financial instrument with contractual right to proportional distributions
Classification
Security token; financial instrument (MiFID II Annex I, Section C)
Issuer
CyTel42 (EU-based program operator)
Offer Type
Private placement only; no public offering; restricted to eligible participants
Investor Eligibility
Qualified/professional investors (EU) or accredited entities (US/ROW), subject to KYC/AML
Target Participants
(a) Approved claimants monetizing via CMA · (b) Professional investors seeking exposure to recoveries
Underlying Asset
Pool of monetized, legally assigned claims (online casinos, crypto fraud, consumer abuse)
Token Rights
Pro‑rata share of distributions from net recoveries, per Program Terms & CMA
Token Form
ERC‑20 compatible (non‑redeemable); legal rights defined off‑chain
Chain
EVM‑compatible chain (permissioned or public); no direct on‑chain revenue flows
Transferability
Restricted to eligible/approved wallets; compliance filters apply
Custody
Self‑custody or regulated CASP custody
Use of Proceeds
Enforcement, asset tracing, operations, compliance, reporting
Distributions
Quarterly target (not guaranteed); pro‑rata waterfall from verified net collections
Reporting & Transparency
Monthly updates + material event notices via the portal
Governance
No corporate voting rights; operational governance by CyTel42
Exit Options
No guaranteed redemption or liquidity; potential secondary transfer subject to compliance
Legal Agreements
Claim Monetization Agreement (CMA); Program Terms; Risk Annex
Jurisdiction & Law
Governing law/venue to be specified in final Program Terms (EU venue preferred)
2) Summary of Participant Flows
For Claimants
- Pass eligibility on ClaimBack42
- Sign CMA and assign claim to CyTel42
- Receive C42S allocation
- Participate in distributions
For Investors
- Request investor access & provide details
- KYC/eligibility review
- Receive C42S via allocation
- Participate in distributions
3) Reference Documents
4) Legal Notice
This Term Sheet is non-binding and for informational purposes only. It does not constitute an offer or solicitation of securities to the public. Participation in the C42S program is limited to eligible parties under applicable laws and requires full review of the Program Terms, Risk Annex, and the Claim Monetization Agreement (CMA).